BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Human Resources Management

Sub code- BBA-401
Unit- I
Human resource management is organizing, coordinating, and managing an organization's
current employees to carry out an organization's mission, vision, and goals. This includes
recruiting, hiring, training, compensating, retaining, and motivating employees.

What is called HR?

Human resources (HR) is the division of a business responsible for finding, recruiting,
screening, and training job applicants.

Human Resource Management is a management function concerned with hiring, motivating,

and maintaining workforce in an organization. Human resource management deals with
issues related to employees such as hiring, training, development, compensation, motivation,
communication, and administration. Human resource management ensures satisfaction of
employees and maximum contribution of employees to the achievement of organizational
objectives.

According to Armstrong (1997), Human Resource Management can be defined as “a strategic

approach to acquiring, developing, managing, motivating and gaining the commitment of the
organisation’s key resource – the people who work in and for it.”

Nature of Human Resource Management

HRM is based on certain principles and policies contribute to the achievement of
organizational objectives

1.HRM is a pervasive function – Human resource management is not specific to an

individual department, rather it is a broader function and spread throughout the organization,
it manages all type of people from lower level to top level departments of the organization.

2. HRM is people oriented – People or human resource is the core of all the activities of
human resource management. Human resource management works with and for people. It
brings people and organization together to achieve individual and organizational goals.

3. HRM is continuous activity – All factors of production are required to be continuously

updated and improved to cope up with the changes and increased competition. Similarly,
human resource also continuously trained, developed, or replaced to face the next level of
competition. Hence, it is a continuous activity.
4. HRM is a part of management function.

5. HRM aims at securing maximum contribution.

6. HRM aims at optimum use of personnel power.

Scope of Human Resource Management

1. Personnel Aspect Human Resource Planning – It is the process by which the
organization identifies the number of jobs vacant.

Job Analysis and Job Design – Job analysis is the systematic process for gathering,
documenting, and analyzing data about the work required for a job. Job analysis is the
procedure for identifying those duties or behaviour that define a job.

Recruitment and Selection – Recruitment is the process of preparing advertisements

on the basis of information collected from job analysis and publishing it in newspaper.
Selection is the process of choosing the best candidate among the candidates applied
for the job.

Orientation and Induction – Making the selected candidate informed about the
organization’s background, culture, values, and work ethics.

Training and Development – Training is provided to both new and existing employees
to improve their performance.

Performance Appraisal – Performance check is done of every employee by Human

Resource Management. Promotions, transfers, incentives, and salary increments are
decided on the basis of employee performance appraisal.

Compensation Planning and Remuneration – It is the job of Human Resource

Management to plan compensation and remunerate.

Motivation – Human Resource Management tries to keep employees motivated so

that employees put their maximum efforts in work.

2. Welfare Aspect – Human Resource Management have to follow certain health and
safety regulations for the benefit of employees. It deals with working conditions, and
amenities like - canteens, creches, rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation facilities, etc.

3. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the
union members to avoid strikes or lockouts to ensure smooth functioning of the
organization. It also covers - joint consultation, collective bargaining, grievance and
disciplinary procedures, and dispute settlement.

What are the functions of HRM?

1. Talent Recruitment: One of the most significant responsibilities of HRM is talent hiring,
which entails discovering and choosing eligible applicants for employment roles. Creating
job descriptions, advertising job opportunities, sourcing people, assessing resumes,
conducting interviews, and selecting candidates are all part of the process. HR managers must
guarantee that the recruitment process is efficient and successful, and that the best candidates
for the job are attracted and hired.
2. On boarding: The process of welcoming and integrating new employees into the
organization is known as on boarding. Completing new hire paperwork, delivering
orientation, introducing the new employee to the company, and defining expectations are all
part of the process. HR managers must ensure that new workers feel welcomed and supported
during the on boarding process.

3. Training Management: The HRM training management function is critical for increasing
employees' skills and knowledge, which can lead to improved performance. HR managers are
responsible for identifying training needs, designing and developing training programs, and
delivering training sessions. Human resource managers must ensure that training programs
are successful and suit the needs of employees and the organization.

4. Performance Appraisal: Performance appraisal is the process of reviewing and delivering

feedback to employees. Setting performance goals, holding performance reviews, and
generating performance improvement strategies are all part of the process. Human resource
managers must ensure that the performance appraisal process is fair, effective, and connected
with the goals of the firm.

5. Workforce Engagement: The HRM task of managing relationships between workers and
companies is known as "workforce engagement." Employee participation must be
encouraged, employee concerns must be addressed, and management and employee
communication must be facilitated. Managers of human resources must make sure that there
is a supportive and appreciated company culture.

6. Payroll Management: Payroll management is the part of HRM responsible for overseeing
the salaries and benefits of employees. Payroll laws and regulations must be followed, and
HR managers must make sure the payroll process is accurate, effective, and compliant.
Managers of human resources must also make sure that workers are paid fairly and provided
enough benefits.

7. Compliance Management: The role of HRM that ensures that the organization complies
with labour laws, rules, and policies is known as compliance management. HR managers are
responsible for ensuring that the organization has accurate records, monitors compliance, and
addresses compliance issues.

8. Succession Planning: The function of human resource management that involves

identifying and developing possible candidates for leadership roles within the organization is
known as succession planning. HR managers must build career development plans, provide
training and coaching, and assess employees' suitability for leadership positions. Succession
planning contributes to the organization's robust leadership pipeline.

9. Diversity and Inclusion: Diversity and inclusion is a function of human resource

management that entails promoting a varied and inclusive workplace culture. Employee
resource groups and diversity training programs are examples of policies and programs that
HR managers must develop and implement to encourage diversity and inclusion. Human
resource managers must ensure that the workplace culture is friendly and that employees feel
appreciated and included.

10. Employee Wellbeing: Employee wellness is an HRM function that promotes employee
health and well-being. HR managers must develop wellness programs, provide mental and
physical health services, and handle workplace safety problems. Employee wellness
programs can aid in the improvement of employee health, the reduction of absenteeism, and
the growth of productivity.

11. Exit Management: Exit management is the function of human resource management that
deals with the departure of personnel from a company. HR managers are responsible for
conducting exit interviews, managing the off boarding process, and ensuring legal and ethical
compliance. Exit management is beneficial.

Managerial functions of HRM:

HRM managerial functions include planning, organizing, directing, and regulating an

organization's human resources in order to achieve its goals and objectives. These functions
include:

1. Planning: This job entails studying and identifying the organization's human resource
needs, both in terms of number and quality. HR managers must estimate future human
resource demand and supply and devise measures to fill any gaps. Developing recruitment
strategy, succession planning, and staff planning are all part of this.

2. Organizing: After identifying the human resource requirements, the HR manager must
organize the workforce to ensure that the right people are in the proper places. This includes
developing job descriptions and specifications, as well as building job structures and
hierarchies.

3. Directing: Directing is the process of leading and inspiring personnel to achieve the goals
of the firm. Creating a great work atmosphere, providing feedback and reward, and
encouraging employee involvement are all part of this.

4. Controlling: Controlling entails monitoring and analysing workforce performance and

taking corrective action as needed. Implementing performance management systems,
conducting employee surveys, and analysing HR metrics are all part of this.

Overall, human resource management managerial functions are crucial for ensuring that the
organization's human resources are successfully managed and aligned with its overall goals
and objectives. Human resource planning, organization, direction, and management that is
effective can lead to enhanced productivity, improved employee morale, and, ultimately,
better business results.

Roles of Human Resource Management

1. Strategic Planning

Effective HRM begins with aligning the human capital strategy with the organization's
overall business goals. HR professionals collaborate with senior management to understand
the organization's vision, mission, and objectives. By analyzing the current workforce,
identifying skills gaps, and forecasting future talent needs, HR ensures that the company has
the right people in the right roles at the right time.
2. Recruitment and Selection

Recruitment and selection are at the core of HRM. Attracting top-tier talent is essential for an
organization's success. HR professionals craft job descriptions, conduct job analyses, and
design selection processes that identify the best candidates. They also manage
candidate interviews, assessments, and onboarding procedures, ensuring a seamless
integration into the company culture.

3. Employee Development

Investing in employee development leads to increased job satisfaction and better

performance. HRM designs training programs, workshops, and skill-building initiatives that
empower employees to reach their full potential. By nurturing a culture of continuous
learning, HR professionals foster innovation and adaptability within the workforce

4. Performance Management

Performance management involves setting clear performance expectations, providing regular

feedback, and conducting performance appraisals. HRM plays a crucial role in designing
performance appraisal systems that accurately evaluate employees' contributions.
Constructive feedback and goal-setting aid in employee growth, while addressing
underperformance ensures that the organization maintains high standards.

5. Employee Relations

A harmonious work environment is vital for productivity and employee well-being. HRM
acts as a mediator between management and employees, handling conflicts, grievances, and
disciplinary actions. By promoting open communication and fair treatment, HR professionals
cultivate a positive workplace culture where employees feel valued and respected.

6. Compensation and Benefits

Fair and competitive compensation packages are essential for attracting and retaining top
talent. HRM conducts compensation surveys, benchmarking industry standards, and
developing salary structures that reward employees appropriately. In addition to monetary
rewards, HRM designs benefits packages that enhance work-life balance and overall job
satisfaction.

7. Legal Compliance

Navigating complex labor laws and regulations is a critical aspect of HRM. Professionals in
this role ensure that the organization operates within legal boundaries concerning
employment practices, health and safety regulations, and equal opportunity policies. This
proactive approach protects the company from potential legal issues and maintains ethical
standards.
HR policies

Code of conduct
Code of conduct outlines the company's expectations of its employees in terms of behavior,
defining what is acceptable and what is not, and keeping the workplace safe and comfortable
for everyone. It usually addresses issues such as:

 Dress code
 Social media use
 Punctuality
 Alcohol and drug use
 Harassment and bullying

Recruitment policy
The recruitment policy usually sets out criteria for candidate selection and outlines the new
employee on boarding process. In case you have an employee referral program, include it in
this policy.

Termination policy
The termination policy, on the other hand, describes how an employee is expected to give
their resignation and the amount of notice required. It may also list the employee actions that
may result in termination.

Working hours and overtime policy

This policy needs to state how flexible the work hours are, when breaks can be taken and for
how long, and how to clock in and out. Explain how overtime work is handled and
compensated.

Attendance and remote work policy

This policy specifies whether the employees are expected to work from the office or from
home. If your team is allowed to work remotely, consider including relevant procedures, such
as how to request a home office allowance.

Performance evaluation and promotion policy

The performance evaluation policies are there to transparently communicate to the employees
how their jobs are graded and how performance is rewarded. It's there to ensure that all
employees are treated fairly and can be a great motivational tool.
Health and safety policy
No matter what industry your company belongs to, workplace injuries can be a risk. The
health and safety policy is there to outline the procedures and responsibilities of all
employees to keep the workplace safe for everyone.

Expense policy
Explain how expenses should be handled, for example, when employees go on business trips
or organize team events. In case they are expected to spend their own money, describe the
costs they can be reimbursed for and the procedures for doing so.

Benefits and compensation policy

Your employees need to know when and how they will get paid and what benefits they will
receive. The policy should outline the payroll frequency and payment methods, and list the
additional benefits your business offers, such as medical benefits, wellness programs,
bonuses, allowances, and so on.

Leave policy
Taking a certain amount of time off work is what helps your team stay healthy, happy, and
productive. Let your employees know how long they are allowed to be away from work and
how they can request leave. Include specific policies that pertain to vacation, sick leave,
public holidays, childbirth, and so on.
 BACHELOR OF BUSINESS ADMINISTRATION (BBA)
Human Resources Management
Sub code- BBA-401
Unit- II

What is Staffing Process?

The staffing process helps to select the right person with appropriate skills, qualifications and
experience to recruit them to different positions and jobs in an organisation. Staffing means
the process of filling and keeping various roles in an organisation filled. In management, it
means the process of recruiting the right person at the right place to increase the efficiency of
the organisation. An enterprise with an efficient workforce cannot function properly, so
staffing helps an enterprise to acquire a workforce. It includes taking up different people to
perform various functions in different departments. It is an important process to run an
organization or a business. This is the first and major step in human resource management.
Refer to the official website of Vedantu or download the app for an elaborate and easy
explanation.

Steps in Staffing Process

Staffing is a complicated process, and it involves various steps, It starts with workforce
planning, and ends with the proper recruitment of the employees. It also checks the
performance of the employees effectively. For successful staffing in an organisation, a
manager has to perform various steps of staffing that are as follows:
1. Planning the Manpower Requirements: The very first steps of staffing are to
evaluate the manpower requirement of an organisation to match the job and positions
available in the organisation. It also helps in determining the skills and qualifications
required for a specific job in the organisation.
2. Recruitment of Employees: Once the requirement is evaluated, the next step
involves the searching of prospective persons that are eligible for the job and inviting
applicants to apply for the positions. In this process, the employer advertises about the
openings in the organisation through various media, which makes it easy for the
applicants to get to know about the job vacancy and the required skills.
3. Selection of Employees: The selection process helps in screening the employees and
identifying the deserving candidate who will be suitable for a specified job. Therefore,
it can be said that the main objective of selection is to identify the right employee for
the right job.
4. Orientation and Placement: Once the right candidates are selected, the organization
makes the employees familiar with the working units and working environments
through various orientation programs. Then, the placement is done by putting the right
candidate at the right place which helps in the proper functioning of the organisation.
5. Training and Development: Once the placement is done, the next step involves the
training and development of employees. Training is an integral part of the staffing
process, and it helps the employees to develop their skills and knowledge.
 6. Remuneration to Employees: It is the compensation given to the employees in
monetary terms in exchange for the work they do for the organization. It is given
according to work done by the employees.
7. Performance Evaluation: It is an assessment done to evaluate the attitude, behavior,
and performance of an employee. These steps of staffing also help in determining the
success of the whole recruitment process. It gives the management a clear picture of
the success rate of the entire recruitment procedure. This step includes elements like
appraisal, promotion, and transfer. The performance of the employee is assessed
comparatively to the other employees and also to his own previous performance.
Based on these criteria, the employee gets a hike on his pay or a promotion.
Sometimes, employees are transferred to another location of the same company and
are generally attached with a level up in his position or given certain benefits.
8. Promotion of Employees: Promotion in simple words means the shifting of an
employee to a higher post demanding a more significant responsibility. It not only
makes the employee responsible but also keeps him motivated to do his work
efficiently. With the promotion, the monetary benefits that the employee receives are
also increased, which makes him more efficient to complete the work on time.
9. Transfer of Employees: As promotion is shifting of the employee to a higher post,
transfer refers to the shifting of employees to a different unit or department being in
the same position, This is done to develop new skills and knowledge of the employee.

What Is Human Resource Planning (HRP)?

Human resource planning (HRP) is the continuous process of systematic planning to achieve
optimum use of an organization's most valuable asset—quality employees. Human
resources planning ensures the best fit between employees and jobs while avoiding
manpower shortages or surpluses.

There are four key steps to the HRP process. They include analyzing present labor
supply, forecasting labor demand, balancing projected labor demand with supply, and
supporting organizational goals. HRP is an important investment for any business as it
allows companies to remain both productive and profitable.

What Is Human Resource Planning (HRP) Used For?

Human resource planning allows companies to plan ahead so they can maintain a steady
supply of skilled employees. The process is used to help companies evaluate their needs and
to plan ahead to meet those needs.

Human resource planning needs to be flexible enough to meet short-term staffing challenges
while adapting to changing conditions in the business environment over the longer term.
HRP starts by assessing and auditing the current capacity of human resources.

Challenges of Human Resource Planning (HRP)

The challenges to HRP include forces that are always changing. These include emplo yees
getting sick, getting promoted, going on vacation, or leaving for another job. HRP ensures
there is the best fit between workers and jobs, avoiding shortages and surpluses in the
employee pool.

To help prevent future roadblocks and satisfy their objectives, HR managers have to make
plans to do the following:

 Find and attract skilled employees.

 Select, train, and reward the best candidates.
 Cope with absences and deal with conflicts.
 Promote employees or let some of them go.

What is a job analysis?

A job analysis is a process of gathering in-depth information about a given role. It offers your
team a detailed understanding of the job’s tasks, responsibilities, work environment, and
performance standards, as well as its required skills, knowledge, and training.

The results of a job analysis can be presented in a formal document, but they can also be
recorded across multiple documents or discussed orally.

What is a job description?

A job description is a concise document summarizing a role’s top skills, responsibilities, and
requirements. It also informs potential job applicants about the people they’ll report to, the
compensation, and the company’s mission and culture. A good job description is tailored to
each position so you attract the right candidates. For example, a strong home health care aide
job description may address compensation and perks to encourage more qualified candidates
to apply in a field affected by labor shortages.

Differences between job analysis and job description

While both the job description and job analysis contribute to hiring and evaluating employees
effectively, they serve distinct purposes and contain different information.

Here are the top differences to be aware of.

The aim of a job analysis vs. job description

First, a job analysis and a job description have different aims.

 The aim of a job description is to provide job seekers with a clear summary of the role’s key
skills and responsibilities, thus encouraging suitable candidates to apply. Additionally, it
helps recruiters and hiring managers screen applications.

A job analysis, by contrast, is often used internally and can serve multiple purposes before
and after hiring, including:

 Supplying information for a job description

 Supporting employee performance evaluations
 Determining appropriate compensation levels based on experience and/or performance
 Helping ensure compliance with labor laws
 Examining workforce training needs, including health and safety training

The steps required for a job analysis vs. job description

A job description and job analysis also differ in terms of process. For instance, a job analysis
involves gathering and interpreting data. It might involve the following steps:

 Collecting job data through questionnaires and interviews with key stakeholders, such as line
managers, team members, and current job holders
 Compiling a list of job tasks and skills, including detailed explanations and examples
 Highlighting crucial details about the job, such as work relationships, travel requirements,
training requirements, and legal considerations
 Categorizing and interpreting the data – for example, rating tasks by importance and marking
skills as desired or required

What is a job specification?

A job specification lists the qualifications required for a role and is typically listed below a
job description on a job posting. It lets job candidates know what employers are looking for
and what expectations they’ll need to meet. This includes minimum education experience and
skill requirements. The details in a job specification are usually determined by a job analysis.

Job specifications are important for a number of reasons. If hiring managers don’t include job
specifications on a job posting, they could end up hiring someone who won’t be successful in
the role. Job specs are also useful for asking the right questions in job interviews, helping
narrow down your list of applicants and giving new employees a guide for how to be
successful in their new role.
So, what’s the difference between a job specification and a job description? A job description
provides a general overview of the job, including the job’s title, duties and responsibilities,
and usually a brief description of the company and its culture. A job specification, on the
other hand, outlines the job’s eligibility requirements, detailing the necessary skills,
personality traits, qualifications, education and other requirements needed for a role. In some
cases, job description and job specification are synonymous.

How to write a job specification

The more clear, organized and thorough your job specification is, the better job candidates
will understand what you’re looking for in an employee. Follow these steps when creating
job specifications:

1. List the job qualifications

A job specification should include the minimum qualifications employees need to meet. This
could include education, experience, required skills and more. Consider breaking out your job
qualifications into a list of must-haves vs. nice-to-haves to attract a wider range of candidates.

2. Add any special demands

Include any extraordinary conditions that come with the job. For example, if the employee
will be required to stand for a long period of time, work in dangerous conditions or extreme
temperatures, lift heavy machinery or experience other special demands, include those in the
job spec.

3. Proofread and organize your job spec

Before finalizing your job specification, proofread it by checking for spelling, grammar and
tone. Read through the job specification and organize it so it makes the most sense for
applicants.

4. Update your job specification when needed

Job requirements may change over time. That’s why it’s important to keep your job
specifications updated. This will ensure the applicants are meeting the new qualifications
rather than the old ones.

Crucial things to include in job specifications

In order to create an effective job specification, make sure you’re including all of the
necessary elements. Here are a few crucial things to consider including in your job
specification:

 Required education: Include the minimum education requirements for the job, such as
a high school diploma, bachelor’s degree or another educational degree or
requirement. Note: You may choose to omit an education section if you’d like to hire
based on experience level.
 Licenses or credentials: Some job may require a specific certification, license or other
credential. For example, a teacher usually needs a state teaching license and a driver
may need to have a certain type of driver’s license. Include these requirements in your
job spec.
 Required experience: Include the minimum experience needed for the role. For
example, three to five years for a senior role or 0-1 years for an entry-level role.
 Necessary skills: If applicants need any particular skills, such as mathematics or
software skills, make sure to list them in your job spec.
 Extraordinary or special demands: If the job has any special demands or conditions
such as travel, heavy lifting or extreme temperatures, list them in your job
specification.
 Personality traits: What personality traits would contribute to success in the role? For
example, you may be looking for someone who can stay calm under pressure, work in
a fast-paced environment and handle tight deadlines.

What Is The Talent Selection Process?

1. Application
The first stage in the talent selection process is the application. Once the job has been
approved and the job description posted, it is considered a live position. Announcing the
position tends to be the most crucial part of the application process because if candidates do
not know about the position they cannot apply to be a team member!

Depending on the type of work experience, skills, and certification desired will depend on
what platforms the position is announced. Many companies utilize social media
platforms such as Facebook, LinkedIn, and Instagram while others use the community
approach of attending local job fairs.
such as Facebook, LinkedIn, and Instagram while others use the community approach of
attending local job fairs.

2. Initial Screening
The second step of the process is to complete an initial screening. During this stage, the
hiring manager will want to sort through the applications looking specifically at work
experience, degrees or certifications, and other listed qualifications.

It is best to have a job description and a general list of what the perfect employee would look
like while completing this stage. As you read through the resumes, purge unqualified
candidates but do not toss out their information. You never know when a position will
become available that would be a perfect fit for them.

3. Interview
There is a variety of talent acquisition software that makes the interviewing process less time-
consuming. One popular approach is to use one-way video interviewing.
Once a candidate has completed the application and is believed to be a good fit for the
position you will want to schedule an interview. Some ATS programs can contact candidates
and schedule interviews without the hiring manager having to make multiple calls to contact
the candidate.

4. Pre-Employment Assessments
Once the screened candidates have completed the in-person interview (or one-way video
interview!) they may be asked to complete a pre-employment assessment.

If you find yourself hiring for skilled positions, pre-employment assessments are a great help
during the talent selection process. These can be skills tests, personality assessments, and
more! The list of assessment topics is endless.

5. References And Background Check

One management tool that is making waves is the reference checker. Nearly 87% of business
owners and hiring managers do not check references. Typically, this is due to time restraints
but that is not the case anymore.

Automated reference checking takes away the hassle of tracking down references while also
improving the likelihood of hiring top talent. It is important to receive feedback on
candidates, especially from previous employers and coworkers. By having reliable feedback
you can assure that you find the best candidate for the position.
6. Final Selections
After the interviews are completed, references are checked, and backgrounds are cleared, it is
time to look at each candidate as a whole. Gather their resume, notes, and any additional
documents and compare the candidates that you believe may be a good fit for the position.

Once a decision has been made be sure to contact the candidate immediately. It has been
reported that top talent leave the job market in less than 10 days. That means recruiters must
move quickly to secure high-quality employees.

7. Offer And Onboarding

A job offer was made and the candidate accepted! Now is the time to bring them in to
complete all necessary paperwork. During the onboarding process is the time to talk about
details that may not have been mentioned in the interviewing process.

Topics such as getting paid, time off requests, setting up benefits, starting dates, etc. This is
the time for you to tell the employee anything they need to know about how the company
works. Make sure to let the employee know how to contact you in case questions arise after
they leave the on boarding session.

WHAT IS PLACEMENT?
Placement is a process of assigning a specific job to each of the selected candidates. It
involves assigning a specific rank and responsibility to an individual. It implies matching the
requirements of a job with the qualifications of the candidate. Placement is understood
assigning jobs to the selected candidates. Assigning jobs to employees may involves a new
job or different jobs. Thus, placement may include initial assignment of job to new employee,
on transfer, promotion or demotion of the present employees.

Consideration or principles
1. Job Requirements: An employee should be placed on the job according to the
requirements of the job such as physical and mental ability, eyesight, hearing, stress etc. The
job shouldn’t be adjusted according to the qualification and abilities of the employees. Job
placement profile charts can be used to match the worker’s physical and mental abilities with
the job requirements. This profile chart displays an evaluation of both job requirements and
worker abilities for key features of the job so that the management can easily determine how
well worker fits a job.

2. Suitable Qualifications: The job should be offered to only that person who is suitably
qualified. Over qualified and under qualified persons might create problems for the
organisation in the long run.

3. Adequate Information to the Job Incumbent: The employee should be provided with
the complete information and facts relating to the job, including the working conditions
prevailing in the firm. He should also be made known to the rewards associated with the
performance levels.
4. Commitment and Loyalty: While placing the new employee, an effort should be made to
develop a sense of commitment, loyalty and cooperation in his mind so that he may realise
his responsibilities better towards the job, the organisation and his associates.

5. Flexibility: The placement in the initial period may be temporary as changes are likely
after the completion of training. The employee may be later transferred to the job where he
can do better justice.

Meaning of Promotion
“What is Promotion?” Promotion is a marketing tool, used as a strategy to communicate
between the sellers and buyers. Through this, the seller tries to influence and convince the
buyers to buy their products or services. It assists in spreading the word about the product or
services or company to the people. The company uses this process to improve its public
image. This technique of marketing creates an interest in the mindset of the customers and
can also retain them as a loyal customer.

Types of Promotion:

Advertising-

It helps to outspread a word or awareness, promote any newly launched service, goods or an
organization. The company uses advertising as a promotional tool as it reaches a mass of
people in a few seconds. An advertisement is communicated through many traditional media
such as radio, television, outdoor advertising, newspaper or social media. Other
contemporary media that supports advertisement are social media, blogs, text messages, and
websites.

Direct Promotion-

It is that kind of advertising where the company directly communicates with its customers.
This communication is usually done through various new approaches like email marketing,
text messaging, websites, fliers, online adverts, promotional letters, catalog distributors, etc.

Sales Promotion-

This utilizes all sorts of a marketing tool to communicate with the customers and increase
sales. However, it is for a limited time, used to expand customers demand, refresh market
demand and enhance product availability

Self-promotion-
It is a process where the enterprises send their agents directly to the customers to pitch for
their product or service. Here, the response for the feedback of the customer is prompt and
therefore, easy to build trust.

Public Relation-

Popularly know as PR is exercised to broadcast the information or message between a

company (NGO, Government agency, business), an individual or a public. A powerful PR
campaign can be valuable to the company.

Online Promotion-

This includes almost all the elements of the promotion mix. Starting from the online
promotion with pay per click advertising. Direct marketing by sending newsletters or emails.
Key Points of Promotion

 It is a communication tool that incorporates all the elements used to spread awareness
and convince customers to buy good and services
 It is applicable only for short term sales
 It is one of the variables of the marketing mix
 The effect of promotion is short term
 The result or outcome of the promotion is immediate
 It is an economic marketing tool as compared to advertising
 It can be used for all sorts of businesses irrespective of the size, brand of a company
 BACHELOR OF BUSINESS ADMINISTRATION (BBA)
Human Resources Management
Sub code- BBA-401
Unit- III

What is Training and Development?

Training and Development in Human Resource Management is the process of acquiring
knowledge, skills, and attitude that helps improve employees’ job performance and enables
future career growth.

Training refers to acquiring specific knowledge and skills for a particular job or task. It is
usually a short-term activity concerned with improving an employee’s current job
performance. It includes formal training courses, on-the-job training, or coaching sessions.

Development is concerned with the long-term growth of an individual’s career. It usually

covers acquiring knowledge that goes beyond the requirements of their current job to prepare
the employees for their future job role or career advancement opportunities. Development
activities include job shadowing, mentoring, attending conferences, or pursuing further
education.

Importance of Training and Development

1. Boost Performance and Productivity

When employees are trained and developed, they feel more confident in their abilities. As a
result, they can be more productive in their roles. Acquainting employees with the necessary
skills and knowledge helps organizations improve employee performance, productivity, and
job satisfaction. It also employees to remain engaged and motivated and positively impacts
the organization’s work environment.

2. Talent Management and Retention

In the recent competitive era, employees actively seek growth and development
opportunities. So, organizations that invest in employee training and development programs
find attracting and retaining top talent easier. Also, employees are more likely to be loyal and
committed to the firm if their personal growth and development is prioritized. This leads to a
lower turnover rate and a stable workforce.

3. Overcome Market Competition

It helps organizations stay current with the latest trends and best practices in the market. By
investing in employees’ training and development, companies can ensure retaining their
competitive advantage in the future. This is essential in industries with rapid technological
advancements and changing customer needs.
4. Effective Risk Management
Well-trained employees are less likely to make mistakes that might lead to costly errors or
legal issues. For instance, compliance training can help organizations avoid legal actions by
ensuring employees understand the regulations that apply to their daily work. Likewise,
safety training helps organizations prevent workplace accidents that can lead to injuries or
lawsuits.

5. Foster a Culture of Learning and Development

Investing in employee development shows that the organization values continuous learning.
This creates a culture of learning and growth, where employees are encouraged to take risks,
try new things, and seek out opportunities for development. A culture of learning and growth
can lead to a more innovative and creative workforce, driving organizational success.

Investing in employees’ training and development helps create a more engaged, productive,
and innovative workforce that drives the company’s success in today’s competitive business
environment.

What are the 5 processes of Training and Development?

Effective training and development programs can improve employee performance, increase
productivity, and help organizations remain competitive in today’s dynamic business
environment. Human Resource Management plays a vital role in designing efficient
employees training and development programs.

The following are the five processes of training and development in HRM:

1. Needs Assessment
It is the first process and involves identifying the organization’s skill gaps and determining
the training needs of employees. It comprises gathering data through surveys, focus groups,
or other assessment tools to identify areas that need additional training or development. It is
crucial in determining the training and development goals that align with the organization’s
overall strategy.

2. Design and Development

It is the second process and is concerned with designing the training program to meet
identified needs and aligning them with the organization’s strategic objectives. The design
process comprises developing learning goals, selecting appropriate training methods, creating
training materials, and developing a training schedule. The training program focuses on
understanding individual learning styles and preferences and customizing them to meet
specific needs.

3. Delivery
It is the third process and comprises implementing training programs through various training
methods like classroom training, online training, on-the-job training, and coaching. It should
focus on resource availability, appropriate workforce size, and employees’ individual
learning preferences. Effective delivery of training programs enhances employee engagement
and learning outcomes.

4. Evaluation
It is the fourth process and usually evaluates the effectiveness of the training program.
Methods may include surveys, assessments, performance metrics, and focus groups. It
highlights the areas of improvement. An effective evaluation process can help companies
measure training programs’ success and make future improvements.

5. Follow-Up
The final training and development process involves reinforcing the training concepts and
their practical application in daily work. It comprises on-going coaching, refresher training,
and feedback sessions to monitor progress and ensure meeting the organization’s
expectations. Efficient follow-up helps employees retain the learned knowledge and skills
and their practical application.

What Is a Performance Appraisal?

A performance appraisal is a systematic and periodic process of measuring an individual’s

work performance against the established requirements of the job. It’s a subjective evaluation
of the employee’s strengths and weaknesses, relative worth to the organization, and future
development potential.

Performance appraisals are also called performance evaluations, performance reviews,

development discussions, or employee appraisals.

If you conduct a successful performance appraisal, you can get a handle on what the
employee does best and identify areas that require improvement. Appraisals also come in
handy for deciding how to fill new positions in the company structure with existing
employees.

Types of Performance Appraisals

Performance appraisals can be broken down into four distinct significant types:

1. 360-Degree Appraisal

The manager gathers information on the employee’s performance, typically by questionnaire,

from supervisors, co-workers, group members, and self-assessment.
2. Negotiated Appraisal

This type of appraisal uses a mediator to help evaluate the employee’s performance, with a
greater emphasis on the better parts of the employee’s performance.

3. Peer Assessment

The team members, workgroup, and co-workers are responsible for rating the employee’s
performance.

4. Self-Assessment

The employees rate themselves in categories such as work behavior, attitude, and job
performance.

Note that some organizations use several appraisal types during the same review. For
instance, a manager could consult with the employee’s peers and assign a self-assessment to
the employee. It doesn’t have to be a case of either/or.

How Performance Appraisals Work?

Human resources (HR) departments typically create performance appraisals as a tool for
employees to advance in their careers. They give people feedback on how well they are doing
in their jobs, ensuring that they are managing and achieving the goals set for them and
assisting them if they fall short.

Performance evaluations assist in determining how to distribute a company's limited budget

for giving out incentives, such as raises and bonuses. In addition, they give businesses a tool
to identify the workers who have made the most contributions to their expansion so that they
may appropriately reward their top performers.

Performance reviews also assist employees and their managers in identifying areas
for improvement and career advancement, as well as in developing a strategy for the
employee's development through extra training and more responsibility.

Methods of Performance Appraisals

Performance appraisals come in many forms. Managers and human resources staff
responsible for these appraisals need to choose the best methods based on the size of their
organization and what sorts of responsibilities the employees fulfill.

1. 720-Degree Feedback

You could say that this method doubles what you would get from the 360-degree feedback!
The 720-degree feedback method collects information not only from within the organization
but also from the outside, from customers, investors, suppliers, and other financial-related
groups.

2. The Assessment Center Method

This method consists of exercises conducted at the company's designated assessment center,
including computer simulations, discussions, role-playing, and other methods. Employees are
evaluated based on communication skills, confidence, emotional intelligence, mental
alertness, and administrative abilities. The rater observes the proceedings and then evaluates
the employee's performance at the end.

3. Behaviorally Anchored Rating Scale (BARS)

This appraisal measures the employee’s performance by comparing it with specific

established behavior examples. Each example has a rating to help collect the data.

4. Checklist Method

This simple method consists of a checklist with a series of questions that have yes/no answers
for different traits.

5. Critical Incidents Method

Critical incidents could be good or bad. In either case, the supervisor takes the employee’s
critical behavior into account.

6. Customer/Client Reviews

This method fits best for employees who offer goods and services to customers. The manager
asks clients and customers for feedback, especially how they perceive the employee and, by
extension, the business.
7. Field Review Method

An HR department or corporate office representative conducts the employee's performance

evaluation.

8. Forced Choice Method

This method is usually a series of prepared True/False questions.

9. General Performance Appraisal

This method involves continuous interaction between the manager and the employee,
including setting goals and seeing how they are met.

10. Human Resource Accounting Method

Alternately called the “accounting method” or “cost accounting method,” this method looks
at the monetary value the employee brings to the company. It also includes the company’s
cost to retain the employee.

11. Management By Objective (MBO)

This process involves the employee and manager working as a team to identify goals for the
former to work on. Once the goals are established, both parties discuss the progress the
employee is making to meet those goals. This process concludes with the manager evaluating
whether the employee achieved the goal.

12. Performance Tests and Observations

This method consists of an oral test that measures employees' skills and knowledge in their
respective fields. Sometimes, the tester poses a challenge to the employee and has them
demonstrate their skills in solving the problem.

13. Project Evaluation Review

This method involves appraising team members at the end of every project, not the end of the
business year.
14. Rating Scales

These ratings measure dependability, initiative, attitude, etc., ranging from Excellent to Poor
or some similar scale. These results are used to calculate the employee's overall performance.

What is Performance Appraisal?

A performance appraisal is a systematic evaluation of an employee's current job performance.

It assesses an individual's actual performance based on their tasks, achievements, and overall
contribution to the company. This evaluation typically includes specific goals and key
performance indicators (KPIs) related to the job role.

Beyond job-specific metrics, it might also examine aspects of an employee's broader

competencies such as their adaptability, leadership qualities, problem-solving skills, and
eagerness to learn.
 BACHELOR OF BUSINESS ADMINISTRATION (BBA)
Human Resources Management
Sub code- BBA-401
Unit- IV

Wage and Salary Administration – Introduction

Wages constitute the major factor in the economic and social life of any community in
an economic sense; wages represent payment of compensation in return for work done.
In a sociological sense, wages characterize stratification of occupational categories. In a
psychological sense, wages satisfy need directly and indirectly in response to changing
employee aspiration.

Wage and Salary Administration – Meaning and Definitions

In simple words wages means reward for the labourer for his services rendered to the
industry. These can be paid on per unit, per hour, daily, fortnightly, weekly, or monthly
basis. Labourers render services of both types i.e. mental and physical.

Some of the definitions of wages are as follows:

According to Prof. Straitoff, “Wages is the reward of that labour which creates utility.”

Wage and Salary Administration – Nature and Characteristics

1. The basic purpose of wage and salary administration is to establish and maintain an
equitable wage and salary structure.

2. It is concerned with the establishment and maintenance of equitable labour cost

structure i.e. an optimal balancing of conflicting personnel interest so that the
satisfaction of the employees and employers is maximised and conflicts are minimised.

3. The wage and salary administration is concerned with the financial aspects of needs,
motivation and rewards.

4. Employees should be paid according to the requirements of their jobs i.e. highly
skilled jobs are paid more compensation than low skilled jobs.

5. To minimise the chances of favouritism.

6. To establish the job sequences and lines of production wherever they are applicable.

7. To increase the employees’ morale and motivation because a wage programme can be
explained and is based upon facts.
Characteristics:
1. Payment of wages is in accordance with the terms of contract between the employer
and the worker.

2. The wages are determined on the basis of time-rate system or piece-rate system.

3. Wages change with the change in the time spent by the labourer.

4. Wages create utility.

5. Wages may be paid weekly, fortnightly, hourly, or on monthly basis.

6. Wage is the reward paid to the workers for the services rendered by them.

7. Wages can be paid in cash or in kind.

8. All kinds of allowances are included in wages.

Wage and Salary Administration – 10 Important Objectives

Its objectives are:

i. To compare or draft company HR policy

ii. Find out the income level and return ratio of similar industries

iii. To understand wage differentiations

iv. To examine the competitiveness of entry level employees

v. To establish hiring rates favorable to the community

vi. To keep abreast wage and salary rates with production cost

vii. To minimize labour turnover due to pay disparity

viii. To increase employee’s satisfaction and morale

ix. To learn about the trend of perks and benefits in the market

x. To resolve existing labour problems concerning compensation.

Wage and Salary Administration – 9 Important Aspects

Good wage administration should have the following aspects:
i) Wage policies need to be properly made keeping in mind –

a) Interest of management,

b) Interest of employees,

c) Interest of consumers, and

d) Community

ii) Difference of pay based on job requirements like skill, effort, responsibility, working
conditions and mental and physical requirements.

iii) Wages and salaries should have parity existing in the labour market.

iv) The payment plan should distinguish between jobs and employees.

v) Wage policies should have clarify, and it should be in written form so as to enable
uniformity and stability.

vi) Wage decisions need to be carried out only against organisation’s well fo rmulated
policies.

vii) Management should ensure that employees are fully aware of the existing wage
policies.

viii) Proper evaluation of wage policies to be carried out as and when it is required and
also to be checked. They need to be adequately amended and updated at regular
intervals.

ix) Performance rating and job description should be periodically checked and updated
for ready reference.

What is Job Evaluation?

Job Evaluation is defined as a systematic procedure used to ascertain the monetary worth of
a role and is typically conducted by the HR department. In the realm of Human Resources,
conducting a job evaluation might be a necessary task to establish the appropriate salary for
a given role. By comparing the responsibilities of each position, job evaluations assist in
ensuring fair compensation for all employees. Various methods exist for job evaluation,
each aiming to quantify the value that a particular role contributes to the organisation.
Evaluations are role-based rather than employee-based, meaning they assess the position,
not the individual occupying it. This is a common practice in newly established companies
or when new roles are being introduced.
Methods of Job Evaluation
Job evaluations, which are systematic processes to ascertain the monetary value of a
position, can be categorised into two primary types: Qualitative and Quantitative. The
qualitative methods, such as job ranking and classification, are typically quicker, while the
quantitative methods, like factor comparison and point factor, take into account the skills
and responsibilities required by each role.
1. Job Ranking: This method involves arranging each role in a hierarchy, based on its
value to the company or the complexity of its duties. It is particularly suitable for smaller
companies due to its simplicity and can handle up to 100 jobs. It is also useful when
reducing positions, as similar roles can be grouped together during the ranking process.
However, it is subjective and may benefit from being combined with a quantitative method
for more accurate results.
2. Job Classification: This method involves sorting roles based on a pre-established
grading system or classification method. For instance, categories could include executives,
skilled workers, semi-skilled workers, and unskilled workers. Each role is then placed into
a category, which helps determine the salary for each position within that category. This
method can be subjective and may struggle to categorise unique roles.
3. Market Pricing: This external job evaluation method involves setting salaries based on
what other companies pay employees in the same position. This can be determined through
third-party compensation surveys, allowing you to offer competitive wages. However, it
does not consider internal equity, which could result in an employee earning less than their
colleagues or the demands of their work if the market rate for their role is low. To mitigate
this, market pricing can be combined with an internal job evaluation method.
4. Point Factor: This method involves assigning points to each role and then ranking them.
A detailed point system is developed, where each skill or job responsibility could represent
a point. The roles are then assigned a total number of points and ranked from highest to
lowest to help determine their salaries.
5. Factor Comparison: This method combines the job ranking and point factor methods.
Each job is ranked based on certain factors, such as the number of skills required or the
necessary knowledge. These factors are then assigned points, and the total number of points
determines the job’s ranking.
Steps to Develop a Successful Job Evaluation
The entire process of job evaluation consists of the following steps mentioned below:
1. Securing Acceptance: Before initiating a job evaluation, top executives might inform
managers about the program’s objectives and applications, emphasizing its benefits.
Depending on the legal and employee relations environments and workplace culture, senior
management might consult with employees and unions. They might deliver presentations
detailing the program’s origins, procedures, and job evaluation outcomes to secure
acceptance.
2. Job Evaluation Committee: Job evaluations can be subjective, and it’s crucial to
adequately train the professionals conducting the evaluation. Moreover, it’s often
impractical for one individual to evaluate every key position in an organisation. Therefore,
a job evaluation committee comprising experienced employees, union representatives, and
HR professionals might be formed to commence the evaluation process. This committee
examines data from job analyses to understand the tasks, responsibilities, and working
conditions.
3. Identifying Jobs and Preparation of JD: Not every job needs to be evaluated, as this
could be unnecessarily costly and demanding. A few representative positions in each
department might be selected for evaluation. Care should be taken to ensure that these
positions accurately reflect the various levels and types of work performed in that
department. The creation of a job description and analysis of job requirements are essential
for a successful evaluation and can significantly impact overall employee performance.
4. Selecting an Appropriate Evaluation Method: An evaluation method should be chosen
based on organisational needs and job-related factors. Factors to consider when selecting a
job evaluation method might include the organisational culture, benefit capabilities, and the
compensation department or the job evaluation committee itself. Other considerations
might include the size of the company or the positions requiring evaluation.
5. Grading or Evaluating Jobs: After determining the relative importance of each job
within an organisation, the value of each position can be ascertained by considering factors
such as required skills, experience, work environment, type of responsibilities, degree of
supervision required, and level of stress. Each of these factors can be assigned a value, and
the value of a job can be determined by considering and summing all the variables.
Subsequently, the points might be valued in monetary terms to form a wage structure.
Benefits of Effective Job Evaluation
Job evaluation techniques, when effectively implemented, can offer several operational
benefits to an organisation. Here are some of the advantages that a job evaluation system
can provide:
1. Comparisons: Job evaluation techniques allow for a systematic comparison of roles
within an organisation. This can help in identifying overlaps, gaps, and inconsistencies in
roles and responsibilities. It can also aid in understanding the relative importance and
complexity of different jobs, thereby promoting fairness and transparency.
2. Compensation: By assessing the value and complexity of jobs, job evaluation can help
in determining fair and competitive compensation packages. It can ensure that employees
are rewarded appropriately for their skills, efforts, responsibilities, and working conditions.
3. Specifications: Job evaluation can provide a clear and detailed understanding of what a
job entails. This can be used to develop comprehensive job descriptions, identify necessary
skills and competencies, set performance standards, and design effective performance
evaluation systems.
4. Planning: By providing a clear picture of the job hierarchy and career paths within the
organisation, job evaluation can aid in succession planning. It can help employees
understand their potential career progression and the skills and experiences they need to
advance.
5. Recruitment Process: A well-conducted job evaluation can provide valuable insights
for the recruitment process. It can help in identifying the skills and competencies required
for a job, thereby aiding in the selection of suitable candidates. It can also ensure that the
compensation offered is competitive and commensurate with the job’s requirements.

What Is Job Evaluation?

Job evaluation is the process of assessing the value or worth of a particular job within an
organisation. It involves comparing a job’s duties, responsibilities, and required skills with
those of other jobs in the company to determine its appropriate place in the organisation’s
hierarchy and pay scale.

Why Is Job Evaluation Important?

Job evaluation is essential because it helps organisations determine the value or worth of each
job within the company. This process involves comparing each job’s duties, responsibilities,
and required skills with those of other jobs in the organisation to determine its appropriate
place in the hierarchy and pay scale.
Benefits of Job Evaluation
1. Fair and consistent pay: Evaluation helps ensure that employees are fairly compensated
based on the value of their job and individual performance. It helps to establish a uniform pay
scale for different jobs within the organisation and avoid pay disparities based on gender,
race, or other biases.
2. Improved performance: Job evaluation provides employees with constructive
feedback on their strengths and areas for improvement. This can motivate employees to
perform at their best and identify personal and professional development opportunities.
3. Informed decision-making: Job evaluation can help organisations to make informed
decisions about promotions, career development opportunities, and other personnel matters.
By understanding the value and requirements of each job, organisations can better align their
staffing and resources with their goals and objectives.
4. Enhanced employee engagement: When employees feel that they are being fairly
compensated and recognised for their contributions, they are more likely to be engaged and
committed to the organisation. Evaluation can improve employee engagement by providing
transparency and fairness in determining pay and opportunities.

Methods Of Conducting A Job Evaluation

Let’s discuss these methods further.
1. Ranking method: This involves ranking each job in an organisation from the highest to
the lowest in terms of importance or value.
2. Classifying method involves grouping jobs into classes or categories based on their
characteristics and responsibilities.
3. Point method: This involves assigning specific points to various factors such as skills,
knowledge, and experience required for a job. The total number of points is then used to
determine the job’s place in the organisation’s hierarchy and pay scale.
4. Factor comparison method involves comparing jobs based on specific factors such as
knowledge, skills, and responsibility and determining their relative worth.
5. Grading method involves assigning grades to jobs based on their characteristics and
responsibilities. The grades are then used to determine the job’s place in the organisation’s
hierarchy and pay scale.
6. Analysing method: This involves breaking down the duties and responsibilities of each
job into specific tasks and analysing the skills and knowledge required to perform those tasks.
7. Skill-based pay method: This involves setting pay rates based on the specific skills and
knowledge required for a job rather than on the job title or level within the organisation.

The 5-step Job Evaluation Process

1. Identify the purpose of the evaluation
The first step in the process is to clarify the specific goals that the organisation hopes to
achieve through the job evaluation. This may include determining pay scales, identifying
training and development needs, or making decisions about promotions and career
advancement.
 2. Select the appropriate evaluation method
The next step is to choose the most suitable method for evaluating the jobs within the
organisation. Different ways may be more appropriate for different types of jobs or
industries, organisational structures, or cultures. Some standard job evaluation methods
include ranking, classifying, point evaluation, factor comparison, grading, and skill-based
pay.
3. Gather job-related information
The third step is to gather detailed information about the duties, responsibilities, and required
skills of each job being evaluated. This may involve reviewing job descriptions, observing
employees performing their tasks, and gathering input from employees, supervisors, and
other stakeholders.
4. Analyse the job-related information
Once the job-related information has been gathered, it must be analysed to determine each
job’s relative value or worth. This may involve comparing the duties and responsibilities of
each job with those of other positions within the organisation or using a specific job
evaluation method such as ranking, classifying, or point evaluation.
5. Determine pay and other compensation
Based on the job evaluation results, the organisation can then determine the appropriate
payment and further compensation for each job. This may involve establishing pay scales or
ranges, setting individual pay rates, or making decisions about bonuses or other incentives.
The job evaluation results should also be communicated to employees and other stakeholders
to ensure transparency and understanding.

What Is Strategic Human Resources?

The goal of SHRM is to create policies and programs that align with the company’s business
strategy. The main difference between human resources and strategic human resources is that
human resources focus on the day-to-day management of employees, while strategic human
resources focus on how employees can achieve the company’s overall goals. This means that
SHRM must first understand the company’s business goals and then create programs and
policies that support those goals.

Some common examples of SHRM programs and policies include:

 Performance management: Creating systems to track and improve employee performance

 Training and development: Identifying employees’ development needs and providing training
and resources to help them improve
 Compensation and benefits: Designing compensation and benefits programs that attract and
retain employees
 Employee relations: Managing employee relations to create a positive work environment
 Why Strategic Human Resources Is Important

SHRM is important because it helps businesses achieve their goals. By aligning HR programs
and policies with the company’s business strategy, SHRM can help businesses improve
employee performance, develop the workforce and create a positive work environment.
SHRM can also help businesses save money by reducing turnover and improving
productivity.

 Improve employee performance: SHRM can help businesses improve employee performance
by creating systems to track and improve performance.
 Develop the workforce: SHRM can help businesses develop the workforce by identifying
employees’ development needs and providing training and resources to help them improve.
 Create a positive work environment: SHRM can help businesses create a positive work
environment by managing employee relations.
 Reduce turnover: SHRM can help businesses reduce turnover by designing compensation and
benefits programs that attract and retain employees.
 Improve productivity: SHRM can help businesses improve productivity by improving
employee performance and creating a positive work environment.

5 Steps to Strategic Human Resources

1. Know your company’s goals and abilities

The first step to SHRM is understanding your company’s goals and abilities. When you know
your company goals and can articulate them, you’ll have an easier time creating programs
and policies that support those goals. You’ll also be able to more effectively measure the
success of your SHRM programs and make changes as needed.
Consider the following questions:

 What are your company’s long-term goals?

 What are your company’s strengths and weaknesses?

 What resources does your company have now?

 What skills does your workforce currently have?

 Are there any gaps in talent or skills?

 Answering these questions will help you understand your company’s goals and abilities, and
how SHRM can help you achieve those goals.

2. Forecast future needs

Now that you have an idea of your company’s goals and abilities, you need to forecast future
needs. In order to ensure your company’s future success, you need to predict how many
employees with the required skills will be necessary and measure it against your company’s
current workforce. This will help you determine what skills your company will need in the
future and how to develop those skills in your workforce.

3. Determine the resources needed to achieve company goals

After you know your company’s goals and have forecasted future needs, you need to
determine the resources needed to achieve those goals. This includes identifying the financial
resources, human resources and physical resources required.

4. Execute your plan

Now that you’ve set your company’s goals, forecasted its future needs and gathered the
resources required to achieve those goals, it’s time to put your SHRM plan into action. Most
companies start by recruiting the right candidates, training and development and then
performance management. However, this will vary depending on your company’s specific
needs.

BARRIERS TO STRATEGIC HRM

1. Short-term mentality/focus on current performance.
2. The inability of HR to think strategically.
3. Lack of appreciation for what HR can contribute.
4. Failure to understand line manager’s role as an HR manager.
5. Difficulty in quantifying many HR outcomes.
6. Perception of human assets as higher-risk investments.
7. “Incentives” for changes that might arise.
HOW TO OVERCOME THE BARRIERS OF SHRM
1. Conduct a preliminary analysis of needs and requirements.
2. Proper communication which builds positive relations between labour and management.
3. Provide leadership who direct, guide and motivate the employees.
4. Effective human resource planning so that organization achieves standard goals.
5. Follow up and evaluate progress so that remedial action can be taken as and when necessary.
6. Formulation of strategies and implementing them properly.
7. Reward supportive behaviours.
 BACHELOR OF BUSINESS ADMINISTRATION (BBA)
Human Resources Management
Sub code- BBA-401
Unit- V
Industrial Dispute – Introduction and Meaning
For industrial progress and prosperity, maintenance of peaceful relations between labour
and capital is of the first importance. Industrial dispute means a loss, both to the
employers and the employees even when the latter scores a victory. It is also harmful to
the community in general.

Therefore, every effort is made in advanced countries to maintain industrial peace. “The
employer-worker relationship”, according to the Planning Commission, “has to be
conceived of as a partnership in a constructive endeavour to promote the satisfaction of
the economic needs of the community in the best possible manner.”

Industrial Dispute – Definition

The definition of Industrial disputes is as follows – According to Section 2(k) of the
Industrial Disputes Act, 1947 “industrial dispute” is defined as, “Any disputes or
differences between employers and employers, or between employer s and workmen, or
between workmen and workmen, which is connected with the employment or non-
employment or the terms of employment or with the conditions of labour, of any
person”.

Industrial Disputes have the following characteristics or essentials:

(1) Parties:

Industrial disputes may be among different parties.

ADVERTISEMENTS:

Ordinarily, it is among the following parties:

(i) Employers and employers,

(ii) Employers and workmen and

(iii) Workmen and Workmen.

(2) Relation:

Matter of dispute may relate to worker or to employer or to both. Normally, it relates to

an appointment or termination of a person; conditions of employment or conditions of
work.
(3) Forms:

Industrial disputes may manifest themselves in different forms, such as strikes, lock-
outs, Gheraos, go slow tactics, pens down strike, etc.

(4) Oral or Written:

Industrial dispute need not be written. It may be oral.

(5) Real:

It should be real. It should relate to employment of the worker, termination of

employment, terms of employment, conditions of employment, etc. Matters relating to
the personal life of the worker do not constitute industrial dispute.

(6) Substantial Interest:

In matter relating to industrial dispute interest either of the employer or the worker must
be involved.

(7) Related to Industry:

A dispute can be included in industrial dispute when it concerns with industry. Usually,
disputes must belong to an industry which is functioning. Disputes belonging to an
industry that has since been closed down should not be included in it.

(8) Clarification:

Industrial disputes should relate to matters which are clear. Unless, it is a transparent
case its settlement is not possible. Matters which are clear find settlement easily.
Concerned party can protect its interest when the issue is crystal clear.

(9) Origin:

Ordinarily, dispute arises when the workers or trade unions put up their demands before
the employer and the latter refuses to consider them.

Industrial Dispute – 4 Different Types

1. Interest Disputes:
These conflicts are also called ‘conflicts of interest’ or ‘economic disputes’. Such
disputes relate to the establishment of new terms and conditions of employment for the
general body workers i.e., that affect the masses. Generally, such type of disputes
originate form trade union demands or proposals for increase in wages or other
emoluments, fringe benefits, job security or other terms of employment. These demands
are put forth by the trade unions with a view to negotiate through collective bargaining
and disputes when the parties fail in their negotiations to reach an agreement.
2. Disputes over Unfair Labour Practices:
Such disputes arise over the malpractices adopted by the management against a worker
or trade union. The examples of such malpractices may be discrimination against
workers for their being members of the trade union or their involvement in union
activities; interference, restraint or coercion of employees from exercising their right to
organise, join or assist a union; establishment of employer sponsored unio n and coerce
the workers to join such union; refusal to bargain with the recognized union; recruiting
new employees during a strike which is not declared illegal; failure to implement an
award, settlement or agreement; indulging in acts of violence. These practices are also
known as ‘trade union victimization’. In some countries a procedure is given to settle
such disputes. In the absence of any such procedure, the disputes are settled in
accordance with the provisions of the Act relating to industrial disputes.

3. Grievance or Rights Disputes:

These disputes are also known as ‘conflicts of rights’ or ‘legal disputes’. They involve
individual workers or a group of workers in the same group. In some countries, such
disputes are called ‘individual disputes’. Such disputes arise from the day to day working
relations of the workers and management, usually, as a protest by the workers or workers
against an act of management that is considered to violate his or their legitimate right.

4. Recognition Disputes:
Such type of disputes arises when the management refused to recognise a trade union for
purposes of collective bargaining. Issues under this category differ according to the
cause that led the management to refuse recognition. Here the problem is that of attitu de.

However the management refusal may be on the ground that the union requesting for
recognition does not represent a specific number of Workers. In such case, resolution of
issue depends upon whether the rules for recognition of a trade union exist or not. Such
rules may be laid down by law, for they may be Conventional or derived from prevailing
practices in the country.

Grievance

Steps to address grievances

1.Understand the issue
Identify all affected parties and gather relevant information, including dates, individuals
involved, and reasons for dissatisfaction. Sometimes, a single complaint may encompass
multiple underlying issues, necessitating a thorough understanding of the situation.
2.Explore solutions
Engage members in brainstorming potential solutions for each identified issue. Consider
different options, whether maintaining existing rights or negotiating new ones, while keeping
the overall goal in mind.
3.Evaluate solutions
Rank potential solutions from best to worst for each issue, facilitating informed decision-
making.
4.Clearly state the grievance
Present the grievance as a problem with proposed solutions rather than as a demand, ensuring
clarity on who is affected, the nature of the complaint, and the proposed resolution.
5. Present the grievance
Follow the agreed-upon grievance procedure involving management, shop stewards, and
affected parties. Request lower-level meetings if feasible, ensuring the presence of the
aggrieved member in individual cases.
6. Seek a response
Request a timely response from management and negotiate solutions during meetings.
Escalate the matter if there is no satisfactory solution.
7. Further action
If initial attempts fail, repeat the process or consider holding demonstrations to express your
concerns to the management.
8. Declare a dispute
Follow established dispute procedures or seek assistance from union organisers to declare a
dispute and hold a meeting with management.
9. Tactics for resolution
Discuss potential strategies, including mediation, arbitration, or industrial action and involve
workers in decision-making.
10. Formalise agreements
Ensure agreements are documented in writing and signed by both parties, with a clear
understanding of the terms.
A primary responsibility of a shop steward is to represent union members throughout the
grievance processes and hearings in the workplace.
Grievance hearings occur when a worker raises a complaint concerning the actions of the
employer, other workers, or the general working conditions. The employer must safeguard
the aggrieved worker from any form of victimisation.