Human Resource Management

Key Terminology List

1. Human resources:
The ‘human resource’ of an organization is composed of all the efforts, skills or capabilities of all the
people who work for that organization. Some organizations may call this ‘human resource’ as ‘staff’ or
‘workforce’ or ‘personnel’ or ‘employees,’ but the basic meaning remains the same. All those who work
for an organization are workers. However, the organizations may call those who do manual work as
‘workers’ and describe others who do non-manual work as ‘staff.’ The executives of an organization are
supposed to manage its human resource in the most effective manner so that personnel work well in the
best interests of the organization, and in their own interests, too. For this purpose, it is essential that good
personnel relations are established with the entire workforce.

2. Human Resource Management:

Human resource management refers to the activities of specialist staff that are responsible for the
personnel objectives of the organization. The head of this department is responsible for establishing and
implementing strategies for the human resource of the organization – its people. Staff members of this
department are responsible for providing guidance and assistance to both management and employees. In
a sense, it is their job to manage people. They do so by acquiring, retaining and developing the human
resource of the organization. The policies of the Human Resource Department affect the entire workforce.
Hence it is their responsibility to look after the interests of all – management as well as other employees.
Graham, 1978: The purpose of HRM is to ensure that the employees of an organisation are used in such
way that the employer obtains the greatest possible benefit from their abilities and the employees obtain
both material and psychological rewards from their work.”
Storey, 1995: “HRM is a distinctive approach to employment management which seeks to achieve
competitive advantage through the strategic development of a highly committed and capable workforce,
using an array of cultural, structural and personnel techniques.”
Armstrong, 2010: “Human resource management is defined as a strategic and coherent approach to the
management of an organization’s most valued assets – the people working there who individually and
collectively contribute to the achievement of its objectives.”

3. Strategic HRM: The strategic aspects of HR managers are the following:

 Innovation: They must think of new ideas in order to have more effective and efficient HR
systems.
 Long-term planning: They must devise long-term HR plans for the organization so that the
objectives and goals of the organization may be achieved in a systematic manner.
 Advisory function: They must assist managers of other departments with HR activities
so that the operational aspects of HR policies are carried out effectively. However, this
involvement of HR department depends on the structure and size of the whole organization.
4. Employee engagement: The degree to which participants are actively involved in and
contributing to the learning experience
 Job satisfaction (the feeling of well-being, or the extent to which people like (satisfaction)
or dislike (dissatisfaction) their jobs).
 Competence (ability)
 Commitment (willingness)
to perform for an organization at a high level and over an extended period of time
Engaged employees: understand what they need to do to add value and are satisfied with organization
and their role in it.
Employee engagement is a concept which is based on old concepts like job satisfaction, employee
commitment and organizational citizenship behavior. Employee engagement begins from the very first
day of recruitment as the organizations like to retain best talent for a long period of time. It is beneficial
for both the organization as well as the employees. Organizational productivity leads to a higher level
with adequate employee engagement that facilitate in commencement of a higher level of commitment
towards customer satisfaction. Employee engagement is the broader concept that connects almost every
part of Human Resource Management. If every part of Human Resource Management is not properly
handled, employees may not be able to engage themselves in their job which leads to a mismanagement.
Employee Engagement is a concept defining relationship between an organization and its employee. An
Engaged Employee is one who is fully incorporated by and committed to their work and related to the
organization’s interest and growth. Employee should feel enthusiastic about their work and should be
done for the benefits of organization.

5. Employee satisfaction: the feeling of well-being, or the extent to which people like (satisfaction)
or dislike (dissatisfaction) their jobs. It is measured with attitude surveys.

6. HR Planning:
“It is a strategy for the acquisition, utilization, improvement and retention of an organization’s human
resources.” // identifying staffing needs, conducting job analysis (determining the exact nature of the
position to be filled) and job design (determining how the job is to be performed and the material and
equipment required to do the job)
7. Job Analysis:
It is the process by means of which a description is developed of the present methods and procedures of
doing a job, physical conditions in which the job is done, relation of the job to other jobs and other
conditions of employment. Job analysis is intended to reveal what is actually done as opposed to what
should be done. Therefore, if an employee is found doing some activity not required of that job, it should
still form part of the job analysis.
The nature of job changes over a period of time. New developments take place. New personnel are
employed. All this necessitates that jobs are reviewed and analyzed to suit the changed circumstances.
First the following points should be analyzed:
1. What different tasks are to be performed – whether it is single task or a small number of multiple
tasks.
2. How the different tasks are to be performed. It means the procedures to perform these tasks in the
best possible way.
3. What qualifications (education, training, skills etc.) and personal qualities (good eyesight, good
hearing, pleasant voice etc.) should be possessed by the candidate.
4. For what and to whom the candidate will be responsible.
PPTX: The process to identify the work performed including
▫ the nature of the work performed,
▫ the associated responsibilities and accountabilities,
▫ the equipment used,
▫ the skills and knowledge required
and the working conditions for each of the position of the job within the organization with the emphasis
on the outputs or performance standards expected
8. Job description: Identification of the main components of the jobs:
1. Main tasks; 2. Responsibilities and duties; 3 . Authority; 4 . Standards of performance; 5. Working
conditions
9. Job specification: Identification of the qualifications of a person who should be capable of doing
the job tasks noted in the job description. Basic components
1. Personal characteristics 2. Physical characteristics 3. Mental characteristics 4. Social and
psychological characteristics
10. Job rotation: employees switch, for a period of time, from one job to another. This provides
variety and gives employees a more comprehensive view of the organization or the production
process.
11. Job enlargement: employees are given more things to do within the same job. This provides job
variety and a greater challenge for employees.
12. Job enrichment: employees are given more control and independence over how they do their
work. This makes the job more interesting and challenging and provides motivating
opportunities for self-satisfaction.

13. Recruitment: attracting people to apply for the position in the business, undertaking internal and
external recruitment. // Armstrong, 2011: is the process of finding and engaging the people the
organization needs. // Recruiting process Lussier and Hendon, 2016: is the process of creating
a reasonable pool of qualified candidates for a job openings.
14. Internal recruiting: Filling job openings with current employees or people the employees know.
Sources: – Promotion from within; –Employee referrals.
 15. External recruiting: The process of engaging individuals from the labour market outside the
organization to apply for a job. Sources: –Walk-ins –Educational institutions – Employment
agencies –Advertising.

16. Social recruiting: (social hiring or social media recruitment).

It is recruiting candidates by using social platforms. Social recruiting uses social media profiles, blogs,
and other Internet sites to find information on candidates. It also uses social media to advertise jobs.
Social recruiting effectiveness and return on investment have been difficult to determine, since applicants
do not usually apply through the social channels.

17. Selection:
Once the applications have been received, the information about the applicants is compared with the
requirements for the position applications have been called for. The applicants who fulfill the criteria, are
short-listed and invited to attend a personal interview. // Choosing and hiring the most qualified; testing
and interviewing
18. Assessment centers:
Assemble a group of candidates and use a range of assessment techniques over a concentrated period
with the aim of providing a more comprehensive view of the candidate suitability Features:
 The focus of the centre is on behaviour.
 Exercises: teamworking, role-playing, are used to capture and simulate the key dimensions of the
job.
 Performance is measured in several dimensions in terms of the competencies required.
 Several candidates are assessed together.
 Several assessors are used in order to increase the objectivity of assessments.

19. Biodata:
 Items of biographical data: demographic details (age, family circumstances), education and
professional qualifications, previous employment history, work experience, etc.
 Items are weighted according to their relative importance as predictors.
 A range of scores is allocated to each item.
 Is useful when a large number of applicants are received for a limited number of vacancies.

20. Types of interviews: An interview is a face-to-face meeting and discussion between an applicant
and the employer’s representative. Depending on the type of post, interview can be conducted by
a single manager – usually HR manager – or HR manager and the manager
of the department for which interviews are being conducted. For managerial positions there is a
panel of interviewers including HR manager, Departmental manager, one of the top managers,
and an internal/external interview specialist.
 Individual interviews
 Interviewing panels
 Selection boards

21. Classification of interview based on the content

 Situational interview: candidates are asked specific questions about what may happen on a job.
The candidate is asked to assess a situation and to provide solutions on how he or she would
handle it.
 Behavioral interview: discovering how the interviewee acted in specific employment-related
situations. The logic is that how you behaved in the past will predict how you will behave in the
future
 Job-related interview: is an interview consisting of a conversation between a job applicant and a
representative of an employer which is conducted to assess whether the applicant should be hired
 Stress interview: The logic is that the way you respond under stress during the interview is
indicative of the way you'll handle similar situations on the job. Creating an emotionally chaotic
setting puts candidates under psychological stress to see if they will crack, remain calm, or even
thrive under pressure.
22. Predictive validity
 The ability to recruit and select the right person based on a prediction of future performance.
23. Reliability
The ability to repeat the process across candidates.
24. Learning
It is the means by which a person acquires and develops new knowledge, skills, capabilities,
behaviors and attitudes. It has happened when people can demonstrate that they know something
that they did not know before and when they can do something they could not do before.
Development is not the same as training. Development focuses as much on personal growth as
skills that are directly related to the job. A development programme is designed to make
individuals more skilled, more flexible in their approach and better qualified for their chosen
careers.
25. Development
It is concerned with ensuring that a person’s ability and potential are grown and realized through
the provision of learning experiences or through self-directed (self-managed) learning.
The process of identifying and meeting individual needs of employees within the organization.
26. Training
The application of formal process to help people to acquire the necessary skills. Training is the
process of instructing an individual about how to carry out tasks directly related to his or her
current job. The purpose of training staff is to develop existing skills or gain new ones. This
contrasts with development which involves helping individual employees to achieve their full
potential, regardless of whether this is related to their existing position or role.
27. On-the-job training
It is a hands-on method of teaching the skills, knowledge, and competencies needed for
employees to perform a specific job within the workplace. Employees learn in the environment
where they will need to practice the knowledge and skills obtained during training.

28. In-house development programmes

In-house training is a training program for learning opportunities developed by the organization
in which they are used.

The Advantages and Benefits:

• Training cost savings – Cost per delegate is typically lower than public scheduled courses due
to the fact the training company only must send a trainer to you rather than set up an
environment themselves. Therefore, reasonable savings can be made. We recommend to our
clients if they have more than 4 people to run in-house training courses as this is the break-
even point.
• Travel cost savings – In addition to this, you don’t have to pay for the travel and possible
accommodation costs to get your employees to the training centre. With fuel prices so high and
training centres often being in the large cities where accommodation is at its most costly, this
could save you a significant amount.
• More focused training– Running an in-house training course for a single client can generally
allow the training to be a lot more focused on the specific subjects and skills that are relevant
 to your business. Public scheduled courses and e-learning will often be generic for businesses
of any sector or size that attend them.
• Can use current work examples – Training In-House means the courses can be prepared to
fix your individual issues using real-life examples and therefore have the most
effect. Delegates will be able to work on current work or examples of work which relates to
their roles, not a generic example.
• Convenience – Organising training for a group of individuals all with their own timetables and
responsibilities can be a very difficult task. However, by having In-House training courses in
your own building, it can make working around people’s schedules a lot easier as you are
cutting out logistical issues as well as the fact any candidates can be easily reached in case
something arises that needs to be addressed quickly.
• Team building – Having a room full of delegates from different departments and levels can
encourage teamwork. This is a fantastic result as it is often in this social learning that the most
learning is done when ideas are being bounced off each other. This will also likely lead to
increased awareness and understanding of each other’s roles as well as staff morale.
The Disadvantages and Costs:

• Extra administration – Although you save money by lessening the organisation needed by
the training company, you do take on this burden yourself. Requirements of In-House training
courses could include a training room, parking for the trainer, equipment such as projectors,
laptops and tablets amongst other things. These need to be sorted out and in advance to ensure
the training works.
• Delegates stay onsite – As much as this is a benefit, it is also a disadvantage to In-House
training. The pure fact the candidates could be pulled out of the classroom in order to help with
other activities suggests they probably will be. This makes it hard to get a candidate through an
entire session without interruption.
• Dedication – It could be argued that by not moving the training course out the building, it
might not be viewed as such a serious event by your employees than if you were to take them
to an external location. It might just be a break from their usual job and days may well be
skipped by some if they know they are running again the next day. Again, the convenience
factor means it is easier to duck in and out.
• Lack of innovation – If you are using all your own equipment in the same environment that
your staff are used to there is a danger of the training course going stale. Familiarity could
mean a lack of improvement on the training that could hold you back.
• Networking – Your staff will not meet anyone from other companies if the training course is
done In-House. This is missing out on an excellent networking opportunity as well as the fact
different ethos’ and styles brought by employees from other companies can give a different
perspective to your employees – again helping them develop.
29. Employee development plan
EDP identifies areas in which each employee needs to develop his/her skills and identifies specific way to
do so. Employee development plans to set clear expectations of performance and growth. An employee
development plan is a critical retention tool, incentivizing top employees with career development and
strategic planning. Choose the right type of plan for specific employees to increase motivation and job
success.

30. Evaluation of learning - Training: It is a systematic evaluation and assessment of information

for deciding how best to utilize available resources in order to achieve organizational objectives.
Training is done with specific objectives. Hence evaluation of training is a must. It is necessary in order
to determine:
 if the developmental objectives were achieved;
 if the method of instruction was effective;
 if the best and the most economical training activities were organized and implemented.
The importance of training evaluation is shown in the following diagram which shows the
sequence of training activities.
Evaluation helps to tell us about the quality of the training on the one hand and the effect that it has
created on the learners, on the other hand. Systematic evaluation can point out the weaknesses in the
programme, so that they could be corrected in the future programmes. It can also indicate the extent to
which learners have learned what has been taught in the training sessions, the extent to which they have
transferred their learning to the work situation and the results yielded thereafter.
31. Kirkpatrick model
The Kirkpatrick Model is probably the best known model for analyzing and evaluating the results of
training and educational programs. It takes into account any style of training, both informal or formal, to
determine aptitude based on four levels criteria.
Level 1 Reaction measures how participants react to the training (e.g., satisfaction?). Level 2
Learning analyzes if they truly understood the training (e.g., increase in knowledge, skills or
experience?). Level 3 Behavior looks at if they are utilizing what they learned at work (e.g., change in
behaviors?), and Level 4 Results determines if the material had a positive impact on the business /
organization.

The Kirkpatrick Model is probably the best known model for analyzing and evaluating the results
of training and educational programs. It takes into account any style of training, both informal or
formal, to determine aptitude based on four levels criteria.
• Level 1 Reaction measures how participants react to the training (e.g., satisfaction?).
o Customer Satisfaction
The original definition measured only participant satisfaction with the training.
o Engagement
The degree to which participants are actively involved in and contributing to the
learning experience
o Relevance
The degree to which training participants will have the opportunity to use or apply
what they learned in training on the job

• Level 2 Learning analyzes if they truly understood the training (e.g., increase in
knowledge, skills or experience?). The degree to which participants acquire the
intended knowledge, skills, attitude, confidence and commitment based on their
participation in the training
o Knowledge “I know it.”
o Skill “I can do it right now.”
o Attitude “I believe this will be worthwhile to do on the job.”
o Confidence “I think I can do it on the job.”
o Commitment “I intend to do it on the job.”
• Level 3 Behavior looks at if they are utilizing what they learned at work (e.g., change
in behaviors?). The degree to which participants apply what they learned during
training when they are back on the job
New World Addition:
Required Drivers: Processes and systems that reinforce, encourage and reward
performance of critical behaviors on the job
• Level 4 Results determines if the material had a positive impact on the business /
organization. The degree to which targeted outcomes occur as a result of the training
and the support and accountability package
New World Addition:
Leading Indicators: Short-term observations and measurements suggesting that
critical behaviors are on track to create a positive impact on desired results.
32. Performance: P = f ( AMO)
It is the process of identifying, measuring, managing, and developing the performance of the human
resources in an organization. It is a continuous process of identifying, measuring and developing the
performance of individuals and teams and aligning performance with the strategic goals of the
organization.
P = Performance – Unless behaviour changes, you cannot improve personal, team or company
performance. People will not change their behaviour unless they understand and influence three key
elements.
Ability – a combination of knowledge, skills, attitude, behaviour
that affect a person’s capability to carry out a specified job.
Motivation – the individual’s choice to perform a particular task, as well as the level of effort given to
that task.
Opportunity to succeed is provided by a working environment.
33. Performance Management
It is the process of identifying, measuring, managing, and developing the performance of the human
resources in an organization. It is a continuous process of identifying, measuring and developing the
performance of individuals and teams and aligning performance with the strategic goals of the
organization.
34. High performance culture
It is a way of working and a set of values which encourage people so that they are engaged to achieve
high results.

35. Performance appraisal

It is the ongoing process of evaluating employee performance. Performance appraisal means the
systematic evaluation of the performance of an employee by his/her superiors. It is a tool for discovering,
analyzing and classifying the differences among workers in relation to job standards. It refers to the
formal system of appraisal, in which the individual is compared with others and ranked or rated.
Generally, appraisal is made by the supervisor or manager once or twice in a year.
• It is used to appraise the quality of performance of different employees. It includes knowledge
of the work, ability to do the work efficiently, spirit of coordination, dependability,
punctuality, enthusiasm, self-confidence, leadership qualities etc.
• Through this method, the appraisal procedure is standardized so that the management may rate
all the employees on the same qualities by the same method of measurement.
• It may be used for training of employees.
• It is also useful in deciding the type and nature of training programmes for employees. It helps
in the placement of employees properly and also in finding out the ‘misfit’ who may be
transferred to the right place.
• It forms an unbiased and systematic basis for any increase in the wages of employees.
• It helps in identifying employees who may be considered for promotion.
36. Performance appraisal measurement methods
 Ranking method is a performance appraisal method that is used to evaluate employee
performance from best to worst.
 Graphic rating scale form is a performance appraisal checklist on which a manager simply
rates performance on a continuum such as excellent, good, average, fair, and poor. The
continuum often includes a numerical scale, for example from 1 (lowest performance level) to
5 (highest performance level).
 Behaviorally Anchored Rating Scale (BARS) is designed to bring the benefits of both
qualitative and quantitative data to the employee appraisal process. BARS compare an
individual’s performance against specific examples of behavior that are anchored to
numerical ratings.
 Narrative method or form requires a manager to write a statement about the employee’s
performance.
 Management by Objectives (MBO) method is a process in which managers and employees
jointly set objectives for the employees, periodically evaluate performance, and reward
according to the results.
 Critical incidents method is a performance appraisal method which involves identifying and
describing specific events (or incidents) where the employee did something well or something
that needs improvement.
37. Employee well-being
Is concerned with creating an environment which allows an employee to grow and achieve their full
potential for the benefit of themselves and their organization.
Represents a broader bio-psycho-social framework that includes physical, mental and social health.
• Maintaining a safe and stable working environment;
• Managing effectively risks to physical and mental health;
 • Promoting supportive, trusting and respectful relationships and a positive psychological
contract;
• Enabling employees to achieve their potential;
• Providing intrinsically rewarding, challenging and satisfying work;
• Encouraging and supporting good physical and mental health both inside and outside of
the workplace.
38. Employee assistance programmes (EAPs)
A confidential counseling and referral service for employees and their household members. A starting
place for addressing personal problems. An avenue of assistance for managers and employees whose
personal problems may be affecting their work performance. Help for participants to deal privately and
effectively with personal problems.
39. Occupational health (OH) services
Occupational safety and health (OSH), also commonly referred to as occupational health and
safety (OHS), occupational health, or workplace health and safety (WHS), is a multidisciplinary field
concerned with the safety, health, and welfare of people at work.
• Decrease the number of accidents and diseases thus minimize costs.
• Be more pro-active than reactive in OSH policy
• Decrease the number of incidents which slowdowns the production
40. Flexible work environment.

Work practice (explained by the employer in employment policies and contracts) that allows the
employees a certain degree of freedom in deciding how the work will be done and how they'll coordinate
their schedules with those of other employees. The employer sets certain limits such as minimum and
maximum number of hours of work every day, and the core time during which all employees must be
present.
41. Unlimited paid time off (PTO).
Allows employees to take off as many days as they need for things like vacation and illnesses. It boosts
employee wellness through relieving overworked employees and giving them more time to focus on their
health and wellness.
The Pros:
• Easier for HR departments
• It’s surprisingly cost-efficient
• It’s a recruitment tool
• Employees will be rewarded based on results, not appearances
The Cons
• Potential for abuse
• Less regulation
• Penalizing PTO
• Losing PTO as a reward