Basic Concepts

Organizational composition & role of HRM

Management, Managers and Organization

The art of getting work done by others through utilizing organizational resources effectively
and efficiently to achieve organizational objectives.

e.g.

input (resources) vs output (results)

Managers

Person who has the art/ability of getting work done by others

Types

Top, middle (strategic), low (line manager)

Work force, labor, functional, supportive e.g blue collar and white collar

Organization, Process, People, Structure

Continuous renewal is the key purpose

Mintzberg 3 key management role and further division

Informational role

 Recipient
 Disseminate
 Spokes person

Decision Role

 Entrepreneurial
 Disturbance handler
 Resources allocator
 Negotiator

Interpersonal Role

 Figure head
  Leader
 Laison

Resources are of many types

Resources (tangible and intangible)

 Human skills (tasks done by hand)

 Communication (Relations)
 Motor skills (intuition)
 IQ (induction of specific phenomena done in general)
 EQ (deduction observing things from general to specific)
 Competency (Skill improvement)
 Capacity (No of capabilities)
 People Vs Resource or Liability
 Psychological capital
Hope, optimism, self-efficacy and resistance are mentioned by Luthen

Structure

It consists of job design, departmentalization, delegation, span of control and chain of

command

Purpose

Vision, mission, objective; objectives must be ‘SMART’

Position and Process flowcharts

Position flowchart represents the flow of positions whereas; process flowchart represents the
sequence of input processing and generation of output e.g production process.

Types

 Mechanistic (Rigid)
 Organic (Flexible)

HRM Practices, Bundles, HPWS

HRM practices = are the transactions

HRM Bundles =clusters 2-3 related HR practices)

HPWS = 2-3 bundles which are linked

HRM Practices

Job Analysis

When you analyse you mainly checks why this job exists, what purpose does it solve, why it
exists, title of job and reporting structure.

Job analysis also judges/determine the tasks that what needs to be performed, what kind of
abilities, knowledge & skills are required and overlapping tasks.

1. Usage (functions of HRM including staffing)

2. Method (Interview; structured unstructured, open ended questions and environment
feasibility).

Job Description

It is basically identification summary explaining duties/ expectation/ specifications of job

Job Specification

Abilities and academic knowledge required to perform a job including certifications,

competencies & core KSA; it is done to identify right person for right job.

Advanced Recruitment, Planning, Forecasting & Selection

Organization and Recruitment Needs

People, Purpose, Structure [Position & Process Charts] >> HR Forecasting >> HR
Strategy /HR Score Card [Recruitment]

 It Ensures Transparency in The Hiring Process

 It Paves the Way for Merit-Based Hires
 It Provides Consistency
 It Lends Credibility to an Organization
 It Helps Write an Appropriate Job Description
1. HR forecasting
Human resources (HR) forecasting involves projecting labor needs and the effects they'll
have on a business. An HR department forecasts both short- and long-term staffing needs
based on projected sales, office growth, attrition and other factors that affect a company's
need for labor.

 Trend analysis is of past experiences e.g. seasonal changes

 Ration Analysis is ratio of hiring and turnover relative to the department.
 The Scatter Plot HR managers use scatter plot to predict the relationship or demand
between the business activity and staff levels. If there is a relationship between these
two variables, then the HR manager will be able to estimate the company’s employee
requirement.
 Regression Analysis explains the effect of one or more variables on other variables.
 Markov Analysis it analyses the difference/ deficiency across the department and
across the level e.g. how many employees are leaving or promoting
 Position Replacement Charts it analyses the difference/ deficiency across the level
but within the department
2. Market supply analysis

It tells about the skills, education, competence, KSA, market pay rate, economic situation and
self-compensating power e.g. retention and increase in turnover

3. The recruitment yield pyramid

It tells about the Historic Arithmetic Relationship between Total Pool and Retention e.g. for
10 available seat 1000 applicants apply

4. Attracting the Right Person

Marketing the job [Product/Job (employer branding), Price/Remuneration, Place/Feasibility

(hard and soft area), Promotion/Ads]

5. Recruitment Methods

[Print, Electronic, Cybernetic, References, Word of Mouth, Flyers, Brochures, Job Fairs,
Seminars, Biding, Posting, Vehicle Displays, Agencies, Consultants]

6. Application Formats and Usages

Forms of Application [Application Forms, CVs, Letters of Applications, Telephone Calls]

Data Bank [Collecting, Arranging, Saving, Sorting, Filtering, Retrieving, Decision Making]

7. Matching against JD, JS [Comparing, Funneling, Analyzing]

8. Screening & Shortlisting [Biodata, KSA, Graphology, Tests, Opinions, Shortlisting
Matrix]

Selection Methods

1. Assessment Centers, Work Samples, Ability Tests, Personality Tests, Biodata,

2. Interviews, References, Medical, Security Checks, Criminal Backgrounds]
3. Errors and Biases, Validity and Reliability
4. After The Offer
5. Win-Win, Making an offer, Negotiating the Offer, Treating Unsuccessful,
6. Giving Feedback, Archiving data, Learning From Mistakes, Promotion,
7. Demotion, Turnover, Training, Show Causes, Counseling, Dismissals]
8. Induction and Welcome

Induction Methods [Checklists, Handbooks, Buddying, Mentoring, Inclusion, Socialization,

Celebrating, Probation, Initial Training]

9. Evaluating The Decision

Validity, Utility, Efficiency, Trainability, Performance, PO Fit, PJ Fit, Opportunity Cost

[Agents / Consultants]

Escalation of commitment

Investing in a project but then you realize is not effective but you stick to it.

Training & Development

Why T&D?

Optimum utilization of Human Resources – Training and Development helps in optimizing

the utilization of human resource that further helps the employee to achieve the
organizational goals as well as their individual goals.

Learning Vs Performance

Learning refers to relatively permanent changes in knowledge or behavior. Performance, on

the other hand, refers to temporary fluctuations in knowledge or behavior that can be
measured or observed during (or shortly after) instruction. Simply put, performance is short-
term, whereas learning is long-term.

Actual Vs desired performance

Comparing actual performance with desired performance: At this stage, actual

performance is compared with the desired performance or performance standards. This
comparison can show actual performance being more than the desired performance or, actual
performance being less than the desired performance.

Motivation to learn

Motivation is an intrinsic driving force (internal factor)

The employees should be motivated to learn the new trends, educational and organizational
analysis. So, the first step is to motivate your company’s employees to attend the training.
You can offer them good trainers, tea breaks and lunch. It should be environment friendly, to
keep employees motivated.

Theories of Motivation

1. Need based/cognitive

Needs-based theory states that employees have certain needs that must be met in order to

be motivated to perform.

 Maslow theory of needs

Maslow proposed that motivation is the result of a person's attempt at fulfilling five basic

needs: physiological, safety, social, esteem and self-actualization. According to Maslow,
these needs can create internal pressures that can influence a person's behavior.

 3 needs theory (ERG)

Psychologist David McClelland advocated Need theory, also popular as Three Needs

Theory. This motivational theory states that the needs for achievement, power, and
affiliation significantly influence the behavior of an individual, which is useful to understand
from a managerial context.

 Expectancy theory
Expectancy Theory, a motivational theory proposed by Victor Vroom of the Yale
School of Management, proposes that people choose to behave in certain ways because
they are motivated by the results (or in most cases, rewards) they expect to get from those
choices.

 Two factor theory

The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-

factor theory) states that there are certain factors in the workplace that cause job
satisfaction while a separate set of factors cause dissatisfaction, all of which act
independently of each other.

 Goal setting theory

Goal-setting theory of motivation states that specific and challenging goals along with

appropriate feedback contribute to higher and better task performance. ... In the 1960s,
Edwin Locke put forward the goal-setting theory of motivation. The theory states
that goal setting is essentially linked to task performance.

 MBO

Management by objectives (MBO) is a strategic management model that aims to

improve the performance of an organization by clearly defining objectives that are agreed
to by both management and employees. ... The term was first outlined
by management guru Peter Drucker in his 1954 book, The Practice of Management.

 SOR

S-O-R theory indicates that organism can mediate the effect of stimulus on response
(Mehrabian and Russell, 1974). The core proposition (see Figure 1) is that the formation
of CL begins with the input of SCMM stimulus, followed by the process of SC value
organism, and finally results in the output of loyalty response.

 Psy cap

Psychological capital, a newly developed construct by academics and practitioners, is

defined as the extent to which an individual operates in a positive psychological state,
and this state is characterized by high self-efficacy, optimism, hope, and resiliency.

 COR
Conservation of Resources (COR) Theory is a stress theory that describes the
motivation that drives humans to both maintain their current resources and to pursue new
resources. This theory was proposed by Dr. Stevan E. Hobfoll in 1989 as a way to expand
on the literature of stress as a construct.

Hobfoll posited that psychological stress occurred in three instances; when there was a

threat of a loss of resources, an actual net loss of resources, and a lack of gained resources
following the spending of resources. From this perspective, resources are defined as
things that one values, specifically objects, states, and conditions.  COR states that loss of
these types of resources will drive individuals into certain levels of stress. 

2. Behavioral theories

Behavioral theory seeks to explain human behavior by analyzing the antecedents and

consequences present in the individual's environment and the learned associations he or
she has acquired through previous experience.

 Transactional leadership theory

Transactional leadership is a style of leadership in which leaders promote compliance

by followers through both rewards and punishments. ... Unlike transformational leaders,
those using the transactional approach are not looking to change the future, they look to
keep things the same.

 Transformational leadership theory

Transformational leadership is a theory of leadership where a leader works with teams

to identify needed change, creating a vision to guide the change through inspiration, and
executing the change in tandem with committed members of a group; it is an integral part
of the Full Range Leadership Model.

 Theory XY

The concept of Theory X and Theory Y was developed by social psychologist

Douglas McGregor. It describes two contrasting sets of assumptions that managers make
about their people: Theory X – people dislike work, have little ambition, and are
unwilling to take responsibility, while Theory Y highlights the motivating role of job
satisfaction and encourages workers to approach tasks without direct supervision.
 Theory Z

Theory Z is a name for various theories of human motivation built on Douglas

McGregor's Theory X and Theory Y. ... For Ouchi, Theory Z focused on increasing
employee loyalty to the company by providing a job for life with a strong focus on the
well-being of the employee, both on and off the job.

 Operant Conditioning

Operant conditioning is a theory of learning in behavioral psychology which

emphasises the role of reinforcement in conditioning. It emphasises the effect that
rewards and punishments for specific behaviors can have on a person's future actions.
The theory was developed by the American psychologist B. F.

 Reinforcement theory

Reinforcement theory is the process of shaping behavior by controlling the

consequences of the behavior. In reinforcement theory a combination of rewards and/or
punishments is used to reinforce desired behavior or extinguish unwanted behavior.

 Social learning theory

Social Learning Theory (Albert Bandura) The social learning

theory of Bandura emphasizes the importance of observing and modeling the behaviors,
attitudes, and emotional reactions of others. ... Because it encompasses attention, memory
and motivation, social learning theory spans both cognitive and behavioral frameworks.

 Imitation theory

The theory refers to imitation of a reality that can be perceived through the senses. ...
The imitation theory is often associated with the concept of “mimesis”, a Greek word
that originally meant “imitation”, “representation” or “copy”, specifically of nature. E.g.
kids beating the dolls same way shown before

3. Job oriented theories

 JCM

The Job Characteristics Model (also know as Jobs Characteristic Theory) enables you to
improve employee performance and job satisfaction by means of adjusting the job itself.
The model states that if you do this successfully you can create the conditions for an
 employee to thrive in their role. By thrive, we mean that the employee will be motivated,
perform to a high level, and be satisfied by their role.

 JRD

Job demands-resources model. The job demands-resources model or JD-R model is an

occupational stress model that suggests strain is a response to imbalance
between demands on the individual and the resources he or she has to deal with
those demands.

 Job Rotation

Job Rotation is a management approach where employees are shifted between two or

more assignments or jobs at regular intervals of time in order to expose them to all
verticals of an organization.

 Job Enrichment

Job enrichment is a common motivational technique used by organizations to give an

employee greater satisfaction in his work. It means giving an employee additional
responsibilities previously reserved for his manager or other higher-ranking positions.

 Job Enlargement

Job enlargement means increasing the scope of a job through extending the range of

its job duties and responsibilities generally within the same level and periphery. Job
enlargement involves combining various activities at the same level in the organization
and adding them to the existing job.

Maximizing learning

 Trainee Characteristics it includes the trainability, personality and attitude of the

individual who are the participants, trainability includes the motivation, ability, and
perception of the work environment, these factors are included in the trainability of
the training personality and attitudes include the personality orientation, type and
general inclination of the training program either he is going to learn and either he is
willing to learn or not
 Training Design refers to the conditions of the practice are vital for training design.
They can be improved for the maximization of the learning, through the active
 practice sessions can be included e.g. continuous sessions one step to another;
complete package 1 day or one week. It also includes over learning which helps to
learn and retain the training content. Feedback should be given to increase the chances
of improvement. Tasks sequencing is also important and should be aligned with the
abilities. Another important aspect is the retention of the trainings
1. Meaningful of the material ensures that the
2. Degree of original learnings it should be ensured with no hurdles and disturbance
 Transfer of training is necessary should be ensured by the identical elements
according to the person abilities, personality and behaviours.
 Stimulus

Training Process

Training Need assessment

 Assess needs
 Types [Diagnostic, Analytical, Competence]
 Levels [ Strategic, Task, Person]
 Prioritize needs
 Critical /Importance
 Valence Cost /Benefits
 Urgency/Order

Designing Training Program

 Define objectives [Performance, Conditions, Criteria]

 Developing Lesson Plan [Develop/Acquire Material]
 Make vs Buy [Cost, Credentials, Background, Philosophy, Experience, Method,
Content,
 Actual Product, Results]
 Select Trainer [Subject Matter Expertise, Teaching Skills, Train the Trainer]
 Preparing a lesson plan [Context, Sequence, Media, Timing]
 Select Method/Technique [Instructional, OJT, Work Simulations]
 Schedule Program/Intervention [Registration, Date, Venue, Work hours]

Implementation of Designed Training [Delivery Methods]

  Actual Execution of Designed Plan
 Delivery Methods
 OJT : Job Instruction, Job Rotation, Coaching, Mentoring
 Classroom : Lecture, Conference, Workshop, Audio, Video
 Self Placed : Paper Based [Notes, Brochures, etc.], Computer Aided

Evaluating Training Implemented

Implementation of Designed Training

 Actual Execution of Designed Plan

 Evaluating Training Implemented
 Set criteria: Purpose of Evaluation
 Determine Design: Frameworks of Evaluation
 Data Collection Methods
 Types of Data
 Analysis Methods
 Biases in evaluation
 After Evaluation
 Interpret Results, Recommend for Future
 [Bonus, Certification, Promotion]