MMM

1. Chapter 2
Aim Of HRM
· The overall purpose of HRM is to ensure that the organization is
able to achieve success through people.
· develop high-performance work systems
· develop high-commitment management
· develop an environment in which teamwork
· maintain and improve the physical and mental well-being of
employees
· ensure that equal opportunities are available to all
· To create facilities and opportunities for individual or group
development so as to match it with the growth of the organization.
Functions of HRM
1. Recruitment & Selection
2. Employee Relations
3. Compensation and Benefits
4. Training and Development
5. Performance Management
1. Recruitment & Selection
· Recruitment is a very first step in the employment process
· Recruitment is the process of searching for prospective
employees and stimulating them to apply for the jobs in the
organization
· Selection is the process by which qualified and suitable store
employees are selected and placed on the jobs according to
their capabilities and organization’s requirements.

2. Recruiting & Selection basically involves three major sub-functions:
· Recruitment,
· Selection, and
· Placement on the job.
Recruitment & Selection Steps are
1. Job Analysis
2. Job Description
3. Job Specification
4. Job Evaluation
5. Searching the Right Candidates
6. Screening / Shortlisting
7. Reviewing of Resumes and Cover Letters
8. Conduct Interview
9. Interviewing
10. Identifying the top candidates
11. Evaluation
2. Employee Relations
· Employee relations refer to the relationship shared among the
employees in an organization.
· Employee Relations offers consultation, facilitation and
resolution strategies for workplace issues.
· Advises employees regarding their employment rights
Four Functions of Employee Relation are
1. Open Communication
2. Show Recognition

3. 3. Constant Feedback
4. Invest In Your Employees
3. Compensation and Benefits
· Compensation and benefits is an important aspect of HRM as it
helps to keep the workforce motivated.
· It helps give benefits to employees based on their performance
and actions and brings the best out the employees at workplace.
· It offered to employees, the more is their loyalty, motivation to
work and do well.
There can be several ways where benefits can be given to employees
1. Fixed pay
2. Variable Pay
3. Equity Pay
4. Other benefits
4. Training and Development
· Training and Development is a subsystem of an organization
which emphasize on the improvement of the performance of
individuals and groups.
· Training is an educational process which involves the sharpening
of skills, concepts, changing of attitude and gaining more
knowledge to enhance the performance of the employees.
· Good & efficient training of employees helps in their skills &
knowledge development, which eventually helps a company
improve.

4. Types of Trainings are
1. Orientation
2. Onboarding Training
3. Technical Skills Development Training
4. Soft Skills Development Training
5. Products and Services Training
6. Mandatory Training
5. Performance Management
· Performance Management is a key area under strategic HR
Management- the field of study which aims at matching
employee needs and performance to company’s strategy.
· The main stages of performance management are:
1. Goal Setting: This phase involves setting employee
performance expectations, set goals for both individuals and
groups and teach them what needs to be done.
2. Monitoring performance: This phase involves continuous
monitoring – measurement of the performance and providing
feedback on the same.

5. 3. Development: This phase refers to facilitating performance
through training, assignments, skill development programmes,
making work process easier by providing technology and other
developmental opportunities.
4. Rating: This phase involves summarizing employee
performance. The employee performance is graded against
organizational benchmarks and affects employee promotion, pay
etc.
5. Rewarding good performance: The last phase involves
rewarding employee on the basis of his/her performance. This can
be in the form of incentives, promotions, bonus etc.
Types of Performance Appraisal System
1. General Appraisal -It is an ongoing communication between the manager
and the employee throughout the year. End of the year, they will determine
if the pre-set goals and objectives were met, provide feedback and set new
goals.
2. 360-Degree Appraisal- It allows other employees to provide feedback
about their experience with a specific employee. This feedback of peers
can be reviewed by manager and considered for appraisal process.
3. Technological Performance Appraisal - It assesses technical
expertise/capabilities of an employee.
4. Employee Self-Assessment - The employee assesses himself/herself and
it is finally compared with the manager’s completed assessment results. It
is followed by discussions and if there are differences, manager speaks to
the employee about it.
5. Manager Performance Appraisal - In this type, managers go through the
appraisal process. It is the role of the manager that is very vital handling
both the team and the client. Most often manager appraisal process
involves feedback from the respective team members and sometimes from
the client as well.
6. Project Evaluation Review - This is one of the best ways to identify how
good an employee is at work. Rather than to wait to review an employee
end of the year, it helps evaluating employees end of each project.

6. 7. Sales Performance Appraisal - A sales person is judged by the goals
he/she has set versus his/her results. Salesmen are closely held to the
financial goals of any organization. The manager and salesperson must find
out ways to achieve goals prior to which they must set realistic goals.