54  Human resource management: Concept, role and functions of HRM; Human resource planning; Recruitment and selection; Training and development; Succession planning

54.1 Concept of HRM

Human Resource Management (HRM) is “the strategic and coherent approach to the management of an organisation’s most valued assets — the people working there who contribute individually and collectively to the achievement of its objectives” (Michael Armstrong). HRM moves beyond the traditional Personnel Management (transactional, administrative) to a strategic, integrated, business-aligned function. Where personnel management saw people as a cost, HRM treats them as an investment and a source of competitive advantage. The five classical HRM functions cover the entire employee lifecycle: HR planning, recruitment and selection, training and development, performance management, and compensation — supplemented by succession planning, industrial relations, employee welfare and separation.

54.2 HRM vs Personnel Management

TipHRM vs Personnel Management
Aspect Personnel Management HRM
Approach Administrative, reactive Strategic, proactive
Time horizon Short-term Long-term
Employee Cost to control Asset to develop
Communication Indirect; through union Direct with employees
Focus Compliance Performance and culture
Role Specialist Integrated business partner

54.3 Functions of HRM

TipMajor Functions of HRM
Family Working content
Managerial Planning, organising, directing, controlling the HR function
Operative — Procurement HR planning, job analysis, recruitment, selection, placement, induction
Operative — Development Training, MDP, career planning, performance appraisal
Operative — Compensation Job evaluation, wage and salary administration, incentives, benefits
Operative — Maintenance Health, safety, welfare, social security
Operative — Integration Industrial relations, grievance handling, collective bargaining, discipline
Operative — Separation Resignation, retirement, lay-off, retrenchment, dismissal

54.4 Human Resource Planning (HRP)

HRP is “the process of forecasting an organisation’s future demand for and supply of the right type of people in the right numbers” (E.W. Vetter). Steps:

TipSix Steps of HRP
  1. Analyse organisational objectives and strategy.
  2. Forecast demand for HR — qualitative + quantitative methods (ratio analysis, regression, Delphi, work-load analysis).
  3. Analyse current supply — HR audit, skills inventory.
  4. Identify HR gap — demand vs supply.
  5. Develop action plan — recruit, train, redeploy, lay off.
  6. Monitor and control.

54.5 Job Analysis, Description and Specification

TipJob Analysis Outputs
Output Content
Job analysis Systematic study of a job
Job description What the job is — duties, responsibilities, working conditions
Job specification What the job requires in the person — qualifications, skills, experience

Job analysis methods: observation, interview, questionnaire, diary, critical incident, functional job analysis (FJA), position analysis questionnaire (PAQ).

54.6 Recruitment

Recruitment is “the process of searching for prospective employees and stimulating them to apply for jobs in the organisation” (Flippo). It is a positive activity — attracting candidates. Selection is negative — rejecting unsuitable ones.

TipSources of Recruitment
Internal External
Promotions Campus recruitment
Transfers Job portals (Naukri, LinkedIn)
Internal advertisements Employment agencies / consultants
Employee referrals Walk-ins, advertisements
Re-employment of former employees Professional associations
Casual labour
Acquisitions (acqui-hiring)

54.7 Selection

Selection is the process of choosing the most suitable candidates from those who apply. Typical steps:

TipSelection Process
  1. Preliminary interview / screening.
  2. Application form.
  3. Selection tests (ability, personality, integrity).
  4. Employment interview.
  5. Reference and background check.
  6. Medical examination.
  7. Final selection and offer.
  8. Induction / on-boarding.

54.7.1 Selection Tests

  • Aptitude tests — numerical, verbal, abstract reasoning.
  • Personality tests — Big Five, MBTI.
  • Interest inventories.
  • Achievement / knowledge tests.
  • Situational judgement tests.

54.8 Training and Development

TipTraining vs Development
Aspect Training Development
Focus Specific job skills Overall growth
Time horizon Short-term Long-term
Target Operatives and supervisors Managers and executives
Nature Technical Conceptual / behavioural

54.8.1 Training Methods

TipMajor Training Methods
  • On-the-job (OJT) — apprenticeship, coaching, job rotation, internship.
  • Off-the-job — lecture, case study, role play, simulation, sensitivity training, in-basket exercises, behavioural modelling, programmed instruction.
  • Modern methods — e-learning, MOOCs, virtual reality (VR), microlearning, gamification.

54.8.2 Kirkpatrick’s Four-Level Training Evaluation Model

Donald Kirkpatrick (1959) — evaluate training at four levels:

TipKirkpatrick’s Four Levels
  1. Reaction — Did participants like it?
  2. Learning — What did they learn?
  3. Behaviour — Are they applying it on the job?
  4. Results — Did it impact business outcomes?

54.9 Succession Planning

Succession planning is “the process of identifying and developing internal talent to fill key leadership positions when they become vacant”. Key elements:

TipSuccession Planning Steps
  • Identify critical positions.
  • Identify high-potential employees.
  • Assess gaps between current capability and future requirements.
  • Develop through mentoring, stretch assignments, executive education.
  • Build a talent pipeline.
  • 9-Box Grid — performance × potential matrix.

54.9.1 Mentoring, Coaching and Counselling

  • Mentor — senior person guiding career and personal development of a junior.
  • Coach — focuses on specific skills or performance improvements.
  • Counsellor — addresses personal / emotional issues affecting work.

flowchart TB
  HRM[HRM Lifecycle] --> HRP[HR Planning]
  HRP --> R[Recruitment]
  R --> S[Selection]
  S --> T[Training & Development]
  T --> PA[Performance Appraisal]
  PA --> C[Compensation]
  C --> RT[Retention / Succession]
  RT --> SEP[Separation]
    classDef default fill:#003366,color:#ffffff,stroke:#ffcc00,stroke-width:3px,rx:10px,ry:10px;

NoteDistractor warning

PYQ trap: Recruitment is positive (attracting candidates); Selection is negative (rejecting unsuitable). Job description = duties; Job specification = person requirements.

54.10 Practice Questions

Q 01HRM-PMEasy

HRM differs from personnel management mainly in that HRM is:

  • AAdministrative and reactive
  • BStrategic and proactive
  • CConcerned with payroll only
  • DLimited to recruitment
View solution
Correct Option: B
HRM = strategic, integrated.
Q 02RecruitmentEasy

Recruitment is described as a *positive* activity because it:

  • ARejects unsuitable candidates
  • BAttracts prospective applicants
  • CPays salaries
  • DDesigns job roles
View solution
Correct Option: B
Recruitment — attract (positive); Selection — reject (negative).
Q 03JD-JSMedium

Match each output of job analysis with its content:

Output Content
(i) Job description (a) Person specifications: qualifications, skills
(ii) Job specification (b) Job duties, responsibilities, working conditions
  • A(i)-(b), (ii)-(a)
  • B(i)-(a), (ii)-(b)
  • CBoth same
  • DNeither
View solution
Correct Option: A
JD — duties; JS — person.
Q 04KirkpatrickMedium

Kirkpatrick's training-evaluation model has how many levels?

  • ATwo
  • BThree
  • CFour
  • DFive
View solution
Correct Option: C
**Four levels**: Reaction, Learning, Behaviour, Results.
Q 05HRPMedium

HRP is best defined as:

  • AProcess of forecasting demand for and supply of HR
  • BHiring of casual workers
  • CPerformance management
  • DDesigning pay structures
View solution
Correct Option: A
**Vetter** — forecast demand and supply of right people.
Q 06Training vs DevtMedium

Training and development differ in that training is:

  • AFor executives only
  • BShort-term, job-specific; development is long-term, holistic
  • CSame as development
  • DConfined to behaviour
View solution
Correct Option: B
**Training** — short-term, technical; **Development** — long-term, conceptual.
Q 07OJTMedium

Which is **not** an on-the-job training method?

  • AApprenticeship
  • BCoaching
  • CLecture method
  • DJob rotation
View solution
Correct Option: C
**Lecture** is off-the-job; the others are on-the-job.
Q 08SourceEasy

Which is an *internal* source of recruitment?

  • ACampus recruitment
  • BPromotion / Transfer
  • CJob portal
  • DWalk-in
View solution
Correct Option: B
**Promotion / transfer** = internal.
Q 099-boxHard

The "9-Box Grid" used in succession planning maps employees on:

  • AAge vs experience
  • BPerformance vs potential
  • CSalary vs tenure
  • DFunction vs region
View solution
Correct Option: B
**Performance × Potential** matrix.
Q 10LevelsMedium

Match Kirkpatrick's levels with content:

Level Content
(i) 1 (a) Behaviour change
(ii) 2 (b) Business results
(iii) 3 (c) Reaction / liking
(iv) 4 (d) Learning
  • A(i)-(c), (ii)-(d), (iii)-(a), (iv)-(b)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(b), (ii)-(a), (iii)-(d), (iv)-(c)
  • D(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a)
View solution
Correct Option: A
1-Reaction; 2-Learning; 3-Behaviour; 4-Results.
Q 11ArmstrongMedium

"HRM is the strategic and coherent approach to the management of an organisation's most valued assets" is the definition by:

  • ADrucker
  • BMichael Armstrong
  • CFlippo
  • DMcGregor
View solution
Correct Option: B
**Michael Armstrong** — *Handbook of HRM*.
Q 12Off-jobMedium

**Vestibule training** (training on simulated equipment outside the actual workplace) is:

  • AOn-the-job
  • BOff-the-job
  • CA development method only
  • DA type of mentoring
View solution
Correct Option: B
**Vestibule** = off-the-job simulation.
Q 13Job analysisMedium

A *Position Analysis Questionnaire (PAQ)* is a method of:

  • AJob evaluation
  • BJob analysis
  • CPerformance appraisal
  • DCompensation design
View solution
Correct Option: B
**PAQ** — structured questionnaire for job analysis.
Q 14MentoringMedium

Mentoring is best described as:

  • AShort-term skill training
  • BLong-term career and personal guidance by a senior person
  • CDisciplinary action
  • DPerformance appraisal
View solution
Correct Option: B
**Mentor** — long-term career guide.
Q 15Selection stepEasy

Which is **typically the first** step in selection?

  • AMedical examination
  • BPreliminary interview / screening
  • CReference check
  • DOffer letter
View solution
Correct Option: B
Preliminary screening / interview is the first filter.
Q 16Acqui-hiringHard

**Acqui-hiring** is:

  • ACasual hiring
  • BAcquiring a company primarily to get its talent
  • CHiring through campus
  • DExternal consultant hiring
View solution
Correct Option: B
Acquisition for *talent*, not just products — common in tech.
Q 17ProcessMedium

Arrange HR lifecycle steps in order: (i) Selection (ii) Training (iii) Recruitment (iv) HR planning (v) Performance appraisal

  • A(iv), (iii), (i), (ii), (v)
  • B(iii), (iv), (i), (ii), (v)
  • C(iv), (i), (iii), (v), (ii)
  • D(ii), (iii), (iv), (i), (v)
View solution
Correct Option: A
HRP → Recruit → Select → Train → Appraise.
Q 18FunctionsMedium

Which is **not** a managerial function of HRM?

  • APlanning
  • BOrganising
  • CProcurement
  • DControlling
View solution
Correct Option: C
**Procurement** is an operative function; planning/organising/directing/controlling are managerial.
Q 19FlippoMedium

"Recruitment is the process of searching for prospective employees and stimulating them to apply" is by:

  • AEdwin B. Flippo
  • BDrucker
  • CMayo
  • DArmstrong
View solution
Correct Option: A
**E.B. Flippo** classic definition.
Q 20SuccessionMedium

Succession planning primarily focuses on:

  • AHiring fresh graduates
  • BIdentifying and developing internal talent for key positions
  • CPension benefits
  • DLayoff plans
View solution
Correct Option: B
Building a talent pipeline for critical roles.

54.11 Quick Recall

ImportantQuick recall
  • HRM (Armstrong) — strategic, integrated; vs PM — administrative.
  • Functions: Managerial (PODC) + Operative (Procurement, Development, Compensation, Maintenance, Integration, Separation).
  • HRP (Vetter) — forecast demand and supply; 6 steps.
  • Job analysis → Job description (duties) + Job specification (person requirements).
  • Recruitment (Flippo) — positive (attract); Selection — negative (reject).
  • Sources: Internal (promotion, transfer, referral) vs External (campus, portals, agencies, walk-in, acqui-hiring).
  • Selection steps: screening → application → tests → interview → references → medical → offer → induction.
  • T&D: Training (short, technical, operative) vs Development (long, conceptual, executive). Methods: OJT (apprenticeship, coaching, rotation) vs Off-job (lecture, case, simulation, vestibule, e-learning).
  • Kirkpatrick (1959) — 4-level eval: Reaction, Learning, Behaviour, Results.
  • Succession planning — identify high-potentials; 9-Box Grid (performance × potential).