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HR Compendium
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TABLE OF CONTENTS

1) Core HR 3-17
A. Employee Engagement 4
B. Employee Value Proposition 4
C. Human Resource Planning 5
D. Compensation and Benefits 5
E. Recruitment and Selection 6
F. Separation 13
G. Training and Development 13
H. Training Evaluation Models 15
I. Performance Management 15
J. 360 degree feedback system 16
K. Errors to Avoid in Performance Evaluation 16
L. HR Analytics 17

2) HR Trends 18-30
A. Gig Economy 18
B. HR Tech at Play 19
C. Focus on Commitment 20
D. Redefining HR 20
E. The call for 4-day work week 28
F. Work from home post-Covid and the rise of hybrid workplace 28
G. Rethinking HR practises and reinventing the employee experience 28
H. Moving towards a multigenerational workforce 29
I. Data Literacy and Analytical and Predictive HR 29
J. Possible widening of Gender Gap 30
K. Virtual CSR 30

3) Organisational Behaviour 31-40

A. Definition of Key Terms 31
B. Motivational Theories 36

4) Interview FAQs 41
5) Interview Tips 42
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Core HR
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Human Resources is a term used to cover a broad spectrum of activities. The job of an HR
professional generally includes the following:
● Hiring and firing employees
● Creating organisational charts
● Shaping corporate culture after a merger or acquisition
● Managing communication with the employees
● Settling employee disputes
● Creating benefit programs
● Navigating government regulations and dealing with legal issues such as sexual
harassment and occupational safety
● Setting up policy and programs for measuring performance
● Compensating, recognizing, and training employees
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Thus, HR refers to all the activities related to an effective employer-employee relationship.

The doors of HR are open for both specialists and generalists. In HR, there is something for
just about everyone.
The responsibilities of an HR practitioner vary from organisation to organisation,
depending on the organisational size. In a smaller organisation, the HR professional will
usually wear many hats, while there would be both specialist and generalist roles in the
larger organisations. As an example, Fortune 500 companies divide HR into corporate and
field operations, with those on the corporate side setting policy and those in the field
working with divisions to implement programs and handle day-to-day issues. Many small
and mid-sized organisations, usually those with employee strength below 1,000, outsource
some or even all the HR functions. A few responsibilities that fall to HR in both small and
large organisations, such as staffing and executive recruitment, compensation and benefits
consulting, and HR systems, have grown into multibillion-dollar service sectors designed to
support in-house HR functions.
Thus, HR professionals act as mediators between an organisation’s management and
workers. They have to ensure a safe working environment, effective settlement of all
disputes and a clear understanding of benefits and an effective administration of the same.
HR is also concerned with recruiting new employees who fit in the organisation both
personally and professionally and help the company achieve its goals. They also represent
management when negotiating for benefits with companies administering these benefits
and implementing company-wide policies that will ultimately lower costs or boost profits.
The needs of HR cover a wide range of tasks and, therefore, require individuals who are
good with people in addition to being organised, analytical, business-minded, and heroic
multitaskers.

Employee Engagement
A heightened emotional connection that an employee feels for his or her organisation that
influences him or her to exert greater discretionary effort to his/her work.

Employee Value Proposition

The job markets are often very dynamic with a lot of to and fro movements of employees
between organisations. In such an environment, it is imperative for organisations to hold
on to their top performers. This is where Employee Value Proposition comes into play. EVP
encompasses everything an employer is doing to attract and retain employees. It includes
all of the pay, benefits, rewards, and perks that come with being an employee of that
organisation. Basically, it is the reason why an employee would want to work there as
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opposed to finding employment somewhere else. Some major tools used by organisations
to accentuate their EVP practices are:
● Future career opportunities
● Compensation Development opportunities
● Organisational growth
● Organisational stability rate
● Job interest alignment
● Work life balance
● Innovation Recognition & Respect

Human Resource Planning

Human Resources Planning / Manpower Planning aims at:
● Balancing demand, supply, distribution, and allocation of manpower.
● Controlling cost of human resources Formulating policies on transfer, succession,
and relocation of manpower.
● It is about balancing the supply and demand of people at every level of the
organisation.
Supply generally refers to the number of people reaching a particular level in the
organisation.
Demand is generally given by departmental heads - the number of people required to do a
particular job.
1. Supply > Demand: Retrenchment, VRS, Outplacement assistance (help people to get
placed in other companies)
2. Supply = Demand: Ensure HR practices are good enough to retain the talent
3. Supply < Demand: Check if the shortage is qualitative or quantitative
➔ If the shortage is qualitative: Provide training, transfer appropriate people,
reposition the staff
➔ If shortage is quantitative but small: Improve the productivity through technology,
incentives If shortage is quantitative but large: Hire more people from the labour
market

Compensation and Benefits

Compensation and Benefits Compensation, quite simply put, is the sum total of direct and
indirect rewards and benefits (monetary or otherwise) provided to an employee in return
for service provided to the organisation. Some of the components in compensation are:
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Base Compensation: Includes Basic pay (Pay is that decided for a position in an
organisation rather than an individual)
Allowances: Given as cash directly. This is a component of pay given based on the
conditions in which we work. Examples: Hardship Allowance for working in remote villages,
Travel allowance for salesmen etc.
Benefits: Employees feel the benefit of this part of pay, as cash is given for a particular
purpose. It is aimed at directing a particular behaviour from the employees. Example: PF,
Gratuity etc.
Variable Pay: Compensation Contingent on performance organisational parameters like
Sales, productivity etc.

Recruitment and Selection

RECRUITMENT
Recruitment is the process of:
● identifying the need for a job
● defining the requirements of the position and the job holder
● advertising the position and
● choosing the most appropriate person for the job.
“Recruitment” as a process is exploratory in nature as it involves finding and hiring the best
possible talent for a job vacancy, in a timely and cost-effective manner. Recruitment is a
positive process of searching for prospective employees and stimulating them to apply for
jobs in the organisation.

FACTORS INFLUENCING RECRUITMENT

a) Size of the organisation: Larger organisations will have a more complex and structured
Process as compared to a small or medium enterprise.
b) Current employment conditions in the economy: This would affect the availability of
talent Within the market and also determine the skills levels.
c) Salary structure of the organisation: This factor adds to the attractiveness of the job,
and Also, if simple to understand, it generates more interest in the pool of applicants.
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d) Working culture within the organisation: When deciding on a new candidate, it is not
only important to see the person's job fit but also to identify the person's organisation fit,
otherwise the task cannot be performed successfully.
e) The growth rate of the organisation: If the organisation can promise speedy growth to
its Employees, it will attract similar kinds of people who are risk-takers, self-starters and
want accelerated growth.
f) Image of the Organization: In today’s world the quality of applicants an organisation
Possesses, a large part of it is a result of the brand that it has been able to create as an
employer.

IMPORTANCE OF EFFECTIVE RECRUITMENT AND SELECTION PROCESS

The entire process of recruitment and selection requires huge investment in terms of
money, effort and time. Hence any ineffectiveness on the part of the recruiter will result in
losses for the company in monetary terms
● The reputation of the organisation is at stake: When recruitment is done effectively
it gives rise to a domino effect. The new hire would work well, and employees see
the process to be efficient, productivity rises and thus would affect the quality of the
products and services in a positive manner.
● The recruitment and selection process aim at ensuring the quality is maintained in
both short term and long term. If a decision is made keeping in mind only the
short-term strategy but does not echo well with the long-term business needs, there
is a degrading effect on the quality of manpower within the organisation.
● The process helps the organisation to remain relevant and competitive. With
increased amounts of automation creeping into every industry, a skilled workforce is
becoming a rare commodity. There is immense competition in the talent market,
and thus an effective recruitment process will help us in churning out the best talent
for our organisation.

THE RECRUITMENT YIELD PYRAMID

The recruitment yield pyramid shows the historical arithmetic relationship between leads
and invitees, invitees and interviews , interviews and offers made and offers made and
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offers accepted.

RECRUITMENT EFFECTIVENESS
Recruiting metrics are measurements used to track hiring success and optimise the
process of hiring candidates for an organisation. When used correctly, these metrics help
to evaluate the recruiting process and whether the company is hiring the right people.
Following are the matrices usually used by the companies:
1. Time to fill: It is one of the most common recruitment statistics companies monitor to
determine the effectiveness of their recruiting process. This metric can be tracked in
various ways such as time from search kickoff to accepted offer or hours spent on each
requisition. Time to fill is great for uncovering inefficiencies and delays in the interview
process.
2. Quality of Hire: Identifying talent quickly (time to fill) is just one piece of the puzzle.
Assessing the quality of hire is equally (if not more) important when determining the
success of your recruitment process. However, this metric can be tricky to measure, as it is
largely based on subjective feedback. Use a survey to measure hiring manager satisfaction
or look at the retention rates of your new hires overtime to get a glimpse into the quality of
hire.
3. Source of Hire: Source of hire is a great metric to help you determine what resources
provide the highest ROI and deserve your dollar. Where are your top performers coming
from? How did they learn about your employment? Opportunities? Knowing where to
source and post your jobs will help you accurately target the right audiences quicker.
4. Cost per Hire: Measuring cost per hire can help you assess the financial investment your
company is making to attract and hire new talent. There are different methods used to
calculate cost per hire. Choose the one that best fits your current process and business
goals.
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5. Applicant Satisfaction: When assessing recruitment, we often only think of how our
business is impacted directly. What about the new hire? How was her experience from
resume submission to signed offer letter? Administering a survey for new hires geared
toward applicant satisfaction will provide invaluable insight into candidate experience and
help you make adjustments. Administer the survey within the new hire’s first 30 days while
her experience is still fresh in mind.

RECRUITMENT TOOLS
1. Applicant Tracking Systems (ATS): The lowdown ATSs were among the first pieces of
online recruitment technology that emerged in the 1990s. Early systems did little more
than track incoming CVs, but in recent years they have expanded their functionality into
areas such as skills-matching, CV parsing and job posting to multiple channels, including
social media. As talent management research and advisory firm Bersin by Deloitte
underlines, today’s ATSs are “integration platforms” that connect to other tools and services
used in the recruitment process.
How will it impact the way you work?
Although they have always been a core technology for HR departments, the new
generation of ATSs can help bring many recruitment functions into a central place, further
streamlining practices. One is TribePad, which describes itself as a “social” ATS and whose
users can advertise their jobs anywhere on the web. It features intelligent skills matching
based on semantic technology and provides built-in real-time analytics to evaluate what
channels perform best. Importantly, the product allows hirers to create specific
communities based on skills and location so they can more easily communicate and engage
with those candidates on the system. Recruitment and HR departments need to extract
maximum value from their ATSs, not just when looking for talent but to capitalise on the
talent that already resides in the system.

2. Mobile Recruiting Tools: The lowdown Mobile internet and recruitment has had many
false starts, but record sales of powerful smartphones and tablets are likely to result in
mobile usage leapfrogging desktop browsing for the first time this year. It has pushed
mobile recruiting to the forefront and is predicted to become the key channel for hiring.
How will it impact the way you work?
Mobile takes recruitment into an entirely new space. While, in theory, it is one familiar to
many of us, employers must be aware it marks a significant shift in how they communicate,
engage with and recruit talent. Understanding how candidates behave in the mobile
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environment and making sure it rivals the quality of the full desktop will be crucial. Mobile
recruiting tools can be broken down into four main areas: QR (quick response) codes, text
alerts, apps and mobile-optimised websites. But often it is the latter that is neglected, with
many corporate career sites failing to offer candidates any customised mobile experience.

3. Gamification: According to Gartner, gamification is the broad trend of applying game

mechanics to nongame environments, such as recruitment, to motivate people or change
behaviour. The analyst forecasts that it is positioned to become a “highly significant trend”
over the next five years and that, by next year, more than 70% of global 2,000 organisations
will have at least one gamified application.
How will it impact the way you work?
Gamification has the power to deliver significant efficiencies at the front end of the
recruitment process both as an attraction and an engagement tool as well as a means to
quickly identify people with the correct skills for a particular role. It can also be used to
better connect, communicate and build relationships with candidates in the talent pool.

4. Collaborative tools: Despite the vast potential of enterprise social networks such as
Yammer and Jive to share and exchange information and interact, take-up in the UK is
limited. Jon Ingham, HR blogger and executive consultant at Strategic Dynamics
Consultancy Services, suggests that there is a tendency for collaborative tools to be used by
recruiters for conversation but not for collaboration.
How will it impact the way you work?
Such networks can help integrate HR and recruitment with the rest of the organisation and
eliminate the silo approach that can hamper effective recruitment. Ingham suggests one
application could be for recruiters to scope out a personalised role that an individual could
play in an organisation, particularly if they have been identified as a top-level talent.

5. Video interviewing: The lowdown level of development has so far exceeded HR and
recruitment appetite to use the tools available. But this may be changing: a survey this year
by specialist recruitment consultancy OfficeTeam UK found 41% of HR directors had
increased their use of video- conferencing to conduct interviews compared with 2010.
How will it impact the way you work?
Video interviewing can pick up on subtle emotional clues and body language. Although this
should not replace face-to-face interviews, its speed and convenience allow more
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candidates to be seen close-up, together with something of the personality, in the early
stages of the recruitment process.

6. Internet sourcing: The lowdown at the most sophisticated level, internet sourcing refers
to highly-skilled individuals deploying a range of advanced searching techniques to seek
out hard-to-find talent. On an everyday level, social and professional networks such as
LinkedIn, Twitter, Facebook, Beknown and XING have become the sourcing tools of the
trade for hiring professionals.
How will it impact the way you work?
The advent of LinkedIn and Facebook challenged conventional recruitment practices.
Suddenly, by performing keyword searches, in-house recruiters and HR departments could
gain access to the same candidate details previously held only by established recruitment
agencies.

SELECTION
Selection is the process of choosing the most appropriate candidate for the vacant position
in the organisation. In other words, the selection is an eliminating process wherein we
weed out unsuitable applicants.
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Separation
Three R:
1. Retirement: As per the contract of employment between the employer and
employee - reaching the age of superannuation and there by termination of his
service.
2. Resignation: Employee voluntarily opting out of service.
3. Retrenchment: (All ways of termination of service) except VRS, Retirement,
termination due to nonrenewal of contract or due to ill health. Has to be carried out
as per ID Act.

Three D:
1. Dismissal: Removal of employee with a stigma attached.
2. Discharge: Removal of employee without a stigma attached. (For eg. Removal of
employee due to ill health)
3. Death

Cost of Separation
Organisations, at times, need to remove or separate with some employees for a number of
possible reasons. At all such instances, the following costs are associated with the same:
● Recruitment Costs
● Selection Cost
● Training Costs
● Separation Costs

Training and Development

Human Resource Development (HRD) is the framework for helping employees develop
their personal and organisational skills, knowledge, and abilities. It comprises a wide range
of organisational practices that focus on:
● Training and Development
● Career Development
● Organisation Development
● Organisational Knowledge and Learning
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Training Evaluation Models:

➔ Kirkpatrick Four-Level Framework
➔ Kaufman Five Levels Model
➔ CIRO Model (Warr, Bird, & Rackham)
➔ Phillips ROI Process Model
➔ Anderson Model of Learning Evaluation
➔ The Brinkerhoff Model
https://kodosurvey.com/blog/training-evaluations-models-complete-guide

Performance Management
Performance management is a process by which managers and employees work together
to plan, monitor and review an employee’s work objectives and overall contribution to the
organisation. More than just an annual performance review, performance management is
the continuous process of setting objectives, assessing progress and providing on-going
coaching and feedback to ensure that employees are meeting their objectives and career
goals.

1. Absolute Evaluation
Performance expectations are communicated to employee in form of targets/ goals
Appraisal hinges on the gap between the actual performance and the pre-set goal
Problem: Where performance is not objectively defined, may result in majority being rated
very high, and hence financial implication is high if ratings are tied to bonus pay- outs.

2. Relative Evaluation
Employee’s performance is assessed relative to other employees holding comparable
responsibilities. Supervisors are forced to rank a certain percentage as poor performers.
Typical methods: Normal (or bell) curve, percentile-wise gradation etc.
Problem: Works fine as a one-time measure; repeated use results in good performers
leaving the organisation as someone is forced to be average even if his/her performance
was good.
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360 -degree Feedback System

It is a system or process in which employees receive confidential, anonymous feedback
from the people who work around them, including managers, peers, and direct reports.
These people fill out an anonymous online feedback form that asks questions covering a
broad range of workplace competencies that are measured on a rating scale. The person
receiving feedback also fills out a self rating survey that includes the same survey questions
that others receive in their forms.
Drawbacks
● Breakdown in chain of command
● Emergence of ‘mutual admiration’ clubs
● Defensiveness in the face of negative feedback
● Misuse of anonymity to ‘hit out’ against individuals
● Difficulty in preserving confidentiality in small groups

Errors to avoid in Performance Evaluation

First Impression (primacy effect): Raters form an overall impression about the employee
being rated on the basis of some particular characteristics of the employee identified by
them. The identified qualities and features may not provide an adequate base for
appraisal.
Halo Effect: The individual’s performance is completely appraised on the basis of a
perceived positive quality, feature or trait. In other words, this is the tendency to rate a
man uniformly high or low in other traits if he is extraordinarily high or low in one
particular trait. If a worker has few absences, his supervisor might give him a high rating in
all other areas of work.
Horn Effect: The individual’s performance is completely appraised on the basis of a
negative quality or feature perceived. This results In an overall lower rating than may be
warranted. “He is not formally dressed up in the office. He may be casual at work too!”.
Excessive Stiffness or Lenience: Depending upon the rater's own standards, values and
physical and mental makeup at the time of appraisal, ratees may be rated very strictly or
leniently. Some of the managers are likely to take the line of least resistance and rate
people high, whereas others, by nature, believe in the tyranny of exact assessment,
considering more particularly the drawbacks of the individual and thus making the
assessment excessively severe. The leniency error can render a system ineffective. If
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everyone is to be rated high, the system has not done anything to differentiate among the
employees.
Central Tendency: Appraisers rate all employees as average performers. That is, it is an
attitude to rate people as neither high nor low and follow the middle path. For example, a
professor, with a view to play it safe, might give a class grade near the equal to B,
regardless of the differences in individual performances.
Personal Biases: The way a supervisor feels about each of the individuals working under
him - whether he likes or dislikes them - as a tremendous effect on the rating of their
performances. Personal Bias can stem from various sources as a result of information
obtained from colleagues, considerations of faith and thinking, social and family
background and so on.
Spillover Effect: The present performance is evaluated much on the basis of past
performance. “The person who was a good performer in the distant past is assured to be
okay at present also”.
Recency Effect: Rating is influenced by the most recent behaviour ignoring the commonly
demonstrated behaviours during the entire appraisal period.

HR Analytics
Human resources analytics, also called talent analytics, is the application of sophisticated
data mining and business analytics (BA) techniques to human resources (HR) data. Google
is the pioneer in this field. From recruitment to policies, Google uses a lot of analytics in HR
decision making. HR analytics is an upcoming field. The biggest challenge faced by
companies right now with respect to analytics is data management.
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HR Trends
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Gig Economy
A gig economy is a free market system in which temporary positions are common &
organisations contract with independent workers for short-term engagements. The short
tenures and multiple employers (often at the same time) differentiates gig workers from
the traditional full-time workers who rarely change positions and instead focus on a
lifetime career.
The gig economy is not new – people have always worked gigs… but today when most people
refer to the “gig economy,” they’re specifically talking about new technology-enabled kinds of
work.”
- Molly Turner, Lecturer, University of California

With increased digitalization we are living in an age where the gig economy has found a
new dimension owing to the exponential rise of mobile phones and subsequent opening of
several avenues to avail the service of gig workers by the public in general, and not just in
industries known for their historical use. Thus, providing these gig workers online platforms
and resulting in the rise of what is commonly known as “platform economy”.

Advantages of gig economy:

● Empowering workers to work with freedom and flexibility as opposed to traditional
jobs
● Convenience of selecting temporary jobs and projects around the world
● Employers can select the best individuals for specific projects from a larger pool
● Businesses save resources in terms of benefits, office space and training.
● Ability to contract with high-priced experts for specific projects
Disadvantages of gig economy:
● Lack of well-defined employer-employee relationships
● Lack of continuity and stability work and hence income insecurity
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● The flexibility of working gigs can disrupt work-life balance Lack of employee
benefits, social security etc.
● Not protected by law as worker/workmen in many countries
Global Perspective on status of gig workers:
1. USA: In California legislators approved a landmark bill that requires Uber and Lyft
and similar companies to treat contract workers as employees. In other states they
are still not recognised as employees, rather independent contractors
2. UK: In a landmark case of “Aslam vs Uber BV”, the Central London Employment
tribunal gave the verdict that Uber drivers are "workers", rather than self-employed
individuals and should get the minimum wage under the National Minimum Wage
Act 1998, paid holiday, and other normal employee benefits.
3. Australia: Though Uber drivers in Australia are recognised as formal employees,
they are required to have an Australian Business Number and pay Goods and
Services Tax.
4. India: The platform economy in India grew because of a two-pronged demand – the
public demand for the services offered, and unemployed (and sometimes retired)
individuals looking for a job that will have flexible prerequisites and quick pay. But
they are not recognised as workers/workmen legally and thus cannot form trade
unions or raise industrial disputes. Mostly they are looked at as independent
contractors or partners. Workers often find they must work 14-16 hours a day to
make living wages, and no considerations are made for environmental conditions
like rain, storms etc. The workers are therefore forced to often work in hazardous
conditions, with no concept of accident coverage in their name. The principal
employer holds no responsibility towards providing a PF. The Code on Social
Security has been India’s largest effort towards the welfare of gig workers and all
informal workers in general. Though it proposes to introduce schemes that will
support the informal workers, while it does not state anything regarding the
inclusion of these workers in the workmen category which could lead to much
greater benefits for them.

HR Tech at play
We have been seeing development in technology such as big data analytics, artificial
intelligence, machine learning, internet of things, bots, augmented reality and similar such
digitization possibilities. Has HR been able to use any of these tools while attracting talent,
assessing their potential and evaluating their fitment? Have we started predicting retention
of the key staff, developing insights from the talent market and fine-tuning talent attraction
strategy based on these insights?
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Scores of administrative tasks are getting automated. Shouldn’t an organisation use HR

Tech to schedule interviews with candidates, hold video interactions for screening, enable
them to transact and communicate with the organisation? Similarly, for learning,
development and other talent management practices, there is a score of possibilities for
the HR team to spend their energies in carrying out strategic tasks and automate
administrative or operational tasks. Traditional Applicant Tracking System (ATS) is passé
now because it largely focuses on keeping records of the past events. Our world of mobility
and apps has made all of us – candidates, as well as the folks working in the organisation,
take actions when prompted to do so. We must make our systems keep up with the current
time and appeal to all stakeholders of the business. We can strengthen employer branding
by leveraging social media and various professional networks. The way we communicate
with passive candidates and build a talent pipeline can be transformed using technology.
2019 offers many possibilities of HR Tech and organisations would take advantage of new
technology.

Focus on Commitment
Globally, senior leaders have been paying attention to rewards and recognition, learning
and development, employee benefits, health, and wellness. In spite of the huge investment
of time, money and efforts, employee engagement scores are moderate at the best.
Organisations have been wondering how they can win the commitment of their employees
and occupy a prominent place in their hearts. Leaders know, the feeling in the employee’s
heart towards the organisation determines productivity and retention.
Given the economic scenario that we face today, the social norms around us and the rise of
millennials in the workforce, leaders have to actively participate in building the culture of
agility, genuineness, transparency, and collaboration at their workplace. The life
experiences of the leaders and the younger people are hugely different. Hence, the senior
people need to understand, the things valued by their younger colleagues are different
from what they valued in their youth. They will need to learn to appreciate the current
situation and free themselves from the baggage of their experience. Soft power needs to
be the main agenda of leadership development in the year. Right from the first line
supervisors to the senior team, winning the team’s commitment is going to be the key
focus in 2019.

Redefining HR
Like operations, HR in many organisations has predominantly become a bunch of activities.
Through the lifecycle of an employee, there is a need to engage, develop and leverage
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human capability. Practically speaking, most of these are to be carried out by the line
managers. They need to play fair in the team, identify and recognize the talent of the team
members, build and nurture a relationship with each team member. All of these are the
most important HR functions! HR must enable the line managers in engaging and
developing the team members. They must help managers define performance goals,
recognize superior performances and develop capability of their team members. They
must build an employer brand and strengthen it further. Most HR teams today spend a lot
of their time in administrative tasks of recruitment, attendance and leave management,
salary hikes, employee query handling, salaries, and incentives. They must outsource these
low value-adding tasks to competent third-party experts who will not only carry out these
tasks efficiently but also bring their insights to the system and improve them further.
Statutory Employee Benefits
1. Minimum Wages
2. Social Security Benefits
3. Maternity Benefits
4. Leaves

1. Minimum Wages
Complexities in Minimum Wage System in India
In 2019 nearly 429 scheduled employments and 1,915 scheduled job categories for
unskilled workers for which MW are fixed. Scheduled employment (SE) categories vary
between the states (agriculture is the only constant) – for e.g. automobile engineering
workshops figure in some states in others automobile repair workshops (and then Zonal
variations).
For the same Sch. Emp. MW varies between states.
In many states MW is linked to cost of living index since 1989 but in others not The range
between the lowest and highest of MW varies erratically across the states - The range
(difference between highest and lowest minimum wages) in each state varies from ₹16 in
Nagaland to ₹905 in Kerala (Economic Survey 2018-19).
MW Act coverage is limited by the notification of SE – for domestic workers have been
notified only in 18 states and UT Erratic revisions of MW (though cost of living component
gets revised twice in an year, if linked).

Norms to Determine Minimum in New Wage Code 2019

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S. 6 (6) For the purpose of fixation of minimum rate of wages under this section, the
appropriate Government: (a) shall primarily take into account the skill of workers required
for working under the categories of unskilled, skilled, semi-skilled and highly-skilled or
geographical area or both; and (b) may, in addition to such minimum rate of wages for
certain category of workers, take into account their arduousness of work like temperature
or humidity normally difficult to bear, hazardous occupations or processes or underground
work as may be prescribed by that Government; and (c) the norms of such fixation of
minimum rate of wages shall be such as may be prescribed.
Wages are also proposed to be determined by state level advisory boards, something that
Indian industry has long wanted. This would lead to a race to the bottom as different states
would compete to attract investments by lowering wages – an observation that is borne out
by facts on the ground.
Differential wages will lead to distress migration (from lower to higher MW) – standardized
MW is preferable. Reports have revealed that in the period between 2010 and 2015, several
industrialists relocated from Okhla Industrial Area in Delhi to Uttar Pradesh & Haryana as
the latter offered 25- 35% lower minimum wages than Delhi. Flight of capital would become
extremely convenient in such a regime, pushing state governments to compromise on
worker’s wages and welfare.

LABOUR CODES
An Overview
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CODE ON WAGES
Definition of Wages
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2. Social Security Benefits

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3. Workforce Categorization

We believe that the workforce can be bucketed in the following categories based on the
provisions of labour codes:

4. Maternity Benefit

Highlights of the Wage Code

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5. Leaves
Factories Act (Sec 78-82)
The Factories Act has provided annual/earned leave of 12 working days for all the workers
who have worked at least 240 days in a year. However, the duration of earned/annual leave
differs for the adult and young workers. An adult worker is entitled to one day of earned
leave for every 20 days of service while a young worker (under the age of 15 years) is
entitled to one day of earned leave for every 15 days of service.
Workers are paid their usual daily wage rates for the days of earned leave. A worker is paid
his full daily wages during the term of annual leave. Daily wages are the average of his total
full time earnings for the day on which he actually worked during the months immediately
preceding his leave, exclusive of any overtime and bonus but inclusive of dearness
allowance and the cash equivalent of advantage accruing through the concessional sale to
the worker of food grains and other articles. If a worker takes four or more days' leave at a
time, his wages are paid before the leave begins. A worker may take all or portion of annual
leave provided that he/she notifies the employer in writing at least 15 days prior to the date
of availing annual leave and such request may not be refused unless it contradicts with the
scheme of leave already agreed.
Annual leave may be carried over however no more than 30 days can be carried over to the
next year.
Shops & Establishment Act
Employees are entitled to a certain number of days of leave per year aside from the
holidays and days off.
Generally, three types of leave are mentioned under the Shops and Establishments Act i.e.
Privilege leave, Sick leave and Casual leave. This varies from state to state. So, the number
of leaves entitled to an employee depends upon the state in which the establishment is
located. The leave policy of an establishment should be in consonance with the leave
provision of the respective state’s Shops and Establishments Act. The said leave policy
cannot be less beneficial than that mentioned by the respective state’s Shops and
Establishments Act.
Earned leave / Privilege leave
These are the additional leave of absence awarded to an employee with wages for the day’s
work performed by him for a specific number of days as prescribed under the Shops and
Establishments Act. The condition to avail the Earned / Privilege leave may differ in every
establishment.
Casual Leave
 28

The Casual Leave is granted for an unanticipated event or when an employee is unable to
attend the office for a day or two due to any personal exigency.
Sick leave
An employee is entitled to avail Sick leave in case of sickness. During Sick leave, wages are
paid to the employees when they are out of work due to illness.

Effect of Covid on HR practices - Additional Readings

https://www.bcg.com/en-in/publications/2020/seven-people-priorities-in-reponse-to-covid
https://www.mckinsey.com/business-functions/organization/our-insights/hr-says-talent-is-c
rucial-for-performance-and-the-pandemic-proves-it

The Call for 4-day Work Week

When Microsoft workers in Japan participated in a four-day workweek trial, their
productivity increased by 40% given that employees earned the same amount. A 4-day
work week does not mean the same work to be squeezed in fewer hours of time. In its
most evolved form, an employee will be paid the same amount despite clocking fewer
hours every week. Several studies have shown both workplace productivity, and employee
satisfaction goes up considerably under a more compressed schedule.
COVID-19 has made managers think about work differently. Several top executives,
including Google co-founder Larry Page, have been in favour of the four-day workweek.

Work from Home post-Covid and the rise of the Hybrid workplace
Companies such as Twitter, Square, Cars24 have announced making work from home a
permanent work policy. Companies such as Microsoft have adopted plans to allow more
flexibility in working from home for teams and individuals that desire it. The new hybrid
workplace goes hand in hand with adjustments and new collaboration norms with a more
pronounced emphasis on videoconferencing. It also means newer ways in which
companies look for talent and engage with employees.

Rethinking HR practices and reinventing the employee experience

Recruiting, Onboarding, Performance management, and even firing decisions may now
 29

need to be achieved through simulated virtual experiences as opposed to being done in

person. A good onboarding experience is critical to influencing a new hire’s decision to stay
with the organization, which makes getting digital onboarding right even more important.
With remote working becoming the norm of the day, the traditional incentives like
promotion parties, deal- closing dinners became redundant. Nevertheless, employers have
come up with new ways of rewards and positive reinforcements to keep the spirits of
employees high despite working in total solitude. This shift has been a global trend.
Software Delivery Platform, Harness, sent Gift Boxes containing a blanket, mat, water
bottle, tie-dye kit, snacks, sunscreen to compensate for the company-wide picnic that was
canceled due to the pandemic.
To help ease some of the childcare pressures working parents face, business software firm
UKG provided a virtual summer camp and is offering a kids club for after school hours this
fall. Yet another example is of various organizations having online wine and cheese tasting
ceremonies to ring in their employees’ success; the supplies being sent to the homes of all
the colleagues.

Moving towards a Multigenerational Workforce

The previous emphasis on using generations to segment the workforce has now shifted
towards workforce strategies and programmes targeted toward workers’ individual
attributes. Careers have become more dynamic and complex, loosening the historic
correlation between age and career progression. The workforce is too diverse to be able to
anchor any specific policies targeting a specific generation.

Data literacy and analytics & Predictive HR

HR Managers need to have a strong business acumen to be able to contribute to the
company’s bottom line. It is predictive data analytics that will help make better hiring
decisions by predicting candidate success or preventing talent from quitting their job. Just
as HR managers will need to upskill themselves to apply digital tools better, learning and
development for the workforce too will play an essential role in the success of
organizations. Careful curation of the right training programmes to fix the skill gaps due to
digitization and an ageing workforce (more critical in some country demographics than
others) is the need of the hour.
Peer coaching and mentoring will no longer be the same, so HR will need to innovate new
ways to adapt to a virtual interface. Despite people analytics team tracking data. It’s the HR
Business Partners who often struggle to leverage data and people analytics insights to
make change happen. HRBPs should be taught to read, understand, and communicate
data as information for this to be solved.
 30

Possible widening of the gender-wage gap

Many organizations have been compelled to let go of some of their workforce. Not all
employees will eventually return to work at the workplace, and those who return to the
workplace are more likely to get higher raises and promotions than those who continue to
work from home. Women are more likely to remain work from home, increasing the
dangers of widening the wage gap. HR policies may need to be evolved to address this. In
the Indian context, companies may want to Relook the Pay mix and pay package
composition in view of the new labour codes and the new realities of working from home.

Virtual CSR
Photo company Magnum now hosts a virtual art exhibition on its Instagram channel and
website, with works portraying joy-filled city streets post lockdown. Virtual visitors can
make donations too and download an original digital artwork as a visual reminder of their
contribution. As countries moved into lockdown, the Knorr team offered store-cupboard
recipes to meet tighter budgets and easy tips for creating restaurant-like meals at home.
Corporate Social responsibility has become more important despite the tightening budgets,
with opportunities for corporates to contribute monetarily to NGOs or public good with
new innovative ways to give back to society.
 31

Organisational Behaviour
─

Definition of key terms

Organisation
A consciously organised social unit, composed of 2 or more people, which functions on a
continuous basis to achieve a common set of goals.
Culture
A culture of a group can be defined as a pattern of shared basic assumptions that was
learned by a group as it solved its problems of external adaptation and internal integration,
that has worked well enough to be considered valid and therefore, to be taught to new
members as the correct way to perceive, think and feel in relation to those problems.
Culture is found in:
Basic Assumptions: Underlying (often unconscious) determinants of organisation’s
attitudes, thought process and actions.
Espoused Values: Those values championed by the company’s leadership
Observable Artefacts: Architectural & Physical surroundings, stories in the organisation,
rituals etc.
Job Satisfaction
A positive feeling about one’s job after analysing its characteristics.
It is often measured in two ways, either by asking a single global rating question like are
you satisfied with your job, or by identifying key elements in a job and then asking for a
rating for those individual items.
Job Involvement
Degree to which an employee identifies with the job, actively participates in it and
considers performance important to self-worth.
Organisational Commitment
The degree to which an employee identifies with a particular organisation and wishes to
maintain his membership.
 32

Cognitive Dissonance
Any incompatibility between behaviour and attitude or in between two attitudes.
Perceived Organisational Support
The degree to which an employee feels that the organisation values his or her contribution
and cares about their well-being.
Employee Engagement
An employee’s involvement in, satisfaction with and enthusiasm for the work he does.
Emotions
Intense feelings that are directed at someone or something
Emotional Labour
A situation in which an employee expresses organizationally desired emotions during
interpersonal transactions. E.g. Air Hostess, customer care representative
Emotional Dissonance
Inconsistencies between emotions people feel and the emotions they project.
Affective Events Theory
A model that suggests that workplace events cause emotional reactions on the part of the
employees, which then influences workplace attitudes and behaviours.
Emotional Intelligence
Daniel Goleman's emotional intelligence theory outlines five components of EQ:
1. self-awareness,
2. self-regulation,
3. motivation,
4. empathy, and
5. social skills.
Emotional intelligence can be applied to meet goals and targets, as well as create a happier
and healthier working culture.
Personality
The sum total of the ways in which an individual reacts to and interacts with others.
 33

Myers-Briggs Type Indicator (MBTI)

The Myers–Briggs Type Indicator (MBTI) is an introspective self-report questionnaire
indicating differing psychological preferences in how people perceive the world and make
decisions. The following are the four basic ways in which personalities differ:
1. Extraverted Vs Introverted
2. Sensing Vs Intuitive
3. Thinking Vs Feeling
4. Judging Vs Perceiving
Big Five Personality Model - 5 Dimensions (O.C.E.A.N Model)
The Big Five personality traits is a suggested taxonomy, or grouping, for personality traits,
developed from the 1980s onward in psychological trait theory. Starting in the 1990s, the
theory identified five factors by labels, for the US English speaking population, typically
referred to as- O.C.E.A.N Model
1. openness to experience (inventive/curious vs. consistent/cautious)
2. conscientiousness (efficient/organised vs. extravagant/careless)
3. extraversion (outgoing/energetic vs. solitary/reserved)
4. agreeableness (friendly/compassionate vs. critical/rational)
5. neuroticism (sensitive/nervous vs. resilient/confident)
Type A & Type B Personality
Type A Personality
● Very competitive and self-critical
● Strive toward goals without feeling a sense of joy in their efforts or accomplishments
● Experience a constant sense of urgency
● Quickly become impatient with delays and unproductive time
● Schedule commitments too tightly
● Try to do more than one thing at a time
● Easily aroused to anger or hostility
Type B personality
● More tolerant of others
● More relaxed than Type A individuals
● More reflective
● Experience lower levels of anxiety
● Display higher level of imagination & creativity

John Holland’s Person Job Fit

 34

John Holland talks about six types of personalities which are each suited for a particular
occupation and environment. The six types are as follows:

Perception
A process by which individuals organize and interpret their sensory impressions in order to
give meaning to the world. The way we perceive things determines our behaviour. The
factors which influence perception are the perceiver, situational factors and factors in the
target.
Fundamental Attribution Error
The tendency (of managers) to underestimate the influence of external factors and
overestimate internal factors when making judgments about the behaviour of others. For
Example, managers who will always blame the laziness of salespeople as being the primary
driver behind the lack of sales without recognizing that it might also have been a function
of poor market conditions.
Self-Serving Bias
Tendency to attribute positive outcomes to internal factors and put blame on external
factors for negative outcomes. This bias refers to people who like to hog all credit when the
going is good but the first ones to shift blame on externalities when the fortunes reverse.
Selective Perception
The tendency to selectively interpret what one sees on the basis of one’s interest,
background, experience etc. For example, a physicist always looks at everything through a
Physics perspective.

Halo/ Horn Effect

 35

Tendency to draw general impressions about an individual on the basis of a single

characteristic. It causes you to allow one trait, either good (halo) or bad (horns), to
overshadow other traits, behaviours, actions, or beliefs. This is a potentially dangerous trait
because it can result in forming unnecessary preconceived notions about people without
knowing them or giving them a fair chance.
Contrast Effect
Evaluation of a person is affected by comparisons with someone else. For Example, a
performer who follows a brilliant performance will always be judged as a comparison to
that previous performance.
Stereotyping
Judging someone on the basis of one’s perception of the group to which he belongs. An
example of a stereotype would be ‘All blondes are dumb’.
Self-Fulfilling Prophecy- Pygmalion Effect.
A situation where a person inaccurately perceives another person, and then the resulting
expectations cause the second person to behave in ways consistent with original
perception.
Bounded Rationality
It is the process of making decisions by constructing overly simplified models that extract
the essential features from problems without capturing all their complexity.
Anchoring Bias
The tendency to fixate on initial information, from which one fails to adequately adjust to
new information. For Example, a lot of people might be anchored to the fact that Indo-Pak
relations are bad and will not be willing to accept or envisage an altered reality where that
may not be the case, thereby ensuring that the status quo of Indo-Pak rivalry continues.
Availability Bias
The tendency of individuals to base their judgement based on information that is readily
available.
Confirmation Bias
The tendency to stick to choices made in the past and then seeking information that
reaffirms them, and not giving importance to contradictory evidence. Example, I believe
that drinking is good for health, so I will only seek out those research journals and papers
which reaffirm the same.
Escalation of Commitment
 36

An increased stubborn commitment to a previous decision in spite of negative information.

Example: when you realise too deep into an argument that you are wrong but you feel it’s
too late to back track so you go along with it anyway.
Randomness Error
Tendency to think that they can predict outcomes of random events.
Hindsight Bias
The tendency to falsely believe, after the outcome of an event is actually known, that one
would have accurately predicted that outcome. Example, looking back at the recently
concluded football World Cup, one can say that France was always the obvious choice to
win it.

Motivational Theories
Maslow's hierarchy of needs
Maslow's hierarchy of needs is a motivational theory in psychology, comprising a five-tier
model of human needs, often depicted as hierarchical levels within a pyramid.
As per Maslow (1943, 1954), people are motivated to achieve certain needs and that some
needs take precedence over others. Our most basic need is for physical survival, and this
will be the first thing that motivates our behaviour. Once that level is fulfilled, the next level
up is what motivates us, and so on.
The model divides the needs into the following five categories (from the bottom-most tier
of the pyramid to the upper-most tier):
1. Physiological needs: There are the basic requirements for human survival. These
needs are the primary needs and all the other needs are secondary until these
needs are met. No human can function properly if these needs aren’t met.
2. Safety Needs: At the stage move up the tiers, the needs become more and more
complex. At this level, the needs for security and safety become primary. The need
for safety and security drives the behaviours at this level.
3. Social Needs: At this stage, the need for emotional relationships and belongingness
motivates human behaviours. It is important for people to feel loved and accepted
from others.
4. Esteem Needs: Maslow classified these needs into two categories:
a. Esteem for Oneself (Dignity, achievement, mastery and independence)
b. Desire for Reputation or respect from others (status, prestige)
 37

5. Self-actualization needs: This tier is categorised by the need for realising personal
potential, self-fulfilment, seeking personal growth and peak experiences. One tries
to achieve his true creative potential. to A desire “to become everything one is
capable of becoming”.
Maslow’s needs hierarchy can be diagrammatically represented as:

Deficiency Needs vs Growth needs

This five-stage model can also be divided into deficiency needs and growth needs. The first
four levels are often referred to as deficiency needs (D-needs), and the top-level is known
as growth or being needs (B-needs).
Deficiency needs arise due to deprivation and are said to motivate people when they are
unmet. Also, the motivation to fulfil such needs will become stronger the longer the
duration they are denied. For example, the longer a person goes without food, the hungrier
they will become.
 38

Maslow (1943) initially stated that individuals must satisfy lower-level deficit needs before
progressing on to meet higher level growth needs. However, he later clarified that
satisfaction of needs is not an “all-or-none” phenomenon, admitting that his earlier
statements may have given “the false impression that a need must be satisfied 100 per
cent before the next need emerges.”
When a deficit need has been 'more or less' satisfied, it will go away, and our activities
become habitually directed towards meeting the next set of needs that we have yet to
satisfy. These then become our salient needs. However, growth needs continue to be felt
and may even become stronger once they have been engaged.

Herzberg’s Motivation Theory

Herzberg’s Motivation Theory is known by several names, the most common ones being:
Two Factor Theory, Herzberg’s Motivation-Hygiene Theory, and Dual Structure Theory.
As per this theory, an organisation can adjust two factors to influence work-place
motivation. These factors are:
1. Motivators: These factors encourage employees to work harder. These are found
within the actual job itself.
2. Hygiene Factors: While these factors don’t directly motivate employees to work
harder, absence of them would demotivate employees. These factors surround the
job and are not present in the actual job itself.
As per the theory,
● Poor Hygiene factors decrease employee job satisfaction
● Motivating Factors increase employee job satisfaction
Thus, there are four states which an organisation finds itself in:
 39

The common criticisms of this theory are:

● The theory only applies to white-collar workers
● The theory is mainly focused on improving employee satisfaction. However, this
need not necessarily translate into increased productivity.
● There is no objective way to measure employee satisfaction within the theory.

Vroom's expectancy theory

Vroom's expectancy theory assumes that behaviour results from conscious choices among
alternatives. The purpose of an individual is to maximise pleasure and minimise pain.
Vroom's expectancy theory separates effort, performance and outcomes, while Maslow
and Herzberg focus on the relationship between internal needs and the resulting effort
used to fulfil them.
The theory suggests that although individuals may have different sets of goals, they can be
motivated if they believe that:
● There is a positive correlation between efforts and performance
 40

● The favourable performance will result in a desirable reward

● The reward will satisfy an important need
● The desire to satisfy the need is strong enough to make an effort worthwhile
Vroom realised that an employee's performance is based on individual factors such as
personality, skills, knowledge, experience and abilities. He stated that effort, performance
and motivation are linked in a person's motivation. He uses the variables Expectancy,
Instrumentality and Valence to account for this.
1.Expectancy:
This is the belief that increased effort will lead to increased performance, i.e., if I work
harder, then the performance will be better. It is affected by things such as:
● Having the right resources available (e.g., raw materials, time)
● Having the right skills to do the job
● Having the necessary support to get the job done (e.g., supervisor support, or
correct information on the job)
2. Instrumentality:
This is the belief that if you perform well, then, a valued outcome will be received. The
degree to which a first level outcome will lead to the second level outcome. i.e., if I do a
good job, there is something in it for me. This is affected by such things as:
● A clear understanding of the relationship between performance and outcomes –
e.g., the rules of the reward 'game.'
● Trust in the people who will take the decisions on who gets what outcome
● Transparency of the process that decides who gets what outcome
3. Valence:
This is the importance that the individual places upon the expected outcome. For the
valence to be positive, the person must prefer attaining the outcome to not attaining it. For
example, if someone is mainly motivated by money, he or she might not value offers of
additional time off.
Vroom's expectancy theory of motivation is not about self-interest in rewards but about the
associations that people make towards expected outcomes and the contribution they feel
they can make towards those outcomes.
 41

INTERVIEW FAQs
─
● Tell me something about yourself which is not on your CV / Introduce yourself ● Why
MBA?
● Tell us something about your family background?
● What have you learnt till now while pursuing your MBA?
● Who is your inspiration? Why?
● Where do you see yourself in 5 years? Long-Term/Short-term Goals
● What are your strengths and weaknesses?
● What are your hobbies? à there may be follow up questions with- How do you follow your
hobbies here at IIM Shillong? How do you manage your schedule? How frequently do you
follow your hobby?
● Why this company?
● Why did you pursue MBA? Why this domain?
● Questions pertaining to your CV (work experience / projects / internships)
● What are your key learnings from your internships, projects, work experiences etc?
● Any target which you achieved? Any failures?
● What is your dream company?
● What is your favourite subject in your MBA college? Why?
● Sometimes, they can give situational questions, and see your thought process, clarity of
thought on what decision you choose to take in that situation.
 42

INTERVIEW TIPS
─
1. Read all about the company in advance- you should know all the business verticals they
are in, different products and services provided and very importantly, the company’s
Vision, Mission and Values. Align your values with the company values to create an impact
in your answers.

2. Answer any question, like ‘What is your strength?’, in one of these three types:
● The first is a Statement
● The second is Evidence
● The third is Anecdote: An EXAMPLE in the form of a STORY.
ANECDOTES are the most powerful way to engage an interviewer Imagine, you’re telling an
interviewer bored of hearing standard answers an Anecdote
● Firstly, your answer is inimitable, because it is your life
● Secondly, you are giving the interviewer a feeling of being in your shoes 34
● Thirdly, you are giving ample proof of what you’re saying because of the wealth of details.
Make your anecdote about your strength and attach powerful emotions to it.

3. What kind of facts to state?

There are three kinds of facts: Mundane Facts, Selling Facts, and Negative Facts.
Only use Mundane Facts to set the stage, then PILE ON the Selling Facts that will be Positive
and Remembered!
E.g.: I could say, “My self-started project involved meeting many stakeholders, like
bystanders, doctors, policemen, politicians and journalists, and I also had to do direct field
research at the site of the event and…”
OR
I could say, “My project was to make Gotham the safest city in the world. I achieved part of
it through my project by achieving a 5% reduction in crimes in Gotham in the following
month! To do this, I focused on high-visibility crimes that would send a message to
 43

criminals citywide. I selected the Johnson double-murder based on my own Excel model as
the best murder to solve. My detailed field investigations, spread across 500 hours, led to
my publicly apprehending and thrashing the murderers, which had a large role to play in
the drop in crimes.”
NEVER volunteer Negative Facts unless asked.
NEVER volunteer any negative facts or anything that has the hint of being negative, UNLESS
specifically asked (E.g.: What is your weakness)
When stating a negative, always speak of what you are doing to overcome it or what you
have learnt from the experience.