Essentials of HRM

 Answer 1

Introduction:

Human resource planning is the process of scrutinizing and detailing the availability
and the need for human resources, to meet organizational objectives. HR planning
assures right number of resources, skilled capabilities at the right time and in right
positions within the organization.

Following are the main objectives of Human resource planning:

o Based on the need , to supply ample resources.

o To ensure that the current capacity is being used effectively and efficiently.
o The potential requirements at various skill levels are forecasted.
o Excess capacity or scarcity of resources are evaluated at a given point of time.
o The impact of technological changes on the resources as well as on the kind of
jobs they do are predicted.
o The resources that are already employed in the organization are managed.
o Availability of lead time to pick and train any supplementary human resources
is ensured.

Concepts and application:

Human Resource planning and management is very crucial for any

organization especially for banks as banking is a service industry. Effective risk
management may not be possible without efficient and skilled manpower. Banking is
always associated and tagged as people’s business. High level of competition is faced
by private banks in retaining the talents. They have to offer them niche and
challenging environment. Customer satisfaction is an important aspect in banking
industry, so human resources of bank must deliver and emphasize the values such as
“responsible”, “reliable”, “innovative” , “sound” on the ground.

External Factors that affect Human Resource Plan are as under:

o Government policies/Legal factor: Political as well as legal environment of a

county is the major factor impacting HR plan in private sector organization.
Various policies such as industrial policy, labour policy, economic policies,
national labour laws, health and safety regulations, reservation policies have a
major influence on development of HR plan. Equal employment, Sexual
harassment prevention, Union contract grievances and Disability
accommodations are some of the focus areas while creating HR plan and this
 is being practiced globally. Different sectors and different countries implement
the government policies and legal framework differently. Legal framework
includes labour and employment laws, which in turn supports in creating
policies covering the minimum wages, compensation and benefits and various
related practices.

o Economic Factor: Supply of human resources in current as well as future

scenarios is based on level of economic development within the country.
These can impact the HR plan directly or indirectly. Country’s economic
conditions also influence the labour market and supply of labourers, so this
has direct impact on recruitment and selection process of the organization.
The decrease in supply of labour or skill can be supported by building the
training and development strategies of organization. GDP as well as per capita
income influence the compensation and benefit plan of the organization. It
should be noted that negative GDP can drive cost cutting and more rigid HR
policies in the organization.

o Information Technology/ Digitalization: Digitalization/Automation has

brought amazing shift in the way business operates. This shift can be observed
in Business Process Reengineering (BPR), Enterprise Resource
Planning  (ERP) and Supply Chain Management  (SCM). Due to these
changes there was a remarkable reduction in human resource and increase in
software specialists. Technological advancements have helped management
activities to be more effective and efficient. Hiring process has been affected
by IT , it has become more efficient. With the help of technological
advancements, it is possible to have online recruitment process compared to
earlier the application were only through advertisement. Earlier it was time
consuming process, when hard copies were manually processed to fulfil the
job. Also, level of technology , new inventions and discoveries regulates the
kind of human resources required, in turn impacting HR planning. AI/Synbots
supports in automating the complete hiring, recruitment and onboarding
process.

o Business Environment: Supply of human resources in the country and volume

of production is influenced based on internal and external factors influencing
the business.

o International factors: Various international policies impact the demand and

supply of human resources , thereby influencing the human resource planning.

o Demographic Factors: These factors form the characteristics of workforce

such as gender, race, culture, education. Culture and gender diversity also has
impact on the performance of organization. Work-life balance is an important
aspect to be considered while framing the HR plan. All these factors impact
the current as well as future demand and supply of human resources. Security
at workplace is one of the essential components to be considered while
 creating the HR plan. Recruitment and selection policies and planning broadly
depend on the demographic factors.

Conclusion:

Efficient Human resource planning results in maximum utilization of human

resources, lessens excessive labour turnover and high absenteeism. Planning helps in
improving productivity and aids in achieving the objectives of bank. To achieve the
desired human resource planning, the bank's management does organizational
planning along with setting objectives to establish the technology, marketing, finance,
expansion, and diversification. This would forecast the volume of future work
activity, along with demand for human resource at different levels and in different
departments. HR plan estimates the gap between demand and supply .This plan bridge
the gaps and supports the redeployment of current employees along with recruiting
the new members. Liberalization, privatization, globalization, technological
improvements and changing economic scenario puts high pressure on Private banks.
Human resource planning should take place within the context of the organization.

 Answer 2

Introduction:

Obsolescence is a degradation of an employee's expertise due to lack of

knowledge of new work processes, techniques, and technologies that have developed
over the years. The degree of obsolescence can be evaluated by the discrepancy
between proficiency level of the individual and current advanced standards in the
field. Global competition, geographical mobility and market trends amongst other
factors contribute to making humans obsolete. This would clearly mean that
innovation is a must. Innovation is required in people’s thinking, skills, and
competence. Continuous learning is the way forward to avoid obsolescence.

Concepts and application:

The knowledge, skills, and aptitudes are imparted through training, this is
necessary to undertake the required jobs efficiently and develops worker’s full
potential. Training is a designed to bring a change in thinking and behaviour of an
employee.

 Training Needs and its importance

o Higher productivity: -Level of performance is improved by using
certain way of working.
 o Standardization of Procedure:- Standardization helps in improving the
quality of product and services
o Less Supervision:- Trained employees are self-motivated and reliable.
o Economical operation:- Wastage and spoilage is reduced by trained
employees due to use of machinery and material.
o Higher Morale:-Training develops positive attitude, and creates job
security, satisfaction by removing grievances
o Organizational climate:-Decentralization and participative
management are introduced. Resistance to change is reduced.
o Personal Growth:- Skill upgradation helps in growth in their career
• Training is assuming an ever-increasing importance in the industry due to
Technological advances.
• Experienced employees may be taught to operate on unfamiliar equipment.
• Persons raised to supervisory levels can be taught how to plan and control the work
of their units and help their subordinates.
• Many unskilled jobs are disappearing. To remain employed, it is essential to upgrade
and reskill , which can be done by training.
• As new management techniques and technical developments appear, higher-level
employees need refresher courses.
• Big organizations deal with complex problems of co-ordination and integration of
activities. Therefore, training is essential and continuous approach.
• Many companies have training programmes for qualified prospects to mould them to
the requirements of the organisation
• The human relations movement emphasizes the importance of providing employees
with conditions that permit and promote self-actualisation.

 Types of Training

o Job Training: New entrants are trained to perform the operational

job efficiently.
o Induction Training: Mainly given to new employees to provide the
knowledge of tools, equipment’s, techniques, and situations.
o Promotional Training: To provide encouragement to employees
and senior positions are given with new responsibilities.
o Refresher Training: To train existing employees for usage of new
tools and equipment. Prior knowledge is revived. This helps in
avoiding personal obsolescence.
 o Safety Training: To create awareness of employees with safety
devices.
o Remedial Training: To correct mistakes and behaviours ,which in
turn impacts the performance of employee.

 Important Methods of training.

o On the Job training method
 On Specific Job
 Experience
 Coaching
 Understudy
 Position Rotation
 Special projects
 Selective Reading
 Apprenticeship
 Vestibule school
o Off the Job Training method
 Special courses and Lectures.
 Conferences
 Case studies
 Brain Storming
 Laboratory Training

Requirement of training for unskilled workers, semi-skilled workers, skilled workers, office
staff, supervisory staff, and managerial personnel are different.

Training programs helps avoid human obsolescence:

(1) It can help to renew the skills of an old workforce, which may be old but still have few
years before retirement. Training can support such employees by saving their jobs.
(2) Demotion, firing or finding another job may lead to conflicts and instability in the
employer-employee relationship.
(3) Training programs are the fashion in many organizations, especially multi-nationals, as
directors are aware that constant updating of employee skills will extend their expiry date.
Even the Civil service people are offered training in Mauritius. Example: Many public
officers are trained to improve their basic skills in computers.
(4) Training will also satisfy and motivate employees, thus help the organisation in retaining
the workforce.
(5) Training also contributes to the achievement of the organization’s goals and objectives.
For example, an organisation wants to double its profits by introducing faster and highly
computerized textile machines and implement a Japanese concept of management, Gemba
Kaizen. It would be appropriate to train the existing workforce, for usage of the new
machines ,rather than recruiting new graduates in Gemba Kaizen field. It will help in cost
reduction of recruiting new employees (and damages in Court for firing the employees!) as
well as leading to growth of existing employees.
There are certain discrepancies as well of these training programs
(1) Without clear objectives and assessment of training needs, the end-result of the training
would not be satisfactory and will not help to avoid human obsolescence.
(2) Assessment should be done to identify training needs.
(3) Evaluation of the training is essential , to determine benefits of the training for usage in
future.

Conclusion:
Obsolescence will always remain challenge for employer as well as employee. To
prevent a lack of knowledge in new processes, techniques, and technologies, active
participation is required for all stakeholders in training programs. Skills required at the
workplace continue to change, hiring people with new skills can prevent lower productivity.
Training programs are helpful in avoiding human obsolescence , along with-it other elements
must also be considered. Training needs with proper assessment, clear objectives and
evaluation might bring incorrect results. Also, the employees must be ready to participate in
such programs. Resistance of employees to participate in trainings will result into additional
cost for the organization. Overall, training can be the best solution to avoid human
obsolescence provided it is implemented appropriately.
Survey was conducted for over 750 human resource professionals, in which "82% of
respondents agreed that employees have to learn more and faster to succeed in their roles than
they did five years ago; yet 51% of HR leaders confirmed that are some way off from
delivering to their full potential when it comes to providing employees with the right training
and knowledge for their roles" (Lumhan, 2012). New skills can be learnt by employees by
reading, partipacting in training, seminars and by adopting continuous learning process.

 Answer 3a

Introduction:

Human resource development facilitates the techniques such as counselling, training,

performance appraisals, and organisational development interventions in continuous
 learning mode. The goal of human resource development is to nurture the employees
by finishing their existing skills and supporting them to identify new skills.
Training and coaching are provided to employees to enhance their skills, knowledge
and discover their potentials. The main aim is to improve their existing skills.

Concepts and application:

I would extend support from Human resource development team for the following:

 HRD focuses on developing employee’s competencies by giving opportunities of

upskilling and reskilling.
 Performance system helps employees to evaluate their performance and valid , genuine
feedback is given by the managers , this in turn helps employees to keep their
commitment towards the job
 An atmosphere of trust, confidence, and respect for the employees is enabled in the
organization.
 An atmosphere is created to accept the challenges sportingly.
 The employee’s problem-solving ability is positively utilized and enhanced by HRD
system.
 Culture of openness and open-door policy is created by HRD , which gives employees the
confidence in their behaviour
 Various events/activities are supported by management in co-ordination with HRD ,
focussing on overall improvement of the employees and team-spirit.
 Efficient work culture is created, which further contributes to creating effective
organization.
 HRD focuses on profit maximization and minimizing loses by avoiding wastage, while
employees achieve the goals.
 The system supports in motivating the employees in performing their jobs efficiently and
increase participation in various activities. Various rewards and recognition give
employees the feeling of achievement.
 HRD collects useful data for employee management on their policies and programs; it
helps in building better human resource planning. Data supports in various forms of
analysis
 It focuses on the organisation’s overall development, that is, the employee, the teams, and
the organization.
 HRD carries responsibility to build the efficient resource for the organization by
including managers of every level in building the capability.
 Creates value for both the employee and the organization

Conclusion:

To rectify Rahul’s situation, as his boss I would involve HRD and support him with
appropriate coaching and training and create an atmosphere of trust and confidence
 HRD supports in a continuous and planned manner so that employees of an
organization are educated to perceive the following:

o They can perform well in their existing and future roles and responsibilities , as their
abilities are polished .
o Employees’ inner potential are developed, and their own capabilities are explored for
self as well as organizational development. They are also given an opportunity to
learn new skills.
o The culture of organization is developed to build strong relationship between the
supervisor and the subordinate. It also supports collaboration between different unit
in the organization and contributes to motivating employees.

 Answer 3b

Introduction:

Human resource development management is essential for any organization

for supporting motivation and growth of its employees. Several Functions collectively
counsel human resources for adhering to the values of the organization.

Concepts and application:

Human resource development provides framework for developing organizational

and personal abilities and skills. Training, career development, performance
management, coaching, succession planning, identifying key employees are some of
the areas are looked upon by HR Department.

Human Resource Development is specialized function for the benefit of employees

and organization:
 Talent identification: Deputation of employees at various roles is done after
evaluating their capabilities and skills. Clear roles and responsibilities are identified
and discussed at every level , so the employees are productive and perform their job in
such a manner that maximum output is derived. Recruitment and selection of suitable
skilled resources is essential for every business to attain organisational goals.
 Education-oriented employee benefits: Education oriented training plans and
programs are designed to enhance the knowledge and skills of workforce by HRD.
Various benefits are given to employees by sponsoring their college and tuition fees
along with certification. These enables employees to learn new concepts and
technologies for making them competent to face challenges of future.
 Employer-employee relationships: Organization aspires to manage positive relations
among all its employees operational at distinct roles. HRD’s goal is to strengthen the
 relationship between the employer and employees across the business units with the
organization. Efficient communication channel is established to allow employees to
connect to their leaders and vice versa. This also allows management to take informed
decision and strong bond is created among the team.
 Performance measurement and management: Employees’ performance
measurement at frequent intervals is key function of HRD. It empowers organization
in distinguishing various issues responsible for inefficiency. Reviewing of
performance helps to identify underperformers. Employees are apprized about the
outcome of appraisal and guided by managers for performance improvement. Timely
review also ensures that individuals are performing roles efficiently. 
 Compensation and benefits: Appropriate number of benefits and compensation for
employees are decided by HRD. Based on qualifications and performance ,individual
is paid in the organization. Recognition is done by Employer of the contributions of
each workforce and rewarded them by offering various kinds of financial and non-
financial incentives. This improves the morale and confidence of employees.
 Career planning: Human resource development does the function of planning and
guiding the employees in their career path. The growth path for future opportunities is
available for employees. Employees are counselled and their personal aspirations are
aligned with future of company. Employees are engaged with organization for longer
period thereby higher productivity is achieved.
 Improvement and coaching: Overall development of each employee of an
organization is responsibility of HRD. Knowledge is imparted to workforce by
designing and implementing various trainings. Employees are trained for effective
usage of distinct tools and techniques at workplace. HRD facilitates enhancing skills,
capabilities and understanding of new concepts of the employees , so they are overall
qualified for performing their roles efficiently.

Conclusion:

This situation could have been avoided by working in close collaboration with
HRD. Along with promoting Rohit, he should have been educated about the roles and
responsibilities, guided, and counselled for the new role that he had to perform.
Appropriate training should have been provided and his personal aspiration should
have been investigated before assigning him to the new department.