Scope of Human Resource Management

The scope of HRM is very wide. Research in behavioral sciences, new trends in managing knowledge workers and advances in the field of training have expanded the scope of HR functions in recent years. The Indian Institute of personnel management has specified the scope of HRM thus: 

1. Personnel aspect
2. Welfare aspect  
3. Industrial relations aspects

Personnel aspect: 

• This is concerned with manpower planning, recruitment, selection, placement, transfer promotion, training and development lay off and retrenchment remuneration incentives productivity etc. 

For Detail refer at end*

Welfare aspect: 

• Human Resource Management have to follow certain health and safety regulations for the benefit of employees.  
• It deals with working conditions and amenities such as canteens, crèches rest and lunch room housing, transport, medical assistance, education , healthy and safety recreation facilities etc 

Industrial relations aspects: 

• HRM works to maintain co-ordinal relation with the union members to avoid strikes or lockouts to ensure smooth functioning of the organisation. 
• It also covers - joint consultation, collective bargaining, grievance and disciplinary procedures, and dispute settlement. 
• The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. 
• It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.

The scope of HRM is extremely wide, thus, can not be written concisely. However, for the sake of convenience and developing understanding about the subject, we divide it in three categories mentioned above.

In India, HRM now consists of 3 main branches-

• HR administration which deals with administrative duties such as selection, placement, training, promotion, transfer, wage and salary administration, etc.
• Industrial Relations concerned with employer employee relations, negotiations, collective bargaining, grievances redressal, dispute and joint consultation.
• Labour welfare consisting of facilities like canteen, creches, housing, education, medical aid, recreation, etc.

Personnel aspect (Detail)* 

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1.✏️ Civil Service Gurukul will suggest sources (Books & Notes) for Covering Topics mentioned in above test series as per UPSC Circular.
2.✏️ Civil Service Gurukul will provide Value added notes on important topic.
3.✏️ Civil Service Gurukul will evaluate answer sheet and provide Synopsis/approach/Model answer to develop answer writing skills of answering questions of UPSC civil service mains Examinations 2018.
4.✏️ All test paper consists of 250 Marks each paper.
5.✏️ Duration of test is 3 hours.

Nature of Human Resources Management

• HRM is process of bringing people and organizations together so that the goals of each are met. 

• It tries to secure the best from people by winning their whole hearted cooperation. 

• In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner. 

• It has the following features: 

1. Pervasive Force

2. Action oriented

3. Individually oriented

4. People oriented

5. Future oriented

6. Development oriented

7. Comprehensive functions

8. Continuous functions

9. Integrating mechanism

10. Auxiliary service

Pervasive force: 

• HRM in pervasive in nature. 
• It is present in all enterprises, such as education, health care, recreation, etc. 
• It permeates all levels of management in organizations.  

Action oriented: 

• HRM focuses attention on action, rather than on record keeping written procedures or rules. 
• The problems of employees at work solved through rational policies. 

Individually oriented: 

• It tries to help employees develop their potential fully. 
• It encourages them to give their best to the organizations. 
• It motivates employees through a systematic process of recruitment, selection, training and development coupled with fair wage policies.

People oriented:  ..............

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🥇🏆Key Features of Integrated Guidance Program cum Test Series of Commerce Optional UPSC 2018 and 2019 🏆🥇

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1.✅The most reliable All India Integrated Guidance Program for UPSC Commerce optional, so that every Students of Civil Service Gurukul can know where he stands among the REST OF their COMPETITORS.
2.✅ Scheduling the tests in a phased manner (Subject wise and full syllabus tests). Test series will consist of 11 tests of UPSC Commerce and Accountancy optional.
3.✅Test Paper which are carefully created by our expert faculty to enhance and sharpen the aspirant’s' intellectual competence for actual exam. Test paper will be based on previous year pattern, Current affairs and UPSC guidelines.
4.✅Questions act as trigger for learning what is required for the Main Exam and benefit to get maximum marks in Main Exam.
5.✅ Exhaustive performance analysis and feedback based on the subject wise Strength and weakness analysis.
6.✅Interactive system conducive for expressing conceptual doubts, discussions and clarifications.
7.✅Test Paper will help you in handling exam pressure and managing time.
8.✅Civil Service Gurukulwill provide value added notes on important topics

🌍 http://civilservicegurukul.com/commerce-optional-guidance/

📚Approach for Test Series of COMMERCE AND ACCOUNTANCY OPTIONAL-UPSC (IAS)📚📌
1.✏️ Civil Service Gurukul will suggest sources (Books & Notes) for Covering Topics mentioned in above test series as per UPSC Circular.
2.✏️ Civil Service Gurukul will provide Value added notes on important topic.
3.✏️ Civil Service Gurukul will evaluate answer sheet and provide Synopsis/approach/Model answer to develop answer writing skills of answering questions of UPSC civil service mains Examinations 2018.
4.✏️ All test paper consists of 250 Marks each paper.
5.✏️ Duration of test is 3 hours.

Meaning of Human Resource Management (HRM)

Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.” 

The National Institute of Personal Management (NIPM) of India has defined human resources – personal management as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise and having regard for the well – being of the individuals and of working groups, to enable them to make their best contribution to its success”. 

According to Decenzo and Robbins, “HRM is concerned with the people dimension” in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieve organsational objectives. This is true, regardless of the type of organization – government, business, education, health or social action”.

For more join Test Series-
🥇🏆Key Features of Integrated Guidance Program cum Test Series of Commerce Optional UPSC 2018 and 2019 🏆🥇

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1.✅The most reliable All India Integrated Guidance Program for UPSC Commerce optional, so that every Students of Civil Service Gurukul can know where he stands among the REST OF their COMPETITORS.
2.✅ Scheduling the tests in a phased manner (Subject wise and full syllabus tests). Test series will consist of 11 tests of UPSC Commerce and Accountancy optional.
3.✅Test Paper which are carefully created by our expert faculty to enhance and sharpen the aspirant’s' intellectual competence for actual exam. Test paper will be based on previous year pattern, Current affairs and UPSC guidelines.
4.✅Questions act as trigger for learning what is required for the Main Exam and benefit to get maximum marks in Main Exam.
5.✅ Exhaustive performance analysis and feedback based on the subject wise Strength and weakness analysis.
6.✅Interactive system conducive for expressing conceptual doubts, discussions and clarifications.
7.✅Test Paper will help you in handling exam pressure and managing time.
8.✅Civil Service Gurukulwill provide value added notes on important topics

🌍 http://civilservicegurukul.com/commerce-optional-guidance/

📚Approach for Test Series of COMMERCE AND ACCOUNTANCY OPTIONAL-UPSC (IAS)📚📌
1.✏️ Civil Service Gurukul will suggest sources (Books & Notes) for Covering Topics mentioned in above test series as per UPSC Circular.
2.✏️ Civil Service Gurukul will provide Value added notes on important topic.
3.✏️ Civil Service Gurukul will evaluate answer sheet and provide Synopsis/approach/Model answer to develop answer writing skills of answering questions of UPSC civil service mains Examinations 2018.
4.✏️ All test paper consists of 250 Marks each paper.
5.✏️ Duration of test is 3 hours.

Definition of 'Theory X & Theory Y'

Definition: Theory X and theory Y are part of motivational theories. Both the theories, which are very different from each other, are used by managers to motivate their employees. Theory X gives importance to supervision, while theory Y stresses on rewards and recognition. 

Description: Theory X and theory Y follow different methodologies of keeping people motivated. Theory X follows an authoritarian approach to motivate people. One of the key assumption in this approach is that the average employee doesn't like work and will do anything to avoid it. 

The other assumption under theory X is that the employees need to be threatened or forced to work towards the organizational goals. They will avoid responsibility and the managers have to supervise them at every step. 

In an organisation where theory X is followed, the management too follows an authoritarian style. There is little delegation of authority from the management. 

On the other hand, companies who follow theory Y have a more decentralized approach, which means that the authority is distributed among employees. This keeps them motivated. 

There are some key assumptions under theory Y. One of them is that employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision. 

The workers are more participative and try to solve problems on their own without relying on supervisors for guidance. This type of management style is more common than theory X. In this type of management style, even a small employee can participate in the decision-making process. 

Theory X works on the idea of punishing people to keep the work going, while under theory Y, promotions, rewards, and recognition play an important part. This keeps employees motivated to work hard towards achieving goals of the organisation.

Definition of 'Theory X & Theory Y'

Definition: Theory X and theory Y are part of motivational theories. Both the theories, which are very different from each other, are used by managers to motivate their employees. Theory X gives importance to supervision, while theory Y stresses on rewards and recognition. 

Description: Theory X and theory Y follow different methodologies of keeping people motivated. Theory X follows an authoritarian approach to motivate people. One of the key assumption in this approach is that the average employee doesn't like work and will do anything to avoid it. 

The other assumption under theory X is that the employees need to be threatened or forced to work towards the organizational goals. They will avoid responsibility and the managers have to supervise them at every step. 

In an organisation where theory X is followed, the management too follows an authoritarian style. There is little delegation of authority from the management. 

On the other hand, companies who follow theory Y have a more decentralized approach, which means that the authority is distributed among employees. This keeps them motivated. 

There are some key assumptions under theory Y. One of them is that employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision. 

The workers are more participative and try to solve problems on their own without relying on supervisors for guidance. This type of management style is more common than theory X. In this type of management style, even a small employee can participate in the decision-making process. 

Theory X works on the idea of punishing people to keep the work going, while under theory Y, promotions, rewards, and recognition play an important part. This keeps employees motivated to work hard towards achieving goals of the organisation.

Definition of 'Theory X & Theory Y'

Definition: Theory X and theory Y are part of motivational theories. Both the theories, which are very different from each other, are used by managers to motivate their employees. Theory X gives importance to supervision, while theory Y stresses on rewards and recognition. 

Description: Theory X and theory Y follow different methodologies of keeping people motivated. Theory X follows an authoritarian approach to motivate people. One of the key assumption in this approach is that the average employee doesn't like work and will do anything to avoid it. 

The other assumption under theory X is that the employees need to be threatened or forced to work towards the organizational goals. They will avoid responsibility and the managers have to supervise them at every step. 

In an organisation where theory X is followed, the management too follows an authoritarian style. There is little delegation of authority from the management. 

On the other hand, companies who follow theory Y have a more decentralized approach, which means that the authority is distributed among employees. This keeps them motivated. 

There are some key assumptions under theory Y. One of them is that employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision. 

The workers are more participative and try to solve problems on their own without relying on supervisors for guidance. This type of management style is more common than theory X. In this type of management style, even a small employee can participate in the decision-making process. 

Theory X works on the idea of punishing people to keep the work going, while under theory Y, promotions, rewards, and recognition play an important part. This keeps employees motivated to work hard towards achieving goals of the organisation.

Definition of 'Succession Planning'

Definition: Succession planning is a process by which individuals are scanned to pass on the leadership role within a company. The process ensures that business continues to operate efficiently without the presence of people who were holding key positions as they must have retired, resigned, etc. 

Description: Succession Planning, specifically termed as Management Succession Planning, involves coaching and development of prospective successors or people within a firm or from outside to take up key positions in an organisation through an organized process of assessment and training. 

It ensures a smooth transition of power in key leadership roles. If the successor is chosen within the organisation, it will help motivate the employees, and also save on cost and extra time which the management would have spent in scanning candidates from other firms. 

There are four main stages in the succession planning process, which involve transition (movement of new role), initiation, selection, and education. 

Let's look at each phase. In the first phase of 'initiations', potential candidates for the job learn about the business, more importantly about its value system, guidelines, values, vision, etc. Here the CEO or any top leader of the organisation talks about these key things to the candidates. 

The second phase or 'selection' is a complex task, where a specific candidate is chosen to be a successor among other candidates who were running for the same job. In the third phase of 'training' involves an exhaustive training scheduled for the successor so that he can meet the goals of the organisation as well as returns for the shareholders. 

In the fourth and the last phase of 'transition,' the business owner or the CEO retires or moves out of the organisation, and the chosen successor formally takes up the responsibility as his/her new leadership role.

Definition of 'Scalar Chain'

Definition: Communication is a crucial aspect of any organisation and the principle of scalar chain revolves around the flow of communication from management to the lowest rank in the company. Scalar chain is a chain of all supervisors from the top management to the person working in the lowest rank. 

Description: A clear line of communication is very important for any organisation to achieve its objectives. The communication has to flow in an order for it to be effective. Scale chain identifies that path. According to the principle, any information should follow a pre-defined path, which is from the supervisor to the one in lowest position, to avoid any ambiguity. 

This chain pattern should be followed at every department of the organisation to be effective and the process should not be tinkered with for it to remain effective. Let's understand it with the help of an example. Suppose your company has 10 employees. 

Now, if employee 4 has to communicate with employee 8, he/she has to follow the scalar chain, wherein the flow of information will take place from employee 4, 5, 6, 7, and then 8. The process is simple and avoids any ambiguity. 

It is not a complicated process but it does take time because for information to reach employee 8, it has to go through a four-step structure. In case of emergencies, this system might not be effective. 

There are various advantages of scalar chain. One is that it is very important for any organisation to have a chain of command to avoid chaos. Every employee knows whom to approach when faced with a problem. 

It also allows the top management to communicate their message to the entire organisation and supervisors at each level become responsible to execute that order. A proper chain of command allows business to run smoothly but it also makes it inflexible at times.

Definition of 'Restrictive Covenant'

Definition: In human resources, a restrictive covenant is a clause which limits an employee from seeking placement with his/her ex-employer till a certain time limit after leaving the business/organisation. A restrictive covenant started out as a legal term to govern land owners. It dealt with how a piece of land may be used and developed. 

Description:
Types Non-compete agreements which state an employee cannot leave the workforce to join a competing business 

Non-solicitation covenant - An employee cannot solicit or approach customers of his/her ex-business 

Non-poaching covenant - An employee cannot approach his/her ex-colleagues to join a competing business 

A restrictive covenant limits employees from soliciting or poaching customers of his/her ex-business using the information gained during employment. 

However, in a legal sense, such a clause is null and void as it restrains free trade. Currently, employers have no recourse for protecting their business from ex-employees. 

But in certain cases an employer may replace a restrictive covenant with a non-compete clause to address genuine business concerns in a limited manner. 

A non-compete clause works well to protect things like confidential client information. Since it is not drafted as openly as a restrictive covenant, there is a higher chance it would be upheld in court, if challenged. 

Further, to ensure that the legality of such an instrument cannot be challenged, an employer should make sure to: 

Mention the area in which this can be applicable and take care to ensure that the area of applicability matches with the geographic place of business/customer acquisition. 

Limit the time period for which the restrictive covenant will be applicable. Generally, it is difficult to apply it for a period greater than a year. 

Limit the number of activities that you are seeking to protect yourself from. 

Clearly specify and justify the type of information being protected. Such information cannot be in the public domain. It should belong to the organisation seeking the limitations. 

The organisation should also show that the employee against whom this injunction is being sought was involved in the collection or use of this information in some way. 

The breadth of these clauses should be relative to the seniority of the person. 

Ideally, an organization should review its restrictive covenants regularly to ensure they remain enforceable. 

A legal effort to enforce a restrictive covenant can be long-drawn, difficult, and costly and so organisations should carefully consider the ramifications before getting into such an agreement.

Definition of 'Rate Of Return Pricing'

Definition: Rate of return pricing is a method by which a company fixes the price of the product in such a way that it ultimately helps organisations in achieving the ultimate goal or return on the capital employed. This is a common practice, but can only be effective in cases or products which have very little competition. 

Description: The concept of rate of return pricing is similar to return on investment. The only difference is that in this approach, manufacturer or the company can manipulate or change the price of the product to achieve the ultimate goal of the organisation. 

The rate of return pricing helps the company in achieving a certain level of profit which is required to keep the liquidity intact. The price is set in such a way that the ultimate goal of achieving corporate profit objective is met if sales continue to run at a given rate. 

The process becomes easy if there is little competition, as compared to a situation when there is competition. 

The target return price can be defined as: Target return price = unit cost + (desired return * invested capital) / unit sales 

Pricing the product by rate of return can also have some short comings. It does not take into the account the price elasticity and the pricing of the competition which are two important things to consider before the final pricing is set. 

Let's understand the concept of rate of return pricing with the help of an example. A company ABC Ltd has an objective of achieving a required rate of return of say 20% on goods that they sell. 

The company manufactures pencils and have already invested Rs 10,00,000 in the business. The cost of each pencil is Rs 16. Here, we are assuming that sales can hit 50,000 units in a year. 

The target return price would be = 16 (cost) + (20%*10,00,000 (investment))/50,000 (sales) = Rs 20. So, to achieve the required rate of return, the company should sell the pencil at Rs 20 each.

Definition of 'Performance Planning'

Definition: Performance planning is a systematic and structured approach to successfully achieve the desired goals of an individual or team throughout the assessment year. A plan is chalked out for the team or an individual(s) keeping in mind the broader objectives of the organisation. 

Description: Performance planning is a crucial part of an employee's growth in the organisation. An effective performance planning system will be easy to understand, as well as to implement. It would also be accurate enough to provide the performance of an employee throughout the year. 

There are four basic objectives of performance planning. The first one is to communicate basic responsibilities that the individual has to perform on a daily basis. It could be reporting, data management, etc. 

The second objective is to remove any vagueness in the goals and objectives that the individual has to achieve in the year or time period specified by the team leader. 

The third is to identify and build on the competencies of an individual for doing the job. This helps in making employees more productive. 

The fourth is to create an adequate career development plan for the individual which would keep him/her motivated. If an employee is well aware of his/her career as well as growth plan, he/she will be self-motivated. 

The performance planning tool should be effective in monitoring as well as measuring the results. It should identify key performance levels which can easily be quantifiable. Performance metrics which are easy to identify are helpful in making comparisons. 

The performance plan laid out would also be helpful in enlisting various training programs which employees can take to increase knowledge and productivity. 

Normally, there is no specific format in making a performance plan, but it should have these four parameters. The first is to list the goals, the second is that it should contain various performance measures. The third one is that the performance planning should enlist various measures or action required to achieve desired goals, and the last one is that it should have a given time period for all goals.

Definition of 'Peer Appraisal'

Definition: Peer appraisal is a type of feedback system in the performance appraisal process. The system is designed to monitor and improve the job performance. It is usually done by colleagues who are a part of the same team. This type of appraisal system excludes supervisors or managers. 

Description: As a part of the appraisal process, an employee is assessed based on the feedback given by his/her colleagues or people within his/her close working environment. This feedback is anonymous. 

A typical peer appraisal does not take feedback from superiors. It is meant to monitor and improve job performance. 

Why should one do peer appraisal? 

Employees can assess the skills of their co-workers much more clearly than management because they work together. 

It helps in team-building. People understand that opinions of their colleagues are important and one must build relationships. 

Since people trust their co-workers, they consider the feedback to be constructive. It makes the process of skill improvement public and accountable. 



There are many ways to do peer appraisal. It could either be peer ranking wherein people rate their co-workers on key performance metrics or it could be peer nomination where the best worker is nominated based on the same metrics. 

The process of peer appraisal is similar to the one followed in the 360 degree feedback which also comes from different sources and hence it is accurate and fair. 

What are the benefits of peer appraisal? 

Insights of the mindset of employees. Good employees who have escaped the attention of management also get recognition. 

Employees realise that perception matters and they should work closely with their co-workers. This creates better understanding between departments. 

By analysing the gap between peer rankings and the rating given by the assessing manager, organisations can identify and solve potential attrition issues early. 

Brings hidden talent to the surface 

Peer appraisal is an effective method to evaluate employees when structured teams are in place. Although it is better to have this process in place when a team has already been working together for some time and the employees have had enough time to understand each other's strengths and weaknesses. 

Sometimes, existing employees, who have been exposed to traditional appraisal processes over the years, may have problems related to the feedback that comes from a peer appraisal process. In order to reduce such issues, it is better to involve employees in developing and implementing the peer appraisal process. 

Peer appraisal is most useful when it is used for employee training and development purposes. During the process, facilitators and coordinators have an important role to ensure that feedback is constructive and once given, it is utilised by the receiver. 

Peer appraisal is most effective in closely-knit team environments where people provide support to each other and are committed to the organisational goals.

Definition of 'Myers-briggs Type Indicator'

Definition: The Meyers-Briggs Type Indicator (MBTI) is a self-help assessment test which helps people gain insights about how they work and learn. It is a framework for relationship-building, developing positivism, and achieving excellence. 

Description: The MBTI was developed by Katherine Briggs and is based on the typological theory of Carl Jung who had proposed that there are four essential psychological functions by which we see this world. 

These functions are sensation, intuition, feeling, and thinking. All of us rely on one function more than others. The base of MBTI lies in identifying our preferences which are driven through our interests, values, needs, and motivation. Carl Jung came up with this theory through subjective clinical evaluations. 

While the theory itself is quite complicated, it essentially categorises you into four types based on where you are most comfortable. 

You may be more comfortable dealing with people, things, ideas, and information 

You may be more comfortable dealing with facts, reality, possibilities, and potential 

You may be more comfortable dealing with logic, truth, values and relationship 

A well-managed life i.e. judgement or going with the flow, perception 

In the MBTI theory, you combine your preferences to arrive at your personality type. You may be an extrovert who likes dealing with people or you might be someone who likes dealing with abstract ideas or information and in that case you would be an introvert. 

Similarly, you can like dealing with facts and information with a preference for sensing or you may want to explore the unknown which makes you an intuitive person. 

The third preference relates to how you make decisions. You either decide objectively or based on gut feelings. 

Lastly, your lifestyle might be planned and organised or flexible and haphazard. 

When you put these preference or types together, it turns into your MBTI personality code which is the output of the MBTI test. 

It is the world's most widely used personality assessment test.

Definition of 'Matrix Organization'

Definition: A matrix organisation is a structure in which there is more than one line of reporting managers. Effectively, it means that the employees of the organisation have more than one boss! 

Description: The matrix organisation structure is complex but helps in achieving the ultimate goal i.e. reaching higher productivity. It has various benefits. This type of structure is used in organisations which have diverse product lines and services. 

It breaks the monotony and gives more flexibility to the organisation. Employees work with colleagues of different departments who have their expertise in different functions. 

When different people from diverse departments work together, it helps solve problems in a more efficient way. It does lead to overall development of employees as each one is exposed to different functions apart from their core job. 

Here employees are assigned a job or a project outside their own department for a relatively temporary period. These teams are made up of people with diverse expertise who have come together and formed a team to attain a specific goal. 

However, there are some challenges as well. In matrix organisation structure, ambiguity could come in, if you (employees) are not sure which manager to report to. This also means that employees might be confused about their role and responsibility. 

Apart from that, in the matrix organizational structure it becomes relatively difficult for the organisation to gauge the employee's performance on a particular project. The matrix structure turns out to be a bit more expensive to the organisation than the traditional one, because it employs more managers.