This document contains a summary of key concepts in human resource management. It includes 20 multiple choice questions covering topics like the basic functions of management, human resource management roles and responsibilities, recruitment and selection processes, job analysis, and training and development. The questions are designed to test understanding of fundamental HR terms, practices and strategies.

1. Introduction of Human Resource
Management
1. The basic functions of the management
process include all the following except.
A) Planning
B) Organizing
C) Outsourcing
D) Leading
2. Which of the following is the person
responsible for accomplishing an
organization’s goals by managing the efforts
of the organization’s people?
A) Manager
B) Entrepreneur
C) Generalist
D) Marketer
3. Which function of management process
requires a manager to establish goals and
standards and to develop rules and
procedures?
A) Planning
B) Organizing
C) Staffing
D) Leading
4. Consuela, a manager, delegates the tasks
for a project to Lee, her subordinates.
Consuela is most likely involved in which
function of the management process?
A) Staffing
B) Organizing
C) Motivating
D) Leading
5. When Managers use metric to assess
performance and develop strategies for
corrective action, they are performing
the_________ function of the management
process.
A) Planning
B) Leading
C) Controlling
D) Organizing
6. In the management process, which one of
the following is an activity associated with
leading functions?
A) Motivating subordinates
B) Setting performance standards
C) Training new employees
D) Developing procedures
7. Human resource managers generally exert
_________ within the human resource
department
and _________ outside the human resources
department.
A) Line authority; staff authority
B) Staff authority; line authority
C) Functional authority; line authority
D) Staff authority; implied authority
8. Wilmar works in the HR department and is
in charge of developing the plans for how
people
are paid and how employee benefits
program is run. Wilmar is most likely holding
the position of.
A) Training specialist
B) Recruiter
C) Compensation manager
D) Job analyst
9. Personnel activities associated with human
resource management most likely include all of
the following EXCEPT.
A) Orienting and training new employees
B) Appraising employee performance
C) Building employee commitment
D) Developing customer relationships
10.An HR generalist at Wilson Manufacturing
has been assigned to the sales department
to provide HR management assistance as
needed. Which of the following best describes
the structure of the HR services provided of
Wilson manufacturing?
A) Shared HR teams
B) Embedded HR teams
C) Centers of expertise
D) Corporate HR teams
11. Which organization of the human
resource function involves dedicated HR
members that assist top management in
such as developing the personnel aspects
of the company’s long-
term plan?
A) Embedded HR teams
B) Corporate HR teams
C) Centers of expertise
D) Shared services

2. 12.What term refers to the knowledge, skills,
and abilities of a firm’s workers?
A) Human resources
B) Human capital
C) Intangible assets
D) Contingent personnel
13.What is the term for workforce like those at
the company Uber, where freelancer and
independent contractors work then they
can, on what they want to work on, and
when the company needs them?
A) Tele-commuters
B) Human capital
C) Job-analysts
D) On-demand workers
14.The recent trend where in some
occupations (such as high-tech)
unemployment rates are low, while in other
unemployment rate are still very high and
recruiters in many companies can’t
find candidates, while in others there’s a
wealth of candidates is called.
A) Talent analytics
B) Globalization
C) Unbalanced labor force
D) Human capital
15.Which of the following best exemplifies
recent trends in technology that are
affecting human resource management?
A) Listing open positions on Monster.com,
Careerbuilder.com, and similar websites.
B) The use of gaming features to enhance
training and performance appraisal
C) Allowing workers to telecommute
D) Providing employees with laptops or tablets
so they can work offsite
16.Evidence-based human resource
management relies on all of the following
types of evidence except.
A) Scientific rigor
B) Existing data
C) Research studies
D) Qualitative opinions
17.In small organizations, line managers
frequently handle all personnel duties without
the assistance of a human resource staff.
- True or False?
18.What are two distinct function caried out
by human resource managers?
- Line Authority; Staff Authority
- Overseeing department functions and
managing employees.
19.A line manager’s human resource
responsibilities most likely include all the
following except.
A) Maintaining department morale
B) Controlling labor costs
C) Protecting employees' health
D) Marketing new products and services
20. Yuki works at a position in his organization
where he maintains contacts within the local
community and travels to search for qualified
job applicants. Yuki’s position is best described
as.
A) Recruiter
B) Manager
C) Labor relations specialist
D) Job analyst
Personnel Planning and
Recruitment
21.What is the first step in recruitment and
selection process?
A. Performing initial screening interviews
B. Building a pool of candidates
C. Performing candidate background checks
D. Deciding what positions to fill
22.Marcus, An HR manager for Samsung,
must decide what positions the firm should fill
in the next six months, which means Marcus is
current working on.
A. screening job candidates
B. personnel planning
C. interviewing job candidates
D. writing job descriptions
23.The process of deciding how to fill
executive positions at a firm is known as
A. Internal recruiting
B. Succession planning
C. Long-term forecasting
D. Advanced interviewing

3. 24.Which of the following terms refers to
studying a firm’s past employment needs over
a period of years to predict future needs?
A. Ratio analysis
B. Trend analysis
C. Graphical analysis
D. Computer analysis
25.Newton Building Supplies hopes to
generate an extra $4 million in sales next year,
A salesperson traditionally generates $800000
in sales each year. Using ratio analysis, how
many new salespeople should Newton hire?
A. 2
B. 5
C. 10
D. 20
26.Which of the following contains data
regarding employees’ education, career
development, and special skills and is used by
managers when selecting inside candidates for
promotion?
A. Computerized forecasting tools
B. Skills inventories
C. Trend records
D. Scatter plots
27.When managers need to determine which
current employees are available for promotion
or transfer, they will most likely use.
A. Scatter plots
B. Skills inventories
C. Estimated sales trends
D. Personnel forecasts
28.All of the following are methods used by
firms to develop high potential candidates for
the future position EXCEPT.
A. Providing internal training
B. Implementing job rotation
C. Offering global assignments
D. Developing skills inventories
29.Smith industries is thinking of another
company take care of its benefits management.
This is called.
A. Outsourcing
B. Recruiting
C. Telecommuting
D. Screening
30.Recruiting is necessary to.
A. Determine whether to use inside or outside
candidates
B. Forecast the short-term supply of outside
candidates
C. Create positive word-of-mouth about a firm
D. Develop an applicant pool
31.Which of the following is the primary
disadvantage of using internal sources of
candidates to fill vacant positions in a firm?
A. Lack of knowledge regarding a candidate's
strengths
B. Potential to lose employees who aren't
promoted
C. Questionable commitment of candidates to
the firm
D. Significant training and orientation
requirements
32.Maria Boyd has been by Barum Hotels to
manage staffing for the regional hotel chain.
Barnum intends to open two new hotels within
the three years and will have many job
positions to fill. Historically, employee turnover
is high at Barnum as employees remain with
the company for one or two years before
quitting. Maria realizes that Barnum needs to
make significant changes in its personnel
strategy in order to meet the company’s goals
for the future and improve employee retention
rates. All of the following questions are
relevant to maria’s decision to fill top positions
at the new hotels with internal candidates
EXCEPT:
A. What are the key managerial positions that
are available at the new hotels?
B. What percentage of employers in the
service industry use succession planning?
C. What skills, education, and training have
been provided to potential candidates?
D. What is the designated procedure for
assessing and selecting potential candidates?
33.Which of the following is NOT a tool used
by firms to recruit outside candidates?
A. Newspaper advertising
B. Intranet job postings
C. Employment agencies
D. Online job boards

4. 34.Which of the following factors plays the
greatest role in determining the best medium
for a job advertisement?
A. Skills needed for the job
B. Job compensation and salary
C. Time allowed to fill the position
D. Graphics used in the advertisement
35.An employer will most likely use a private
employment agency in order to.
A. Receive assistance writing job ads
B. Adhere to legal hiring practices
C. Fill a specific job opening quickly
D. Spend more time recruiting applicants
36.Newton Manufacturing is using a private
employment agency to recruit individuals for
management position. As the HR manager at
Newton, you need to ensure that applicants
are screened properly, so you should.
A. Provide the agency with an accurate job
description
B. Post jobs on the firm's intranet and bulletin
boards
C. Develop applicant screening software for
internal hires
D. Send HR experts to monitor the agency's
recruiting activities
37.Kate works a nurse on temporary
assignment for hospitals throughout the region
on an as-needed basis. Kate is most likely.
A. Working as a contingent worker
B. Participating in a job rotation
C. Using job enlargement
D. Benchmarking jobs
38.What is an advantage of using employee
referral campaigns?
A. Local, hourly workers can be recruited
quickly.
B. Applicants have received realistic job
previews.
C. Rewards and incentives are eliminated.
D. Applicants have community ties
39.Publicizing an open job to current
employees though a firm’s intranet or bulletin
boards is known as job posting
- True or False?
Employee and testing and
selection
40.A reliable employment test will most likely
yield.
A. Consistent scores when a person takes two
alternate forms of the test
B. Improved scores when a person takes the
same test more than once in a single day
C. High scores when a person takes two
alternate forms of the test on different
occasions
D. Similar scores when two different people
are administered the test at different times
41.Which one of the following terms refers to
the accuracy with which test fulfills the function
for which it was designed?
A. Reliability
B. Validity
C. Expectancy
D. Consistency
42.Selection tests should be used as
supplements to other tools like interviews and
background checks.
True or False?
43.As part of the selection process for the
position at UPS, Jack has been asked to lift
weights and jump rope. Which one of the
following is most likely being measured by
UPS?
A. Motor ability
B. Personality
C. Cognitive
D. Interest
44.Carlos recently participated in a selection
test for a position at Northern Aeronautics. The
test measured Carlos’s finger dexterity and
reaction time, so it was most likely a(n).
A. Interpersonal skills
B. Cognitive skills
C. Physical abilities
D. Achievements
45.The Big Five personality dimensions include
all of the following except.
A. Neuroticism
B. Optimism
C. Extroversion
D. Conscientiousness

5. 46.Which of the following terms refers to
training candidates to performs several of the
job’s tasks and then assessing the candidate’s
performance prior to hire?
A. Achievement testing
B. Work sampling technique
C. Management assessment center
D. Miniature job training
47.Which one of the following is the primary
reason that firms? conduct background
investigations of job applicants?
A. Adhere to legal hiring practices
B. Limit the number of applicants
C. Uncover false information
D. Report criminals to police
48.A(n) ____________ is a multi-day
simulation in which candidates performs
realistic tasks in hypothetical situations and are
scored on their performance.
A. Work sampling event
B. Situational judgment test
C. Management assessment center
D. Applicant personality test
JOB ANALYSIS AND TALENT
MANAGEMENT PROCESS
49.In an effective talent management system,
an employee’s performance appraisal would
initiate training and development opportunities.
True or False?
50.Effective talent management focuses on
developing employee competencies that align
with strategic goals.
True or False?
51.All of the following types of information will
most likely be collected by a human resources
specialist through a job analysis except.
A. Work activities
B. Human behaviors
C. Performance standards
D. Employee benefits options
52.Which one of the following terms refers to
the procedure used to determine the duties
with job positions and the characteristics of the
people to hire for those positions?
A. Job description
B. Job specification
C. Job analysis
D. Job context
53.Jennifer, a manager at an engineering firm,
has been assigned the task of conducting a job
analysis. What should be Jennifer’s first step in
the process?
A. Deciding how the gathered information will
be used
B. Collecting data on job activities and working
conditions
C. Selecting representative job positions to
assess
D. Reviewing relevant background information
54.All of the following requirements are
typically addressed in job specifications except.
A. Desired personality traits
B. Required education levels
C. Necessary experience
D. Working conditions
55.Which one of the following indicates the
division of work within a firm and the lines of
authority and communication?
A. Process chart
B. Employee matrix
C. Organizational chart
D. Corporate overview
56.Which of the following is an example of
business process reengineering?
A. Using computerized systems to combine
separate tasks
B. Creating a visual chart for workflow
procedures
C. Assigning additional activities to new
employees
D. Developing employee skills and behaviors
57.While performing the fifth step of a job
analysis, it is essential to confirm the validity of
collected data with the
A. EEOC representative
B. HR manager
C. Legal departmen
D. Worker
58.Which of the following terms refers to
systematically moving workers from one job to
another?
A. Job rotation
B. Job enrichment
C. Job enlargement
D. Job adjustment

6. 59.Conducting the job analysis is the sole
responsibility of the HR specialist.
True or False
60.Jerome, a manager at an electronics
company, needs to gather job analysis
information from large number of employees
who performs similar work. Which one of the
following would be most appropriate for
Jerome?
A. Observing all employees
B. Interviewing the HR manager
C. Holding a group interview with a supervisor
D. Conducting telephone surveys of all
employees
61.One of the problems with direct observation
is ______, Which is when workers alter their
normal activities because they are being
watched.
A. Flexibility
B. Falsification
C. Reactivity
D. Diversion
62.Informal interviews provide quantitative job
analysis information, which is why they are
frequently used by managers who need to
determine the relative worth of a job for pay
purposes.
True or False
63.Joaquin records every activity in which he
participates at work along with the time it takes
himto complete each activity. Which of the
following approaches to job analysis data
collection is most likely being used at Joaquin’s
workplace?
A. Diaries
B. Interviews
C. Observations
D. Questionnaires
Training and Development
64.On Letitia’s first day of work at a software
firm, she attended a meeting with the HR
manager and other new employees. Letitia
learned about employee benefits packages,
personnel policies, and the structure of the
company. In which one of the following did
Letitia most likely participate?
A. Recruitment
B. Selection
C. Employee orientation
D. Employee development
65.Which one of the following is most likely
NOT one of the goals of a firm’s employee
orientation program?
A. Making new employees feel like part of a
team
B. Helping new employees become socialized
into the firm
C. Assisting new employees in selecting the
best labor union
D. Teaching new employees about the firm's
history and strategies
66.Employee orientation program range from
brief, informal introductions to lengthy, formal
courses.
True / False
67.Hiring highly-skilled employees with great
potential eliminates the need to provide
orientation and training.
True / False
68.The methods used to give new or present
employees the skills they need to perform their
jobs are called
A. Orientation
B. Training
C. Development
D. Management
69.__________ Identify the training employees
will need to future jobs.
A. Competency modeling
B. Performance analysis
C. Strategic training needs analysis
D. Screening
70.What is the first step in the ADDIE training
process?
A. Assessing the program's successes
B. Appraising the program's budget
C. Analyzing the training need
D. Acquiring training materials

7. 71.Amy, an accounting supervisor, has been
asked to provide training for her subordinates
about new tax laws. In order to motivate the
individuals who, attend her training session,
Amy should most likely do all of the following
except.
A. Use as many visual aids as possible during
the session
B. Provide an overview of the material to be
covered
C. Use new terminology and technical
concepts
D. Give information in logical, meaningful
section
72.Employers will most likely use all of the
following methods to identify training needs for
new employees except.
A. Analyzing job descriptions
B. Reviewing performance standards
C. Questioning current job holders
D. Conducting a work sampling
73.Training session should be half day of the
three-fourths day in length rather than a full
day, because of the learning curve goes down
late in the day.
True / False
74.Which one of the following would most likely
occur during the fourth step of the ADDIE
training process?
A. Holding on-the-job training sessions
B. Selecting employees for training
C. Preparing online training materials
D. Asking participants for feedback
75.Rebekah was hired soon after graduation
and assigned to complete a management
trainee program. She will move to various jobs
each month for a nine-month period of time.
Her employer is utilizing the __________ form
of training.
A. Job rotation
B. Understudy
C. Job expansion
D. Informal learning
76.A structured process by which people
become skilled workers through a combination
of classroom instruction and on-the-job training
is called.
A. Job instruction training
B. Programmed learning
C. Apprenticeship training
D. Coaching technique
77.Ian is currently being trained on the job and
is at the first step in the OTJ process, which
involves.
A. Showing the trainee how do the task
B. Verbalizing the steps of the task
C. Checking to make sure the task was
learned by the trainee
D. Familiarizing the trainee with equipment,
tools, and trade terms
78.When Job Consist of logical and sequence
of steps and are best taught step-by-step, the
most appropriate training method to use is.
A. Job instruction training
B. Apprenticeship training
C. Programmed learning
D. Job rotation
Performance Appraisal
79.Which one of the following terms refers to
the process of evaluating an employee’s
current and/or past performance relative to his
or her performance standards?
A. employee selection
B. performance appraisal
C. employee orientation
D. Organizational development
80.The primary purpose of providing employee
with feedback during a performance appraisal
is to motivate employees to.
A. Apply for managerial positions
B. Remove any performance deficiencies
C. Revise their performance standards
D. Enroll in work-related training programs
81.All of the following are reason for appraising
an employee’s performance except.
A. Correcting any work-related deficiencies
B. Creating an organizational strategy map
C. Determining appropriate salary and
bonuses
D. Making decisions about promotions
82.In most organizations, who is primarily
responsible for appraising an employee’s
performance?
A. Employee's direct supervisor
B. Company appraiser
C. Human resources manager
D. Employee's subordinates

8. 83.What are the first step of any performance
appraisal?
A. Giving feedback
B. Setting work standards
C. Making plans to provide training
D. Assessing the employee's performance
84.What usually occurs when employee rate
themselves for performance appraisal?
A. Ratings are reliable but invalid.
B. Ratings are subject to halo effects.
C. Ratings are higher than when provided by
supervisors.
D. Ratings are about the same as when
determined by peers
85.Which of the following terms refers to the
process of allowing subordinates to rate their
supervisor’s performance anonymously?
A. Supplemental evaluation
B. Upward feedback
C. Paired evaluation
D. Peer evaluation
86.Which of the following terms refers to a
performance appraisal based on surveys from
peer,supervisors, subordinates, and customers?
A. 360-degree feedback
B. Team appraisals
C. Upward feedback
D. Rating committee
87.Supervisors should provide employees with
feedback, development, and incentives
necessary to help employees eliminate
performance deficiencies or to perform well.
True / False
88.The HR department monitor the
performance appraisal system, but it is
typically not involved in rating employees.
True / False
89.In order to ensure that performance
appraisals are effective, Felicia, a line
supervisor, should make sure to schedule a
feedback session to address each
subordinate’s performance, progress, and
future development plans.
True / False
90.Which one of the following is the easiest
and most popular technique for appraising
employee performance?
A. Alternation ranking
B. Graphic rating scale
C. Forced distribution
D. Constant sum rating scale
91. Rolf, the supervisor of the manufacturing
department at a computer firm, is in the
process of evaluating his staff’s performance.
He has determined that 15% of the group will
be identified as high performers, 20% as above
average performers, 30% as average
performers, 20% as below average performers,
and 15% as poor performers. Which
performance appraisal tool has John chosen to
use?
A. Behaviorally anchored rating scale
B. Forced distribution
C. Alternation ranking
D. Paired comparison
92.Which term refers to ranking of employees
from best to worst on a trait or traits, choosing
highest that lowest until all are ranked?
A. Performance management
B. Paired comparison
C. Alternation ranking
D. Direction sharing
93.Management by objectives requires a
manager to set specific measurable,
organizationally relevant goals with each
employee and then periodically discuss the
employee’s progress toward these goals.
True / False

9. ADDIE Training Process
- Analysis
- Design
- Development
- Implementation
- Evaluation
BIG Five Personality (OCEAN)
- Oppenness
- Conscientiousness
- Extroversion
- Agreeableness
- Neuroticism
Labor Laws and Legislation
Labor Standard - Refer to the Philippine Law
that provides the minimum requirements
regarding work conditions, work hours, wages,
benefits and other employment conditions that
are being implemented by the management.
Labor Relations - The goal of labor relations
is to strike a proper balance between the
protection of worker rights versus the exercise
of management prerogatives. By the employer
in accordance with law and to achieve
industrial peace.
Section 3. Art. 13 - The state shall promote
the full protection of labor, local and overseas,
organized and unorganized and promote full
employment and equality of employment
opportunities for all. (Guarantee the right of all
workers to self-organization, they shall be
entitled to security of tenure.)
Presidential Decree 442 Labor Code
Article 3. Declaration of Basic Policy - The
state shall afford protection of labor, promote
full employment, ensure equal work
opportunities regardless of sex, race or creed.
Article. 4 Construction in favor of labor - All
doubts in the implementation and interpretation
of the provisions of this Code, including its
implementing rules and regulations, shall be
resolved in favor of labor.
Statutory Benefits of Workers
● There should be an employer and employee
relationship
● The four fold test:
- Selection and engagement of the
employee
- Payment of wages,
- Power of dismissal
- Control test (most important element)
if all of these are present then there is
an employer and employee relationship.
 Min wage - Lowest amount of
wage that an employer will pay to an
employee. (Floor bc the
employer and employee can negotiate to a
much higher wage)
>Exempted from paying min wages-distress
establishment, new business enterprises, retail
and service-not more than 10 employees,
establishment affected by natural calamity.
 Overtime, Holiday, Premium,
Night Shift, Differential pay - at least 25%
for overtime work
rendered on a holiday or rest day
> If it is holiday and at the same time rest day
of an employee it will be 50%
> Overtime is not presumed.
> Art. 93 COMPENSATION FOR REST DAY,
SUNDAY OR HOLIDAY
> Art. 86 Night Shift Differential, not less than
10% if u work between 10am to 6am
> Art. 94 Right to holiday pay
- Double pay or 200% if the employee work on
a holiday, 100% if not.
- Every worker shall be paid regular wage
during regular holiday except establishment
with less than 10 employees
 13th Month pay and Bonus PD
No. 851
>Not later than dec 24 every year
>1/12 of the basic salary of an employee within
the calendar year (multiply your basic salary by
the no. of months you have worked for the
entire year then divide it by 12)
 Service Leave,
Maternity Leave and Magna Carte for
women
 PD 442, Art 95.
Service Incentive Leave.
>Every employee who has rendered at least 1
year id service shall be entitled to a yearly
service incentive leave of 5 days with pay.

10. R.A No. 9710, Sec. 18. Special Leave
Benefits for Woman
> A woman employee who rendered at least 6
months for the last 12 months should be
entitled
to a special leave benefit for 2 months with full
pay based on her gross monthly compensation
following surgery caused by gynecological
disorders.
Paternity, Solo parent, VAWC Leave RA
8972: Solo parents welfare act of 1996
Section 8. Parental Leave. 7 days leave
every year for the solo parent who has
rendered
service of at least 1 year
RA No. 8187 Paternity Leave Act of 1996.
Sec. 2. 7 days with full pay for the first four
deliveries of a legitimate spouse.
RA 9262 Anti - violence against women and
their children act 0f 2004. Sec. 43 Entitled to
leave - paid leave absence up to 10 days in
addition to other paid leaves under Labor Code
and Civil Service Rules
RA No. 11210 Expanded Maternity Leave
>105 paid leave for live birth
>7 days leave transferable to the father (bukod
pa to sa paternity leave)
>15 days additional paid leave for Solo parent
under RA 9972
>30 days add. Leave without pay
>60 days paid leave by miscarriage, abortion
Retirement Pay Art. 287. Any employee may
be retired upon reaching the retirement age
established in the collective bargaining
agreement or other applicable employment
contract.
> Retirement entitled to ½ month salary for
every year of service, a fraction of 6 months
could
be considered as one whole year.
> 60 y/o or 65y/o
Separation Pay Art 283. Closure of
establishment and reduction of personnel.
>Written Notice to department of labor and
employment for at least 1 month.
>Separation pays to at least 1 month pay for
every yr. of service, whichever is higher.
>Exceptions: When the establishment is
closed due to serious financial causes, or the
company cannot recover.
SSS, Pag ibig, Philhealth.
R.A No. 11199 Social Security Act of 2018.
Section 2. Declaration Policy. Policy of the
state to establish, develop, promote and
perfect a
sound and viable tax-exempt social security
system suitable to the needs of the people
throughout the Philippines.
PD N0. 1752 as amended, home
development mutual fund law of 1980
> Sec. 2 - Policy of the RA of the Ph to
motivate the employed and other earning
groups to
better plan and provide for their housing needs
R.A 10606 National health insurance Act of
2013
> Sec. 2 Declaration of Principles and
Policies - to make essential goods, health and
other social services available to all people
Chapter 1: Introduction to Human Resource
Management
Objectives of Human Resource
Management
1.To ensure effective utilization of human
resources
2.To establish and maintain an adequate
organizational structure of relationship among its
members
3.To generate maximum development of human
resources
4.To ensure respect for human beings
5.To ensure reconciliation of individual/group goals
with those of the organization
6.To identify and satisfy the needs of individuals
Human Resource Management (HRM) – A
relatively new approach to managing people in any
organization.
4 Main Activities of HRM:
1. Acquisition
2. Development
3. Motivation
4. Maintenance of Human Resources
Features of HR Management
1. Inherent Part of Management – If a manager is
to get the best of his people, he must undertake
the basic responsibility of selecting people who will
work under him.
2. Pervasive Function – HR Management is not a
responsibility that a manager can leave
completely to someone else. However, he may
secure advice and help in managing people.

11. 3. Basic to all Functional Areas – Every manager
from top to bottom, working in any department
has to perform the personnel functions.
4. People Centered – It is concerned with all
categories of personnel from top to the bottom of
the
organization. Blue-collar workers (Working on
machines and engaged in loading, unloading, etc.)
White-collar workers (Clerical Employees,
Managerial and Non-managerial personnel,
professionals)
5. Personnel Activities or Functions – Includes
manpower planning, employment, placement,
training, appraisal and compensation of employees
6. Continuous Process – It must be performed
continuously if the organizational objectives are to
be achieved smoothly
7. Based on Human Relations – HR
Management is concerned with the motivation
of human resources. The managers should
give attention to the different needs,
perceptions and expectations of employees.
Functions of Human Resource
Management
1. Managerial Functions
Planning – steps taken in
determining in advance personnel
requirements, personnel
programs, policies, etc. After determining how
many and what type of people are required, a
personnel manager has to devise ways and
means to motivate them.
Organizing – organizing the
operative functions by designing structure of
relationship among
jobs, personnel and physical factors.
Personnel manager performs (a) preparation of
task
force, (b) allocation of work to individuals, (c)
integration of the efforts of the task force, (d)
coordination of work of individuals with that of
the department.
Directing – concerned with
initiation of organized action and stimulating
the people to work.
The personnel manager directs the activities of
people of the organization to get its function
performed properly.
Controlling – provides basic data
for establishing standards, makes job analysis
and
performance appraisal.
2. Operative Functions
Procurement of Personnel –
concerned with the obtaining of the proper kind
and number of
personnel necessary to accomplish
organizational goals.
Development of Personnel – this
has to do with the increasing skills of the
employees
necessary for proper job performance through
training.
Compensation to Personnel –
determination of adequate and equitable
remuneration of
personnel for their contribution to
organization’s objectives.
Maintaining Good Industrial
Relation – intended to reduce strife, promote
industrial peace,
provide fair deal to workers and establish
industrial democracy.
Record Keeping – personnel
manager collects and maintains information
concerned with the
staff of the organization.
Personnel Planning and
Evaluation – evaluation of performance,
personnel policy of an
organization and its practices, personnel audit,
morale, survey and performance appraisal.
Chapter 2: Human Resource Planning
Human Resource Planning can be defined as
the process of determining manpower
requirements
and the means for meeting those requirements
in order to carry out the integrated plan of the
organization.
Objectives of HR Planning
1. Ensure optimum use of human resources
currently employed;
2.Avoid balances in the distribution and all
allocation of human resources;
3.Assess or forecast future skill requirements
of the organization’s overall objectives;
4.Provide control measure to ensure
availability of necessary resources when
required;
5.Control the cost aspect of human resources;
6.Formulate transfer and promotion policies.

12. Human Resource Planning Activities
1. Forecasting - projecting future manpower
requirements
2. Inventory of Present Manpower
Resources - assessing the extent to which
these resources are
employed optimally
3. Anticipating Manpower Problems –
projecting present resources into the future
and comparing
them with the forecast of requirements to
determine their adequacy, both quantitatively
and
qualitatively.
4. Planning – preparation of the necessary
programs of requirements, selection, training,
development, utilization, transfer, promotion,
motivation and compensation to ensure that
future manpower requirements are properly
met.
Steps in Human Resource Planning
1. Analysis of Organizational Plans and
Objectives - Human resource planning is a
part of the overall plan of an organization.
Plans concerning technology, production,
marketing, finance, expansion and
diversification give an idea about the volume of
future work activity. Each plan can further be
analyzed into sub-plans and detailed programs.
It is also necessary to decide the time horizon
for which human resource plans are to be
prepared. The future organization structure
and job design should be made clear and
changes in the organization structure should
be examined so as to anticipate its manpower
requirements.
2. Forecasting Demand for Human
Resources - Human resource planning starts
with the estimation of the number and type of
personnel required at different levels and in
different departments.
3. Forecasting Supply of Human Resources
- to deal with allocation of persons to different
departments depending upon the work-load
and requirements of the departments. While
allocating manpower to different departments,
care has to be taken to consider appointments
based on promotions and transfers. Allocation
of human resources should be so planned that
available manpower is put to full use to ensure
smooth functioning of all departments.
4. Estimating Manpower Gaps - Net human
resource requirements or manpower gaps can
be identified by comparing demand and supply
forecasts. Such a comparison will reveal either
deficit or surplus of human resources in future.
Deficits suggest the number of persons to be
recruited from outside whereas surplus implies
redundant to be redeployed or terminated.
Similarly, gaps may occur in terms of
knowledge, skills and aptitudes. Employees
deficient in qualifications can be trained
whereas employees with higher skills may be
given more enriched jobs.
5. Matching Demand and Supply - It is one of
the objectives of human resource planning to
assess the demand for and supply of human
resources and match both to know shortages
and surpluses on both the side in kind and in
number. This will enable the human resource
department to know about overstaffing or
understaffing.
HR Planning Three Periods
1. The short-range or immediate future -
may refer to current situation and experiences
and may
even concern issues such as overtime and
replacements. If there has been previous
planning for
human resource such plans can serve as a
guide in the immediate future. If not, a
beginning should
be made at once.
2. The mid-range - has a different time span in
various companies. It can be as short as a few
months or as long as several years. Most
would agree upon a 2-3 years period as a mid-
range.
3. The long-range future - could be five years,
while 10 to 15 years span could be used for a
perspective plan. Long-range plans must be
made on the basis of various trends in the
economy and in the labor market, and on long-
term trends of production in the company.
HR Information System - HRIS is a system
that maintains, collect, and analyzes data
relating to human resources of the organization.
HRIS includes the information relating to
employees, their abilities, qualifications,
potentialities, creative instincts, age, pay
scales, various jobs in the organization, their
required skills and qualifications to do them,
the number of employees and executives
manning various positions, organizational
objectives, policies and procedures, etc.

13. Chapter 3: Recruitment and Selection
Process
Recruitment - Means search of the
prospective employee to suit the job
requirements as represented by job
specification- a technique of job analysis. It is
the first stage in selection, which makes the
vacancies known to a large number of people
and the opportunities that the organization
offers. In response to this knowledge, potential
applicants would write to the organization. The
process of attracting people to apply in called
recruitment.
Sources of Recruitment
1. Internal Sources - Refers to the recruitment
from within the company. The various internal
sources are promotion; transfer, past
employees and internal advertisements.
2. External Sources - Refers to the practice of
getting suitable persons from outside.
Casual Caller or Unsolicited
Applications - Can be claimed when the
organizations, which are regarded as good
employers, draw a steady stream of unsolicited
applications in their
offices
Media Advertisement - When
advertisement in newspapers or trade and
professional journals is generally used when
qualified and experienced personnel are not
available from other
sources
Employment Agencies - Employment
exchanges run by the Government are
regarded as a good source of recruitment for
unskilled, semi-skilled and skilled operative
jobs.
Management Consultants - They
maintain a data bank of persons with different
qualificationsand skills and even advertise the
jobs on behalf their clients to recruit the right
type of personnel.
Educational Institutions or
Campus Recruitment - Big organizations
maintain a close liaison with the universities,
vocational institutes and management
institutes for recruitment to various jobs
Recommendation - Applicants
introduced by friends and relatives may prove
to be a good
source of recruitment.
Labor Contractors - Workers are
recruited through labor contractors who are
they employees of the organization.
Telecasting - The detailed
requirements of the job and the qualities
required to do it are publicized along with the
profile of the organization where vacancy
exists. The use of T.V. as a
source of recruitment is less as compared to
other sources.
Merit of External Sources
1. Qualified Personnel - By using external
sources of recruitment the management can
make
qualified and trained people to apply for vacant
Jobs in the organization.
2. Wider Choices - When vacancies are
advertised widely a large number of applicants
from outside
the organization apply. The management has a
wider choice while selecting the people for
employment.
3. Fresh Talent - The insiders may have
limited talents. External sources facilitate
infusion of fresh
blood with new ideas into the enterprise. This
will improve the overall working of the
enterprise.
4. Competitive Spirit - If a company can tap
external sources, the existing staff will have to
compete with the outsiders. They will work
harder to show better performance.
Demerits of External Sources
1. Dissatisfaction among Existing Staff -
External recruitment may lead to
dissatisfaction and frustration among existing
employees. They may feel that their chances
of promotion are reduced.
2. Lengthy Process - Recruitment from
outside takes a long time. The business has to
notify the vacancies and wait for applications to
initiate the selection process.
3. Costly Process - It is very costly to recruit
staff from external sources. A lot of money has
to be spent on advertisement and processing
of applications.
4. Uncertain Response - The candidates from
outside may not be suitable for the enterprise.
There is no guarantee that the enterprise will
be able to attract right kinds of people from
external sources.

14. Interview - Is an oral examination of
candidates for employment. No selection
process is complete
without one or more interviews. Interview is the
most common and core method of both
obtaining
information from job-seekers, and decision-
making on their suitability or otherwise.
The effectiveness of the interview as a
screening device can be improved by taking
care of
certain aspects like the following:
● The interview should be based on a checklist
of what to look for in a candidate. Such a
checklist
could be based on proper job analysis. Each
critical attribute which the interview seeks to
evaluate
may be assigned specific weights.
● It is desirable to prepare a specific set of
guidelines for the interview.
● The interviewers need to train to evaluate
performance in the interview objectively. Also,
all
interviewers need to develop common
understanding about the criteria measures,
their purposes and
weights.
● The interviewers may use past behavior to
predict future behaviors and obtain additional
information to attempt such linkages more
meaningfully.
● There should be proper coordination
between the initial and succeeding interviews.
● The interview (even stress interview) should
be conducted in a related physical setting.
Background Investigation - The background
investigation in selection process may include
verification of reference from past teachers,
employers or public men; public men; police
verification;
and, medical examination.
Background verification is sought to guard
oneself against possible falsification by
applicant.
But given the acute skill shortages and
competitive pirating strategies of employers it
is possible for
some of them to give clean chit to those whom
they wish to get rid of and be unfair to those
whom
they are not prepared to lose.
Screening Strategies for HR
Screening - Is the process of choosing a
qualified person for specific role who can
successfully
deliver valuable contributions to the
organization.
1. Multistage Selection Strategy - This
combines a number of assessment tools as
part of the
process. The human resources department is
responsible for validating each assessment
tool
and ensuring that it is legitimately related to the
requirements of the open position.
Examples of different stages in a multistage
selection strategy:
a. Personality tests
b. Skills tests
c. Interview and sample work performance
This strategy is paired with either a conjunctive
or compensatory strategy.
2. Compensatory Selection Strategy - This
method administers all assessment tools to
applicants at the same time, or at least all of
them are administered before a candidate is
eliminated or selected.
Reference - Check As a selecting official, you
are responsible for conducting reference
checks prior to making a final selection.
Checking references before making a final
decision can save time, money, and effort,
since it reduces the likelihood of making an
inappropriate selection. Some applicants
provide false or exaggerated information.
Prepare a reference check form in advance
and write notes on it while completing a
reference check.
Chapter 4: Training & Development
Human Resources Development (HRD) -
Focuses on both training employees for their
current jobs and developing skills for their
future roles and responsibilities. HRD activities
include: training for managers, supervisors,
and teams; tuition reimbursement programs;
customer service training; performance
management; harassment prevention training;
360-degree reviews (multi-rater feedback
system); career coaching.
Objectives of Training and
Development in the Organization

15. 1. To impart to new entrants the basic
knowledge and skill they need for an intelligent
performance of
definite tasks;
2. To assist employees to function more
effectively in their present positions by
exposing them to the
latest concepts, information and techniques
and developing the skills, they will need in their
particular
fields;
3. To build up a second line of competent
officers and prepare them to occupy more
responsible
positions;
4. To broaden the minds of senior managers
by providing them with opportunities for an
inter-change
of experiences within and outside with a view
to correcting the narrowness of the outlook that
may
arise from over-specialization;
5. To impart customer education for the
purpose of meeting the training needs of
Corporations, which
deal mainly with the public. In a nutshell, the
objectives of training are to bridge the gap
between
existing performance ability and desired
performance.
Developing an Effective Employee Training
Program
1. Defining needs, goals and objectives -
Training (a performance improvement tool) is
needed
when employees are not performing up to a
certain standard or at an expected level of
performance.
A successful training needs analysis will
identify those who need training and what kind
of training is
needed. It is counter-productive to offer
training to individuals who do not need it or to
offer the wrong
kind of training. A Training Needs Analysis
helps to put the training resources to good use.
2. Define short- and long-term goals of training
3. Develop Individual training modules