Human Resourse Management

UNIT - 1

Nature of HRM :
HRM involves management functions like planning, organizing, directing and controlling.

It involves procurement, development, maintenance and management of human resource.

It helps to achieve individual, organizational and social objectives.

HRM is a mighty disciplinary subject. It includes the study of management psychology communication,
economics and sociology.

It involves team spirit and team work.

The scope of HRM refers to all the activities that come under the banner of HRM. The activities are as
follows

Human resources planning: – Human resource planning is a process by which the company to identify
the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with
this excess or shortage.

Job analysis design: – Another important area of HRM is job analysis. Job analysis gives a detailed
explanation about each and every job in the company. Based on this job analysis the company
prepares advertisements.

Recruitment and selection: – Based on information collected from job analysis the company prepares
advertisements and publishes them in the news papers. A number of applications are received after
the advertisement is published, interviews are conducted and the right employee is selected thus
recruitment and selection are yet another important areas of HRM.

Orientation and induction: – Once the employees have been selected an induction or orientation
program is conducted. The employees are informed about the background of the company. They are
told about the organizational culture and values and work ethics and introduce to the other
employees.
Training and development: – Every employee goes under training program which helps him to put up
a better performance on the job. Training program is also conducted for existing staff that have a lot
of experience. This is called refresher training. Training and development is one area were the
company spends a huge amount.

Performance appraisal: – Once the employee has put in around 1 year of service, performance
appraisal is conducted i.e. the HR department checks the performance of the employee. Based on
these appraisal future promotions, incentives, increments in salary are decided.

Compensation planning and remuneration: – There are various rules regarding compensation and
other benefits. It is the job of the HR department to look into remuneration and compensation
planning.

Motivation, welfare, health and safety: – Motivation becomes important to sustain the number of
employees in the company. It is the job of the HR department to look into the different methods of
motivation. Apart from this certain health and safety regulations have to be followed for the benefits
of the employees.

Industrial relations: – Another important area of HRM is maintaining co-ordinal relations with the
union members. This will help the organization to prevent strikes lockouts and ensure smooth
working in the company.

Functions of Human Resource Management :

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1.Planning

2.Organizing

3.Directing

4.Controlling

~~~~~~~~~~

Planning :

A manager must plan ahead in order to get things done by his subordinates. It is also important to
plan in order to give the organization its goals.

Also, planning helps establish the best procedures to reach the goals. Further, some effective
managers devote a substantial part of their time to planning.
With respect to the human resource department, planning involves determining the personnel
programs that can contribute to achieving the organization’s goals.

These programs include anticipating the hiring needs of the organization, planning job requirements,
descriptions, and determining the sources of recruitment.

Functions of Human Resource Management

Organizing :

After the human resource manager establishes the objectives and develops plans and programs to
achieve them, he needs to design and develop the organization’s structure to carry out the different
operations. Developing the organization’s structure includes:

Grouping of personnel activity into functions or positions

Assigning different groups of activities to different individuals

Delegating authority according to the tasks assigned and responsibilities involved

Coordinating activities of different employees

Directing :

The HR Manager can create plans, but implementing the plans smoothly depends on how motivated
the people are. The directing functions of HRM involve encouraging people to work willingly and
efficiently to achieve the goals of the organization. In simpler words, the directing functions of HRM
entail guiding and motivating people to accomplish the personnel programs.

The HRM can motivate the employees through career planning and salary administration by boosting
the employee’s morale, developing relationships, providing safety requirements, and looking after the
welfare of employees.
In order to do this effectively, the HRM must identify the needs of the employees and the means and
methods to satisfy them. Motivation is a continuous process as employees have new needs and
expectations when the old ones are satisfied.

Browse more Topics Under Human Resource Management

Features of HRM

Importance and Limitations of HRM

Role of Personnel Manager

Qualities of the HR Manager

Managerial Functions of HR Manager

Operative Functions of HR Manager

Recruitment Process

Selection Procedure

Training and Development

Methods of Training

Performance Appraisal

Traditional Methods of Appraisal

Modern Methods of Appraisal

HR Forecasting

Controlling :

Controlling is all about regulating activities in accordance with the plans formulated based on the
objectives of the organization. This is the fourth function of the HRM and completes the cycle. In this,
the manager observes and subsequently compares the results with the set standards.

HRM OBJECTIVES :
Further, he corrects any deviations that might occur. Controlling is one of the important functions of
HRM as it helps him evaluate and control the performance of the department with respect to
different operative functions. It also involves appraisals, audit, statistics.
The primary objective of HRM is to ensure the availability of competent and willing workforce for an
organization. Beyond this, there are other objectives too. Specifically, HRM objectives are four fold:
Societal, Organization, Functional and personal.

Personal Objectives:

To assist Employees in achieving their personal goals, at least in so far as these goals enhance the
individual’s contribution to the organization. Personal objectives of employees must be maintained,
retained and motivated.

Functional Objectives:

To maintain the contribution of department at an appropriate level organization should fulfill the
needs. Resources are wasted when HRM is either more or less sophisticated to suit the organizations
demands.

Organizational Objectives:

To recognize the role ofHRM in bringing about organizational effectiveness, HRM is not an end in
itselfbut it is only a mean to assist the organization with its primary objectives organization.

Societal Objectives:

To be ethically & socially responsible for the needs and challenges of society while minimizing the
negative impact of such demands upon the organization to use their resources for society’s benefits in
ethical ways may lead to restriction.

Other objectives:

Accomplish the basic organizational goals by creating and utilizing an able and motivated workforce.

To establish and maintain organizational structure and desirable working relationships among all the
members ofthe organization.

Develop co-ordination among individual and group within organization to secure the integration of
organization.

To create facilities and opportunities for individual or group development so as to match it with the
growth ofthe organization.
To attain an effective utilization of human resources in the achievement of rganizational goals.

To identify and satisfy individual and group needs by providing adequate and equitable wages,
incentives, employee benefits and social security and measures for challenging work, prestige,
recognition, security, status.

To maintain high employees morale and human relations by sustaining and improving the various
conditions and facilities.

To strengthen and appreciate the human assets continuously by providing training and development
programs.

To consider and contribute to the minimization ofsocio-economic evils such as unemployment, under
employment, inequalities in the distribution of income and wealth and to improve the welfare ofthe
society by providing employment opportunities to women and disadvantaged sections ofthe society.

To provide an opportunity for expression and voice management.

To provide fair, acceptable and efficient leadership.

To provide facilities and conditions of work and creation of favorable atmosphere for maintaining
stability of employment.

To create & utilize an able & motivated work force Establish & maintain sound organizational structure
Create facilities attain an effective utilization Identify & satisfy individual & group needs.

Maintain high employee morale Training & development Opportunity for expression Provide fair,
acceptable and efficient leadership Facilities and conditions.

1. ORGANIZATION OF HR DEPARTMENT {HUMAN RESOURCE MANAGEMENT} :

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

very few management layers in order to facilitate free flow of communication.

3. HR function are divided intothree principal group: HR Front Office HR Back

Office HR Centre Of Excellence
4. HR FRONT OFFICE Organization of personnel Department(known as HR front
office) is responsible for striking rapport with internal groups/client. A
designated official, generally, would be meeting the requirements of clients.

5. HR BACK OFFICEIt centralize traditional HR agenda such as HR administration,

payroll, welfare amenities, etc. The back office would take care of legal
requirements and regulatory framework. The back office people would be
responsible for keeping personnel files, records and data in an accessible form-
updated almost every week.

6. HR CENTERS OF EXCELLENCEThis independent department looks after

functions such as recruitments, training &development, compensation and
benefits, industrial relations etc. These centers works in the close coordination
with HR front office and HR back office while trying to get the best out of
employees through excellent HR practices and procedures.

7. HR DEPARTMENT IN LINEORGANISATIONLine structure is a type of structure

in which authority flows in direct line from a superior to a subordinate. Each
employee knows who is his superior and who has authority to issue order to
whom. Managers has full authority in their area of operations and are
responsible for final results. Chief Executive HR Manager Recruitment Training
Compensation Industrial Welfare Officer manager manager manager Relations

8. HR DEPARTMENT IN FUNCTIONALORGANISATIONIn any functional

organization, all activities of an organization is divided into different functions
such as production, marketing, finance etc. each functional area is headed by a
specialist who directs the activities of that area for the entire organization.
Every employee is required to report to his respective functional head. The
functional head has line authority over activities of his functional area.

9. FUNCTIONAL ORGANISATION Chief executive Personnel managerRecruitment

Training Welfare Compensation manager manager manager manager Assistant
Assistant Assistant Assistant

10. HR DEPARTMENT IN LINE AND STAFF ORGANISATIONTHE LINE AND STAFF

STRUCTURE COMBINES THE BENEFITS OF BOTH LINE ORGANIZATION AND
FUNCTIONAL ORGANIZATION. STAFF POSITIONS ARE CREATED TO ASSIST LINE
MANAGERS. THUS THE PERSONNEL DEPARTMENT OFFERS HELP AND ADVICES
ON PERSONNEL ISSUES TO ALL DEPARTMENTS WITHOUT VIOLATING THE UNITY
OF COMMAND PRINCIPLE.

11. Line and Staff organization line relationship staff relationship Chief
Executive Personnel Manager TrainingRecruitment manager Welfare
Compensation manager manager manager

12. HR DEPARTMENT IN A DIVISIONALSTRUCTUREThe role of a personnel

manager attached to the divisional office/branch office or factory of a
decentralized organization is particularly a different one. The personnel
managers at divisional/branch level is responsible to the local divisional/branch
manager. personnel manager at divisional/branch assist branch manager in
devising personnel programs and in the management of personnel at the
branch/division.

13. Personnel Department in a divisionalised organizational structure Chief

executive General manager Manager Human Marketing Production Resource
Finance manager Manager R&D manager managerManager south Manager
center Manager northDeputy manager Deputy manager Deputy manager
marketing production human resourceBranch manager Branch manager Branch
manager Nagpur Delhi Mumbai Office Office marketing Office production
Human resource

14. HR DEPARTMENT MATRIXSTRUCTUREIn a matrix organizational structure,

employees have two superiors, in that they are under dual authority. One chain
of command is functional and the other is a project team. Hence matrix
structure is referred to as a multi-command system. Thus, the team of
employees which comprise the personnel department have two superiors,i.e
personnel manager{vertical dimension} and project manager{horizontal
dimension}. Both dimensions of structure are permanent and balanced, with
power held equally by both the functional head and a project manager.
15. Personnel Department in a Matrixorganization Managing director General
manager Manager Manager Manager automobiles machines electrical
production marketing personnel finance Personne Heavy l machine group Light
Personnel industrial group machineAgricultural Personnel machine group.

Human Resource Management Skills :

Organization

One of the most important human resource management skills you

must have to successfully work in HR is organization. Everyone who
works in HR must be well-organized, must have strong time
management and be personally efficient in order to succeed. This
means that their office cannot be in shambles. Paperwork must
always be filed correctly, especially when it comes to personnel files
of employees.

Negotiation

The second essential human resource management skill that all HR

professionals need to be successful is that of the ability to negotiate.
When negotiation rolls around when an offer of employment has
been extended, there typically are two differing sides. A strong HR
professional will be able to work with both sides so an agreement can
be reached that makes everyone involved happy.
Problem Solving and Conflict Management :

The third essential human resource management skill on our list is a

combination of two items; problem solving and conflict management.
It is a given that not every single employee in your office will get along
with their co-workers or their managers. This means that at some
point, you will need to solve problems or manage conflicts. The most
effective HR manager will be able to ensure that employees work
together in a civil manner so work can be completed on-time and with
high quality.

Communication:

Communication is key in every single workplace, but it is very

important in the skillset of the HR professional. If an HR manager
cannot communicate to upper-level managers, to employees and to
shareholders, then the company will not succeed. The communication
done by HR managers is not one-fold. There are many methods of
communication used by HR managers today. These include writing,
speaking in front of small and large groups of people and through
social media.

Multitasking
Multitasking is the fifth essential skill needed by HR managers in
order to be successful today. The HR manager is inundated with a
variety of issues, questions and requests on a daily basis. Some of
them might relate to others and some will be completely different
issues altogether. HR managers must know how to adapt to change in
the office if they want to be successful. This is part of multitasking
because they will need handle an issue with an employee while also
implementing a new policy from the higher-ups.

As you can see, working in HR is tough. If you have any of the skills
mentioned in this post, you should have no trouble at all succeeding
in an HR role.

Administrative expert :
Administrative tasks remain a major part of the HR role. Administrative duties
involve areas like employee leave, absence, absence files, the in- and outflow of
employees, payroll and other topics.

Despite the rise of digital HR and the increase in automation of HR tasks,

administrative duties still haven’t disappeared (yet). They are mentioned as an
integral part of the job in many of the job postings. Being an administrative
expert helps in entering data in a precise manner.
HRM knowledge and expertise :

Unsurprisingly, HRM knowledge and expertise is also

mentioned as an essential HR skill. Previous work experience,
or an educational background in Human Resource
Management or Industrial- and Organizational Psychology are
very helpful.

HRM knowledge helps in doing most of the other skills and

competencies mentioned in this article. It helps to understand
recruitment, selection, absence procedures, data reporting,
and other personnel processes.

An educational background in psychology or HRM often also

helps to develop the soft skills that are helpful in
communication and coaching.

Proactivity

Proactivity is often considered more of a personality trait than a skill. However,

it is certainly something you can develop over time. As an HR professional, you
are the connection between the employer and the employee, therefore
proactivity can help you in spotting potential problems early and preventing
them from escalating.

In line with this, proactive Human Resource Management is preferred over

reactive HRM.

Proactive HRM helps to plan and align the core HR tasks in a way that offers the
most value to the business. We recently published an article about this called
Strategic Human Resource Management.

5. Advising

One of the key HR skills is advising different stakeholders. You need to able to
advise both employees, line managers, and senior managers on personnel issues.

These issues can be very operational, for example creating a re-integration plan
for an employee or helping a senior manager with the formulation of an email
to the department. More tactical issues are the organization and advising in
restructuring efforts. Strategic advice involves the alignment of HR practices to
align more with the business.

This advice also has to be communicated. This is where the previously

mentioned communication skills and coaching skills come in.

6. Coaching
Coaching skills are helpful when it comes to one-on-one or group sessions to
spread information or train people. This happens in training and development
situations, but also in onboarding, re-integration, conflict resolution, and in
assisting frontline managers with people issues.

These coaching skills are most often developed on-the-job or in external

coaching training.

7. Recruitment and selection

Another often mentioned HR skill (obviously) involves recruitment and selection.

Finding qualified candidates, selecting the best, and exploring if there’s a match
between the candidate, the company (culture), and the manager is one of the
most important HR tasks.

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HOMEPAGEGENERAL HR
GENERAL HR
The 12 HR Skills Every HR Generalist Needs (with Infographic)
HR Skills HR Generalists Need
HR professionals need different skills to do their work well.
We’ve analyzed dozens of HR generalist vacancies and listed
the 12 most important Human Resources skills and
competencies listed in those. This article will provide you with
an overview of the most sought-after skills in HR. The skills
are listed in no particular order!

1. Communication skills
The most often mentioned skill in HR job openings are
communication skills. Communication is essential in Human
Resource Management, as the HR professional is the link
between the business and the employee. On the one hand,
you are an activist for employees, and on the other hand, you
represent the employer.

This requires great communication skills.

In addition to this role, you are also a source of information

for employees. When they have questions regarding taking a
day off or any other employment issue, they will come to you.
Being able to efficiently handle their questions and complaints
is key to most generalist roles.

2. Administrative expert
Administrative tasks remain a major part of the HR role.
Administrative duties involve areas like employee leave,
absence, absence files, the in- and outflow of employees,
payroll and other topics.

Despite the rise of digital HR and the increase in automation

of HR tasks, administrative duties still haven’t disappeared
(yet). They are mentioned as an integral part of the job in
many of the job postings. Being an administrative expert helps
in entering data in a precise manner.

3. HRM knowledge and expertise

Unsurprisingly, HRM knowledge and expertise is also
mentioned as an essential HR skill. Previous work experience,
or an educational background in Human Resource
Management or Industrial- and Organizational Psychology are
very helpful.

HRM knowledge helps in doing most of the other skills and

competencies mentioned in this article. It helps to understand
recruitment, selection, absence procedures, data reporting,
and other personnel processes.

An educational background in psychology or HRM often also

helps to develop the soft skills that are helpful in
communication and coaching.

4. Proactivity
Proactivity is often considered more of a personality trait than
a skill. However, it is certainly something you can develop
over time. As an HR professional, you are the connection
between the employer and the employee, therefore
proactivity can help you in spotting potential problems early
and preventing them from escalating.

In line with this, proactive Human Resource Management is

preferred over reactive HRM.

Proactive HRM helps to plan and align the core HR tasks in a

way that offers the most value to the business. We recently
published an article about this called Strategic Human
Resource Management.
5. Advising
One of the key HR skills is advising different stakeholders. You
need to able to advise both employees, line managers, and
senior managers on personnel issues.

These issues can be very operational, for example creating a

re-integration plan for an employee or helping a senior
manager with the formulation of an email to the department.
More tactical issues are the organization and advising in
restructuring efforts. Strategic advice involves the alignment
of HR practices to align more with the business.

This advice also has to be communicated. This is where the

previously mentioned communication skills and coaching skills
come in.

Coaching
Coaching skills are helpful when it comes to one-on-one or
group sessions to spread information or train people. This
happens in training and development situations, but also in
onboarding, re-integration, conflict resolution, and in assisting
frontline managers with people issues.

These coaching skills are most often developed on-the-job or

in external coaching training.

Recruitment and selection

Another often mentioned HR skill (obviously) involves
recruitment and selection. Finding qualified candidates,
selecting the best, and exploring if there’s a match between
the candidate, the company (culture), and the manager is one
of the most important HR tasks.

HRIS knowledge
Human Resource Information Systems are the digital
counterpart of the soft-side of Human Resource Management.
Most information regarding hiring, performance evaluation,
payroll, rewards and benefits, and more are registered in one
or more HRIS.
Large organizations usually have standard providers like SAP
(with SuccessFactors) or Oracle. Smaller companies work with
smaller providers. Knowledge of an HRIS is a prerequisite for
most senior HR jobs and one of the top technology skills HR
professionals need today.

It’s hard to understand these systems without having hands-

on experience in them. They are, however, relatively simple
and intuitive to work with.

Intercultural sensitivity and language skills :

This HR skill depends on the specifics of the organization.
Especially for larger multinational companies, intercultural
sensitivity is a must. When you’re in touch with managers and
employees in different countries, you need to be aware of
intercultural differences.

For example, practices for managing and retaining people can

differ tremendously between cultures. In India, it is common
to get a promotion every single year, while in the Western
world this happens on average every 3-5 years.
Similarly, it is not uncommon for Chinese workers to travel to
their birthplace for Chinese New Year and – unannounced –
never come back to your factory in the new year because they
are now working somewhere else.

These cultural differences will impact how you try to hire,

retain, and promote people. There are also communication
differences with regard to evaluating people. Israelis, Russians,
and the Dutch are very direct whereas Japanese and South
East Asian countries are much more indirect.

Using the wrong communication style may result in your

message not being perceived as important – or risks offending
people from more indirect cultures.

Analytically driven and oriented :

Skills related to data-driven working and analytics have
emerged rapidly in the last five years. Most HR generalists are
now required to be analytically-driven and oriented.

There’s a push through all departments to leverage the power

of data analytics to make better decisions. This can involve
the use of complicated predictive analytics on HR data, or the
much simpler use of data to make better decisions. The latter
is often referred to as evidence-based HR.

HR reporting skills :
As part of being more analytically driven and oriented, HR
reporting skills are increasingly required too. These skills
include the ability to create, read, and interpret HR reports
using data coming from different Human Resource
Information Systems.

Reporting on key metrics is key to advising managers and

employees, create better people policies, and make otherwise
more evidence-based decisions.

Teamwork :
Teamwork is one of those HR skills that is impossible to avoid.
As an HR professional, you’re expected to work together with
your colleagues in HR and with managers in the organization.
Working together internally by actively aligning HR activities
benefits both the organization and HR.
Wrapping up :
Well, there you have it, a concise overview of the 12 most
sought-after HR skills. Of course, if you think we missed one,
please do share them with us in the comments below.

Human Resource Management Models :

Human Resources models help to explain the role

of HR in the business. In this article, we will go
over the 5 most practical HR models. These models
enable us to explain what HR’s role is, how HR
adds value to the business, and how the business
influences HR.

The Standard Causal Model of HRM :

The best-known HR model is the Standard Causal
Model of HRM. The model is derived from many
similar models published throughout the 90’s and
early 2000’s. The model shows a causal chain that
starts with the business strategy and ends, through
the HR processes, with (improved) financial
performance.
The model thus shows how HR activities that are
aligned with organizational strategy lead to
business performance. According to this model, HR
will only be effective if its strategy is aligned with
business strategy (in line with the best-fit theory).
HR strategy is thus derived from the overall
strategy.

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HOMEPAGEGENERAL HR

GENERAL HRHR ANALYTICS

5 Human Resources Models Every HR Practitioner Should Know

Human Resources Models

Human Resources models help to explain the role of HR in the business. In this
article, we will go over the 5 most practical HR models. These models enable us
to explain what HR’s role is, how HR adds value to the business, and how the
business influences HR.

The 5 HR models that we will discuss are:

The Standard Causal Model of HRM

The 8-box model by Paul Boselie

The HR value chain

The HR Value Chain Advanced

The Harvard Framework for HR

Ready to learn? Here are the 5 best known Human Resources Models.

1. The Standard Causal Model of HRM

The best-known HR model is the Standard Causal Model of HRM. The model is
derived from many similar models published throughout the 90’s and early
2000’s. The model shows a causal chain that starts with the business strategy
and ends, through the HR processes, with (improved) financial performance.

AIHR-Standard-Causaul-Model-for-Human-Resources
The model thus shows how HR activities that are aligned with organizational
strategy lead to business performance. According to this model, HR will only be
effective if its strategy is aligned with business strategy (in line with the best-fit
theory). HR strategy is thus derived from the overall strategy.

Data-driven HR starts by creating and implementing a set of relevant HR metrics

that help you determine the efficiency and impact of the workforce and HR
department.

The HR practices follow the HR strategy. Examples include hiring, training,

appraisal, and compensation. These HR practices lead to certain outcomes.
Examples include commitment, quality output, and engagement.

These HRM outcomes lead in turn to improved internal performance. Examples

include productivity, innovation, and quality. These outcomes lead to financial
performance (e.g. profits, financial turnover, better margins, and ROI).

Two interesting relationships are the unmediated HRM effect, which shows that
some HR practices can directly lead to improved internal performance. For
example, a good training can directly result in better performance, without
necessarily influencing HR outcomes.

The reversed causality in the model shows that sometimes a stronger financial
performance leads to more investments in HR practices and better HR outcomes.
When performance is strong, employees are often more engaged (an HR
outcome).

This shows that the relationships in the model are not always unidirectional. In
general, however, this Human Resources model shows how HR strategy is
formulated and what the impact is of HR on internal processes and financial
outcomes of the business.

The 8-box model by Paul Boselie :

A different HR model that’s often used to model what we do
in HR, is the 8-box model by Paul Boselie. The 8-box model
shows different external and internal factors that influence
the effectiveness of what we do in HR.

First of all, you see the external general market context, the
external population market context, the external general
institutional context, and the external population institutional
context. These are external forces that influence how we do
HR.

For example, if there is a shortage of certain skills in the

market, this influences how we do our sourcing, recruiting,
and hiring, compared to when there’s an abundance of
qualified workers. The institutional context also changes:
legislation impacts the way we work in HR (e.g. the day-to-day
impact of HR) while trade unions and work councils limit what
we can do.
The core process in the middle starts with the configuration.
The company’s history, culture and the technology used are
all factors that influence how we communicate in HR, what
we want to achieve, and how effective we are in our HR
policies. All these factors influence our HR strategy.
The HR value chain
The HR value chain is one of the best-known models in HR. It
is based on the work of Paauwe and Richardson (1997) and
creates a nuance on the models above in regards to how HR
operates.

According to the HR value chain, everything we do (and

measure) in HR can be divided into two categories: HRM
activities and HRM outcomes.

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HOMEPAGEGENERAL HR
GENERAL HRHR ANALYTICS
5 Human Resources Models Every HR Practitioner Should
Know
Human Resources Models
Human Resources models help to explain the role of HR in the
business. In this article, we will go over the 5 most practical
HR models. These models enable us to explain what HR’s role
is, how HR adds value to the business, and how the business
influences HR.

The 5 HR models that we will discuss are:

The Standard Causal Model of HRM

The 8-box model by Paul Boselie
The HR value chain
The HR Value Chain Advanced
The Harvard Framework for HR
Ready to learn? Here are the 5 best known Human Resources
Models.
1. The Standard Causal Model of HRM
The best-known HR model is the Standard Causal Model of
HRM. The model is derived from many similar models
published throughout the 90’s and early 2000’s. The model
shows a causal chain that starts with the business strategy
and ends, through the HR processes, with (improved) financial
performance.

AIHR-Standard-Causaul-Model-for-Human-Resources

The model thus shows how HR activities that are aligned with
organizational strategy lead to business performance.
According to this model, HR will only be effective if its
strategy is aligned with business strategy (in line with the
best-fit theory). HR strategy is thus derived from the overall
strategy.

These HRM outcomes lead in turn to improved internal

performance. Examples include productivity, innovation, and
quality. These outcomes lead to financial performance (e.g.
profits, financial turnover, better margins, and ROI).
Two interesting relationships are the unmediated HRM effect,
which shows that some HR practices can directly lead to
improved internal performance. For example, a good training
can directly result in better performance, without necessarily
influencing HR outcomes.

The reversed causality in the model shows that sometimes a

stronger financial performance leads to more investments in
HR practices and better HR outcomes. When performance is
strong, employees are often more engaged (an HR outcome).

This shows that the relationships in the model are not always
unidirectional. In general, however, this Human Resources
model shows how HR strategy is formulated and what the
impact is of HR on internal processes and financial outcomes
of the business.

2. The 8-box model by Paul Boselie

A different HR model that’s often used to model what we do
in HR, is the 8-box model by Paul Boselie. The 8-box model
shows different external and internal factors that influence
the effectiveness of what we do in HR.

First of all, you see the external general market context, the
external population market context, the external general
institutional context, and the external population institutional
context. These are external forces that influence how we do
HR.

For example, if there is a shortage of certain skills in the

market, this influences how we do our sourcing, recruiting,
and hiring, compared to when there’s an abundance of
qualified workers. The institutional context also changes:
legislation impacts the way we work in HR (e.g. the day-to-day
impact of HR) while trade unions and work councils limit what
we can do.

AIHR-8-box-model-by-Paul-Boselie-93K

The core process in the middle starts with the configuration.

The company’s history, culture and the technology used are
all factors that influence how we communicate in HR, what
we want to achieve, and how effective we are in our HR
policies. All these factors influence our HR strategy.

The HR strategy consists of six parts:

Intended HR practices:
The intention we have with our recruitment, training, and
other practices matters but this model shows it’s only a
starting point.
Actual HR practices:
We can have great intentions but the execution of HR
practices is a cooperation between HR and the manager.
When the manager decides to do things differently, the
intention can be nice but the actual practices can be very
different.
Perceived HR practices:
This is how the employee perceives what’s going on in the
organization. HR and the manager can do their absolute best
but if their activities are perceived in a different way than
they were intended and actually done, the perception will not
mirror the actual HR practices.
HR outcomes:
The perceived HR practices (hopefully) lead to certain HR
outcomes. These are similar to the ones in the Standard
Causal Model of HR, described above.
HR outcomes lead to critical HR goals (i.e. cost-effectiveness,
flexibility, legitimacy, and so on), which in turn leads to
ultimate business goals (i.e. profit, market share, market
capitalization – all related to the viability of the organization,
and other factors that help to build a competitive advantage).
3. The HR value chain
The HR value chain is one of the best-known models in HR. It
is based on the work of Paauwe and Richardson (1997) and
creates a nuance on the models above in regards to how HR
operates.

According to the HR value chain, everything we do (and

measure) in HR can be divided into two categories: HRM
activities and HRM outcomes.
HRM activities are day-to-day activities, including recruitment,
compensation, training, and succession planning. These
activities are often measured using HR metrics. These are so-
called efficiency metrics. The cheaper we hire and the faster
we train, the better.
HRM outcomes are the goals we try to achieve with the HRM
activities. We recruit, we train, and we compensate to achieve
certain goals/ outcomes. These outcomes include employee
satisfaction, motivation, retention, and presence.
If we just focus on measuring HRM activities, we will
automatically focus on reducing costs (i.e. maximizing
efficiency). However, we should instead focus on HRM
outcomes as this helps to align our processes with our goals.

3.HR-VALUE-CHAIN

For example, we would rather spend a few days longer on

hiring a new employee (time to hire, an efficiency metric) if
this person will be a better fit in the company (quality of hire,
an outcome metric). The goal should be to get the best person
in the right position, not to cut corners and hire someone as
cheaply and quickly as we can. This shows why we should
focus on measuring outcomes instead of activities.

When HRM activities and HRM outcomes hit their marks, they
should lead to better performance. This means that when we
recruit the right people, send people to the right training
programs, and retain our key players, the company’s
performance increases.

Literature also shows a different effect: when company

performance is higher, HRM activities increase as well. This is
because more profitable companies usually invest more in HR
programs, including HR software and learning & development
opportunities for their people.

4. The HR Value Chain Advanced

We’ve researched a lot of the literature but we can’t find an
original source for this model. This model is very similar to the
HR value chain but with two key differences.

First, the organizational performance is defined in the

balanced scorecard. The balanced scorecard contains the key
performance indicators from a financial perspective, a
customer perspective, and a process perspective. These are
integrated into the HR value chain. This document helps to
align and show the added value of HR to the business.
Second, the model starts with a number of HR enablers. These
enablers are key for what HR is doing in the business. This
includes HR systems, budget, capable professionals, and other
key elements. The thinking is that these enablers need to be
present in order for the value chain to operate effectively.

If HR lacks well-trained professionals, if the budget is low, or if

the systems are outdated and hamper innovation, HR will be
less efficient in reaching its HR outcomes and business
outcomes.

AIHR-The-Advanced-HR-Value-Chain

5. The Harvard Framework for HRM

The Harvard framework for HRM is an HR model comprised of
five components.

The model starts, on the left, with stakeholder interest. These

stakeholders include shareholders, management, employee
groups, government, and more. These interests define the
HRM policies.
At the same time, situational factors influence these interests.
Situational factors include workforce characteristics, unions,
and all the other factors that were also listed in the 8-box
model.
Situational factors and stakeholder interest influence HRM
policies. These include the core HR activities, like recruitment,
training, and reward systems.
When done well, HRM policies lead to positive HRM outcomes.
These include the previously mentioned retention, cost-
effectiveness, commitment, and competence.
These positive HRM outcomes lead to long-term
consequences. These can be individual, organizational, and
societal.
The Harvard framework is an HR model that takes a more
holistic approach to HR, including different levels of outcome

A final note on Human Resources models :

This article lists the 5 Human Resources models you should
know. I want to end with a note of caution. Brilliant
academics have created different models that sometimes are
similar, and sometimes quite different. However, models are
never complete.

A model is by definition a simplification of reality and this

holds true for all the HR models we discussed above. This is
also positive: a model can help us show what we need to do
to get the desired outcome.

I hope you enjoyed this overview of 5 HR models and if

you want to stay up-to-date with the newest in HR,
subscribe to our newsletter!

All these models – and more! – are explained in the

Academy to Innovate HR, specifically the Strategic HR
Metrics course.

Evolution of Human Resource Management :

~~~~~~~~~~~~~~~~~~~~~~~~~~~
Human Resource Management in its simplest
definition means management of organization’s
manpower or workforce or human resources.

Evolution of HRM

The evolution of the concept of Human Resource

Management is presented below

Period before industrial revolution – The society

was primarily an agriculture economy with limited
production. Number of specialized crafts was
limited and was usually carried out within a village
or community with apprentices assisting the
master craftsmen. Communication channel were
limited.
Period of industrial revolution (1750 to 1850) –
Industrial revolution marked the conversion of
economy from agriculture based to industry based.
Modernization and increased means if
communication gave way to industrial setup. A
department was set up to look into workers
wages, welfare and other related issues. This led to
emergence of personnel management with the
major task as

– Worker’s wages and salaries

– Worker’s record maintenance

– Worker’s housing facilities and health care

An important event in industrial revolution was

growth of Labour Union (1790) – The works
working in the industries or factories were
subjected to long working hours and very less
wages. With growing unrest , workers across the
world started protest and this led to the
establishment of Labour unions. To deal with
labour issues at one end and management at the
other Personnel Management department had to
be capable of politics and diplomacy , thus the
industrial relation department emerged.

Post Industrial revolution – The term Human

resource Management saw a major evolution after
1850. Various studies were released and many
experiments were conducted during this period
which gave HRM altogether a new meaning and
importance.

A brief overview of major theories release during

this period is presented below
Frederick W. Taylor gave principles of scientific
management (1857 o 1911) led to the evolution of
scientific human resource management approach
which was involved in
– Worker’s training

– Maintaining wage uniformity

– Focus on attaining better productivity.

Hawthorne studies, conducted by Elton Mayo &

Fritz Roethlisberger (1927 to 1940). – Observations
and findings of Hawthrone experiment shifted the
focus of Human resource from increasing worker’s
productivity to increasing worker’s efficiency
through greater work satisfaction.
Douglas McGregor Theory X and Theory Y (1960)
and Abraham Maslow’s Hierarchy of needs ( 1954)
– These studies and observations led to the
transition from the administrative and passive
Personnel Management approach to a more
dynamic Human Resource Management approach
which considered workers as a valuable resource.
As a result of these principles and studies , Human
resource management became increasingly line
management function , linked to core business
operations. Some of the major activities of HR
department are listed as-

Recruitment and selection of skilled workforce.

Motivation and employee benefits
Training and development of workforce
Performance related salaries and appraisals.
Strategic Human Resource Management Approach
With increase in technology and knowledge base
industries and as a result of global competition ,
Human Resource Management is assuming more
critical role today . Its major accomplishment is
aligning individual goals and objectives with
corporate goals and objectives. Strategic HRM
focuses on actions that differentiate the
organization from its competitors and aims to
make long term impact on the success of
organization.

Careers in Human Resources Management :

Job titles define your level in the
organization hierarchy. They also indicate
your role in the organizational chart.
Hence, for a fresher the job designation
matters because it is the point from where
they will look forward to the growth in
coming 5 to 10 years. Here are some
popular job titles that are seen in the field
of HR management.

HR Generalist
HR recruiter
HR specialist
Compensation Manager
Employee Relations Manager
Training and Development Manager
Change consultant
Technical Recruiter.
Here are some examples of careers in
human resources management to help you
choose the path that is best for you:

Human resources assistant

Benefits administrator
Payroll specialist
Training coordinator
Compensation specialist
Training manager
HRIS specialist
Employee relations manager
Benefits manager
Human resources manager.
Reasons to Study Human Resource
Management :
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
A Human Resources department is a vital part of any large
business, handling a vast array of tasks from recruiting new
employees, conducting interviews, dealing with conflict
resolution, and managing the holiday allowance, benefits and
payroll for existing employees. There are many routes into a
career in HR, however the safest route for securing
employment in this field is to do a HR specific course such as a
degree, postgraduate course, evening diploma or online
course.

Not only will a HR qualification help you to get on the career

ladder, there are many other reasons why studying HR can be
beneficial.

1. JOB DIVERSITY
Studying a HR course opens doors and not just in the field
itself. The subjects you undertake lend themselves to a variety
of career paths and job positions in human resource
management and beyond. Managing people and client
relations is an important skill to acquire in business, and this is
just one aspect of HR that you can apply to any job. Other
useful skills you will learn include organisation, administration,
multitasking, presentations, reporting and communication.

2. JOB SATISFACTION
There are numerous things to expect from a career in human
resource, but job satisfaction being a prominent factor.
Satisfaction with the work that we do is one of the most
important factors for employees when choosing a job, and
there is plenty of job satisfaction to be found from working in
HR. Even in a junior position you will see the direct results of
your work very quickly, and you will be able to measure the
positive impact you have made on the workplace. Highlights
may include offering someone a job position within the
company, promoting from within, improving salary and
benefits, introducing processes and procedures to improve
staff retention and boost staff morale, and training and
coaching employees.

3. WORKING WITH PEOPLE

A HR degree or postgrad can be a big plus if you enjoy meeting
new people and working alongside clients, colleagues and
senior HR management. Working with people is a huge part of
any HR role, and so getting to grips with the psychology of
human nature will be very beneficial to you in this career.
From interview techniques to conflict resolution, you will
become an expert at managing staff relations, which will
stand to you throughout any aspect of business and life.

4. OPPORTUNITIES TO PROGRESS
Many important decisions are formed by HR departments and
it is important to remember that this is a responsibility-laden
role from the get go. If this is something you are comfortable
with you can do very well and find success fast. Senior HR
positions will pay generously because of the level of authority
involved which is another great benefit to studying this
discipline.

benefits of studying human resource management :

When a potential new employee is being interviewed, human
resource professionals assess the candidate against a list of
key skills and personal characteristics needed for the job. It’s
time to turn the tables and see what that list of key attributes
would look like for an human resources professional.

Whether you decide to do a certificate, diploma or degree in

human resources management, it offers you a broader suite of
knowledge that’ll increase your skills and understanding. If
you want to be even more successful in your career, then
doing a postgraduate course might help. You’ll also have the
option to do a lot of short courses in how to work with people,
conflict resolutions, and so on. As a human resources
professional, having good people skills and the ability to
communicate effectively is a bonus.

Many organisations claim that their employees are their most

valuable asset. And for this reason, effective management of
human resources is essential for every company. Human
resources helps in structuring teams, it builds the
organisations culture and it helps people with engagement
and development. Human resource management creates a lot
of difference in enhancing the productivity of the employees.
At the heart of every successful business lies the human
resources team who drive all aspects of staff management.
Here are a few benefits human resource professionals bring to
the workplace.

Improve employee turnover

High employee turnover hurts a company’s bottom line. It

cost twice as much as a current employee’s salary to find and
train a new recruit. As an human resource professional, you’ll
know how to hire the right people for the company from the
start. Interview candidates carefully, not just to ensure they
have the right skills but also to check that they fit the
company’s culture. It’s important that you outline the right
compensation and benefits too. Human resource
professionals also need to pay attention to employee’s
personal needs. You’ll need to discuss clear career paths too
as employees would like to know how they can grow within
the company. Human resource professionals usually only see
employees when there are problems but to reduce employee
turnover they will regularly visit staff members and enquire if
they are okay and happy.
Conflict resolutions

Workplace conflict is somewhat inevitable as employees have

different personalities, lifestyles and work ethic. While doing
the human resource management course, you’ll be taught
how to handle conflict in the workplace and how to resolve it.
You’ll also be taught how to handle the situation as
professionally as possible. It doesn’t matter whether the
conflict arises between employees or an employee and
someone in management, you should be able to assist both
parties equally and not choose sides.

Employee satisfaction

Human resource specialists are usually charged with the

responsibility of determining employee satisfaction. As a
human resource management student, you’ll learn how to set
up surveys, focus groups and interview strategies to help you
determine whether employees are content or not. Human
resource professionals determine what the underlying causes
are for employee dissatisfaction and they address those issues
and motivate staff members with creative solutions. They try
to find out what exactly these problems are that employees
are facing and look for ways to assist them where needed.

Improve employee performance

Human resources teams develop performance management

systems. If a company doesn’t have an human resource
professional, candidates can easily get a job without having
the necessary skills and expertise for the position. And for this
reason, human resources is needed in every workplace. With
the line-manager, you’ll have to give employee performance
reviews on an annual basis. Be open about their
accomplishments and things you think they could have done
better.

Training and development

Human resource departments conduct needs assessments for

employees to determine the type of skills training and
employee development programmes that are required for
improvement and additional qualifications. Every startup or
company in a growth phase can benefit from identifying
training needs for its staff. It’s less expensive to hire
additional staff or more qualified candidates. This can also
reduce your company’s employees turnover and improve
employee retention.

Helps with budget control

It’s critical for human resources to define as many processes

as specific projects, be it the 360-feedback review, the annual
pay review or the development of a new program. As an
human resource professional, it’s important and helpful to
understand the broad budget of a project. Human resources
curb excessive spending through developing methods for
trimming workforce management costs. Human resource
professionals also ensure competitive and realistic wage
setting based on studying the labour market, employment
trends and salary analysis based on job functions.

You’ll learn to develop a strategic approach to training,

recruiting and developing the company’s most important
asset: its people. As businesses expand, these professionals
are needed to keep everything together. At the end of your
Human Resource management training course, you’ll be
prepared to handle difficult staff members and design pay
structures as well as analyse the influence of unions and
government on the labour force.

HR Perspectives: Environmental Scanning :

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Have you ever heard of a SWOT (strengths, weaknesses,
opportunities, threats) analysis? If you have, the idea of
environmental scanning will already be familiar to you. If not,
it essentially is referring to the process of reviewing and
analyzing the internal and external factors and trends that
may affect your current and future actions.
the name implies, the goal is to scan the environment, which
includes the general working environment (the industry, the
economy, etc.), the competitive landscape, and the internal
environment. This type of scan can be conducted by nearly
every department within an organization, including HR.

From an HR perspective, this would include assessing things

like:
What is going on with the world and the economies of areas
where you operate? How will these trends affect your
organization? How will they impact HR decisions? For example:
What is the unemployment rate?
What laws are changing that will affect your business? Are
there other political concerns that will affect your business?
In your local areas of operation, what trends are you seeing
that will impact the organization?
What is going on in your industry, specifically? Is it growing?
Where is your organization placed in the industry?
Where does your organization fit when competing for talent?
How scarce is talent right now?
Are there technological trends that will impact your HR needs?
What skills does your organization need to be competitive?
Do your employees currently have these skills or what training
(or hiring) will be needed?
What trends are happening in the industry? Does your
organization make trends or follow them? What changes will
you have to make to remain competitive when it comes to
attracting and retaining talent?
Who are your direct competitors? How are they changing?
Who is new to the picture?
How does your compensation and benefit structure compare
to those organizations with whom you’re competing for talent?
What changes might be needed to continue to attract and
retain talent?
From a company perspective, what is going on in the
organization?
What are the company’s strengths and weaknesses? How do
these items affect HR directly? What can HR management do
to address the weaknesses or capitalize on the strengths?
What trends are you seeing that will impact HR in the next
year, next 5 years, and next 10 years? What can you do to
prepare?
Clearly, gathering this type of information is often easier said
than done. Thankfully, there are a lot of sources that can be
utilized to assist. There are third-party groups that offer
competitive information, for example. There are publications
that provide information as well.

The key is to ensure that the members of the HR management

team are being proactive in scanning the environment in
which they’re operating—doing so will allow them to take
steps to be better prepared for the future. Less reacting, more
planning and preparing.
Environmental Scanning - Internal & External
Analysis of Environment :

Organizational environment consists of both

external and internal factors. Environment must
be scanned so as to determine development and
forecasts of factors that will influence
organizational success. Environmental scanning
refers to possession and utilization of information
about occasions, patterns, trends, and
relationships within an organization’s internal and
external environment. It helps the managers to
decide the future path of the organization.
Scanning must identify the threats and
opportunities existing in the environment. While
strategy formulation, an organization must take
advantage of the opportunities and minimize the
threats. A threat for one organization may be an
opportunity for another.
Internal analysis of the environment is the first
step of environment scanning. Organizations
should observe the internal organizational
environment. This includes employee interaction
with other employees, employee interaction with
management, manager interaction with other
managers, and management interaction with
shareholders, access to natural resources, brand
awareness, organizational structure, main staff,
operational potential, etc. Also, discussions,
interviews, and surveys can be used to assess the
internal environment. Analysis of internal
environment helps in identifying strengths and
weaknesses of an organization.

As business becomes more competitive, and there

are rapid changes in the external environment,
information from external environment adds
crucial elements to the effectiveness of long-term
plans. As environment is dynamic, it becomes
essential to identify competitors’ moves and
actions. Organizations have also to update the
core competencies and internal environment as
per external environment. Environmental factors
are infinite, hence, organization should be agile
and vigile to accept and adjust to the
environmental changes. For instance - Monitoring
might indicate that an original forecast of the
prices of the raw materials that are involved in the
product are no more credible, which could imply
the requirement for more focused scanning,
forecasting and analysis to create a more
trustworthy prediction about the input costs. In a
similar manner, there can be changes in factors
such as competitor’s activities, technology, market
tastes and preferences.

While in external analysis, three correlated

environment should be studied and analyzed —
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
immediate / industry environment
national environment
broader socio-economic environment / macro-
environment
Examining the industry environment needs an
appraisal of the competitive structure of the
organization’s industry, including the competitive
position of a particular organization and it’s main
rivals. Also, an assessment of the nature, stage,
dynamics and history of the industry is essential. It
also implies evaluating the effect of globalization
on competition within the industry. Analyzing the
national environment needs an appraisal of
whether the national framework helps in achieving
competitive advantage in the globalized
environment. Analysis of macro-environment
includes exploring macro-economic, social,
government, legal, technological and international
factors that may influence the environment. The
analysis of organization’s external environment
reveals opportunities and threats for an
organization.

Strategic managers must not only recognize the

present state of the environment and their
industry but also be able to predict its future
positions.

Environmental Scanning :

Every organization has an internal and external

environment. In order for the organization to be
successful, it is important that it scans its
environment regularly to assess its developments
and understand factors that can contribute to its
success. Environmental scanning is a process used
by organizations to monitor their external and
internal environments.
As seen from the figure above, environmental
scanning should primarily identify opportunities
and threats in the organization’s environment.
Once these are identified, the organization can
create a strategy which helps in maximizing the
opportunities and minimizing the threats. Before
looking at the important factors for environmental
scanning, let’s take a quick peek at the
components of an organization’s environment.

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Commercial Knowledge > Business Environment >
Environmental Scanning
Business Environment
Environmental Scanning
Every organization has an internal and external
environment. In order for the organization to be
successful, it is important that it scans its
environment regularly to assess its developments
and understand factors that can contribute to its
success. Environmental scanning is a process used
by organizations to monitor their external and
internal environments.

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Environmental Scanning
The purpose of the scan is the identification of
opportunities and threats affecting the business
for making strategic business decisions. As a part
of the environmental scanning process, the
organization collects information regarding its
environment and analyzes it to forecast the impact
of changes in the environment. This eventually
helps the management team to make informed
decisions.

environmental scanning

As seen from the figure above, environmental

scanning should primarily identify opportunities
and threats in the organization’s environment.
Once these are identified, the organization can
create a strategy which helps in maximizing the
opportunities and minimizing the threats. Before
looking at the important factors for environmental
scanning, let’s take a quick peek at the
components of an organization’s environment.

Components of a Business Environment

environmental scanning :
As you can see above, the internal environment of
an organization consists of various elements like
the value system, mission/objectives of the
organization, structure, culture, quality of
employees, labor unions, technological capabilities,
etc. These elements lie within the organization and
any changes to them can affect the overall success
of the business.

On the other hand, an organization cannot operate

in a vacuum. Also, there are many factors outside
the walls of an organization which affects the
functions of the business. These factors constitute
the external environment of an organization.

Browse more Topics under Business Environment

Meaning and Characteristics of Business
Environment
Importance of Business Environment
Relationship between an Organization and its
Environment
Environmental Impact and Analysis
Macro Environment – Demographic Environment
Elements of Micro Environment
Macro Environment – Economic Environment
SWOT analysis
Macro Environment – Political-Legal and Social
Environment
PESTLE Analysis
Macro Environment – Technological Environment
Strategic Response to the Environment
Macro Environment – Global Environment
The internal environment offers strengths and
weaknesses to business while the external
environment brings opportunities and threats. The
four influencing environmental factors known as
SWOT Analysis are:

Strength – an inherent capacity of an organization

which helps it gain a strategic advantage over its
competitors.
Weakness – an inherent constraint or limitation
which creates a strategic disadvantage for a
business.
Opportunity – a favorable condition in the
organization’s environment enabling it to
strengthen its position.
Threat – an unfavorable condition in the
organization’s environment causing damage to the
organization.
Important Factors for Environmental Scanning
Before scanning the environment, an organization
must take the following actors into consideration:
Events – These are specific occurrences which take
place in different environmental sectors of a
business. These are important for the functioning
and/or success of the business. Events can occur
either in the internal or the external environment.
Organizations can observe and track them.
Trends – As the name suggests, trends are general
courses of action or tendencies along which the
events occur. They are groups of similar or related
events which tend to move in a specific direction.
Further, trends can be positive or negative. By
observing trends, an organization can identify any
change in the strength or frequency of the events
suggesting a change in the respective area.
Issues – In wake of the events and trends, some
concerns can arise. These are Issues. Organizations
try to identify emerging issues so that they can
take corrective measures to nip them in the bud.
However, identifying emerging issues is a difficult
task. Usually, emerging issues start with a shift in
values or change in which the concern is viewed.
Expectations – Some interested groups have
demands based on their concern for issues. These
demands are Expectations.
Solved Question on Environmental Scanning
Q1. Explain the important factors for
environmental scanning.

Answer: The four important factors of

environmental scanning are events, trends, issues,
and expectations.

Events are occurrences which takes place in

different environmental sectors of a business.
Sometimes these events follow a pattern and tend
to move in a specific direction. By analyzing these
patterns, the organization can identify trends.
Further, there are times when events and trends
cause concerns or issues. Also, the interested
groups expect the organization to take care of the
issues. Hence, in environmental scanning, the
organization must ensure that all these aspects are
covered.
__________________________________________
___________

Reference :
1. Aswathappa k. Human resourse
management - Text and cases
( 2013).7thEdn. McGraw Hill education
( india ) private Limited New Delhi.
2. P.c Tripathi human resourse
management, sultan chand @ sons,
New Delhi.