(a) Describe the scope and relevance of HRM in organisations today. 20 (b) Describe the status of Industrial Relations in the…

(a) Scope and relevance of HRM in organisations today

Human resource management (HRM) is the function that acquires, develops, motivates and retains people to achieve organisational goals. It has moved from routine personnel administration to a strategic role.

Scope:

• Acquisition: human resource planning, job analysis, recruitment, selection, placement and induction.
• Development: training, management development, career planning and succession planning.
• Motivation and compensation: job design, pay and incentives, performance appraisal and recognition.
• Maintenance and integration: health, safety, welfare, grievance handling, employee relations and retention.
• Compliance and ethics: labour law, including the four labour codes in force from 21.11.2025, records and HR audit.

Relevance today:

• Knowledge work and competition make people the main source of advantage, so HR strategy must fit business strategy.
• Change and uncertainty call for reskilling, agility and change management.
• Diverse workforces, gig and hybrid work need new policies on inclusion, flexibility and well-being.
• Technology such as HR analytics and AI improves hiring and planning, but raises questions of privacy and fairness.
• Stakeholders now expect ethical labour practice, diversity and sustainability (ESG), and HRM supports these.
• It builds employer brand, engagement and retention, and so lowers costs and raises productivity.

HRM is therefore relevant to every organisation, large or small, and to managers at every level, not only to the HR department.

(b) Status of industrial relations in Indian public sector undertakings

After independence the State wanted public undertakings to be model employers under the Industrial Policy Resolutions, offering security, good wages, welfare and recognition of unions. The industrial relations system was built on bipartite forums such as works committees and joint management councils, unions with central trade union affiliation, grievance procedures, and regular collective bargaining, with wage settlements guided by the Department of Public Enterprises.

Present status:

• Relations are more stable and unionised than in much of the private sector, and strikes are fewer than in the past.
• Wage settlements are often delayed, since they depend on government guidelines and on the financial position of the undertaking, which sparks agitation.
• Rising use of contract labour for non-core work creates two tiers of workers, with pay and security gaps.
• Competition, losses, voluntary retirement schemes, restructuring and disinvestment raise job insecurity, and political rivalry among unions and political interference complicate bargaining.
• Overstaffing, low productivity and rigid rules are also criticised.
• The Industrial Relations Code, 2020 (in force from 21.11.2025) now governs disputes, notice for strikes and standing orders.

The need is for a balance between commercial competitiveness and the model-employer role, through greater dialogue, productivity-linked pay and reskilling.

(c) How organisations identify training needs

Training needs are gaps between the skills, knowledge and attitudes required and those the employees have. They are identified at three levels.

• Organisational analysis: looks at business goals, strategy, new technology, changes in products and structure, and workforce plans to see where training is required across the enterprise.
• Task or job analysis: studies the job description and specification and the standards of performance to decide what knowledge and skills each job needs.
• Individual or person analysis: compares the employee's actual performance with the standard, using appraisal results, tests, supervisor's reports, critical incidents, and the employee's career plans.

Methods include performance appraisal, competency mapping, skill inventories, interviews and questionnaires, observation, feedback from customers and 360-degree feedback, and analysis of complaints, errors, accidents and absenteeism. The results are then ranked by priority and cost to design the training plan.