Human Resource Management and Industrial Relations
Core concepts
HRM covers acquisition, development, motivation and maintenance of people. Know the functions: human resource planning, recruitment and selection, induction, training and development, performance appraisal, compensation, and separation. Understand the difference between recruitment (attracting candidates) and selection (choosing among them), and between job analysis, job description and job specification.
Motivation theory is frequently tested. Learn Maslow's hierarchy, Herzberg's two-factor theory (hygiene factors prevent dissatisfaction; motivators create satisfaction), McGregor's Theory X and Theory Y, and Vroom's expectancy idea. Understand the difference between financial and non-financial incentives.
Industrial relations covers the actors (employers, workers and their unions, government), collective bargaining, grievance handling, discipline, and dispute-resolution machinery: conciliation, mediation, arbitration and adjudication. Know the difference between a strike and a lockout, and the meaning of unfair labour practice.
Traps in questions
- Recruitment attracts; selection rejects. Do not reverse them.
- Herzberg: salary is usually a hygiene factor, not a motivator.
- Conciliation and mediation involve a third party who assists; arbitration produces a binding award.
- A strike is called by workers; a lockout is imposed by the employer.
Rule of thumb
For any motivation question, first ask whether the factor removes dissatisfaction or creates satisfaction; the answer determines whether it is hygiene or a motivator.
Worked example
Employees complain about poor pay and also about lack of recognition. Fixing pay removes dissatisfaction but does not motivate. Introducing recognition and responsibility creates satisfaction. Both are needed, but only the second is a motivator.