haya.Learning made clear
Unit II · Organisational behaviour and HRM
10 min readConcept sheetMCQ · model match, sequence and yield ratios

HRM concept, HR planning, recruitment and selection

HRM is the strategic management of people to meet organisational goals. Staffing flows from job analysis and HR planning to recruitment, selection, placement and induction.

HRM functions (Flippo)Managerial: plan, organise, direct, control. Operative: procurement, development, compensation, integration, maintenance, separation
Harvard model (1984)Beer and colleagues: outcomes are the 4 Cs: commitment, competence, congruence, cost-effectiveness
Recruitment vs selectionRecruitment is positive (widens the pool); selection is negative (screens out the unsuitable)
Ulrich's HR roles (1997)Strategic partner, administrative expert, employee champion, change agent

HRM perspectives and models

ModelAuthorKey idea
Personnel management to HRMGeneral shiftFrom administrative, reactive personnel work to strategic, proactive people management
Matching (Michigan) modelFombrun, Tichy and Devanna (1984)HR cycle of selection, appraisal, rewards and development, aligned with strategy
Harvard modelBeer, Spector, Lawrence, Mills and Walton (1984)Stakeholder interests and situational factors shape HR policy; outcomes are the 4 Cs
Guest modelDavid Guest (1987)HRM goals: strategic integration, high commitment, flexibility and quality
Hard vs soft HRMJohn StoreyHard: people as a cost to be used efficiently. Soft: people as assets to be developed
Warwick modelHendry and PettigrewAdds outer (socio-economic) and inner (organisational) context to the Harvard model

Influences and recent trends

  • Influences on HRM: economy, technology, labour laws, unions, globalisation, workforce demographics and organisational culture.
  • Trends: HR analytics, AI in hiring, HR information systems (e-HRM), gig and remote work, employer branding, employee experience, well-being and diversity, equity and inclusion.
  • Dave Ulrich's four roles: strategic partner, administrative expert, employee champion and change agent.
  • HR outsourcing and human capital reporting are growing as HR moves from cost centre to value creator.

The staffing pathway

Recruitment is called positive and selection negative because one attracts applicants and the other screens them out.

HR planning, recruitment and selection

ItemDetails
Forecasting demandManagerial judgement, Delphi technique, ratio-trend analysis, work-study, regression
Forecasting supplySkills inventory, replacement charts, succession planning, Markov analysis (transition matrix)
Closing the gapShortage: recruit, overtime, outsource. Surplus: hiring freeze, voluntary retirement, redeployment
Internal sourcesPromotion, transfer, job posting, re-hiring former employees
External sourcesCampus recruitment, advertisements, employment exchanges, placement agencies, job portals, walk-ins, head-hunters
Selection steps (typical)Preliminary screening → application blank → tests → interviews → background and reference checks → medical examination → final offer
Tests and interviewsAptitude, intelligence, personality, interest and trade tests; structured, unstructured, panel, stress, situational and behavioural interviews
Reliability vs validityReliability: consistent scores. Validity: measures what it claims and predicts job performance

Worked example: recruitment yield pyramid

Problem

A firm needs 20 hires. Past ratios: offers to hires 2:1, interviews to offers 3:2, invitations to interviews 4:3, applicants to invitations 6:1. How many applicants must it attract?

Working
  1. Offers = 20 × 2 = 40.
  2. Interviews = 40 × 3/2 = 60.
  3. Invitations = 60 × 4/3 = 80.
  4. Applicants = 80 × 6 = 480.
  5. Check backwards: 480 ÷ 6 = 80; 80 × 3/4 = 60; 60 × 2/3 = 40; 40 ÷ 2 = 20 hires.
Answer

480 applicants (80 invited, 60 interviewed, 40 offers, 20 hires).

How NET asks this

NET asks you to match HRM models with their features, sequence the selection process and classify recruitment sources, with an occasional quick yield-ratio numerical.

Exam angle

Typical MCQ: “Which HR planning technique uses a transition matrix?” Markov analysis, which forecasts internal supply. Trap: replacement charts show named successors, not probabilities.

Typical MCQ: “To get 10 hires with offers to hires at 2:1 and interviews to offers at 3:2, how many interviews are needed?” 30: offers = 10 × 2 = 20, interviews = 20 × 3/2 = 30. Trap: dividing by the ratio instead of multiplying.

Remember it

Recruitment invites, selection excludes. Harvard's 4 Cs: commitment, competence, congruence, cost-effectiveness.