UNIT- IV
E-HRM & I-HRM
Chapter I- INTRODUCTION:
Human Resource: meaning. management: definitions. nature and meaning of human resource management.
definitions and importance. difference between personal management and hrm. characteristics, objectives,
importance and scope of HRM. Functions of HRM - A) Managerial B) Objective C) Advisory and supportive functions.
Chapter II- SELECTION AND TRAINING:
i) SELECTION: Meaning and Nature. Definitions, Characteristics, Objectives and importance of Selection. Process
and Tests used in Selection. Interview: Meaning and Types. Limitations of Interview. il) TRAINING: Meaning,
Definitions, Nature and Characteristics of Training. Purposes and Benefits of Training. Methods /approaches to
training- classroom/lectures, conferences, films, Vestibule training, apprenticeship, Computer Assisted
Instruction(CAI)Net Based training, In basket training, Role Playing, Executive Coaching.
Chapter III- PERFORMANCE APPRAISAL:
Meaning and Definition of Performance Appraisal. METHODS - A) Traditional method - Ranking, Paired
Comparisons, Grading, Forced Choice, Checklist methods, Critical Incident method, Essay method. B)
Modern Methods - Behaviour Anchored Rating Scale (BARS), Management by Objectives(MBO). 360* Feedback.
Benefits and Limitations in Performance Appraisal.
Syllabus:
UNIT- IV
1) E-HRM: Recruitment, Selection, Performance Management ,Learning and
Compensation. HR in mergers and acquisitions. Business processing
outcomes. HRM in high performance organizations.
2) I-HRM: Nature, Growth and Management of international Human Resource
activities. HR and Internalization of Business.
3)TQM: Definition. Principles and Common Barriers to TQM, Six Sigma. Tools
of Quality Improvement: Kaizen, Bench Marking, HR Audit and Balance Score
card.
What is HRM?
Human Resource Management (HRM) is the strategic approach to managing
people in an organization to maximize productivity, employee satisfaction,
and business success. It involves recruitment, training, performance
management, compensation, and employee relations.
Human Resource in an organisation involve technical skills and soft skills of
economic, social, physiological, and psychological and spiritual beings
Role of an HR manager:
1. Recruitment & Selection – Identifies, attracts, and hires the right talent.
2. Employee Onboarding – Ensures smooth integration of new hires into the company.
3. Training & Development – Provides learning opportunities and skill enhancement.
4. Performance Management – Evaluates and improves employee performance.
5. Compensation & Benefits – Manages salaries, bonuses, and rewards.
6. Employee Relations – Resolves conflicts and maintains a positive work culture.
7. Workplace Safety & Compliance – Ensures adherence to labor laws and safety regulations.
8. Employee Engagement & Motivation – Implements programs to boost morale &
productivity.
9. HR Analytics & Data Management – Uses data-driven insights for better decision-making.
10. Workforce Planning & Succession Management – Plans for future leadership and
workforce
What is e-HRM
E-HRM (Electronic Human Resource Management) is the use of web-based technologies
to manage HR activities, making them faster, more accurate, and data-driven.
E-HRM (Electronic Human Resource Management) is the integration of information
technology (IT) into HR activities to enhance efficiency, connectivity, and strategic
decision-making. It enables HR professionals and employees to collaborate using digital
tools, making HR functions faster and more data-driven.
It allows HR managers to store, access, and analyze employee data in one place,
improving decision-making and streamlining HR processes.
Types of e-HRM
There are three types of e-HRM namely, operational, relational and transformational.
Operational E-HRM: Handles routine administrative tasks such as payroll, employee
records, and attendance management. This Reduces paperwork, improves efficiency, and
minimizes errors.
Eg: Employees can log in to an HR portal to check their salary slips, update bank
details, or apply for leave without HR intervention.
Relational e-HRM: It is concerned with key HR functions like hiring, training, and
performance evaluation using online tools.Online recruitment , E-learning & training,
Performance management using online tools are included under relational e-HRM.This
makes HR services more accessible, faster, and efficient for employees and HR teams.
Eg:A company uses LinkedIn job postings and AI-based hiring tools instead of
traditional walk-in interviews.
Types of e-HRM
Transformational e- HRM: It is related with strategic HR activities known as knowledge
management, strategic re-orientation. It is possible to create a change-ready workforce through
an integrated set of web-based tools that enables the workforce to develop in line with the
company’s strategic choices
Uses technology to align HR strategies with business goals, workforce planning, and
innovation. Helps companies stay competitive, build a strong workforce, and plan for the
future.
Example: HR teams use data-driven hiring strategies to recruit employees based on
long-term company goals.
Case Studies
Google’s Use of AI in Workforce Planning
Google wanted to reduce employee turnover
and improve retention.
Solution:
Google’s HR team used People Analytics, an
AI-driven tool that analyzed employee data to predict
who might leave based on factors like workload,
performance, and job satisfaction.
The system helped managers take proactive steps,
such as offering promotions or adjusting work conditions before employees decided to leave.
Google significantly improved employee retention and satisfaction by using data-driven HR
decisions instead of relying on assumptions.
AI and analytics help HR teams make better workforce decisions.
Case Studies
Unilever’s Digital Recruitment Strategy
Unilever hires thousands of employees worldwide but
wanted to make the hiring process faster and fairer.
Solution: Unilever implemented AI-powered
recruitment where candidates:
Completed online games that tested cognitive skills.
Had their interviews analyzed by AI facial recognition software to assess confidence and
communication.
This method reduced bias and helped HR select the best candidates objectively.
By leveraging AI to eliminate unconscious biases in the initial screening process, Unilever not
only achieved a more diverse workforce but also fostered a culture of inclusivity and
innovation.
Unilever reduced hiring time by 75% and made smarter, data-backed hiring decisions.
Case Studies
Walmart’s Automated Payroll System
With over 2.3 million employees worldwide,
Walmart faced difficulties in payroll processing and
employee salary disbursement.
Solution:
Walmart implemented an automated payroll system that calculated salaries, taxes, and
bonuses based on employees’ working hours.
Employees could access salary slips and update banking details via a self-service HR
portal.
Reduced payroll processing time by 50%, saving HR professionals from manual calculations.
Minimized errors in salary payments, ensuring timely and accurate compensation.
Case Studies
Tata Consultancy Services (TCS) HR Chatbot for Employee Queries
TCS, with over 600,000 employees, struggled with handling HR-related queries like salary
details, leaves, and policies.
Solution:
TCS implemented an AI-powered HR chatbot that could answer employee queries
instantly.
Employees could ask about salary details, leave balance, HR policies, etc., without waiting
for a human HR representative.
Reduced HR workload by automating repetitive questions.
Improved response time and employee satisfaction.
Case Studies
Amazon’s Biometric Attendance & Leave Tracking System
Managing attendance for hundreds of thousands of employees across warehouses was
difficult.
Solution:
Amazon introduced biometric attendance systems (fingerprint and facial recognition) to
track employee check-ins and check-outs.
A self-service HR portal allowed employees to apply for leaves, reducing paperwork.
Ensured accurate attendance tracking and prevented time fraud.
HR could automatically calculate overtime pay based on digital attendance records.
Case Studies
Infosys’ Digital Training Platform
Infosys, a global IT company, needed a way to train
thousands of employees across different locations quickly
and efficiently.
Solution:
Infosys launched Lex, an AI-powered e-learning platform that provided employees with
personalized training programs.
Employees could access courses anytime via mobile or desktop, allowing flexible learning
HR teams tracked progress through digital dashboards and recommended additional
training.
Reduced training costs by eliminating the need for physical workshops.
Helped employees upskill faster, improving job performance.
Increased engagement as employees could learn at their own pace.
Case Studies
PepsiCo’s Digital Performance Management System
PepsiCo wanted a more transparent and data-driven way to evaluate employee performance
instead of traditional annual reviews.
Solution:
Introduced a real-time performance tracking system where employees and managers could
set goals, give feedback, and track progress throughout the year.
Used AI-driven sentiment analysis from employee feedback to assess engagement and
satisfaction.
HR teams received automated performance reports to make data-driven decisions on
promotions and bonuses.
Increased employee motivation and engagement as feedback was continuous.
Helped managers make fairer promotion decisions based on real-time data.
Boosted productivity, as employees had a clear understanding of their performance goals.
e-HRM Activities
E-HRM (Electronic Human Resource Management) is the digital transformation
of HR functions using web-based technologies. It enables organizations to
manage HR activities such as:
Recruitment (Attracting & Sourcing Candidates)
Selection(Screening & Hiring the Best Candidates)
Performance management (Enhancing Employee Growth & Productivity)
Learning
Compensation
e-HRM Activities: Recruitment & Selection
Traditionally, recruitment involved posting job ads in newspapers and manually screening resumes.
With E-HRM, technology automates these processes.
E-recruitment is the process of using digital tools and online platforms to attract & screen
candidates. Instead of relying on traditional methods like newspaper ads or job fairs, e-recruitment
leverages websites, social media, and specialized software to make the recruitment process more
efficient, cost-effective, and accessible.
E-recruitment is preferred when time is a critical constraint and in situations where less capital can
be spent on the recruitment process. It saves the hassle and makes the process more effective.
E-recruitment Tools:E-recruitment tools help HR professionals automate, streamline, and optimize the
hiring process. These tools make it easier to source, attract, and engage the right candidates while saving
time and resources.
Online Job Portals & Career Websites: These platforms help companies post job openings, receive
applications, and filter candidates efficiently.
Popular Platforms: LinkedIn , Indeed – Global job board with resume uploads, Glassdoor ,
Monster .
Businesses can also have their own portals for direct applications.
e-HRM Activities: Recruitment & Selection
Chatbots & Virtual Assistants : AI-powered chatbots engage candidates, answer FAQs, and conduct
pre-screening interviews.
Popular Platforms: Olivia by Paradox – AI chatbot for pre-screening and interview scheduling,
XOR – AI-driven chatbot for candidate engagement , HireVue AI Chatbots – Uses AI to analyze
candidate responses.
Social Media Recruiting : Social media platforms help recruiters target passive candidates and build
employer branding.
Popular Platforms: LinkedIn – Direct outreach and job postings, Twitter/X – Hashtags and
recruitment campaigns, Facebook Jobs – Allows businesses to post job openings., Instagram –
Employer branding through company culture content.
Eg: Tesla uses Twitter for job postings and employer branding, attracting top engineering talent.
e-HRM Activities: Recruitment & Selection
Employee Referral Platforms :These tools encourage internal referrals by allowing employees to
recommend candidates.
Popular Platforms: Teamable – AI-driven employee referral system. Jobvite – Referral tracking
and automation. Zalp – Social media-based referral program.
E-selection
It is the process of using digital tools and AI-driven technologies to screen, assess, and choose the
best candidates for a job.
E-Selection tools: E-Selection tools help HR teams streamline and automate the process of
evaluating, interviewing, and hiring the right candidates. These tools ensure data-driven, unbiased,
and efficient decision-making, reducing time and effort in the selection process.
AI-Powered Resume Screening : AI-based tools analyze resumes and match candidates with job
descriptions more accurately than human recruiters.
Popular AI Screening Tools: HireVue AI Recruiting – Uses AI to scan resumes and predict
candidate success , Pymetrics – AI-powered candidate assessment based on cognitive and
emotional traits , X0PA AI – Predictive hiring software that reduces bias.
Eg: Unilever reduced hiring time by 75% using AI-driven resume screening and assessments.
e-HRM Activities: Recruitment & Selection
AI-Based Video Interviewing: These platforms analyze facial expressions, speech patterns, and
confidence levels to assess candidates.
Popular AI Video Interview Tools: HireVue – Uses AI to evaluate video interviews for
personality and communication , Spark Hire – Records structured video interviews for remote
hiring, myInterview – AI-driven platform that ranks candidates based on responses.
Example: Deloitte uses AI-powered video interviews to assess speech tone, word choice, and
confidence, reducing hiring bias , Unilever also used similar approaches to reduce hiring bias
Online Skill & Cognitive Assessments : These tools test candidates’ technical skills, problem-
solving ability, and personality traits before hiring.
Popular Assessment Tools:HackerRank – Tests coding and software development skills,
Codility – AI-based coding assessments for tech hiring, TestGorilla – Offers customizable skill
tests for multiple industries,SHL & Mercer Mettl – Psychometric and behavioral testing tools.
Example: Amazon uses HackerRank to evaluate coding skills before interviewing software
engineers.
e-HRM Activities: Recruitment & Selection
Gamified Assessments : Gamification adds interactive challenges, puzzles, and simulations to
assess candidate performance in real-world job situations.
Popular Gamified Hiring Tools: Pymetrics – Uses neuroscience-based games to measure
cognitive and emotional traits , Knack – AI-driven games that evaluate soft skills like
leadership and teamwork , Arctic Shores – Game-based psychometric assessments.
https://www.assessmentday.co.uk/gamified-assessments.htm
Why Use E-Recruitment and E-selection Tools?
✅ Faster Hiring: Automates job postings, screenings, and candidate engagement.
✅ Wider Reach: Connects with candidates globally through job portals and social media.
✅ Cost-Effective: Reduces reliance on traditional hiring agencies.
✅ Bias-Free Hiring: AI-powered tools ensure fair candidate selection.
✅ Better Candidate Experience: Chatbots and automated systems improve communication.
e-HRM Activities: Performance Management
What is performance management?
Performance management is a continuous process of communicating and clarifying job
responsibilities, priorities, performance expectations, and development planning.
E-Performance Management (E-PM) is the use of digital tools and technologies to track, evaluate, and
improve employee performance in an organization. It replaces traditional paper-based performance
reviews with real-time, automated, and data-driven assessments.
E-performance management is the use of information technology to manage performance management
systems (PMS)
How E-Performance Management Works:E-PM involves the following
Setting Goals & Expectations :Employees and managers can set SMART (Specific, Measurable,
Achievable, Relevant, Time-bound) goals using online platforms.AI-powered tools help align individual
goals with company objectives. Performance dashboards provide real-time tracking of KPIs (Key
Performance Indicators). Eg: Google’s OKR System , 15Five – Helps managers set goals, check-in weekly
& track progress
e-HRM Activities: Performance Management
Feedback & 360° Reviews: Real-time feedback tools allow employees to receive instant guidance from
managers and peers. 360-degree feedback systems collect performance reviews from supervisors,
colleagues, and subordinates. AI-powered sentiment analysis helps HR teams detect workplace issues
early. Eg: Culture Amp – Provides 360-degree feedback with real-time insights , SurveyMonkey Engage –
Collects employee feedback for continuous improvement.
Accenture replaced annual performance reviews with a real-time web-based feedback system,
leading to higher employee engagement.
Performance Evaluation & Data Analytics : AI-driven analytics track employee progress, strengths, and
improvement areas. HR teams use data visualization tools to make informed decisions. Automated
performance reports help reduce bias in evaluations. Example: IBM’s AI-powered performance
management system predicts employee potential and recommends promotions based on data insights
Workday – Automates performance tracking and analytics , SAP SuccessFactors – AI-powered
performance management and compensation planning , IBM Watson Talent .
e-HRM Activities: Performance Management
Feedback & 360° Reviews: Real-time feedback tools allow employees to receive instant guidance from
managers and peers. 360-degree feedback systems collect performance reviews from supervisors,
colleagues, and subordinates. AI-powered sentiment analysis helps HR teams detect workplace issues
early. Eg: Culture Amp – Provides 360-degree feedback with real-time insights , SurveyMonkey Engage –
Collects employee feedback for continuous improvement.
Accenture replaced annual performance reviews with a real-time web-based feedback system,
leading to higher employee engagement.
Performance Evaluation & Data Analytics : AI-driven analytics track employee progress, strengths, and
improvement areas. HR teams use data visualization tools to make informed decisions. Automated
performance reports help reduce bias in evaluations. Example: IBM’s AI-powered performance
management system predicts employee potential and recommends promotions based on data insights
Workday – Automates performance tracking and analytics , SAP SuccessFactors – AI-powered
performance management and compensation planning , IBM Watson Talent .
e-HRM Activities: Performance Management
Types of Performance evaluations:
General Appraisal A continuous evaluation where managers provide regular feedback.
360-Degree Appraisal: Feedback is collected from peers, managers, subordinates, and clients.
Technological Performance Appraisal: Focuses on employees’ ability to use technology efficiently.
Employee Self-Assessment: Employees evaluate their own performance.
Manager Performance Appraisal: Managers are evaluated by employees and senior leadership.
Project Evaluation Review: Employees are appraised based on their contribution to projects.
Sales Performance Appraisal: Measures an employee’s ability to meet sales targets.
e-HRM Activities: Performance Management
Training & Development: AI suggests personalized training programs based on performance gaps, receive
customized career growth plans, etc. Example: Microsoft uses an AI-based learning platform that
recommends upskilling courses based on employee performance trends.
Rewards, Recognition & CompensationAI helps ensure fair and transparent reward systems and
compensation. EG: Bonusly – Gamifies employee recognition and rewards, Reflektive – Aligns performance
with compensation decisions., Paycom
- Benefits of E-Performance Management
✅ Real-Time Feedback – Faster response to employee concerns.
✅ Data-Driven Decisions – AI ensures unbiased performance tracking.
✅ Better Employee Engagement – Continuous feedback boosts motivation.
✅ Improved Productivity – Employees can track their progress and improve skills.
✅ Remote Work Optimization – Enables performance tracking for hybrid & remote teams.
e-HRM Activities: Performance Management
Training & Development: AI suggests personalized training programs based on performance gaps, Online
learning platforms (Udemy, Coursera) are integrated with E-PM systems. Employees receive customized
career growth plans. Example: Microsoft uses an AI-based learning platform that recommends upskilling
courses based on employee performance trends.
Rewards, Recognition & Compensation: Gamification features (badges, leaderboards) motivate
employees.HR can track high performers and offer data-driven incentives & bonuses. AI helps ensure fair
and transparent reward systems. EG: Bonusly – Gamifies employee recognition and rewards, Reflektive –
Aligns performance with compensation decisions., Paycom
- Benefits of E-Performance Management
✅ Real-Time Feedback – Faster response to employee concerns.
✅ Data-Driven Decisions – AI ensures unbiased performance tracking.
✅ Better Employee Engagement – Continuous feedback boosts motivation.
✅ Improved Productivity – Employees can track their progress and improve skills.
✅ Remote Work Optimization – Enables performance tracking for hybrid & remote teams.
e-HRM Activities: Learning
E-Learning in Electronic Human Resource Management (E-HRM) refers to the use of digital platforms, AI-driven
tools, and web-based training to develop employee skills and knowledge. Instead of traditional face-to-face
training, organizations digitize learning and make it accessible anytime, anywhere.
One can access educational content and recieve instructions without being present in a traditional
educational setting
The materials are typically presented through interactive modules, quizzes , videos and other multimedia
tools , making it a convienient and engaging way to enhance knowledge and skill.
One of the biggest challenges of e-learning is ensuring the way the training is delivered is effective and that
employees retain key information.
An HR manager is responsible for
identifying gaps in training/ skill, select an appropriate LMS to carry out the course work ,
work with Subject matter experts(SME) to either curate/ choose the right training modules ,
monitor employee engagement & motivate them ,
Tracking & Measuring Learning Outcomes
Integrating E-Learning with Career Development & Performance Management
e-HRM Activities: Learning
E-Learning in Electronic Human Resource Management (E-HRM) refers to the use of digital platforms, AI-driven
tools, and web-based training to develop employee skills and knowledge. Instead of traditional face-to-face
training, organizations digitize learning and make it accessible anytime, anywhere.
One can access educational content and recieve instructions without being present in a traditional
educational setting .The materials are typically presented through interactive modules, quizzes , videos and
other multimedia tools , making it a convienient and engaging way to enhance knowledge and skill.
One of the biggest challenges of e-learning is ensuring the way the training is delivered is effective and that
employees retain key information.
An HR manager is responsible for
identifying gaps in training/ skill- i.e conduct a training needs analysis, select an appropriate LMS to
carry out the course work ,
work with Subject matter experts(SME) to either curate/ choose the right training modules ,
monitor employee engagement & motivate them ,
Tracking & Measuring Learning Outcomes
Integrating E-Learning with Career Development & Performance Management
e-HRM Activities: Learning
E-Learning is of great importance in HR as it:
Allows HR departments to streamline training processes.
Enhances accessibility and flexibility in learning.
Helps organizations track progress and measure employee development.
E-learning involves the utilisation of several tools:
Learning Management Systems (LMS): t's a software application that helps organizations manage and deliver
training and learning materials. Platforms like Moodle, Coursera, and Udemy manage and deliver training
modules. LMS allows employees to access structured learning paths, track progress, and receive certifications.
AI-Powered Learning Paths: AI analyzes employee skill gaps and suggests personalized training programs. Helps
employees upskill efficiently based on their job roles and industry trends.
Gamification & Interactive Learning: Engages employees through quizzes, simulations, badges, and
leaderboards. Increases motivation and knowledge retention.
Virtual Reality (VR) & Augmented Reality (AR) Provides immersive training experiences, especially in
healthcare, manufacturing, and technical roles. Examples: VR-based safety training for factory workers, AR
simulations for medical procedures.
Data Analytics & Performance Tracking:HR managers can track learning completion rates, engagement levels,
and skill development. Helps in optimizing training strategies based on employee feedback and performance.
e-HRM Activities: Learning
Examples:
Starbucks uses an e learning tool to deliver short videos and quizzes to train employees on customer
service and coffee making.
Accenture uses microlearning to teach workers technical skills such as coding and programming.
McDonald's – Uses VR-based training for customer service and operations training.
Amazon – Provides mobile learning options for warehouse employees to enhance productivity.
Benefits of E-Learning in HRM
✅ Enhanced Employee Development – Employees can learn at their own pace with diverse training
resources.
✅ Cost-Effective – Reduces expenses related to travel, printed materials, and in-person training sessions.
✅ Improved Engagement – Interactive content and gamification make learning more engaging.
✅ Onboarding Efficiency – New employees receive structured training from day one.
✅ Just-in-Time Learning – Employees access training materials exactly when needed, improving efficiency.
✅ Standardized Training – Ensures consistent knowledge transfer across global teams.
✅ Compliance & Certification – Helps employees stay updated with industry regulations and company
policies.
e-HRM Activities: Compensation
e-compensation is a methodology that measures performance and compensation, in terms of both quality
and quantity, including all levels of the organization when objectives have been defined in a clear and
transparent manner.
e-compensation is intended to generate an fair salaries culture within the corporation, based on complying
with performance evaluation components and the measurement system.
The purpose of this model is to provide greater salary incentives for employees who follow company
guidelines and achieve results in accordance with clear instructions.
Employee welfare: e-compensation seeks to encourage the performance of employees, recognizing
efficiency and effectiveness, strengthening organizational culture, promoting professional development and
teamwork through personalized, objective and equitable compensation.
e-compensation establishes a win-win situation which benefits the company, its employees, shareholders
and clients, striving to obtain a high performance culture of effectiveness and efficiency in all products and
services.
E-compensation may be monetary (direct compensation & indirect compensation) , non-monetary.
E-compensation may be monetary (direct compensation & indirect compensation) , non-monetary. Direct E-
Compensation (Financial Rewards) : These are salary-based benefits provided to employees.
E-Salary Management – Digital payroll systems automate salary calculations, tax deductions, and deposits.
Performance-Based Pay – Systems track employee performance and allocate bonuses/incentives
accordingly.
Stock Options & Profit Sharing – Employees receive shares or profit-based compensation, managed digitally.
Commission-Based Pay – Used in sales & marketing, where commissions are automatically calculated &
credited.
Indirect E-Compensation (Employee Benefits & Perks) These are additional benefits provided apart from salary
Health & Insurance Benefits – Digital platforms manage medical, dental, and life insurance.
Provident Fund (PF) & Retirement Plans – Employees can track their PF contributions and pensions online.
Paid Time Off (PTO) & Leave Management – Employees can apply for leaves and track paid vacations via HR
portals.
Remote Work & Flexible Work Arrangements – Systems help manage work-from-home benefits and hybrid
work incentives.
Non-Monetary E-Compensation (Recognition & Development: These are intangible rewards to boost
motivation.
examples: E-Recognition & Rewards , E-Learning & Career Growth aid, Wellness Programs & Mental Health
Support
E-compensation may use tools that help with - payroll automation, use of Compensation Management Software
(CMS) and Performance management systems & employee self-service portals
Payroll Management Tools : These tools help in salary processing, tax deductions, and direct deposits.
ADP Payroll – Automates payroll processing, tax filing, and compliance.
Workday Payroll – Offers cloud-based payroll management with real-time reporting.
Benefits & Perks Management Tools: These platforms manage insurance, provident fund (PF), retirement plans, and
employee benefits.
BambooHR – Manages employee benefits and compensation structures.
Paycom – Integrates payroll, benefits, and tax compliance.
Performance-Based Compensation Tools : These tools link salary increases, bonuses, and rewards to performance.
Oracle HCM Cloud – Integrates compensation planning with performance data.
Kudos & Bonusly – Digital platforms for employee recognition and rewards.
Employee Self-Service (ESS) & Compensation Portals : These portals allow employees to access their salary slips, tax
details, and benefits.
HR Cloud Self-Service – Employees can view and manage compensation details.
Zoho People – Provides a digital self-service portal for compensation tracking.
Types of Performance evaluations:
General Appraisal A continuous evaluation where managers provide regular feedback.
E-HRM Integration: HR software (e.g., Workday, SAP SuccessFactors) can be used to track performance over
time.We can use AI-based insights for real-time progress monitoring.
360-Degree Appraisal: Feedback is collected from peers, managers, subordinates, and clients.
E-HRM Integration: Survey tools (e.g., Culture Amp, Qualtrics) for anonymous feedback collection.
Technological Performance Appraisal:n Focuses on employees’ ability to use technology efficiently.
E-HRM Integration: E-learning platforms (e.g., LinkedIn Learning, Udemy) for skill tracking. Skill assessment
tools to measure digital proficiency.
Employee Self-Assessment: Employees evaluate their own performance.
E-HRM Integration:Self-assessment portals where employees log their achievements.Goal-setting tools to
align self-evaluations with company objectives.
Manager Performance Appraisal: Managers are evaluated by employees and senior leadership.
E-HRM Integration: Employee feedback platforms to collect anonymous reviews on managers.
Project Evaluation Review: Employees are appraised based on their contribution to projects.
E-HRM Integration: Project management tools (e.g., Asana, Trello, Jira) track employee contributions.We can
also use Automated KPI tracking for project-based performance reviews.
Sales Performance Appraisal: Measures an employee’s ability to meet sales targets.
E-HRM Integration: CRM tools (e.g., Salesforce, HubSpot) for sales tracking. AI-based sales forecasting to
assess individual performance.
Mergers and Acquisitions
Mergers and acquisitions (M&A) involve business transactions where the ownership of a company or its
operating units is transferred to or combined with another company. These transactions can occur
through mergers, acquisitions, or hostile takeovers.
Mergers: Two companies of similar size combine to form a new entity in a merger.A merger occurs
when two companies combine forces to create one joint company.
In August 2018, Vodafone India and Idea Cellular merged to form Vodafone Idea Limited (Vi),
Acquisitions: One company (the acquirer) takes control of another company (the target) by purchasing
its assets or shares
Tata Group acquired Air Indiain 2022. Tata announced the merger of Air India with Vistara. Air
India had been struggling in business, and the travel restriction during the COVID-19 pandemic
added more struggles.
Hostile Takeover: An acquisition where the target company's management doesn't want the deal to
occur.
Takeover of Twitter by Elon Musk is the latest case of a hostile takeover.
L&T infortech’s hostile takeover on Mindtree in 2019 to form LTI-Mindtree
Reasons for M&A
Reasons for M&A
1. Market Expansion: Acquiring a company in a different geographic market helps expand customer base,
industry reach, and supply networks.
Example: Tata Steel’s acquisition of Corus (2007) helped Tata expand into Europe and become a global
steel giant.
2. Increased Market Share: Merging with or acquiring competitors strengthens market presence and
reduces competition.
Example: Vodafone-Idea merger (2018) created one of India’s largest telecom operators.
3. Diversification: Companies acquire businesses in different sectors to reduce reliance on a single
industry.
Example: Flipkart’s acquisition of Myntra (2014) enabled Flipkart to enter the fashion e-commerce
segment.
4.Talent Acquisition: Buying companies to gain access to skilled professionals or technical
expertise.Sometimes, smaller companies are acquired because they’ve got a few highly skilled individuals
on their roster, which have attracted the attention of a rival company.
Reasons for M&A
5.Accelerated Growth: M&A helps companies enter fast-growing segments to drive sales.When growth is
sclerotic in a certain segment of an industry, companies will often look to other higher growth segments
to acquire companies that can speed up sales.
Example: Coca-Cola acquiring Thums Up (1993) helped it dominate the Indian soft drink market.
6. Vertical Integration: Companies acquire suppliers or distributors to gain more control over their supply
chains.
Example: Reliance acquiring Netmeds (2020) to enter the online pharmacy business.
Example: furniture maker IKEA acquired Romanian forests in 2015, providing it with the raw materials
to churn out its flatback chairs, tables, and beds.
7.Access to new technologies: Mergers and acquisitions enable companies to gain access to innovative
technologies or R&D capabilities that they don’t currently possess. Most technology acquisitions include
some element of this.
Example:Disney’s acquisition of Pixar in 2006 was driven by many factors, one of which was the desire
to gain control of Pixar’s then revolutionary animation technology.
Reasons for M&A
8.Economies of Scale: Bigger companies get better pricing power and cost advantages.
Example:LVMH (Louis Vuitton Moët Hennessy), has acquired dozens of luxury brands with the
intention of creating an unrivaled portfolio of luxury brands.
Example: HDFC Ltd merging with HDFC Bank (2023) created a financial giant with better lending
capabilities.
9. Access to Licensing or Distribution: Acquiring a foreign company to acquire its licences to provide a
service or produce something within a country.
references
https://theintactone.com/2024/06/23/e-hrm-nature-activities/
https://firmroom.com/blog/reasons-for-mergers-acquisitions
https://peoplemanagingpeople.com/strategy-operations/organizational-design/hr-merger-acquisition/#h-hr-s-
role-in-mergers-and-acquisitions
https://www.hrdconnect.com/2024/03/13/hrs-essential-role-in-steering-successful-mergers-and-acquisitions/
https://www.indeed.com/career-advice/career-development/what-is-hr-due-diligence
