 Let's now look at the second part of the module which is about human resource management, which is the flip side of leadership. How to manage your people? In the context of a business, because I'm not going to talk too much about clubs or societies or communities or politics, but in the context of a business, human resource are basically the employees of the business. And human resource management involves defining the creating the organization structure, who reports to whom, how many layers are there, how many functions are there, how many divisions are there, defining the structure, defining the roles, defining the pay. And once you've defined it, human resource management, also called HR management, also requires the HR team to go out and recruit people and train them so that they can go and deliver the company's goals. There are also policies and procedures that guides the employees in a company. Just like if you're in a school or a college, there are policies and procedures for the school and the college. If you're already in a company, you will have faced and followed some of the policies and procedures of your company. HR also plays a key role in developing motivation and skills in the organization. And above all, they partner with business leaders, the sales head or the sales team, the finance head or the finance team, the operations head and the operations team or the marketing head and the marketing team, and they partner with them to support them on the people-related aspects. So that in a nutshell is what is HR management. Let's now go a bit deeper and look at different aspects of human resource management. What are the key elements of HR management? First obviously is talent recruitment, and we'll talk more about it later. Then develop the talent. It's not enough to recruit. You also have to develop them, coach them, guide them, train them, motivate them. That's talent development. The third part is employee performance. You've recruited them, developed them, but they have to perform because it's a business. And then as they perform, it's important that the employees are also motivated and they're satisfied. And there are many surveys that companies do and industries do to look at employee satisfaction because if employees are not satisfied, they leave the company. And the last part, as I said, is day-to-day operations and partnering with business. So these are the five key elements of HR management. Let's look at them one by one. So let's start with how companies recruit talent. All of you or most of you would be applying to companies for jobs. So let's look at how they recruit candidates. It starts with planning. So companies will sit down every year and plan who do they want to recruit, how many people, from where, what education levels, which campuses, what experience. And once they've done the planning, they will actually do the sourcing. They can go to a campus, they can look at social media such as LinkedIn or Indeed, a Nocree, any of those sites or references or through their websites. And the source of the bio data. And it's important for you to know how the source so that you can put in your application into the company recruitment process. Once they source the bio data, they'll shortlist. And the shortlist candidates, they will interview or do some tests or hackathons. And if you are applying, you have to know what the selection process is. So that you're not surprised and you're prepared. And once companies have selected the final candidates, then the hiring process starts. There'll be a discussion on pay and benefits. There will be a reference check. And then there's a contract signing. And then the candidate is hired. And if you have applied and you've selected, you get hired. But it doesn't stop there because once you've got the talent or the employee or the new hire into the company, you have to onboard him. You have to tell him about everything that happens in the company. And typically it may last for a few days where companies tell the new hires about the company vision, mission, purpose, the organization structure, who's who, etc. That's how companies will recruit. Once you have recruited, then on a going basis, employees have to be developed. And that's called learning and development. And this is important because if a company doesn't develop its employees, the employees will leave or employees will not join that company. So it's important to attract the best talent and to retain them. It's also important to engage and motivate the talent. Because you don't want to be, and no candidates and no employee wants to be in a company where they never get to see their bosses. They don't know what's going on in the company. So it's very important that the leadership and the management engages with the employees and motivates them. And employees can ask questions and clarify their doubts. And growing and development is all about training, in-house training, functional training, people skills training, or to be sent out for training or get an external trainer for training. So that you are developing new skills, new ideas, new perspectives. And you grow as an employee, but that's not enough. Most companies will also try and develop an employer brand. Just like you have got product brands, soaps, detergents, computers, cars. The company itself is also a brand in the eye of the candidate and the employee. And just like a product brand can stand for something, an employer brand also has to stand for something in the mind of the employee or the candidate. So when you think about any company, something comes into your mind. If you think about Indian companies, Tata's, Godrej, Mahindra, Infosys, Wipro, or any of the India companies, Adhanis, Ambani's, L&T. Or if you think about global companies, Google, Facebook, Siemens, Procter & Gamble, DHL, any of the global large companies, or small companies, or even startups, Ola, Oyo, or by juice, a book, make my trip, book by show, any of those newer companies. There is a brand association with the company, once you start thinking about them as an employer or a candidate. When you think about them as a customer, you think about the product. So if you're a user of Gillet Blade for shaving, you think about Gillet the brand as a user or a customer. But if you're a candidate or an employee, you'll think about the company, and the company that makes Gillet is Procter & Gamble. You'll think about Procter & Gamble as a brand. And companies have to manage employer branding, same with educational institute. Most colleges participate in rankings and thereby create the branding of the company. Whether you're an IT or an IT or a college anywhere in India or anywhere in the world, they're employer brands, not only as a student. If you want to be a student, you think about the institute in a certain way. But if you want to work for that institute as a faculty or a staff or a project manager, you think about it in a different way. And that's employer branding. And then culture and values is a company honest. Does it work for the good of society? Does it help the community? Does it only make money and exploit people and exploit and spoil the environment? So culture and values, all of this together comes under learning and development usually led by the HRT. So that's the second big part of HR management. If any of you are choosing human resource management as a career, these are the aspects you should think of. The next aspect is performance management. You have recruited the employees, you have trained and developed and motivated them. Now the flip side is the employees need to deliver. And how do you make sure that you know how the employees are doing? That's called performance management. Again, there are four quadrants versus planning. Employees need to know what they're supposed to do and how they will be measured. So you need to give them smart goals. If it's a salesperson, he needs to have smart sales goals. If it's a production person, he needs to have smart production goals. And they have to be specific, measurable, achievable, relevant, and time-bought. You cannot give impossible targets to an employee because employee will give up before they have even started, so smart goals. And then the monitoring, they have to be measures and reports, daily basis, weekly basis, monthly basis, annualized basis. So the employee knows how he's performing versus the goals. And the management also knows how the employee is performing versus the goals. And this is very important if you're a large company with 10,000 employees or 100,000 employees or 500,000 employees. The next quadrant is about reviewing. And if you're an employee, you have to take the review process very carefully. This is when you go back to your manager or your management and say, you gave me these goals, here's how I have performed. Now please give me some feedback and let's talk about how it can do better. Or here are the problems I'm facing. If you remove those problems, I can work even better. So that's the review mechanism. And then of course is the most important thing for all of us, is the incentive and the increments. Every year, chances are companies will give an increment depending on how prices have gone up in that country called inflation. So if the prices have gone up 5%, and if you give the same salary, actually the salary has reduced in real terms. So to give a minimum 5% increment or more so that there is a real increase in the salary. And of course incentives for achieving targets. If a salesperson who has blown past or really gone beyond the target, he needs an incentive. Someone who has produced much more than what we're supposed to produce may get an incentive, unless it's of course really overproduced. So this is the performance mechanism framework. And I would encourage if you are an employee, or planning to join a company, or an entrepreneur trying to set up your own company, that you also understand the nuances of how to manage performance of your employees. The next and the most important part may be from an employee perspective is satisfaction. Are you as an employee satisfied? And you would have felt that even if you're a student, are you satisfied with your school, or your college, or your club, or your sports team, are you satisfied? So in the context of a business, employee satisfaction is driven by some of these factors that you see on the screen. First, the leadership and the purpose and the vision. If a company is on a noble purpose, if a company is doing something for the environment, it's a very noble purpose. Doing something for a water, provide water to millions of people, or water, or education, they become very inspiring. And employees want to work for these kind of companies. So oftentimes, the purpose of a vision and the leadership itself of a company is a big driver of employee satisfaction. The way the leaders behave, the way the leaders communicate, the way the leaders demonstrate leads to a lot of satisfaction or dissatisfaction. Employee satisfaction is also driven obviously by pay and benefits. If you pay per industry, you're okay. If the industry level is 100 and you're paying 100, you're okay. If you're paying 100, 200, 305 versus an industry benchmark of 100, obviously employees are more satisfied. But if you pay 95 versus the industry average of 100, maybe the employees are not that satisfied. That's on the monetary side. And then is a personal development side. Am I getting promotions every two years, three years, four years, five years? If I do very well and I get good results, do I get an opportunity to learn more? Is there a training program for me? Can I develop my skills? If I do very well in this job, can I get a different job where I learn more things? Because that's personal development. And then of course, things like, is my work meaningful? The company may be very good and very purposeful. But my work may not be meaningful, and I don't even know how I'm helping the company. So it has to be meaningful work. And the working conditions have to be good. It doesn't have to be luxurious, but good and acceptable. And then the work-life balance. It should not be such that you're working so hard after office hours, on weekends, that you can't devote enough time to the family. And then the balance is lost. So all of this together leads to employee satisfaction. And the higher up you go up in the company, the more you have to understand this. Otherwise, you'll have dissatisfied employees who will soon or later leave you. And the company gets a bad name and nobody wants to join the company anymore. And then the last part is the day-to-day operations of HR. Someone may choose HR as a career. So apart from the recruitment, development, satisfaction, etc., there's also day-to-day work, administrative work, policies and procedures, writing the policies and procedures for the employees, leave policies, benefit policies, etc., records and documentation. Maintaining the records of every employee, every year actually, then the payroll administration, designing the payroll and making sure that employees are paid on time. Then the legal and compliance, because there are a lot of legal requirements, there are a lot of labor laws and they have to be compliant with. And finally the business partnering where you're supporting business leader in sales, finance, operations, marketing to achieve their objectives. So that's human resource management in its totality. And now I'd like you to reflect and write down in your journal a couple of points that I have on the screen. First, think of a company you'd like to join or already are working for, reflect, think, and do a search, if necessary, in the company website. And try to find out information about the HR aspects of that company from the careers page. In a website, most companies will have a careers page or a work for hours page. Go and see what you can find out there and write it down. And then look and do a search on the internet for any public domain feedback. There are websites where employees post about the company, like Glassdoor, etc. See what the existing employees are talking about the company. And that will reflect the human resource aspects of that company. Are they satisfied, are they happy, not happy, what's good, what's not so good. And if you want to do a startup, I strongly encourage you to think now and write down what you have learned, apply to your startup. How will you recruit, how will you train? How will you measure the performance of the employees in your startup? How will you reward them? And what kind of culture will you set up in your startup as a founder? So think and write down. So with this, we come to the end of this module. Thank you, namaskar, till we meet for the next module.