HR Knowledge Book

On this page
  1. 0.1 How each chapter is organised
  2. 0.2 Chapters and priorities
  3. 0.3 How HR interviews test you
  4. 0.4 India HR in 2025–26: what panels expect you to know
  5. 0.6 Main corrections to the compendium
  6. 0.7 A two-week plan

Start Here: How to Use This Book

HR Knowledge Book for Placements · Facts current to October 2026

What this is. A knowledge book on human resource management for HR interviews and group discussions in India. It started from the HR Direction compendium (2026–27), but every chapter has been rewritten, expanded and fact-checked against primary and professional sources. Where the compendium is wrong or out of date, the chapter says so in a Correction note.

Two versions of each chapter. The Book explains each topic fully, with definitions, principles, examples, tables and interview questions. The Notes version condenses the same chapter into a revision sheet with a recall column and self-test questions.

0.1How each chapter is organised

In short

Sections are self-contained, so you can study in any order. The side panel summarises each section and lists the terms to recall.

Recall

  • Side panel: In short + Recall
  • Correction and India notes
  • Interview questions at the end
  • Notes: cue column + fold line

Every chapter opens with a statement of what it covers and why it matters in interviews. Each numbered section then follows the same pattern: a side panel with a short summary and the key terms to recall, followed by the explanation (definition, underlying principle, how it works, examples, and limitations or best practice). Tables are used for comparisons, formulas and worked examples.

Two kinds of note appear in the text. Correction marks a point where the compendium is wrong or outdated. India gives Indian law, practice or data.

Each chapter ends with interview questions answered in full sentences. They are model reasoning, not scripts: answer in your own words.

Using the Notes. Each section of a Notes chapter has the section title and recall terms in the left column and condensed notes on the right. Cover the right side and try to explain each term; fold the page at the dashed line beneath a question to test yourself before reading the answer.

0.2Chapters and priorities

In short

Priorities reflect how often topics come up in HR interviews at Indian campuses.

Recall

  • Highest: 2, 3, 5, 10, 11, 12
  • Your depth areas: 2, 5, 6
Chapter Priority Why
2 Compensation and Benefits (three parts)HighestPay structure, CTC, the new wage definition and job evaluation are asked by almost every employer
3 Performance ManagementHighestBell curve, KPIs and OKRs, calibration and rating design are panel favourites
5 Engagement, Well-being, EX and EVPHighestAttrition, surveys and EVP scenarios
10 Industrial Relations and the IR CodeHighest for manufacturing rolesUnions, discipline, strikes, retrenchment
11 Labour Codes IIHighestThe Codes have applied since November 2025; panels test whether you have kept up
12 Group DiscussionsHighest for GD roundsFifteen topics with facts and balanced positions
1 Talent AcquisitionHighSelection methods, offer drop-outs, AI in hiring
6 Org Design, Job Architecture and Workforce PlanningHighStructures, spans, job architecture, manpower planning
4 Learning and DevelopmentHighTraining needs, evaluation, ROI
8 Change ManagementHighModels with practical scenarios, including unionised plants
9 HR Analytics, HR Tech and AIHighAttrition analytics, AI risks, the DPDP Act
7 Organisational Behaviour and CultureSupportingTheories that strengthen answers in every other chapter

0.3How HR interviews test you

In short

Prepare four types of question for each topic and use a small set of answer structures.

Recall

  • Concept, compare, apply, opinion
  • Define → why → example → limitation
  • Clarify → diagnose → act → measure
  • Position → reasons → counter → middle path
  • Business language
Question type Example What is being tested How to answer
Concept“What is compa-ratio?”Accurate fundamentalsDefine it, give the formula or principle, a numerical example and its use
Comparison“OKR versus KPI?” “Lay-off versus retrenchment?”Ability to distinguish related ideasCompare on three or four dimensions: purpose, time frame, who decides, example
Application“Attrition in your plant is 30%. What would you do?”Judgement and structureState an assumption, diagnose with data, act on the main causes, measure the result
Opinion“Should India legislate a right to disconnect?”Awareness, balance and maturityTake a position, give two reasons with evidence, acknowledge the strongest counter-argument, end with a practical middle path

Three structures cover most questions. For concepts: definition, why it matters, example, limitation; the limitation is what distinguishes an understood answer from a memorised one. For scenarios: clarify, diagnose, act, measure. For opinions: position, reasons, counter-argument, balanced recommendation.

Use business language. Connect HR answers to cost, productivity, risk, customers or growth. “This would reduce regretted attrition among process engineers, each of whom costs several months of salary to replace” is stronger than “this would improve morale”.

0.4India HR in 2025–26: what panels expect you to know

In short

Ten developments recur across chapters. Know them precisely.

Recall

  • Labour Codes in force; central rules
  • Wage definition, 50% rule
  • FTE gratuity
  • 300-worker threshold; reskilling fund
  • Strike notice
  • Gig workers; e-Shram
  • EPF ceiling ₹25,000
  • DPDP Rules
  • Women at night
  • AI restructuring
  1. The four Labour Codes (Wages 2019; Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions 2020) came into force on 21 November 2025, replacing 29 central laws. Final central rules were notified on 8 May 2026; states are notifying their own rules at different speeds (Chapters 10 and 11).
  2. “Wages” now has one definition: basic pay, dearness allowance and retaining allowance. If excluded allowances exceed 50% of total remuneration, the excess counts as wages for PF, gratuity and bonus, which led many companies to restructure salaries (Chapter 2).
  3. Fixed-term employees receive the same pay and benefits as permanent staff and become eligible for gratuity after one year (Chapters 2, 10, 11).
  4. Government permission for lay-off, retrenchment and closure is now required only at 300 or more workers (previously 100), standing orders apply at 300, and a reskilling fund of 15 days’ wages is paid for each retrenched worker (Chapter 10).
  5. Strike and lockout notice rules now apply to all industrial establishments, and mass casual leave by half or more of the workers counts as a strike (Chapter 10).
  6. Gig and platform workers are recognised for social security for the first time, funded by aggregator contributions; aggregators must register workers on the e-Shram portal, and benefits require 90 days with one aggregator or 120 days across several (Chapter 11).
  7. The EPF wage ceiling rose from ₹15,000 to ₹25,000 a month from 17 September 2026, the first change since 2014; the ESI ceiling remains ₹21,000 (Chapters 2 and 11).
  8. The DPDP Rules were notified on 13 November 2025 and phase in over 18 months; employers may process employee data for employment purposes without consent but must protect it and report breaches within 72 hours (Chapter 9).
  9. Women may work night shifts in all establishments with written consent and safeguards such as transport and CCTV (Chapter 11).
  10. AI is reshaping work: TCS reduced about 12,000 roles in 2025 while still hiring freshers, and companies are redesigning entry-level work and reskilling at scale (Chapters 4, 6, 9 and 12).

Common mistakeDo not say the Labour Codes “will be implemented soon”. The accurate statement is: “The Codes have applied since November 2025; the central rules were finalised in May 2026, and states are at different stages of notifying theirs, so organisations are working through a transition.”

0.6Main corrections to the compendium

In short

The most important errors and outdated points, with the chapter where each is corrected.

Topic Compendium Correct position Chapter
Labour Codes statusDescribed as of early 2026In force since 21 November 2025; final central rules 8 May 2026; EPF ceiling raised September 202611
DPDP and employee dataConsent required for employee data; no breach deadlineEmployment purposes are a legitimate use without consent; detailed breach report within 72 hours9
“Industry”Charitable organisations may qualifyThe IR Code excludes charitable, social and philanthropic institutions, sovereign functions and domestic service10
Compa-ratioSalary versus market averageSalary versus the midpoint of the employee’s pay range2
Unilever hiring case7% faster; $1 million savedAbout four months reduced to four weeks; about £1 million a year (company-reported)1
Working hours under the OSH Code“Maximum 8 hours a day”8-hour normal day for daily-wage workers; 48-hour week; overtime capped at 144 hours a quarter; states may allow longer days11
9-box grid originDeveloped by McKinsey for peopleAdapted from the GE–McKinsey portfolio matrix3
MaslowEach level must be satisfied before the nextNo evidence for a strict sequence7
70-20-10A measured breakdownA heuristic from executives’ recollections4
Early attrition formulaLeavers ÷ employees at startLeavers ÷ hires in the cohort3
MBTIPresented without caveatsWeak reliability; unsuitable for selection7

0.7A two-week plan

In short

Read the book chapter, then revise from the notes and practise aloud.

Days Read (Book) Then practise
1–22 Compensation and BenefitsExplain job evaluation → grades → pay ranges in 90 seconds; calculate gratuity, PF and compa-ratio
36 Org Design and Job ArchitectureExplain how job architecture connects to grading and pay
4–511 Labour Codes II, 10 Industrial RelationsSelf-test from the Notes on thresholds and timelines
63 Performance ManagementMock: “Should we drop the bell curve?”
75 Engagement and EVPMock: attrition and EVP scenarios
81 Talent Acquisition, 4 Learning and DevelopmentMetrics and evaluation drills
98 Change Management, 9 Analytics and AIScenario drills
107 OB and CultureApply one theory to each earlier scenario
11–1412 Group Discussions; Notes for every chapterTwo GDs and one mock interview a day; revise from the Notes

Principal sources used across the book are listed at the end of each chapter. Statutory points were checked against the Codes and rules, government notifications (PIB, EPFO, MeitY) and law-firm and Big Four summaries of the final central rules. State rules differ and continue to be notified: check the relevant state before advising on any real case.