There are various steps involved in the HRM process. First is recruitment, selection, and placement of new employees by interviewing the potential candidates. After picking the right candidates after an interview, the new positions are filling with the qualified candidate. Secondly, it is training and development whereby the new employees are taught how to do their jobs correctly. The management clearly and carefully explains their policies and rules to the new employees. Thirdly is job evaluation, whereby the employees are rated according to their job performance in the organization. The principles of job evaluation are vital during the employee rating. Fourthly is merit rating and promotions, transfers, and demotion.

Moreover, merit rating is significant in justifying wage increases. During the promotion, an employee is transferred to a top paying rank in the same company. Additionally, an employee can be transferred to another company to play the same role or a top rank. During a demotion, an employee is transferred to a lower rank in the same organization.