CAIIB HRM Elective Paper Important Topics and Preparation Strategy

The CAIIB (Certified Associate of Indian Institute of Bankers) is one of the most prestigious professional banking exams conducted by the Indian Institute of Banking & Finance (IIBF). Among its subjects, the HRM Elective paper is gaining prominence as it focuses on human resource management concepts, labour laws, and contemporary HR practices in banks. This paper is crucial for banking professionals who want to excel in HR roles or gain deeper insights into organizational behavior and HR strategies.

In this blog, we have provided the most important topics from the CAIIB HRM Elective paper, along with module-wise weightage, expert insights, and preparation strategies. These topics are curated based on previous year papers and expert analysis.

CAIIB HRM Elective Paper Important Topics

The HRM Elective paper consists of 5 modules (A to E) covering organizational behavior, HR processes, labour laws, and contemporary HR practices. Below are the key topics you should focus on:

Module A – Organizational Behavior & Management Concepts

1. Moonlighting – Concepts and banking sector implications
2. Social Loafing, Ringelmann Effect – Group behavior in banks
3. Group Norms & Dynamics – Cohesion, stages of group development
4. Organizational Structure – Formal vs. Informal, Matrix Structure
5. Human Capital Concepts & HR Metrics
6. Leadership – Transformational & Transactional Leadership
7. Benchmarking & BPR (Business Process Reengineering)
8. Six Sigma – Origin, usage in banks, DMAIC framework
9. Change Management – Kurt Lewin & John Kotter models
10. Knowledge Management – Explicit vs. Tacit knowledge

Module B – HR Processes & Communication

11. Balanced Scorecard – Concept & application in HR
12. Factor Analysis & Succession Planning
13. Job Design & Enrichment – Rotation, Enlargement, OJT methods
14. Communication Models – Shannon & Weaver, Interpersonal, Upward Communication
15. Employer Branding – “Great Place to Work” initiatives
16. Employee Retention & Attrition – Metrics & strategies
17. DBMS & Data Mining in HR Analytics

Module C – Motivation & Training

18. Movement of Truth & Early Termination Concepts
19. Realistic Job Expectations & Hope-Challenging Approach
20. Lewin’s Force Field Analysis
21. Adult Learning & Self-Concept Theories
22. Motivation – Intrinsic vs. Extrinsic, Unconscious Motivation
23. Training Methods – On-the-Job, Hedonism, ROI of Training
24. Demographic Dividend – HR implications for banks

Module D – Labour Laws & Industrial Relations

25. Contract Labour Act, Bombay Shops & Establishments Act
26. Trade Unions – Registration, ID Act, Industrial Relations
27. Payment of Wages, Minimum Wages, Bonus Act
28. Employee Compensation & Provident Fund Act
29. POSH Act – Workplace Safety & Prevention of Sexual Harassment
30. Employment Exchanges Act, Maternity Benefit Act
31. Principles of Natural Justice & Employee Rights
32. Collective Bargaining – Reformative, Integrative, Distributive approaches
33. Douglas McGregor & WPIM Method – Worker participation & management

Module E – Contemporary HR Practices & Ethics

34. Employee Exposure Management – Permanent vs. Gig Workers
35. Corporate Sustainability – CSR 3 Pillars, CS vs. CSR difference
36. Business Ethics – Theories by Aristotle, Milky Theory, Carroll’s Pyramid
37. Crisis Management Models – Finka, Burnett, Mith
38. HR Metrics & HR Analytics – Key applications in banking

Also Check: Which Elective Paper to Choose for CAIIB

Module-Wise Weightage

The module wise weightage for each module is as follows:

Module	Estimated Weightage (%)
Module A	20–25
Module B	20–25
Module C	15–20
Module D	25–30
Module E	10–15

CAIIB BFM Paper Exam Structure

The CAIIB 2025 exam has five papers in total. Four are compulsory ABM, BFM, ABFM, and BRBL, and one is an elective chosen by the candidate based on role or interest. Each paper has 100 questions for 100 marks with a 2-hour duration.

The exam is held online by IIBF and includes MCQs, case studies, and numerical problems to check both knowledge and practical skills.

Feature	Details
Total Questions	100 objective-type multiple-choice questions
Total Marks	100 marks
Case-Based Questions	Includes case studies and case lets
Numerical Input Questions	Some subjects include numerical questions requiring direct input (no options provided)
Exam Mode	Online (Computer-Based Test only)
Negative Marking	No negative marking for wrong answers
Exam Language	Can be attempted either in Hindi or in English

Preparation Strategy for HRM Elective Paper

The preparation strategy for the CAIIB elective paper HRM are as follows:

1. Start with Modules D & E: Labour laws and contemporary HR practices often carry higher weightage.
2. Make short notes: For acts, definitions, and leadership/motivation theories.
3. Practice case studies: Focus on real-life HR scenarios in banks.
4. Revise regularly: HR is conceptual and requires consistent revision.
5. Use previous year questions: Identify recurring questions from modules A, B, and C.
6. Online Courses & Mock Tests: Join structured HRM electives courses to simulate exam conditions.

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