HRM Unit-2
HRM Unit-2
UNIT-2
II/IV – MBA
SANKETIKA VIDYA PARISHAD ENGINEERING COLLEGE
K.Tulasi Raviteja
MBA, APSET (Ph.D)
Assistant Professor
Sanketika Vidya Parishad Engineering College
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Human Resource Planning
Introduction
As told in the last chapter Human resource management has started to play a
significant role in the overall strategic development of the organization. At present
HR strategies are designed in tune with the overall business strategy of the
organization. HR strategy should sub serve the interest of the organization, translating
firm‟s goals and objectives into a consistent, integrated and complimentary set of
programmes and policies for managing people.
First part of Human resource strategy is HRP – Human Resource Planning.
All other HR activities like employee hiring, training and development,
remuneration, appraisal and labour relations are derived from HRP.HR planning is
important in a wide variety of industries and firms. HR planning affects what
employers do when recruiting, selecting, and retaining people, and of course these
actions affect organizational results and success. The challenges caused by changing
economic conditions during recent year‟s show why HR workforce planning
should occur.
Staffing an organization is an HR activity that is both strategic and
operational in nature. As the HR Headline indicates, HR planning is important in a
wide variety of industries and firms. HR planning affects what employers do when
recruiting, selecting, and retaining people, and, of course these actions affect
organizational results and success. Human Resources planning mean different
means to different organizations. To some companies, human resources planning
mean management development. It involve helping executives to make better
decisions, communicate more effectively, and know more about the firm. The
purpose of HRP is to make the manager a better equipped for facing the present
and future.
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Definition of Human Resource Planning
According to Vetter, “HRPis the process by which management determines how the
organization should move from its current man power position to desired
manpower position. Through planning, management strives to have the right time,
doing things which result in both the organization and individual receiving
maximum long run benefits”.
According to Gordon Mc Beath, “HRP is concerned withtwo things: Planning
ofmanpower requirements and Planning of Manpower supplies”.
Nature of HRP
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objectives. The focus of HR planning is to ensure that the organization has the right
number of human resources, with the right capabilities, at the right times, and in the
right places. In HR planning, an organization must consider the availability and
allocation of people to jobs over long periods of time, not just for the next month or
the next year1.
HRP is a sub system in the total organizational planning. Actions may include
shifting employees to other jobs in the organization, laying off employees or otherwise
cutting back the number ofemployees, developing present employees, and/or
increasing the number of employees in certain areas. Factors to consider include
the current employees‟ knowledge, skills, and abilities and the expected vacancies
resulting from retirements, promotions, transfers, and discharges. To do this,
HR planning requires efforts by HR professionals working with executives and
managers.
HRP exists as a part of planning process of business. This is the activity that
aims to coordinate the requirements for the availability of the different types of
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employers. The major activities are the forecasting, (future requirements),
inventorying (present strength), anticipating (comparison of present and future
requirements) and planning (necessary program to meet the requirements).
The HR forecasts are responsible for estimating the number of people and the jobs
needed by an organization to achieve its objectives and realize its plans in the most
efficient and effective manner.
Effective Utilization of HR: The data base will provide the useful
information in identifying surplus and deficiency in human resources. The
objective of HRP is to maintain and improve the organizational capacity to
reach its goals by developing appropriate strategies that will result in the
maximum contribution of HR.
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for a variety of skills. This emphasizes on the need for more effective
recruitment and employee retention.
4) Skill Shortage: Unemployment does not mean that the labour market is
a buyer‟s market. Organizations generally become more complex and
require a wide range of specialist skills that are rare and scare. A problem
arises in an organization when employees with such specialized skills
leave.
6) Legislative Control: The policies of “hire and fire” have gone. Now the
legislation makes it difficult to reduce the size of an organization quickly and
cheaply. It is easy to increase but difficult to shed the fat in terms of the
numbers employed because of recent changes in labour law relating to lay-
offs and closures. Those responsible for managing manpower must look far
ahead and thus attempt to foresee manpower problems.
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9) Lead Time: The log lead time is necessary in the selection process and
training and deployment of the employee to handle new knowledge and
skills successfully.
Importance of HRP
HRP is the subsystem in the total organizational planning. Organizational
planning includes managerial activities that set the company‟s objective for the
future and determines the appropriate means for achieving those objectives. The
importance of HRP is elaborated on the basis of the key roles that it is playing in the
organization.
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4. International Strategies: An international expansion strategy of an
organization is facilitated to a great extent by HR planning. The HR
department‟s ability to fill key jobs with foreign nationals and reassignment
of employees from within or across national borders is a major challenge that
is being faced by international business. With the growing trend towards
global operation, the need for HRP will as well will be the need to integrate
HRP more closely with the organizations strategic plans. Without effective
HRP and subsequent attention to employee recruitment, selection,
placement, development, and career planning, the growing competition
for foreign executives may lead to expensive and strategically descriptive
turnover among key decision makers.
8. Uniting the Viewpoint of Line and Staff Managers: HRP helps to unite the
viewpoints of line and staff managers. Though HRP is initiated and
executed by the corporate staff, it requires the input and cooperation of all
managers within an organization. Each department manager knows about
the issues faced by his department more than anyone else. So
communication between HR staff and line managers is essential for the
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success of HR Planning and development.
HRP is influenced by several factors. The most important of the factors that affect
HRP are (1) type and strategy of organization (2) organizational growth cycles and
planning (3) environmental uncertainties (4) time horizons (5) type and quality of
forecasting information (4) nature of jobs being filled and (5) offloading the
work.
Organizational
Growth cycle
and Planning
Type and
Environmental
Strategy of Uncertainties
Organization.
HRP
Time horizons Outsourcing
Type and
quality of
forecasting N ature of jobs
information being filled
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1. Type and Strategy of the Organization: Type of the organization determines the
production processes involve, number and type of staff needed and the
supervisory and managerial personnel required. HR need is also defined by the
strategic plan of organization. If the organization has a plan for organic growth then
organization need to hire additional employees. On the other hand If the
organization is going for mergers and acquisition, then organization need to plan
for layoffs, as mergers can create, duplicate or overlap positions that can be
handled more efficiently with fewer employees.
The nature of HR plan is also depended upon the flexibility that is practiced in the
organization. HR plan should have the ability to anticipate and deal with
contingencies. Organizations frame HRP in such a way that it can contain many
contingencies, which reflect different scenarios thereby assuring that the plan is
flexible and adaptable.
During the declining stage of the organization HRP takes a different focus like
planning to do the layoff, retrenchment and retirement. In declining situation
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planning always becomes reactive in nature towards the financial and sales
distress faced by the company.
3. Environmental Uncertainties: Political, social and economic changes affect all
organizations and the fluctuations that are happening in these environments affect
organizations drastically. Personnel planners deal with such environmental
uncertainties by carefully formulating recruitment, selection, training and
development policies and programmes. The balance in the organization is achieved
through careful succession planning, promotion channels, layoffs, flexi time, job
sharing, retirement, VRS and other personnel related arrangements.
4. Time Horizons: HR plans can be short term or long term. Short term plans
spans from six months to one year, while long term plans spread over three to
twenty years. The extent of time period depends upon the degree of uncertainty
that is prevailing in an organizations environment. Greater the uncertainty, shorter
the plan time horizon and vice versa.
6. Nature of Jobs Being Filled: Personnel planners need to be really careful with
respect to the nature of the jobs being filled in the organization. Employees belonging
to lower level who need very limited skills can be recruited hastily but, while hiring
employees for higher posts, selection and recruitment need to be carried out with
high discretion. Organization need to anticipate vacancies far in advance as
possible, to provide sufficient time to recruit suitable candidate.
7. Outsourcing: Several organizations outsource part of their work to outside
parties in the form of subcontract. Outsourcing is a regular feature both in the
public sector as well as in the private sector companies. Many of the organizations
have surplus labour and hence instead of hiring more people they go for
outsourcing. Outsourcing is usually done for non critical activities. Outsourcing
of non- critical activities through subcontracting determines HRP.
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HRP Process
HRP effectively involves forecasting personnel needs, assessing personnel
supply and matching demand– supply factors through personnel related
programmes. The HR planning process is influenced by over organizational
Environmental Scanning:
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HR Demand Forecast:
Demand forecasting is the process of estimating the future quantity and quality of
people required to meet the future needs of the organization. Annual budget and
long-term corporate plan when translated into activity into activity form the basis
for HR forecast.
For eg: in the case of a manufacturing company, the sales budget will form the
basis for production plan giving the number and type of products to be produced in
each period. This will form the basis upon which the organization will decide the
number of hours to be worked by each skilled category of workers. Once the
number hours required is available organization can determine the quality and
quantity of personnel required for the task.
HR Supply Forecast:
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shortage of people where and when they are most needed. 5. It also helps to
monitor future compliance with legal requirements of job reservations.
Supply analysis covers the existing human resources, internal sources of supply
and external sources of supply.
HR Programming:
Once an organization‟s personnel demand and supply are forecasted the demand
and supply need to be balanced in order that the vacancies can be filled by the
right employees at the right time.
HR Plan Implementation:
Control and evaluation represent the final phase of the HRP process. All HR plan
include budgets, targets and standards. The achievement of the organization will
be evaluated and monitored against the plan. During this final phase
organization will be evaluating on the number of people employed against the
established (both those who are in the post and those who are in pipe line) and on
the number recruited against the recruitment targets. Evaluation is also done
with respect to employment cost against the budget and wastage accrued so
that corrective action can be taken in future.
Job Analysis
Introduction
Job
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individual employees,” and which is different from other assignments, In other
words, when the total work to be done is divided and grouped into packages, we
call it a “job.” Each job has a definite title based upon standardized trade
specifications within a job; two or more grades may be identified, where the work
assignment may be graded according to skill, the difficulty of doing them, or the
quality of workmanship. Thus, it may be noted that a position is a collection of tasks
and responsibilities regularly assigned to one person;” while a job is a “group of
position, which involve essentially the same duties, responsibilities, skill and
knowledge.” A position consists of a particular set of duties assigned to an
individual.
Decenzo and P. Robbins define other terms as follows:
Task: It is a distinct work activity carried out for a distinct purpose.
Duty: It is a number of tasks.
Position: It refers to one or more duties performed by one person in an
organization, There are at least as many positions as there are
workers in the organization; vacancies may create more positions
than employees.
Job: It is a type of position within the organization.
Job Family: It is group of two or more jobs that either call for similar worker
characteristics or contain parallel work tasks as determined by job
analysis.
Occupation: It is a group of similar jobs found across organizations.
Career: It represents a sequence of positions, jobs, or occupations that a
person has over his working life.
Career
Job Family
Job
Position
Duty
Task
Element
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Job Analysis Defined
Developing an organizational structure, results in jobs which have to be staffed.
Job analysis is the procedure through which you determine the duties and nature of
the jobs and the kinds of people (in terms of skills and experience) who should be
hired for them.‟ It provides you with data on job requirements, whichare then used
for developing job descriptions (what the job entails) and job specifications
(what kind of people to hire for the job). Some of the definitions of job analysis ate
given as follows, to understand the meaning of the term more clearly:
According to Michael L. Jucius, “Job analysis refers to the process of studying the
operations, duties and organizational aspects of jobs in order to derive
specifications or as they called by some, job descriptions.”
1. Achievement of Goals: Weather and Davis have stated, “Jobs are at the core of
every organization‟s productivity, if they are designed well and done right, the
organization makes progress towards its objectives. Otherwise, productivity
suffers, profits fall, and the organization is less able to meet the demands of
society, customer, employees, and other with a stake in its success.”
2. Organizational Design: Job analysis will be useful in classifying the jobs and
the interrelationships among the jobs. On the basis of information obtained
through job analysis, sound decisions regarding hierarchical positions and
functional differentiation can be taken and this will improve operational efficiency.
3. Organization and Manpower Planning: It is helpful in organization planning, for
it defines labour in concrete terms and co-ordinates the activities of the work force, and
clearly divides duties and responsibilities.
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assigned to persons on the basis of suitability for the job. The orientation
programme will help the employee in learning the activities and understanding
duties that are required to perform a given job more effectively.
6. Employee Training and Management Development: Job analysis provides the
necessary information to the management of training and development
programmes. It helps in to determine the content and subject matter of in training
courses. It also helps in checking application information, interviewing test results
and in checking references.
7. Job Evaluation and Compensation: Job evaluation is the process of determining
the relative worth of different jobs in an organization with a view to link
compensation, both basic and supplementary, with the worth of the jobs. The
worth of a job is determined on the basis of job characteristics and job holder
characteristics. Job analysis provides both in the forms of job description and job
specification.
8. Performance Appraisal: Performance appraisal involves comparing each
employee‟s actual performance with his or her desired performance. Through
job analysis industrial engineers and other experts determine standards to be
achieved and specific activities to be performed.
9. Health and Safety: It provides an opportunity for identifying hazardous
conditions and unhealthy environmental factors so that corrective measures may
be taken to minimize and avoid the possibility of accidents.
10. Employee Counselling: Job analysis provides information about career choices
and personal limitation. Such information is helpful in vocational guidance and
rehabilitation counselling. Employees who are unable to cope with the hazards and
demands of given jobs may be advised to opt for subsidiary jobs or to seek
premature retirement.
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descriptions which provide a starting point from which to build the revised job
description”.
When the employee requests an analysis it is usually because new job demands
have not been reflected in changes in wages. Employee‟s salaries are, in part, based
upon the nature of the work that they perform. Some organizations establish a time
cycle for the analysis of each job. For example: A job analysis may be required for all
jobs every three years. New jobs must also be subjected to analysis.
4. Collection of Job Analysis Data: Job data on features of the job, requited
employee qualification and requirements, should be collected either form the
employees who actually perform a job; or from other employees (such as
foremen or supervisors) who watch the workers doing a job and there by
acquire knowledge about it; or from the outside persons, known as the trade job
analysis who are appointed to watch employees performing a job. The duties of such
a trade job analyst are (i) to outline the complete scope of a job and to consider all
the physical and mental activities involved in determining what the worker
does.; (ii) find out why a worker does a job; and for this purpose he studies why
each task is essential for the overall result; and (iii) the skill factor which may be
needed in the worker to differentiate between jobs and establish the extent of the
difficulty of any job.
5. Processing the Information: Once job analysis information has been collected,
the next step is to place it in a form that will make it useful to those charged with
the various personnel functions. Several issues arise with respect to this. First, how
much detail is needed? Second, can the job analysis information be expressed in
quantitative terms? These must be considered properly.
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7. Developing Job Specifications: Job specifications are also prepared on the
basis of information collected. It is a statement of minimum acceptable
qualities of the person to be placed on the job. It specifies the standard by
which the qualities of the person are measured. Job analyst prepares such
statement taking into consideration the skills required in performing the job
properly. Such statement is used in selecting a person matching with the job.
2. Interview: There are three types of interviews you can use to collect job
analysis data: individual interviews with each employee; group interviews with
groups of employees having the same job; and supervisor interviews with one or
more supervisors who are thoroughly knowledgeable about the job being
analyzed. The group interview is used when a large number of employees are
performing similar or identical work, since this can be a quick and inexpensive
way of learning about the job. As a rule, the worker‟s immediate supervisor would
attend the group session; if not, you should interview the supervisor separately to
get that person‟s perspective on the duties and responsibilities of the job.
3. Critical Incidents: In this method, job holders are asked to describe incidents
concerning the job on the basis of their past experience. The incidents so collected
are analyzed and classified according to the job areas they describe, A fairly
picture of actual job requirements can be obtained by distinguishing between
effective and ineffective behaviors of workers on the job. However, this method is time
consuming. The analyst requires a high degree of skill to analyze the contents of
descriptions given by workers.
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4. Technical Conference Method: This method utilizes supervisors with
extensive knowledge of the job. Here, specific characteristics of a job are obtained
from the “experts.” Although it is a good data gathering method, it often
overlooks the incumbent worker‟s perception about what they do on their job.
5. Job Performance: Under this method, the job analyst actually performs the job
under study to get first-hand experience of the actual tasks, and physical and social
demands of the job. This method can be used only for jobs where skill
requirements are low and can be learnt quickly and easily. This is a time-
consuming method and is not appropriate for jobs requiring extensive training.
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Questionnaire for Job Analysis
1. Your Name ………..………..………..………..………..………..………..
2. Title or Designation of your job …………………………………………
Daily Duties:
Periodical Duties:
Occasional Duties:
Your
Whatknowledge
EquipmentRequirements:
do you use?
What Materials do you work with or sell?
If you supervise the work of others, state how many and what their jobs
are.
To what job would you normally expect to be promoted?
From what job were you transferred to your present job?
This technique is time consuming and generally does not yield satisfactory results
because many employees do not complete the questionnaire or furnish incorrect
information because of their own limitations. The use of questionnaire is
recommended only in case of those technical jobs where the job contents are not
completely known to the supervisor or the operation is too complex to observe.
RECRUITMENT
Meaning:- Recruitment is the process of searching for prospective
employees & stimulating them to apply for jobs in the organisation.
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SOURCES OF RECRUTIMENT (METHODS/TECHNIQUES)
a. Promotion:
b. Transfer
2. Job Posting:
3. Employee Referrals:-
1. Advertisement:-
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Management gets a wider range of candidates for selection. The flood of
application may create difficulties in the process.
2. Direct Recruitment:-
Direct recruitment refers to the external source of recruitment
where the recruitment of qualified candidates are done by placing a
notice of vacancy on the notice board in the organization. This method
of sourcing is also called as factory gate recruitment, as the blue-collar
and technical workers are hired through this process.
3. Employment Exchanges:-
As per the law, for certain job vacancies, it is mandatory that the
organization provides details to the employment exchange.
Employment exchange is a government entity, where the details of the
job seekers are stored and given to the employers for filling the vacant
positions. This external recruitment is helpful in hiring for unskilled,
semi-skilled, and skilled workers.
4. Employment Agencies:-
Employment agencies are a good external source of recruitment.
Employment agencies are run by various sectors like private, public, or
government. It provides unskilled, semi-skilled and skilled resources as
per the requirements of the organization. These agencies hold a database
of qualified candidates and organizations can use their services at a cost.
5. Professional Associations:-
Professional associations can help an organization in hiring
professional, technical, and managerial personnel; however they
specialize in sourcing mid-level and top-level resources. There are many
professional associations that act as a bridge between the organizations
and the job-seekers.
6. Campus Recruitment:-
Campus recruitment is an external source of recruitment, where
the educational institutions such as colleges and universities offer
opportunities for hiring students. In this process, the organizations visit
technical, management, and professional institutions for recruiting
students directly for the new positions.
7. Word of Mouth Advertising:-
Word of mouth is an intangible way of sourcing the candidates
for filling up the vacant positions. There are many reputed organizations
with good image in the market. Such organizations only need a word-of-
mouth advertising regarding a job vacancy to attract a large number of
candidates.
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SELECTION
Meaning
Definition
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4. Reference & Background Verification:- many organisation ask the
candidates to provide the names of referees from whom more
information about the candidates can be solicited. Such information
may be related to character, working etc. the usual referees may be
previous employers, person‟s associated with the educational institutions
from where the candidates have received education or other person‟s of
prominence who may be aware of the candidates‟ behaviours ability.
5. Medical Examinations:- certain jobs require unusual strength to
tolerance of hard working conditions. A physical examination reveals
whether or not a candidate possesses these qualities. It brings out
deficiencies not as a basis of rejection but as a positive aid to selective
placement & as indicating restrictions on his transfer to other
positions.
6. Approval by Appropriate Authority or Hiring Decisions:- on the
basis of the above steps suitable candidates are recommended for
selection by the selection committee or personnel department. Though
such a committee or personnel department may have authority to
select the candidate finally , often it has staff authority to recommend
the candidates for selection to the appropriate authority.
7. Placement:- After all the formalities are completed the candidates are
placed on their jobs initially on probation basis. The probation period
may range from 3 months to 2 years. During this period, they are
observed keenly, & when they complete this period successfully, they
become the permanent employees of the organization.
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4. Vocational / Interest Test:- these tests are inventories of the like &
dislikes of candidates in relation to work, job, occupations, hobbies &
recreational activities. The purpose of this test is to find out whether a
candidate is interested or disinterested in the job for which he is a
candidate & to find out there is high correlation between the interest of a
candidate in a job & job success.
5. Personality test:- these tests probe deeply to discover clues to an
individual‟s value system, his emotional reactions & maturity &
characteristic mood. They are expressed in such traits like tact,
emotional control, optimism, decisiveness, sociability, conformity,
objectivity, patience, fear, distrust, initiative, judgement dominance
or submission, impulsiveness, sympathy, integrity, stability & self
confidence.
6. Group discussion:- this test administered through the group
discussion approach to solve a problem under which candidate are
observed in the areas of initiating, leading, proposing valuable ideas,
conciliating skills, oral communicating skills, coordinating &
concluding skills.
INTERVIEW
Meaning:- Interview means a conversation between interviewer &
interviewee aimed at assessing the potentialities for a job.
Types of Interview
1. Informal Interview: This is may take place anywhere. The employer
or a manager in the personnel department may ask a few questions,
like name, place of birth, previous experience, etc. It is not planned
and is used widely when the labour market is tight and you need
workers very badly. A friend or a relative of the employer may take a
candidate to the house of the employer or manager where this
type of interview may be conducted.
2. Formal Interview: This held in a more formal atmosphere in the
employment office by the employment officer with the help of well-
structured questions. The time and place of the interview are
stipulated by the employment office.
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3. Planned Interview: This is a formal interview carefully planned. The
interviewer has a plan of action worked out in relation to time to be
devoted to each candidate, type of information to be sought,
information to be given, the modality of interview and so on. He may
use the plan with some amount of flexibility.
4. Patterned Interview: This is also a planned interview but planned to
a higher degree of accuracy, precision and exactitude. A list of
questions and areas are carefully prepared. The interviewer goes down
the list of questions, asking them one after another.
5. Non-directive Interview: This is designed to let the interviewee
speak his mind freely. The interviewer is a careful and patient
listener, prodding whenever the candidate is silent. The idea is to
give the candidate complete freedom to „sell‟ himself without
encumbrances of the interviewer‟s questions.
6. Depth Interview: This is designed to intensively examine the
candidate‟s background and thinking and to go into considerable
detail on a particular subject to special interest to the candidate. The
theory behind it is that if the candidate is found good in his area of
special interest, the chances are high that if given a job he would take
serious interest in it.
7. Stress Interview: This is designed to test the candidate and his
conduct and behaviour by putting him under conditions of stress and
strain. This is very useful to test the behaviour of individuals under
disagreeable and trying situations.
8. Group Interview: This is designed to see how the candidates react to
and against each other. All the candidates may be brought together in
the office and they may be interviewed. The candidates may,
alternatively, be given a topic for discussion and be observed as to
who will lead the discussion, how they will participate in the
discussion, how each will make his presentation and how they will
react to each other‟s views and presentation.
9. Panel Interview: This is done by members of the interview board or a
selection committee. This is done usually for supervisory and
managerial positions. It pools the collective judgement and wisdom
of members of the panel. The candidate may be asked to meet the
panel individually for a fairly lengthy interview.
*****
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