UNIT I

Introduction

In all activities men and resources are involved. For a long time, men or workers were taken for
granted. Greater accent was given to resources, production machinery and top managers. But at
present in the modern large-scale production of innumerable products with a wide market, (where
sky is the limit) in the last few decades the importance of human resources and their development
has come to the fore. The importance of human resources to any organization need not be over-
emphasised. Human resource is the wealth of a nation and an organisation. The development
process is wide and varied. In this lesson, let us understand the importance and concept of Human
Resources Management. (HRM).

Human Resources

In the general parlance, human resources are people and their characteristics at work either at the
national level or organisational level. Megginson has defined human resources as follows: “From
the national point of view, human resources are knowledge, skills, creative abilities, talents and
attitudes obtained in the population; whereas from the viewpoint of the individual enterprise they
represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the
talents and aptitudes of its employers”

Sumantra Ghosal considers human resources as human capital. He classifies human capital into
three categories – intellectual capital, social capital and emotional capital. Intellectual capital
consists of specialized knowledge, tacit knowledge and skills, cognitive complexity and learning
capacity. Social capital is made up of network of relationships, sociability, and trustworthiness.
Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability and
resilience”.

In simple words, HRM is a process of making the efficient and effective use of human resources
so that the set goals are achieved.

Definition

According to Flippo, ‘Personnel Management, or say, human resources management is the

planning, organizing, directing and controlling of the procurement, development, compensation,
integration, maintenance, and separation of human resources to the end, that individual,
Organisational and social objectives are accomplished”.

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
The National Institute of Personal Management (NIPM) of India has defined human resources –
personal management as “that part of management which is concerned with people at work and
with their relationship within an enterprise. Its aim is to bring together and develop into an effective
organization of the men and women who make up enterprise and having regard for the well – being
of the individuals and of working groups, to enable them to make their best contribution to its
success”.

According to Decenzo and Robbins, “HRM is concerned with the people dimension” in
management. Since every organization is made up of people, acquiring their services, developing
their skills, motivating them to higher levels of performance and ensuring that they continue to
maintain their commitment to the organization is essential to achieve organisational objectives.
This is true, regardless of the type of organization – government, business, education, health or
social action”.

HRM can be defined as a process of procuring, developing and maintaining competent resources
in the organization so that goals of an organization are achieved in an effective and efficient
manner. In other words, HRM is an art of managing people at work in such a manner that they
give best to the organisation.

Significance of HRM

Human resources are the most precious asset of an organization. They are the activators of non-
human resources, means for developing competitive advantages and sources of creativity. Ghoshal
outlines the role of HRM in managing an organization in the following lines. “Indian Companies
have spruced up their strategic thinking; they have even moved a generation ahead with their
organsations.

But they still have managers who have been shaped by old models. They are essentially a group
of first-generation managers whose definitions of roles and tasks, personal skills and
competencies, ideas and beliefs about management have been shaped by an earlier model. You
cannot manage third generation strategies with second generation organizations and first-
generation managers to meet the needs of second-generation organisations and third generations
strategic thinking.

The above view indicates the role of HRM in Indian industry. Significance of HRM can be viewed
in three contexts; organizational, social and professional.

Organisational significance

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DEPARTMENT OF BUSINESS ADMINISTRATION
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 ▪ Effective utilization of human resources to motivate them and to change their attitudes to
work and the organization.
▪ To develop personnel to meet the demands of the work effectively; and
▪ To ensure proper recruitment and to retain personnel in the organization so that right people
are available.

Social significance

This aspect aims in achieving the need satisfaction of personnel in the organisation. It is often said
that a happy worker is not only happy in his work place but also at home and in society also.

Hence HRM seeks to achieve the following

▪ Maintaining balance between jobs and job-seekers, taking into consideration job
requirements, job seekers’ abilities and aptitudes
▪ Providing most productive employment from which socio-psychological satisfaction can
be derived.
▪ Utilizing human capabilities effectively and matching with government rewards. iv.
Eliminating wasteful organizational and individual practices.

Professional Significance

This aspect involves in developing people and providing appropriate environment for effective
utilization of their capabilities and involves the following.

▪ Developing people on continuous basis to meet the challenges of their jobs.

▪ Maintaining the dignity of personnel at the work place;
▪ Providing proper physical and social environment at the work place to make

Scope of Human Resource Management

The scope of Human Resource Management refers to all the activities that come under the banner
of Human Resource Management. These activities are as follows.

Figure 1 Scope of Human Resource Management

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 • Human resources planning :- Human resource planning or Human Resource Planning
refers to a process by which the company to identify the number of jobs vacant, whether
the company has excess staff or shortage of staff and to deal with this excess or shortage.

• Job analysis design: - Another important area of Human Resource Management is job
analysis. Job analysis gives a detailed explanation about each and every job in the
company.

• Recruitment and selection: - Based on information collected from job analysis the company
prepares advertisements and publishes them in the newspapers. This is recruitment. A
number of applications are received after the advertisement is published, interviews are
conducted and the right employee is selected thus recruitment and selection are yet another
important area of Human Resource Management.

• Orientation and induction :- Once the employees have been selected

an induction or orientation program is conducted. This is another important area of Human
Resource Management. The employees are informed about the background of the
company, explain about the organizational culture and values and work ethics and
introduce to the other employees.

• Training and development :- Every employee goes under training program which helps
him to put up a better performance on the job. Training program is also conducted for
existing staff that have a lot of experience. This is called refresher training. Training and
development are one area where the company spends a huge amount.

• Performance appraisal :- Once the employee has put in around 1 year of

service, performance appraisal is conducted that is the Human Resource department checks
the performance of the employee. Based on these appraisal future promotions, incentives,
increments in salary are decided.

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DEPARTMENT OF BUSINESS ADMINISTRATION
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 • Compensation planning and remuneration: - There are various rules
regarding compensation and other benefits. It is the job of the Human Resource department
to look into remuneration and compensation planning.

• Motivation, welfare, health and safety :- Motivation becomes important to sustain the
number of employees in the company. It is the job of the Human Resource department to
look into the different methods of motivation. Apart from this certain health and
safety regulations have to be followed for the benefits of the employees. This is also
handled by the HR department.

• Industrial relations: - Another important area of Human Resource Management is

maintaining co-ordinal relations with the union members. This will help the organization
to prevent strikes lockouts and ensure smooth working in the company.

The Human Resource Officer is responsible for providing support in the various human resource
functions, which include recruitment, staffing, training and development, performance monitoring
and employee counselling.

NATURE OF HUMAN RESOURCE MANAGEMENT

The nature of the human resource management has been highlighted in its following features:

1. Inherent Part of Management: Human resource management is inherent in the process of

management. This function is performed by all the managers throughout the organisation rather
that by the personnel department only. If a manager is to get the best of his people, he must
undertake the basic responsibility of selecting people who will work under him.

2. Pervasive Function: Human Resource Management is a pervasive function of management. It

is performed by all managers at various levels in the organisation. It is not a responsibility that a
manager can leave completely to someone else. However, he may secure advice and help in
managing people from experts who have special competence in personnel management and
industrial relations.

3. Basic to all Functional Areas: Human Resource Management permeates all the functional
area of management such as production management, financial management, and marketing
management. That is every manager from top to bottom, working in any department has to perform
the personnel functions.

4. People Centred: Human Resource Management is people centred and is relevant in all types of
organisations. It is concerned with all categories of personnel from top to the bottom of the

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DEPARTMENT OF BUSINESS ADMINISTRATION
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organisation. The broad classification of personnel in an industrial enterprise may be as follows:
(i) Blue-collar workers (i.e. those working on machines and engaged in loading, unloading etc.)
and white-collar workers (i.e. clerical employees), (ii) Managerial and non-managerial personnel,
(iii) Professionals (such as Chartered Accountant, Company Secretary, Lawyer, etc.) and
nonprofessional personnel.

5. Personnel Activities or Functions: Human Resource Management involves several functions

concerned with the management of people at work. It includes manpower planning, employment,
placement, training, appraisal and compensation of employees. For the performance of these
activities efficiently, a separate department known as Personnel Department is created in most of
the organisations.

6. Continuous Process: Human Resource Management is not a ‗one shot ‘function. It must be
performed continuously if the organisational objectives are to be achieved smoothly.

7. Based on Human Relations: Human Resource Management is concerned with the motivation
of human resources in the organisation. The human beings can ‘t be dealt with like physical factors
of production. Every person has different needs, perceptions and expectations. The managers
should give due attention to these factors. They require human relations skills to deal with the
people at work. Human relations skills are also required in training performance appraisal, transfer
and promotion of subordinates.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

According to Scott, Clothier and Spriegal, ―The objectives of Human Resource Management, in
an organisation, is to obtain maximum individual development, desirable working relationships
between employers and employees and employers and employees, and to affect the moulding of
human resources as contrasted with physical resources.

The basic objective of human resource management is to contribute to the realisation of the
organisational goals. However, the specific objectives of human resource management are as
follows:

(i) To ensure effective utilisation of human resources, all other organisational resources
will be efficiently utilised by the human resources.
(ii) To establish and maintain an adequate organisational structure of relationship among
all the members of an organisation by dividing of organisation tasks into functions,
positions and jobs, and by defining clearly the responsibility, accountability, authority
for each job and its relation with other jobs in the organisation.

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DEPARTMENT OF BUSINESS ADMINISTRATION
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 (iii) To generate maximum development of human resources within the organisation by
offering opportunities for advancement to employees through training and education.
(iv) To ensure respect for human beings by providing various services and welfare facilities
to the personnel.
(v) To ensure reconciliation of individual/group goals with those of the organisation in
such a manner that the personnel feel a sense of commitment and loyalty towards it.
(vi) To identify and satisfy the needs of individuals by offering various monetary and non-
monetary rewards

In order to achieve the above objectives, human resource management undertakes the following
activities:

▪ Human Resource Planning, i.e., determining the number and kinds of personnel required
to fill various positions in the organisation.
▪ Recruitment, selection and placement of personnel, i.e., employment function.
▪ Training and development of employees for their efficient performance and growth.
▪ Appraisal of performance of employees and taking corrective steps such as transfer from
one job to another.
▪ Motivation of workforce by providing financial incentives and avenues of promotion.
▪ Remuneration of employees. The employees must be given sufficient wages and fringe
benefits to achieve higher standard of living and to motivate them to show higher
productivity.
▪ Social security and welfare of employees.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

The main functions of human resource management are classified into two categories: (a)
Managerial Functions and (b) Operative Functions

(a) Managerial Functions Following are the managerial functions of Human Resources
Management.

1. Planning: The planning function of human resource department pertains to the steps taken in
determining in advance personnel requirements, personnel programmes, policies etc. After
determining how many and what type of people are required, a personnel manager has to devise
ways and means to motivate them.

2. Organisation: Under organisation, the human resource manager has to organise the operative
functions by designing structure of relationship among jobs, personnel and physical factors in such
a way so as to have maximum contribution towards organisational objectives. In this way a

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DEPARTMENT OF BUSINESS ADMINISTRATION
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personnel manager performs following functions: (a) preparation of task force; (b) allocation of
work to individuals; (c) integration of the efforts of the task force; (d) coordination of work of
individual with that of the department.

3. Directing: Directing is concerned with initiation of organised action and stimulating the people
to work. The personnel manager directs the activities of people of the organisation to get its
function performed properly. A personnel manager guides and motivates the staff of the
organisation to follow the path laid down in advance.

4. Controlling: It provides basic data for establishing standards, makes job analysis and
performance appraisal, etc. All these techniques assist in effective control of the qualities, time
and efforts of workers.

(b) Operative Functions: The following are the Operative Functions of Human Resource
Management

1. Procurement of Personnel: It is concerned with the obtaining of the proper kind and number
of personnel necessary to accomplish organisation goals. It deals specifically with such subjects
as the determination of manpower requirements, their recruitment, selecting, placement and
orientation, etc.

2. Development of Personnel: Development has to do with the increase through training, skill
that is necessary for proper job performance. In this process various techniques of training are used
to develop the employees. Framing a sound promotion policy, determination of the basis of
promotion and making performance appraisal are the elements of personnel development function.

3. Compensation to Personnel: Compensation means determination of adequate and equitable

remuneration of personnel for their contribution to organisation objectives. To determine the
monetary compensation for various jobs is one of the most difficult and important function of the
personnel management. A number of decisions are taken into the function, viz., job-evaluation,
remuneration, policy, inventive and premium plans, bonus policy and co-partnership, etc. It also
assists the organisation for adopting the suitable wages and salaries, policy and payment of wages
and salaries in right time.

4. Maintaining Good Industrial Relation: Human Resource Management covers a wide field. It
is intended to reduce strife’s, promote industrial peace, provide fair deal to workers and establish
industrial democracy. It the personnel manager is unable to make harmonious relations between
management and labour industrial unrest will take place and millions of man-days will be lost. If
labour management relations are not good the moral and physical condition of the employee will

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ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
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suffer, and it will be a loss to an organisation vis-a-visa nation. Hence, the personnel manager must
create harmonious relations with the help of sufficient communication system and co-partnership.

5. Record Keeping: In record-keeping the personnel manager collects and maintains information
concerned with the staff of the organisation. It is essential for every organisation because it assists
the management in decision making such as in promotions.

6. Personnel Planning and Evaluation: Under this system different type of activities are
evaluated such as evaluation of performance, personnel policy of an organisation and its practices,
personnel audit, morale, survey and performance appraisal, etc.

Figure 2 Functions of Human Resource management

Changing role of HRM

Human Resources Management seeks to understand and then support how people do their jobs.
Just as important, however, is the understanding of the environment in which that work is done;
and how it contributes to the overall success of the organization - i.e. organizational effectiveness.
The two are certainly inter-related and inter-dependent.

The Four Roles of HR To truly understand the field of Human Resources Management, one must
consider and accept the four basic roles of the HR function, no matter how it's defined. Some of
these are already understood and others less so. These are:

1. Compliance and enforcement

2. Management advocacy

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3. Strategic partner

4. Employee advocacy

The first two we've got down pat. We've just begun making inroads on the third and still can't seem
to get a handle on the fourth.

The Enforcer: Most HR practitioners will agree that the role as the employer's compliance officer
is well established. But, it's increasingly difficult to keep track of changes in state, federal and local
laws and regulations. These must then be translated into effective policies and practices. A greater
emphasis is also placed today on taking preventative measures to forestall, or at least mitigate, the
effects of employee complaints of harassment, wrongful discharge, or discrimination. Though
generally perceived of as a reactive function, HR professionals will have to increasingly rely on
proactive solutions.

Management Representative: This is the other traditional HRM role. As part of the management
staff, the HR department is the point of interface between management policies and its employees.
It's charged with communicating and interpreting management dicta. These responsibilities are
also considered an extension of the compliance and enforcement roles. What is not communicated,
can seldom be enforced.

The "open-book management" movement furthers a trend toward greater employee empowerment
and is based on a greater sharing of information; much of which is coordinated through human
resource procedures.

Strategic Partner: HR has begun stepping from its historical reactive function - like the guy who
follows a parade of elephants with a shovel on his shoulder. A complaint is filed, react to it. Jobs
open up, fill 'em. Absenteeism's on the rise, step up the discipline. The movement to include human
resources management in the strategic decision-making process is a relatively new phenomenon.
Only a relatively small number of organizations have yet to grant this recognition. This new role
does bring with it additional burdens and responsibilities; to be aware of changes in the external
environment that will impact the organization; offer appropriate strategies and procedures to
anticipate change; and provide regular feedback that helps steer strategic planning. A whole new
set of skills and perspectives will be required of HR practitioners.

Employee Advocate: This is not so much a new role as much as it's practically non-existent. It's
actually frowned upon in many organizations and is the most difficult of the four to realize. After
all, it does seem to be a direct contradiction to serving as an advocate for management. It's an

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DEPARTMENT OF BUSINESS ADMINISTRATION
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uncomfortable conflict that many practitioners either choose, or are encouraged, to avoid. Still, it's
a role that must be accepted since it directly impacts the other three. Employee advocacy fosters
trust and credibility in the relationship. If employees need someone to speak for them, and if it's
not Human Resources, then who? You guess! Like the overlapping of HRM and OD, the four basic
roles for Human Resources management are interrelated and mutually supportive. Success rests in
fully accepting all four and striking the proper balance among them. Most HR functions already
have the basics of the first two. The organization must shift its culture to accept the third. Both
management and the HR professionals must recognize the need for the fourth. But none can be
fully actualized absent the other three.

Table 1 Major differences between Personnel Management and HRM

Dimensions Personnel and IR HRM

Beliefs and assumptions
1. Contract Careful delineation of Aim to go beyond contract
written contracts
2. Rules Importance of devising clear 'Can-do' outlook; Impatience
rules/mutually with 'rule'
3. Guide to management Procedures Business-need'
action
4. Behaviour referent Norms/custom and practice Values/mission
5. Managerial task vis-a-vis Monitoring Nurturing
labour
6. Nature of relations Pluralist Unitarist
7. Conflict Institutionalized De-emphasized
Strategic aspects
8. Key relations Labour management Customer
9. Initiatives Piecemeal Integrated
10. Corporate plan Marginal Central
11. Speed of decision Slow Fast
Line management
12. Management role Transactional Transformational leadership

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DEPARTMENT OF BUSINESS ADMINISTRATION
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 13. Key managers Personnel/ IR specialists General/business/line
managers
14. Communication Indirect Direct
15. Standardization High (e.g. 'parity' an issue) Low (e.g. 'parity' not seen as
relevant)
16. Prized management skills Negotiation Facilitation
Key levers
17. Selection Separate, marginal task Integrated, key task
18. Pay Job evaluation (fixed Performance-related
grades)
19. Conditions Separately negotiated Harmonization
20. Labour-management Collective bargaining Towards individual contracts
contracts
21. Thrust of relations with Regularized through Marginalized (with exception
stewards facilities and training of some bargaining for change
models)
22. Job categories and grades Many Few

23. Communication Restricted flow Increased flow

24. Job design Division of labour Teamwork
25. Conflict handling Reach temporary truces Manage climate and culture
26. Training and development Controlled access to courses Learning companies

27. Foci of attention for Personnel procedures Wide ranging cultural,

interventions structural and personnel
strategies

COMPETITIVE CHALLENGES INFLUENCING HRM

Because of continuous changing socio-economic, technological and political conditions, the

human resource managers of the future shall have to face more problems in the management of
labour. The human resource managers of today may find themselves obsolete in the future due to

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DEPARTMENT OF BUSINESS ADMINISTRATION
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changes in environment if they do not update themselves some of the important challenges which
might be faced by the managers in the management of people in business and industry are
discussed below:

1. Increasing Size of Workforce: The size of organisations is increasing. A large number of

multinational organisations have grown over the years. The number of people working in the
organisation has also increased. The management of increased workforce might create new
problems and challenges as the workers are becoming more conscious of their rights.

2. Increase in Education Level: The governments of various countries are taking steps to
eradicate illiteracy and increase the education level of their citizens. Educated consumers and
workers will create very tough task for the future managers.

3. Technological Advances: With the changes coming in the wake of advanced technology, new
jobs are created and many old jobs become redundant. There is a general apprehension of
immediate unemployment. In the competitive world of today, industry cannot hope to survive for
long with old technology. The problem, of unemployment resulting from modernisation will be
solved by properly assessing manpower needs and training of redundant employees in alternate
skills.

4. Changes in Political Environment: There may be greater Government ‘s interference in

business to safeguard the interests of workers, consumers and the public at large. Government ‘s
participation in trade, commerce and industry will also pose many challenges before management.
The Government may restrict the scope of private sector in certain areas in public interest. It does
not mean chances of co-operation between

the Government and private sector are ruled out. In fact, there will be more and more joint sector
enterprises.

5. Increasing Aspirations of Employees: Considerable changes have been noted in the worker of
today in comparison to his counterpart of 1950s. The workers are becoming more aware of their
higher-level needs and this awareness would intensify further in the future workers.

6. Changing Psychosocial System: In future, organisations will be required to make use of

advanced technology in accomplishing their goals while satisfying human needs. In the traditional
bureaucratic model, the organisations were designed to achieve technical functions with a little
consideration given to the psychosocial system. But future management would be required to
ensure effective participation of lower levels in the management of the organisation system.

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DEPARTMENT OF BUSINESS ADMINISTRATION
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7. Computerised Information System: In the past, the automation of manufacturing processes
had a major effect upon the systems of production, storage, handling and packaging, etc. More
recently, there has been and, in the future, there will be the impact of revolutionary computerised
information system on management. This revolutionary development would cover two primary
areas of personnel management which are as follows:

(a) The use of electronic computers for the collection and processing of data, and (b) The direct
application of computers in the managerial decision-making process.

8. Mobility of Professional Personnel: Organisations will expand the use of ―boundary agents‖
whose primary function will be achieving coordination with the environment. One interesting fact
will be an increase in the mobility of various managerial and professional personnel between
organisations. As individuals develop greater technical and professional expertise, their services
will be in greater demand by other organisations in the environment.

9. Changes in Legal Environment: Many changes are taking place in the legal framework within
which the industrial relations systems in the country are now functioning. It is the duty of the
human resource or personnel executive to be aware of these changes and to bring about necessary
adjustments within the organisations so that greater utilisation of human resources can be achieved.
This, indeed, is and would remain a major challenge for the personnel executive.

10. Management of Human Relations: On the ‗industrial relations ‘front, things are not showing
much improvement even after so many efforts by the government in this direction. Though a large
number of factors are responsible for industrial unrest but a very significant cause is the growth of
multi-unions in industrial complexes having different political affiliations. Under the present
conditions, it appears that inter-union rivalries would grow more in the coming years and might
create more problems in the industry.

MEETING COMPETITIVE CHALLENGES THROUGH HRM.

While the global economy has presented unprecedented opportunities, it has also presented many
new challenges to the Human Resource department. In a global, complex, dynamic, highly
competitive and extremely volatile environment most organizations are facing several global
challenges related to:

1. Workforce diversity: For multinational companies who have operations on a global scale and
employ people of different countries, ethical and cultural backgrounds, it is extremely essential to
manage workforce diversity effectively. The challenge for Organizations is to capitalize on the
diverse body of talent and transform it into an asset. People coming from diverse cultural
backgrounds, gender, age, language, ethnicity, lifestyle can bring in innovative ideas and

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DEPARTMENT OF BUSINESS ADMINISTRATION
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perspectives to the Business. The goal is to develop effective working relationships with people
from diverse backgrounds at work. Organizations should identify and overcome the barriers that
have inhibited the employment, retention, development and promotion of diverse groups in the
workplace.

2. Technology: Technology changes the way businesses operate. Technological advances often
create employee resistance because new technology frequently benefits some employees while
leaving others behind. This is because technological advances reduce the number of jobs that
require little skill and increases the number of jobs that require considerable skills. This means
displacement of some employees and retraining for others. In addition, information technology has
influenced HRM through human resource information system (HRIS) that helps in the processing
of data and making employee information more readily available to the employees.

3. Training: HRM is confronted with dynamic changes in approaches and methodologies in

training and development. In the global scenario, training has taken a new connotation. It is more
than identifying the training needs and giving the appropriate training. It is foreseeing and
anticipating the requirements and develop suitable training so that the employees are well equipped
to handle the challenges beforehand. Companies have to invest in training delivery methods that
facilitate digital collaboration.

4. Worker productivity: Increasing worker productivity through HR programmes, policies and

techniques remains a challenge. Progressive and innovative managers now achieve productivity
gains with human resource management techniques that go beyond pay incentives. Increased
worker motivation and satisfaction can increase worker productivity. This can be achieved by
introducing quality of work life concepts and by tailoring benefits to meet the needs of employees.

5. Quality improvement: Implementing TQM was earlier the sole responsibility of specialists.
However, today making quality improvements across the entire firm can be an important function
of the HRM department. If the HRM department fails to recognize and act on this opportunity, it
may result in the loss of TQM responsibilities of other departments with less expertise in training
and development. The ultimate result would be an ineffective TQM strategy. Thus, it is essential
for HRM to act as a pivotal change agent necessary for the successful implementation of TQM.
The HR department needs to develop and deliver the long-term training and development
necessary for the major organizational culture shift required by TQM.

6. Retention: Key employee retention is critical to the long-term health and success of an
organization. Many Organizations fail to identify the intrinsic motivators for employees, thus
failing to attract them. It is therefore, important for organizations to plan and implement new
approaches and employee retention plans to retain the most effective manpower. It is also essential
to have a valuing and positive attitude towards employees. Retention requires competitive salary
and great benefits.

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
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7. Outsourcing: Organizations, both big and small are realizing that outsourcing is a key to bring
down costs and add value to the business. It allows businesses to focus on its core competencies
and thereby identify new areas for growth. Organizations that can manage diversity better tend to
be more flexible and are more open-minded.

8. Talent management: Managing talent has become a critical human resource challenge.
Organizations in both developed and developing economies are facing increased competition for
high performers. In order to address this challenge, companies have to boost global sourcing of
staff. Talent management challenges relate to talent flow, managing two generations of employees
i.e. the older or mature workers and younger workers; and a shortage of needed competencies. The
ability to attract, develop and retain a needed supply of critical talent is a challenge facing all
organizations. Managing global talent and maximizing the talent of individual employees can
create a unique source of competitive advantage.

9. Balancing work life: work life balance has become a predominant issue in the workplace.
Employers need to understand that achieving a balance can lead to great results with a well-
motivated workforce delivering quality services. Employees are now making job choices based on
flexible working hours and emotional gratification. The responsibility is on employers to think
creatively about how it can be best used to benefit both the staff and the organization.

10. Globalization: Globalization has an impact on the number and kinds of jobs that are available
in the economy. In this scenario it is important for Organizations to address issues related to
managing people in different geographies, cultures, legal environment, and business conditions.
HR functions such as selection, recruitment, compensation, training and the like have to be
adjusted to take into account the differences in global management. Due to globalization HR
managers have an opportunity to recruit employees from around the world and they also the
responsibility to ensure an appropriate mix of employees in terms of knowledge, skills and culture.
Globalization poses challenges in terms of workforce diversity, managing outsourcing and
downsizing of employees, managing productivity, quality, and flexible working hours.

11. Organizational restructuring: In order to become more competitive, a growing number of

organizations are going for restructuring like mergers and acquisitions, closing facilities etc. The
focus has been to flatten organizations by removing several layers of management and to improve
productivity, quality and service while also reducing costs. As a result, jobs are being redesigned
and employees affected. One of the challenges that HRM faces here is dealing with the human
consequences of change. Change appears threatening to many people, which makes it difficult to
gain their support and commitment to implementing changes. However, there are a number of
steps managers can take to overcome resistance to change like education and effective
communication.

S.MD. AZASH
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DEPARTMENT OF BUSINESS ADMINISTRATION
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S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
 UNIT-II: HUMAN RESOURCE PROCESS

HUMAN RESOURCE PLANNING

Introduction

Human Resource Planning is concerned with the planning the future manpower requirements is
the organisation. HR manager ensures that the company has the right type of people in the right
number at the right time and place, who are trained and motivated to do the right kind of work at
the right time. Obviously, human resource planning primarily makes appropriate projections for
future manpower needs of the organisation envisages plan for developing the manpower to suit the
changing needs of the organisation from time to time, and foresees how to monitor and evaluate
the future performance. It also includes the replacement plans and managerial succession plans.

Human Resource planning is the process by which a management determines how an organisation
should move from its current manpower position to its desired manpower position. Through
planning a management strives to have the right number and the right kinds of people at the right
places, at the right time, to do things which result in both the organisation and the individual
receiving the maximum long-range benefit.

Definitions of Human Resource Planning:

1. Coleman has defined Human Resource Planning as ―the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated
plan of the organisation.

2. According to Wikstrom, Human Resource Planning consists of a series of activities, viz.,

(a) Forecasting future manpower requirements, either in terms of mathematical projections

of trends in the economic environment and developments in industry, or in terms of
judgemental estimates based upon the specific future plans of a company;

(b) Making an inventory of present manpower resources and assessing the extent to which
these resources are employed optimally;

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 (c) Anticipating manpower problems by projecting present resources into the future and
comparing them with the forecast of requirements to determine their adequacy, both
quantitatively and qualitatively; and

(d) Planning the necessary programmes of requirements, selection, training, development,

utilisation, transfer, promotion, motivation and compensation to ensure that future
manpower requirements are properly met.

Coleman has defined Human Resource Planning as ―the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated
plan of the organisation.

Human resource planning is a double-edged weapon. If used properly, it leads to the maximum
utilisation of human resources, reduces excessive labour turnover and high absenteeism; improves
productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to
disruption in the flow of work, lower production, less job satisfaction, high cost of production and
constant headaches for the management personnel. Therefore, for the success of an enterprise,
human resource planning is a very important function, which can be neglected only at its own
peril.

NEED AND IMPORTANCE OF HUMAN RESOURCE PLANNING

Human Resource planning is the process by which a management determines how an organisation
should move from its current manpower position to its desired manpower position. Through
planning a management strives to have the right number and the right kinds of people at the right
places, at the right time, to do things which result in both the organisation and the individual
receiving the maximum long-range benefit. Human resource planning is a double-edged weapon.
If used properly, it leads to the maximum utilisation of human resources, reduces excessive labour
turnover and high absenteeism; improves productivity and aids in achieving the objectives of an
organisation. Faultily used, it leads to disruption in the flow of work, lower production, less job
satisfaction, high cost of production and constant headaches for the management personnel.
Therefore, for the success of an enterprise, human resource planning is a very important function,
which can be neglected only at its own peril.

Coleman has defined Human Resource Planning as ―the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated
plan of the organisation.

Objectives of HR Planning The major objectives of Human Resource Planning in an organisation

are to :

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 (i) ensure optimum use of human resources currently employed;
(ii) avoid balances in the distribution and allocation of human resources;
(iii) assess or forecast future skill requirements of the organisation ‘s overall objectives;
(iv) provide control measure to ensure availability of necessary resources when required;
(v) control the cost aspect of human resources;
(vi) formulate transfer and promotion policies.

Factors Affecting Human Resource Planning

Factors Affecting HRP: HRP is influenced by several considerations. The more important of them
are:

▪ Type and strategy of organization.

▪
Organizational growth cycles and planning.
▪
Environmental uncertainties.
▪
Time horizons.
▪
Type and quality forecasting information.
▪
Nature of jobs being filled.
▪
Off-loading the work.

Figure 3 Factors Affecting Human Resource Planning

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Type of organization: The type of organization determines the production process and number and
type of staff needed. Manufacturing organizations have a more complex structure compared to
service organization. It goes without saying that the HRP differs according to the nature of the
organization.

Strategy of organization: The human resource needs of an organization depend on the strategic
plan adopted by it. For example, growth of the business calls for hiring of additional labour, while
mergers will need a plan for layoffs.

Environmental Uncertainties: HR managers rarely have the privilege in a stable and predictable
environment. Political, social and economic changes affect all organizations. Personnel planners
deal with environmental uncertainties by carefully formulating recruitment, selection, and training
and development policies and programmes. Balancing mechanisms are built into the HRM
programme through succession planning, promotion channels, layoffs, flexitime, job sharing,
retirement, VRS and other personnel related arrangements.

Time period: Yet another major factor affecting personnel planning is the horizon. On one hand,
there are short-term plans spanning six months to one year. On the other hand, there are long-term
plans which spread over three to twenty years. The exact time span, however, depends on the
degree of certainty prevailing in an organization’s environment. Plans for companies operating in
an unstable environment, computers for example, must be for a short period. Plans for others where
environment is fairly stable, for example a university plans, may be long-term. In general, the
grater the uncertainty, the shorter the plan’s time horizon and vice versa.

Information: The type and quality of information used in making forecast is an important factor
influencing Human Resource Planning. In the absence of a well-developed information

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mechanism Human Resource Planning is just impossible. Accurate and timely human resource
information system helps in getting better quality personnel.

Nature of jobs being filled: Job vacancies are very common and arise due to promotions,
retirements, termination of services, growth, expansion, etc. HRP is required to ensure that suitable
candidates are recruited.

Off-loading: This implies giving part of the organizations work to outside parties. If an
organization prefers off-loading to recruitment of more people. Human Resource Planning is not
required.

STEPS IN HUMAN RESOURCE PLANNING-HRP Process

Human resource planning refers to a process by which companies ensure that they have the right
number and kinds of people at the right place, at the right time; capable of performing different
jobs efficiently. Planning the use of human resources is an important function in every
organisation. A rational estimate to various categories of personnel in the organisation is an
important aspect of human resource planning. HRP involves the following steps:

1. Analysis of Organisational Plans and Objectives: Human resource planning is a part of

overall plan of organisation. Plans concerning technology, production, marketing, finance,
expansion and diversification give an idea about the volume of future work activity. Each
plan can further be analysed into sub-plans and detailed programmes. It is also necessary
to decide the time horizon for which human resource plans are to be prepared. The future
organisation structure and job design should be made clear and changes in the organisation
structure should be examined so as to anticipate its manpower requirements.
2. Forecasting Demand for Human Resources: Human resource planning starts with the
estimation of the number and type of personnel required at different levels and in different
departments. The main steps involved in HRP process are
a) to determine and to identify present and prospective needs of human resource,
b) to discover and recruit the required number of persons.
c) to select the right number and type from the available people.
d) to hire and place in the positions for which they are qualified,
e) to provide information to the selected people about the nature of work assigned to them,
f) to Promote or to transfer as per the needs and the performance of employees,
g) to denote if the employees are disinterested or their performance is not upto the mark,
h) to terminate if they are not needed or their performance is below standard and shows
no hopes of improvement. It is the most crucial and critical area of HRD. These HRD
manager must pay attention to place right man to the right job through recruitment
selection Training and Placement of employees. This calls for the adoption of a
systematic procedure to complete recruitment and selection.

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3.Forecasting Supply of Human Resources: One of the important areas of human resources
planning is to deal with allocation of persons to different departments depending upon the work-
load and requirements of the departments. While allocating manpower to different departments,
care has to be taken to consider appointments based on promotions and transfers. Allocation of
human resource should be so planned that available manpower is put to full use to ensure smooth
functioning of all departments.

4. Estimating Manpower Gaps: Net human resource requirements or manpower gaps can be
identified by comparing demand and supply forecasts. Such comparison will reveal either deficit
or surplus of human resources in future. Deficits suggest the number of persons to be recruited
from outside whereas surplus implies redundant to be redeployed or terminated. Similarly, gaps
may occur in terms of knowledge, skills and aptitudes. Employees deficient in qualifications can
be trained whereas employees with higher skills may be given more enriched jobs.

5. Matching Demand and Supply: It is one of the objectives of human resource planning to assess
the demand for and supply of human resources and match both to know shortages and surpluses
on both the side in kind and in number. This will enable the human resource department to know
overstaffing or understaffing. Once the manpower gaps are identified, plans are prepared to bridge
these gaps. Plans to meet the surplus manpower may be redeployment in other departments and
retrenchment in consultation, with the trade unions. People may be persuaded to quit through
voluntarily retirement. Deficit can be met through recruitment, selection, transfer, promotion, and
training plans. Realistic plans for the procurement and development of manpower should be made
after considering the macro and micro environment which affect the manpower objectives of the
organisation.

Figure 4 Steps in Human Resource Planning

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BARRIERS TO HUMAN RESOURCE PLANNING

Human Resource Planners face significant barriers while formulating an HRP. The major barriers
are elaborated below:

1) HR practitioners are perceived as experts in handling personnel matters, but are not experts in
managing business. The personnel plan conceived and formulated by the HR practitioners when
enmeshed with organizational plan, might make the overall strategic plan of the organization
ineffective.

2) HR information often is incompatible with other information used in strategy formulation.

Strategic planning efforts have long been oriented towards financial forecasting, often to the
exclusion of other types of information. Financial forecasting takes precedence over HRP.

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3) Conflict may exist between short term and long-term HR needs. For example, there can be a
conflict between the pressure to get the work done on time and long-term needs, such as preparing
people for assuming greater responsibilities. Many managers are of the belief that HR needs can
be met immediately because skills are available on the market as long as wages and salaries are
competitive. Therefore, long times plans are not required, short planning are only needed.

4) There is conflict between quantitative and qualitative approaches to HRP. Some people view
HRP as a number game designed to track the flow of people across the department. Others take a
qualitative approach and focus on individual employee concerns such as promotion and career
development. Best result can be achieved if there is a balance between the quantitative and
qualitative approaches.

5) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR

department function. Successful planning needs a co-ordinated effort on the part of operating
managers and HR personnel.

HUMAN RESOURCE INFORMATION SYSTEM

HRIS is an important element in human resource development. It is a system of maintain, collect,

and analyse data relating to human resources of the organisation. It helps managers in decision-
making in respect of promotion, wage fixing, recruitment, training and development. In this way
HRIS acts as a decision support system. The inputs of HRIS include the information relating to
employees, their abilities, qualifications, potentialities, creative instincts, age, pay scales, various
jobs in the organisation, their required skills and qualifications to do them, the number of
employees and executives manning various positions, organisational objectives, policies and
procedures etc.

A human resource information system (HRIS) is a software package developed to aid human
resources professionals in managing data. Human resource professionals utilize these systems to
facilitate work flow, improve efficiency and store and collect information. Several companies offer
HRIS packages to employers. HRIS packages can be customized to the specific needs and
requirements of the employer.

Explained below are the various components of the HRIS.

1. Database

HRIS core offering includes a database to store employee information. HR professionals can input
all personnel data into the system which can be accessed from anywhere, round the clock. Types
of data that HR professionals collect in the database include compensation history, emergency

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contact information, and performance review. The core database can also be viewed as an online
backup for paper files.

2. Time and Labour Management

Activities like time and labour management can highly time consuming. HRIS package allows
employees to input their own hours worked and allows managers to immediately verify vacation
requests, and the data is directly fed to the payroll. Time and labour management also improves
the HR department’s ability to track punctuality and attendance.

3. Payroll Function

Payroll function is yet another major component of a HRIS model. HR can easily download or
unload employee hours, and issue cheques or payroll deposits to employees. Salaried employees
can also be paid with substantially reduced risk of errors. The HRIS payroll software usually
improve tax compliance for locations with multiple tax levels.

4. Benefits

Some HRIS employers allow employers to establish and maintain medical benefits and retirement
investments through their software. Such applications allow employers to have one-stop shopping
experience for all their human resources data management needs. Other HRIS packages facilitate
medical benefits and retirement investment deductions for payroll but not the establishment of
those benefits.

5. Employee Interface

Most HRIS packages allow for an employee to have limited user access. Employee users access a
part of the database where they can update their personal information, review pay scales, change
retirement benefit programs, update direct deposit information or download benefit election
documents.

6. Recruitment and Retention

Finally, it can be said that recruitment and retention are the most important components of HRIS.
It goes without saying that it is the anchor of all HR policies and systems. Finding new talent,
acquiring them, keeping them engaged and finally being able to retain them are the major task of
a HR person. HRs also have to ensure that employees are not only able to do their work, but they

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are also provided with the required training; receives proper compensation and benefits from the
organization.

JOB ANALYSIS

Introduction

Job Analysis is a procedure by which pertinent information is obtained about a job, i.e., it is a
detailed and systematic study of information relating to the operation and responsibilities of a
specific job. An authority has defined job analysis as ―the process of determining, by observation
and study, and reporting pertinent information relating to the nature of a specific job... ―It is the
determination of the tasks which comprise the job and of the skills, knowledge, abilities and
responsibilities required of the worker for a successful performance and which differentiate one
job from all others‖.

Information provided by Job Analysis Job analysis provides the following information:

1. Job Identification: Its title, including its code number;

2. Significant Characteristics of a Job: Its location, physical setting, supervision, union

jurisdiction, hazards and discomforts;

3. What the Typical Worker Does: Specific operation and tasks that make up an assignment,
their relative timing and importance, their simplicity, routine or complexity, the responsibility or
safety of others for property, funds, confidence and trust;

4. Which Materials and Equipment a Worker Uses: Metals, plastics, grains, yarns, milling
machines, punch presses and micrometres;

5. How a Job is Performed: Nature of operation - lifting, handling, cleaning, washing, feeding,
removing, drilling, driving, setting-up and many others;

6. Required Personal Attributes: Experience, training, apprenticeship, physical strength, co-

ordination or dexterity, physical demands, mental capabilities, aptitudes, social skills;

7. Job Relationship: Experience required, opportunities for advancement, patterns of promotions,

essential co-operation, direction, or leadership from and for a job.

SOURCES OF INFORMATION FOR JOB ANALYSIS

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According to George R. Terry, ―the make-up of a job, its relation to other jobs, and its
requirements for competent performance are essential information needed for a job analysis‖.
Information on a job may be obtained from three principal sources:

(a) From the employees who actually perform a job;

(b) From other employees such as supervisors and foremen who watch the workers doing a job
and thereby acquire knowledge about it; and

(c) From outside observers specially appointed to watch employees performing a job. Such outside
persons are called the trade job analysts. Sometimes, special job reviewing committees are also
established.

Methods of Job Analysis

Four methods or approaches are utilised in analysing jobs. These are:

1. Personal Observation: The materials and equipment used, the working conditions and probable
hazards, and an understanding of what the work involves are the facts which should be known by
an analyst.

2. Sending out of Questionnaires: This method is usually employed by engineering consultants.

Properly drafted questionnaires are sent out to job-holders for completion and are returned to
supervisors. However, the information received is often unorganised and incoherent. The idea in
issuing questionnaire is to elicit the necessary information from job-holders so that any error may
first be discussed with the employee and, after due corrections, may be submitted to the job analyst.

3. Maintenance of Long Records: The employee maintains a daily record of duties he performs,
marking the time at which each task is started and finished. But this system is incomplete, for it
does not give us any desirable data on supervisor relationship, the equipment used, and working
conditions. Moreover, it is time-consuming.

4. Personal Interviews may be held by the analyst with the employees, and answers to relevant
questions may be recorded. But the method is time-consuming and costly.

Purposes and Uses of Job Analysis A comprehensive job analysis programme is an essential
ingredient of sound personnel management. It is fundamental to manpower management
programmes because the results of job analysis are widely used throughout the programmes. The
information provided by job analysis is useful, if not essential, in almost every phase of employee
relation.

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1. Organisation and Manpower Planning: It is helpful in organisational planning for it defines
labour needs in concrete terms and coordinates the activities of the work force, and clearly divides
duties and responsibilities.

2. Recruitment and Selection: By indicating the specific requirements of each job (i.e., the skills
and knowledge), it provides a realistic basis for hiring, training, placement, transfer and promotion
of personnel.

3. Wage and Salary Administration: By indicating the qualifications required for doing specified
jobs and the risks and hazards involved in its performance, it helps in salary and wage
administration. Job analysis is used as a foundation for job evaluation.

4. Job Re-engineering: Job analysis provides information which enables us to change jobs in
order to permit their being manned by personnel with specific characteristics and qualifications.
This takes two forms:

(a) Industrial Engineering Activity, which is concerned with operational analysis, motion study,
work simplification methods and improvements in the place of work and its measurement, and
aims at improving efficiency, reducing unit labour costs, and establishing the production standard
which the employee is expected to meet; and

(b) Human Engineering Activity, which takes into consideration human capabilities, both
physical and psychological, and prepares the ground for complex operations of industrial
administration, increased efficiency and better productivity.

5. Employee Training and Management Development: Job analysis provides the necessary
information to the management of training and development programmes. It helps it to determine
the content and subject-matter of in-training courses. It also helps in checking application
information, interviewing, weighing test results, and in checking references.

6. Performance Appraisal: It helps in establishing clear-cut standards which may be compared

with the actual contribution of each individual.

7. Health and Safety: It provides an opportunity for identifying hazardous conditions and
unhealthy environmental factors so that corrective measures may be taken to minimise and avoid
the possibility of accidents.

JOB DESCRIPTION

Job description is a written record of the duties, responsibilities and requirements of a particular
job. It is concerned with the job itself and not with the work. It is a statement describing the job in
such terms as its title, location, duties, working conditions and hazards. In other words, it tells us
what is to be done and how it is to be done and why. It is a standard of function, in that it defines
the appropriate and authorised contents of a job.

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Job description helps top executives, especially when they jointly discuss one another ‘s
responsibilities. Overlapping or confusion can then be pointed out questions can be raised about
the major thrust of each position, and problems of structure can be identified. A job description
becomes a vehicle for organisational change and’ improvement.

A job description contains the following:

1. Job identification, which includes the job title, alternative title, department, division, plant and
code number of the job. The job title identifies and designates the job properly. The department
division, etc. indicate the name of the department where it is situated-whether it is the maintenance
department, mechanical shop etc. The location gives the name of the place.

2. Job Summary serves two important purposes. First it provides a short definition which is useful
as an additional identification information when a job title is not adequate. Second, it serves as a
summary to orient the reader toward an understanding ‗of detailed information which follows. It
gives the reader a ―quick capsule explanation‖ of the content of a job usually in one or two
sentences.

3. Job duties give us a comprehensive listing or the duties together with some indication of the
frequency of occurrence or percentage of time devoted to each major duty. It is regarded as the
heart of a job.

4. Relation to other jobs: This helps us to locate the job in the organisation by indicating the job
immediately below or above it in the job hierarchy. It also gives us an idea of the vertical
relationships of work flow and procedures.

5. Supervision: Under it is given the number of persons to be supervised along with their job titles,
and the extent of supervision involved – general, intermediate or close supervision.

6. Working conditions usually give us information about the environment in which a job holder
must work. These include cold, heat, dust, wetness, moisture, fumes, odour, oily conditions, etc.
obtaining inside the organisation.

JOB SPECIFICATION

Job Specification is a standard of personnel and designates the qualities required for an acceptable
performance. It is a written record of the requirements sought in an individual worker for a given
job. In other words, it refers to a summary of the personal characteristics required for a job. It is a
statement of the minimum acceptable human qualities necessary for the proper performance of a
job.

Job specifications translate the job description into terms of the human qualifications which are
required for a successful performance of a job. They are intended to serve as a guide in hiring and

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job evaluation. As a guide in hiring, they deal with such characteristics as are available in an
application bank, with testing, interviews, and checking of references.

Job specifications relate to:

(a) Physical characteristics, which include health, strength, endurance, age-range, body size height,
weight, vision, voice, poise, eye, hand and foot co-ordination, motor co-ordination, and colour
discrimination.

(b) Psychological characteristics or special aptitudes which include such qualities as manual
dexterity, mechanical aptitude, ingenuity, judgment, resourcefulness, analytical ability, mental
concentration and alertness.

(c) Personal characteristics traits of temperament such as personal appearance, good and pleasing
manners, emotional stability, aggressiveness or submissiveness, extroversion; or introversion,
leadership, co-cooperativeness, initiative and drive, skill in dealing with others, ‗unusual sensory
qualities of sight, smell, hearing, adaptability, conversational ability, etc.

(d) Responsibilities which include supervision of others, responsibility for production, process and
equipment; responsibility for the safety of others; responsibility for generating confidence and
trust; responsibility for preventing monetary loss. (e) Other features of a demographic nature,
which are age, sex, education experience and language ability.

JOB DESIGN

Job analysis helps in developing appropriate design of job to improve efficiency and satisfaction.
Job design is the process of deciding on the contents of a job in terms of its duties and
responsibilities, on the methods to be used in carrying out the job, in terms of techniques, systems
and procedures and on the relationships that should exist between the jobholder and his superiors,
subordinates and colleagues. It is a deliberate and systematic attempt to structure the technical and
social aspects of work so as to improve technical efficiency and job satisfaction. Job design is an
attempt to create a match between job requirements and human attributes. It involves both
organising the components of the job and the interaction patterns among the members of a work
group.

The main objective of job design is to integrate the needs of the individual and the requirements
of the organisation. Needs of employees include job satisfaction in terms of interest, challenge and
achievement. Organisational requirements refer to high productivity, technical efficiency and
quality of work. Today, educated and creative employees demand well-designed jobs. Therefore,
increasing attempts are being made to redesign jobs so as to improve the quality of working life.
A systematic body of knowledge on the designing of jobs has been developed after the Industrial
Revolution and the large-scale enterprises.

Approaches to Job Design: The main approaches to job design are described below:

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1. Classical Approach: Also known as Engineering approach, it was developed by F.W. Taylor
and his associates. The principles of scientific management formed the basis for designing jobs in
most Organisations. These principles focus on planning, standardising and improving human effort
at the operative level in order to maximise productivity. In the words of Taylor, ―the work of
every workman is fully planned out by the management at least one day in advance and each man
receives in most cases complete written instructions, describing in detail the task which he is to
accomplish.

This task specifies not only what is to be done but how it is to be done and the exact time allowed
for doing it. Jobs designed on the basis of classical approach are not appropriate in the modern
environment characterised by increased awareness, improved education and rising expectations of
workforce.

2. Behavioural Approach: The findings of Elton Mayo, Frederick Herzberg and other human
relations experts led to search for alternative ways of designing jobs so as to avoid the
dysfunctional consequences of standardisation and simplification.

Job redesign, work structuring, job enrichment, participative system and other similar strategies
were developed to improve the quality of work life. The aim of all these attempts is to design jobs
which will not only ensure technical efficiency but will satisfy social and psychological needs of
workers.

The most popular behavioural approach to job redesign is the Job characteristics model of
Hackman and Oldham. This model is based on the assumption that three key psychological stats
of a jobholder determine his motivation, satisfaction and performance on the job.

Behavioural approach to job design is a socio-technical approach as it deals with both the technical
and social aspects of a job. It is, therefore, an improvement over the classical approach which
considered only the technical side of jobs. Tavistock Institute of Human Relations, London has
carried out several experiments in the application of the socio-technical approach to job design.

Figure 5 Approaches to Job Design

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Methods of Job Design

There are four approaches to Job design:

1. Job Simplification:

The job is broken into simple and narrow set of activities. It makes a job very simple to perform.
Training individuals to perform such jobs is simple and inexpensive and workers can conveniently
interchange their work activities related to such jobs.

By making the jobs simple to perform; by designing the tasks in a way that workers repeatedly
perform one or a small number of tasks related to those jobs, managers can achieve quality control
and gain production efficiencies. Making a job too simple, however, may not motivate employees
as they may find that work boring and monotonous. This can negatively affect the quality of work
and result in low job satisfaction.

2. Job Rotation:

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Continuous handling of tasks related to simple jobs can make work monotonous and dull. Job
rotation helps workers do away with the monotony by allowing them to work on different jobs
which involve different skills and work activities. Job rotation is the practice of shifting employees
from one job to another in a planned and systematic manner.

It is a better motivational tool than job simplification as it improves skills and flexibility to perform
challenging jobs and increase their capabilities. Job rotation develops employees and increases
their capabilities and understanding of different job structures of the organisation. It also promotes
innovations by stimulating exchange of ideas.

However, it suffers from the following limitations:

a. Employees do not enjoy specialisation of work if there is frequent movement from one job to
the other. In the modern era of specialisation, employees prefer to enhance their skills on one job
(simple or complex) rather than move to new jobs as a motivational tool.

b. Frequently moving employees from one job to the other can affect productivity. Every time an
employee moves to a new job, he has to learn job skills which slows down the work.

c. A person may not really be interested in job rotation for lack of interest in learning new job
skills. He may prefer job enrichment or enlargement to job rotation.

3. Job Enlargement:

Combining several routine jobs into one or enlarging the scope of a job by adding variety of tasks
is called job enlargement. It removes the dullness of performing the same activity over and over
again by giving the employees more tasks to perform on the same job.

Workers perform a wider variety of tasks on the job which increases their job satisfaction.
Managers may break a job into four activities (job enlargement) rather than ten simple activities
(job simplification). Performing a wider variety of tasks on a job is job enlargement.

Though beneficial as it appears, it suffers from the following limitations:

(a) Increased training costs,

(b) Demand from workers for increase in pay as they perform wider variety of tasks, and

(c) Not being sufficiently challenging, motivating and innovative as performing a few more similar
tasks is not motivating enough for workers to perform those tasks.

4. Job Enrichment:

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Job enrichment means enriching a job with more responsibility, autonomy, skills and decision-
making power. It serves as a strong motivational force to increase potential for growth and
development. It provides a strong sense of achievement and recognition which provides internal
satisfaction to employees; a source of high morale leading to high productivity.

It is a more comprehensive approach than job enlargement. It not only increases the variety of
tasks on a job but also the control that worker has over the job. To enrich a job, managers increase
the job depth, that is, “the degree to which individuals can plan and control the work involved in
their jobs.”

It allows the workers to decide their goals, ways of achieving those goals and self-control their
activities. This increases the sense of responsibility, capabilities to accept new and challenging
tasks and opportunities for growth and development.

Job enrichment helps employees satisfy their higher order needs of recognition, prestige and
achievement.

It is a “deliberate upgrading of responsibility, scope, and challenge in work.”— Hersey and

Blanchard

It is a “the process of upgrading the job-task mix in order to increase significantly the potential for
growth, achievement, responsibility and recognition.” — Bartol and Martin

Figure 6 Methods of Job Design

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Ways of Achieving Job Enrichment:

Richard Hacknmn and Greg Oldhman developed job characteristic model to achieve job
enrichment.

The model has three elements:

(a) Core Job Characteristics

(b) Critical Psychological States

(c) Outcomes

(a) Core Job Characteristics:

There are five characteristics of a job:

(i) Skill variety:

The job should involve activities which require variety of skills.

(ii) Task identity:

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The job should represent a major part of the work rather than fraction of the whole work, that is,
the job should have independent identity.

(iii) Task significance:

Workers should feel the impact of their job output on others’ output and also on the enterprise as
a whole. It represents importance of the task.

(iv) Autonomy:

Workers should have autonomy to decide how the job is done, sequence involved in the activities,
work methods for achieving the output, etc.

(v) Feedback:

Workers should have timely feedback on their job performance to know how well the job is
performed so that deviations can be checked in time. These characteristics make the job
challenging and motivating for the workers.

(b) Critical Psychological States:

Workers experience three critical psychological states:

(i) Feeling that the work is meaningful

(ii) Knowing that they are responsible for the outcomes

(iii) Actually, finding out the results

The core job characteristics have motivational value if they have the psychological states.

(c) Outcomes:

When workers with critical psychological states perform jobs with core job characteristics, they
experience the following outcomes:

(i) High internal work motivation.

(ii) High satisfaction of ‘growth needs.

(iii) High degree of job satisfaction.

(iv) High degree of work effectiveness.

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The job characteristic model enriches the job when individuals have the knowledge and skills to
perform the redesigned jobs, have high growth-needs (needs for personal growth and development)
and feel satisfied with factors related to ‘job context’ (factors other than the job, like salary, job
security, working conditions etc.) The above features make the job rich in content and motivate
the employees to work hard to achieve the goals related to these jobs.

Merits of Job Enrichment: Job enrichment has the following merits:

(i) It increases employees’ internal motivation.

(ii) It satisfies their ‘growth’ needs’.

(iii) It provides them job satisfaction.

(iv) It reduces labour turnover and absenteeism.

(v) It increases the efficiency of work through qualitative and quantitative improvement of work.

(vi) Greater freedom and autonomy to handle the work activities provides measures of self-control.
The deviations are checked by the employees themselves rather than pointed by the supervisors.

Limitations of Job Enrichment: Job enrichment suffers from the following limitations:

(i) Expensive:

To enrich a job by adding more activities and allowing the workers to assume responsibility for
the entire job may be costly for small concerns. Large concerns may, however, derive benefits
which will offset the increased cost.

(ii) Workers’ perception:

Some workers are satisfied with the present content of the job and job enrichment becomes an
additional liability for them. They are more interested in job security than job enrichment. Job
enrichment may not, thus, prove to be lucrative in such situations.

(iii) Imposition on workers:

Workers may not be capable to accept the challenges associated with the jobs. They feel that job
enrichment is an added burden for them and want managers to consult them before adding more
responsibilities to the job.

(iv) Technological considerations:

The present technology may not be appropriate for enriching the current jobs. Job enrichment may
not, therefore, be possible because of technological constraints. These limitations are primarily

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related to small-sized concerns or concerns which have unskilled or low skilled workers who
perform routine work and do not want to add more responsibility to their job content. Highly
skilled workers favour job enrichment for personal growth and development.

Effective Job Enrichment:

The following guidelines can make job enrichment effective:

(i) Consult the workers:

Managers should consult the workers and invite their suggestions on what they think about job
enrichment. This involves greater participation by workers and acceptance of higher responsibility.

(ii) Share the benefits with workers:

Companies can share the benefits of job enrichment with workers who are not enterprising and
innovative and, therefore, do not perceive job enrichment as an added to their competence. In
monetary terms, managers can offer some fraction of the profits to workers. This will motivate
them to view job enrichment as a positive attribute of job design.

(iii) Be informed about the reasons for job enrichment:

Workers do not go against management. If properly explained about the reasons why managers
want to enrich the jobs and what benefits it will offer to both individuals and organisations, they
will accept job enrichment as a positive reinforcement on their behaviour.

Recruitment

Introduction

Recruitment means search of the prospective employee to suit the job requirements as represented
by job specification–a technique of job analysis. It is the first stage in selection which makes the
vacancies known to a large number of people and the opportunities that the organisation offers. In
response to this knowledge, potential applicants would write to the organisation. The process of
attracting people to apply in called recruitment.

Definition

Dale S. Beach has defined ―Recruitment as the development and maintenance of adequate
manpower resources. It involves the creation of a pool of available labour upon whom the
organisation can depend when it needs additional employees.

According to Edwin B. Flippo: ―Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the organisation.

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Process of Recruitment

Recruitment is a process of finding and attracting the potential resources for filling up the vacant
positions in an organization. It sources the candidates with the abilities and attitude, which are
required for achieving the objectives of an organization.

Recruitment process is a process of identifying the jobs vacancy, analysing the job requirements,
reviewing applications, screening, shortlisting and selecting the right candidate.

To increase the efficiency of hiring, it is recommended that the HR team of an organization follows
the five best practices (as shown in the following image). These five practices ensure successful
recruitment without any interruptions. In addition, these practices also ensure consistency and
compliance in the recruitment process.

Figure 7 Recruitment Process

Recruitment process is the first step in creating a powerful resource base. The process undergoes
a systematic procedure starting from sourcing the resources to arranging and conducting interviews
and finally selecting the right candidates.

Recruitment Planning

Recruitment planning is the first step of the recruitment process, where the vacant positions are
analyzed and described. It includes job specifications and its nature, experience, qualifications and
skills required for the job, etc.

A structured recruitment plan is mandatory to attract potential candidates from a pool of

candidates. The potential candidates should be qualified, experienced with a capability to take the
responsibilities required to achieve the objectives of the organization.

• Identifying Vacancy

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The first and foremost process of recruitment plan is identifying the vacancy. This process begins
with receiving the requisition for recruitments from different department of the organization to the
HR Department, which contains −

• Number of posts to be filled

• Number of positions

• Duties and responsibilities to be performed

• Qualification and experience required

When a vacancy is identified, it the responsibility of the sourcing manager to ascertain whether
the position is required or not, permanent or temporary, full-time or part-time, etc. These
parameters should be evaluated before commencing recruitment. Proper identifying, planning and
evaluating leads to hiring of the right resource for the team and the organization.

• Job Analysis

Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities,
skills, abilities, and work environment of a specific job. These factors help in identifying what a
job demands and what an employee must possess in performing a job productively.

Job analysis helps in understanding what tasks are important and how to perform them. Its purpose
is to establish and document the job relatednessof employment procedures such as selection,
training, compensation, and performance appraisal.

The following steps are important in analyzing a job −

• Recording and collecting job information

• Accuracy in checking the job information

• Generating job description based on the information

• Determining the skills, knowledge and skills, which are required for the job

The immediate products of job analysis are job descriptions and job specifications.

• Job Description

Job description is an important document, which is descriptive in nature and contains the final
statement of the job analysis. This description is very important for a successful recruitment
process.

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Job description provides information about the scope of job roles, responsibilities and the
positioning of the job in the organization. And this data gives the employer and the organization a
clear idea of what an employee must do to meet the requirement of his job responsibilities.

Job description is generated for fulfilling the following processes −

• Classification and ranking of jobs

• Placing and orientation of new resources

• Promotions and transfers

• Describing the career path

• Future development of work standards

A job description provides information on the following elements −

• Job Title / Job Identification / Organization Position

• Job Location

• Summary of Job

• Job Duties

• Machines, Materials and Equipment

• Process of Supervision

• Working Conditions

• Health Hazards

• Job Specification

Job specification focuses on the specifications of the candidate, whom the HR team is going to
hire. The first step in job specification is preparing the list of all jobs in the organization and its
locations. The second step is to generate the information of each job.

This information about each job in an organization is as follows −

• Physical specifications

• Mental specifications

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DEPARTMENT OF BUSINESS ADMINISTRATION
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 • Physical features

• Emotional specifications

• Behavioral specifications

A job specification document provides information on the following elements −

• Qualification

• Experiences

• Training and development

• Skills requirements

• Work responsibilities

• Emotional characteristics

• Planning of career

• Job Evaluation

Job evaluation is a comparative process of analyzing, assessing, and determining the relative
value/worth of a job in relation to the other jobs in an organization.

The main objective of job evaluation is to analyze and determine which job commands how much
pay. There are several methods such as job grading, job classifications, job ranking, etc., which
are involved in job evaluation. Job evaluation forms the basis for salary and wage negotiations.

Recruitment Strategy

Recruitment strategy is the second step of the recruitment process, where a strategy is prepared for
hiring the resources. After completing the preparation of job descriptions and job specifications,
the next step is to decide which strategy to adopt for recruiting the potential candidates for the
organization.

While preparing a recruitment strategy, the HR team considers the following points −

• Make or buy employees

• Types of recruitment

• Geographical area

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DEPARTMENT OF BUSINESS ADMINISTRATION
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 • Recruitment sources

The development of a recruitment strategy is a long process, but having a right strategy is
mandatory to attract the right candidates. The steps involved in developing a recruitment strategy
include −

• Setting up a board team

• Analyzing HR strategy

• Collection of available data

• Analyzing the collected data

• Setting the recruitment strategy

Searching the Right Candidates

Searching is the process of recruitment where the resources are sourced depending upon the
requirement of the job. After the recruitment strategy is done, the searching of candidates will be
initialized. This process consists of two steps −

• Source activation − Once the line manager verifies and permits the existence of the
vacancy, the search for candidates starts.

• Selling − Here, the organization selects the media through which the communication of
vacancies reaches the prospective candidates.

Searching involves attracting the job seekers to the vacancies. The sources are broadly divided into
two categories: Internal Sources and External Sources.

• Internal Sources

Internal sources of recruitment refer to hiring employees within the organization through −

• Promotions

• Transfers

• Former Employees

• Internal Advertisements (Job Posting)

• Employee Referrals

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ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
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 • Previous Applicants

• External Sources

External sources of recruitment refer to hiring employees outside the organization through −

• Direct Recruitment

• Employment Exchanges

• Employment Agencies

• Advertisements

• Professional Associations

• Campus Recruitment

• Word of Mouth

Screening / Shortlisting

Screening starts after completion of the process of sourcing the candidates. Screening is the process
of filtering the applications of the candidates for further selection process.

Screening is an integral part of recruitment process that helps in removing unqualified or irrelevant
candidates, which were received through sourcing. The screening process of recruitment consists
of three steps −

• Reviewing of Resumes and Cover Letters

Reviewing is the first step of screening candidates. In this process, the resumes of the candidates
are reviewed and checked for the candidates’ education, work experience, and overall background
matching the requirement of the job

While reviewing the resumes, an HR executive must keep the following points in mind, to ensure
better screening of the potential candidates −

• Reason for change of job

• Longevity with each organization

• Long gaps in employment

• Job-hopping

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DEPARTMENT OF BUSINESS ADMINISTRATION
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 • Lack of career progression

• Conducting Telephonic or Video Interview

Conducting telephonic or video interviews is the second step of screening candidates. In this
process, after the resumes are screened, the candidates are contacted through phone or video by
the hiring manager. This screening process has two outcomes −

• It helps in verifying the candidates, whether they are active and available.

• It also helps in giving a quick insight about the candidate’s attitude, ability to answer
interview questions, and communication skills.

• Identifying the top candidates

Identifying the top candidates is the final step of screening the resumes/candidates. In this process,
the cream/top layer of resumes are shortlisted, which makes it easy for the hiring manager to take
a decision. This process has the following three outcomes −

• Shortlisting 5 to 10 resumes for review by the hiring managers

• Providing insights and recommendations to the hiring manager

• Helps the hiring managers to take a decision in hiring the right candidate

Evaluation and Control

Evaluation and control are the last stage in the process of recruitment. In this process, the
effectiveness and the validity of the process and methods are assessed. Recruitment is a costly
process; hence it is important that the performance of the recruitment process is thoroughly
evaluated.

The costs incurred in the recruitment process are to be evaluated and controlled effectively. These
include the following −

• Salaries to the Recruiters

• Advertisements cost and other costs incurred in recruitment methods, i.e., agency fees.

• Administrative expenses and Recruitment overheads

• Overtime and Outstanding costs, while the vacancies remain unfilled

• Cost incurred in recruiting suitable candidates for the final selection process

S.MD. AZASH
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DEPARTMENT OF BUSINESS ADMINISTRATION
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 • Time spent by the Management and the Professionals in preparing job description, job
specifications, and conducting interviews.

Factors affecting recruitment:

There are a number of factors that affect recruitment.

These are broadly classified into two categories:

1. Internal Factors

2. External Factors

These are discussed one by one.

Internal Factors:

The internal factors also called endogenous factors are the factors within the organisation that
affect recruiting personnel in the organisation. Some of these are mentioned here.

a. Size of the Organisation:

The size of an organisation affects the recruitment process. Experi-ence suggests that larger
organisations find recruitment less problematic than organisations with smaller in size.

b. Recruiting Policy:

The recruiting policy of the organisation i.e., recruiting from internal sources (from own
employees) and from external sources (from outside the organisation) also affects recruitment
process. Generally, recruiting through internal sourcing is preferred, because own em-ployees
know the organisation and they can well fit into the organisation’s culture.

c. Image of Organisation:

Image of organisation is another internal factor having its influence on the recruitment process of
the organisation. Good image of the organisation earned by a number of overt and covert actions
by management helps attract potential and competent candidates. Manage-rial actions like good
public relations, rendering public services like building roads, public parks, hospitals and schools
help earn image or goodwill for the organisation. That is why blue chip compa-nies attract large
number of applications.

d. Image of Job:

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Just as image of organisation affects recruitment so does the image of a job also. Better
remuneration and working conditions are considered the characteristics of good image of a job.
Besides, promotion and career development policies of organisation also attract potential
candidates.

2. External Factors:

Like internal factors, there are some factors external to organisation which has their influence on
recruitment process.

Some of these are given below:

a. Demographic Factors:

As demographic factors are intimately related to human beings, i.e., employees, these have
profound influence on recruitment process. Demographic factors include sex, age, literacy,
economic status etc.

b. Labour Market:

Labour market conditions i.e., supply and demand of labour is of particular importance in affecting
recruitment process. For example, if the demand for a specific skill is high relative to its supply,
recruiting employees will involve more efforts. On the contrary, if supply is more than demand for
a particular skill, recruitment will be relatively easier.

c. Unemployment Situation:

The rate unemployment is yet another external factor having its influence on the recruitment
process. When the unemployment rate in a given area is high, the recruitment process tends to be
simpler. The reason is not difficult to seek. The number of applicants is expectedly very high which
makes easier to attract the best qualified applicants. The reverse is also true. With a low rate of
unemployment, recruiting process tends to become difficult.

d. Labour Laws:

There are several labour laws and regulations passed by the Central and State Governments that
govern different types of employment. These cover working conditions, compen-sation, retirement
benefits, and safety and health of employees in industrial undertakings.

e. Legal Considerations:

Another external factor is legal considerations with regard to employ-ment. Reservation of jobs
for the scheduled castes, scheduled tribes, and other backward classes (OBCs) is the popular

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DEPARTMENT OF BUSINESS ADMINISTRATION
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example of such legal consideration. The Supreme Court of India has given its verdict in favour
of 50 per cent of jobs and seats. This is so in case of admissions in the educational institutions also.

Sources of Recruitment: The various sources of recruitment are generally classified as internal
source and external source.

(a) Internal Sources: This refers to the recruitment from within the company. The various internal
sources are promotion, transfer, past employees and internal advertisements.

(b) External Sources: External sources refers to the practice of getting suitable persons from
outside. The various external sources are advertisement, employment exchange, past employees,
private placement agencies and consultants, walks-ins, campus recruitment, trade unions, etc.

The following external sources of recruitment are commonly used by the big enterprises:

1. Direct Recruitment: An important source of recruitment is direct recruitment by placing a

notice on the notice board of the enterprise specifying the details of the jobs available. It is also
known as recruitment at factory gate. The practice of· direct recruitment is generally followed for
filling casual vacancies requiring unskilled workers. Such workers are known as casual or badli
workers and they are paid remuneration on daily-wage basis. This method of recruitment is very
cheap as it does not involve any cost of advertising vacancies.

2. Casual Callers or Unsolicited Applications: The organisations which are regarded as good
employers draw a steady stream of unsolicited applications in their offices. This serves as a
valuable source of manpower. If adequate attention is paid to maintain pending application folders
for various jobs, the personnel department may find the unsolicited applications useful in filling
the vacancies whenever they arise. The merit of this source of recruitment is that it avoids the costs
of recruiting workforce from other sources.

3. Media Advertisement: Advertisement in newspapers or trade and professional journals is

generally used when qualified and experienced personnel are not available from other sources.
Most of the senior positions in industry as well as commerce are filled by this method. The
advantage of advertising is that more information about the organization job descriptions and job
specifications can be given in advertisement to allow self-screening by the prospective candidates.
Advertisement gives the management a wider range of candidates from which to choose. Its
disadvantage is that it may bring in a flood of response, and many times, from quite unsuitable
candidates.

4. Employment Agencies: Employment exchanges run by the Government are regarded as a good
source of recruitment for unskilled, semi-skilled and skilled operative jobs. In some cases,
compulsory notification of vacancies to the employment exchange is required by law. Thus, the
employment exchanges bring the jobs givers in contact with the job seekers.

S.MD. AZASH
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DEPARTMENT OF BUSINESS ADMINISTRATION
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However, in the technical and professional area, private agencies and professional bodies appear
to be doing most of the work. Employment exchanges and selected private agencies provide a
nation-wide service in attempting to match personnel demand and supply.

5. Management Consultants: Management consultancy firms help the organisations to recruit

technical, professional and managerial personnel They specialise middle level and top-level
executive placements. They maintain data bank of persons with different qualifications and skills
and even advertise the jobs on behalf their clients to recruit right type of personnel.

6. Educational Institutions or Campus Recruitment: Jobs in commerce and industry have

become increasing technical and complex to the point where school and college degrees are widely
required. Consequently, big organisations maintain a close liaison with the universities, vocational
institutes and management institutes for recruitment to various jobs.

Recruitment from educational institutional is a well - established practice of thousands of business

and other organisations.1t is also known as campus recruitment. Reputed industrial houses which
require management trainees send their officials to campuses of various management institutes for
picking up talented candidates doing MBA.

7. Recommendation: Applicants introduced by friends and relatives may prove to be a good

source of recruitment. In fact, many employers prefer to take such persons because something
about their background is known. When a present-employee or a business friend recommends
someone for a job, a type of preliminary screening is done and the person is placed on a job.

8. Labour Contractors: Labour contractors are an important source of recruitment in some

industries in India. Workers are recruited through labour contractors who are themselves
employees of the organisation. The disadvantage of this system is that if the contractor leaves the
organisation, all the workers, employed through him will also leave That is why this source of
labour is not preferred by many businesses, organizations. Recruitment through labour contractors
has been banned for the public sector units.

9. Telecasting: The practice of telecasting of vacant posts over T.V. is gaining importance these
days. Special programmes like ‗Job Watch ‘, ‗Youth Pulse ‘, Employment News ‘, etc, over the
T.V have become quite popular in recruitment for various types of jobs. The detailed requirements
of the job and the qualities required to do it are publicized along with the profile of the organisation
where vacancy exists. The use of T.V. as a source of recruitment is less as compared to other
sources.

10. Raiding: Raiding is a technical term used when employees working elsewhere are attracted to
join organisations. The organisations are always on the lookout for qualified professionals, and are
willing to offer them a better deal if they make the switch. There are always some employees who
are professionally very competent, but dissatisfied with something or the other in the organisation.
They form the ‗easy ‘group to attract. The other group is formed of those who are equally

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DEPARTMENT OF BUSINESS ADMINISTRATION
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competent but are quite satisfied with their present position. To attract them, the organisation has
to offer a very lucrative package of perquisites. Whatever may be the means used to attract, often
it is seen as an unethical practice and not openly talked about.

METHODS OF RECRUITMENT

Some of the most important methods of recruitment are as follows:

1. Direct Method

2. Indirect Methods

3. Third Party Methods.

Recruitment methods refer to the means by which an organisation reaches to the potential job
seekers. In other words, these are ways of establishing contacts with the potential candidates. It is
important to mention that the recruitment methods are different from the sources of recruitment.

The major line of distinction between the two is that while the former is the means of establishing
links with the prospective candidates, the latter is location where the prospective employees are
available. Dunn and Stephen have broadly classified methods of recruitment into three categories.

1. Direct Method:

In this method, the representatives of the organisation are sent to the potential candidates in the
educational and training institutes. They establish contacts with the candidates seeking jobs. These
representatives work in cooperation with placement cells in the institutions Persons pursuing
management; engineering, medical etc. programmes are mostly picked up in this manner.

Sometimes, some employer firms establish direct contact with the professors and solicit informa-
tion about students with excellent academic records. Sending the recruiter to the conventions,
seminars, setting up exhibits at fairs and using mobile office to go to the desired centers are some
other methods used to establish direct contact with the job seekers.

2. Indirect Methods:

Indirect methods include advertisements in newspapers, on the radio and television, in professional
journals, technical magazines etc.

This method is useful when:

(i) Organisation does not find suitable candidates to be promoted to fill up the higher posts

(ii) When the organisation wants to reach out to a vast territory, and

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(iii) When organisation wants to fill up scientific, professional and technical posts.

The experience suggests that the higher the position to be filled up in the organisation, or the skill
sought by the more sophisticated one, the more widely dispersed advertisement is likely to be used
to reach to many suitable candidates.

Sometimes, many organisations go for what is referred to as blind advertisement in which only
Box No. is given and the identity of the organisation is not disclosed. However, organisations with
regional or national repute do not usually use blind advertisements for obvious reasons.

While placing an advertisement to reach to the potential candidates, the following three
points need to be borne in mind:

1. First, to visualise the type of the applicant one is trying to recruit.

2. Second, to write out a list of the advantages the job will offer

3. Third, to decide where to run the advertisement, i.e., newspaper with local, state, nation-wide
and international reach or circulation.

3. Third Party Methods:

These include the use of private employment agencies, management consultants, professional
bodies/associations, employee referral/recommendations, voluntary organisations, trade unions,
data banks, labour contractors etc., to establish contact with the job- seekers.

SELECTION

Introduction: To select means to choose. Selection is a part of the recruitment function. It is the
process of choosing people by obtaining and assessing information about the applicants (age,
qualification, experience and qualities) with a view of matching these with the job requirements
and picking up the most suitable candidates. The choices are made by elimination of the unsuitable
at successive stages of the selection process.

Definition

Different authors define Selection in different ways. Here is a list of some of the definitions −

• Employee selection is a process of putting a right applicant on a right job.

• Selection of an employee is a process of choosing the applicants, who have the

qualifications to fill the vacant job in an organization.

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 • Selection is a process of identifying and hiring the applicants for filling the vacancies in an
organization.

• Employee selection is a process of matching organization’s requirements with the skills

and the qualifications of individuals.

A good selection process will ensure that the organization gets the right set of employees with the
right attitude.

Difference between Recruitment and Selection

Table 2 The major differences between Recruitment and Selection

Recruitment Selection

Recruitment is defined as the process of Selection is defined as the process of choosing the
identifying and making the potential right candidates for the vacant positions.
candidates to apply for the jobs.

Recruitment is called as a positive process Selection is called as a negative process with its
with its approach of attracting as many elimination or rejection of as many candidates as
candidates as possible for the vacant jobs possible for identifying the right candidate for the
position.

Both recruitment and selection work hand in hand and both play a vital role in the overall growth
of an organization.

Purpose of Selection The purpose of selection is to pick up the most suitable persons who would
match the requirements of the job and the organization. The emphasis in selection is, therefore, on
the optimal match between the person and the job. Now the question arises as to which is the
dependent variable? Person or job. Some organizations emphasize on selecting the Right Person
for the Right Job. Here the Job is usually considered constant (through Jobs and Job context do
undergo changes over time) and the person is sought to be fitted into the job. Creative and
innovative organizations, instead, seek to find the Right Job for Right Person.

A secondary objective in selection could be to choose the best person available. However, there
could be a real problem with such an objective if the Job is not appropriate for the person
concerned. It may become difficult for organizations to retain their best people in jobs that do not
offer opportunities for them to harness their potential; instead they may lead to problems of

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monotony, boredom and frustration among Individuals and increased and increased turnover of
staff for the organization.

Importance of Selection

Selection is an important process because hiring good resources can help increase the overall
performance of the organization. In contrast, if there is bad hire with a bad selection process, then
the work will be affected and the cost incurred for replacing that bad resource will be high.

The purpose of selection is to choose the most suitable candidate, who can meet the requirements
of the jobs in an organization, who will be a successful applicant. For meeting the goals of the
organization, it is important to evaluate various attributes of each candidate such as their
qualifications, skills, experiences, overall attitude, etc. In this process, the most suitable candidate
is picked after the elimination of the candidates, who are not suitable for the vacant job.

The organization has to follow a proper selection process or procedure, as a huge amount of money
is spent for hiring a right candidate for a position. If a selection is wrong, then the cost incurred in
induction and training the wrong candidate will be a huge loss to the employer in terms of money,
effort, and also time. Hence, selection is very important and the process should be perfect for the
betterment of the organization.

Advantages of Selection

A good selection process offers the following advantages−

• It is cost-effective and reduces a lot of time and effort.

• It helps avoid any biasing while recruiting the right candidate.

• It helps eliminate the candidates who are lacking in knowledge, ability, and proficiency.

• It provides a guideline to evaluate the candidates further through strict verification and
reference-checking.

• It helps in comparing the different candidates in terms of their capabilities, knowledge,

skills, experience, work attitude, etc.

A good selection process helps in selecting the best candidate for the requirement of a vacant
position in an organization.

Criteria of Selection

Selection decisions are usually based on how an applicant is rated (rather, predicted) in terms of
the likelihood of success on the job. The information used found in the application blanks,

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performance in one or more tests and the interview(s). The criteria of selection need to be critical
to the job. The key job dimensions identified in job analysis and job description provide the basis
for determining relevant criteria.

Frequently educational qualifications, technical skills and achievements are used as the basis for
selection. But is there a statistical relationship between such requirements and job performance?
It appears that certain job requirements can be measured more easily and accurately than certain
others. The core job skills like sensory motor ‘skills and manipulative skills and achievement can
be measured relatively more accurately than one ‘s aptitude, interest and personality traits.

Integrity loyalty, initiative/drive/resourcefulness and intelligence/mental alertness are the key

attributes influencing the selection of managerial employees. All these attributes being subjective
are hard to assess accurately, yet are widely attempted. Perhaps it is so because managements and
employers in India have relatively less pressure to defend the criteria.

Selection Procedure

Steps Involved in Selection Procedure:

A scientific and logical selection procedure leads to scientific selection of candidates. The criterion
finalized for selecting a candidate for a particular job varies from company to company.

Therefore, the selection procedure followed by different organizations, many times, becomes
lengthy as it is a question of getting the most suitable candidates for which various tests are to be
done and interviews to be taken. The procedure for selection should be systematic so that it does
not leave any scope for confusions and doubts about the choice of the selected candidate.

Figure 8 Selection Process

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Brief details of the various steps in selection procedure are given as follows:

1. Inviting applications:

The prospective candidates from within the organization or outside the organization are called for
applying for the post. Detailed job description and job specification are provided in the
advertisement for the job. It attracts a large number of candidates from various areas.

2. Receiving applications:

Detailed applications are collected from the candidates which provide the necessary information
about personal and professional details of a person. These applications facilitate analysis and
comparison of the candidates.

3. Scrutiny of applications:

As the limit of the period within which the company is supposed to receive applications ends, the
applications are sorted out. Incomplete applications get rejected; applicants with un-matching job
specifications are also rejected.

4. Written tests:

As the final list of candidates becomes ready after the scrutiny of applications, the written test is
conducted. This test is conducted for understanding the technical knowledge, attitude and interest
of the candidates. This process is useful when the number of applicants is large.

Many times, a second chance is given to candidates to prove themselves by conducting another
written test.

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5. Psychological tests:

These tests are conducted individually and they help for finding out the individual quality and skill
of a person. The types of psychological tests are aptitude test, intelligence test, synthetic test and
personality test

6. Personal interview:

Candidates proving themselves successful through tests are interviewed personally. The
interviewers may be individual or a panel. It generally involves officers from the top management.

The candidates are asked several questions about their experience on another job, their family
background, their interests, etc. They are supposed to describe their expectations from the said job.
Their strengths and weaknesses are identified and noted by the interviewers which help them to
take the final decision of selection.

7. Reference check:

Generally, at least two references are asked for by the company from the candidate. Reference
check is a type of crosscheck for the information provided by the candidate through their
application form and during the interviews.

8. Medical examination:

Physical strength and fitness of a candidate is must before they take up the job. In-spite of good
performance in tests and interviews, candidates can be rejected on the basis of their ill health.

9. Final selection:

At this step, the candidate is given the appointment letter to join the organization on a particular
date. The appointment letter specifies the post, title, salary and terms of employment. Generally,
initial appointment is on probation and after specific time period it becomes permanent.

10. Placement:

This is a final step. A suitable job is allocated to the appointed candidate so that they can get the
whole idea about the nature of the job. They can get adjusted to the job and perform well in future
with all capacities and strengths.

Selection Tests

Job Selection Test:

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Individuals differ in many respects including job-related abilities and skills. In order to select a
right person for the job, individual differences in terms of abilities and skills need to be adequately
and accurately measured for comparison.

This is done through a device called ‘selection test’. Selection test is a device that uncovers the
information about the candidate which is not known through application blank and interview. In
this way, selection test is an adjunct to a selection method.

What is selection test? Test is defined differently by different writers and psychologists. Some
define test as “an objective and standardised measure of sample behavior”. It is considered
standardised because the procedure of administering the test, the environment in which the test is
conducted, and method of calculating individual score are uniformly applied. It is called objective
because test measures the individual differences in terms of their abilities and skills following an
unbiased and scientific method avoiding interference of human factors.

According to Lee J. Groonbach “A test is a systematic procedure for comparing the behaviour of
two or more persons”.

Milton M. Blum has defined test as “a sample of an aspect of an individual’s behaviour, perfor-
mance and attitude”.

After going through above definitions of test, now test can simply be defined as a systematic
procedure for sampling human behavior.

All tests are first psychological and then tests of specific abilities and skills. A close scrutiny of
above definitions of tests against the following three constructs will help comprehend the meaning
of test in better manners.

1. Objective:

Here, ‘objective’ means the validity and reliability of measuring job related abilities and skills. It
is crazy of the whole testing movement. The psychological tests should show that the test is
predictive of the important aspects of role behaviour relevant to the job for which the candidate is
under evaluation. Besides, objectivity also refers to equality of opportunity for those being tested
avoiding discrimination in terms of caste, creed, sex, religion etc.

2. Standardized:

In our earlier mentioned definition, ‘standardized’ refers to the uniformity of procedure

administered and the environment in which the test is taken. Here, uniformity refers to testing
conditions which include the time limit, instructions, testee’s state of mind and health room
temperature, test instruments, etc.

3. Sample of Behaviour:

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This refers to the fact that a total replication of reality of human behaviour in any given testing
situation is just not possible. Therefore, the behaviour predicted through test is likely to be
representative one, or say, a sample of behaviour.

Purpose of Tests:

Tests, i.e. psychological tests are conducted for various purposes.

They include:

1. Guiding and counselling students seeking admissions in the educational institutes.

2. Career guidance to those thinking to make careers in specific vocations.

3. Research into human behaviour and its personality.

4. Employment selection of the candidates for an organisation.

As regards selection tests, these are conducted mainly to fulfil the following purposes:

(i) For the selection and placement of new employees.

(ii) For appraising employees for promotional potentials.

(iii) For counselling employees to enable them to perform better in their jobs.

William C. Byham puts the use of selection tests in these words: “The tests are the most misused,
the least understood, yet the most valuable sources of information about applicants”

Types of Tests:

The history of tests, as cited by Saiyadain, can be traced back to the efforts of Francies Galton who
developed a variety of tests of sensory determination to measure person’s intellect as far back as
1883. Since then, there is no looking back with regard to the use of selection tests. As a result, a
large number of general aptitude tests and specific skill tests for the purpose of selecting employees
are available today.

For example, the Indian Statistical Institute, Kolkata has developed selection tests for selecting
management trainees and other officers for several organisations including Indian Airlines,
Hindustan Steel Limited, Hindustan Aeronautics Ltd., Indian Telephone Industries, TELCO,
BHEL, Bharat Aluminium Company Ltd., etc. Similarly, specific tests have also been developed
for the selection of weavers and card punch operators.

All the tests so far developed for the selection of employees can broadly be divided into two
categories:

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(i) Ability Tests and

(ii) Personality Tests.

Tests covered under each category are shown in the Following figure

Figure 9 Selection Tests

Ability Tests:

Though a number of ability tests have been developed so far for the use of employee selection,
important among these are the following:

1. Aptitude Tests:

Aptitude tests measure ability and skills of the teste. These tests measure and indicate how well a
person would be able to perform after training and not what he/she has done. Thus, aptitude tests
are used to predict the future ability/performance of a person.

There are two objectives of the aptitude tests. One to advise youth or jobseekers regarding field of
activities in which they are likely to succeed. This is called ‘vocational guidance’. Second, to select
best persons for jobs where, they may succeed. This test is called ‘vocational selection’.

Specific aptitude tests have been designed to measure special abilities to perform a job. Examples
of such tests are Mechanical Aptitude Test, Clerical Aptitude Test, Artistic Aptitude Test, Musical
Aptitude Test, Management Aptitude Test, Differential Aptitude Test, etc.

2. Achievement Tests:

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Achievement tests measure a person’s potential in a given area/job. In other words, these tests
measure what a person can do based on skill or knowledge already acquired by him/her.
Achievement tests are usually used for admission to specific courses in the academic institutions.

In these tests, grades in previous examinations are often used as indicators of achievement and
potential for learning. Indian industries have now started conducting these tests to judge for
themselves the level of proficiency attained rather than believing their scores in academic examina-
tions. Achievement tests are also known by the names, proficiency tests, performance,
occupational or trade tests.

Achievement tests resemble those of aptitude tests. However, the difference lies in the usage of
results. The line of difference between achievement and aptitude is very thin in the sense of past
achievement and performance. This difference between the two can be exemplified with an
example.

When we ask a person, or say, a student to study the paper human resource management, then
what he learns is ‘achievement’. But if we test the student to see if he would profit from certain
training to the subject, it is ‘aptitude’.

3. Intelligence Tests:

Intelligence tests measure general ability for intellectual performance. The core concept
underlying in intelligence test is mental age. It is presumed that with physical age, intelligence also
grows. Exceptions to this may be there. So, to say, if a five-year-old child does the test, for six
years or above his/her mental age would be determined accordingly.

Mental age is generally indexed in terms of Intelligence Quotient (IQ) and calculated by
using the following formula:

IQ = Mental Age/Actual Age × 100

It means that the intelligence quotient is a ratio of mental age to actual age multiplying by 100(to
remove decimal).

IQ levels may vary because of culture and exposure. Saiyadain has qualitatively described various
levels of IQs as below:

Figure 10 levels of IQs

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Intelligence testing in industry is based on the assumption that if the organisation can get bright,
alert employees quick at learning, it can train them faster than those who are fewer well- endowed.

4. Judgment Tests:

These tests are designed to know the ability to apply knowledge in solving a problem.

Personality Tests:

Personality tests are also called personality inventories. These tests measure predispositions,
motivations and lasting interests of the people.

Personality tests are subsumed under four broad categories as given below:

1. Interest Tests:

These tests are designed to discover a person’s area of interest, and to identify the kind of work
that will satisfy him. Interest is a prerequisite to successfully perform some task. These tests owe
their origin to the vocational efforts. The most widely used interest test is Kuder Reference Record.
It consists of three forms.

The first form measures vocational interest such as mechanical, computational, artistic, literary,
musical and clerical interest. Interests in personal areas such as group activities, avoiding conflicts
etc., are measured by the second form of interest tests. The third form of interest test measures
preference reactions to particular occupations like accountant, salesman, farmer, etc. The best
known among these three forms of interest test is the Kuder Preference Record i.e. vocational test.

2. Personality Tests:

These tests are also known as ‘personality inventories. These tests are designed to measure the
dimensions of personality i.e., personality traits such as interpersonal competence, dominance-
submission, extroversions-introversions, self-confidence, ability to lead and ambition. The most

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well-known names of personality tests are the Minnesota Multiphasic Personality Inventory
(MMPI), FIRO, and California Personality Inventory.

As reported by Morgan and King, the MMPI measures the following ten personality
dimensions:

Under the MMPI, as many as 495 items need to be answered as ‘True’, ‘false’ and ‘Cannot Say’.

The following are the examples of some representative items:

(a) I am easily awakened by noise.

(b) I get all the support I should.

(c) I do not bother for my look.

(d) I do not experience day-dream.

(e) My teachers made me obey elders even when they may advise wrong.

3. Projective tests:

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These tests are based on pictures or incomplete items. The testee is asked to narrate or project his
own interpretation on these. The way the testee responds reflects his /her own values, motives,
attitude, apprehensions, personality, etc. These tests are called projective because they induce the
testee to put himself/herself into the situation to project or narrate the test situation.

The most widely used tests of this type are the Rorschach Blot Test (RBT) and the Thematic
Apperception Test (TAT). The RBT consists of an ink blot and the testee is asked to describe what
he/she sees in it. In case of TAT which is considered as the most well-known structured projective
test, the testee is shown pictures and, then, is asked to make-up a story based on the pictures.

4. Attitude Tests:

These tests are designed to know the testee’s tendencies towards favouring or otherwise to people,
situations, actions, and a host of such other things. Attitudes are known from the responses of the
testees / respondents because emotional overtones involved make it difficult to directly observe or
measure attitude of the testee. Test of social desirability, authoritarianism, study of values,
Machiavellianism and employee’s morale are the well-known examples of attitude tests.

Other Tests:

There are some other tests also used for personnel selection. These are briefly discussed here under:

Graphology:

The origin of graphology is traced back to the eleventh century when the Chinese drew attention
to the relationship between handwriting and personality. It has been said that an individual’s
handwriting can suggest the degree of energy, inhibitions, and spontaneity to be found in the writer,
disclosing idiosyncrasies and elements of balance and control from which many personality
characteristics can be inferred.

For example, big letters and emphasis on capital letters indicate a tendency towards domination
and competitiveness. A slant to the right, moderate pressure and good legibility show leadership
potential. Although the validity of handwriting analysis is not fool-proof, some companies use
graphology tests to supplement their usual selection procedure.

Polygraph Tests:

This test is designed to confirm the accuracy of information given on the application blank. Hence,
it is considered as a form of employment test. Polygraph is a lie detector. Polygraph tests are found
useful for the organisations that are highly vulnerable to theft or swindling. Examples of such
organisations are departmental stores, banks, jewellery shops, etc.

Physiognomy Tests:

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These tests suggest a definite correlation between facial features and physiological functions and
behaviour. According to these tests, structures of features are reflective of personality traits and
characteristics. For example, thin lips indicate determination; broad jaws signify tenacity, and so
on and so forth.

Similarly, physiques indicate the following three kinds of temperament:

1. An overly-fat person enjoys eating and also loves good life.

2. As regards muscular built, it reflects toughness.

3. Whereas a slight built indicates an introverted, shy, and oversensitive person.

Advantage of Testing:

Irrespective of the nature of tests, companies can derive the following benefits from a well-planned
test:

1. Predicts Future Performance:

A well-designed test can predict the future performance of an individual. Thus, test can be used
for hiring personnel, transfer or promotion of the personnel for higher positions.

2. Diagnoses the situation and behaviour:

Knowing why people behave the way one does requires understanding the particular
variables/situation that cause behaviour. Here again, well planned tests help understand the
situation. For example, though decline in productivity could be caused by a host of factors, tests
can help understand such decline due to human factors.

3. Offers Benefits of Economy of Scale:

Conducting tests on the whole serves cost effective as it offers the benefits of economy of scale.
This is because tests when administered to a group save on both time and cost.

4. Uncover what not covered by Other Devices:

One important advantage of conducting tests is that they uncover qualifications and talents of the
testee that cannot be detected by application blanks and interviews.

5. Serve as Unbiased Tools:

Based on reliability and validity norms, tests do also serve as unbiased tools of selection process.

6. Quantify the Test Results:

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Above all, tests being quantifiable yield themselves to scientific and statistical analyses. Thus,
tests also save basis for research in personnel issues and matters. Valid job-related tests will also
pay off in increasing ability to identify in advance those employees who will perform most
effectively in the organisation.

Interview

An interview can be defined as a gentleman conversation between two people or more where
questions are asked to a person to get the required responses or answers.

People involved in an interview: Usually two groups or two individuals sit facing each other in
an interview. The person asking questions is the interviewer and the person answering the
questions is the interviewee.

So, what is an interview definition – It can be simply defined as the formal meeting between two
people where the interviewer asks questions to the interviewee to obtain information.

Objectives of the interview:

Let us find out what are the objectives or goals of an interview.

• It helps to verify the information provided by the candidate. It helps to ascertain the
accuracy of provided facts and information about the candidate.

• What the candidate has written in the resume are the main points. What other additional
skill set does he have? All these are known by conducting interviews.

• It not only gives the interviewer information about the candidate’s technical knowledge
but also gives an insight into his much needed creative and analytical skills.

• It helps in establishing the mutual relation between the employee and the company.

• It is useful for the candidate so that he comes to know about his profession, the type of
work that is expected from him and he gets to know about the company.

• It is beneficial for the interviewer and the interviewee as individuals, because both of them
gain experience, both professionally and personally.

• It helps the candidate assess his skills and know where he lacks and places where he needs
improvement.

• It also helps the company build its credentials and image among the employment seeking
candidates.

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 Table 3 Types of interviews

Based on the count Based on the Based on Based on the Based on the
of people involved planning involved judging the facilities or task
abilities settings

Personal interview A structured Behavioral-based Telephonic Apprenticeship

interview interview interview interview

Group interview Unstructured Problem-solving Online interview Evaluation

interview interview interview

Panel interview Depth interview Job Fair interview Promotion

interview

Stress interview Lunch interview Counseling

interview

Tea interview Disciplinary

interview

Persuasive
interview

Based on the count of people involved

1. One-to-one interview (Personal interview):

It is the most common among the interview types, it involves the interviewer asking questions
maybe both technical and general to the interviewee to investigate how fit the candidate is for the
job. Eg: Posts in small organizations and mid-level and high-level jobs in big organizations.

2. Group interview:

This involves multiple candidates and they are given a topic for discussion. They are assessed on
their conversational ability and how satisfactorily they are able to have their own views and make
others believe in them. Here, the best among the lot gets selected.

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Eg: Fresher posts and mid-level sales posts.

3. Panel interview (Committee Interview):

The interviewers here are a group from among the company people who are in senior position and
usually the panel interview is when the candidate is supposed to make a presentation. But many-
a-times it could be for the job interview as well.

Eg: Mid-level and high-level jobs.

Based on the planning involved

1. A structured interview (Formal interview or guided interview):

Here in the traditional form of interview, the questions asked are all in a standard format and the
same is used for all the candidates. This is to assess the ability of all the candidates impartially.

Eg: Entry level jobs for fresher.

2. Unstructured interview (Informal interview or conversational interview):

This is the opposite of structured interview. Here the interviewer has a definite idea in mind about
the questions to be asked, but it doesn’t follow a certain format. The interviewer may deviate and
a conversation type interview follows.

Eg: Mid-level job interview for managerial position

Based on judging the abilities

1. Behavioral-based interview:

The interviewee is asked questions about the past work experiences and how it was dealt with in a
particular situation. This helps the interviewer understand the candidate’s future performance
based on his past experiences. Here the candidates need to provide examples when they have
handled situations. The probing maybe in detail to assess the candidate’s behavior and responses
and this determines the candidate’s future job prospects.

Eg: Interview for managerial positions, executive posts.

2. Problem-solving interview (Task Oriented interview):

Here the interviewer is more concerned about the problem-solving abilities be it technical,
managerial, creative or analytical skills. This is the most common among the interview patterns
and it may involve either writing and answering a questionnaire set or answering the technical
questions orally.

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Eg: Interviews for Software recruitments, technical industries, and managerial positions.

3. Depth interview (In-depth interview):

When you need to ascertain everything about the interviewee right from the life history, academic
qualifications, work experiences, hobbies, and interests; you conduct the depth interview. Here the
interviewer has a clear idea about the questions he will be asking but once the question is asked,
he allows the conversation to flow and is more of a listener. This interview takes time and more of
a friendly approach of the interviewer towards the interviewee.

Eg: For executive post.

4. Stress interview:

Very rare, but such interviews are conducted to see how the candidate will be able to react in
stressful situations and to assess if he will be able to handle the crisis at his job.

The tactics involved include:

• Completely ignore the candidate by maybe, making a phone call in the middle of the
interview.

• Or some other tactic like continuously interrupting the candidate when he answers the
questions.

• Trying to enforce your point of view forcefully even if he disagrees.

• Asking a whole lot of questions all at once.

• Interrupting him by asking another question not related to his answer.

Eg: For banker jobs.

Based on the facilities or settings

1. Telephonic interview:

This interview is conducted over the phone and its main objective is to narrow done the probable
list of candidates so that only the most eligible ones finally get shortlisted. This is done in the
initial stages and before the personal interview. Also when the candidate is far-off, the company
first conducts a telephonic interview and if satisfied then arranges the travel expenses for a one-
to-one interview. Eg: Interview for entry-level jobs.

Eg: Interview for entry-level jobs.

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
2. Online interview (Video interview or Skype interview):

This interview may be was done by instant messaging, online chats, email or through videos. This
involves the interviewer asking questions just like in a personal interview. This is done based on
situations like if the interviewee resides far-off or if the interview at the appointed time gets
canceled due to valid reasons. Also, it is more convenient for the interviewer that he can fix the
interview at his spare time and convey the message to the candidate a few hours before or so. This
helps in it that the interviewer doesn’t need to inform the candidate many days in advance. Eg:
Interview for mid-level posts.

Eg: Interview for mid-level posts.

3. Job Fair interview (Career Fair interview):

Here the interviewer does a mini-interview to know the qualifications and the technical knowledge.
Then basic technical questions are asked to know if the candidate can proceed further for the main
interview. This is a very short interview to net only the potential candidates.

Eg: Interviews for fresher jobs held at the college campus.

4. Lunch interview:

This interview is more of a conversational interview mainly designed so that the interviewer gets
to know more about the candidate. This also helps the interviewer to assess how the candidate
conducts himself in a less-formal environment and how he presents himself.

Eg: Interview for managerial and sales posts.

5. Tea interview:

This is the same as a lunch interview but only that it differs in the time limit. Here the interviewee
gets less time to prove himself. The interviewer here has a structured format for questioning since
there is a time limit.

Eg: Interview for positions in the fashion and glamour industry and sales posts.

Based on the task

1. Apprenticeship interview:

Here the candidate is a novice and the interview is very formal one with general questions and
some skill related questions being asked.

Eg: Interview for training programs in organizations.

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
2. Evaluation interview:

In this interview, a fixed set of questions are asked and a scoring system evaluates the points
scored. This type of interview negates the scope of personal bias of the interviewer.

Eg: Interview in corporate organizations

3. Promotion interview:

This is for an employee of the company seeking a higher position for career enhancement purpose.

Eg: Interviews in mid-level posts.

4. Counselling interview:

When employees are called and their problems and solutions are discussed within the organization,
such meeting type interviews are called counselling interviews.

Eg: Interviews in big organizations

5. Disciplinary interview:

Here an individual or number of employees or sometimes the employee union is interviewed for
their misconduct or non-performance. This is more sort of a meeting between the manager and the
employees to get the problem resolved.

Eg: Interviews in big companies.

6. Persuasive interview:

The interviewee here has to persuade the interviewer to accept his point of view as in case of an
employee persuading his manager to implement some changes in the policy or a sales manager
persisting on selling a product. Eg: Interviews in mid-level managerial posts.

SELECTION DECISION OUTCOMES:

PLACEMENT AND ORIENTATION

Placement:

The selection procedure ends with the placement of a worker to the job. Placement is the process
of assigning a specific job to each one of the selected candidates.

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
In very simple words placement means sending the newly employed person to some department
for work. It also implies assigning a specific rank and responsibility to an individual. Matching the
requirements of the job with the qualifications of a candidate is the essence of placement.

According to Pigors and Myers “Placement is the determination of the job to which an accepted
candidate is to be assigned and his assignment to that job. It is a matching of what the supervisor
has reason to think he can do with the job demands. It is a matching of what he imposes (in strain,
working conditions etc.) and what he offers (in the form of payroll, companionship with others,
promotional possibilities etc.).”

Principles of Placement:

A few basic principles should be followed at the time of placement of a worker on the job.

These may be enumerated as below:

1. Man should be placed on the job according to the requirements of the job. The job should not
be adjusted according to the qualifications or requirements of the man. Job first; man, Next should
be the principle of placement.

2. The job should be offered to the man according to his qualifications. The placement should
neither be higher nor lower than the qualifications.

3. The employee should be made conversant with the working conditions prevailing in the industry
and all things relating to the job. He should also be made aware of the penalties if he commits a
wrong.

4. While introducing the job to the new employee, an effort should be made to develop a sense of
loyalty and cooperation in him so that he may realise his responsibilities better towards the job and
the organisation.

5. The placement should be ready before the joining date of the newly selected person.

6. The placement in the initial period may be temporary as changes are likely after the completion
of training. The employee may be later transferred to the job where he can do justice.

Proper placement helps to improve employee morale. The capacity of the employee can be utilised
fully if he is placed on the job for which he is most suitable. Right placement also helps to reduce
labour turnover, absenteeism and accident rates. If a candidate adjusts himself to the job and
continues to perform as per expectations, it might mean that the candidate is properly placed.

The Problems in Placement:

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
The main problem with placement arises when the recruiters look at the individual but not at the
job. Often, the individual does not work independent of the others.

Jobs in his context are classified into three categories:

1. Independent Jobs:

In independent jobs, non-overlapping routes or territories are allotted to each employee e.g. in field
sales. In such situations, the activities of one employee have little bearing on the activities of other
workers. Independent jobs do-not pose great problems in placement. Each employee has to be
evaluated between his capabilities and interests and those required on the job.

The objectives of placement will be:

(a) To fill the job with people who have at least the minimum required qualifications.

(b) People should be placed on the job that will make the best possible use of their talents, given
available job and HR constraints.

2. Dependent Jobs:

Dependent jobs may be sequential or pooled. In sequential jobs, the activities of one employee are
dependent on the activities of a fellow employee. Assembly lines are the best example of such
jobs.

In pooled jobs, there is high interdependence among jobs. The final output is the result of the
contribution of all the workers.

In dependent jobs, an employee is placed in a specific sub group. While placing, care must be
taken to match characteristics of the employee with that of the sub group. Because in such jobs,
team work matters a lot.

HR specialists must use assessment classification model for placing newly hired employees.

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
 Figure 11 Placement Steps

Concept of Orientation or Induction:

A new entrant joins an organisation as a stranger to his co-workers, job and organisation. This
causes the initial anxiety for the new entrant. It culminates at times to surprise resignation by the
new employee. Hence, arrangements need to be made to make the integration of the new employee
into the organisation as smooth and as free of anxiety as possible. Induction helps do so.

Induction is welcoming a new employee to the organisation. In other words, it is a well-orches-

trated event to socialise the new entrant with the people and the work environment in a particular
organization.

According to Michael Armstrong “Induction is the process of receiving and welcoming an

employee when he first joins a company and giving him basic information, he needs to settle down
quickly and happily and start work”.

B.P. Billimoria defined induction as “a technique by which a new employee is rehabilitated into
the changed surroundings and introduced to the practices, policies and purposes of the
organisation.” In short, induction is, therefore, the process of welcoming, indoctrination and
socialisation of new employee to his/her job and organisation.

Objectives of Induction:

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
When a new entrant joins an organisation, he/she is an utter stranger to the co-workers, workplace
and work environment. As such, he/she may feel insecure, shy and nervous. The first few days
may be all anxious and disturbing ones for the new entrant.

Particularly when a new entrant comes from rural area, he/she finds himself/herself completely at
sea in an industrial town and city. Then, induction helps reduce such anxities and dispels doubts
and nervousness from the mind of the new entrant.

Therefore, an induction programme is designed to achieve the following objectives:

1. To reduce the initial anxiety all new entrants feel when they join a new job in a new organisation.

2. To familiarize the new employees with the job, people, work-place, work environment and the
organisation.

3. To facilitate outsider – insider transition in an integrated manner.

4. To reduce exploitation by the unscrupulous co-workers.

5. To reduce the cultural shock faced in the new organisation.

3. Benefits of induction programme:

A formal induction programme may provide the following benefits to the new comer and the
organisation:

1. A well-designed induction programme reduces anxiety, nervousness, and absenteeism and em-
ployee turnover.

2. Induction helps minimize the reality or cultural shock new employees undergo on joining a new
organisation.

3. Effective induction also helps integrate the new employees into the organisation and fosters the
feeling of belongingness to the new organisation.

4. Induction also binds the newcomer and the present employees in a team.

B.P. Billimoria has appreciated the benefits of induction in these words:

“Induction has a greater significance in a developing country like India, where the percentage of
illiteracy is very high. The worker finds himself completely at sea when by force of circumstances
he has to shift from rural surroundings into an industrial environment. It is no use trying to push a
handbook of certified rules and regulations into his hands and expecting him to turn out into a
loyal and efficient employee. He needs a short and simple induction conducted by someone who

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
speaks his own language. This will go a long way in reducing turnover and, above all, in preventing
a worker from the likelihood of falling a prey to subversive elements which thrive on creating
labour unrest by misrepresenting employees to illiterate employees”.

Contents of induction programme:

The induction programme may be informal or formal. These are discussed one by one.

Informal Induction:

This is an unplanned induction programme. This may be simply an introduction to the new entrant
about the job and organisation. Such type of induction programme is generally carried out by the
medium and small-scale units. Usually, informal induction programme needs to be brief- lasting
for one hour or so.

Informal induction programme itself may be in the following two versions:

(i) Supervisory System:

In this system, the immediate job supervisor conducts the induction programme for the new
entrant. The supervisor briefs the new comer about the job, the department, introduces to the
colleagues, and takes him round the sections/divisions which are related to his job.

(ii) Buddy or sponsor system:

In the ‘Buddy System’, the immediate supervisor assigns the responsibility of induction of the new
entrant to an old employee. The old employee acts as friend, philosopher and guide to the new
comer. In order to introduce the new comer to the job and the organisation, the guide, i.e., the old
employee arranges meetings with other persons and departments and also supplies him with
relevant documents/literature regarding rules, regulations and other details of the organisation.

Formal Induction:

Formal induction is a planned programme carried out to integrate the new entrant into the
organisation. This is usually carried out by the large size organisation. A comprehensive induction
programme is carefully designed to introduce the new entrant to all about his job, colleagues and
organisation.

Accordingly, the contents of the formal induction programme cover the aspects ranging from the
mission, vision, rules and regulations of the organisation to job related particulars like salary,
benefits, service conditions, safety and welfare measures, etc.

A formal induction programme, thus, includes the following contents:

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com
1. Brief history of the organisation.

2. Organisational mission, vision, objectives and philosophies.

3. Policies and procedures of the organisation.

4. Rules and regulation of the organisation.

5. Organisational structure and authority relationship.

6. Terms and conditions of job including remuneration, working hours, holidays, promotional
avenues, etc.

7. Welfare measures like subsidised canteen, transport, health and recreation facilities, etc.

8. Safety measures.

All the contents of the induction programme are arranged into the three phases which are discussed
subsequently. Formal induction programme is carried out by the HR specialists through leaflets,
lectures, seminars and conduct tours for a couple of days/weeks. The induction may spread over
periods of time ranging from a few days to a few weeks even months.

S.MD. AZASH
ASSISTANT PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
AITS, RAJAMPET
CELL:9133915846, email: ejaz008@gmail.com