Chapter five

Staffing an organization

1. Staffing and the Staffing Process

2. Human Resource Planning
3. Recruitment and Selection
4. Decision making and Placement
5. Induction and Orientation (Socialization)
6. Training and Development
7. Compensation and Performance appraisal
8. Separation, promotion, transfer and layoffs
9. Employment Relationships
10.Major principles (guides) of staffing
Why staffing?
Human Resource (HR) and Human Resource Management (HRM)
Human Resource (HR)
– Organizations are made up of people and function through
people. without people organizations cannot exist.
– Organizations possess & utilize different kinds of resources.
Among these HR is the most important one
– Without HR
• is impossible for organizations to accomplish their objectives & utilize
other resources.
• other resources remain futile (useless, fruitless).
• organizations are said to be lifeless.
– "Human resource is the most important resource of an organization
which deserves special treatment, respect & dignity." (Robert Own)
– Is defined as:
• The knowledge, skills, creative abilities, talents and aptitudes of an
organization’s workforce.
• Represents the people at work.
• Human resources of an organization can be motivated.
• Human resource is mobile.
• It is the only factor of production which produces more than its input.
• It is the only resource which gains more knowledge and skilled in the long run, where
the other resources goes depleting
Human Resource Management (HRM)
• HRM is a set of policies, practices and programs defined to maximize both personal and
individual goals.
• It is the process of binding people and organizations together so that the objectives are
achieved.
• It is the field of management which has to do with planning, organizing, and controlling
the functions of procuring, developing, maintaining and utilizing a labor force such that
the a) objectives for which the company is established are attained economically and
effectively; b) objectives at all levels of HR are served to the highest possible degree; and
c) objectives of society are duly coincide and served. (Jucius)
• It is the planning, organizing, directing and controlling of procurement, development,
compensation, integration, maintenance and separation of Human recourses to the end
that individual, organizational and Societal objectives are accomplished. (Fippo)
• It is concerned with people at work and with their relationship within the organization.
• It seeks to bring together men and women who make up an enterprise, enabling each to
make his/her own best contribution to its success both as individual, and as a member
of a working group.
• HRM is the Nervous system of an organization.
Objectives of HRM
• Organization objective
– The goal of human resource function is to create a work force with the
ability and motivation to accomplish the basic organizational goals.
• Personal objective
– they relate to the satisfaction of the personal objectives of the
members of an organization through monetary and non monetary
devices.
• Societal objective
– Human Resource management relate to the satisfaction of social and
community objectives, such as
serving the customers honestly,
providing a higher standard of living in the community,
bringing comfort and happiness to society,
using resources to the society benefit,
being responsive to the needs & challenges of the society.
Staffing
• Once organizational objectives are defined & activities to be carried out to accomplish the
objectives are determined by planning; and the overall tasks are broken down & grouped in to
specific job along with the required authority to do by organizing, then the next concern is filling
the organizational structure with the necessary HRs. i.e. staffing.
• Organizations require people who have different knowledge, skills & experiences to fill various
positions to attain organizational objectives. Hence selection of the right person & placement in
the right position are the main aspects of staffing.

Staffing is
• filling the organizational structure with the necessary HRs
• selecting and placing the right people at right position.
• the process of obtaining & maintaining capable & competent people to fill positions in
organizational structure.
• the other managerial task/ function
• comes after organizing
• serves to obtain essential HR to of an organization
• managing HR in an organization.
• the process of identifying HR needs, procuring the necessary employee, training, utilizing and
separation of these employees.
• Major objective of staffing function is enabling an organization to attract, to develop, to
maintain, and to utilize efficient and effective workforce.
Staffing Functions
• Staffing involves the determination of manpower requirements of the
enterprise and providing it with adequate competent people at all levels.
• are operative or service functions.
1. Procurement
2. Development
3. Compensation
4. Integration
5. Maintenance
6. Separation

The staffing process

The staffing function performs the following sub functions or staffing involves a series of
steps, namely
6. HR planning (manpower planning)
7. Recruitment and selection
8. placement & Employment decision
9. Induction & orientation (socialization)
10. Training and development
11. Compensation & performance appraisal (PA)
12. Separation, Promotion, Transfer & Layoffs
Human Resource Planning (HRP)
• HRP is
– an integral part of corporate planning.
– the starting point in the process of staffing ; and refers to the
determination in advance the number & quality of people to
be employed.
– the means for acquiring, using, improving, and preserving
organizations HR.
– involves assessing
• current HR of the organization (HR inventory),
• future needs (forecasting personnel requirement) &
• ways to fill the gap (planning to procure new employees).
– it involves three distinct activities.
1. Evaluating the existing work forces
2. Forecasting the future needs of HR and
3. Ensuring the availability of workers when needed.
• HRP
– is the process of systematically reviewing HR requirements to ensure
that the required number of employees with required skills are
available when and where they are needed.
– tries to obtain the right people (with right knowledge, skills and
experience), at the right numbers, in the right jobs, at the right time,
and at the right cost.
• HRP includes four factors:
– Quantity: How many employees do we need?
– Quality: Which skills, Knowledge and abilities do we need?
– Space: Where do we need the employees?
– Time: When do we need the employees? How long do we need
them?
• The quality of goal depends on
– The extent that productive HR exists in an organization.
– Getting the right people at the right time on the right position.
Main aims of HRP
– to obtain & retain quality of manpower that the organization needs.
– To make the best use of the organizations manpower resource.
– to anticipate the problems arising from potential surpluses or deficits of
manpower.
• Purposes of HR Planning
– To expand the operation of the organization
– To reduce labor cost
– To utilize HRs efficiently and effectively
– To avoid disruption in operation
– For effective employee development program
– To maintain good industrial relation
• Importance of HRP
– Uncertainty Reduction
– Objectives achievement
– Environmental Adaptation
– Effective and Efficient Utilization of HRs
– HR Development
– Control
Why HR planning needed?
– Scarcity of personnel in some specialized areas
– high expenses involve to hire, develop & maintain employees,
– rapid technological changes make knowledge & skills get obsolete.
– need of skilled & qualified manpower to carry out the work of an
organization
– labor turnover & absenteeism among workers
• People leave organizations for a number of reasons, such as retirement,
transfer, better opportunities.
– to meet the requirements of expansion & diversification programs
of the organization.
– the presence of fast change in technology & the needs of workers
– to cope with the future uncertainties &
– to identify areas of surplus personnel and then to transfer it to
other departments.
• HRP helps management to strive for the right number
and the right people at the right places & at the right
time to do things that help or result to achieve maximum
benefit for both the individual & the organization.
Factors to be considered in HR planning
HR planning is accomplished through the analysis of
• internal factors/ environment
– current & expected skills needs, vacancies and departmental
expansions & reductions
• External factors/ environment
– Labor market, government regulations, labor unions, etc.
• As a result of these analysis plans are developed to
execute other steps.
Therefore, the main points to be considered in HR planning are
1. Current assessment
• reviewing the current human resource or status of HR.
– HR inventory or skill inventory
– job analysis
2. Future assessment
• estimating the future personnel requirements i.e. HR forecasting.
– Forecasting depends on the nature of the organization, products it produces and the state of growth
of an organization.
3. Development of future program
• comparing the current capabilities, skills of the employees with the future requirements to
design future program & fill the gap.
• Comparison of the inventory & the forecast enable the manager to make decision on the
future HR needs of the organization
– shortage of employees’ calls for new employment and
– surplus in the contrary requires attrition (early retirement, termination, etc.)
4. Career development
• is an essential step in HR planning.
• prepares management to deal with dynamic changes that takes place overtime in
organizations.
• To cope with these changes a manager required to plan for employee career development.
Job analysis
• Skill inventory is assessing what talents & skills are currently available.
Job analysis
– examining and appraising jobs and skills.
– assessing total jobs within the organization and the required skills &
behavior necessary to perform these jobs.
– is the process of determining and reporting pertinent information relating
to the nature a specific job.
– is the determination of the tasks which comprise the job and the skills,
knowledge, abilities, and responsibilities of the jobholder for successful
job performance.
– is the process of determining the duties and skill requirements of a job
and the kind of person who should be hired for it.
– Is needed when
• an organization is formed.
• new jobs are created in the organization
• jobs are changed (change in nature of jobs), because of new technologies, working methods,
procedures or systems.
Components of job analysis
• Job analysis has two components.
1. Job specification and
2. Job description
Job description
– the statement depicting/ describing what the job holder does; how he does, and why he does
a particular job.
– accurately portrays the job content; working environment, and the terms & conditions of
employment, etc…
– describes the purpose of the job and its relation with other jobs.
– Lists the duties of a job; job’s working condition, and the tools, materials and equipments used
to perform it.
Job specification
– Employee specification
– states the maximum acceptable qualifications of the incumbent (employee) that will
be assigned to the particular task.
– Identifies the skills & knowledge, and abilities required to perform particular jobs
effectively.
– Describes the acceptable human qualities.
– Focuses on personal qualities – physical. Mental, skill/talent , qualification
– Lists the skills, abilities, and other credentials needed to do the job.
Process of HR planning
HR plan consists of the following steps
1. Analyzing organizational objectives & plans
2. Determining the overall HR needs
3. Taking inventory/ auditing of existing personnel
4. Determining net new personnel requirements
5. Developing action plans

• Analyzing organizational objectives & plans

– the main use of HR planning is to provide the organization with workforces
needed to achieve organizational objectives.
– The base for HR planning is the corporate plan of the organization.
• Determining the overall HR needs
– determining the total HR requirement
– determining the future HR requirement
– predicting the need for & the availability of people with required qualities to
perform the current & the future jobs
– assessing the overall needs, i.e. the job needs and the job volume
– assessing the Demand & Supply aspect of HRM
• Demand
– Organizations future demand for employees is central to HR planning.
– Demand forecasting is predicting an organizations future demand for employees and
an essential part in HR planning process,.
– HR is influenced by
• external challenges (PEST)
• organizational/ internal factors such as strategic plan on growth, production, marketing, etc, and
• workforce factors such as retirement, resignation, termination, and death.
• HR demand forecasting involves predicting the quantities and kinds of HRs the
organization will require at some future point in time to achieve its strategic
objectives.
• Supply
– the labor demand forecast projects HR needs of an organization,
– the labor supply forecast projects HR availability.
– Labor supply forecasts are typically broken down into two categories:
• Internal supply
– consists of present employees which can be promoted, transferred to meet the anticipated needs.
– needs to carry out HR audit/ inventory to summarize workers skills & abilities.
• External supply
– important when there is no replacement or opening for an entry-level job.
– labor market analysis is very important activity to estimate future supply of HR.
Taking inventory/ auditing of existing personnel
– important to know & decide the quality & quantity of workers that might stay with the
organization for the future plan
– important to know to what extent the organization can meet its personnel needs within
– inventory has to take into account the expected changes like promotion, transfer,
retirement, deaths, quits, resignation, etc.
– helpful to determine future HR requirements.
Determining net new personnel requirements
– comparing overall personnel requirements with personnel inventory, then the difference
is net new requirement.
– Gap Analysis
– Net HR requirement is determined by comparing the labor demand forecasts and the
internal labor supply forecasts.
– The difference of the total HR needed for an organization and the total HR available in
the organization will result in the net HR requirement.
– Net HR requirement = HR demand forecast – internal HR supply forecast
• If HR demand is greater than internal HR supply, the net HR requirement is positive (deficit supply
of HR, i.e., additional HR is needed).
• But when HR demand is less than internal HR supply, the net HR requirement is negative (surplus
supply of HR, i.e., there are excess of HRs in an organization).
• If HR demand is equal to internal HR supply, the net HR requirement is zero (in a state of
equilibrium).
Developing action plans
– Once the supply & demand of HR are estimated, adjustment is needed.
• If internal supply exceeds the firm's demand, surplus of HR exists.
• If internal supply can't fulfill the organizations needs, shortage of HR exists.
• Therefore, recruitment, retirement, promotion, transfer, training, downsizing, etc can
be the part of action plan.
– If Net HR Requirement is Positive
• HR Deficit Supply
• HR department must design and implement techniques to overcome the shortage of
HRs.
– Recruitment and Selection
– Improve Retention Rates
– Training and Development
– Overtime
– Outsourcing
– If Net HR Requirement is Negative
• HR Surplus supply
• When this happens, the HR department must make decision to reduce the number
– Downsizing (outplacement):
– Layoffs
– Early Retirement
Recruitment and selection
• Recruitment
– is searching for prospective employees and stimulating & encouraging
them to apply for the job vacancies in the organization.
• seeking & attracting a pool of people from which qualified candidates for job
vacancies can be chosen.
– the process of generating a pool of qualified candidates for a particular
position.
– the art of attracting a pool of applicants from among whom the most
suitable ones may be selected.
– act as a bridge between the prospective employees & the organization.
• recruitment is the process of attracting individuals
– just in time,
– in sufficient number and
– with appropriate qualifications,
– and encouraging them to apply for the jobs
Factors affecting Recruitment
– Internal Factors
• Working conditions of the organization
• Promotional Opportunities
• Salary level, and type and extent of benefits
• Other Personnel policies and practices
• Image of the organization
• Ability and skill of the management to stimulate the candidates
• Quality of the recruitment process.
– External Factors
• Personnel policies and practices of other organizations regarding working conditions, salary scale,
benefits, promotional opportunities, employee relations etc.
• Career opportunities in other organization.
• Government regulations
• Labor market conditions
Reasons for Recruitment
– Company expansion
• When the operation of the organization is expanding, new jobs are created and additional
employees are required.
– Turnover
• because of employees leaving the organization, such as natural attrition, voluntary and
involuntary turnover.
Sources of staff recruitment
– Organizations can attract candidates from internal & external
sources, i.e. candidates within and outside the organization.
1. Internal sources
2. External sources
Internal sources
– filling a vacancy by a person already employed by the organization
• Whenever any new vacancy arises, people within the organization will be
upgraded, promoted a transferred to fill the vacancy.
– include
• the existing employees (permanent & temporary) and
• ex-employees who left the organization for various reasons.
– Most large organizations attempt to develop their own employees for
positions beyond the lowest level.
– The internal source is one of the best sources of recruitment if an
organization has been effective in recruiting and selecting employees
in the past and has a strong employee development program.
Advantages/ merits
– enhances employees moral
– easy to evaluate existing employee than the new one.
– minimum time is spent on training
– less costly (costliness) or much cheaper getting
familiar employees
• less expensive when compared to outside source of
recruitment.
– ensures job security & opportunity for advancement
that enhances employees loyalty towards the
organization
– make employees more reliable
• It is a relatively cheap way of recruiting, vacancies can be
advertised at little cost and it can also save time.
• Organizations typically have a better knowledge of internal
applicants’ skills, knowledge and abilities.
• Inside job candidates have better knowledge of the
organization’s policies, procedures and other special
characteristics and its operation - orientation and training
• have a significant positive effect on employee motivation and
morale when it creates promotion opportunities.
• enhances employee commitment and job satisfaction
• The return on investment that an organization has on its present
workforce is increased.
–Most organizations have a sizeable investment on their
employees in the form of training and development, fringe
benefits, etc. being able to use this workforce to its maximum
capability improves the organization’s return on its investment.
Disadvantages/ demerits
• results organizational in-breeding
– prevent new ideas from coming in & discourages people
with fresh ideas, more qualification, and more creativity
from entering the organization.
– restrict the nourishment of new ideas
• the existing employees become outdated and
ultimately these sources may dry up
– The internal source is never sufficient so excessive
reliance on internal source may be dangerous.
• narrow down selection options
– Promotions are limited to seniority, ignoring merit.
• This leads to ill-feeling and conflict in the organization.
• Internal recruiting simply promulgates the old ways of
doing things; that creative problem solving may be
hindered by lack of new blood or a sort of “managerial
inbreeding.”
– Inbreeding of ideas can stifle new ideas and innovations.
– When an entire management team has been brought up
through the ranks, there may be a tendency to make
decisions “by the book” and to maintain the status quo.
• Infighting for promotions can become overly intense
and have a negative effect on the morale and
performance of employees who are not promoted.
• An organization can suffer if it uses inferior internal
sources just for the reason of boosting the morale of
current employees (promotion based on seniority)
External source
– potential candidates totally come from the external environment (outside
the organization).
• the sources of job application from outside of an organization.
– External recruiting is attracting applicants from various outside
organizations.
– are
• new entrants/ fresh products,
• educated but unemployed section of the society,
• employees of other organizations,
• retired persons, etc
– used if HR needed is not available (on hand)
– It is needed in organizations that are growing rapidly or have a large
demand for technical, skilled, or managerial employees.
– External sources provide large pool of candidates.
• Commonly used external sources are:
1. Educational institutions
2. Employment agencies
3. Advertising for vacancies
Educational institutions
• recruiting from college & university.
• Organizations send employment circular to the various
professional, and educational institutions display the circular on
the notice board so that the potential candidates (students) come
to know about the vacancies.
Employment agencies
• employment exchanges & private employment agencies. They
maintain a detailed record of job seekers and refer the candidates
with appropriate qualification to the required employers.
Advertising
• Commonly placed in daily news papers, magazines, trade &
professional publications.
• Popular method, but time consuming and heavy expenditure is
involved in recruiting.
• Advertising for vacancy should include
– The name of the organization.
– Position
– Qualification
– Job experience
– Place of work
– Other requirements
– Terms of employment
– Salary
– Application deadline &
– different documents required for application.
– Address of the organization.
Employers require external sources
– To fill entry-level jobs (jobs for the beginners).
– To acquire skills not possessed by current
employees.
– To obtain employees with different background, to
provide new ideas.
Sources of external recruitment include
– Schools, colleges and Universities
– The unemployed
– Competitors and other organizations
– Private and public employment agencies
– Professional Associations
• Advantages of external recruitment
– helps to get best professionals available in the market with
required experience, skills, education, etc.
– recruitment is done including all sections of the society
– provides new or fresh blood to be pumped into the
organizations personnel who are creative
– helps to attract specialists
– Large number of applicants (a pool of talent is much larger
than the internal sources).
– It is often cheaper and easier (low training cost) to hire
technical, skilled, or managerial people from the outside
rather than training and developing them internally.
– Can bring new ideas (insights and perspectives) to organization
– Expand external relation of an organization.
– Avoid internal promotion polities
• Disadvantages of external recruitment
– more expensive
• needs adequate time & money on training and induction
– chance of brain drain or to be recruited by other
organization
– Attracting, contacting and evaluating potential
employees can be more difficult and can be very costly.
• This is especially true for higher-level jobs.
– Employees hired from the outside need a longer
adjustment or orientation period.
• As a result, it might take a significant time before they can
perform with their full potential.
– It can be one reason for the reduction of morale of
internal employees who feel qualified to do the job.
• During recruitment, potential candidates pooled together through
advertising vacancies.
• Vacancies can be filled
– by internal recruitment
• the existing workers through transfer, promotion, demotion and recall from layoff
– from external sources
• labor market through vacancy announcements, and unsolicited applicants, educational
institutions, employment agencies, labor unions, etc
• The vacancy announcement incorporate
– Job description
• written record of duties, responsibilities & requirements of a particular job.
• is the description of job quality characteristics.
• gives information about: the title, location, duties, working conditions, etc.
– Job specification
• depicts the requirements of personnel who should be made responsible for a given job
• gives/ specify information regarding
– characteristics,
– qualities (physical & mental/ psychological),
– qualifications,
– experiences, etc of the worker who is most suitable to carryout the activities mentioned in the
job description
Methods of Recruitment
• Direct method of recruitment
– Recruiters directly contact the prospective employees and
attract them.
• contact graduating students & select the best among them
• hold conferences/ seminars for perspective employees and encourage
them to apply for vacancies
• participate in job exhibitions or job fairs to attract prospective
employees
• Indirect method
– encouraging prospective employees to apply for vacancies
through advertisements in newspapers, magazines, journals,
etc..
• Third party method
– Private employment agencies, those carry out recruitment
process of an organization for a fee.
Recruitment Methods
• Internal Methods
– Job Posting and Bidding
• Job posting and bidding is an internal method of recruitment in
which notices of vacant positions are posted in central locations
throughout the organization and existing employees are given a
specified length of time to apply for the available positions.
• External Method
– Job Advertisement
– College Recruiting
– Employment Agencies
– Employee referrals
– Walk-ins /Write-ins or Unsolicited application
– Internet (websites)
– Apprenticeship/Internship
Selection
Selection is
– Identifying and choosing applicants/ individuals who can successfully
perform a job from the available candidates.
• choosing from the pool of applicants, the person best meeting/ fitting job
specification
• a procedure concerned with securing & extracting relevant information about an
applicant.
• ascertaining whether or not the candidates possess qualifications for the specified job
– is the process of choosing from a group of applicants those individuals best
suited for a particular position and an organization.
– is the process of making a “hire” or “no hire” decision regarding each
applicant for the job.
– Selection decision is always made within the legal frame work.
– Effective selection is highly important for an organization future success
because selection is more powerful way of improving productivity.
– is crucial process & requires constant attainment, interest and concerns of
management.
The ultimate of objective of selection is
– to match the requirement of the job and the qualification,
knowledge, skill & experience of the individual applicant.
Factors affecting the selection process
• Legal considerations:
– HRM is influenced by legislation, executive orders and court
decision.
• Applicants pool (labor market):
– The number of qualified applicants for a particular job can
also affect the selection process.
• Probationary period:
– many firms use a probationary period that permits them to
evaluate an employee’s ability based on established
performance.
Selection processes
• The main objective of selection process
– is to help the organization in determining whether the applicant has
the required qualification for a specific job position and is hiring the
best candidate among all the applicants.
• To select the best worker who best fit to the position from the
potential candidates, there are various stages/ steps that one
should follow.
• The commonly used procedures are:
1. Filling/ Completion of the formal application form or Application blank
2. Preliminary Screening/ interview
3. Employment interview/ Final interview
4. Employment tests/ Selection tests
5. Physical examination
6. Reference letters/ Reference check & back ground investigation
7. Final selection & communication (Job offering)
Filling/ Completing the formal application form or Application blank
– the applicants are made to fill up a pre-designed application form
• It helps to extract detailed information about the applicants
– personal information/ identification or personal history
– physical characteristics
– educational background/ qualification,
– training program undergone,
– work experience,
– salary expected,
– future career plans,
– self assessment of previous work,
– reasons for leaving the current or previous employer, etc
– the applicant is asked to submit his bio-data /CV/ instead of
feeling up the form.
– the information is used for the interviewer during the final
interview and to fill the employee record if the applicant is
selected.
• to screen out unqualified & to check expectations & interests
Preliminary Screening/ selection/ interview
– to screen out applicants who are obviously unqualified or overqualified to
the job.
– Short listening using (if the № of applicants is large for employment test )
• Document review: Application form or CV
• Preliminary interview
Employment interview/ Final interview
– a selection technique that enables employer to view & assess the whole
“personality” of prospective employees.
• enables interviewers to gain additional information which is not included in the
application form.
• helps interviewer to have good overview of the candidate’s motivation, personality
& overall attitude.
– used as a single screening mechanism
– provides an opportunity to have face-to-face contact
– enables the employer to investigate the candidates’ ability in work related
areas
– mainly done by HR department 
Employment tests/ Selection tests
– practical examination of candidates abilities and knowledge in the area of the
future job assignments
– Offers opportunity to gather additional information about a person outside of the
limitation of application forms & preliminary interview.
– helps to gather information about applicants and thus be able to assess their
suitability to the job
– Common selection tests are: IAPI
• Intelligence test
– assessing the person’s general mental capacity in respect to memory, verbal
comprehension & quantitative skills.
– test of general intellectual abilities (IQ).
• Attitude test
– assessing the person’s specific job skill & abilities, and the potential for acquiring such
competencies.
• Personality test
– Assessing variety of personal traits & characteristics including attitudes, values & beliefs.
• Interest test
– assessing person’s occupational interests in terms of likes & dislikes for different job
opportunities.
Physical examination
• checking the physical fitness of the candidates.
• Medical examination of the candidate before employment.
• also needed to identify the disabilities the candidates have so as to help the management in
allocation of the jobs.
• This step is necessary for 3 vital reasons:
1. to assure the applicant is fit to work in the organization.
2. to assure the candidate is physically fit for placement in a particular job.
3. to provide base against which later physical examination may be compared. (important in the disability
claims that may occur during the job assignments).

Reference letters/ Reference check & back ground investigation

• Background Investigation
• Verification of information obtained from the candidates application form & selection interview.
• After a candidate has passed successfully all the above stages in the process of selection, a
reference check is made where in the HR manager gets in touch with the current or previous
employer of the candidate and find out relevant details.
• This is done to see whether the candidate has furnished correct details & also to cross check the
suitability of the candidate for the given position.
• Include:
– letter of recommendation
– references;
– testimonials, etc… from the former employers so that it is possible to know the competence of the
candidates.
Final selection & communication (Job offering)
• Selection Decision
• After getting a positive reference, a final list of
selected candidates is made.
– The selection results should be made known to
both the successful and the unsuccessful
candidates as soon as possible.
• The information is passed on to the candidates,
the concerned line managers & other people.
• The final step, giving the employment letter to
the candidate specifying the place of work,
working hours, etc…
Interview/ job interview
– is the most widely used selection tool.
– It is a process in which the interviewer tries to form an opinion about the
interviewee's personality, intelligence, technical competence, interests,
attitudes, etc…. through face to face interaction.
– is an attempt to secure maximum amount of information from the candidate
concerning his/her suitability for the job under consideration.
The basic objectives of interviews
– to properly judge an applicant’s qualification & characteristics
– to give important & relevant information for the applicant about the job & the
organization.
– to establish good rapport with all the candidates attending the interview.
– to promote the goodwill of an applicant towards the organization, immaterial
of the outcome of the selection process.
– to help the management in grievance handling, in conditions of disciplinary
action, in interactions with the workers union.
– to observe the applicants appearances, personality, confidence level, etc.
– to solve the problems arising out of the various interactions seen inside the
organization.
Types of interviews
1. Patterned or structured interview
2. Non-directive or free interview
3. Depth or action interview.
4. Group or discussion interview
5. Panel or board interview
6. Stress interview
Patterned or structured interview
• is a very common type of interview which focuses on asking structured
predetermined questions in a strict sequence.
• There is little or no deviation of the sequence of the questions & most of them
are job/skill oriented.
Non-directive or free interview
• is unstructured & unplanned. General & unstructured questions are asked and
the candidate is given adequate time to answer in detail. The discussion in the
interview may be regarding various subjects unrelated to the job under
consideration.
• The basic aim of this type of interview is to judge the real nature of the
applicant.
Depth or action interview
• is a combination of patterned & free interview styles
• is semi structured, where structured questions are asked in intervals unstructured questions or
conversations are asked.
• its aim is to obtain detailed information about both the personal as well as the professional life of
the interview.
Group or discussion interview
• The interview held for more than one candidate. The group of candidates is given a topic or a
problem for discussion and then the observers identify the persons
– who have good leadership skills,
– who influence the discussion,
– who are good analyzers
– who have good communication skills, etc, and select the one most suitable for the given job .
Panel or board interview
• An interview in which the number of interviewers would be many and the interviewee will be one.
• The panel (board) consists of expertise of different areas.
• Has advantage b/se a range of questions asked and the area of discussion covered.
Stress interview
• is in which the interviewer pretends to be hostile & provokes the candidate by asking questions
rapidly by criticism & trying to annoy him.
• conducted to find out the reaction of the candidate under pressures & to observe the presence of
mind of the candidate when he is angry or confused.
Decision making and Placement
– The candidates who have been selected should be
given placement letters that state their employment
and specific positions, and other employment related
matters.
• Induction & orientation (socialization)
– When the candidate is selected and offered a job, it is
necessary to introduce the new employee to the
organizations philosophy, rules, policies, etc…..
Therefore, the new employee begins his work, he
should be assimilated to the job & organizational
environment.
Induction & orientation
– are familiarizing the new employee with the organization.
– done by
• oral communication and
• physical observation,
• written media like manuals, guidelines and others.
– giving information to the employee on the organization’s
history, products, operations, policies & rules, services
available, opportunities & other issues.
– introducing the new employee to the organizations
philosophy, rules, policies, etc…..
– are tasks to be accomplished to ensure smooth
organizational membership of a new employee.
– are assimilation & socialization of a new employee.
Induction
• is important when one first join an organization. it is the
one which passes a person settle into the job.
• Refers to the process of familiarizing a new employee with
the overall organizational environment through provision
of adequate information to bring about change in new
employee’s expectation, behavior, and attitude to assure
the best match with organizational interest.
• Providing information about the organization’s history,
purpose, operations, products/services and his
contribution to the organization and needs & benefits for
the new entry.
• Done through the interaction of the employee, the
immediate supervisors & personnel.
Orientation
• enables new employee to familiarize with
working environment through the provision of
adequate information.
• Involves discussion between a manager &
employee regarding the job assignment including
– specific location,
– rules and procedures of the work and
– the materials, equipments needed to do the job.
• official orientation provided by the organization
to the new employee avoids misleading and
inaccurate information.
 Regardless of the type of organization, orientation should usually be conducted at
two distinct levels:
– Organizational orientation - presents topics of relevance and interest to all
employees.
– Departmental and job orientation - describes topics that are unique to the new
employee's specific department and job.
Possible Topics for Organizational Orientation Programs
– Company overview
– Policies and procedures review
– Compensation
– Benefits
– Safety and accident prevention
– Employees and union relations
Possible Topics for Departmental and Job Orientation Programs
– Department functions
– Job duties and responsibilities
– Policies and procedures
– Department tour
– Introduction to department employees
The purposes of induction & orientation
• Reduce the stat-up cost.
– Enable a new employee to meet performance
standards sooner.
• Reduce anxiety
– Employee fear of failure on the job can be avoided,
and he develops self confidence.
• Decrease turn over
– provision of all kinds of information during the entry
time make new employee stable in the organization.
• Save time to supervision
– Reduce the time of a supervisor to supervise and
observe the performance of an employee.
Benefits of Orientation
– It creates favorable attitude in the mind of the employee
and this improves his morale and performance.
– It aids learning and also saves time and trouble since the
employee knows his jobs and what is expected of him.
– Orientation leads to reduction of anxieties, frustration of
the new employee and reduces reality shock.
– It gives accurate information to the employee who may not
get it otherwise or may get it from disgruntled employees.
– It reduces the rate of employee turnover. As many new
employees can be introverts they may find it difficult to seek
knowledge and acquaintance on their own.
– It makes the beginning of socialization, the process by which
an employee is indoctrinated to the organizations culture its
norms, values, and ways of doing things.
 Training and Development

• Having qualified & well trained personnel to perform various jobs is a

basic necessity for any organization.
• Through recruitment & selection, and placement, competent
employees can be brought into the organization, but they need
continuous trainings & developments so that their needs and the
objectives of the organization can be met.
• Employees’ skills, knowledge & attitude become obsolete unless
continuously polished & updated. Therefore, training and staff
development should be the concern of managers & organizations.
• Training & development seem to indicate the same meaning and
commonly used interchangeably, but a detailed examination would
reveal some differences.
• Training programs are primarily directed towards maintaining and
improving current job performances while development programs are
primarily intended to develop skills for the future jobs.
• Training is a learning activity provided by employers to
employees to help them perform their current jobs more
efficiently; and development focuses on providing knowledge or
skills within a specified area, but is not necessarily job related.
• Training is learning related to the present job and development
is learning for growth of the individual but not related to a
specific present or future job.
• Training is a learning activity provided by employers to
employees to help them perform their current jobs more
efficiently; and development focuses on providing knowledge or
skills within a specified area, but is not necessarily job related.
• Training is learning related to the present job and development
is learning for growth of the individual but not related to a
specific present or future job.
• Training usually takes place at working places.
Training
– becomes necessary because of the changing technology, up growth of skills &
knowledge of workers, the need to increase the productivity of the workers, etc.
– is any process by which the aptitudes, skills and abilities of employees to perform
specific jobs are increased.
– improves a person’s skills to do the current job at high level from the first day they
start working.
– Training usually takes place at working places.
– Training as an activity designed to teach skills and knowledge required for particular
kind of work.
– Training is relatively narrow to specific skills and operations; immediate application,
and shorter time scale.
Development
– covers not only performance improvement activities but also those which enhance
personality, gain better attitudes, values and behavior.
– The scope of development is wider than training.
– It is given for managers.
– Executives a quire conceptual and theoretical knowledge
– For general development.
– It is career oriented or growth oriented - for all activity of job.
– It is long term process.
Importance of training
• training programs improve employee knowledge, skills and job performance.
• The need for proper training is increased by the following reasons.
– increased productivity
– improvement in employee moral
– availability for the future personnel needs of the organization
– improvement in health and safety
– reduced supervision
– personal growth
– organizational stability
– Reduction in learning time
– Boost Performance of employees
– Boost employees morale
– Reduction in operational problems
– Fulfill manpower needs of the organization
– Increases organizational stability and flexibility
– Beneficial employees
– Increase capacity to adapt new technologies and methods.
– Increase innovations of new strategies and products.
Objectives of training
– To provide knowledge, skills & attitudes for individuals to undertake their
current jobs more effectively.
– To assist employees at all levels to extend their untapped talents and to
understand the implications & significance of that roles.
– To reduce waste & increase efficiency.
– To minimize input use & maximize output.
– To assist employees at all levels to become capable of assessing other
responsibilities within an organization at more senior level or at their
current level (to develop their potential).
– To help management in developing personnel for future expansion or
diversification.
– To assist employees at all levels to adapt to the changing circumstances
facing organizations, such as new technologies, new business
environment, new products, etc.
– To relive supervisors from close supervision and get time for other duties.
– To make workers more perfect in their work.
– to help the worker in avoiding them from being obsolete.
The training process
• To ensure improvement in person’s skills & knowledge to perform the work through training, effective
training system should be designed.
• Training is usually related to
– operational or technical employee while
• Development is
– for managers & professionals,
• Development program needs to be planned for maximum utilization of human capital potential so as to
ensure continuous development of the organization.
Steps in designing effective training
• Need assessment
– assess the needs for training based an
• organizational analysis,
• person analysis &
• task analysis.
• Assessment of employee readiness
– Consider whether employees are motivated to learn.
• Creation of learning environment
– lay a foundation for successful training by creating the conditions under which employee will learn best.
• Ensuring transfer of training
– be able to apply what employees have learned to their jobs.
• Selection of training methods
– Consider the possible training methods & select the most appropriate.
• Evaluation of the training program
– Evaluate the outcome of the training program.
The training process
1. Assessing training need
• Who needs to be trained?
• What do they need to know?
• What they already know?
2. Set training objectives
• SMART
3. Plan training evaluation ASPDCEM
• Do trainees like training?
• Can they meet training objectives?
• Do they perform better on the job?
4. Developing training program
• Content
• Methods
• Duration
• Location
• trainers
5. Conduct training
6. Evaluate training
7. Modify training program based on evaluation
Methods/ approaches of training
– Organizations can use training methods that they believe
appropriate to satisfy their training needs & accomplish objectives.
– The commonly used training methods are classified into:
• On-the- job training
• Off- the-job training
• Vestibule/ simulated training
On the- job- training
– is putting the worker on the job under close supervision of the
trained instructor.
– In support, there are a variety of training aids and techniques such
as lecture manual, producer charts, sample problems,
demonstrations, and so on…
– the most commonly used method of training carried out on the job.
– occurs in the work setting & during the actual performance, i.e.
within the actual work environment.
On the- job- training approaches
Job rotation/ position rotation
– is rotating key personnel in different positions, dept’s, etc.
– offers opportunities for persons to spend time in different jobs and expand the range of their
job capabilities.
Coaching
– the communication of specific technical advice to an individual through the assignment of
specific person to act as either an instructor or resource person for the trainee
– the trainee is placed under a close guidance & supervision of trainer and he give an opportunity
to perform an increasing range of management tasks, and share the experience of the coach.
Apprenticeship
– involves learning from more experienced employees.
– is generally followed by technical field in which proficiency is acquired in direct association with
work & direct supervision.
– involves an assignment to serve as under study or assistant to a person already having the
desired job skills.
Modeling
– a process of demonstrating through personal behavior what is expected of others & it is an
influential means for building appropriate job skills.
Internship
– refers to joint program of training where school & business corporate in order to train students
by assigning them to jobs.
Off-the- job training
– takes place outside the actual workplace but attempts to stimulate actual
working conditions.
– refers to training conducted away from the actual work setting.
– approaches/ techniques or the most popular kind of off-the-job training
are
• lectures
• conferences
• group discussions
• case studies
• role play
• programmed instruction etc….
Lecture or class room instruction;
– Class training
• The most familiar method.
• is an effective method of imparting the information & knowledge quickly to a large numbers.
– Lecturing
• Is a semi-formal discourse in which the instructor presents a series of events, concepts, principles &
theories and express problems or explain relationships.
• useful for teaching the factual material, concepts, principles, theories & their application to job
situations.
conferences, seminars & workshops
– Conference.
• a common platform for intensive & through group discussion & results in suggesting the involved
methods of performing work in organizations
• brings together individuals with common interests to discuss & attempt to solve a problem.
– Seminar
• a group of persons gathered together for the purpose of studying a subject under the leadership of an
expert.
– Workshop
• A group of persons with common interest or problem after performing professional & vocational work
meet for an extended period of time to improve their individual proficiency, ability, or understanding.
Case studies
– this method utilizes simulated or actual business problems experienced before for trainees to solve
where the trainee will be expected to study the information given and to make decision
– a method through which the trainees are given a case & are asked to identify basic problems and
suggest solutions.
Sensitivity training
– a process in which several individuals work together for several days for the purpose of building
sell awareness, understanding group processes, and greater understanding of inter-personal
relationships.
Role playing
– is a mechanism that forces trainees to assume different identities, e.g. a male worker may assume
the role of a female supervisor, and vice versa.
Vestibule/ Simulated training
– is a combination of on-the-job training methods.
– is a method where the identical machines & equipments that are
used on the work floor are installed in the training center and also
an effort is made to implicate work atmosphere found on the actual
floor.
– tries to give the trainee a chance of getting trained in a situation that
is as close as the original work situation as possible.
– here the work environment is almost similar to the actual
environment but not the rest environment.
• e.g. training given for a pilot.
Conducting training
– Training can be given either by the people from the organization
itself or by those outside the organization.
– It should be based on the appropriate content, trainers & trainees,
training methods, facilities & places, and appropriate time schedule.
 To develop employee’s competency, organization can use the
combination of formal education, assessment, job experience &
interpersonal relationships.
Formal education
– Programs that look a lot like training programs, incorporating lectures,
simulations & group building.
Assessment
– Refers to collecting information about employee’s behavior, communication style
or skills & providing them with feedback.
Job experience
– Major part of employee development. Organizations should support this
development by planning job experiences that will stretch employee’s skills by
promotions & lateral moves through job rotation & transfer.
Interpersonal relationship
– Employee’s or manager’s relationships with more experienced members of the
organization can help them develop the ability to meet the job requirement.
– The productive senior employee can help in the development of less
experienced employee through establishing and mentoring relationships.
 Compensation & Performance appraisal

Compensation
• People work is organizations for the sole purpose
of earning enough money to live comfortably &
satisfy all their needs.
Wages & Salary administration
• the establishment and implantation of sound
policies & practices of employee compensation.
• should be balanced so as to keep the parties, the
employer and the employee happy & satisfied.
• includes the money paid as reimbursement.
Factors affecting compensation policies
Factors affecting compensation policies of the organization are
• organizational ability to pay
– the organization should have enough funds to pay enough salary or wage to the
employee
• supply & demand of labor
– If supply is more than the requirement, then the management can pay less
wages & salaries and reverse in case of less supply.
• Prevailing market rate
– the group wage rate or salary in the industry also influence the wage & salary
than the average salary of the industry.
– An organization can not give less salary/ wage than the average salary of the
industry.
• Cost of living
– the cost of living difference in different cities.
• Productivity
– the productivity of workers has an impact on the kind of wage/ salaries they get.
– More productive workers get more salaries.
• Bargaining power of the workers union
– Powerful worker's unions generally have a lot of influence
on kinds of wages & salaries given by the organization.
• job requirements
– Some jobs are more hazardous & dangerous than others,
and employees understanding them would get more pays
than other who are in relatively safer positions.
• Managerial attitude
– The top management has a lot of influence on wage/
salary administration.
– They can choose whether to pay the industry average
salary; above or below the average salary, the kind of
working conditions to be provided to the employees, the
length of work hour, etc…
Types of incentives
– Intrinsic rewards
– Extrinsic rewards
• Intrinsic rewards
– rewards which a worker receives for himself and are totally
dependent on the kind of work done by him. i.e. self/
individual incentives.
– could be in the form of participation in decision making, job
freedom, more responsibility, more interesting work
assignment, opportunity for personal growth, etc …
• Extrinsic rewards
– are incentives given for all employees of the organization
– can be
• direct compensation
• Indirect compensation
– direct compensation
• basically monetary in nature
• the payment is made immediately like
– salaries or wages paid to the employees
– overtime earning's
– holding premiums
– performance bonus
– profit-sharing
– stock options, etc…
– Indirect compensation
• are incentives realized at a later period of time
– generally once in a year or
– at the time of retirement
 like group insurances schemes, contributions for provident
fund services, etc…
Modes of payment
There are two basic methods of payment.
– payment by time and
– payment by output
Payment on a time basis
• is more satisfactory when
– unity of outputs are not distinguishable & measurable
– employees have little control over the quality of output or there is no
clear-cut relation between effort and output
– work delays are frequent & beyond employee control.
Payment on the basis of output
• is more satisfactory when
– units outputs are measurable.
– a clear relation exists between employee effort and quality of output
– the job is standardized , the flow of work is regular , and break downs
are few or if many consistent.
Performance Appraisal (PA)
– is the process of determining & communicating to an employee how he is
performing the job.
– evaluating employee’s performance of the job assigned. the formal evaluation
of an employee performance.
– is used to determine the extent to which an employee is performing the job
effectively.
– provides highly useful information for making decisions about the employee &
the organization.
– It helps:
• To determine who shall receive merit increases.
• To determine training needs
• To identify employee to be transferred.
• To provide adequate feedback to each individuals for his performance.
• To improve or change behavior toward some more effective working habits.
• To provide useful information & data for the manager to judge the future job assignment
of employee.
• To improve the efficiency of an organization through improved work performance.
• To reduce favoritism in making managerial decision.
– Performance is a result of employee’s efforts, abilities and role perception.
Objectives of PA
• to provide information towards strength &
weakness of employees in their job performance
– to improve performance by developing strength &
dealing with weakness.
• to provide data/ information for management for
judging future job assignments, promotions &
compensation.
• to help better allocation of Rs.
• To improve motivation by increased understanding
of goals, the means of attaining those goals & the
rewards associated with the achievement.
Methods of PA
• There are different methods to carryout PA. Managers
use a variety of methods to formally appraise employee
performance. Some of the methods are:
1. Ranking method
2. Person to person comparison
3. grading
4. Forced distribution system
5. Graphic Scales
6. Check List
7. Forced – choice description
8. Descriptive essay
9. Field review Method
10. Selection critical incidents
Ranking method:
– Places all employees in rank according to the job performance.
– The management normally selects some acceptable denominators on the basis of
which it ranks.
– In this method the element of subjectivity can’t be eliminated & it can’t indicate the
degree of difference between the first & the second employee, and so on.
Grading
– placing the worth of an employee in a system of grading, i.e. outstanding, excellent,
good, satisfactory, poor. And the employee is assigned the grade which best describes
his level of performance.
Person to person comparison
– Comparing the employees within the organization with some key people.
– The rater develops certain scales for each & every factor such as leadership,
dependability, initiative, drive, etc.
– This method is complex & limited in use.
Forced distribution system
– is a modified version of grading system.
– is in which certain percentage of marks are assigned for each grade
– The appraiser is forced to put individuals in predetermined range of scale like
outstanding, above average, below average & poor.
Graphic Scales
–is in which numerical values are assigned to points on scale, unsatisfactory
may be assigned the value of 1, while excellent may be given the value of 5.
–The chart that presents the list of qualities of the range of degrees for each
quality.
–is easy to interpret but difficult to establish its true validity.
Check List
–is in which various statements are made describing various types of behavior
for particular factor for the job. Each statement has the scale value & the rater
is asked to list out the statements which describes the rates at best,
afterwards the statements and their values are averaged.
–responded by “ yes” or “ No”
–the appraiser is hardly evaluate employee performance, rather simply report
the fact.
Forced – choice description
–is in which the rater is forced to choose among several descriptive statements
which appears favorable or equality favorable.
–The questions are stated & don’t give scope to the rates to use his bias.
Descriptive essay
– is in which the evaluator are required to write essays about the strong & weak points of
evacuees.
– is used to supplement precise gating given to other performance evaluation methods.
– Its limitation is the evaluators may have unequal skill in writing.
Field review Method
– is in which HR department interviews the line supervisor about their subordinates.
– the supervisors are required to provide information about the performance of their
subordinated.
– HR department takes detailed note of the opinion of superior about their subordinates & place
these notes in the respective personnel folders of employee & later can be used to rate
employees.
Selection critical incidents
– A method in which certain key factors or acts of behavior that makes the difference between
success & failure are identified.
– A supervisor obtains a list of all critical factors and evaluated the employee’s performance
according to these factors.
– Critical incidents are converted in to scales, and employee’s performance is compared in the light
of this critical factors.
– During evaluation session, the supervisors will discuss these critical incidents with subordinates.
– Major problem is the supervisor & other managers may not be around when the employee did
something.
Performance appraisal processes
They are steps to be followed during the evaluation of workers
performance.

1. Establishing performance Standards

2. Communication of Standards to employees
3. Measurement of the actual performance
4. Comparison of the actual performance with the established
standards
5. Communication of the results
6. Corrective actions

Establishing performance Standards

– Performance Standards are developed at the time of developing job
descriptions & job specifications. They should be clear, precise &
objective oriented.
Communication of Standards to employees
– Performance standards should be communicated to all the concerned employees, unless the
employee are aware of the standards, they will not be in a position to meet them.
Measurement of the actual performance
– is in which the actual performance of employees noted & the information about the employee’s
performance is collected through personal observation, written report, oral report, etc…
Comparison of the actual performance with that of the standards
– is used to identify the most promising employees who have the potential for growth &
advancement.
– Objective & impartial competition of actual performance with the standard performance is
carried out .
Communication of the results
– Results have to be communicated to the concerned employees & discussions are held with them
to identify their strengths & weaknesses and also to identify the difficulties in carrying out their
activities.
Corrective actions
– If there are any shortfalls in the performance of the employees the management along with the
concerned employee should identify the reasons of the shortfalls.
– After the reasons are properly identified, the ways & means of overcoming these difficulties are
devised & implemented.
Who does the appraisal?
• In most cases the immediate supervisor does the appraisal.
But an organization can use different appraisers.
• Appraisal could be
– group appraisal
– peer appraisal &
– self appraisal
Who Conducts Appraisals?
– Supervisors rating their employees
– Employees rating their superiors
– Team members rating each other
– Employees rating themselves
– Outside sources rating employees
– A variety of parties providing multisource, or 360-degree,
feedback
Problems in PA
Some of the problems of PA are
– Rater’s lack of knowledge, experience & skill,
– rating an employee based on an overall impression resulting
from one or few incidents, bad or good and without taking into
account the whole performance during the evaluation period,
– providing a rating of average or around the midpoint for all
qualities,
– rating influenced by the most recent behaviors,
– allowing past performance of appraisal rating to unjustly
influence current ratings,
– rater’s ineffectiveness in observing & documenting
performance, and
– vagueness of the criteria & standards of performance.
 Promotion, Transfer, Separation & layoffs

Promotion
– is the advancement of an employee to a better job.
– is a reward for efficiency.
– characteristics of ‘better job' to which an employee seeks promotion - for
• greater responsibilities ,
• higher opportunities/challenges and responsibilities,
• more prestige or status,
• greater skill,
• increased rate of pay or salary,
• better hours of work or
• better locations or working conditions , facilities,…
– way of recognizing & developing the abilities of employees within the
organization instead of filling skilled and responsible positions from outside.
– If the job doesn’t involve greater skill or responsibilities & high pay, it should not
be considered as promotion.
– should be distinguished from transfer .
Types of Promotion
• Dry Promotion
– where a person is moved to a higher level job without increase in pay.
• Up grading
– means elevating the place of the job in the organizational hierarchy (a better title is given
now) or including the job in higher grade (minor enhancement in pay in tune with the limits
imposed within a particular grade).
– refers to a practice related to promotion, but it amounts to a small scale advance in status.
– is the movement of an employee to a more responsible job within the same occupational
unit & with a corresponding increases in pay.
• Vertical promotion
– are made under which employees are promoted from one rank to the next rank in the same
department
• Horizontal promotion
– are made under which employees are promoted from one rank to the next rank in other
department
• Promotion that provides additional privileges, comfort, & Prestige
– is a reward for long experience
– May be little working hour , less attendance
– No additional responsibility
– Without decreasing payment and benefits
Advantages of Promotion
– has powerful motivational value.
– It forces an employee to use his knowledge, skills and
abilities fully and become eligible for vertical growth.
– It inspires employees to compete and get ahead of others.
– paves the way for employee self-development.
– It encourages employees royalty and commitment to their
jobs and the organization.
– Interest in training and development programs would
improve.
– The organization would be able to utilize the skills and
abilities of its personnel more effectively.
Bases of Promotion
– Merit-based promotions
– Seniority-based promotions
Merit-based promotions…….
– occur when an employee is promoted because of superior performance in the current
job.
– Merit here denotes an individual's knowledge, skills, abilities and efficiency as measured
from his educational qualifications, experience, training and past employment record.
• Advantages
– motivates employees to work hard, improve their knowledge, acquire new skills and
contribute to organizational efficiency.
– helps the employer to focus attention on talented people, recognize and reward their
meritorious contributions in an appropriate way.
– also inspires other employees to improve their standards of performance through active
participation in all developmental initiatives undertaken by the employer (training,
executive development, etc.)
• Disadvantages
– It is not easy to measure merit.
– When young employees get ahead of other senior employees in an organization (based
on superior performance), frustration and discontentment may spread among the ranks.
They may feel insecure and may even quit the organization.
– Also, past performance may not guarantee future success of an employee. Good
performance in one job is no guarantee of good performance in another (as a
supervisor).
Seniority-based promotions
– Seniority refers to the relative length of service in the same organization.
– It is easy to measure the length of service and judge the seniority.
– There is no scope for favoritism, discrimination and subjective judgment.
– Everyone is sure of getting the same, one day.
• Limitations
– The assumption that the employees learn more with length of service is not valid
– It de motivates the young and more competent employees and results in greater
employee turnover.
– It kills the zeal and interest to develop, as everybody will be promoted without
showing any all-round growth or promise.
– Judging the seniority, though it seems to be easy in a theoretical sense, is highly
difficult in practice as the problems like
• job seniority,
• company seniority,
• zonal/regional seniority,
• service in different organizations,
• experience as apprentice trainee, trainee, researcher, length of service not only
by days but by hours and minutes will crop up.
Transfer
– the movement of an employee from one job to another on the same
occupational level of wage/ salary.
– No appreciable increase or decrease in duties and responsibilities
involved but there may be a change in their specific nature and in
working conditions.
– is the lateral movement of employees from one position, division,
department or unit to another.
– does not involve any significant change in compensation, duties
responsibilities or even status.
– is with the same level of hierarchy, requiring similar skills, involving
approximately same level of responsibility, same status and same
level of pay.
– Some transfers entail a decrease in job duties and especially in pay, and
called downgrading or bumping.
• It is more frequently used to protect employment opportunities for employees
displaced from higher rated jobs.
• It is moving to less desirable jobs.
Purposes of Transfer
– To meet the organizational requirements
– To satisfy the employee needs
– To utilize employees better
– To make the employee more versatile
– To adjust the workforce… less work to more
work.
– To provide relief for employees
– To reduce conflicts
– To punish employees
Types of Transfers
– Production transfers
• For the company need
• Transfers caused due to changes in production.
– Replacement transfers
• Transfers caused due to replacement of an employee working on the same
job for a long time.
– Rotation transfers
– Transfers initiated to increase the versatility of employees
– Shift transfers
• Transfers of an employee from one shift to another.
– Remedial transfers/personal transfer
• Made to meet needs of employees
• Transfers initiated to correct the wrong placements/primary concern of
employees
– Penal transfer
• Transfers initiated as a punishment for in disciplinary action of employees
Benefits of Transfers
– Improve employee skills
– Reduce monotony, boredom
– Remedy faulty placement decisions
– Prepare the employee for challenging assignments in future
– Stabilize changing work requirements in different
departments/ locations
– Improve employee satisfaction and morale
– Improve employer-employee relations
Limitations of Transfers
– Inconvenient to employees who do not want to move
– Employees may or may not fit in the new
location/department
– Shifting of experienced hands may affect productivity
– Discriminatory transfers may affect employee morale.
Separation/ employee separation
– the discontinuation of the relation between employee & the employer.
– occurs when an employee ceases to be a member of an organization.
– The turnover rate is a measure of the rate at which employees leave the firm.
– can and should be managed. Managing employee separations requires preparation
& planning.
– Separation can be initiated by
• the employers such as
– mandatory retirement
– dismissal
– layoff
• the employees such as
– resignation
– voluntary retirement
– quit
• Agreement
– when the contract ends; or
– they can also be caused by things outside the will of both the employer & the employee (accidents,
death)
Causes for separation
• Causes for separation of employee from the organization mainly are
– retirement; layoff; dismissal; permanent disability; resignation; quit; outplacement
The Costs of Employee Separations
• Recruitment Costs
– Advertising; Campus visits; Recruiter time; Search firm fees
• Selection Costs
– Interviewing; Testing; Reference checks; Relocation
• Training Costs
– Orientation; Direct training costs; Trainer’s time; Lost productivity
during training
• Separation Costs
– Separation pay; Benefits; Unemployment insurance cost; Exit
interview; Outplacement; Vacant position
The Benefits of Employee Separations
– Reduced Labor Costs;
– Replacement of Poor Performers;
– Increased Innovation;
– The Opportunity for Greater Diversity
Types of employee Separations
1. Voluntary separations
2. Involuntary separations
•  Voluntary separations
– initiated by the employee.
– occur when an employee decides, for personal or professional reasons, to end the relationship
with the employer.
– can be either avoidable or unavoidable.
– are such as: Retirement, quits,…
• Involuntary separations
– initiated by the employer.
– occurs when management decides to terminate its relationship with an employee
– are the result of very serious and painful decisions that can have a profound effect on the
entire organization and especially on the employee who loses his or her job.
– To protect themselves against legal challenges by former employees, employers must manage
involuntary separations very carefully with a well-documented paper trail.
–  due to
• economic necessity or
• a poor fit between the employee and the organization.
– are such as layoffs, discharge,…
Layoff/ Layoffs
– is forced reduction of the number of employees.
– occurs when there is lack of business or budget curtailments/ shortage
– most frequent type of separation of employees from the employed workforce.
– doesn’t necessarily involves a permanent separation from the payroll.
• laid off employees normally expect to be rehired by their employer when conditions improve.
– are a means for an organization to cut costs.
– can affect the morale of the organization’s remaining employees, who may fear losing
their jobs in the future.
– Investors may be affected by layoffs as well.
– unlike quits, retirements or deaths
Quits
– refers to the voluntary movement of the worthier from the organization.
• health problem resignation
– some employers have been using pay incentives to encourage employees to quit
voluntarily.
– Employers use these voluntary severance plans, or buyouts, to reduce the size of their
workforce while avoiding the negative factors associated with a layoff.
– The pay incentive may amount to a lump-sum cash payment of six months to two years
of salary, depending on the employee’s tenure with the company and the plan’s design
Retirements
– differs from a quit
• b/c a retirement usually occurs at the end of an employee’s
career…..but a quit can occur at any time.
• b/c retirements usually result in the individual receiving
retirement benefits from the organization.
• b/c the organization normally plans retirements in
advance…..Quits are much more difficult to plan for.
Discharges
– takes place when management decides that there is a
poor fit between an employee and the organization.
– is a result of either poor performance or the
employee’s failure to change some unacceptable
behavior that management has tried repeatedly to
correct.
Employment Relationships
• Employment relation is one of the important areas in HRM.
• mainly concerns with the relationships existing between
employees & employers.
• The contents of employer-employee relations are expressed
in employment contract which may include elements such as
– amount & method of payment
– hours of work
– holidays & holiday pay
– provisions for sickness, injury, and entitlement to pay
– terms & conditions of pensions rights
– disciplinary rules & procedures
– institutional rights of inions & management
– terms and conditions of termination of the contract
– enforcement & administration of agreements, and others
The three principal actors in employee relations are
– employee,
– employer and
– the government
These parties are represented by other bodies such
as
– the labor union,
– manager/ employer association &
– specialized government unit
The three elements of the subject of employee relations are
• Collective bargaining
– A two-way negotiation process between employees and employers to reach an agreement on
matters of employment.
– Its successful end result is collective agreement i.e. binding document governing employee
relations during a specified period of time.
• grievance (complaint) handling
– employees should have established grievance procedures and also known methods of processing
grievances.
– Grievance procedure consists of an orderly series of steps followed to resolve disputes.
– employees should know where they stand in matters pertaining to the justice & injustice of their
treatment.
• Disciplinary action
– refers to the application of penalties that lead to the inhibition of undesired behavior.
– Among the penalties available are
• oral reprimand / warning;
• written reprimand;
• loss of privileges;
• fines;
• layoff;
• demotion;
• suspension, &
• dismissal
Major principles (guides ) of staffing
1. the objective of staffing
– to ensure that the organization roles are filled by those qualified employees who are able & willing to
occupy them.
2. Staffing
– The clearer the definition of organization roles & their human requirements, and the better the techniques of
manager appraisal & training employed, the higher the managerial quality.
3. Job definition
– The more precisely the results expected of manager are identified, the more the dimensions of their positions
can be defined.
4. open competition
– The more an enterprise is committed to the assurance of quality management, the more it will encourage
open competition among all candidates of management position.
5. management training & development
– The more the management training & development are integrated with management process & enterprise
objectives, the more effective the development programs and activities will be.
6. training objectives
– The more precisely the training objectives are stated, the more likely are the chances of achieving them.
7. Continuing development
– The more an enterprise is committed to managerial excellence, the more it requires that the managers
practice continuing self-development.
The End