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  • Foundation of Human Resource Management

  • Human Resource Management

    PREFACE

    The text of the Human Resource Management has been written with the basic

    objective of introducing and familiarizing students with Human Resource

    managements concepts that help them develop their knowledge base and

    understand various facets of HRM. This book covers important concepts and

    information that begins with introducing the subject in the module-1 followed by

    Module II in which functions of HR Department are elaborated that makes one

    understand how an employee is selected in an organization by throwing light upon

    fundamentals of recruitment and selection which also covers areas such as Job

    Analysis, Job description, Job specification, Recruitment, Selection, Placement and

    Induction and socialization, Training and Development Training Process & Methodology Need and objectives Training Procedure Methods of Training Tools and Aids Evolution of training Programs.

    Module III , IV and V discuss various functions of Human Resource Department

    such as Compensation, Maintenance Integration and Audit & Control. This book

    discusses various contemporary issues of HR department by focusing on Job

    evaluation, Merit rating, Methods of wage payment, Incentive Compensation Types, Advantages, perquisites, Wage Policy in India - Minimum Wage, Fair

    Wage, Living Wage .

    The Human Resource Management is an ever evolving field and this book alludes

    various concepts of this field such that students are able to relate to the basics

    concepts of HRM and get an insight on the role of an HR manager and diverse

    activities involved in this discipline.

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    Brief Table of Contents

    Chapter no. Title

    CHAPTER 1 HUMAN RESOURCE MANAGEMENT- INTRODUCTION

    CHAPTER 2 JOB ANALYSIS, JOB DESCRIPTION AND JOB

    SPECIFICATION

    CHAPTER 3 RECRUITMENT AND SELECTION

    CHAPTER 4 INDUCTION, SOCILIZATION AND PLACEMENT

    CHAPTER 5 TRAINING AND DEVELOPMENT

    CHAPTER 6 CAREER PLANNING AND CAREER DEVELOPMENT

    CHAPTER 7 JOB EVALUATION AND COMPENSATION

    CHAPTER 8 WAGE AND INCENTIVE COMPENSATION SCHEMES

    CHAPTER 9 EMPLOYEE WELFARE , FRINGE BENEFITS AND SAFETY

    & ACCIDENT PREVENTION

    CHAPTER 10 ADDRESSING EMPLOYEE GRIEVANCE AND DISCIPLINE

    CHAPTER 11 PERFORMANCE APPRAISAL

    CHAPTER 12 HUMAN RESOURCE INFORMATION SYSTEM

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    Chapter-1 Introduction to Human Resource Management

    After reading this chapter, you will be able to understand:

    1. Meaning and evolution of Human Resource Management

    2. Objectives and Functions of HRM

    3. Difference between HR and Personnel Management

    4. Structure of HR department

    1.0 Introduction Every organization is essentially a combination of physical and human resources.

    Physical resources refer to materials, money and machines pre-arranged by the

    organization for production or trade. Human resources, on the other hand, refer to

    the knowledge, education, skills, training and proficiency of the members of the

    organization. All organizational resources are important for achieving the

    objectives of an organization. In fact, the effectiveness of an organization lies in

    the judicious blending of the two resources to achieve optimum competency.

    However, for a long time, it was felt that the efficient utilization of physical

    resources was primary for developing organization. This was so because the

    acquisition of physical resources resulted in a huge outflow of funds and those

    assets carried a definite value. On the contrary, it was felt that hiring employees

    never cost anything substantial for a firm and it was also quite easy to replace

    them. This made human resource less important for employers. But, in the past

    decade, employers have realized that intellectual capital is critical to business

    success. The main reasons for this change are due to the understanding that

    1. Product innovation and marketing strategy, which are crucial for market

    survival and growth in a competitive environment, are possible only when a

    good and creative workforce is present.

    2. The challenge, opportunities and even disputes of creating and managing

    organizations arise mostly from people-centered problems.

    3. People are alike and they cannot be treated identically. They differ

    physically and psychologically. These difference require individual

    attention in order to achieve the optimum productivity.

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    1.2 MEANING AND DEFINITION

    Human Resource Management (HRM) is a management function that managers

    recruit, select, train and develop members for an organization. HRM is concerned

    with the peoples dimension in the organizations. We quote three definitions on HRM. But before quoting the definitions, it is useful

    to point out the essentials which must find their place in any definition.

    The core points of HRM are:

    1. Organizations are not mere bricks, mortar, machineries or inventories. They

    are people. It is the people who staff and manage organizations.

    2. HRM involves the applications of management functions and principles. The

    functions and principles are applied to acquisitioning, developing and

    maintaining, and remunerating the employees in the organization.

    3. Decisions relating to employees must be integrated. Decisions on different

    aspects of employees must be consistent with other human resource

    decisions.

    4. Decisions made must influence the effectiveness of the organization.

    Effectiveness of an organization must result in betterment of the services to

    the customers in the form of high-quality products supplied at reasonable

    cost.

    5. HRM functions are not confined to business establishments only. They are

    applicable to non-business organizations too, such as education, health care,

    recreation, and the like.

    The following three definitions collectively cover all the five core points:

    1. a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organization and the

    employees to achieve their objective.

    2. . Is concerned with the people dimensions in management. Since every organization is made of people, acquiring their services, developing their

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    skills, motivating them to higher levels performance and ensuring that

    they continue to maintain their commitment to the organization are

    essential to achieving the organizational objectives. This is true,

    regardless of the type of organization government, business, education, health, recreation, or social action.

    3. 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,

    organizational, and social objectives are accomplished.

    Thus, HRM refers to a set of programs, functions and activities designed and

    carried out in order to maximize both employee as well as organizational

    effectiveness.

    1.3 EVOLUTION OF HRM

    HRM, a relatively new term, engaged during the 1970s. Many people continue to

    refer to the discipline by its order, more traditional titles, such as personnel

    management or personnel administration.

    The trend is changing. The term now days used in industry circles is HRM.

    Coming to evolution of HRM as a subject, it may be stated that concern for the

    welfare of workers in the management of business enterprises has been in

    existence since ages. Kautilyas Arthashastra states that there existed a sound base for systematic management of resources during as early as the 4

    th century BC. The

    government then took an active interest in the operation of public and private

    sector enterprises and provided systematic procedures for regulating employer-

    employee relationships.

    Elsewhere, human resources in organizations received the managements attention much earlier. As early as in 1800 BC itself, minimum wages rate and incentive wages plan were included in Babylonian Code of Hammurai. Experts of HRM in our country have tried to chronicle the growth of the subject

    only since the 1920s. this was the period when state intervention to protect the

    interests of workers felt necessary because of the difficult conditions which

    followed the First World War, and the emergence of trade unions. The Royal

    Commission (1931) recommended the appointments of labour-welfare officers to

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    deal with the selection of workers and to settle their grievances. The Factories Act,

    1948, made appointments of welfare officers compulsory in industrial

    establishments employing 500 or more workers each.

    The aftermath of the Second World War and the countrys political independence witnessed increased awareness and exceptions of workers. During the 1960s, the

    personnel function began to expand the welfare aspects, with labour welfare, IR

    and personnel administration integrating into the emerging profession called

    personnel management (PM). Simultaneously, the massive thrust given to the

    heavy industry in the context of planned economic development, particularly since

    the Second Five Year Plan and the accelerated growth of public sector in the

    national economy resulted in a shift in focus towards professionalization of

    management.

    In 1990s, a shift in professional values was discernible. It shifted from a concern

    for welfare to a focus on efficiency. In the 1980s, professionals began to talk about

    new technologies, HRM challenges and HRD.

    In the 1990s, the emphasis shifted to human values and productivity through

    people. Reflecting this trend, the American Society for Personnel Administration

    (ASPA) was renamed as the Society for Human Resources Management (SHRM).

    Thus, beginning in 1920s, the subject HRM has grown in to a matured profession.

    Below table shows the evolution of HRM.

    1.4 SCOPE OF HRM

    The scope of HRM is indeed vast. All major activities in the working of a worker

    from the time of his or her entry into an organization until he or she leaves come

    under the preview of HRM. Specifically, the activities included are HR planning, job analysis and design, recruitment and selection, orientation and placement,

    training and development, performance appraisal and job evaluation, employee and

    executive remuneration, motivation and communication, welfare, safety and

    health, industrial relations (IR) and the like. For sake of convenience, we can

    categorize all these functions into four objectives:

    1.5 HRM Objective and Function

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    HRM Objective Supporting Functions

    1. Societal Objectives 1. Legal compliance

    2. Benefits

    3. Union Management Relations

    2. Organizational Objectives 1. Human Resource Planning

    2. Employee Relations

    3. Selection

    4. Training and development

    5. Appraisal

    6. Placement

    7. Assessment

    3. Functional Objectives 1. Appraisal

    2. Placement

    3. Assessment

    4. Personal Objectives 1. Training and development

    2. Appraisal

    3. Placement 4. Compensation

    5. Assessment

    1.6 THE SEMANTICS

    As in any discipline, there is the problem of semantics in HRM, too. First, we have

    two terms, namely, personnel management (PM) and HRM. Between these two

    terms is a basic difference, and it is useful as to what it is.

    HRM differs from PM both in scope and orientation. HRM views people as an

    important source or asset to be used for the benefit of organization, employees and

    the society. It is emerging as a distinct philosophy of management aiming at

    policies that promote mutuality mutual goals, mutual respect, mutual rewards and mutual responsibilities. The belief is that policies of mutuality will elicit

    commitment which, in turn, will yield both better economic performance and

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    greater human resource development (HRM). Though a distinct philosophy, HRM

    cannot be treated in isolation. It is being treated into the overall strategic

    management of business. Further, HRM represents the latest term in the evolution

    of the subject. The year 1990 was a turning point in this evolution. The American

    society for personnel administration (ASPA), the largest professional association in

    this field of management, changed its name to the society for human resource

    management (SHRM). Since then, the expression is gradually replacing the

    hackneyed term personnel management.

    1.7 HRM AND PERSONNEL MANAGEMENT

    The difference between HRM and PM is a subject of discussion amongst HRM

    experts. They do not hold identical views about similarities and dissimilarities

    between HRM and PM.

    According to Lowry, PM and HRM are the successive stages of the same concept without any differences in the concept. In his words, Human Resource Management is just the continuing process of personnel management it is not

    different.

    1.7.1 HR Management vs Personnel Management

    While digging for the difference between Human Resources Management and

    Personnel Management, you are most likely going to get very divergent views,

    depending on which sphere of experts you question. While some strongly affirm

    that there is no difference between the two, others will recognize the variance, but

    will still acknowledge the unmistakable similarities. In lay terms however, theres a general tendency to use the terms interchangeably.

    The difference, when acknowledged, between HR and Personnel, is often depicted

    as philosophical. Personnel management encompasses more administrative

    disciplines of payroll issues, employment law compliance and all other related

    tasks. On the other hand, HR is more concerned with the management of a

    workforce, as this is one of the key resources that drive the day-to-day operations

    of a company; hence its success.

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    Whenever a distinction is made between Human Resources and Personnel

    management, Human Resources is always represented to a broader extent than

    Personnel management. Human Resources, it is said, embodies and elaborates

    tasks of Personnel management, and at the same time, creates and develops teams

    of employees for the advantage of the company. One of HRs primary goals is to provide a suitable environment for employees to fully utilize their skills, and work at maximum efficiency levels.

    The tasks that are common within Personnel management include the traditional, routine duties; thus, it is generally described as reactive, i.e. only responding to demands as they arise. Human resources, on the other hand, involve continuous

    innovation and strategizing to manage a companys workforce more efficiently. It is, therefore, generally considered proactive. Theres an ongoing development of policies, functions and skill assessments all aimed at improving the companys workforce.

    While performance management is always considered to be influenced by the organizations, HR is generally considers as an integral part of the organizational functions. Personnel Management duties are solely the domain of the personnel

    department. However, with regard to HR, most of the companys senior level employees (managers) are somehow involved, and key goal may be to engage the managers in the skills development processes needed to accomplish personnel related duties.

    In terms of performance, motivation and rewards, Personnel Management typically

    endeavors to reward and motivate employees with salaries, bonuses, compensation

    and a standard paid annual leave in order to derive employee satisfaction. For HR,

    the primary motivators are seen as job creativity, work groups and efficient

    strategies to meet challenges.

    To summarize, Personnel management is more concerned with payroll and similar

    tasks, while HR is concerned with the overall management of a companys workforce. Personnel tasks are creative, while HR tasks are generally proactive,

    and continuous. Personnel Management is considered independent from

    organizational influence, while HR is dependent on input from some employees,

    like senior management.

    1.7.2 Similarities between HRM and PM

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    The basic elements common to HRM and PM strategy:

    Business Strategy Both form the basis for the evolution of HR and PM

    strategy.

    Matching People Choosing the right people for the right job and developing

    them to achieve their maximum level of competence remain the priority of

    both HRM and PM.

    Prominence of Line Authority HRM, similar to PM, recognizes that the

    primary responsibility for managing people stays with line managers.

    Identical Core Elements Techniques like selection, traning, development,

    compensation and performance management are common to both HRM and

    PM.

    Emphasis on Communication and Participation HRM and PM provide

    equal importance to the communication process and workers participation in decision making.

    1.8 ORGANISATION OF HR DEPARTMENT

    Two issues become relevant in a discussion on organization of an HR Department.

    They are

    (i) place of the HR Department in the overall set-up and

    (ii) Composition of the HR department itself.

    Status of the HR Department in the total organizational structure depends on

    whether a unit is small or large. In most of the small organizations, there is no

    separate department to co-ordinate the activities relating to personnel. In fact, there

    may not be any personnel managers at all. Services of outsiders who specialize in

    maintaining accounts and records relating to provident fund, pension and other

    statutory requirements are retained for free. Alternatively, a low places employee

    may be entrusted with the task of attending to these functions. Figure shows a

    structure of this type. In Fact, it was this arrangement which was followed in the

    past, irrespective of the size of the organization. Earlier, personnel departments

    were called health and happiness departments. The people assigned to deal with personnel issues were often individuals who were past their prime. The personnel

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    department was seems as a place where the lesser productive employees could be

    places with minimal damage to the organizations ongoing operations. Individuals in the personnel department were perceived as those responsible for planning company picnics, vacation schedules and retirement parties. Personnel, as an activity, were seen as a necessary but unimportant part of the organization. Fortunately, things have changed for the better and the status of the personnel department has improved enormously over the years.

    Owner/Manager

    Production Manager

    Sales Manager Office Manager

    Accountant

    Personnel Assistant

    Fig. HRM in a small-scale unit

    A large scale unit will have a manager/director heading the HR department. His or

    her status will be equal to that of any executive. Figure given below shows this

    structure. This arrangement holds good when the company has a single unit. Where

    the company has multiple plans located in different parts of the country, there may

    be a centralized HR/personnel department at the mail or registered office and each

    plant will have separate HR/personnel departments. Routine activities relating to

    each plant are handled by the HR/personnel department attached to the work,

    whereas the broad policies, matters concerning executives and the like are handled

    by the central department. This is the case with conglomerates as BHEL, ITI and

    L&T.

    Chairman and Managing Director

    Director Production

    Director Finance Director

    Personnel/HRM

    Director Marketing Director R&D

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    Fig. HRM in large scale unit

    Coming to the composition of the HR Department, it may be stated that it depends on the scale of operations and attitude of the top management towards its personnel. However, a typical HR department is headed by a Director, under who

    are Managers Personnel Manager-Administrative, Manager-HRD and Manager- Industrial Relations. The department will grow in size and importance when new demands are places on it by the top management.

    Owner/Manager

    Manager Personnel

    Manager Administration

    Manager HRD

    Manager IR

    Human Resource PR

    Planning

    Appraisal

    Hiring Canteen Traning and Development

    Grivance Handling Medical

    Compensation Welfare

    Transport

    Legal

    1.9 DUTIES OF HUMAN RESOURCE MANAGERS

    Basically Human resource manager caries out three distinct functions:

    1. A line function: The human resource manager directs the activities of the

    people in his or her own departments and in related services areas (like the

    plant cafeteria). In other words, he or she exerts line authority within the HR

    department. While they generally cant wield line authority outside, they are

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    likely to exert implied authority. This is because line manager know the

    human resource manager has top managements ear in areas like testing and affirmative action.

    2. A coordinative function: Human resource manager also coordinate

    personnel activities, a duty often referred to as functional authority (or

    functional control). Here he or she acts as the right arm of the top executive to ensure that line manager are implementing the firms human resource policies and practices (for example, adhering to its sexual

    harassment policies).

    3. Staff (assist and advise) functions: Assisting and advising line managers is

    the heart of the human resource managers job. He or she advises the CEO to

    better understand the personnel aspects of the companys strategic options. HR assists in hiring, training, evaluating, rewarding, counseling, promoting,

    and firing employees. It administers the various benefit programs (health and

    accident insurance, retirement, vacation, and so on).

    1.10 Quiz

    Complete all the review questions listed here to test your

    understanding of the topics and concepts in this chapter

    1. Human Resource Management is primarily concerned with

    a) Sales

    b) Dimensions of people

    c) External environment

    d) Cost discipline

    2. Human Resource Management aims to maximize employees as well as

    organizational (a) Effectiveness

    (b) Economy

    (c) Efficiency

    (d) Performativity

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    3. Demand for human resources and management is created by

    a) Expansion of industry

    b) Shortage of labor

    c) Abundance of capital

    d) Consumer preferences

    4. Human Resource Management function does not involve

    a) Recruitment

    b) Selection

    c) Cost control

    d) Training

    5. Which one of the following becomes a creative factor in production?

    a) Land

    b) Capital

    c) Consumers

    d) Human Resources

    6. Quality- oriented organization primary concern centers around

    a) Coordination

    b) Communication

    c) Human Resources

    d) Discipline

    7. The term refers to the total knowledge, skills, creative

    abilities , talents and aptitudes of an organizations workforce as well as the values, attitudes and beliefs of the individuals involved.

    a) Human resource b) Human resource management

    c) Human resource planning d) Human relations

    8. Which of the given statement reflect the Relationship between HRM &

    Management? a) Both are same

    b) Management is one aspect of HRM

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    c) HRM is one aspect of Management

    d) No relationship exists

    9. The functions of Human resource management can be classified into two

    broad categories. Identify them.

    i. Managerial functions

    ii. Planning functions iii. Employment functions

    iv. Operative functions

    a) Only i and iii

    b) Only i and iv

    c) Only ii and iii

    d) Only iii and iv

    10.The human resource management functions aim at

    a) Ensuring that the human resources possess adequate capital, tool, equipment

    and material to perform the job successfully.

    b) Helping the organization deal with its employees in different stages of

    employment. c) Improving an organizations creditworthiness among financial institutions. d) None of the above.

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    CHAPTER-2- JOB ANALYSIS, JOB DESCRIPTION AND JOB

    SPECIFICATION

    Upon Completion of this chapter, you will be able to understand:

    1. Meaning, uses and techniques of Job Analysis

    2. Meaning and Content of Job Description

    3. Job Specification and its components

    2.1 JOB ANALYSIS

    Job Analysis is an essential prerequisite for the effective management of the human resource of an organization. It is about gathering relevant information about

    a job. It actually specifies the tasks involved and the factors that influence the

    performance of the job.

    As a process, it is capable of producing results with great practical relevance for

    human resource management. Job analysis has applications in almost all the HR

    activities of an organization. In reality, the job analysis process involves ascertaining what people do and understanding why and how they do it.

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    Job analysis is detailed and systematic study of jobs to know the nature and

    characteristics of people to be employed for each job.

    Job Analysis involves gathering dataabout observable job behaviors, and delineating the knowledge, skills, abilities, and other characteristics needed to

    perform the job

    Harvey - R.J

    The process of job analysis is essentially one of the data collection and then

    analyzing the data. It provides the analyst with basic data pertaining to specific

    jobs in terms of duties, responsibilities, skills, knowledge, degress of risk etc. This

    data may be classified as follows:

    1. Job identification

    2. Nature of the job

    3. Operations involved in doing the job

    4. Materials and equipments to be used in doing the job

    5. Personal attributes required to do the job e.g. education, traing, physical

    strength and mental capabilities etc. 6. Relation with other jobs.

    This information relating to a job which is thus classified , if examined carefully,

    would suggest that some information relates to the job and some concerns the the

    individual doing the job. The requirements of a job are known as Job Description

    and the qualities demaned from the job holder are termed as Job Specification.

    What job analysis is:

    It is a systematic method for gathering information

    It focuses on work behaviors, tasks, and outcomes

    It identifies the personal qualifications necessary to perform the job and the

    conditions under which work is performed

    It reports the job as it exists at the time of analysis; not as it was in the past

    nor as it exists in another organization

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    What job analysis is not:

    It is not an analysis of thought processes, attitudes, traits, or aptitudes

    It is not a time and motion study It is not an analysis of an individual position

    2.1.1Uses of Job Analysis

    The purpose of Job Analysis is to establish and document the 'job relatedness' of

    employment procedures. The employer use job analysis information to support

    several human resource management activities.

    Recruitment and Selection Job analysis provides information about what the job entails and what

    human characteristics are required to perform these activities. This

    information in the form of job description and job specifications, help

    managers decide what sot of people to recruit and hire.

    Compensation Job analysis information is indispensible for estimating the value of each job and its appropriate compensation. Compensation usually depends on the

    jobs required skill education level, safety hazards, degree of responsibility, and so on all factors you can access through job analysis.

    Training

    The job description lists the jobs specific duties and requisite skills- and therefore the training- that the job requires.

    Performance Appraisal A performance appraisal compares each employees actual performance with his or her performance standards. Doing so requires knowledge of the jobs duties and standards. Managers can use job analysis to find out what these duties and performance standards are.

    Safety and Health Job analysis can provide exact information about the nature and type of

    work conditions essential for an accident-free work environment. It can also

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    suggest the safety requirements for the job. The need for the safety training

    and safety apparatus can also be ascertained with the help of job analysis.

    Legal Requirements The job description is a vital document for an organization in legally and

    morally justifying its hiring practices, promotion policies, terminations,

    disciplinary actions, and grievance redressal procedures. In fact, it is a legal

    necessity for an organization to keep a job description statement for each

    position in the organization

    2.1.2Techniques of Data Collection in Job Analysis

    No matter what the methodology adopted for data collection in job analysis, the

    focus should be gathering information about the tasks associated with the job and

    desired human behavior at work. However the characteristics of the job, the

    purpose of the job, the purpose of the job analysis, and the desired quality of

    information are the factors that usually influence the decisions involving the

    selection of techniques for data collection.

    Data collection for job analysis is usually done at one or more levels. These levels

    are: (i) individual (ii) group, (iii) organizational and (iv) community. Further, the

    decision involving the selection of a specific technique is usually influenced by the

    factors such as the type of data to be collected, the methods of data collection, the

    source from which the data will be collected, and the manner of data analysis.

    The different methods of data collection are:

    Questionnaire Method Having employees fill out questionnaires to describe their job related duties

    and responsibilities is a popular way to obtain job analysis information. The

    major advantage of questionnaire is that it is the easiest and more efficient

    method to collect information from a large number of employees within a

    short period. Different types of questionnaire are structured questionnaire,

    structured checklist method, open ended questionnaire etc.

    Observation Method In this method, the job analyst closely observes the performance of the employee on the job. He record the various tasks performed by the employee

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    as a part of the job. This method is ideal for gathering first-hand information

    relating to working conditions, the physical activities involved in the job,

    and so on.

    Critical Incident Method A critical incident is a significant event that takes place in the job

    environment and forces the employee to respond in the form of performance

    or behavior. Critical incidents are considered as snapshots in the regular

    course of the job. The aim of this method is to gather relevant and behavior centered description of the job.

    Interview Method In this method, the job analyst asks the employee questions about t=various

    dimensions of the job. He then contacts the employees supervisors to get further information and also to verify the correctness of the information collected from the employee. While preparing the questions for interview the analyst must ensure that the questions are uncomplicated and realistic in nature.

    Dairy Maintenance Method In this method employee is asked to keep a record of all the activities

    performed by him as apart of the job analysis process. He should record the

    information in chronological order. Diary maintenance will enable the

    employee tom keep track of all the activities. This method ensures

    continuous and better employee involvement in the job analysis process.

    2.2 Job Description

    Job description is an organized factual statement of job contents in the form of

    duties and responsibilities of specific job. It aims at simplifying and standardizing

    the HR activities of an organization. The preparation of Job description is

    necessary before a vacancy is advertized. As the title indicated, the documents are

    descriptive in nature and constitute a record of job facts in an organized way.

    Job description document discloses what is to be done, how it is to be done and

    why it is to be done.

    The contents of job description have been discussed below:

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    1. Job Title: It is desirable that the job title should be short, definite and

    suggestive of the nature of the job. It identifies the nature of the job and

    its position in the organization.

    2. Job Location: It is necessary to give the location of the job. By location

    we mean the name of the department where the job under consideration

    exists.

    3. Job Summary: A short paragraph succinctly summarizing the tasks

    performed by the employee is helpful for the subsequent convenient

    identification of the job.

    4. Salary Range: List starting salary, mid-range, and high (maximum)

    salary for the position. It should also include information about how

    employees may be eligible for additional compensation (i.e., sales

    commissions, performance bonuses, annual raises, etc.)

    5. Duties to be performed: Each task performed should be written out and

    estimate made of the percentage of the time that is developed to the

    performance of each task. This is the most important phase of the job

    description and should be carefully prepared.

    6. Machines, tools and materials: The tools, machines, equipments and

    materials used in the performance of the job should also be included in

    the job description. It indicates the nature and the complexity of the job.

    7. Relation to other jobs: Clear cut relation of the job under consideration

    with other jobs in the organization will help to understand the nature of

    the job well

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    8. Nature of supervision: There are certain jobs, particularly unskilled jobs,

    which require intensive supervision, while other jobs requie less

    supervision, because people manning these positions are more committed

    to the achievement of organization goals. Nature of supervision must be

    given in the job description.

    9. Working environment: The working conditions, hazards and other

    characteristics of the physical surroundings within the working area

    should be described to help in subsequent interpretation of job

    evaluation.

    2.3 Job specification

    Job specification sets out the education, qualification, training, personal attributes

    and competencies a job holder requires top perform her or his job satisfactorily.

    The employee characteristics required for job may include physical, mental, social

    and behavior characteristics of job holders. The qualifications may include

    education, experience, skills and other background requirements for a job holder.

    Important components of job specification are listed below:

    1. Education and training A job specification states whether the jobs requires school-or college- level

    education. It mentions the technical or professional qualification

    requirements of the job holder. Finally, it specifies the minimum training

    requirements the job holder must have completed.

    2. Work Experience A job specification prescribes the work experience requirements for the job holder. And sometimes also the minimum experiences for effective

    performances.

    3. Skills and Competencies. Under this component head, a job specification states the types of skills

    necessary for the satisfactory performances of the job. It indicates the nature

    of skills required like computer skills, communication skills, technical skills,

    and statistical skills.

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    4. Physical Strength and Stamina

    If the job involves physical activities like lifting or moving heavy objects,

    the job specification also mentions the physical requirements of the job

    holder.

    5. Stress-Coping Ability

    When the nature of the job requires a lot of stress endurance and involves constant work pressure in the form of deadlines or night shifts, the stress

    management ability of the candidate should be mentioned.

    2.4 QUIZ:

    Complete all the review questions listed here to test your understanding of the

    topics and concepts in this chapter

    1. A written statement of main duties and responsibilities which a

    particular job entails is called a) Job Analysis b) Job Specification

    c) Job description

    d) Job Evaluation

    2. Which of the following is not the component of Job Specification-

    a) Skills and competences

    b) Job Location

    c) Work Experience

    d) Education and Training

    3. Which of the following is not the technique of data collection in job

    analysis

    a) Questionnaire Method

    b) Observation Method

    c) Ranking method

    d) Interview Method

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    4. Job Analysis benefits Human Resource Planning, recruitment and

    selection, compensation management and Performance appraisal.

    Identify the end results of a job analysis that form the basis for

    recruitment and selection.

    a) Job Description and Job Specification

    b) Job design and Job review

    c) Job description and job review

    d) Job design and Job specification

    5. Job analysis is the recording of all activities involved in a job and the

    skill and knowledge requirements of the performance of the job. What

    is it also known as? a) Job review or Job design

    b) Job review or Job Classification c) Job specification or Job description

    d) Job classification or Job specification

    6. is defined as a portrayal of the tasks, responsibilities,

    duties and functions of a job.

    a) Job specification b) Job Design

    c) Job analysis

    d) Job description

    7. is a complete list of competencies and qualifications

    required to match the job descriptions a) Job specification b) Job design

    c) Job analysis

    d) Job review

    8. Which of the following methods are generally used to collect and

    compile information on Critical incidents as part of job analysis using the critical incident technique?

    i) Technical Conference

    ii) Observation

    iii) Interviews

    iv) Questionnaires

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    a) (i) and (ii)

    b) (ii) and ( iii)

    c) (iii) and (iv)

    d) (i) and (iv)

    9. Which one of the following is not a behavioral specification in a job

    specification?

    a) Ability to make judgments

    b) Ability to undertake research

    c) Ability to interpret data

    d) Ability to be authoritative

    10. involves increasing the length and hence the

    operating time of each cycle of work for the job holder. It is a modern

    management technique in which different and continuous small cycles

    are integrated into one single cycle of operation.

    a) Job rotation

    b) Job enlargement

    c) Job sharing d) Job enrichment

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    CHAPTER-3 RECRUITMENT AND SELECTION

    Upon Completion of this chapter, you will be able to understand:

    1. Meaning of Recruitment and Selection

    2. Importance of Recruitment and Selection

    3. Methods of Recruitment

    4. Selection Process

    3.1 RECRUITMENT

    The human resources are the most important assets of an organization. The

    success or failure of an organization is largely dependent on the caliber of the

    people working therein. Without positive and creative contributions from people,

    organizations cannot progress and prosper. In order to achieve the goals or the

    activities of an organization, therefore, they need to recruit people with requisite

    skills, qualifications and experience. While doing so, they have to keep the present

    as well as the future requirements of the organization in mind.

    Recruitment is distinct from Employment and Selection. Once the required

    number and kind of human resources are determined, the management has to find

    the places where the required human resources are/will be available and also find

    the means of attracting them towards the organization before selecting suitable

    candidates for jobs. All this process is generally known as recruitment. Some

    people use the term Recruitment for employment. These two are not one and the same. Recruitment is only one of the steps in the entire employment process. Some others use the term recruitment for selection. These are not the same either.

    Technically speaking, the function of recruitment precedes the selection function

    and it includes only finding, developing the sources of prospective employees and

    attracting them to apply for jobs in an organization, whereas the selection is the

    process of finding out the most suitable candidate to the job out of the candidates

    attracted (i.e., recruited).Formal definition of recruitment would give clear cut idea

    about the function of recruitment.

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    3.1.1DEFINITIONS

    Recruitment is defined as, a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of

    an efficient workforce.

    Edwin B. Flippo defined recruitment as the process of searching for prospective employees and stimulating them to apply for jobs in the organization. Recruitment is a linking function-joining together those with jobs to fill and those seeking jobs. It is a joining process in that it tries to bring together job seekers and employer with a view to encourage the former to apply for a job with the latter.

    3.1.2 PURPOSES AND IMPORTANCE

    The general purpose of recruitment is to provide a pool of potentially qualified job

    candidates. The purpose is to:-

    Determine the present and future requirement of the organization in

    conjunction with it personnel- planning and job analysis activities.

    Increase the pool of job candidate at minimum cost.

    Help increases the success rate of the selection process by reducing the

    number of visibly overqualified job applicants.

    Help reduce the probably that job applicants, once recruited and selected,

    will leave the organization only after the short period of time.

    Meet the organizations legal and social obligations regarding the composition of it workforce.

    Begin identifying and preparing potential job applicant who will be

    appropriate candidates.

    Increases organizational and individual effectiveness in the short term and

    long term.

    Evaluate the effectiveness of various recruiting techniques and sources of all

    type of job applicants.

    Recruitment represents the first contact that a company makes with potential

    employees. It is through recruitment that many individuals will come to know a

    company, and eventually decide whether they wish to work for it. A well-planned

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    and well-managed recruiting effort will result in high-quality applicants, whereas,

    a haphazard and piecemeal effort will result in mediocre ones. High-quality

    employees cannot be selected when better candidates do not know of job openings,

    are not interested in working for the company and do not apply. The recruitment

    process should inform qualified individuals about employment opportunities,

    create a positive image of the company, provide enough information about the jobs

    so that applicants can make comparisons with their qualifications and interests, and

    generate enthusiasm among the best candidates so that they will apply for the

    vacant positions.

    3.1.3FACTORS AFFECTING RECRUITMENT The following are the 2 important factors affecting Recruitment:-

    A. INTERNAL FACTORS

    Recruiting policy

    Temporary and part-time employees

    Recruitment of local citizens

    Engagement of the company in HRP

    Companys size Cost of recruitment

    Companys growth and expansion

    2) EXTERNAL FACTORS

    Supply and Demand factors

    Unemployment Rate Labour-

    market conditions Political and

    legal considerations Social

    factors

    Economic factors

    Technological factors

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    3.1.4 CENTRALISED V/s DECENTRALISED RECRUITMENT

    Recruitment practices vary from one organization to another. Some

    organizations like commercial banks resort to centralized recruitment while some

    organizations like the Indian Railway resort to decentralized recruitment practices.

    Personnel department at the central office performs all the functions of recruitment

    in case of centralised recruitment and personnel departments at unit level/zonal

    level perform all the functions of recruitment concerning to the jobs of the

    respective unit or zone.

    MERITS OF CENTRALISED RECRUITMENT

    Average cost of recruitment per candidate/unit should be relatively less due

    to economies of scale.

    It would have more expertise available to it.

    It can ensure broad uniformity among human resources of various

    units/zones in respect of education, skill, knowledge, talent, etc.

    It would generally be above malpractices, abuse of powers, favouritism,

    bias, etc.

    It would facilitate interchangeability of staff among various units/zones.

    It enables the line managers of various units and zones to concentrate on

    their operational activities by relieving them from the recruiting functions.

    It enables the organization to have centralised selection procedure,

    promotional and transfer procedure, etc.

    It ensures the most effective and suitable placement to candidates.

    It enables centralised training programmes which further brings uniformity

    and minimizes average cost of staff.

    MERITS OF DECENTRALISED RECRUITMENT

    The unit concerned concentrates only on those sources/places wherein

    normally gets the suitable candidates. As such the cost of recruitment would

    be relatively less.

    The unit gets most suitable candidates as it is well aware of the requirements

    of the job regarding culture, traditional, family background aspects, local

    factors, social factors, etc.

    Units can recruit candidates as and when they are required without any

    delay.

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    The units would enjoy freedom in finding out, developing the sources, in

    selecting and employing the techniques to stimulate the candidates.

    The unit would relatively enjoy advantage about the availability of

    information, control and feedback and various functions/processes of

    recruitment.

    The unit would enjoy better familiarity and control over the employees it

    recruits rather than on employees selected by the central recruitment agency.

    Both the systems of recruitment would suffer from their own demerits. Hence,

    the management has to weigh both the merits and demerits of each system before

    making a final decision about centralizing or decentralizing the recruitment.

    3.1.5 SOURCES OF RECRUITMENT

    The sources of recruitment may be broadly divided into two categories: internal sources and external sources. Both have their own merits and demerits.

    Lets examine these.

    INTERNAL SOURCES

    Persons who are already working in an organization constitute the internal sources. Retrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources. Whenever any vacancy arises,

    someone from within the organization is upgraded, transferred, promoted or even

    demoted.

    A. PRESENT EMPLOYEES

    Promotions and transfer from among the present employee can be good sources of

    recruitment. Promotion to higher positions has several advantages are:-

    It is good public relations

    It build morale

    It encourages competent individuals

    It improve the probability of a good selection

    When carefully planned, promoting

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    B. EMPLOYEE REFERRALS

    This can be good sources of internal recruitment. Employee can develop good

    prospects for their families and friends by acquainting them with the company,

    furnishing cards of introduction, and even encouraging them to apply. There are

    some potential negative factors associated with employee referrals. They include

    the possibility of inbreeding, manifesting in groups of people quitting one firm and

    joining another. They carry with them the cultural practices of the previous firm.

    They from cliques of their own, demand unacceptable privileges and often threaten

    to quit if demand are not met.

    C. FORMER EMPLOYEES

    Former employee is also an internal source of applicants. Some retired employee

    may be willing to come back to work on apart time basis or may recommend

    someone who would be interested in working for the company. An advantage with

    the sources is that the performance of these people is already known

    D. PREVIOUS APPLICANTS

    Although not truly an internal source, those who have previously applied for job can be contacted by mail, a quick and inexpensive way to fill an unexpected

    opening. Although walk ins are likely to be more suitable for filling unskilled and semi- skilled jobs, some professional opening can be filled by applicants to previous jobs.

    EXTERNAL SOURCES

    External sources lie outside an organization. Here the organization can have the

    services of : (a) Employees working in other organizations; (b) Jobs aspirants

    registered with employment exchanges; (c) Students from reputed educational

    institutions; (d) Candidates referred by unions, friends, relatives and existing

    employees; (e) Candidates forwarded by search firms and contractors; (f)

    Candidates responding to the advertisements, issued by the organization; and (g)

    Unsolicited applications/ walk-ins.

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    A. PROFESSIONAL OR TRADE ASSOCIATIONS

    Many associations provide placement service for their member. These services

    may consist of compiling job seeker list and providing access to member during

    regional or national conventions. Further many associations publish or sponsor

    trade journals or magazines for their member. These publications often carry

    classified advertisement from employer interested in recruiting their members.

    B. ADVERTISEMENT

    These constitute a popular method of seeking recruits as many recruiters prefer

    advertisement because of their wide reach.

    A number of factor influence the response rate to advertisement. There are three

    important variables identification of the organization, labour market conditions, and the degree to which specific recruitments included in the advertisement.

    E. EMPLOYMENT EXCHANGES

    Employment exchanges have been set up all over the country in the deference to

    the provision of the employment exchange Act. 1959. The Act applies to all

    industrial establishments having 25 workers or more each. The Act requires the

    entire industrial establishment to notify the vacancies before they are filled. The

    major functions of the exchange are to increases the pool of the possible applicants

    and to do preliminary screening. Thus employment exchanges act as a link

    between the employers and the prospective employees. These offices are

    particularly useful in recruiting blue- collar, white- collar, and technical workers

    F. CAMPUS RECRUITMENT

    Collage, university, research laboratories, sports field and institute are fertile

    ground for recruiters, particularly the institutes. The Indian institute of

    management and the Indian institute of technology are on the top on list of avenues

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    for recruiters. In fact, in some companies, recruiters are bond to recruit a given

    number of candidates from these institutes every year. `

    G. WALK- INS, WRITE- INS AND TALK- INS

    The most common and least expensive approach for candidate is direct application

    in which job seeker submit unsolicited application letter or resumes Direct

    applications, can also provide a pool of potential employee to meet future need.

    From employees view point, walk- INS, are preferable methods of recruitment as

    they are free from the hassles associated with other method of recruitment.

    H. CONSULTANTS

    Ferguson associates, human recourse consultants, head hunter, batliboi and

    company, annalistic consultancy Bureau, aims management consultants and the

    search house are some among the numbers recruiting agencies.

    I. CONTRACTORS

    Contractors are used to recruit casual workers. The names of the workers are not

    entered in the company record and, to this extent, difficulties experienced in

    maintaining permanent workers are avoided.

    J. RADIO AND TELEVISION

    Radio and television are used but sparingly, and that too, by government

    department only. Companies in the private sector are hesitant to use the media

    because the high costs and also because they fear that such advertising will makes

    the companies look desperate and damage their conservative image.

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    K. GATE HIRINGS AND CONTRACTORS

    Gate hiring (where job seekers, generally blue collar employees, present themselves at the factory gate and offer their services on a daily basis), hiring

    through contractors, recruiting through word-of-mouth publicity are still in use despite the many possibilities for their misuse in the small scale sector in India.

    L. UNSOLICITES APPLICATNS/WALK-INS

    Companies generally receive unsolicited applications from job seekers at various points of time; the number of such applications depends on economic

    conditions, the image of the company and the job seekers perception of the types of jobs that might be available etc. Such applications are generally kept in a data bank and whenever a suitable vacancy arises, the company would intimate the candidates to apply through a formal channel. One important problem with this method is that job seekers generally apply to number of organizations and when

    they are actually required by the organizations, either they are already employed

    in other organizations or are not simply interested in the position.

    3.1.6 RECENT TRENDS IN RECRUITMENT

    OUTSOURCING

    The outsourcing firms help the organization by the initial screening of the

    candidates according to the needs of the organization and creating a suitable pool

    of talent for the final selection by the organization. Outsourcing firms develop their

    human resource pool by employing people for them and make available personnel

    to various companies as per their needs.

    POACHING/RAIDING

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    Buying talent (rather than developing it) is the latest mantra being followed by the organizations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different

    industry; the organization might be a competitor in the industry. A company can

    attract talent from another firm by offering attractive pay packages and other terms

    and conditions, better than the current employer of the candidate.

    E-RECRUITMENT

    Many big organizations use Internet as a source of recruitment. E- Recruitment is

    the use of technology to assist the recruitment process

    The two kinds of e- recruitment that an organization can use is

    o Job portals i.e. posting the position with the job description and the job specification on the job portal and also searching for the suitable resumes posted on the site corresponding to the opening in the organization.

    o Creating a complete online recruitment/application section in the

    companies own website

    3.1.7 RECRUITMENT STRATEGIES OF SOME COMPANIES

    HCL Technologies

    Internal recruitment: The IT major relies heavily on this model, which also saves huge cost for the company, at the same time ensuring that the

    talent pool remains intact.

    Campus hiring: Many of the business unit heads and senior people at HCL have been picked from the campuses of some of the best engineering,

    management and non-management colleges across the globe.

    Employee referrals: HCL finds this to be a reliable channel to reach out to its potential employees.

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    Social networking sites: At least 5-7% of its total recruiting is done through websites such as LinkedIn. This primarily includes much of senior-level

    hiring, and makes it easier for the hiring managers to target candidates with

    niche skills or for roles based in alien geographies.

    3.1.8 MERITS AND DEMERITS OF INTERNAL RECRUITMENT OR

    RECRUITING PEOPLE FROM WITHIN

    Merits Demerits

    1) Economical: The cost of

    recruiting internal candidates is

    minimal. No expenses are

    incurred on advertising.

    2) Suitable: The organization can

    pick the right candidates having

    the requisite skills. The candidate

    can choose a right vacancy where

    their talents can be fully utilized.

    3) Reliable: The organization has

    the knowledge about suitability of

    a candidate for a position.

    Known devils are better than unknown angels!

    4) Satisfying: A policy of

    preferring people from within

    offers regular promotional

    avenues for employees. It

    motivates them to work hard and

    earn promotions. They will work

    with loyalty commitment and

    enthusiasm.

    1) Limited Choice: The

    organization is forced to select

    candidates from a limited pool. It

    may have to sacrifice quality and

    settle down for less qualified

    candidates.

    2) Inbreeding: It discourages entry

    for talented people, available

    outside an organization. Existing

    employees may fail to behave in

    innovative ways and inject

    necessary dynamism to enterprise

    activities.

    3) Inefficiency: Promotions based

    on length of service rather than

    merit, may prove to be a blessing

    for inefficient candidate. They do

    not work hard and prove their

    worth.

    4) Bone of contention:

    Recruitment from within may

    lead to infighting among

    employees aspiring for limited,

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    higher level positions in an

    organization. As years roll by,

    the race for premium positions

    may end up in a bitter race.

    3.1.9 Merits and Demerits of External sources of Recruitment

    Merits Demerits

    Wide Choice: The organization has

    the freedom to select candidates from

    a large pool. Persons with requisite

    qualifications could be picked up.

    Infection of fresh blood: People

    with special skills and knowledge

    could be hired to stir up the existing

    employees and pave the way for

    innovative ways of working.

    Motivational force: It helps in

    motivating internal employees to

    work hard and compete with external

    candidates while seeking career

    growth. Such a competitive

    atmosphere would help an employee

    to work to the best of his abilities.

    Expenses: Hiring costs could go up

    substantially. Tapping multifarious

    sources of recruitment is not an easy

    task either.

    Time consuming: It takes time to

    advertise, screen, to test and test and

    to select suitable employees. Where

    suitable ones are not available, the

    process has to be repeated.

    De-motivating: Existing employees

    who have put in considerable service

    may resist the process of filling up

    vacancies from outside. The feeling

    that their services have not been

    recognized by the organization,

    forces then to work with less

    enthusiasm and motivation.

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    Long term benefits: Talented

    people could join the ranks, new

    ideas could find meaningful

    expression, a competitive

    atmosphere would compel people to

    give out their best and earn rewards,

    etc.

    Uncertainty: There is no guarantee

    that the organization ultimately will

    be able to hire the services of

    suitable candidates. It may end up

    hiring someone who does not fit and

    who may not be able to adjust in the

    new setup.

    3.2 SELECTION-MEANING AND DEFINITION

    Once the applicant pool is prepared, the next step for the HR department is to

    implement the predetermined selection process in order to select the best candidate

    for the job. The aim of this process is to finally end with candidates best suited for

    the vacant jobs. The organization must be able to distinguish the applicants who are most likely to perform well as employees from the others who are less suitable.

    Selecting the most suitable candidate for a job is never an easy task for an

    organization, but it becomes all the more difficult when the organization has to

    screen candidates to fill vacancies that are critical to the organization. This is

    because any faulty decision in the selection of employees can have a far reaching

    impact on the performance and future of the organization.

    According to ODonnell Selection is the process of choosing from among the candidates, from within the organization or from the outside, the most suitable

    person for the current position or for the future position.

    We may conclude that selection is a systematic process of identifying suitable

    candidates for the jobs available in the organization from the available applicant

    pool.

    3.2.1 PURPOSE OF SELECTION

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    The basic purpose of selection process is to choose right type of candidates to man

    various positions in the organization. In order to achieve this purpose, a well organized selection procedure involves many steps and at each step, unsuitable candidates are rejected.

    DISTINCTIVE FEATURES OF SELECTION

    1. Selection means employment of workers or establishing a Contractual

    relationship between the employer and the worker.

    2. Selection is a negative process because it involves rejection of unsuitable candidates.

    3. Selection aims at eliminating unsuitable candidates and ensuring most

    competent people for the vacant job.

    4. Selection is a complex process under which each candidate is required to

    cross a number of hurdles before getting the offer for a job.

    3.2.2 SELECTION PROCESS

    Selection is a long process, commencing from the preliminary interview of

    the applicants and ending with the contract of employment. The procedure

    of selection will vary from organization to organization and even from

    department to department within the same organization according to the

    kinds of jobs to be filled.

    Thus every organization will design a selection procedure that suits its

    requirements. However the main steps could be incorporated are as under:

    1. Preliminary interview

    2. Receiving applications or application blanks

    3. Screening of application

    4. Employment tests

    5. Interview 6. Reference checking

    7. Medical examination

    8. Final Selection

    The successive stages in the selection process are discussed below:

    1.Preliminary Interview

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    The selection programme begins with preliminary interview or

    screening. The preliminary interview is generally does the job of

    eliminating the totally unsuitable candidates. The preliminary

    interview enables the HR specialists to eliminate unqualified job

    seekers based on the information supplied in their application forms.

    2. Receiving Applications or Application Blanks

    Whenever there is a vacancy, it is advertised or enquires are made from

    the suitable sources, and applications are received from the candidates.

    Standard application forms (application blanks) may be drawn up for

    different jobs supplied to the candidate on requests.

    The application forms usually involve items such as name, address, age,

    marital status and dependents, schooling, experience and reference. There

    may be several other items depending upon the specific requirements of

    the organization and the job.

    3.Screening of Applications After the applications are received, they are screened by a screening

    committee and a list is prepared of the candidates to be interviewed.

    Applicants may be called for interview on some specific criteria like sex,

    desired age group, experience and qualifications. The number of

    candidates to be called for interview is normally five to seven times the

    number of posts to be filled up. The screened applications are then

    reviewed by the Personnel Manager and interview letters are dispatched

    by registered post or under certificate of post.

    4.Employment Tests Individual differ in almost all aspects one can think of .They differ with

    respect to physical characteristics, capacity, level of mental ability, their

    likes and dislikes and also with respect to personality traits. The pattern of physical, mental and personal variables gives rise to thousand and one combinations and the particular pattern makes the individual suitable for several classes of activities, jobs or field of work. Matching of

    individuals physical, mental and temperamental pattern with the requirements of jobs or filed of training is a difficult task. So before deciding upon the job or jobs suitable for a particular individual, one

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    should know the level of his ability and the knowledge. This will require

    the use of employment tests which are listed below:

    a. Intelligence tests: The aim of intelligence test is to measure

    the general intellectual abilities of a person. The uniqueness

    of this test is that it measures several abilities of the

    candidate and derive the intelligence score. b. Aptitude tests: An aptitude test measures the latent talents of

    a person that may be crucial to performing the job

    successfully. This test is normally given to those applicants

    who have no previous experience in that file

    c. Interest tests: A persons mental and physical abilities are

    not sufficient to achieve a desirable job performance. The

    aim of the interest test is to know the interest test is to know

    the interest, aptitude and preference of a person towards a job

    offered.

    d. Personality tests: Personality refers to the sum of the

    characteristics of a person which reflect on his /her response

    to a particular situation. The characteristics may include

    among other things, introversion, interpersonal skills, motivation, stability, self belief, courage, attitude and

    temperament.

    Employment tests are widely used for judging the applicants suitability

    for the job.

    5.EMPLOYMENT INTERVIEW

    Employment tests provide a lot of valuable information about the candidate. Interview is a formal, in-depth conversation conducted to

    evaluate the applicants acceptability. An interview can be defined as a selection procedure designed to predict future job performance on the basis of applicants oral response to oral inquiries or, as a purposeful exchange of ideas, the answering of questions and communication between two or more persons

    The main purposes of an employment interview are:

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    a) To find out the suitability of the candidate.

    b) To seek more information about the candidate

    c) To give him an accurate picture of the job with details of terms and

    conditions and some idea of organizations policies.

    Employment interview is considered to be an excellent selection device.

    TYPES OF INTERVIEW (METHODS)

    a)THE STRUCTURED INTERVIEW:

    The structured interview has also been called patterned or standardized

    interview. The interviewer predetermines the questions to be asked. He

    merely follows the same template to ask the interviewee a series of

    questions with title or no deviation. This method ensures uniformity in

    the interview process and facilitates easy comparisons among the

    candidates.

    b) THE UNSTRUCTURED INTERVIEW In this type of interview, the interviewer does not pre-plan the

    questions to be asked. In fact, he decides on the questions as the

    interview proceeds. The purpose of this method is to allow a free

    discussion on any topic as it emerges. Interviewers generally avoid

    asking the same or similar questions.

    c) IN DEPTH INTERVIEW The purpose of these interviews is to discuss the information concerning the candidate in detail. This method normally covers the subjects of mutual interest like specialization, motivation, qualification

    and career plan of the candidate on one hand, and the firms offer on the nature of job, pay, perquisites, career opportunities on the other.

    d) THE GROUP INTERVIEW

    The group interview method has been devised to assess leadership.

    Usually a topic is given discussion to a leaderless group of applicants.

    This method is provides opportunities to rate various qualities as

    initiative, poise, adaptability to new situations, social awareness and

    speaking ability.

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    e) STRESS INTERVIEW

    The purpose of this interview is to put the candidate in an

    uncomfortable situation to see his/her ability to handle stress.

    f) PANEL INTERVIEW In this method, the applicant is interviewed by more than one

    interviewer. A panel of two or more interviewers is formed to

    interview the candidate. The interviewers are generally drawn from

    different fields. The marks awarded by all the interviewers are finally

    consolidated into a panel score.

    6. CHECKING REFRENCES A reference is potentially an important source of information about a

    candidates ability and personality if he holds a responsible position in some organization or has been the boss or employer of the candidate. Prior to final selection, the prospective employer normally makes an investigation or the reference supplied by the applicant and undertakes more or less through search into the candidates past employment, education, personal reputation, financial condition etc.

    7. MEDICAL EXAMINATION The pre employment physical examination or medical test of a candidate is an important step in the selection process.

    8. FINAL SELECTION AND APPOINTMENT LETTER The next step in the selection process is job offer to those applicants who

    have crossed all the previous hurdles. Job offer is made through a letter of

    appointment. Such a letter generally contains a date by which appointee

    must report on duty.

    3.3QUIZ

    Complete all the review questions listed here to test your understanding of

    the topics and concepts in this chapter

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    1. In todays rapidly changing business environment, organizations have to respond quickly to requirements for people. Which is the step that starts off the process of acquiring and retaining employees for an organization?

    a) Selection

    b) Induction

    c) Recruitment

    d) Appointment

    2. Edwin B. Flippo defined the process of recruitment as

    a) The process of seeking and attracting a pool of people from which

    qualified candidates for job vacancies can be chosen

    b) The process of searching for prospective employees and stimulating

    them to apply for jobs in the organization c) The process of choosing the most suitable candidates from the

    available candidates

    d) The process of inspiring people to apply for the jobs in the

    organization and choosing the most suitable candidate from the

    available candidates

    3. An effective recruitment program aims at

    a) Aiding the recruiter by making a wide choice of candidates available

    b) Attracting the best people for the job

    c) Optimizing the cost and time involved in recruitment

    d) All of the above

    4. The policy of filling job vacancies with candidates from within the company

    instead of searching for new talent from outside has certain disadvantages.

    One of the disadvantages of this approach is that

    a) The return on investment on the workforce decreases for the company

    b) The organization might miss out on talent that is available in the market

    c) The cost of recruitment, selection and induction is increased

    d) It might have a negative effect on the morale of the employees.

    5. There are various methods of recruiting from external sources. Some of

    popular methods are advertisements, campus recruitments, employee

    referrals, employment exchanges, private placement agencies, etc. Which of

    the following recruitment sources is likely to have the widest reach?

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    a) Recruitment agencies

    b) Campus recruitment

    c) Advertisements

    d) Employment exchanges

    6. Which of the following is determining the selection of media when

    advertising for candidates to fill a job vacancy? a) Cost of advertising in the media

    b) The target audience for the advertisement

    c) The reach of the advertisement desired

    d) All of the above

    7. Unsolicited application are a) Job applications that are not received by the company b) Job applications that are referred by existing employees

    c) Job applications that are not in response to any advertisement or

    announcement of vacancy d) Job applications that are rejected by the company

    8. Which one of the following is the most important criteria for determining the

    success or failure of the recruitment program?

    a) The cost involved

    b) The number of candidate hired

    c) The number of successful placements

    d) The number of applicants for the job

    9. is considered to be a vital step in the employment process,

    where the organization attempts to identify the right candidate for the right position.

    a) Recruitment

    b) Selection

    c) Placement

    d) Induction

    10. help in assessing an individuals genuine liking for a job. They are generally inventories of the likes and dislikes of candidates in relation to work, occupations, hobbies and recreational activities.

    a) Personality tests

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    b) Aptitude tests

    c) Intelligence tests

    d) Interest tests

    11. In the selection process, the main advantage of structures interviews is that

    a) It does not require advance planning

    b) There is no scope of subjectivity

    c) The interaction between the interviewer and interviewee is formal

    d) It gives more flexibility to the interviewer

    12. help in assessing an individuals value system, emotions, maturity, and other characteristics. These characteristics are expressed in traits like self-confidence, tact, optimism, decisiveness, conformity,

    objectivity, judgment, dominance or submission and impulsiveness or

    stability.

    a) Personality tests

    b) Aptitude tests c) Interest tests

    d) Situational tests

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    CHAPTER-4 INDUCTION, SOCILIZATION AND PLACEMENT

    Upon Completion of this chapter, you will be able to understand:

    1. Meaning of Induction(Orientation)

    2. Purpose and Types of Induction

    3. Concept of Socialization

    4. Significance of Placement

    4.1 Orientation (Induction)

    Employee orientation or induction is a crucial stage in the hiring process of an

    organization. The newly joining employees get the first impression of the

    organization through the orientation programmes. It is thus necessary for any

    organization to have meticulously planned and well executed orientation program

    to educate the employees about the various aspects of organizations. Orientation

    programs are useful in making the new employee feel assured, happy and at ease

    with the new environment. In orientation programmes, employees are usually

    briefed about the history of the organization, its culture, values and attitude, the

    expectation of the management, the job and department details, and the product or

    services information.

    4.1.1 PURPOSE OF EMPLOYEE OREINTATION/INDUCTION

    The changing characteristics of the labour market, the increasing demand for the

    skilled labour, the availability of simple and appropriate technology for storing and

    presenting information, and the employees explicit demand for information about

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    the organization have all forced organization to pay serious attention to employee

    orientation. There is also growing realization among organization that the process

    of orientation can sustain and improve the new employees initial enthusiasm. We shall now see the important purposes served by employee orientation.

    Formally Welcoming Employees

    Many organizations view orientation programmes as an occasion for the

    management to welcome new employees formally and procedurally

    Overcoming Initial Uneasiness and Hesitation

    The new employees suffer from initial anxiety about the organization. Orientation

    helps in quickly overcoming the initial nervousness and hesitation.

    Exchanging Information

    Orientation provides a platform for the organization to transfer knowledge about

    the job, department, organization and people to the new employees. The

    organization, too, gets to know about the employees, their background, and

    individual career plans.

    Assessing Employees

    Although the selection process has already evaluated the training requirement

    requirements of the employees the orientation provides one more opportunity to do

    so.

    Acclimatizing Employees

    Orientation programmes enable the organization to teach the employees the basics

    of the job and the satisfy measures to be adopted, and acquaint them with the other

    facilities available in the premises.

    Controlling the HR Cost

    In the absence of orientation programmes, employees are normally left to learn

    everything on their own, and this might push up their learning cost to the

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    organization in the form of resource wastage and work disturbances. This could

    also increase the HR cost associated with recruitment and selection.

    Developing the Team Spirit

    When the orientation programme is conducted for a group of new employees, it

    helps in promoting team spirit among the peers.

    Socializing Employees

    Socialization refers to inculcating suitable values, standards and beliefs among the

    employees so that they integrate themselves not only with the formal organization

    but also with the informal groups.

    4.1.2 Types of Orientation

    Based on the number and nature of the new employees and its policy towards

    orientation, an organization may decide on a specific method of orientation. The

    important types of orientation pragramme.

    General-Idea Orientation

    In this type, some general information about the organization is provided to the

    employees. For instance attendance and discipline is provided .The organization

    may entrust the orientation pragramme to the HR department, which would

    conduct it for all new entrants, irrespective of their departments.

    Job-Specification Orientation

    The purpose of this orientation is to inform the employees about the various

    aspects of the job and other things related to it. For instance, the details of the

    duties, responsibilities and accountability associated with the job, and specific

    safety and other measures required in the performance of the job are provided.

    Traditional and Modern Orientation

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    Based on its purposes and content, orientation may also be classified into traditional

    orientation and modern orientation. When the organizations employ the general and

    oft-repeated materials to orient employees, it may be called traditional orientation.

    In this method, orientation is viewed as a ritual and one-time exercise by the

    organization. In the case of modern orientation, the organization views it as the

    beginning of a continuous process to convert an employee into a precious asset.

    4.1.3 An Effective Orientation Programme

    Since the orientation programme is crucial to the management from the employee

    motivation and retention perspective, every effort must be made to make it

    effective and successful. The following measures might help the organization

    achieve the desired effectiveness.

    Framing Clear-cut Objectives

    The organization should frame the objectives of its orientation in unambiguous

    terms. The participations status and information requirements should be considered for determining the objectives are capable of providing a clear direction

    to the whole orientation programme.

    Determining the Roles of Departments and Personnel

    The organization should determine clearly the department and persons responsible

    for conducting the orientation programme. The responsibility for orientation is

    assigned to the HR department normally. In some organizations, however, the

    training departments are assigned the task of conducting orientation programmes.

    Assessing the New Employees Information Requirements Accurately

    An effective orientation programme must be able to fully address the first day

    concerns and general information requirements of the new employees. Its success

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    lies in making the new employees feel assured and positive about their new

    organization and the job.

    Selecting Appropriate Methodology, Techniques and Programme Content

    The organization should also be judicious in designing the content

    (curriculum) of the orientation programme. It should not attempt to include

    everything in the programme content. It should decide exactly what the

    employee should know initially and what information can wait for future

    presentations. It should never overburden the new employees with

    information. Thus, it is essential to ensure that the programme content flows

    from the objectives and also work towards their attainment.

    Creating a Positive Environment for New Employees

    The organization should strive to create a positive environment for its new

    employees. Even before the beginning of the orientation sessions ,arrangements

    must be made to receive these employees and guide them to their predetermined

    places. The whole orientation programme must be designed in such a way that the

    participants completely enjoy their participation in it.

    Providing Continuous Review and Effective Feedback

    As employee orientation is a continuous process in an organization, it is necessary

    to develop appropriate instruments to evaluate the effectiveness of such

    programmes. Evaluation techniques should measure the extent of learning

    achieved through orientation programmes.

    4.2 SOCIALISATION

    Socialization is the process of introducing or integrating the new employees into

    the organizational culture. In simpler terms, it is the process by which the