Chapter 2

Human resource planning, recruitment and selection

Meaning

Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum
use of an organization's most valuable asset—quality employees. Human resources planning ensures the best
fit between employees and jobs while avoiding manpower shortages or surpluses.

 Human resource planning (HRP) is a strategy used by a company to maintain a steady stream of
skilled employees while avoiding employee shortages or surpluses.
 Having a good HRP strategy in place can mean productivity and profitability for a company.
 There are four general steps in the HRP process: identifying the current supply of employees,
determining the future of the workforce, balancing between labour supply and demand, and
developing plans that support the company's goals.

Human Resource Planning – Need and Importance:

The following points highlight the need and importance of HRP in the organizations:

I. Assessing Future Personnel Needs:

Whether it is surplus labour or labour shortage, it gives a picture of defective planning or absence of
planning in an organization. A number of organizations, especially public sector units (PSUs) in India are
facing the problem of surplus labour.

It is the result of surplus labour that the companies later on offer schemes like Voluntary Retirement Scheme
(VRS) to eliminate surplus staff. Thus, it is better to plan well about employees in advance. Through HRP,
one can ensure the employment of proper number and type of personnel.

II. Foundation for Other HRM Functions:

HRP is the first step in all HRM functions. So, HRP provides the essential information needed for the other
HRM functions like recruitment, selection, training and development, promotion, etc.

III. Coping with Change:

Changes in the business environment like competition, technology, government guidelines, global market,
etc. bring changes in the nature of the job. This means changes in the demand of personnel, content of job,
qualification and experience needed. HRP helps the organization in adjusting to new changes.

IV. Investment Perspective:

As a result of change in the mind-set of management, investment in human resources is viewed as a better
concept in the long run success of the enterprise. Human assets can increase in value as opposed to physical
assets. Thus, HRP is considered important for the proper planning of future employees.

V. Expansion and Diversification Plans:

During the expansion and diversification drives, more employees at various levels are needed. Through
proper HRP, an organization comes to know about the exact requirement of personnel in future plans.

VI. Employee Turnover:

Every organization suffers from the small turnover of labour, sometime or the other. This is high among
young graduates in the private sector. This necessitates again doing manpower planning for further recruiting
and hiring.

VII. Conformity with Government Guidelines:

In order to protect the weaker sections of the society, the Indian Government has prescribed some norms for
organizations to follow. For example, reservations for SC/ST, BC, physically handicapped, ex-servicemen,
etc. in the jobs. While planning for fresh candidates, HR manager takes into consideration all the
Government guidelines.

VIII. International Expansion Strategies:

International expansion strategies of an organization depend upon HRP. Under International Human
Resource Management (IHRM), HRP becomes more challenging. An organization may want to fill the
foreign subsidiary’s key positions from its home country employees or from host-country or from a third
country. All this demands very effective HRP.

IX. Having Highly Talented Manpower Inventory:

Due to changing business environment, jobs have become more challenging and there is an increasing need
for dynamic and ambitious employees to fill the positions. Efficient HRP is needed for attracting and
retaining well qualified, highly skilled and talented employees.

Human Resource Planning – Objectives:

The main objectives of HRP are:

(I) Proper assessment of human resources needs in future.

(ii) Anticipation of deficient or surplus manpower and taking the corrective action.

(iii) To create a highly talented workforce in the organization.

(iv) To protect the weaker sections of the society.

(v) To manage the challenges in the organization due to modernization, restructuring and re-engineering.

(vi) To facilitate the realization of the organization’s objectives by providing right number and types of
personnel.

(vii) To reduce the costs associated with personnel by proper planning.

(viii) To determine the future skill requirements of the organization.

(ix) To plan careers for individual employee.

(x) Providing a better view of HR dimensions to top management.

(xi) Determining the training and development needs of employees.

Process of Human Resource Planning

1. Determining Organisational Objectives

Human resource planning process starts with determining the aims and objectives that organisations want to
achieve. These objectives to be achieved in future are in terms of production, sales, marketing and various
other expansion programmes. Clear knowledge of objectives to be achieved makes the human resources
planning process easy. It helps in the estimation of the precise number of manpower needed for the
performance of an organisation.
 2. Assessing Present Human Resource Capacity

Once the objectives are clearly known, the next step is to analyse the current capacity of employees working
in the organisation. The information regarding the current employees is assessed in terms of their skills,
knowledge, experience and potential from maintained database in the organisation.

It gives clear pictures of job positions in organisations and also job vacancies that may arise in future.
Estimation of these vacancies helps in planning the sources from which these vacancies can be filled that
may be internal or external sources.

3. Demand and Supply Forecast of Human Resource

After properly analysing the stock of manpower, the next step is to forecast the optimum human resource
capacity required for the achievement of objectives. The demand for the human resources needed at different
positions and roles in future is forecasted. Different sources from where these future demands and current
supply are to be met are recognized that may be internal sources and external sources.

4. Identifying Manpower Gaps

This step involves finding out current manpower supply and future manpower demand gap. It helps in
finding out surplus or deficit of human resource in organisation. In case of deficit of human resources, the
supply is less than demand and the organisation need to recruit more new employees. In case of surplus,
supply is more than the required demand and therefore there is need to reduce the number of employees
through retirement, termination, transfer etc.

5. Formulation of Human Resource Action Plan

Once the manpower gaps are clearly identified, now the human resource action plan is formulated. Human
resource action plan aims at removing the deficit and surplus of manpower in organisation. Accordingly, as
per situation plan is formulated like in case of deficit planning for hiring new employees is done. Whereas in
case of surplus focus on reducing the number of employees through termination, layoff, retirement etc. is
done.

6. Training and Development

It involves training and development programmes for employees. Training and development programmes are
meant for both newly hired employees and existing employees. This programme aims to update and improve
the skills of all employees according to the various job roles and positions. It helps in meeting the current
skills of employees with requisite skills for achievement of objectives.

7. Evaluation and Monitoring of Manpower Planning

Final step in Human resource planning is monitoring and evaluation of this whole process. Here the
effectiveness of whole human resource planning is checked. It involves the comparison of manpower plans
with the actual implementation of these plans. This evaluation helps in ensuring that whether the deficiency
and surplus of employees is fulfilled or not. In case of any unfavourable situation, appropriate measures are
taken timely to overcome them.

Human resource Demand Forecasting

HR Demand forecasting must consider several factors-both external as well as internal. Among the external
factors are competition (foreign and domestic), economic climate, laws and regulatory bodies, changes in
technology, and social factors. Internal factors include budget constraints, production levels, new products
and services, organisational structure, and employee separations. Demand forecasting is common among
organisations, though they may not do personnel-supply forecasting.

Reasons to Conduct Demand Forecasting

There are several good reasons to conduct demand forecasting. It can help:

(I) quantify the jobs necessary for producing a given number of goods, or offering a given amount of
services

(ii) determine what staff-mix is desirable in the future

(iii) assess appropriate staffing levels in different parts of the organization so as to avoid unnecessary costs

(iv) prevent shortages of people where and when they are needed most; and

(v) monitor compliance with legal requirements with regard to reservation of jobs.

HR Forecasting Techniques

HR Forecasting techniques vary from simple to sophisticated ones. Before describing each technique, it may
be stated that organizations generally follow more than one technique. The techniques are:

1. Ratio-trend analysis

2. Regression analysis

3. Work-study techniques

4. Delphi technique

5. Flow models

6. Other forecasting techniques

1. Ratio-trend Analysis

This is the quickest HR forecasting technique. The technique involves studying past ratios, say, between the
number of workers and sales in an organization and forecasting future ratios, making some allowance or
changes in the organization or its methods.

2. Regression Analysis

This is similar to the ratio-trend analysis in that forecast is based on the relationship between sales volume
and employee size. However, regression analysis is more statistically sophisticated. A firm first draws a
diagram depicting the relationship between sales and workforce size.
It then calculates a regression line – a line that cuts right through the centre of the points on the diagram. By
observing the regression line, one can find out the number of employees required at each volume of sales.

3. Work-study Techniques

Work-study techniques can be used when it is possible to apply work measurement to calculate the length of
operations and the amount of labour required.

The starting point in a manufacturing company is the production budget, prepared in terms of volumes of
saleable products for the company as a whole, or volumes of output for individual departments.

The budgets of productive hours are then compiled using standard hours for direct labour. The standard
hours per unit of output are then multiplied by the planned volume of units to be produced to give the total
number of planned hours for the period.

This is then divided by the number of actual working hours for an individual operator to show the number of
operators required.

4. Delphi Techniques

Delphi Technique Named after the ancient Greek Oracle at the city of Delphi, the Delphi technique is a
method of forecasting personnel needs. It solicits estimates of personnel needs from a group of experts,
usually managers. The human resource planning (HRP) experts act as intermediaries, summarize the various
responses and report the findings back to the experts.

The experts are surveyed again after they receive this feedback. Summaries and surveys are repeated until
the experts’ opinions begin to agree. The agreement reached is the forecast of the personnel needs. The
distinguishing feature of the Delphi technique is the absence of interaction among experts.

5. Flow Models

Flow models are very frequently associated with forecasting personnel needs. The simplest one is called the
Markov model. In this technique, the forecasters will:

1. Determine the time that should be covered. Shorter lengths of time are generally more accurate than
longer ones. However, the time horizon depends on the length of the HR plan which, in tum, is
determined by the strategic plan of the organization.
2. Establish categories, also called states, to which employees can be assigned. These categories must
not overlap and must take into account every possible category to which an individual can be
assigned. The number of states can neither be too large nor too small.
3. Count annual movements (also called ‘flows’) among states for several time periods. These states are
defined as absorbing (gains or losses to the company) or non-absorbing (change in position levels or
employment status). Losses include death or disability, absences, resignations, and retirements. Gains
include hiring, rehiring, transfer, and movement by position level.
4. Estimate the probability of transitions from one state to another based on past trends. Demand is a
function of replacing those who make a transition.

6. Other Forecasting Techniques

New venture analysis will be useful when new ventures contemplate employment planning. This technique
requires planners to estimate HR needs in line with companies that perform similar operations. For example,
a petroleum company that plans to open a coal mine can estimate its future employment needs by
determining the employment levels of other coal mines.

Human Resource supply forecasting

Human Resource supply forecasting is the process of estimating availability of human resource which is
followed by demand forecasting. For forecasting supply of human resource, we need to consider internal
supply and external supply of human resources.

Internal supply of human resource available by way of transfers, promotions, retired employees & recall of
laid-off employees, etc. external supply of human resource is, availability of labour force in the market and
by way of new recruitment.

1. External supply of human resource depends on some factors mentioned below. Supply and demand
of jobs.
2. literacy rate of nation.
3. rate of population
4. industry and expected growth rate and levels
5. technological development.
6. compensation system based on education, experience, skill and age.

Succession Planning
The term succession planning refers to a business strategy companies use to pass leadership roles down to
another employee or group of employees.

Succession planning ensures that businesses continue to run smoothly and without interruption, after
important people move on to new opportunities, retire, or pass away. It can also provide a liquidity event,
which enables the transfer of ownership in a going concern to rising employees.

Succession planning is a good way for companies to ensure that businesses are fully prepared to promote and
advance all employees—not just those who are at the management or executive levels.

1. Succession planning is a business strategy for passing leadership roles on to one or more other
employees.
2. The strategy is used to ensure that businesses run smoothly after employees retire and leave the
company.
3. Succession planning involves cross-training employees to help them develop skills, knowledge, and
an understanding of the business.
4. Plans can be long-term, which are meant to account for future changes, or for emergencies whenever
anything unexpected arises.
5. There are many benefits to succession planning, including inclusivity if companies have a strong plan
to diversify their workforce.

Succession Planning – Nature, features

The nature of succession planning can be listed as follows:

(I) Senior leaders are personally involved.

(ii) Senior leaders hold themselves responsible for growing leaders.

(iii) Employees are committed to their own self development.

(iv) Success is based on a business case for long term needs.

(v) Succession is linked to strategic planning and investment in the future.

(vi) Workforce data and analysis inform the process.

(vii) Leadership competencies are identified and used for the selection and development.

(viii) A pool of talent is identified and developed early for long term needs.

(ix) Development is based on challenging and varied job based experience.

(x) Senior leaders form a partnership with human resources.

(xi) Succession planning addresses challenges such as diversity, recruitment and retention.

Following are the features of succession planning:

Feature # 1. Systematic Process:

Succession planning is the systematic process of defining future management requirements and identifying
candidates who best meet the requirements.

Feature # 2. Supply of Labour:

Succession planning ensures supply of labour within the organization for future staffing needs. With
succession planning the skills and abilities of current manpower are assessed to see which future positions
they may take within the organization when other employees leave their positions.

Feature # 3. Used for Higher Level Organizational Positions:

Succession planning is typically used for higher level organizational positions such as executive level
positions. Like if a company predicts that its CEO will retire in near future, the organization may begin
looking months or even years in advance to determine which current employee might be capable of taking
over the position of CEO.

Feature # 4. Internal Selection:

Succession planning makes use of internal selection as opposed to hiring employees from outside the
organization. With internal selection, the organization becomes aware of current employee skills and
abilities and therefore is often better able to predict future performance than when hiring from outside.

Feature # 5. Key Succession Plan:

The key to succession planning is preparing a written succession plan. This document provides for the
continued operation of a business in the event that the owner or a key member of the management team –
leaves the company, is terminated, retires, or dies. It details the change that will take place as leadership is
transferred from one generation to next.

Job analysis
Job analysis is the procedure through which you determine the duties and nature of the jobs and the kinds of
people who should be hired for their goal. It provides to write job descriptions and job specifications, which
are utilized in recruitment and selection, compensation, performance appraisal, and training.

Job analysis is a process of studying, examining and collecting detailed information relating to the
components and various operations of job. It is a process of collecting and analysing data relating to a job.

Job Analysis in HRM – 4 Steps Involved in the Process of Job Analysis

Job analysis involves different steps which are described below:

1. Determination of uses of job analysis

2. Strategic choices in job analysis

3. Information collection

4. Information processing, Job description and Job specification.

Step # 1. Determination of Uses of Job Analysis:

Job analysis begins with determination of uses of job analysis. Job analysis has variety of uses. Earlier it was
used for recruitment and selection and later its coverage increased. Therefore, before analysing the job, the
organization should define the uses of job analysis.

Because, without knowing the purpose, required information cannot be collected. In large organizations, it is
undertaken in comprehensive, systematic and in written form. But in small organizations the process is
generally informal and is used for limited purposes.

Step # 2. Strategic Choices in Job Analysis:

There are certain strategic choices with regard to job analysis which are described below:

(a) Employees Involvement:

Before analysing the job, it is advisable to know the extent of employee’s involvement in the job, because a
job holder knows better about the job and it is easy to collect the information about the job from job holders.
But the question is whether job holder should be involved in the process as there are every possibility of
inflating the duties and responsibilities of his job by the job holder.

(b) Level of Details of Analysis:

Job analysis may be made in-depth or it can be completed without going in to the details. It is therefore
necessary to define the level of details of analysis. Generally, objectives and use of analysis determine the
level of details of analysis along with nature of job. Job of routine nature with limited responsibilities
requires fewer details whereas dynamic and non-repetitive job requires detailed analysis.

(c) Frequency and Timing of Analysis:

Frequency of job analysis and time during which analysis is to be undertaken is also another important factor
to be considered while analysing the job.

Step # 3. Information Collection:

The next step to be followed in the process of job analysis is information collection for job analysis which
involves the following sub steps:

(a) The type of information to be collected

(b) Method to be adopted to collect the information

(c) Persons involved in information collection

(a) Type of Information to be Collected:

In deciding the type of information to be collected, all details about the job need to be gathered. It may be
related to description of work like why, when and how, task is performed, machines, tools, and equipment
used, job contents, personal requirement of job holder etc.

(b) Method to be Adopted to Collect the Information:

With regard to method to be applied to collect the data, there are several methods like observation, interview
method, questionnaires, checklists, technical conference etc. Use of a particular method depends on type of
information required for job analysis.

(c) Persons Involved in Information Collection:

Persons generally involved for gathering information are – trained job analysts, supervisors, job incumbents
or job holders. Trained job analysts maintain objectivity, consistency in information collection and reporting
but intrinsic factors of job may be missed by them. Supervisors ensure speedy collection of information and
there will be better familiarity with job contents and contexts but they have time constraints and they lack
skill required for job analysis.

Step # 4. Information Processing, Job Description and Job Specification:

The last step in the process of job analysis is processing of information collected which involves editing and
classification of information in to different relevant components which are helpful in the preparation of job
description and job specification. Job description refers to the description of duties, responsibilities, and
requirement of a particular job. Job specification is the statement that describes the minimum acceptable
qualifications that a job holder should possess to perform the job successfully.

Uses of Job Analysis – 10 Uses of Job Analysis (With Utility of Job Analysis)

The various uses of job analysis are:

1. Human resource planning

2. Recruitment

3. Selection

4. Placement and orientation

5. Training

6. Counselling

7. Employee safety

8. Performance appraisal

9. Job design and redesign

10. Job evaluation

1. Human Resource Planning:

Job analysis is useful in human resource planning in terms of demand forecasting. It finds out the requisite
knowledge and skills required to perform a job.

2. Recruitment:

Job analysis helps in recruitment in terms of finding how and when people should be hired for new job
openings. It makes the recruitment process easier by highlighting the skills, knowledge and abilities required
to perform a job.

3. Selection:

Job analysis helps in selecting the right person by making the employer understand what is to be done on a
job.

4. Placement and Orientation:

Job analysis is useful in putting the newly selected person at the right place in the organization.

5. Training:

Job analysis eases the training process by identifying the duties and responsibilities associated with a job. If
the candidate doesn’t have enough knowledge, then training is provided to make him effective.
6. Counselling:

Proper counselling of the employee is possible only after knowing the details about the employee’s job. This
helps in grooming the career of the employees.

7. Employee Safety:

Through a proper job analysis, the analyst can know the health hazards and accidents associated with a job.
By knowing, proper steps can be undertaken to eradicate those situations.

8. Performance Appraisal:

In case of performance appraisal, the appraiser compares the performance of the employee with the standard
performance based on job analysis. It makes the process of performance appraisal easy and simple.

9. Job Design and Redesign:

Through job analysis the details of job are identified. From this the weak areas in a job are identified. It
helps in reducing unnecessary movements, simplify certain steps and improve the existing ones through
continuous monitoring.

10. Job Evaluation:

It is finding the relative worth of a job in relation to other jobs in the organization. This is done with the help
of the job analysis. Job evaluation helps in fixing the pay package of employees with internal and external
pay equity.

Job Description and Job Specification

Job Analysis is a primary tool to collect job-related data. The process results in collecting and recording two
data sets including job description and job specification.

Any job vacancy cannot be filled until and unless HR manager has these two sets of data. It is necessary to
define them accurately in order to fit the right person at the right place and at the right time. This helps both
employer and employee understand what exactly needs to be delivered and how.

Both job description and job specification are essential parts of job analysis information. Writing them
clearly and accurately helps organization and workers cope with many challenges while on-board.

Job Description and Job Specification

Though preparing job description and job specification are not legal requirements yet play a vital role in
getting the desired outcome. These data sets help in determining the necessity, worth and scope of a specific
job.

Job Description

Job description includes basic job-related data that is useful to advertise a specific job and attract a pool of
talent. It includes information such as job title, job location, reporting to and of employees, job summary,
nature and objectives of a job, tasks and duties to be performed, working conditions, machines, tools and
equipment’s to be used by a prospective worker and hazards involved in it.
Purpose of Job Description

1. The main purpose of job description is to collect job-related data in order to advertise for a particular
job. It helps in attracting, targeting, recruiting and selecting the right candidate for the right job.
2. It is done to determine what needs to be delivered in a particular job. It clarifies what employees are
supposed to do if selected for that particular job opening.
3. It gives recruiting staff a clear view what kind of candidate is required by a particular department or
division to perform a specific task or job.
4. It also clarifies who will report to whom.

Job Specification

Also known as employee specifications, a job specification is a written statement of educational

qualifications, specific qualities, level of experience, physical, emotional, technical and communication
skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. It also
includes general health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional
ability, adaptability, flexibility, values and ethics, manners and creativity, etc.

Purpose of Job Specification

1. Described on the basis of job description, job specification helps candidates analyse whether are
eligible to apply for a particular job vacancy or not.
2. It helps recruiting team of an organization understand what level of qualifications, qualities and set of
characteristics should be present in a candidate to make him or her eligible for the job opening.
3. Job Specification gives detailed information about any job including job responsibilities, desired
technical and physical skills, conversational ability and much more.
4. It helps in selecting the most appropriate candidate for a particular job.

Job description and job specification are two integral parts of job analysis. They define a job fully and guide
both employer and employee on how to go about the whole process of recruitment and selection. Both data
sets are extremely relevant for creating a right fit between job and talent, evaluate performance and analyse
training needs and measuring the worth of a particular job.
Job enlargement
The definition of job enlargement is adding additional activities within the same level to an existing role.
This means that a person will do more, different activities in their current job. For example, an employee
who will now also manage her own planning where this was formerly done by her manager.

Job enlargement is a key technique in job redesign, along with job enrichment, job rotation, and job
simplification.

Job enlargement advantages

Job enlargement was popularized in the ’60s and ’70s. During that time there was an increase in attention on
factors that made a job motivational as people realized that the traditional mass production assembly lines
were boring and deeply dissatisfying to work at.

Enlarging highly specialized jobs leads to a number of advantages.

1. Creating a wider range of activities.

In essence, job enlargement is about adding responsibilities to existing roles. This makes the job
more varied, creating a wider range of activities.

2. Reduces monotony.
As a result of the wider range of activities, monotony decreases. People don’t do the same, highly
specialized task 30 times an hour for 9 hours straight. Instead, they are more involved from end-to-
end, taking a single product through multiple production phases, or even managing an automated
assembly belt.

3. Teaches a variety of skills and helping career growth.

Additional job responsibilities require training and help in building additional experience. This
teaches employees additional skills and is helpful in terms of career growth.

4. Earn a higher wage.

Adding responsibilities to a role often results in better compensation. Higher wages are a specific
benefit for the employee.

5. Gives more autonomy, accountability, and responsibility.

The additional responsibilities lead to a number of motivational factors. Because the person is now
responsible for multiple related activities, the person has more freedom over how they do their work
leading to more autonomy. In addition, they are more accountable for mistakes and product quality as
they experience more ownership and responsibility as they have more interaction with a single
product or service (compared to when they were specialized).

To wrap this up, job enlargement can create more variety for the individual employee, more ownership
over their work, and it can make work a more rewarding experience
Job rotation in HRM
Job rotation is movement of employees on different job role which enriches their skills, ability to work
on different roles and experience. It is a useful HR strategy to create awareness among employees about
all types of job performed in their vertical.

Job rotation is defined as a management technique which is used to shift employee from one job to
another in order to make them familiar with all the verticals of an organization. The objective of job
rotation is to enhance the work experience of the employees, to cross-train them and improve their job
satisfaction.

Role of Employee Job Rotation Policy, Benefits, and purpose in Human Resource Management.

The role of employee job rotation policy is to convey the employees about the job rotation technique
used by the organization, rules and regulation associated to the job rotation and frequency of job rotation.
The job rotation policies help to reduce the demoralization of employees. It plays an important role to
make the organizational outcomes more efficient and improve the productivity of the employees. The
innovative thinking and inventiveness also gets boost due to effective implementation of employee job
rotation policy.

Benefits of Job Rotation Policy

The amazing benefits of implementation of employee job rotation policy is listed below-

1. It reduces the exposure to fulfilling the demands of only one job role.
2. It minimizes the strain, physiological stress and fatigue associated to one particular job role.
3. It reduces the fear of employee to be stuck on high risk job.
4. It improves the work efficiency and productivity of employees.
5. It increases work flexibility among employees and improve the skill base.
6. It provides relief from boredom and complacency.
7. It helps to decrease absenteeism and turnover in the organization.

Purpose of Job Rotation Policy

The purpose of job rotation policy is to create a talent pool for organization by cross-training the
employees. The job rotation policy also serves different purposes as listed below-

1. To create a career path for employees in the organization by rotating their work profile from dead
end job
2. To provide the employee opportunity to gain new knowledge and job processes.
3. To enhance the understanding of the employees about working of the company
4. To keep employee motivated and productive, throughout their journey in the organization
5. To create unity among employees by providing them a chance to work with each other on
different project.
Job Enrichment:
Meaning:

Fredrick Herzberg gave greater emphasis on job enrichment in his two factor theory. He assumed that in
order to motivate personnel, the job must be designed to provide opportunities for achievement, recognition,
responsibility, advancement and growth. This technique entails enriching the job so that these factors are
included.

It simply means, adding a few more motivators to a job to make it more rewarding. A job is enriched when
the nature of the job is made more exciting, challenging and creative or gives the job holder more decision
making, planning and controlling powers.

Characteristics of an Enriched Job:

According to Herzberg, an enriched job has eight characteristics.

There characteristics are as explained below:

1. Direct Feed Back:

There should be a direct feedback of the employee’s performance. Employees should be able to get
immediate knowledge of the results they are achieving. The job evaluation can be inbuilt in the job or
provided by a supervisor.

2. Client Relationships:

When an employee serves a client or customer directly, he has an enriched job. The client can be outside the
organization or inside.

3. New Learning:

An enriched job allows the employee to learn more. He should feel that he is growing mentally. An
employee, who is doing some intellectual work, is having an enriched job.

4. Scheduling Own Work:

Freedom to schedule one’s own work contributes to enrichment. Deciding when to tackle which assignment
is an example of self-scheduling. Employees who perform Creative work have more opportunity to schedule
their assignments as compared to employees performing routine jobs.

5. Unique Experience:

An enriched job has some unique qualities or features as compared to the other jobs.

6. Control Over Resources:

One approach to job enrichment is that each employee should have control over his own resources and
expenses.

7. Direct Communication Authority:

An employee holding the enriched job will be allowed to communicate directly with people who use his
output.

8. Personal Accountability:

An enriched job holds the incumbent responsible for the results. He receives praise for good work and blame
for poor work.

Advantages of Job Enrichment:

Job enrichment is a very useful technique to motivate employees.

The advantages of job enrichment are as follows:

(I) In the routine jobs, the employees find their jobs very boring and monotonous. The number of such
employees is generally considerable. The frustration of these employees can be removed by making the job
interesting with the help of job enrichment.

(ii) Job enrichment helps in reducing the rates of employee turnover and absenteeism.

(iii) Job enrichment motivates the employees intrinsically by giving them opportunities for growth
advancement and self-realization.

(iv) Task enforcement is made easy with the help of job enrichment and the skills of workers are increased.

(v) The enriched jobs give more job satisfaction to the employees.

(vi) Job enrichment is advantageous to the organization as there is qualitative as well as quantitative
improvement in output and there is higher satisfaction of the workers,

(vii) Employees tend to be more creative when they work in an enriching context of complex and
challenging jobs.

Recruitment
Recruitment is the process of actively seeking out, finding and hiring candidates for a specific position or
job. The recruitment definition includes the entire hiring process, from inception to the individual recruit's
integration into the company.

Recruitment methods

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

1. Direct Method

2. Indirect Method

3. Third Party Method.

1. Direct Method:

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

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

2. Indirect Methods:

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

This method is useful when:

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

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

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

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

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

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

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

 Second, to write out a list of the advantages the job will offer
 Third, to decide where to run the advertisement, i.e., newspaper with local, state, nation-wide and
international reach or circulation.

3. Third Party Methods:

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

The internal factors likewise term as endogenous elements are the components inside the association that
impact selecting in the organisation

The internal forces i.e. the factors which can be controlled by the organization are:

1. Recruitment Policy

The recruitment policy of the organization i.e. recruiting from internal sources and external also affect the
recruitment process. The recruitment policy of an organization determines the destinations or enlistment and
gives a structure to usage of recruitment program.

2. Human Resource Planning

Effective human resource process and procedure helps in fixing the loops present in the existing manpower
of the organization. This also helps in filter the number of employees to be recruited and what kind
qualification and skills they must possess.

3. Size of the Organization

The size of the organization affects the recruitment process. If the organization is planning to increase its
operations and expand its business, it will think of hiring more personnel, which will handle its operations.

4. Cost involved in recruitment

Recruitment process also count the cost to the employer, that’s why organizations try to employ/outsource
the source of recruitment which will be cost effective to the organization for each candidate.

5. Growth and Expansion

Organization will utilize or consider utilizing more work force in the event that it is growing its operations.

EXTERNAL FACTORS

The external forces are the forces which cannot be controlled by the organization. The major external forces
are:

1. Supply and Demand

The availability of manpower both within and outside the organization is an essential factor in the
recruitment process.

2. Labour Market

Employment conditions where the organization is located will effected by the recruiting efforts of the
organization.

3. Goodwill / Image of the organization

Image of the firm is another factor having its effect on the Different government controls forbidding
separation in contracting and work have coordinate effect on enlistment practices. As taken Example, Govt.
of India has the convention of reservation in work for booked standings/planned clans, physically Disabled
and so on. Additionally, exchange associations have the significant part in enrolment.

This limits management freedom to select those individuals who can be the best performers. This can work
as a potential constraint for recruitment. A company with positive image as an employer able to easier to
attract and retain employees than an organization with negative image.

Organisations actions and activities like good public relations, public service like, charity, construction and
development roads, public parks, hospitals education and schools help earn image or goodwill for
organization.

4. Political-Social- Legal Environment

Different government controls forbidding separation in contracting and work have coordinate effect on
enlistment practices.

5. Unemployment Rate

The Element that influence the availability of applicants is the economy growth rate. At the point when the
organization isn't making new jobs, there is frequently oversupply of qualified work which thusly prompts
unemployment.

6. Competitors

The recruitment policies and procedure an of the competitors also affect the recruitment function of the
organizations. Time to time the organizations have to change their recruitment policies and manuals
according to the policies being followed by the competitors.

Recruitment is one of the main departments which place the right candidates to the right job. The recruiters
should identify the best candidates from different sources and job sites. Recruiters have to identify the
problems faced during recruitment and find an alternative to make work efficiently which can fulfil
recruitment goal on time.
Internal Sources

The following are the internal sources of Recruitment

i. Transfer - The simplest way by which an employee requirement can be filled is through transfer
of employee from one department with surplus staff to that of another with deficit staff.
ii. Upgrading – Performance appraisal helps in the process of moving employees from a lower
position to a higher position
iii. Promotion – Based on seniority and merits of the employees they are given opportunity to move
up in the organisational hierarchy
iv. Demotion – Movement of employee from a higher position to a lower position because of poor
performance continuously to make him realise the significance of performance
v. Recommendation by existing Employees – A family member, relative or friend of an existing
employee can be recruited and placed
vi. Job rotation – One single employee managing to learn how to perform in more than one job on
rotation. This familiarises the employees with all kind of jobs performed and becomes a source.
vii. Retention – The retiring employees can be used to meet the requirement after superannuation as
per management discretion
viii. Retired employees - The employees who have already retired can be called to fill the vacancy as
they have the required qualification and experience
ix. Dependants – The legal heir or the dependent employee may be given a chance to replace the
deceased.
 x. Previous applicants – The applicants who have already applied for any job advertised in the past
whose name appears in the data base but not selected at that point of time can be utilised
xi. Acquisitions and Mergers – This is another way by which the organisation acquires another
business unit or merging with another establishment.

External Sources

i. Advertisements – The employer can advertise in dailies, journals, magazines etc. about the
vacancies in the organisation specifying the nature of work, nature of vacancy, qualification and
experience required, salary offered, mode of applying and the time limit within which the
candidate has to apply.
ii. Unsolicited applicants – These are the applications of job seekers who voluntarily apply for the
vacancies not yet notified by the organisations.
iii. Walk-ins– Walk-in applicants with suitable qualification and requirement can be another source
of requirement.
iv. Campus Recruitment – The organisations visit the educational institutions to identify and
recruit suitable candidates.

v. Recruitment at Factory gate – Usually casual or temporary unskilled employees are recruited
by this way. They are recruited at factory gate and paid on hourly or daily basis.
vi. Rival firms – This is also called poaching where the efficient employees of rival companies are
drawn to the organisations by higher pay and benefits. For example, Salesmen, Chartered
Accountants, Management professionals etc.
vii. e-Recruitment – The organisations which carry out recruitment online methods is said to follow
e recruitment. The advancement in technology and communication has made it possible to reach
out prospective applicants globally online. It has become inevitable external source of
recruitment.

Selection

Definition: The Selection is a process of picking the right candidate with prerequisite qualifications and
capabilities to fill the jobs in the organization.

The selection process is quite lengthy and complex as it involves a series of steps before making the final
selection. The procedure of selection may vary from industry to industry, company to company and even
from department to department. Every organization designs its selection process, keeping in mind the
urgency of hiring people and the prerequisites for the job vacancy.

Selection Process
The selection procedure comprises of following systematic steps:

1. Preliminary Interview:
The preliminary interview is also called as a screening interview wherein those candidates are
eliminated from the further selection process who do not meet the minimum eligibility criteria as
required by the organization.
Here, the individuals are checked for their academic qualifications, skill sets, family backgrounds
and their interest in working with the firm. The preliminary interview is less formal and is
basically done to weed out the unsuitable candidates very much before proceeding with a full-
fledged selection process.

2. Receiving Applications:
Once the individual qualifies the preliminary interview he is required to fill in the application
form in the prescribed format. This application contains the candidate data such as age,
qualification, experience, etc. This information helps the interviewer to get the fair idea about the
candidate and formulate questions to get more information about him.

3. Screening Applications:
Once the applications are received, these are screened by the screening committee, who then
prepare a list of those applicants whom they find suitable for the interviews. The shortlisting
criteria could be the age, sex, qualification, experience of an individual. Once the list is prepared,
the qualified candidates are called for the interview either through a registered mail or e-mails.

4. Employment Tests:
In order to check the mental ability and skill set of an individual, several tests are conducted.
Such as intelligence tests, aptitude tests, interest tests, psychological tests, personality tests, etc.
These tests are conducted to judge the suitability of the candidate for the job.

5. Employment Interview:
The one on one session with the candidate is conducted to gain more insights about him. Here,
the interviewer asks questions from the applicant to discover more about him and to give him the
accurate picture of the kind of a job he is required to perform.
Also, the briefing of certain organizational policies is done, which is crucial in the performance
of the job. Through an interview, it is easier for the employer to understand the candidate’s
expectations from the job and also his communication skills along with the confidence level can
be checked at this stage.

6. Checking References:
 The firms usually ask for the references from the candidate to cross check the authenticity of the
information provided by him. These references could be from the education institute from where
the candidate has completed his studies or from his previous employment where he was formerly
engaged. These references are checked to know the conduct and behaviour of an individual and
also his potential of learning new jobs.

7. Medical Examination:
Here the physical and mental fitness of the candidate are checked to ensure that he is capable of
performing the job. In some organizations, the medical examination is done at the very beginning
of the selection process while in some cases it is done after the final selection.
Thus, this stage is not rigid and can take place anywhere in the process. The medical examination
is an important step in the selection process as it helps in ascertaining the applicant’s physical
ability to fulfil the job requirements.

8. Final Selection: Finally, the candidate who qualifies all the rounds of a selection process is given
the appointment letter to join the firm.

Thus, the selection is complex and a lengthy process as it involves several stages than an individual has
to qualify before getting finally selected for the job.

Psychometric Test in Recruitment

Psychometric tests measure capabilities and personality characteristics that define candidate fit for any given
job position. The tests are designed to be objective and unbiased, developed as per scientific methods.

After screening, interviewing, and conducting background checks, once recruiters decide a candidate has
met all the basic qualifications for a post, recruiters conduct a psychometric test. Ideally, the process should
be reversed and only those candidates who qualify from the psychometric test should be processed for an
interview. They can use the psychometric evaluations to learn more about a candidate’s aptitudes,
personality, and talents, which is crucial for making a final hiring choice.

Psychometric testing can aid in the prediction of a job applicant’s likely behaviour patterns, attitudes, mental
reasoning, and personality type. When utilized as a part of a more extensive recruitment process, this
candidate online assessment tool might mean the difference between discovering a star employee and
someone who doesn’t suit the company’s culture or job needs.

Types of Psychometric Tests

There are two primary types of psychometric tests:

1. Personality Test
Employers can use this test to assess a candidate’s suitability based on their behaviour and work approach. It
examines behaviour, attitudes, preferences, reasons, and values and is usually a questionnaire. Typically,
candidates are asked to score assertions on a scale of “strongly disagree” to “strongly agree.” Some
assessments use a word association method which is harder to manipulate.

2. Ability Test

On the other hand, the ability test evaluates a specific or broad range of abilities needed to execute the job.
They usually consist of arithmetic, verbal, and abstract thinking assessments.

Why is a Psychometric Test Important for Recruiters?

One of the primary uses of psychometric tests in an organizational context is their application in assessing a
candidate’s mental ability and behavioural style. Thus, they offer crucial insights into a person’s cognitive
ability and reveal their underlying potential. The host of benefits it offers include:

1. Identifying personality traits

For engaged and productive employees, matching aptitude and personalities to an ideal job is
critical. Psychometric tests can assist you to predict an employee’s behaviour before they join the
workforce. This helps determine whether they will fit into the existing culture, clash with others,
or find their new employment satisfying.

2. Putting candidates on a level playing field.

Psychometric tests are widely considered a consistent and reliable method to predict applicant
behaviour and suitability. Most tests are standard, with all candidates receiving the same unbiased
and objective questions that have been widely used against a wide demographic.

3. Adding validity to the recruitment process

Even if a candidate is not a good fit for a specific task, they can write stellar job applications and
references. However, psychometric evaluations validate the hiring process by extracting
personality traits and likely behaviours that interview questions and reports cannot.

4. Cost-effective
Psychometric evaluations are generally affordable, and the cost of testing candidates to verify
their fitness for the post further could mean the difference between finding a fantastic fit and
incurring the higher cost of a rehiring process.

Importance of effective selection

1. Get the right talent

It’s often said that it’s better to hire no one than hire the wrong person.

Having an effective recruitment process means you start with a clear understanding of what the business
needs, then you communicate that well to attract quality candidates, and carefully select the one who best
meets those requirements.

It’s more than just finding the most talented or qualified people. It’s about getting the right talent for the role
and the company; people with the best possible skill-set and the right personality for the team and business.

Every stage is important, from defining the job through to interviewing and reference-checking candidates,
and the combined effectiveness determines whether your new employee will turn out to be an asset or a
liability.

2. Improve retention

High employee turnover can be a real killer for your company’s long-term prospects, but if your recruitment
and selection processes are effective, you will be far more likely to consistently pick people who perform
well and remain loyal employees.

It's all about using defined methods and assessments (rather than gut feelings) to identify applicants who will
commit to the role and the company’s mission, and then successfully bringing them into the team.

If you are regularly losing people within the first 90 days of employment, it’s a clear sign your recruitment
practices aren't up to scratch.

3. Increase productivity

An efficient, frictionless recruitment experience increases the likelihood that new employees will be more
engaged and motivated from the get-go, which improves their long-term chance of succeeding in the job and
working to build the business.

A large 2012 study by the Boston Consulting Group into the relationship between people management and
financial performance found that “company’s adept at recruiting enjoyed 3.5 times the revenue growth and
2.0 times the profit margin of their less-capable peers”.

Quite apart from the effect of their own poor performance, hiring the wrong person can create stress and
conflict in the team, and suck up management time that could be better spent on developing your people and
the business.

4. Save time and money

Building a team of dependable, motivated employees is best for the bottom line.
No one wants to waste all the effort and money to attract, select, and establish new hires only to find they
aren’t up to scratch or don’t fit, and you’re faced with retraining them, or worse, back at square one, looking
for a replacement.

If your recruitment campaigns are consistently good, you’ll be way more likely to get the right person each
time and have the confidence you can do so whenever the business needs it.

5. Reduce legal risk

The recruitment process forms the base for the employment relationship, so having rigorous, transparent
procedures that you follow for every new hire reduces the chances of finding yourself in legal wrangles.

That means being sure you hire without discrimination or bias, adhering to privacy and human rights
regulations, ensuring your new employee is entitled to work in NZ, and that they get a written employment
agreement to consider and sign before they start.

If you and your new employee start off with a clear understanding of the position, each other’s expectations,
and rights and responsibilities, you will be less likely to need to take remedial steps or end up offside, which
could lead to disciplinary action or even dismissal (increasing the risk of personal grievance claims).

6. Contribute to team diversity

Aside from the legal considerations, robust recruitment practices that are free from potential biases and
discrimination helps you create a stronger, more diverse team.

This is more than “feel good” rhetoric or box-ticking. A diverse workforce that brings a wide range of
perspectives and approaches is proven to be better for business performance and resilience, with improved
employee engagement and retention.

It could be a balanced gender mix on your board, a variety of ethnicities in your customer service team so
customers feel connected to the people who are helping them, or ensuring that you’re not just hiring carbon-
copy employees who won’t bring fresh ideas and innovation to your team.

Being open to diversity also means you’ll draw from a wider pool of talent and be a far more attractive
company to potential employees.

Problems in Effective Selection

The main objective of selection is to hire people having competence and commitment. The quality of
employees you hire depends on an effective recruitment and selection strategy. However, the process isn’t
always smooth sailing. Employers face tangible problems such as the cost of advertising job openings and
intangible obstacles such as improving communication between recruiters and hiring managers. This
objective is often defeated because of certain barriers. The impediments, which check effectiveness of
selection, are perception, fairness, validity, reliability and pressure.

1. Perception

Our inability to understand others accurately is probably the most fundamental barrier to selecting the right
candidate.

Selection demands an individual or a group of people to assess and compare the respective competencies of
others, with the aim of choosing the right persons for the jobs. But our views are highly personalized. We all
perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective
and rational selection of the people.

2. Fairness

Fairness in selection requires that no individual should be discriminated against on the basis of religion,
region, race or gender. But the low numbers of women and other less privileged sections of the society in
middle and senior management positions and open discrimination on the basis of age in job advertisements
and in the selection process would suggest that all the efforts to minimize inequity have not been effective.

3. Validity

Validity, as explained earlier, is a test that helps predict job performance of an incumbent. A test that has
been validated can differentiate between the employees who perform well and those who will not. However,
a validated test does not predict job success accurately. It can only increase possibility of success.

4. Reliability

A reliable method is one, which will produce consistent results when repeated in similar situations. Like
validated test, a reliable test may fail to predict job performance with precision.

5. Pressure

Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends and peers to select
particular candidates. Candidates selected because of compulsions are obviously not the right ones.
Appointments to public sectors undertakings generally take place under such pressures.

6. Expenses

The cost to hire and replace hourly workers is approximately six months’ wages; the cost to replace salaried
personnel is the salary for a year and a half, according to 2007 figures analysed by management consultant
firm The Hay Group. Recruitment costs include advertising space, professional memberships, job fair
sponsorship and college recruiting trips.
Conclusion:

To conclude, recruitment problems can happen to the most experienced recruiters, but there are strategies
that can significantly reduce these errors in order for you to save time, money and energy.

Keeping up to date with trends, recognizing growth potential in your existing employees and utilizing a
psychometric test to uncover natural strengths are ways to hire the best for the job and to ultimately enhance
your human capital.

Placement

Placement is actual posting of an employee to a specific job. It involves assigning duties and responsibilities
to an employee. The organisation normally decides about final placement after initial training or probation.

According to Cascio, “Placement is the assignments of individuals to Jobs.”

According to K. Aswathappa, “Placement refers to the allocation of people to jobs. It includes initial
assignment of new employees and promotion, transfer, or demotion of present employees”.

Objectives of Placements

1. To provide career guidance about avenues open after graduation. i.e. Higher education,
placements or entrepreneurship
2. To provide recruitment to students.
3. To provide exposure to BE pursuing students.
4. To have good relations with the recruiters.
5. Managing Recruiters correspondence and feedback’s.
6. Organizing Pre- Placement Training’s.
7. Providing Training & Placement process awareness to first year students.
8. Planning and organizing various Placement drives in campus.
9. Finding, informing and managing Pool Placements drives.
10. To build the bridge between industry and academia.

Placement – Importance

1. If the employees are properly placed, they will enjoy their work and organisation will not have to suffer
the problem of employee turnover.

2. If employees don’t like their work, they start making excuses from the job and remain absent. Effective
placement will keep the absenteeism rate low.
3. Morale of workers increases because they get the work of their choice, if correctly placed.

4. Workers will work attentively and safety of workers will be ensured and lesser accidents will happen.

5. Workers will be satisfied with their jobs and there will be no reasons for disputes, so human relations will
improve.

6. Through proper placement, misfit between the job and person can be avoided.

7. Efficient and effective performance of individual tasks will ensure the achievement of organisational
goals.

8. Productivity i.e., ratio of output to input increases as wastage and abnormal losses decrease.

Placement should be done keeping into view the job and social, psychological & emotional needs of person.