HUMAN RESOURCE

MANAGEMENT
Institute of Management Studies, Kurukshetra University
BBA-303
Lecturer: Kamran Shinwari
 UNIT I
1. Introduction to Human
Resource Management
2. Human Resource Planning
3. Recruitment and Selection
HUMAN
RESOURCE
MANAGEMENT -
INTRODUCTION
 Management
Process:
The five basic functions
of planning, organizing,
staffing, leading and
controlling
Management Process / Functions

1. PLANNING: Establishing goals 3. STAFFING: Determining what type

and standards; developing of people should be hired; recruiting
rules and procedures, prospective employees; selecting
developing plans and employees, setting performance
forecasting. standards; compensating employees;
evaluating performance; counseling
2. ORGANIZING: Giving each employees; training and developing
subordinate a specific task; employees.
establishing departments; 4. LEADING: Getting others to get the
delegating authority to job done; maintaining morale;
subordinates; establishing motivating subordinates.
channels of authority and
communication; coordinating 5. CONTROLLING: Setting standards
the work of subordinates. such as sales quotas, quality
standards, or production levels;
checking to see how actual
performance compares with these
standards; taking corrective action as
needed.
HUMAN RESOURCE MANAGEMENT

Definition
Human Resource The policies and practices
Management is the process involved in carrying out the
of acquiring, training, “people” or human
appraising, compensating resource aspects of a
employees and of attending management position,
to their labor relations, including recruiting,
health and safety, and screening, training,
fairness concerns. rewarding and appraising.
 WHY IS HUMAN RESOURCE MANAGEMENT IMPORTANT TO ALL
MANAGERS?
Perhaps it’s easier to 1. Hire the wrong person
answer this by listing for the job
some of the personnel
2. Experience high
mistakes you don’t want turnover
to make while managing.
3. Have your people not
For example, you don’t doing their best
want to:
4. Waste time with useless
interviews
5. Have your company
taken to court because
of discriminatory actions
6. Have your company cited
under federal occupational
safety laws for unsafe
practices
7. Have some employees
think their salaries are unfair
and inequitable relative to
others in the organization
8. Allow a lack of training to
undermine your
department’s effectiveness
9. Commit any unfair labor
practices
LINE AND STAFF ASPECTS OF HRM

1. AUTHORITY: The right to 4. LINE MANAGER: A

make decisions, direct others’ manager who is authorized
work, and give orders. to direct the work of
2. LINE AUTHORITY: Gives subordinates and is
managers the right (authority) responsible for
to issue orders to other accomplishing the
managers or employees. It organization’s tasks.
creates superior-subordinate
relationship. 5. STAFF MANAGER: A
3. STAFF AUTHORITY: give the
manager who assists and
manager the right (authority) advises line managers.
to advise other managers or
employees. It creates advisory
relationship.
 HUMAN RESOURCE MANAGER DUTIES
1. A Line Function:
The human resource manager
directs the activities of the
people in his or her own
department and in related
services (Plant cafeteria).
It exerts line authority within the
HR department while they exert
implied authority outside. This is
because line managers know the
human resource manager has top
management’s ear in areas like
testing and affirmative action.
2. A Coordinative function:
Human resource managers also
coordinate personnel activities
referred as functional authority
(Functional control).
Here the HR acts as the “right
arm of the top executive” to
ensure that line managers are
implementing the firm’s human
resources policies and
practices.
3. Staff (assist & advice) function:
Assisting and advising line managers is
the heart of HR manager’s job. They
advises the CEO to better understand
the personnel aspects of the
company’s 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, etc.)
It carries out an innovator role, by
providing up-to-date information on
current trends and new methods for
better utilizing the company’s
employees or human resources.
 HUMAN RESOURCE MANAGER DUTIES

1. Implied Authority: 2. Functional Control:

The authority exerted by an HR The authority exerted by an HR
manager by virtue of others’ manager as coordinator of
knowledge that he or she has personnel activities.
access to top management (in
areas like testing and affirmative
action)
NATURE OF HRM
 Nature of HRM
• HRM: The process of bringing people and organizations together so that the goals of each are met
or we can also say that it is the art of procuring, developing and maintaining competent workforce
to achieve goals of an organization in an effective and efficient manner.
• Following are the features:
1. Pervasive force: HRM is pervasive in nature. It is present in all enterprises. It permeates all levels
of management in an organization.
2. Action Oriented: HRM focuses attention on action, rather than on record keeping, written
procedures or rules. The problems of employees at work are solved through rational policies.
3. People Oriented: HRM is all about people at work, both as individuals and groups. It tries to put
people on assigned jobs in order to produce good results.
4. Future Oriented: Effective HRM helps an organization meet its goals in the future by providing for
competent and well-motivated employees.
5. Development Oriented: HRM intends to develop the full potential of employees. Training is offered
to sharpen and improve their skills. Employees are rotated on various jobs so that they gain
experience and exposure. Every attempt is made to use their talents fully in the service of
organizational goals.

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 Nature of HRM
6. Integrating Mechanism: HRM tries to build and maintain cordial relations between people working
at various levels in the organization. In short, it tries to integrate human assets in the best possible
manner in the service of an organization.
7. Comprehensive Function: HRM is, to some extent, concerned with any organizational decision
which has an impact on the potential workforce. “it is basically a method of developing potentialities
of employees so that they get maximum satisfaction out of their work and give their best efforts to
the organization” (Pigors and Myers).
8. Auxiliary Service: HR departments exist to assist and advise the line or operating managers to do
their personal work more effectively. HR manager is a specialist advisor. It is a staff function.
9. Inter-Disciplinary Function: HRM is a multi-disciplinary activity, utilizing knowledge and inputs
drawn from psychology, sociology, anthropology, economics etc. To unravel the mystery surrounding
the human brain, managers need to understand and appreciate the contributions of all such “soft”
disciplines.
10. Continuous Function: HRM cannot be practiced only one hour each day or one day a week. It
requires a constant alertness and awareness of human relations and their importance in every day
operations.

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SCOPE OF HRM
 Scope of HRM
• HRM: The scope of HRM is very wide. Research in behavioral sciences,
new trends in managing knowledge workers and advances in the field of
training have expanded the scope of HR function in recent years.
1. Personal Aspect: It includes manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, lay off and
retrenchment, remuneration, incentives, productivity, etc.
2. Welfare Aspect: It deals with working conditions and amenities such as
canteens, creches, rest and lunch rooms, housing, transport, medical
assistance, education, health and safety, recreation facilities, etc.
3. Industrial relations aspect: This covers union-management relations, joint
consultation, collective bargaining, grievance and disciplinary procedures,
settlement of disputes etc.

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OBJECTIVES OF HRM
 Objectives Of HRM
1. To help the organization reach its goals.
2. To employ the skills and abilities of the workforce efficiently.
3. To provide the organization with well-trained and well-motivated
employees.
4. To increase to the fullest the employee’s job satisfaction and self-
actualization.
5. To develop and maintain a quality of work life.
6. To communicate HR policies to all employees.
7. To be ethically and socially responsive to the needs of society.

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IMPORTANCE OF HRM
 Importance Of HRM
An organization’s success increasingly depends on the knowledge, skills and abilities (KSAs) of
employees, particularly as they help establish a set of core competencies that distinguish an
organization from its competitors. With appropriate HR policies and practices an organization can
hire, develop and utilize best brains in the marketplace, realize its professed goals and deliver results
better than others.
HRM helps an organization and its people to realize their respective goals in the following levels:
1. At the enterprise level:
Good human resource practices can help in attracting and retaining the best people in the
organization. Planning alerts the company to the types of the people it will need in the short, medium
and long run.
It helps in training people for challenging roles, developing right attitudes towards the job and the
company, promoting team spirit among employees and developing loyalty and commitment through
appropriate reward schemes.

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 Importance Of HRM
2. At the individual level:
It promotes teamwork and team spirit among employees.
It offers excellent growth opportunities to people who have the potential to rise.
It allows people to work with diligence and commitment.
3. At the society level:
Employment opportunities multiply.
Scarce talents are put to best use. Companies that pay and treat people well always race ahead of
others and deliver excellent results.
4. At the national level: Effective use of human resources helps in exploitation of natural, physical and
financial resources in a better way. People with right skills, proper attitudes and appropriate values
help the nation to get ahead and compete with the best in the world leading to better understand of
living and better employment.

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STRATEGIC HRM VS
TRADITIONAL HRM

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 Strategic Human Resources Management
• SHRM is the pattern of planned human resource developments and activities intended to enable an
organization to achieve its goals (Wright and McMahan).
• HR function works both as formulation of strategic plan and implementation of the same plan
through HR activities.
• While formulating strategic plan HR management can also offer competitive intelligence like new
incentive plans being used by competitors, data regarding customer complaints etc.
• Example: IBM decision to purchase LOTUS NOTES in 1995, because its own human resources were
in adequate for the firm reposition itself as an industry leader in networking systems (Dessler).
• Software Majors, Wipro, TCS have pinning hopes on their own exceptionally talented employee
teams. In fact they have built their strategic and operating plans around outsourcing contracts from
US, Europe , Japan and Germany-which should help them exploit the capabilities of their
employees fully.

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 SHRM
Example: HDFC’s competitive strategy is to differentiate itself from its competitors by offering superior
customer service at attractive rates. (Offering expert advice while negotiating the deal, competitive
lending rates, fast processing of applications, offering other financial products of HDFC at
concessional rates, door to door services as per customers’ choice etc.
• HR can help strategy implementation in other ways, it can help the firm carry out restructuring and
downsizing efforts without rubbing employees on the wrong side-say, through linking rewards to
performance, reducing welfare costs, and retraining employees. HR can also initiate systematic
efforts to enhance skill levels of employees so that the firm can compete on quality.
• Globalization, deregulation and technological innovation have in recent times created the need for
rather faster and more competitive organizations.
• Employee behavior and performance is often seen as the best bet to push competitors to a corner
and enhance productivity and market share.

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 Traditional HR Versus Strategic HR
• Traditional HR: Traditional HR deals with core HR tasks such as overseeing administrative tasks related to
recruitment and firing and administering company policies.

S. No Point of Distinction Traditional HR Strategic HR

01 Focus Employee Relations Partnership with internal and
external customers
02 Role of HR Transactional change follower and Transformational change leader and
respondent initiator
03 Initiatives Slow, reacted and fragmented Fast, proactive and integrated

04 Time Horizon Short term Short, medium & Long

05 Control Bureaucratic-roles, policies & Organic-flexible, whatever is
procedures necessary to succeed
06 Job Design Tight division of labor, Broad, flexible, cross-training teams
specialization
07 Key Investments Capital, products People, knowledge
08 Accountability Cost Centre Investment Centre
09 Responsibility of HR Staff Specialists Line Managers 24
HUMAN RESOURCE PLANNING

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HRP Definition

• Human Resource Planning is essentially the process of getting the

right number of qualified people into the right job at the right time
so that an organization can meet its objectives.

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THE PROCESS OF HUMAN
RESOURCE PLANNING

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Process Of Human Resource Planning

1. Forecasting the 2. Preparing

Demand for Manpower
Human Resources Inventory

3. Determining 4. Formulating HR
Manpower Gaps Plans

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 1. FORECASTING THE DEMAND FOR HUMAN RESOURCES

a. External Challenges: b. Organizational Decisions: The c. Workforce Factors: Demand is

organization’s strategic plan, modified by retirements,
1. Economic Developments
(Finance specialists in 1990- sales and production forecasts terminations, resignations, deaths and
1995, Healthcare and chemical and new ventures must all be leaves of absence.
Industries, Manufacturing in taken into account in
90s, engineers and employment planning.
Management graduates,
scientists etc)
2. Political, Legal, social and
technical changes (technology
in construction, power,
automobiles etc.
Computerization programme in
banks, railways, post and
telegraph departments.
3. Competition ( competition is
beneficial to customers but
suicidal for companies
operating on thin margins.
 1. FORECASTING THE DEMAND FOR HUMAN RESOURCES

Forecasting techniques: The Other Methods: Several a. Workforce Analysis

manpower forecasting techniques mathematical models, with the
commonly employed by modern aid of computers are also used b. Workload Analysis
organizations are given below: to forecast HR needs, e.g., c. Job Analysis
1. Expert Forecasts: In this method, regression, optimization
managers estimate future human models, budget and planning
resource requirements, using their analysis.
experiences and judgements to
good effect.
2. Trend Analysis: HR needs can be
estimated by examining past trends.
 Example of Trend Analysis

2020 – 2021 Production of Units : 5000

2021 – 2022 Number of Workers : 100
Ratio : 100:5000

2022 – 2023 Estimation Production : 8000

Number of Workers Required : 8000 x 100/5000 = 160

If supervisors have a span of 20 workers, 8 supervisors are also needed in 2022-23.

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2. Preparing Manpower Inventory (Supply Forecasting)
The Purpose of Manpower inventory is to find out the size and quality of personnel
available within the organization at various positions.

a. Internal Labor Supply

b. External Labor Supply

a. Internal Labor Supply: A profile of employees in terms of age, gender, education,

training, experience, job level, past performance and future potential should be kept
ready for use whenever required.
Requirement in terms of growth/diversification, internal movement of employees
(transfer, promotions, retirement etc.) must also be assessed in advance.
Through replacement charts or succession plans, the organization can even find out the
approximate date/s by which important positions may fall vacant.
Frequent manpower audits may be carried out to find out the available talent in terms
of skills, performance and potential.
 Forecasting Techniques:
a. Staffing Table
It shows the number of employees in each job. It tries to classify employees on the basis of age, gender,
position, category, experience, qualifications, skills etc. A study of the table indicates whether current
employees are properly utilized or not.

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 Forecasting Techniques:
b. Markov Analysis
This techniques uses historical rates of promotions, transfer and turnover to estimate future
availabilities in the workforce. Based on past probabilities, one can estimate the number of employees
who will be in various positions with the organization in future.
c. Skills Inventory
A skills inventory is an assessment of the knowledge, skills, abilities, experience and career aspirations of
each of the current employees.
This record should be updated at least every 2 years and should include changes such as new skills,
additional qualifications, changed job duties etc.
Once established, such a record helps an organization to quickly match forthcoming job openings with
employee backgrounds.
d. Replacement chart
It shows the profile of job holders department-wise and offers a snapshot of who will replace whom if
there is a job opening.

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B. External Labor Supply

When the organization grows rapidly, diversifies into newer areas of operations
or when it is not able to find the people internally to fill the vacancies, it has to
look into outside sources.
Organizations, nowadays, do not generally track the qualifications of thousands
of employees manually. Details of employees in terms of knowledge, skills,
experience, abilities etc., are computerized, using various packaged software
systems.
3. Determining Manpower Gaps

The existing number of personnel and their skills (from human resource
inventory) are compared with the forecasted manpower needs (demand
forecasting) to determine the quantitative and qualitative gaps in the workforce.
A reconciliation of demand supply forecasts will give us the number of people to
be recruited or made redundant as the case may be.
This forms the basis for preparing the HR Plan.
4. Formulating HR Plans

The human resource requirements identified, need to be translated into a

concrete HR plan, backed up by detailed policies, programmes and strategies (For
recruitment, selection, training, promotion, retirement, replacement etc.)

1. Recruitment Plan: Will indicate the number and type of people required and
when they are needed; special plans to recruit right people and how they are
to be dealt with via the recruitment programme.
 Formulating HR Plans
2. Redeployment Plan: Will indicate the programmes for transferring or retraining existing employees for
new jobs.
3. Redundancy Plan: Will indicate who is redundant, when and where; the plans for retraining, where
this is possible; and plans for golden handshake, retrenchment, lay-off, etc.
4. Productivity Plan: Will indicate reasons for employee productivity or reducing employee costs through
work simplification studies, productivity bargaining, incentives and profit sharing schemes, job redesign
etc.
5. Retention Plan: Will indicate reasons for employee turnover and show strategies to avoid wastage
through compensation policies; changes in work requirements and improvement in working conditions.
6. Control Points: The entire manpower plan be subjected to close monitoring from time to time. Control
points be set up to find out deficiencies, periodic updating of manpower inventory, in the light of
changing circumstances, be undertaken to remove deficiencies and develop future plans.

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RECRUITMENT
RECRUITMENT
Definition
Recruitment is the process
of locating and encouraging
potential applicants to
apply for existing or
anticipated job openings.
Recruitment, logically, aims
at (i) attracting a large
number of qualified
applicants who are ready to
take up the job if it’s offered
and (ii) offering enough
information for unqualified
persons to self-select
themselves out (e.g. the
recruitment ad of a an
organization may invite
applications from MBA
graduates who have cleared
the course in first attempt
only)
 Sources of Recruitment
1. 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.
S. Merits Demerits
No
1 Economical: The cost of recruiting internal candidates is Limited Choice: The organization is forced to select candidates
minimal. No expenses are incurred on advertising. from a limited pool. It may have to sacrifice quality and settle for
less qualified candidates.
2 Suitable: The organization can pick the right candidates having Inbreeding: It discourages entry of talented people, available
the requisite skills. The candidates can choose a right vacancy outside an organization. Existing employees may fail to behave
where their talents can be fully utilized. in innovative ways and inject necessary dynamism to enterprise
activities.
3 Reliable: The organization has knowledge about the suitability Inefficiency: Promotions based on length of service rather than
of a candidate for a position. Known devils are better than merit, may prove to be a blessing for inefficient candidates.
unknown angels. They do not work hard and prove their worth.

4 Satisfying: A policy of preferring people from within offers Bone of contention: Recruitment from within may lead to
regular promotional avenues for employees. It motivates them infighting among employees aspiring for limited, higher-level
to work hard and earn promotions. They will work with loyalty, positions in an organization. As year roll by, the race for
commitment and enthusiasm. premium positions may end up on a bitter note.
 Sources of Recruitment
2. External Sources: External sources lie outside an organization. Here the organization can have the services of (a) Employees working in
other organizations; (b) Job aspirants registered with employment exchanges; (c) Students from reputed educational institutions; (d)
Candidates referred by unions, friends, relatives and existing employees; (e) Candidates referred by search firms and contractors; (f)
Candidates responding to the advertisements, issued by the organization; and (g) Unsolicited applications/ walk-ins.
S. Merits Demerits
No
1 Wide Choice: The organization has the freedom to select Expensive: Hiring costs could go up substantially.
candidates from a large pool. Persons with requisite
qualifications could be picked up.

2 Injection of fresh blood: People with special skills and Time Consuming: It takes time to advertise, screen, to test and
knowledge could be hired to stir up the existing employees to select suitable employees. Where suitable ones are not
and pave the way for innovative ways of working. available, the process has to be repeated.
3 Motivational Force: It helps in motivating internal employees to Demotivating: Existing employees who have put in considerable
work hard and complete with external candidates while service may resist the process of filling up vacancies from
seeking career growth. Such a competitive atmosphere would outside. The feeling that their services have not been
help an employee to work to the best of his abilities. recognized by the organization, forces them to work with less
enthusiasm and motivation.
4 Long Term Benefits: Talented people could join the ranks, new Uncertainty: There is no guarantee that the organization,
ideas could find meaningful expression, a competitive ultimately, will be able to hire the services to suitable
atmosphere would compel people to give of their best and candidates. It may end up hiring someone who does not ‘fit’
earn rewards, etc. and who may not able to adjust in the new set-up.
METHODS OF RECRUITMENT

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 Methods Of Recruitment
• Promotions and Transfers
1. Internal • Job Posting
Methods • Employee Referrals
• Boomerang Employees

• Campus Recruitment
2. Direct • Internship and Apprenticeships
Methods • Talent Pool databases

• Advertisements
3. Indirect • Newspapers ads
Methods • Television and radio ads

• Private Employment Search Firms

4. Third Party • Employment Exchanges
• Gate Hiring and Contractors
Methods • Unsolicited Applicants / Walk-ins
• Internet Recruiting

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 1. Internal Methods
a. Promotions and Transfers:
Many organizations prefer to fill vacancies through promotions or transfers from within wherever
possible.
Promotion involves movement of an employee from a lower level position to a higher level position accompanied
by changes in duties, responsibilities, status and value. The Tatas, The Birlas and most multinationals have fast-track
promotion systems in place.
The credo now is reward performance, but promote competency.
A transfer, on the other hand, involves lateral movement within the same grade, from one job to another. It may
lead to changes in duties and responsibilities, working conditions, etc,. But not necessarily salary.
The systems, of course, works best for young executives who are willing to take risks.

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 1. Internal Methods
b. Job Posting:
Job posting is another way of hiring people from within. In this method, the organization publicizes job
openings on bulletin boards, electronic media and similar outlets.
The AV Birla group allows its employees an opportunity to apply not just for jobs within their own
companies, but for jobs in any company in the Birla group both in India and abroad.
One of the important advantages of this method is that it offers a chance to highly qualified applicants working
within the company to look for growth opportunities within the company without looking for greener pastures
outside.
c. Employee Referrals:
Employee Referrals means using personal contacts to locate job opportunities. It is a recommendation
from a current employees regarding a job applicant. The logic behind employee referral is that “it takes one to
know one”.
Employees working in the organization, in this case, are encouraged to recommend the names of their friends
working in other organizations for a possible vacancy in the near future.
Companies offer rich rewards also to employees whose recommendations are accepted after the routine screening
and examining process is over and job offers extended to the suggested candidates. Citibank, for example, offers Rs.
50,000 to its employees for every vacancy filled up by the bank on the basis of their referral.

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 1. Internal Methods
d. Boomerang Employees
• Rehiring past employees is gaining popularity. Known as boomerang employees, these are people who
worked well at a company but then left on good terms for a myriad of reasons.
• Employers are seeing the value of rehiring them because they know their abilities and the employee
knows and fits into the company culture. Bringing a boomerang employee back on board reduces
time to hire, eliminates the risk of a bad hire and reduces cost per hire.

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 2. Direct Methods
a. Campus Recruitment:
It is a method of recruiting by visiting and participating in college campuses and their placement centers.
Here the recruiters visit reputed educational institutions such IITs, IIMs, colleges and universities with a view to pick
up job aspirants having requisite technical or professional skills.
A preliminary screening is done within the campus and the shortlisted students are then subjected to the
remainder of the selection process.
Advantages of this method include: the placement center helps locate applicants and provides resumes to
organizations; applicants can be prescreened; applicants will not have to be lured away from a current job and
lower salary expectations.
On the negative front, campus recruiting means hiring people with little or no work experience. The organization
will have to offer some kind of training to the applicants, almost immediately after hiring. It demands careful
advance planning, looking into the ‘placement weeks’ of various institutions in different parts of the country.
Note: Assignment for students “to search guidelines for campus recruiting”

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 2. Direct Methods
b. Internships and Apprenticeships:
Apprenticeships and internships are significant in recruitment because they offer a way for companies to evaluate
candidates and assess their skills. They can also help to build relationships with potential employees, which can
lead to future employment.
c. Talent Pool Databases:
Talent Pool Databases should always be searched for applicants and candidates that were not hired but were
suitable enough to save. Most hiring decisions involve deciding between at least two or three candidates.
When a new vacancy comes up, search your talent pool for similar skills and experience. You could save yourself a
lot of time.

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 3. Indirect Methods
a. Advertisement:
These include advertisements in newspapers; trade, professional and technical journals; radio and television;
etc.
The ads generally give a brief outline of the job responsibilities, compensation package, prospects in the
organization, etc.
This method is appropriate when (a) the organization intends to reach a large target group and
(b) the organization wants a fairly good number of talented people who are geographically spread out.
To apply for the advertised vacancies, let briefly examine the wide variety of alternatives available to a
company as far as ads are concerned:
i. Newspapers ads.
ii. Television and Radio ads.

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 3. Indirect Methods
i. Newspapers ads:
• It has flexibility in terms of information and can conveniently target a specific geographic
location.
• On the negative side, newspaper ads tend to attract only those who are actively seeking employment
at that point of time, while some of the best candidates who are well paid and challenged by their
current job may not be aware of such openings.
• To maintain secrecy for various reasons, large companies with a national reputation may also go in for
blind-box ads in newspapers, especially for filling higher level positions.
ii. Television and Radio Ads:
• These ads are more likely to reach individuals who are not actively seeking employment; they are
more likely to stand out distinctly.
• They help the organization to target the audience more selectively and they offer considerable scope
for designing ads creativity.
• These ads are expensive, and since television or radio is simply seen or heard, potential candidates
may have a tough time remembering the details, making application difficult.
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 4. Third Party Methods
i. Private Employment Search Firms:
A search firm is a private employment agency that maintains computerized lists of qualified
applicants and supplies these to employers willing to hire people from the list for a fee.
Firms like Arthur Anderson, Noble and Hewitt, ABC consultants, SB Billimoria, KPMG, Ferguson
Associates offer specialized employment-related services to corporate houses for a fee, especially for
top and middle level executive vacancies.
Private search firms have many contacts and are especially good at contacting qualified, currently
employed candidates who are not actively looking to change jobs. They can keep the firm’s name
confidential till the deal is struck.
They advertise on their own and pre-screen hundreds of potential candidates.
On negative front, the fees charged by search firms could be very high, sometimes over 30% of the
annual salary of the position to be filled. And also these firms may be more interested in persuading a
firm to hire a candidate than in finding one who can deliver the results.

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 4. Third Party Methods
ii Employment Exchanges:
An Employment Exchange is a government office that provides employment assistance to job seekers. Candidates
registered with an Employment Exchange are sponsored to employers for recruitment to vacancies notified or
advertised.
As a statutory requirement, companies are also expected to notify (wherever the employment exchange act, 1959,
applies) their vacancies through the respective employment exchanges, created all over India for helping
unemployed youth, displaced persons, ex-military personnel, physically handicapped, etc.
It is applicable to each public sector establishment and to private sector establishment (except agriculture) where
25 or more persons are employed.
iii. Gate Hiring 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.

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 4. Third Party Methods
iii. Unsolicited Applicants/Walk-Ins:
Companies generally receive unsolicited applications from job seekers at various points of time.
Such applications are generally kept in a data bank and whenever a suitable vacancy arises, the company
would intimate the candidate to apply through a formal channel.
One important problem with this method is that job seekers generally apply to a number of
organizations and when they are actually required by the organization, either they are already employed
or are simply not interested in the position.
The walk-ins, in any case, should be treated courteously and diplomatically, for the sake of both
recruiting company’s community and the applicant’s self-esteem.

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 4. Third Party Methods
iii. Internet Recruiting:
The website offers a fast, convenient and cost effective means for job applicants to submit their resume
through the internet. Infosys Technologies Ltd., for example, get over 1000 resumes a day from
prospective candidates through the Net.
The resumes are then converted into a standard format using the software that the company has
developed for short listing candidates according to a set criteria such as alma mater, qualifications,
experience etc.
The problem lies in the fact that the website might be flooded with resumes from unqualified job
seekers.

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 Evaluation of the Sources of Recruitment
Companies have to evaluate the sources of recruiting carefully, looking at cost,
time flexibility, quality and other criteria – before earmarking funds for the
recruitment process. To facilitate the decision making process in this regards,
companies rely on the following:
1. Time lapse Data (TLD): They show the time lag between the date of
requisition for manpower supply from a department to the actual date of
filling the vacancies in that department. E.g., A company’s past experience
may indicate that the average number of days from application to
interview is 10, from interview to offer is 7, from offer to acceptance is 10
and from acceptance to report for work is 15. Therefore, the company
would need 42 days to complete the process. Armed with this
information, the length of time needed for alternative sources of
recruitment can be ascertained.
2. Yield Ratios: Yield ratios show what percentage of candidates pass from
one stage of the hiring process to another.
 Evaluation of the Sources of Recruitment
2. Yield Ratios: Yield ratios show what percentage of candidates pass from one stage of the hiring process to another.

3. Surveys and studies: Surveys may also be conducted to find out the particular source for certain positions. Correlation
studies on job success. In addition to these, data on employee turnover, grievances, disciplinary action would also throw light
on the relative strengths of a particular source of recruitment for different organizational positions.
SELECTION PROCESS

58
SELECTION PROCESS

Definition:
To select means to choose. Selection is the process of picking individuals who
have relevant qualifications to fill jobs in an organization. The basic purpose is
to choose the individual who can most successfully perform the job, from the
pool of qualified candidates.
Purpose:
• The purpose of selection is to pick up the most suitable candidate who
would best meet the requirements of the job and the organization.
• To meet this goal, the company obtains and assesses information about the
applicants in terms of age, qualifications, skills, experience, etc. The needs
of the job are matched with the profile of candidates.
• The most suitable person is then picked up after eliminating the less
suitable applicants through successive stages of the selection process.
SELECTION PROCESS

Purpose:
• Any mismatch in this regard can cost an organization a great deal in terms
of money, time and trouble, especially, by way of training and operating
costs.
• In course of time, the employee may find the job distasteful and leave in
frustration. He / She may even circulate ‘hot news’ and juicy bits of negative
information about the company, causing incalculable harm in the long run.
• Effective selection, therefore, demands constant monitoring of the ‘fit’
between the person and the job.
SELECTION PROCESS

61
 SELECTION PROCESS
1. Reception
2. Screening Interview
3. Application Blank
4. Selection Tests
5. Selection Interview

6. Medical Examination
7. Reference Checks
8. Hiring Decision
1. Reception

In order to attract people with talent, skills and experience, a

company has to create a favorable impression on the
applicants right from the stage of reception.
Whoever meets the applicant initially should be tactful and
able to extend help in a friendly and courteous way.
If no jobs are available at that point of time, the applicant
may be asked to contact the HR department after a suitable
period of time has elapsed.
2. Screening Interview

A preliminary interview is generally planned by large

organizations to cut the costs of selection by allowing only
eligible candidates to go through the further stages in
selection.
A junior executive from the HR department may elicit
responses from applicants on important items determining
the suitability of an applicant for a job such as age, education,
experience, pay expectations, aptitude, location etc.
3. Application Blank

Application blank or form is one of the most common methods used to

collect information on various aspects of the applicants such as:
• Personal data (Address, gender, identification marks)
• Marital Data (Single or married, children, dependents)
• Physical Data (Height, weight, health Condition)
• Educational Data (levels of formal education, marks, distinctions)
• Employment Data (past experience, promotions, nature of duties,
reasons for leaving previous jobs, salary drawn, etc.)
• Extra-curricular activities data (sports/games, NSS, NCC, prizes won,
leisure-time activities)
• References (names of two or more people who certify the suitability of
an applicant to the advertised position)
3. Application Blank

Weighted Application Blanks (WABs)

Some organizations assign numeric values or weights to
responses provided by applicants. Generally, the items that
have a strong relationship to job performance are given high
scores.
For Example, for a medical representative’s position, items
such as previous selling experience, marital status, age,
commission earned on sales previously etc., may be given
high scores when compared to other items such religion, sex,
language, place of birth, etc.
4. Selection Testing

A test is a standardized, objective measure of a person’s behavior, performance or

attitude.
It is objective in that it tries to measure individual differences in a scientific way,
giving very little room for individual bias and interpretation.
Some of the commonly used employment tests may be stated thus:
1. Intelligence Tests:
These are mental ability tests. The basic objective of intelligence tests is to pick up
employees who are alert and quick at learning things so that they can be offered
adequate training to improve their skills for the benefit of the organization.
Intelligence tests do not measure any single trait, but rather several abilities such
as memory, vocabulary, verbal fluency, numerical ability, perception, spatial
visualization etc.
Stanford-Binet, Binet-Simon test, The Wechsler Adult Intelligence Scale are
examples of standard intelligence tests.
4. Selection Testing

2. Aptitude Tests:
Aptitude tests measure an individual’s potential to learn
certain skills – clerical, mechanical, mathematical, etc.
These tests indicate whether or not an individual has the
ability to learn a given job quickly and efficiently.
Clerical tests, for example, may measure the incumbent’s
ability to take notes, perceive things correctly and quickly
locate things, ensure proper movement of files, etc.
Aptitude tests, unfortunately, do not measure on-the-job
motivation.
 4. Selection Testing

3. Personality Tests:
Of all the tests required for selection, personality tests have generated lot of heat and
controversy.
Personality tests are used to measure basic aspects of an applicant’s personality such as
motivation, emotional balance, self-confidence, interpersonal behavior, introversion, etc.
The most frequently used tests are the Minnesota Multiphasic Personality Inventory
(MMPL), the California Psychological Inventory, The Manifest Anxiety Scale, Edwards
Personal Performance Schedule, etc.
True False
Evil spirits possess me at times
I believe I am being followed
I am Fascinated by fire
I have never indulged in any unusual sex practices
I am a special agent of God
I day-dream very little
4. Selection Testing

4. Achievement Tests:
These are designed to measure what the applicant can do on the job currently, i.e,
whether the testee actually knows what he or she claims to know.
A typing test shows typing proficiency, a shorthand test measures the testee’s
ability to take dictation and transcribe, etc. Such profieciency test are also known
as work sampling tests. Work sampling is a selection test wherein the job
applicant’s ability to do a small portion of the job is tested.
These tests are of two types; Motor, involving physical manipulation of things
(e.g., trade tests for carpenters, plumbers, electricians) or verbal, involving
problem situations that primarily language-oriented or people-oriented (e.g.,
situational tests for supervisory jobs).
5. Simulation tests:
Simulation exercise is a test which duplicates many of the activities and problems
an employee face while at work. Such exercises are commonly used for hiring
managers at various levels in an organization.
 4. Selection Testing

5. Assessment Centre:
Initially a small batch of applicants come to the assessment center (a separate room). Their
performance in the situational exercises is observed and evaluated by a team of 6 to 8
trained assessors.
The assessors’ judgements on each exercise are compiled and combined to have a summary
rating for each candidate being assessed. The assessment center approach, thus, evaluates a
candidate’s potential for management on the basis of multiple assessment techniques,
standardized methods of making inferences from such techniques, and pooled judgments
from multiple assessors.
Work Sample Assessment Centre
Suitable for routine, repetitive jobs with visible outcomes Suitable for managerial jobs, the outcomes are not
behaviorally observable
Takes a few minutes to test the applicant Takes days to conduct various exercises

Evaluated by one supervisor Evaluated by a team of trained observers

Can be done on location where the applicant performs a small Requires a separate facility. The centers are conducted for a
segment of the job variety of task segments (that may not be the real job) that
may be included in the real job
Usually completed on one applicant at a time Usually performed on groups of applicants at the same time
4. Selection Testing

7. Graphology tests:
Graphology involves using a trained evaluator to examine the lines, loops, hooks,
strokes, curves and flourishes in a person’s handwriting to assess the person’s
personality and emotional make-up.
The recruiting company may, for example, ask applicants to complete application forms
and write about why they want a job. These samples may be finally sent to a
graphologist for analysis and the results may be put to use while selecting a person.
8. Polygraph (lie-detector) tests:
The polygraph records physical changes in the body as the test subject answers a series
of questions. (The lie detector consists of a rubber tube around the chest, a cuff round
the arm, and sensors attached to the fingers that record the physiological changes in
the examinee as the examiner puts questions that call for an answer of yes or no).
It records fluctuations in respiration, blood pressure and perspiration on a moving roll
of graph paper. The polygraph operator forms a judgement as to whether the subject’s
response was truthful or deceptive by examining the biological movements recorded
on the paper.
4. Selection Testing

Polygraphs, despite strong resistance by many applicants, are increasingly

being used by companies which have problems with inventory and
security of funds.
9. Integrity Tests:
These are designed to measure employee’s honesty to predict those who
are more likely to steal from an employer or otherwise act in a manner
unacceptable to the organization. The applicants who take these tests are
expected to answer several “yes” or “no” type questions, such as;
• Have you ever told lie?
• Do you report to your boss if you know of another employees stealing
from the store?
• Do you carry office stationery back to your home for occasional use?
• Do you mark attendance for your colleagues also?
5. Selection Interview

Interview is the oral examination of candidates for employment. This is

the most essential step in the selection process. In this step, the
interviewer tries to obtain and synthesize information about the abilities
of the interviewee and the requirements of the job. Interview gives the
recruiter an opportunity to:
• Size up the interviewee’s agreeableness;
• Ask questions that are not covered in tests;
• Obtain as much pertinent information as possible;
• Assess subjective aspects of the candidate – facial expressions,
appearance, nervousness and so forth;
• Make judgements on interviewee’s enthusiasm and intelligence;
• Give facts to the candidate regarding the company, its policies,
programs, etc., and promote goodwill towards the company.
5. Selection Interview

Types of Interviews
a) The Non-directive interview:
In a non-directive interview the recruiter asks questions as they come to mind. There is no
specific format and the questions can take any direction. The questions are open-ended.
b) The Directive or structured interview:
In the directive interview, the recruiter uses a predetermined set of questions that clearly
job related.
c) The Situational Interview:
One variation of the structured interview is known as the situational interview. In this
approach, the applicant is confronted with a hypothetical incident and asked how he/she
would respond to it.
d) The behavioral Interview:
The behavioral interview focuses on actual work incidents in the applicant’s past. The
applicant is supposed to reveal what he or she did in a given situation, for example, how
he/she disciplined an employee who was smoking inside the factory premises.
5. Selection Interview

Types of Interviews
e) Stress Interview:
In stress interview, the interviewer attempts to find how
applicants would respond to aggressive, embarrassing, rude
and insulting questions.
f) Panel Interview:
In a typical panel interview, the applicant meets with three to
five interviewers who take turns asking questions. After the
interview, the interviewers pool their observations to arrive at
a consensus about the suitability of the applicant.
6. Medical Examination

Certain jobs require physical qualities like clear vision, acute

hearing, unusually high stamina, tolerance or arduous
working conditions, clear tone of voice etc.
Medical examination can give the following Information:
i. Either the applicant is medically suitable for the job.
ii. Either the applicant has some health problems or
psychological attitudes likely to interfere with work
efficiency or future attendance.
iii. Whether the applicant’s physical measurements are in
accordance with job requirements or not.
7. Reference Checks

Once the interview and medical examination of the candidate

is over, the personnel department will engage in checking
references.
Candidates are required to give the names of two or three
references in their application forms.
These references may be from individuals who are familiar
with the candidate’s academic achievements, or from
applicant’s previous employer, who is well-versed with
applicant’s job performance, and sometimes from co-
workers.
8. Hiring Decision

The line Manager concerned has to make the final decision

now – whether to select or reject a candidate after soliciting
the required information through different techniques
discussed earlier.
The line manager has to take adequate care in taking the final
decision because of economic, behavioral and social
implications of the selection decisions.
After taking the final decision, the organization has to
intimate this decision to the successful as well as unsuccessful
candidates. The organization sends the appointment order to
the successful candidates either immediately or after some
time, depending upon its time schedule.
THANK YOU