Human resource management e notes

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Human resource management e notes

  1. 1. Projectsformba.blogspot.com Chapter : 1 Human Capital Management1.1 INTRODUCTIONAn organization is made up of four resources, namely men, material, moneyand machinery. Of these, the first one id living one, i.e. human resource andother three are non-living i.e.non human. It is the human/people that makeuse of non human resources. Hence, people are the most significantresources in an organization. It is man who makes all the difference inorganizations. L.F.Urwick had remarked that “business houses are made orbroken in the long run not by markets or capitals, patents or equipments, butby men”. According to Peter F.Drucker, “ man, of all the resources availableto man, can grow and develop.”The main objective of this chapter is to present a perspective for humancapital management in the Indian context. Accordingly the meaning,objectives, scope and functions become the subject matter of this chapter.Before we define HRM, it seems pertinent to first define the term “humanresources.” In common parlance, human resources mean people. ORPersonnel means the persons employed. Personnel management is themanagement of people employed. Organization may be a manufacturing firm, a business concern, aninsurance company, a governmental agency, social organizations, hospital, auniversity and even families. It may be small or large, simple or complex.An Organization is a human grouping in which work is done for theaccomplishment of some specific goals, or missions.1.2 MEANING & DEFINITION OF HUMAN RESOURCEMANAGEMENT1.2.1 Human Resource Management means:“The management of human resources is viewed as a system in whichparticipants seeks to attain both individuals of group goals”. 1
  2. 2. Projectsformba.blogspot.comIf an analysis is made of this definition it will be seen that personnelmanagement involves procedures and practices through which humanresources are managed (i.e. organized and directed) towards the attainmentof the individual, social and organizational goals. By controlling andeffectively using manpower resources, management tries to produce goodsand services for the society.1.2.2 Definitions:1.2.2a Human Resource Management involves all management decisionsand practices that directly affect or influence the people, or human resources,who work for the Organization. An organization’s employees enable anOrganization to achieve its goals, and the management of these humanresources is critical to an organization’s success.1.2.2b According to Process Systems View Human ResourceManagement means:“ Human Resource Management is the systematic planning, development,and control of a network of inter related process affecting and involving allmembers of an Organization”.Key Terms used in this definition:Process: Process is an identifiable flow of interrelated events movingtowards some goal, consequence and end. An example of the humanresource management is the staffing process, a flow of events that results inthe continuous filling of positions within the Organization. These eventsinclude such activities as recruiting applicants, making hiring decisions, andmanaging career transitions such as transfers and promotions. Flow: Flow implies movement through time and in the direction of a result; Inter-related: implies interaction within the process and between events; Goal and Consequence (Purpose): suggest a human objective; Events: are activities, happenings or change; End: implies some conclusion or consequence that may not necessarily be sought or planned by man.System: System is a particular set of procedures or devices designed tocontrol a process in a predictable way. For e.g. Staffing System of anOrganization. 2
  3. 3. Projectsformba.blogspot.comAs a process it includes: Human Resource Planning; Job and Work Design; Staffing; Training and Development; Performance Appraisal and Review; Compensation and Reward; Employee protection and representation; Organization Improvement.1.2.2c “Human Resource Management is the planning, organizing, directingand controlling of the procurement, development, compensation, integration,maintenance and separation of human resources to the end that individual,organizational and societal objectives are accomplished". Edward FlippoThis definition is a comprehensive and covers both the managementfunctions and the operative functions. The purpose of all these functions isto assist in the accomplishment of basic objectives.1.2.2 General Definition:“Personnel Management is the recruitment, selection, development,utilization of and accommodation to human resources by organizations. Thehuman resources of an organization consists of all individuals regardless oftheir role, who are engaged in any of the organizations activities”.1.3 Three aspects of Human Resource Management: Welfare Aspect: concerned with working conditions and amenities such as canteens, crèches, housing, personal problems of workers, schools and recreations; Labor or Personnel Aspect: concerned with recruitment, placement of employees, remuneration, promotion, incentives, productivity etc.; Industrial Relations Aspect: concerned with trade union negotiations, settlement of industrial disputes, joint consultation and collective bargaining. 3
  4. 4. Projectsformba.blogspot.com 1.4 Difference between Personnel Management and Human Resource Management Table: 1 Dimensions PM HRMNature of relations Pluralist Unitarist or neo-unitaristPerception of conflict Conflict is Conflict is pathological institutionalizedContract Emphasis on compliance Beyond contract commitmentRole of procedures Rules dominated Culture and values dominatedPlanning perspective Adhoc, reactive Integrated, proactiveAcceptability of Acceptable Non desirableunionsLevel of trust Low HighKey relation Labour management CustomerManagement’s Role Transactional TransformationalBasis of job design Division of labour TeamsKey people PM/IR specialist Line people and general mangersSkills acquisition Training and Learning Organization DevelopmentReward Management Standardized job Performance related evaluation 1.5Characteristics of Human Resource Management 1. Human Resource Management is concerned with managing people at work. It covers all levels of personnel, including blue collared employees and white collared employees; 2. It is concerned with employees, both as individuals as well as group; 3. Human Resource Management is concerned with helping the employees to develop their potentialities and capacities to the maximum possible extent, so that they may derive great satisfaction from their jobs; 4. It is a major part of the general management function and has roots and branches extending throughout and beyond each Organization; 5. Human Resource Management is of a continuous nature; 6. Human Resource Management attempts at getting the willing co- operation of the people for the attainment of the desired goals. 4
  5. 5. Projectsformba.blogspot.comHRM can be of full value to an Organization only when it is consistentlythroughout out and applied at all levels and to all management functions; incorporate policies, in the systems, procedures and in employment practices,etc. this integrative aspect of HRM is, therefore, of vital importance. Personnel Administratio Employee n Relations HRM Industrial Relations Fig, 11.6 Objectives of Human Resource ManagementObjectives are pre-determined ends or goals at which individual or groupactivity in an Organization is aimed. Objectives can be divided in to twoparts:1.6.1 Primary Objectives:  HRM’s main goal is the creation of a workforce with the ability and motivation to accomplish the basic organizational goals;  They relate to the satisfaction of the personal objectives of the members of an Organization through monetary and non monetary devices;  They relate to the satisfaction of community and social objectives, such as serving the customers honestly, promoting a higher standard of living in the community, bringing comfort and happiness to the society, protecting women and children and providing for aged personnel;  To utilize human resource effectively;  To establish and maintain a productive and self respecting relationship among all members of an Organization;  To establish and maintain an adequate organizational structure;  To bring about maximum individual development of the members of an Organization;  to maintain a high morale and better human relations inside an Organization by sustaining and improving the conditions 5
  6. 6. Projectsformba.blogspot.com which have been established so that employees may stick to their jobs for a longer period;1.6.2 Secondary Objectives:  The secondary objectives aim at achieving the primary objectives economically, efficiently and effectively.1.7 Functions of Human Resource ManagementAccording to different authors HRM functions can be divided in to differentcategories. Some of the categories are as follows: 1. General and Specific functions; 2. Personnel administration and Industrial relations functions. 3. Managerial and Operative functions 1.7.1 General and Specific functions:General Functions: To conduct personnel research; To assist in the programmes of personnel administration; To develop appraisal plans; To launch education and training programmes; To develop a competent work force; To establish and administer varied personnel services delegated to personnel department.Specific Functions: Employment; Safety; Wage and salary; Benefit Schemes; Community relations and Advice and counseling the employees. 1.7.2 Personnel Administration and Industrial Relations Functions:Personnel Administration:These functions relate to the function of managing people from the lower tothe upper level of the Organization and embraces policy determination aswell as implementation of policies by the personnel at the lower levels;Industrial Relations Functions: 6
  7. 7. Projectsformba.blogspot.comThese functions relate to interactions between the management and therepresentatives of the unions. Such functions involve all activities ofemployer employee relationship, such as Organization of the unionmembers, negotiations of contracts, collective bargaining, grievancehandling, disciplinary actions, arbitration etc- the purpose of all these beingto prevent conflict between two parties.1.7.3 Managerial and Operative Functions;Managerial Functions:Management is Personnel administration. It is the development of the peopleand not the direction of the things. Managing people is the heart and essenceof being a manager. Thus, a Human Resource Manager is a manager and assuch he performs the basic functions of management. Inputs Planning Organizing Directing Controlling Human and Determination Development Stimulation Assurance that Economic of short to of the Orgn. and directed action Resources long range Structure motivation of is taking place interacting plans to according to Organization according to with accomplish predetermined personnel predetermined environment Organization plans according to plans. al changes objectives predetermined plans Outputs Goods and services needed by theFeedback of significant deviations from planned performance organization customers (Managerial Functions) Fig: 2Operative Functions:These functions are concerned with the activities specifically dealing withprocuring, developing, compensating and maintaining an efficient workforce. These functions are also known as service functions. Procurement Function; Development function; 7
  8. 8. Projectsformba.blogspot.com Compensating function; Integrating function; Maintenance function.Managerial Functions: Planning: Is a predetermined course of action. Planning is a hard job, for it involves the ability to think, to predict, to analyze and to control the actions of its personnel and to cope with a complex, dynamic fluid environment. They bridge the gap from where we are to where we want to go. The two important features of planning are research and forecasting. The task of forecasting personnel needs in relation to changes in production or seasonal variations and the leveling out of differences in the production extremely important, both for employees and for management. Therefore, planning and decision making has to be undertaken much in advance of an action so that unforeseen or anticipated problems and events may be properly handled. This as also stressed by the saying: “ Good managers make things happen”. Organizing: An Organization is a means to an end. It is essential to carry out the determined course of action. Complex relationships exist between the specialized departments and the general departments as many top managers are seeking the advice of personnel manager. Thus, Organization establishes relationship among the employees so that they can collectively contribute to the attainment of company goals. Directing: Direction is an important managerial function in building sound industrial relations besides securing employee contributions. Co- ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. The personnel manager has to coordinate various managers at different levels as far as personnel functions are concerned. Personnel management function should also be coordinated with other functions of management like management of money, machine, and material. Controlling: Controlling involves checking, verifying and comparing of the actualize with the standards, identification of deviations if any and correcting of identified deviations. Thus, action and operation are adjusted to predetermined plans and standards through control.Fig. 3: Functions of Personnel Office/ Personnel Management. 8
  9. 9. Projectsformba.blogspot.com Functions of Personnel Office Managerial Functions Operative FunctionsPlanning Organizing Directing ControllingEmployment HRD Compensation Human Relations, Placement.H R P; Performance- Job Evaluation; Motivation;Recruitment; Appraisal; Wage & Salary Morale;Selection; Training; Quality- Circles. Orgn.Change & Dev.Induction; Mgmt. Dev. Fringe Benefits. Career Planning Operative Functions: The operative functions of human Resource Management are related to specific activities of personnel management e.g. employment, development, compensation & Relations. All these functions are interacted by managerial functions. Employment: Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. Human Resource Development: It is the process of improving, molding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc. based on present and future job and organizational requirements. This function includes Performance Appraisal, Training, Management Development, Career Planning and Development, Internal Mobility (Promotion, Demotion), Organizational Development. 9
  10. 10. Projectsformba.blogspot.com Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc. Human Relations: Practicing various human resource policies and programmes Loire employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and management. It is the process of interaction among human beings. Human relations is an area of management in integrating people in to work situation in a way that motivates them to work together productively, cooperatively and with economic, psychological and social satisfaction.1.8 Human Resource Management EnvironmentHR manager can’t perform his job in a vacuum as a number ofenvironmental factors affect the HRM. In fact, these factors influence theOrganization through human resources.Environment (with special reference to Human Resource Management):means the totality of all factors, which influence both the Organization andHRM sub system.Fig. 4: Environmental Scanning of HRM Technological MarketingGovernment & Legal Customers Orgn. Politics HRM Production Political TradeUnions Finance Orgn. Structure Economic Social & ReligiousThe environment furnishes the macro context and the Organization is themicro unit. The external environment is comprised of those factors, which 10
  11. 11. Projectsformba.blogspot.comaffect an organization’s human resources from outside the Organization.Important among them are: Economic; Social; Political; Governmental; Legal; Technological; Manpower in the country; Tradition and culture; Customers; Other organizations; Trade Unions in other organizations.1.8.1 Internal Environment:The internal environment also affects the job of a personnel manager. Theinternal environmental factors include Organization objectives, policies,organizational structure, and the functional areas of the Organization withwhich the personnel manager works continuously like finance, marketingand production. Impact of internal environment factors is profound as theyfrequently and closely interact with HRM function in an Organization.1.8.2 External Environment:The influence of external environment on HRM is also equally important,though the severity is comparatively less. People are essentially self-managing. In other words, while people manage other resources, themselvesmanage personnel. People themselves decide about the nature, time, andplace of their employment. And people react to the changing conditions andto the techniques of management unlike money, material and machine. Thechanges includes in the external environment are:  Technological obsolescence;  Cultural and social changes;  Changes in the policies of govt.;  Politics and the like.With the result, the work environment changes thereby affecting theirproductivity level. 11
  12. 12. Projectsformba.blogspot.comConsidering the complexities and the challenges in the HRM now and innear future management has to develop sophisticated techniques andefficient specialists to among the personnel on sound lines1.9 Functional Areas/ Scope of Human Resource Management1. Organizational planning, development and task specification;2. Staffing and Employment;3. Training and Development;4. Compensation, Wage and Salary administration;5. Motivation and Incentives;6. Employee services and Benefits;7. Employee records;8. Labor and Industrial Relations;9. Personnel Research and Personnel Audit.1.10 Role of HR PractitionerThe coordination and integration of activities in an organization just nothappen, it has to be worked out. People tend to head off in differentdirections- to go their own sweet way. They will jot necessarily cooperatewith one another. Thus, to begin with, the HR manager should have threemain objectives in mind: 1. To gain the commitment and cooperation of all the members in his work group; 2. To get the group into action to achieve agreed objectives; 3. To make the best use of the skills, energies and talents of all the members.In the modern era, the personnel manager typically performs a variety of theroles, such as a role of a conscience, of a counselor, a mediator, a companyspokesman, a problem solver and a change agent. He performs many roles asper needs of the situation. Such as: I. The conscience role is that of humanitarian who reminds the management of its moral and ethical obligations to its employees; II. The personnel manager plays the role of a counselor to whom the employees frequently go for consultation and with whom they discuss their marital, health, mental, physical and career problems; 12
  13. 13. Projectsformba.blogspot.com III. As a mediator, he plays the role of a peacemaker, offering to settle the disputes that may arise among individuals or groups. He acts a liaison and communicating link between an individual and a group and between labour and management; IV. The personnel a manger has always been a frequent spokesman for or representative of the company because he has a better overall picture of his company’s operation, since he deals intimately with many key organizational activities and functions; V. The personnel manager also acts as a problem solver with respect to the issues that involves human resources management and overall long range organizational planning; VI. He works as a change agent within the organization because he is best suited to introduce and implement major institutional changes. He takes initiative for installing organizational development programmes and convinces the top management of their need. It is he who alerts the top management regarding managerial obsolescence in his organization; VII. The personnel manager plays many other roles as well. Any matter which need someone’s attention and which no body wants to deal with is, often handled by the personnel department. Such activities may be peripheral but important and crucial to the efficient and effective operation of an organization.It has been now fully recognized that the basic role of the personnel managerif “the management of the manpower resources.” Such management isconcerned with “leadership” both in-group and individual relationship, andlabour management relations. It effectively describes the process ofplanning, and directing the application, development and utilization is nowconsidered as one of the four main functions, viz. finance, production,marketing, and human relations.The ideal personnel manager is not a “decision maker” but a counselor not“collector of responsibilities” but an “advisor” to help the management makemore reliable personnel decisions. In any organization it is these “line man”who determine the “personnel climate” for the entire organization. If thepersonnel man can meet the challenge of “staff role” he would make theeffective contribution to industry. 13
  14. 14. Projectsformba.blogspot.comPersonnel Role Welfare Role Administrative Fire Fighting/Legal Role RoleAdvisory: Research in Time keeping Grievance handlingadvising personnel andmanagement on organizationaleffective use of problemshuman resourcesManpower Managing Salary and wage Settlement ofplanning: services- administration disputesRecruitment, canteens,selection etc. transport etc.Training and Group Human engineering: Handlingdevelopment of dynamics: man machine disciplinary actionsline man group relationship counseling, motivation, leadership, communication etc.Measurement and - - Collective bargainingassessment ofindividual andgroup behavior- - - Joint consultation Table 2 1.11Evaluating HR Function Organizations can promote human excellence by offering a potential site for the flowering most forms of human excellence. Within an organization, if there is meritocracy, people compete for promotion and other rewards on the basis of good work rather than on the basis of “pull.” Recognition and rewards for creative ideas, discoveries, inventions, innovations etc. promote creative excellence. The human resource development movement in industry is aimed at facilitating organizationally useful individual growth and development. The more an organization promotes individual or team excellence, the more the organization itself is likely to excel because the work of any organization is dependent on the work of its individual members and employee groups. 14
  15. 15. Projectsformba.blogspot.comThe human factor across all organizations comprises three basic elements: 1. The people themselves who work in the organization; the skills and capabilities they possess and their attitude towards the company; 2. The management style prevalent in the organization, which usually stems from the top. The style may be aggressive, authoritarian, democratic or laissez faire and each type has a different impact on the way people work as individuals or in groups; 3. The organizational climate i.e. the work atmosphere in the company, as determined by the degree of interpersonal cooperation, the types of conflict resolution, the amount of trustworthiness, the prevalent organizational politics etc.;The quality of HRM practices prevalent in a particular organization can berated by scrutinizing the following factors:1.11.1Organization Climate: 1. Do people feel they are giving enough responsibility? 2. Do people know what is expected of them in the shape of objectives and standards of performance? 3. Do people see themselves being fairly rewarded for their work and feel that promotion policies are fair? 4. Do the employees feel that they belong to a worthwhile company and are valuable members of working teams? 5. Is there adequate feedback to people on their performance, whether it is good, bad or indifferent? 6. Is there sufficient to challenge in their jobs? 7. Are people given enough support by their managers or supervisors in the shape of guidance or help?1.11.2 Type of Management Style: 1. Does it tend to be Autocratic? 2. Does it tend to be Task centered or people centered? 3. Do managers tend to be distant or cold or approachable and friendly? 4. Do managers tend to be hard or soft on people? 5. Thus, an amalgamation of all the factors throws some light as an indicator of the quality of HRM practiced in an organization. 15
  16. 16. Projectsformba.blogspot.com PERSONNEL POLICIES The dictionary meaning of “policy” is a “planned action” and that “plan” is a policy. Policy making and planning are, therefore, synonymous. “A policy,” says Flippo, “is a man made rule of pre-determined course of action that is established to guide the performance of work toward the organization objective it is a type of standing plan that serves to guide subordinates in the execution of their tasks.” According to Calhoon, personnel polices constitute guides to action. They furnish the general standards or base on which decisions are reached. Their genesis lies in an organization’s values, philosophy, concepts and principles.” “Policies are statements of the organization over all purpose and its objective in the various areas with which its operation are concerned –personnel finance production marketing and so on.” AIMS AND OBJECTIVE OF PERSONNEL POLICIESThe aims of personnel policies should be/are: 1. To enable an organization to fulfill or carry out the main objective which have been laid down as the desirable minima of general employment policy; 2. To ensure that its employees are informed of these items of policy and to secure their cooperation for their attainment; 3. To provide such condition of employment and produces as will enable all the employees to develop a sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective manner; 4. To provide an adequate, competent and trained personnel for all levels and types of management; and motivated them; 5. To protect the common interest of all the parties and recognize the role of trade union in the organization. 6. To provide for a consultative participation by employee in the management of an organization and the framing of condition for this 16
  17. 17. Projectsformba.blogspot.com participation, which, however shall not take place in technical, financial or trading policy; 7. To provide an efficient consultative service which aims at creating mutual faith among those who work in the enterprise; • By developing management leadership which aims is bold and imaginative and guide by moral values; • By effectively delegating the human relation aspects of personnel function of line managers by enforcing discipline on the basis of cooperative understanding and humane application of rules and regulation; and • By providing for a happy relationship at all levels. 8. To establish the conditions for mutual confidence and avoidconfusion misunderstanding between the management and the workers, bydeveloping suggestion plans, joint management councils, work committees,etc., and by performance appraisal discussion; 9.To provide security of employment to workers so that may not be distracted by the uncertainties of their future; 10. To provide an opportunity for growth within the organization to person who are willing to learn and undergo training to improve their future prospects. 11. To provide for the payment of fair an adequate wages and salary to the workers so that their healthy cooperation may be ensure for efficient working of the undertaking; 12. To recognize the work and accomplishment of the employees by offering non-monetary incentives rewards; 13. To create a sense of responsibility on the part of those in authority, for the claims of employees as human being, who should be guaranteed protection of their fundamental rights and offered enough scope for developing their potential. ESSENTIAL CHARACTERSTICS OF A SOUND PERSONNEL POLICY 17
  18. 18. Projectsformba.blogspot.comThe main features of a good personnel policy are:1. The statement of any policy should be definite, positive, clear and easily understood by anyone in the organization so that what it proposes to achieve is evident.2. It should be written in order to preserve it against loss to stimulate careful consideration before its formulation and to prevent the promulgation of numerous, differing and temporary oral policies from multiple sources.3. It must be reasonably stable but not rigid, i.e., it should be periodically revised, evaluated, assessed and revised and should, therefore, be in tune with the challenge of changes in the environment and should have built in resilience for adjustment from time to time.4. It must be supplementary to the over-all policy of an organization, for if departmental policy were made such as to come into conflict and violet the company policy, it would be tantamount to insubordination. Peter drucker has observed: “the policies of an enterprise have to be balanced with the kind of reputation an enterprise wants to build up with special reference to the social and human needs, objectives and value.”5. It should be indicate that the management knows that workers prefer to deal with the management on an individual basis.6. It should recognize the desire of many workers for recognition as groups in many of their relationships.7. It should be formulated with due regard for the interests of all the concerned parties-the employers, the employees and the public community.8. It should be the result of a careful analysis of al the available facts.9. It must provide a two-way communication system between the management and the employees so that the latter are kept informed of the latest developments. In the organization and the employers are aware of the action and reaction of employees on particular issues. 18
  19. 19. Projectsformba.blogspot.com10.It should be consistent with public policy, i.e., with the spirit rather than the letter of the law, so that the intensions and settled course of an organization are appreciated in terms of public opinion from the standpoint of national, economic and social justice for the employees and for the community at large.11.All interested parties should generally know it.12.It must have not only the support of the management but also the co- operation of employees at the shop floor level and in the office.13.Before evolving such a policy, trade unions should be consulted in14.Matters of industrial relations; and the role of trade unions should be restricted only to this area.15.It should be progressive and enlightened, and must be consistent with professional practice and philosophy.16.It must make a measurable impact, which can be evaluate and qualified for the guidance of all concerned, especially in the field of the three ‘R’s of personnel management viz., recruitment, retainment and retirement.17.It should be uniform throughout the organization, though, in the light of local conditions, slight variation may be permitted in specific policies relating to staffing compensation, benefits and services.18.It should have a sound base in appropriate theory and should be translable into practices, terms and peculiarities of every department of an enterprise.19.Except in rare cases, policies should not prescribed detailed procedures. HUMAN RESOURCE PLANNING INTRODUCTION Planning is thought prior to actionPlanning has been visualized as a thought proper to action, embracing ascheme of action involving the determination of the strengths and 19
  20. 20. Projectsformba.blogspot.comweaknesses in the choice of the best course of action from the standpoint ofstrategy and programmes.The term “Plan” is defined as a forecast of future attainment and forms awritten statement of what will be the outcome of this action specifying atime period ranging from one year to five years.Meaning of Human Resource Planning:Is both a process and a set of plans. It is the process used by organisationsfor assessing the supply and demand for future human resources. In addition,an effective HR plan also provides the mechanisms that will be used toeliminate any gaps that may be exist between supply and demand. Thus HRplanning is process that is used to determine the number of employees to berecruited in to the organisation or the phased out of it.Human Resource Planning as a process involving the following activities:1. Forecasting of future human resource requirements;2. Task of inventorying present resources and assessing the extent to which these resources are optimally utilized;3. Anticipation of human resources problem, and4. Planning of necessary human resource programme.Manpower Planning Provides information in three dimensions: The estimated manpower requirements (including expectations of manpower utilization); The analysis of the external manpower market situation,& The resulting estimate of manpower availability from the two dimensions. Strategies for Manpower PlanningManpower planning involves the application of a set of 9 strategies:1. Collect, maintain and interpret relevant information regarding human resources;2. Report periodically manpower objectives, requirements and existing employment and allied features of manpower; 20
  21. 21. Projectsformba.blogspot.com3. Develop procedures and techniques to determine the requirements of different types of manpower over a period of time from the standpoint of organizational goals and modify these goals, if they make unrealistic demands for human resources;4. Develop measures of manpower utilization as a component of forecasts of manpower requirements along with –if possible- independent validation;5. Employ- if suitable- techniques leading to effective allocation of work with a view to improving manpower utilization;6. Conduct research to determine factors hampering the contribution of the individuals and groups to the organization with a view to modifying or removing these handicaps;7. Develop and employ methods of economic assessment of human resources reflecting its features as income generator and cost and accordingly improving the quality of decisions influencing manpower;8. Evaluate the procurement, promotion and retention of the effective human resources in the context of the forecast requirements of the enterprise; &9. Analyze the dynamic process of recruitment , promotion and loss to the organization and control these processes and organization structure with a view to encouraging the maximum individual and group performance without involving excessive costs. Reasons for Human Resource PlanningAll organizations perform human resource planning, either formally orinformally. The major reasons for employment planning are: More effective and efficient use of human resources: Human resources planning should precedes all other HRMactivities. Careful analysis of all HRM activities shows that theireffectiveness and efficiency, which result in increased productivity, dependon human resource planning. More satisfied and better developed employees: Employees who work for organizations that use good humanresource planning systems have a better chance to participate in planningtheir own careers and to share in training and development experiences.Thus they are likely to feel their talents are important to the employer, andthey have a better chance to utilize those talents; 21
  22. 22. Projectsformba.blogspot.com More effective equal employment opportunity planning:The govt. has increased its demands for equal employment opportunities.Insum, effective human resource planning ensures that HRM activities andprogramme will be built on a foundation of good planning. Proper planningshould cut down on the number of surprises that occur involving humanresource availability, placement and orientation. The HR Planning ProcessHR Planning involves four distinct phases or stages: Situation analysis or environmental scanning; Forecasting human resource records; Human resource supply analysis; Action plan development.Situation analysis and Environmental scanning: The first stage in HR Planning is where the HRM function andstrategic planning initially interact. The strategic plan must adapt toenvironmental circumstances, and the HRM function is one of the primarymechanisms that an organization can use during the adaptation process. Fore.g. rapid changes in the technological environment can force anorganization to quickly identify and hire employees with new skills thatpreviously weren’t needed by the organization. Without an effective HR plan to support the recruitment and selectionfunctions in the organization, it will be impossible to move fast enough tostay competitive. Thus, organizations are becoming more dependent on anability to gather relevant information about their environment and to react tothis information.Forecasting future demand for employees: The next phase of an effective HR Planning process isestimating not only how many but what kinds of employees will be neededin the future. Forecasting yields these advanced estimates or calculations ofthe organization’s staffing requirement. Although there are manyquantitative tools to help with forecasting, it is a process that involves agreat deal of human judgment. In addition, many successful HR planners 22
  23. 23. Projectsformba.blogspot.comalso rely heavily on their “gut instincts” about future conditions. For e.g.,planners at Unilever attribute much of their global successes to suchinstincts.Analysis of the supply of current Employees: The third phase of HR Planning id designed to answer thequestion “How many and what kind of employees do I currently have interms of the skills and training necessary for the future?” It should beobvious that this phase of HR Planning involves much more that simplycounting the number of current employees in the organisation. The major tool used to assess the current supply of employeesis the Skill Inventory. It is a list of names, certain characteristics and skillsof the people working for the organisation. It provides a way to acquire thesedata and makes them available where needed in an efficient manner.Action decisions in Human Resource Planning: After the HR Planning system has analyzed both the supply ofand demands for future workers, these two forecasts are compared todetermine what, if any, action should be taken. Whenever there is adiscrepancy between these two estimates, the organization needs to choose acourse of action for elimination the gap. No matter how good the HR Planning system is, an exact matchbetween supply and demand forecasts is rare. Even when overall estimatesare similar, there are frequently important gaps in certain subgroups. Thesedata become inputs to facilitate decisions about training, promotion,demotion and similar decisions.Action decisions with a shortage of employees: When employment specialists comparing demand to supplyfind the supply of workers is less than the demand, several possibilities areopen to the organization. If the shortage is small and employees are willingto work overtime, it can be filled with present employees. If there is shortageof highly skilled employees, training and promotions of present employees,together with the recruitment of lower skilled workers, are possibilities.Action decisions in surplus conditions: When comparison of employee demand and supply indicates asurplus, the alternative solutions include attrition, early retirements,demotions, layoffs, and terminations. Employee decisions in surplus 23
  24. 24. Projectsformba.blogspot.com conditions are some of the most difficult decisions managers must make, because the employees who are considered surplus are seldom responsible for the conditions leading to the surplus. A shortage of raw material such as fuel, or a poorly designed or marketed product can cause an organization to have a surplus of employees. Fig. 1: Human Resource Planning Process Strategic Management Human Resource Human Resource Decisions Demand SupplyTechnological Forecasts; Annual Employment Existing Employment Economic Forecasts; Requirements; Inventory; Market Forecasts; Numbers; After Application ofOrganisational Planning; Skills; Expected Loss and Investment Planning; Occupational Categories. Attrition rates.Annual Operating Plans. Variances End If None: If surplus If Shortage Decisions: Decisions: Layoff etc. Overtime etc. End End In short, Human Resource Planning is a process by which the management of an organization ensures that it has the right number and kind of people at the right places and at the right times to successfully achieve its overall objectives. Human Resource planning differs from Manpower Planning in the sense that the former is primarily concerned with the human aspects of people, the latter mainly concentrates on the power of the people. 24
  25. 25. Projectsformba.blogspot.com Long Answer Type Questions 1. What do you understand by Human Resource Planning? Explain with suitable illustrations the process of Manpower Planning. 2. Discuss the problems faced in Human Resource Planning. How can these problems be overcome? 3. “The Human Resource Planning is becoming more and more important and complex with organizations are becoming more global ”. Comment. 4. What do you mean by Personnel Policy? Explain the objectives behind implementation of Personnel Policies in an organization? 5. Explain various features of Personnel Policies of an organization. 6. What is meant by the term Human Resource? What does Human Resource Management mean? 7. What is the difference between Human Resource Management and Personnel Management? 8. Elucidate the role and functions of an effective Human Resource Manager? 9. Write a short note on the various HRM Programmes which could be implemented in the organizational set up? 10.Enlist some key organizational indicators, which could highlight the practice of favorable HRM policies in the work set up? 11.Discuss the issues impending on future HR managers.------------------------------------------------------------------------------ 25
  26. 26. Projectsformba.blogspot.com Human Resource Management Unit 2 Job AnalysisJob Analysis is one of the most important functions of Human ResourceManager. Performance Appraisal, Job Designing, Personnel selection,employee training, career development and planning are among the manyactivities that depends upon the information gathered in the job analysis.Key terms:Job: A job may be defined as “a collection or aggregation of tasks, dutiesand responsibilities which as a whole is regarded as a regular assignment toindividual employees”. Putting in different words the meaning of a job canbe described as a pocket containing differentiated set of total workload in anorganization.Position: Position is collection of tasks and responsibilities regularlyassigned to a person.It is to be noted that job is impersonal and position is personal.Today, however, the word job has many mutations depending upon how,when and by whom it is used. It is often used interchangeably with the termslike position and tasks. Before proceeding with a detailed discussion on “jobAnalysis” it would be fruitful to familiarize ourselves with terms that formspecific job attributes.Fig. Relationship among the different job components: 9 8 7 6 5 4 3 2 26
  27. 27. Projectsformba.blogspot.com 1 1 – Micro Motion 2 – Elements 3- Tasks 4- Duties 5- Positions 6- Job 7- Job Family 8- Occupation 9- CareerMicro Motion: The simplest unit of work is the micro motion. A micromotion involves a vary elementary movement such as reaching differentwork performed in an organization can be traced from a micro motions to anoccupation grasping, positioning and releasing an object. It is the mostelementary unit in to which a job can be broken down.Elements: An element is alignment of two or more micro motions to make abasic movement like picking up an object.A task is congregation of elements to constitute an activity for a specificpurpose like preparing a lecture. Two or more related tasks performed incarrying out specific job responsibilities are referred to as duty.A position constitutes specific duties and tasks group together. In anorganization there may be one or more person assigned a position. Aposition constitutes the whole unit of work assignmentJob: When positions are combined they create a job.A job family is a group of two or more jobs that either call for similarworker characteristics or contain parallel work tasks as determined by jobanalysis.Occupation: A grouping of similar jobs or job families across organizationsis termed as occupation.A Career represents a sequence of positions, jobs or occupations that aperson has over his or her working life. 27
  28. 28. Projectsformba.blogspot.comHaving familiarized oneself with the basic conceptual framework which actsas foundation stone for the knowledge on job analysis, we shall now proceedwith a step-by-step discussion of the main topics. Job AnalysisJob Analysis is a written record of actual requirements of the jobactivities.Definitions:“Job Analysis is the process of determining and reporting pertinentinformation relating to the nature of a specific job.” Bayers and RueIt is the determination of tasks, which comprise the job of the skills,knowledge, abilities, and responsibilities required of the holder for thesuccessful job performance. Putting it in other words it is the process ofgetting information about the job incumbent’s skills, education and trainingto carry out the job effectively and terms on time for completion,performance standard.It is procedure by which pertinent information is obtained about a job, i.e. itis detailed and systematic study of information relating to the operations andresponsibilities of a specific job.A job analysis results in two important documents: • Job Description; • Job Specification.Job Description:Job description is written record of the duties, responsibilities andrequirements of particular jobs. It is concerned with the job itself and notwith the work. It is a statement describing the job in such terms as its title,location, duties, working conditions and hazards. In other words, it tells us“What to be done, and how it is to be done and why.” It is a standard offunction, in that it defines the appropriate and authorized contents of a job. 28
  29. 29. Projectsformba.blogspot.comJob Specification:Job specification is a standard of personnel and designates the qualitiesrequired for an acceptable performance. It is a written record of therequirements sought in an individual worker for a given job. In other words,it refers to a summary of the personnel characteristics required for a job. It isa statement of the minimum acceptable human qualities necessary for theproper performance of a job. Purpose and Uses of Job AnalysisJob Analysis is not useful but an essential part of organizational strategies toserve the following purposes: • Organization and Manpower Planning: It is helpful in organization planning, for it defines labour needs in concrete terms and coordinates the activities of the work force, and clearly divides duties and responsibilities; • Recruitment and Selection: By indicating the specific job requirements of each job (i.e. the skills and knowledge), it provides a realistic basis for the hiring, training, placement, transfer and promotion of personnel. “Basically, the goal is to match the job requirements with a worker’s aptitude, abilities and interests”. It also helps in charting the channels of promotion and in showing lateral lines of transfer; • Wage and Salary Administration: By indicating the qualification required for doing a specified job and the risks and hazards involved in its performance, it helps in salary and wage administration. Job analysis is used as a foundation for job evaluation; • Job Re-Engineering: Job Analysis provides information, which enables us to change jobs in order to permit their being managed by personnel with specific characteristics and qualification. • Employee Training and Management Development: Job Analysis provides the necessary information to the management of training and development programmes. It helps to determine the content and subject matter of in training courses. It also helps in checking application information, interviewing, weighing test results, and in checking references. 29
  30. 30. Projectsformba.blogspot.com • Performance Appraisal: It helps in establishing clear cut standards which may be compared with the actual contribution of each individual; • Health and Safety: It provides an opportunity for identifying hazardous conditions and unhealthy environmental factors so that corrective measures may b taken to minimize and avoid the possibility of accidents. • Employee Orientation: Effective job orientation cannot be accomplished without a clear understanding of the job requirements. The duties and responsibilities of a job must be clearly defined before a new employee can be taught how to perform the job. • Utilizing Personnel: Job Analysis information can help both employees and managers, pinpoint the root of a problem if employee functions are not adequate.In sum, it may be noted that job analysis is a systematic procedure forsecuring and reporting the information, which defines a specific job.Steps in Job Analysis/ProcessThe major steps to be followed in carrying out job analysis in anorganization can be described as follows:Step 1: Studying job vis a vis the organization: Review the available Background information through organization workflow or process charts. Studies the job inter relationships. Often, a restructuring,down sizing, merger, or rapid growth will initiate this review.Step 2: Selection of uses of job analysis information: Be selective regarding the future uses of job analysis. The employee or the manager may request a job analysis to determine the appropriate compensation, but they also be interested in formally documenting changes in recruitment, placement and training for a particular job. Step 3: Identify the “job” to be analyzed: it is always advisable to choose flow representative and key positions for job analysis, thus avoiding unnecessary time and financial expenditure. Step 4: collection of Job Analysis data: manager should consider using a number of different methods of data collection because it is 30
  31. 31. Projectsformba.blogspot.com unlikely that any one method will provide all the necessary information needed. Three of the most popular form of data collection is: • Observation of tasks and behavior with the job incumbent i.e. both physical and mental activities; • Interviews; • Questionnaires and checklists;Step 5: Develop a Job Description: Highlight the major tasks, pertaining to effective job performance through the written description;Step 6: Develop a Job Specification: Transcript the information obtained after step 4 highlight what personal qualities, trait, skills, background is necessary for optimal job performance. Job Performance Observation Degree of Interview interaction Critical incident technique withData Collection methods Questionnaires personal Diary method Training material Dictionary of occupationStep 7: Review and update of information: If no major changes have occurred in the organization, then a complete review of all jobs should be performed every three years. Review & Update of information Develop a job specification Develop a job description Collection of job analysis data Identify the job to be analyzed Selection of uses of job analysis information Studying job visContents of Job Analysis a vis the organisation 31
  32. 32. Projectsformba.blogspot.comA job Analysis provides the following information: 1. Job Identification; 2. Significant characteristics of a job; 3. What the typical worker does; 4. Which materials and equipment of a worker uses; 5. How a job is performed; 6. Required personnel attributes; 7. Job relationship.It is obvious from the foregoing that a job analysis is usually a clearindication of a job description and job specification.RecruitmentSuccessful human resource planning should identify our human resourceneeds. Once we know these needs, we still want to do something aboutmeeting them. The next step in the acquisition function, therefore, isrecruitment. This activity makes it possible for us to acquire the number andtypes of people necessary to ensure the continued operation of theOrganisation.Recruiting is the discovering of potential candidates for actual oranticipated organizational vacancies or from other perspective, it is a linkingactivity- bringing together those with jobs to fill and those seeking jobs.“ Recruitment a process to discover the sources of manpower to meet therequirements of the staffing schedule and to employ effective measures forattracting that manpower in adequate numbers to facilitate effective selectionof an efficient working force” Yoder & others“It is a process of searching for prospective employees and stimulating andencouraging them to apply for jobs in an Organisation. It is often termedpositive in that it stimulates people to apply for jobs to increase the “hiring”ratio i.e. the no. Of applicants for a job.” Flippo Technically speaking, the function of recruitment precedes the selection function and it includes only finding, developing the sources of 32
  33. 33. Projectsformba.blogspot.com prospective employees and attracting them to apply for jobs in an organization, whereas the selection is the process of finding out the most suitable candidate to the job out of the candidates attracted (recruited). Objectives of recruitment:♦ To attract people with multi dimensional skills and experience that suit the present and future organizational strategies;♦ To induct outsiders with a new perspective to lead the company;♦ To infuse fresh blood at all levels of the Organisation;♦ To develop an organizational culture that attracts competent people to the company;♦ To search or head hunt/ head pouch people whose skills fit the company’s values;♦ To devise methodologies for assessing psychological traits;♦ To seek out non-conventional development grounds of talent;♦ To search for talent globally and not just with in the company;♦ To design entry pay that competes on quality but not on quantum;♦ To anticipate and find people for positions that does not exist yet. Fig. 1:Recruiting and other Human Resource Management activities Human Recruiting Job SelectionResource ApplicationsPlanning Which provides new employees for ♦ Orientation; ♦ Training/ Development; ♦ Etc. 33
  34. 34. Projectsformba.blogspot.com Factors affecting RecruitmentThere are a number of factors that affect recruitment. These are broadlyclassified in to two categories: 1. Internal Factors; 2. External Factors.External Factors: The external factors include supply of and demand forhuman resources, employment opportunities and /or unemployment rate,labour market conditions, political and legal requirement and govt. Policies,social factors, information systems etc.External factors: Socio economic factors; Supply and demand factors; Employment rate; Labour market conditions; Political, legal and governmental factors; Information systems.Internal Factors: The internal factors include the company’s pay packageincluding salary, fringe benefits and incentives, quality of work life,organizational culture, career planning, growth opportunities, size of thecompany, company’s product and services, company’s growth rate, role oftrade unions and cost of recruitment.Internal factors: Company’s pay package; Quality of worklife; Organizational culture; Career planning and growth; Company’s size; Company’s products and services; Geographical spread of the company’s operations; Company’s growth rate; Role of trade unions; 34
  35. 35. Projectsformba.blogspot.com  Cost of recruitment;  Company’s name and fame. Internal Environmental External Environmental Influences: Influences: ♦ Strategy; ♦ The union; ♦ Goals; ♦ Govt. Requirements, regulations and laws; ♦ Organizational Culture; ♦ Economic conditions; ♦ Nature of the task; ♦ Composition of the labour ♦ Work Group; Effectiveness People Criteria:HRM activities:  Abilities;  Performance;♦ Equal employment  Attitudes  Satisfaction; opportunities;  Preference  Absenteeism;♦ Job analysis; s;  Turnover;♦ Recruitment;  Scrap rates;♦ Planning;  Grievance rates;  Organisation End♦ Selection; Results;  Accident rates.♦ Training and development;  Competitive♦ Career planning and products; development;  Competitive♦ Benefits and services; services.♦ Discipline; Sources of Recruitment Recruitment is more likely to achieve its objectives if recruiting sources reflect the type of position to be filled. Sources are those where prospective employees are available like employment exchanges while techniques are those, which stimulate the prospective employees to apply for jobs like nomination by employees, advertising, promotion etc. Certain recruiting sources are more effective than others for filling certain types of jobs are. The sources of recruitment are broadly classified in to internal sources and external sources. 35
  36. 36. Projectsformba.blogspot.comInternal Sources: are the sources within organizational pursuits. It includes(a) Present permanent employees; (b) present temporary/ casual employees;(c) retrenched or retired employees; (d) dependents or deceased, disabled,retired and present employees; (e) Promotions; (f) Transfers.  Present Permanent Employees: Organizations consider the candidates from this source for higher-level jobs due to: (1) availability of most suitable candidates for jobs relatively or equally to the external source, (2) to meet the trade unions demands; (3) to the policy of the Organisation to motivate the present employees.  Present temporary or Casual employees: Organizations find this source to fill the vacancies relatively at lower levels owing to the availability of suitable candidates or trade and pressures or in order to motivate them on the present job.  Retrenched or Retired employees: Generally a particular Organisation retrenches the employees due to lay-off. The Organisation takes of the candidates for employment from the retrenched employees due to obligation, trade union pressure and the like. Sometimes the organizations prefer to re employ their retired employees as a token of their loyalty to the Organisation or to postpone some inter personal conflicts for promotion etc.  Dependents of Deceased, Disabled, Retired and Present Employees: Some organizations with a view to developing the commitment and loyalty of build up image provide employment to the dependent(s) of deceased, disabled and present employees. Such organizations find this source as an effective source of recruitment.  Promotions: Most of the internal candidates would be stimulated to take up higher responsibilities and express their willingness to be engaged in the higher level jobs if management gives them the assurance that they will be promoted to the next higher level.  Transfers: Employees will be stimulated to work in the new sections or places if management wishes to transfer them to the places of their choice.Why do organizations prefer Internal Source? Internal recruitment can be used as a technique of motivation; Morale of the employees can be improved; Suitability of the internal candidates can be judged better than the external candidates as “known devils are better than unknown angles”; 36
  37. 37. Projectsformba.blogspot.com Loyalty, commitment, a sense of belongings and security of the present employees can be enhanced; Employee’s psychological needs can be met by providing an opportunity for advancement; Employees economic needs for promotion, higher income can be satisfied; Cost of selection can be minimized; Cost of training, induction, orientation, period of adaptability to the Organisation can be reduced; Social responsibility towards employees may be discharged; Stability of employment can be ensured.Why organizations don’t prefer internal sources? It often leads to inbreeding and discouraging new blood from entering in an Organisation; There are possibilities that internal source may “dry up”, and it may be difficult to find the requisite personnel from within an Organisation; Since the learner does not know more than the lecturer does, no innovations worth the name can be made. Therefore, on jobs which require original thinking (such as advertising, style designing and basic research), this practice is not followed; As promotion is based on seniority, the danger is that really capable hands may not be chosen. The likes and dislikes of the management may also play an important role in the selection of personnel. External Sources: External Sources are those sources, which are outside the organizational pursuits. These sources include: (1) Campus Recruitment; (2) Private Employment Agencies/ Consultants; (3) Public Employment Exchanges; (4) Professional Associations; (5) Data Banks; (6) Casual Applications; (5) Similar Organizations; (6) Trade Unions; (7) Advertisements; (8) Employee Referrals.  Campus Recruitment: different types of organizations like industries, business firms, service organizations, social or religious organizations can get inexperienced candidates of different types from various educational institutions like colleges and universities imparting education in science, commerce, arts, engineering and technology, agriculture. Medicines from the training institutes. Most of the universities and institutes imparting technical education in various disciplines provide facilities for campus recruitment and selection. 37
  38. 38. Projectsformba.blogspot.comFig.3 process of Campus Recruitment: Form manpower Identify campuses to recruit on addition plan Conduct pre-placement Tasks Secure place in the queue on each campus Check application form of candidates Conduct written test for Interview intensively for knowledge competence Cross check for Identify suitable candidates inconsistencies Stay in touch with those who Make job offers accept Advice through Provide support Continue final year’s to ease stress informal specialization interaction Employment Agencies: These agencies or consultants perform the recruitment function on the behalf of a client company by charging fee. Line mangers are relieved from recruitment functions so they can concentrate on their operational activities and recruitment functions are entrusted to a private agency or consultants. These agencies are also called Executive Search Companies. Public Employment Agencies: The govt. set up Public Employment exchanges in the country to provide information about vacancies to the candidates and to help the organizations in finding out suitable 38
  39. 39. Projectsformba.blogspot.com candidates. Public sector and private sector industries have to depend on public employment exchanges for the specified vacancies. Professional Organizations: Professional organizations maintain complete data of their members and provide the same to various organizations on requisition. They also act as an exchange between their members and recruiting firms in exchanging information, clarifying doubts etc. Data Banks: The management can collect the bio data of the candidate from different sources like employment exchanges, educational Training Institutes, candidates etc. and feed them in the computer. It will become another source and the company can get the particulars as and when they need. Casual Applicant: Depending upon the image of the Organisation, its prompt response, participation of the Organisation in the local activities, level of unemployment, candidates apply casually for the jobs through mail or hand over the applications in Personnel Department. This would be a suitable source for temporary and lower level jobs. Trade Unions: Generally, unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leader with a view to getting suitable employment due to latter’s intimacy with management. Similar Organizations: Generally, experienced candidates are available in organizations producing similar products or are engaged in similar business. The management can get most suitable candidates from this source. This would be the most effective source for executive positions and for newly established organizations or diversifies or expanded organizations. Advertising: Advertising is widely accepted technique of recruitment, though it mostly provides one-way communication. It provides the candidates in different sources, the information about the job and company and stimulates them to apply for jobs. It includes advertising through different media like newspapers, magazines of all kinds, radios, television etc. Employee referrals: Friends and relatives of present employees are also a good source from which employees may be drawn. When the labour market is very tight, large employers frequently offer their employee’s bonuses or prizes for any referrals that are hired and stay with the company for a specific length of time.Modern sources or techniques of Recruitment: 39
  40. 40. Projectsformba.blogspot.com WALK IN: The busy organizations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore, they advise the potential candidates to attend for an interview directly and without a prior application on a specified place. The suitable candidates among the interviewees will be selected for appointment after screening the candidates through tests and interviews. Consult In: The busy organizations encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates from among such candidates through the selection process. Head Hunting: The companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advise the company regarding the filling up of the positions. headhunters are also called search consultants. Body shopping: Professional organizations and the hi tech training institutes develop the pool of human resources for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise, the organizations themselves approach the prospective employees to place their human resources. These institutions are called body shoppers and these activities are known as body shopping. Business Alliances: Business alliances like acquisitions, mergers, and takeovers help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis. Tele Recruitment: The technological revolution in the Tele communication helped the organizations to use Internet as a source of recruitment. Organizations advertise the vacancies through the World Wide Web (www) Internet. The job seekers send their applications through e-mail or Internet.In short: successful and effective recruitment programme necesseciates tohave certain attributes such as:  A well defined recruitment policy;  A proper organizational structure;  A well laid down procedure for locating potential job seekers; 40
  41. 41. Projectsformba.blogspot.com  A suitable method and technique for tapping and utilizing these candidates;  A continuous assessment of effectiveness of recruitment programme and incorporation of suitable modifications from time to time to improve the effectiveness of the programme;  An ethically sound and fool proof practice telling an applicant all about the job and its position, the firm to enable the candidate judiciously decide whether or no to apply and join the firm, if selected.SELECTIONSelection procedure is concerned with securing relevant informationabout an applicant. The objective of the selection decision is to choosethe individual who can most successfully perform the job from the poolof qualified candidates.The selection procedure is the system of functions and devices adoptedin a given company to ascertain whether the candidate’s specificationsare matched with the job specifications and requirements or not.The selection procedure cannot be effective until and unless:1. Recruitment’s of the job to be filled, have been clearly specified (Job analysis, etc.2. Employee specifications (physical, mental, social, behavioral, etc.) have been clearly specified;3. Candidates for screening have been attracted. SELECTION PROCEDUREThere is no standard selection process that can be followed by allcompanies in all the areas. Companies may follow different selectiontechniques or methods depending upon the size of the company, natureof the business, kind and no. Of persons to be employed, govt.regulations to be followed etc. 41
  42. 42. Projectsformba.blogspot.com Application Form Written Examination Preliminary Interview Group Discussion Tests Final Interview Medical Examination Reference Checks Line Manager’s Decisions Application Form: Also known as application blank. This technique is widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary stage. Information is generally required on the following items in the application forms: a) Personal background information; b) Educational attainments; 42
  43. 43. Projectsformba.blogspot.com c) Work experiences; d) Salary; e) Personal details; f) References. Written Examination: The organizations have to conduct examination for the qualified candidates after they are screened on the basis of the application blanks so as to measures the candidate’s ability in arithmetical calculations, to know the candidates attitude towards the job, to measure the candidate’s aptitude, reasoning, knowledge in various disciplines, general knowledge and English language. Preliminary Interview: The Preliminary interview is to solicit necessary in formation from the prospective applicants and to assess the applicant’s suitability to the job. This step is useful as a process of eliminating the undesirable and unsuitable candidates. Group Discussions: The technique of group discussion is used in order to secure further information regarding the suitability of the candidates for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and are asked to discuss either a case study or a subject matter. Tests: The next stage in the selection process is conducting different tests. The objective of tests is to solicit further information to assess the employee suitability to the job. The important tests are: • Aptitude Test: a) Intelligence test b) Mechanical Test c) Psychomotor Test d) Clerical Test • Achievement Test: a) Job Knowledge Test; b) Work Sample Test. • Situational Test: a) Group Discussion; b) In Basket. • Interest Test: • Personality Test: a) Objective Test; b) Projective Test. 43
  44. 44. Projectsformba.blogspot.com• Aptitude Tests: These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided in to general and mental ability or intelligence or specific aptitudes such as mechanical, clerical, manipulative capacity etc. These are: 1. Intelligence Tests: These tests in general measure intelligence quotient of a candidate. In detail these tests measures capacity for comprehension, reasoning, word fluency, verbal comprehension, numbers, memory and space. 2. Mechanical Tests: These tests measure the capacities of spatial visualization, perceptual speed and knowledge of mechanical matter. 3. Psycho meter Tests: These tests measure abilities like manual dexterity, motor ability and eye hand coordination of candidates. 4. Clerical Aptitude: Measure specific capacities involved in office work, items of this test include spelling, computation, comprehension, copying, word measuring etc.• Achievement Tests: These tests are conducted when applicants claim to know something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of specific achievement when an Organisation wishes to employ experienced candidates. These are:1. Job Knowledge Test: Under this test a candidate is tested in the knowledge of a particular job.2. Work Sample Test: Under this test a portion of the actual work is given to the candidate as a test and the candidate asked to do it.• Situational Test: This test evaluates a candidate in a similar real life situation. In this test the candidate is asked either to cope with the situation or solve critical situation of the job.1. Group Discussion: This test is administered through group discussion approach to solve a problem under which candidates are observed in the areas initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, co-ordination and concluding skills.2. In Basket Test: The candidate in this test is supplied with actual letters, telephone and telegraphic message, reports and requirements by various officers of the Organisation, adequate information about the job and Organisation. The candidate is asked to take decisions on various items based on the in basket information regarding requirements in the memoranda. 44
  45. 45. Projectsformba.blogspot.com• Interest Tests: These tests are inventories of the likes and dislikes of candidates in relation to work, job, occupations, hobbies and recreational activities.• Personality Tests: These tests prove deeply to discover clues to an individual’s value system, his emotional reactions, and maturity and characteristic mood.1. Objective Test: most personality tests are objective tests as they are suitable for group testing and can be scored objectively.2. Projective tests: Candidates are asked to project their own interpretation of certain standard situations basing on ambiguous pictures, figures etc., under these tests Final Interview: Final Interview is usually followed by testing. This is the most essential step in the process of selection. In this step the interviewer matches the information abstained about the candidate through various means to the job requirements and to the information obtained through his own observation during interview.Types Of Interview: Type Type of questions Usual applications A predetermined Useful for valid results,Structured checklist if questions, especially when dealing usually asked of all with large number of applicants. applicants.Unstructured Few, if any, planned Useful when the questions. Questions are interviewer tries to made up during the probe personal details of interview. the candidate to analyze why they are not right for the job.Mixed A combination of A realistic approach that structured and yields comparable unstructured questions, answers plus in depth which resembles what, insights. is usually done in practice.Behavioral Questions limited to Useful to understand hypothetical situations. applicant’s reasoning Evaluation is based on and analytical abilities 45
  46. 46. Projectsformba.blogspot.com the solution and under modest stress. approach of the applicant.Stress A series of harsh, rapid- Useful for stressful jobs, fire questions intended such as handling to upset the applicant. complaints. Medical Examination: Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone etc. Medical examination reveals whether or not a candidate possesses these qualities. Reference Checks: After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of reference in their application forms. In case the reference check is from the previous employer, information for the following areas may be obtained. They are: job title, job description, period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again etc. Final decision by the line manager concerned: The line manager concerned has to make the final decision whether to select or reject the candidate after soliciting the required information through different techniques. A true understanding between the line managers and personnel mangers should be established to take proper decisions. Employment: Thus, after taking the final decision the Organisation has to intimate the decision to the successful as well as unsuccessful candidates. The Organisation sends the appointment orders to the successful candidates either immediately or after sometime depending upon the time schedule.PlacementWhen once the candidate reports for duty, the Organisation has to placehim initially in that job for which he is selected. Immediately thecandidate will be trained in various related jobs during the period ofprobation of training or trial. The Organisation, generally, decides thefinal placement after the initial training is over on the basis ofcandidate’s aptitude and performance during the training/probationperiod. Probation period generally ranges between six months and twoyears. If the performance is not satisfactory, the Organisation may 46
  47. 47. Projectsformba.blogspot.comextend the probation or ask the candidate to quit the job .If theemployee performance during the probation period is satisfactory, hisservices will be regularized and he will be placed permanently on a job.Fig. 6: Employee Placement Process Collect data about the employee Construct the employee’s profile Match between sub group profile and individual’s profile Compare sub-group profile to job family profile Match between job family profiles and sub-group profiles Assign the individuals to job familyAssign the individual to specific job after further counseling andassessmentPlacement is “the determination of the job to which an acceptedcandidate is to be assigned and his assignment to that job. It is amatching of what the supervisor has reason to think he can do with thejob demands (job requirements), it is a matching of what he imposes (instrain, working conditions) and what he offers in the form of pay roll,companionship with others, promotional possibilities etc. It is not easyto match all factors to the new employee who is still unknown to many.So the new employee is placed as a probationer until the trial period isover. INDUCTIONIntroducing the new employee who is designated as a probationer to thejob, job location, surroundings, Organisation, organizationalsurroundings, various employees is the final step of employmentprocess. This process is important because of the high turnover rateamong the new employees compared to that among senior employees.This is mainly because of the problem of adjustment and adaptability tothe new surroundings and environment. further absence of information,lack of knowledge about new Organisation, cultural gap, and behavioral 47
  48. 48. Projectsformba.blogspot.comvariations, different levels of technology, variations in the requirementsof the job and the Organisation also disturb the new employee. Induction is necessary as the newcomer feel insecure, shy,nervousness and disturbing. This situation leads to instability andturnover.“Induction is the process of receiving and welcoming an employee when hefirst joins a company and giving him the basic information he needs to settledown quickly and happily and start work”.Lecture, handbook, film, group seminar are used to impart theinformation to new employees about the environment of the job and theOrganisation in order make new employee acquaint himself with thefollowing heads:1. About the company;2. About the department;3. About the superiors, subordinates;Objectives of Induction:I. Putting the new employee at his ease;II. Creating interest in his job and the company;III. Providing basic information about working arrangements;IV. Indicating the standards of performance and behavior expected of him. Making the employee feel that his job, however small, is, meaningful, that he is not a cog in the vast wheel;V. Informing him about training facilities;VI. Creating the feeling of social security;VII. Minimizing the reality shock which would be caused due to incompatibility caused between the employee expectations and actually what the company provides/offers regarding pay, benefits, status, working conditions, responsibility, opportunity for growth, innovations, creative ideas etc.Advantages of InductionI. First impression matters a good deal and results in less turnover;II. Newcomer adjusts himself to the work quickly, and it saves the time of the supervisor;III. Reduces employee dissatisfaction and grievances;IV. Develop a sense of belongings and commitment. 48

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