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  • 1. ASC DEGREE COLLEGE (Affiliated to Bangalore University & Recognized by the Government of Karnataka) I Sem BCom Study material Organizational Management Chapter 4: Human Resource Planning, Recruitment and Selection StaffingMeaning of Staffing Staffing, which is one of the managerial functions, is concerned with the assessment of themanpower requirement, recruitment and selection of personnel, training and development ofpersonnel and periodic appraisal of the performance of personnel. It is a continuous function ofmanagement. Staffing is an adjunct or pre-requisite activity to actuating.Definition of StaffingKoontz and O’Donnell, “The management function of staffing involves managing the organizationstructure through proper and effective selection, appraisal and development of personnel to fill theroles designed into the structure.”S. Benjamin, “It is the process involved in identifying, assessing, placing, evaluation and directingindividuals at work.”
  • 2. Organization Management 2Staffing Procedure Organizational Explains the need and number of workforce Structure and required Strategy and HRP [HR Planning (HRP)] 1. Planned – Due to change in Organization structure. Recruitment 2. Anticipated – Change in environment. 3. Unexpected-Emerges from Contingencies. 1. Securing information about required people. Selection 2. Collecting application, resume etc. 3. Interviews-Skills Test. 4. Evaluation 5. Select and hire. Orientation Socialization To tell about organization and job Description for new entrants. Training and Improving ability, confidence, and skills Development in present jobs. Performance Assessing workers’ ability with reference Appraisal to standards fixed. Decisions Promotion transfer, demotions and separations. :ASC DEGREE COLLEGE:
  • 3. Organization Management 3 Human resource planningMeaning and Definition of HRP: It is the process by which an organization estimates the right number & right kind of peoplerequired during the period under right place and right time. It is also process of estimating theperson capable of effectively and efficiently completing the job that will help the organization toachieve its goal. According to Dale .S. B., “ HRP is a process of determining and assuring that the organizationwill have an adequate number of qualified persons available at the proper times, performing jobswhich meet the needs of the enterprise and which provide satisfaction for the individuals involved.” According to Leon .C.M, HRP is ‘an integrated approach to performing the planning aspects ofthe personnel function in order to have a sufficient supply of adequately developed and motivatedpeople to perform the duties and tasks required to meet organizational objectives and satisfy theindividual needs and goals of organizational members’.Features of Human Resource Planning 1. Well defined objectives: The objectives of the organization may form the objective of HRP, H.R needs are planned on the basis of company’s goals. Besides HRP have its own objectives like developing Human resource, updating technicality, career planning of individual and commitment in the minds of people. 2. Determining Personnel Needs: HRP is related to the determination of personnel needs in the organization. It includes determining right number of people at right time through proper recruitment and training process. 3. Having Manpower Inventory: H.R manager has to maintain personnel records of those employees who are highly capable of doing any kinds of job at present or in near future. 4. Adjusting Demand and Supply: Manpower requirements have to be planned well in advance as suitable persons may not be available immediately. This is very important in seasonal based industries like sugar industries, agriculture etc., 5. Creating Proper Work Environment: Manpower planning will enable people to work properly in the organization with proper job satisfaction.Need of Human Resource Planning 1. Replacement of Persons: through HRP persons existing in the organization will be trained in such a way that new positions will be filled up without any problems. 2. Labour turnover: If the organization is able to forecast turnover rate precisely, then through HRP the left over jobs can be filled up very easily and the labour turnover rate can also be reduced if the organization has proper HRP. :ASC DEGREE COLLEGE:
  • 4. Organization Management 4 3. Expansion plans: Whenever the organization wants to expand or diversify the business, it requires more people for new positions. Therefore through proper HRP essential persons can be recruited. 4. Technological Changes: The business is working under changing technological environment. There is a need to give fresh training to employees for adjusting to technological changes and through HRP a proper training programme can be established. 5. Assessing Needs: HRP is also required to determine whether there is any shortage or surplus persons in the organization. If there are more people than required, it will adversely affect the work. Therefore HRP helps in estimating proper work force required for the organization.Objectives of Human Resource Planning: 1. Assessing manpower needs for future and making plans for recruitment and selection. 2. Assessing skill requirement in future 3. Determining training and development needs of the organization. 4. Anticipating surplus or shortage of staff and avoiding unnecessary dismissal. 5. Controlling wage and salary costs 6. Ensuring optimum use of human resources in the organization. 7. Helping the organization to cope with the technological development and modernization. 8. Ensuring higher labour productivity 9. Ensuring career planning of every employer of the organization.Problems in Human Resource Planning: 1. Many people argue human resource planning is elaborating and time consuming process. 2. Human resource manager is expert in handling personal matter but not expert in managing when involving in organization plan they might make the overall strategy plan defective and ineffective. 3. Many employers avoid human resource planning because it increases the cost. 4. Uncertainty is assured due to change in technology, market situation, government policies. 5. Inadequacy of information system that is the reliable data and information about economy, market, trends in HR etc are not available 6. Resistance from employees and trade unions because they feel the workload increases and spreads unemployment especially of unskilled labour. :ASC DEGREE COLLEGE:
  • 5. Organization Management 5Importance of HR planning 1. Reduces labour cost: Due to HRP, the management is able to analyse the shortages and surpluses of manpower and take corrective action on time. This helps in reduction of labour cost. 2. Optimum utilization of manpower: through HRP the worker can be allotted those jobs in which they are skilled which leads to overall development of employees. 3. Identification of gaps in existing manpower: HRP identifies the gaps in terms of quality and quantity. With the help of suitable training these gaps can be filled in time and even existing manpower can be trained to fill up the future vacancies. 4. Improvement in overall business plan: HRP helps in improving the overall efficiency of planning because no management can be successful in the long run without having right type and right number of people doing the right jobs at the right time. 5. Career succession planning: HRP helps in career succession planning as it provides enough time for internal employees to grow so that they can satisfy the higher position jobs in the organization and they can be promoted. 6. Creates awareness in the organization: HRP helps in creating awareness of the effective manpower planning in the organization. It also helps in judging the effectiveness of human resource in the organization. 7. Overall growth of organization: HRP helps in expansion and growth and diversification of an organization that is if proper HRP is not present then the required HR may not be available in order to expand or diversify. RecruitmentMeaning: According to Edwin .B. Flippo recruitment is ‘the process of searching for prospectiveemployees and stimulating them to apply for jobs in the organization”.It is also an activity which involves bringing of the job seeker and the job-giver face to face with oneanother. Its major objective is to maintain adequate manpower resources with the required skill sothat the organization can depend upon it when it requires additional personnel.Objectives of Recruitment: 1. To attract people with multi-dimensional skills and experiences that suits the present and the future organizational strategies. 2. To induct outsiders with a new perspective to lead the company 3. To develop an organizational culture that attracts competent people to the company. 4. To search or head hunt people whose skills fit the company’s values :ASC DEGREE COLLEGE:
  • 6. Organization Management 6 5. To devise methods for assessing psychology of workers 6. To search for talent globally and not just within the company.Recruitment Process: The recruitment process includes 5 interrelated stages:I. Planning: It is the first stage in the recruitment process. It includes collecting information about the number of vacancies and types of applicants to be contacted.II. Strategy Developing : Once it is known how many and what type of recruits are required serious consideration has to be given to whether to recruit or outsource the work and other questions like what will be source of recruitment etc., Advancement in technology has made it possible to gain access to recruitment process with national and international market. There are different sources of Recruitment and they are: Sources of Recruitment Internal Sources External SourcesTransfer PromotionsAdvertise- Personnel Employ- Educat- Waiting Unsol- Presentment Consultants ment ional list icited Employ Exchanges institutions ees INTERNAL SOURCE:Under this source, personnel needs are filled through transfers or promotions. Though internalsources are main source of recruitment for many organizations, it is applicable only for jobs abovethe entry level. For every-level jobs, the enterprise has to depend on outside sources only. A. Traditional Method: Internal i. Present permanent employees. Transfers Promotions :ASC DEGREE COLLEGE:
  • 7. Organization Management 7 ii. Present employees iii. Retrenched and retired employeesTransfers: It involves shifting of persons from present job to other similar places but this does notinvolve any change in rank, responsibilities and prestige.Promotions: It refers to shifting of persons to positions carrying better prestige, higherresponsibilities and higher salaries.Present employees: They may be informed about the vacant positions and they may recommendtheir relatives and persons known to them. This policy keeps the employees happy and also in goodmorale. Further, generally, the employees recommend only those persons who are sincere and whocan perform the job well. External i. Campus recruitment: Universities, colleges and institutions also are the sources of recruitment of personnel, particularly for filling post such as engineers, scientists and management specialists. University and educational institutions run employment bureaus to assist concerns in recruiting and select some students for final interviews at their officers. ii. Employment Exchanges: Public employment exchanges are also an important source of recruitment of personnel. Job seekers register their names with these exchanges and the names of these persons will be supplied to business on the basis of their requisition. Generally, skilled and inexperienced persons register their names with these exchanges. iii. Personnel consultants or Management Consultants: A consulting firm is a specialized agency, which helps client companies in recruiting personnel. On behalf of its client, it invites applications through advertisement for filling the post specified by the clients, screens applications, holds interview and selects the candidates. For its service, the consulting firm receives some free from the client company. iv. Professional associations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. Organization finds this source more useful to recruit professional employees like executives, managers, engineers. Eg; Institute of Chartered Accountants of India, Small and Medium scale Industries Association. v. Data Banks: The management can collect the bio-data of the candidates from different sources and feed them in the computer. vi. Casual Applicants: depending upon the image of the organization, its response to the society, candidates may casually apply for jobs through websites or sending mails. In India, because of the acute unemployment problem, business concerns :ASC DEGREE COLLEGE:
  • 8. Organization Management 8 receive a large number of unsolicited applications, particularly for the lower level jobs. In short, persons in search of employment contact employers through telephone, by post or in person. vii. Similar organizations: generally, experienced candidates are available in organizations producing similar products or are engaged in similar business. The management can get potentially suitable candidate from this source by attracting them with good salary and competitive job. viii. Trade Unions: generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade unions leaders with a view to getting suitable employment due to their influence with the management. B. Modern Method: i. Walk-in: The busy organizations and the rapidly changing companies do not find time to perform functions of recruitment. Therefore, they advice the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. ii. Consult-in: The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. iii. Head-Hunting: The companies request 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. iv. Body-shopping: professional organizations and hi tech training institutes develop the pool of human resources for the possible employment. The prospective employers contact these organizations to recruit the candidates. v. Mergers and Acquisitions: When two companies forms an alliance they share the human resource. vi. E-recruitment: Organisations advertise their job vacancies through webites and also internet based recruitment agencies like timesjob.com, monster.com etc., vii. Outsourcing: instead of hiring employees to the organization, work may be outsourced to outside agencies. Eg; BPO performing maintenance of Accounts and H.R payrolls etc., viii. Scouting: it means sending the representative of company to various sources of recruitment with a view to persuading or stimulating the candidates to apply for jobs.III. Searching:s it refers to placing the advertising in media and decision by line-manager about vacancies existing in the organization.IV. Screening: application received must be screened and invited for interview. :ASC DEGREE COLLEGE:
  • 9. Organization Management 9V. Evaluation: to reduce the cost of recruitment it must be evaluated and controlled.Methods of recruitment Direct method Indirect method Third party methodRecruitment policyIt specifies the objectives of recruitment and provides a framework for the implementation ofrecruitment programme. It involves commitment to broad principles such as filling vacancies withthe best qualified individuals. SELECTIONMeaning and Definition: According to Dale Yoder “Selection is the process in which candidates for employment aredivided into two classes –those who are to be offered employment and those who are not”. According to Thomas Stone “Selection is the process of differentiating between applicants inorder to identify those with a greater likelihood of success in a job”MeaningSelection involves choosing personnel to fill specific jobs in the organization on the basis ofeducational qualifications, training, skills, abilities, and personality of the persons available for thejobs. Selection starts only after an adequate number of applications have been secured throughdifferent sources of recruitment.Essentials of a selection Procedure a. There should be sufficient number of applicants from whom the required number of candidates may be selected. b. There should be some person who is assigned the authority to select. The authority is given on the basis of type of persons to be selected and the nature of work they will take up. c. There should be some standard of personnel with which a prospective employee may be compared i.e., there should be available before hand a comprehensive job specification as developed by job analysis.Significance of selection procedure: 1. Procurement of skilled workers: only desired employees are hired at right time and with right skills. :ASC DEGREE COLLEGE:
  • 10. Organization Management 10 2. Reduction in the cost of training: Proper selection reduces the cost of training because qualified personnel have better grasping power, they can understand the techniques of work better. 3. Solution to personnel problems: Proper selection of personnel reduces personnel problems in the organization. Many problems like labour turnover, absenteeism and monotony shall not be experienced.STEPS IN SELECTION PROCESS: i. Job analysis ii. Receipt and scrutiny of applications iii. Written exam iv. Preliminary interview v. Business games  Case study  Role play  In basket method  Sensitivity  Stimulation vi. Tests vii. Final interviews viii. Decision making interview ix. Medical exam x. Reference checks xi. Line manager decisions xii. Job offers xiii. EmploymentI. Job Analysis: it is the process of determining, by observation and study and reporting proper information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from all others. Job analysis includes job description and job specification. Job description is an organized, factual statement of the duties and responsibilities of a specific job. It will tell what is to be done, how it is done and why it is done. :ASC DEGREE COLLEGE:
  • 11. Organization Management 11 Job specification: It is a statement of the minimum acceptable human qualities necessary to perform a job properly. II. Receipt and Scrutiny of Applications:A receptionist in the personnel department gives information about new opening to the visitors and receives their application. The scrutiny of applications is essential to take out those applications which do not fulfill the requirements of post.III. Written Exam: The organizations have to conduct written examination for the qualified candidates after they are screened on the basis of the application so as to measure the candidate’s ability in arithmetical calculations, knowledge in various disciplines like general knowledge and English language.IV. Preliminary Interview: This may be conducted by an assistant in the personnel department. The information collected will be regarding education, experience, salary expected, aptitude towards the job, age, physical appearance and other physical requirements etc.,V. Business Games: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top executives. Business games help to evaluate the applicants in the areas of decision-making, identifying the potentialities, handling the situations, problem solving skills, human relation skills etc., some of the games are case study used for testing judgment skills, role play for human relations skills, in-basket method for situational judgment, sensitivity for degree of openness and simulations for encountering skills.VI. Test: A test provides a systematic basis for comparing the behavior, attitudes and performance of two or more persons.Uses of tests in selection: a. It helps the managers in evaluating the candidate’s ability for the job. b. Measures the psychological potentialities of the candidate. c. It helps in judging the ability of a candidate in a given job situation. d. Ranking of the candidates e. Test results are valuable in determining the candidate’s weakness. f. Picking of a successful group from a larger group. g. It helps in examining the candidates intelligence, personality etc., Types of Tests: a. Aptitude test: 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 into general and mental ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc., :ASC DEGREE COLLEGE:
  • 12. Organization Management 12 b. Intelligence test; These test in general measures intelligence quotient of a candidate. In other words these test measure capacity for comprehension, reasoning, word fluency, verbal comprehension, numbers, memory. c. Emotional test: it is used to test the employees commitment towards the company, how far they withstand the work pressure and also capabilities of understanding the relation amongst the subordinates. d. Skill test – these test are used for measuring candidates ability to do a job perfectly and intelligently. These tests are useful to select candidates to perform artistic jobs. e. Mechanical Aptitude Test: it measure the capacities of visualization, perceptual speed and knowledge of mechanical matter. f. Psychomotor Tests: it measures the motor ability and eye hand coordination of candidates. g. Clerical aptitude test: it measures specific capacities involved in office work. It includes test like spelling, computation, copying, word measuring etc., h. Achievement Test: These tests are conducted when applicants claim to know something. These test measure the value of achievement when an organization wishes to employ experienced candidates. These tests are classified into job knowledge and work sample test. Job knowledge is used to test a candidate’s knowledge in a particular job and work sample test is done through giving some part of the actual work. Eg: lecturer knowledge test through giving knowledge test in accounts and work sample test may be done through giving him demo classes. i. Situational test: This test evaluates a candidate in a similar real life situation. The candidates either asked to cope up with a situation or solve critical situations of the job. It is classified into two types namely., group discussion where a group of candidates will be given a particular problem and each one has to put forth their opinion, propose valuable suggestions, ideas., etc., In basket situation test candidates will be given various letters, reports, telephonic conversation through which they have to come out with a decision. j. Interest test: These tests are inventories of the likes and dislikes of the candidates in relation to work, job, occupations, hobbies and recreational activities. It is useful in finding out person’s area of interest and to identify the kind of work that will satisfy him. k. Personality test: These tests prove deeply to discover clues to an individual’s system like confidence, emotional control, patience, fear, stability and self – confidence. This test if further classified into thematic appreciation test through which candidates are shown a series of pictures and they have to come out with a story and ink-blot test; where they will be shown various ink blots and they have to make meaningful concepts out of them. l. Other tests: :ASC DEGREE COLLEGE:
  • 13. Organization Management 13 a. Cognitive ability test: these test includes GRE test to check arithmetic. b. Wonderlic personnel test: this test includes perceptual, verbal and arithmetic. c. Polygraph test: candidates will be asked with few complicated questions and their answers will be tested by taking into consideration breathing, bloodpressure, skin response.VII. Interview: Interview is a formal, in-depth conversation which evaluates the applicant’s acceptability.Types of Interview: a. Informal interview: this is the interview which can be conducted at any place by any person to secure the basic and non-job related information. b. Structured interview: in this type the questions and acceptable answers are specified in advance and the responses are rated for appropriateness of content. c. Unstructured Interview: in this interview, the candidate is given the freedom to tell about himself by revealing his knowledge on various areas, his background, his expectations, interests etc., d. Core interview: it is normally the interaction between the candidates and the line executive or experts on various areas of job knowledge, skill, talent etc., e. Background information interview: this interview is intended to collect the information which is not available in the application. Information regarding education, place of domicile, family, health, interests, hobbies etc., are collected. f. Job and Probing interview: this interview aims at testing the candidate’s job knowledge, about performing duty, problematic areas, methods of handling etc., g. Stress interview: This interview aims at testing the candidate’s job behavior and level of withstanding during the period of stress and strain. h. Group discussion interview: there are two methods of conducting group discussion namely group interview method and discussion interview method. Under group interview all candidates will be brought under one room and asked individual questions, wherein discussion interview candidates will be given one topic on which they have to give their opinions. i. Panel interview: a panel of experts will interview candidates, judge his performance individually and prepares consolidated judgment. j. Depth Interview: in this interview, the candidate would be examined extensively in core areas of job skills and knowledge.VIII. Decision making interview - after the candidates are examined by the experts including the line managers of the organization in the core areas of the job, the head of the department in :ASC DEGREE COLLEGE:
  • 14. Organization Management 14 turn interviews the candidates once again for checking the interest of candidate in working conditions, career planning, promotional activities, work adjustment etc.,IX. Medical Examination – it gives clear information about physical and mental health of an candidate. Under medical examination tests are conducted to find out clear vision, perfect hearing, unusual tolerance, clear tone etc.,X. Reference Checks: After the 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 to check the authenticity of the information given by the candidate.XI. Final decision by the line manager – a line manager may accept or reject the candidate by taking into consideration economic, social, and behavioral implications.XII. Job Offers: after taking the final decision, the organization has to intimate the decision to the successful candidate. The offer letter may be given immediately or after sometime depending upon its time schedule.XIII. Employment: place the candidate on the job either modifying the terms and condition of employment with request from candidate.PLACEMENT:Meaning: It is the determination of the job to which an accepted candidate is to assign and hisassignment to that job. It is the process of assigning a specific job to each one of the selectedcandidate. Matching the requirements of a job with the qualifications of a candidate is the essenceof placement.Problems in placement: a. Employee expectations: employee expectations from the job are the main source for the problems in placement. If employee expects high salary, challenging job but the organization is not meeting his expectations, it leads to dissatisfaction. b. Job description: sometimes the expectations from the employees are more than the employee’s abilities or skills. In such a case the HR manager finds the mismatch problem. c. Changes in technology: the technological changes bring radical changes in job description and specification. d. Changes in organizational structure: there will be changes in organizational structure due to mergers and acquisition, down sizing etc with this the employee might not adjust with the new company’s work or responsibility. e. Social and Psychological factors: this implies problems in adjusting with the team or group. :ASC DEGREE COLLEGE:
  • 15. Organization Management 15How to make placement effective: a. Job rotation: the technique of rotating the employees among different jobs in the department enables the employees to satisfy his aptitude for challenging work and finds the match between himself and the job. b. Team work: The recent trend of job design is team building. The team work allows employees to sue their skill, knowledge, abilities etc., and it minimizes the problems in placement. c. Training and Development: d. Job enrichment: it provides the challenging work and decision – making authority to the employees. e. Job empowerment: It relates to exploitation of potentialities and make use of his own decisions regarding the work.Principles of placement Candidate must be placed on the job according to the requirements of the job. Job should be offered according to his qualification. It should not be higher nor lower. He should be informed about the working conditions in the industry including penalties if any, for wrong things. Effort should be made to develop sense of loyalty and co operation in him so that he realizes his responsibilities towards the job. Inform candidate about any change which may happen later once he completes his probationary period. Keep the placement ready before the joining date of candidate.INDUCTION/ ORIENTATION:Meaning: According to Edwin .B. Flippo “Induction is the welcoming process to make the newemployee feel at home and degenerate in him a feeling of belongingness to the organization.”Induction is the process of receiving and welcoming an employee when he first joins a company andgiving him the basic information he needs to settle down quickly and happily and start work.TRAINING:Definition: “Training is the act of increasing the knowledge and skill of an employee for doing a particularjob”. “Training is used here to indicate only process by which the aptitudes, skills and abilities ofemployees to perform specific jobs are increased.” :ASC DEGREE COLLEGE:
  • 16. Organization Management 16 According to Dale S Bleach” training is an organized procedure by which people learnknowledge and skill for a definite purpose.” Thus training improves, changes and moulds the employee’s knowledge, skill, behaviour andaptitude and attitude towards the requirements of job and organization. It helps bridge the gap between job requirements and employee’s present specification. :ASC DEGREE COLLEGE:

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