hrm

1. HUMAN RESOURCE MANAGEMENT
Personnel, People at work, Manpower, Staff, employees

2. Nature of HRM
1. Inherent part of management- selecting people, training, motivating, appraising their performance for
improving their quality.
2. Pervasive function-present in all levels of mg in an organization
3. Action oriented-solve problem through rational(balanced) policies rather than record keeping
4. People oriented-HRM is all about people at work. Assign jobs, produce results, reward, motivate them
towards improvements in productivity
5. Future oriented- Effective HRM helps organization meet its goals
6. Development oriented-HRM develops full potential of employees through reward, training, job rotation.
7. Integrating mechanism: HRM maintains cordial relationship between people working at various levels in
organization.
8. Comprehensive function: Workforce signifies people working at all levels, HRM differs with form & shape but
the basic objective of effective utilization of human resource remains the same.
9. Continuous function: HRM is not a one shot deal it requires constant awareness
and alertness of human relations in every day operation.
10. Based on human relation: Every person has different need, perception and expectations. The manger
should give due attention to these factors.

3. Scope(capacity) of HRM
1. Human resource planning-fill various position
2. Recruitment & Selection- develop a pool(team) of candidates
3. Job Design: define task, assign authority & responsibility
4. Training & Development- helps in developing key competencies
5. Appraisal of performance-systematic assessment & evaluation of workforce
6. Motivation of workforce- develop enthusiastic workforce
7. Remuneration of employees-focuses on fair, consistent & equitable compensation
8. Social security & Welfare of employees-working conditions,
transport, medical assistance etc
9. Review & audit of personnel policies- ensures reliable HR policies
10. Industrial labour relation- ensures healthy union mg
relationship e.g.: settlement of dispute

4. Difference between personnel mg & HRM
PERSONNEL MANAGEMENT HUMAN RESOURCE MG
• Mg of people employed •
• Employees are treated as economic man as
his service are exchanged with salary
• Employee are viewed as tool,
equipment
• Employee are treated as cost center.
Therefore mg controls cost of labour
• Employees used as organization
benefit
• Personnel function is only auxiliary
(secondary)
• Short term perspective
Mg of employees skills,
Knowledge, abilities
• Employees are treated as economic, social &
psychological man
• Employee are treated as a
resource
• Employees as treated as profit center.
Therefore, invest in human resource.
• Employees used for multi-mutual benefit for
org, employees & family
• HRM is a strategic(planned) mg function
• Long term perspective

5. Objectives of HRM
1. To help the organization reach its goal
2. To employ the skills and abilities of the workforce efficiently
3. To provide the organization with well trained & well motivated employees
4. To increase employees job satisfaction and self actualization (stimulate employees
to realize their potential)
5. To develop & maintain a quality of work life.
6. To communicate HR policies to all employees.
7. To be ethically & socially responsive to the needs of the society(ensuring
compliance with legal & ethical standards)
8. To provide an opportunity for expression & voice in management
9. To provide fair, acceptable & efficient leadership
10. To establish sound organizational structure & desirable working relationships.

6. Importance of HRM
GOOD HR
PRACTICES HELPS
1. Attract & retain talent
2. Train people for challenging roles
3. Develop skills & competencies
4. Promote team spirit
5. Develop loyalty & commitment
6. Increase productivity & profits
7. Improve job satisfaction
8. Enhance standard of living
9. Generate employment
opportunity
10.Greater trust & respect

7. Qualities of HR Manager
Henry fayol categorized as
a) Physical- health, vigor (energy, strength), address
b) Mental- ability to understand, learn, judge & adaptable
c) Moral – firmness, responsible, initiative, loyal, dignity (self respect)
d) Educational- subject knowledge about function performed
e) Technical- peculiar knowledge on function
f)Experience – arising from work proper. OTHERS:
Alert mentally, competent to take quick decision, honesty & integrity,
patience, good leader, socially responsible, good communicator,
courteous (well mannered)

8. Environmental factors that affects the HRM
Economic
environment
(a) Population &
workforce
(b)Workforce market
condition
( c) National income-
Salary structure
(d) Inflationary
pressure
Legal
environment
(a ) No discrimination
on sex
(b ) At least prescribed % of
total employees must
belong to SC & physically
handicapped
( c ) Safety, working
condition
(d) Industrial relation
Technological
environment
(a)Electronic
communication
(b)Open door policy (can
communicate with any1 in
organization)
(c ) Global
monitoring
(d) Virtual office ( no
central place )
Socio- cultural
environment
(a)Expectation of society
(b)Social status of job
(c ) Achievement of work
(d ) Authority
structure
(e)Workforce
mobility
(f)Role of labour union

9. Emerging issues in HRM Future of HRM:
influencing factors
1. Increase in size of workforce-additional demands for better pay, benefits & working conditions.
2. Composition of workforce- The raising percentage of women in workforce,
demand for equal pay, gender inequality
3. Employees expectations-as workers are better educated, more demanding, voice strong- financial & non
financial demands is ever growing & expanding.
4. Changes in technology- increase in automation, modernization & computerization. Employees
must update their knowledge & skills constantly. This will necessitate constant training at all levels.
5. Life style changes- people are ready to change jobs, shift locations, start up companies & even
experiment with untested ideas.
6. Environmental challenges- Privatization efforts in India will gather momentum . Burden of training &
retraining falls on the shoulder of HR manager. Reserved categories, minorities will lose importance during
selection of employees.
7. Personnel Function- Job redesign, career opportunity, Productivity, reward, safety and welfare,
Talent hunting, developing & retaining, Lean & mean mg (good bye to old employees), labour relation, Health
care benefits

10. Role & Responsibility of HR professionals in changing
Environment
• Focus on strategic HR issues: Issues have to be identified &
dealt with adequately. It will act as an in-build advantage
• Proactive action: not on reactive basis. Putting action in practice before an issue arises.
• Developing integrated HR system:
Well balanced system without lack of coherence (unity) in function
• Working as Change agent: must perceive need for change and initiate it. HR
professionals must play an active role.
• Marketing HR potential: must have ability to prove
their contribution to enterprise
• Outsourcing HR functions: business instructs an
external supplier to take responsibility (and risk)
for HR functions.

11. HUMAN RESOURCE PLANNING
• According to Geisler-
• “ Man power planning is the process which includes forecasting,
developing implementing, and controlling by which a firm ensures
that it has the right number of people and the right kind of people at
the right place, at the right time doing work for which they are
• economically most useful”

12. Objectives of Human resource planning
1) Forecast personnel requirement
2) To ensure optimum utilization of resource
3) Use of existing manpower productively
4) Cope with changes(training about technological changes)
5) To provide control measures(ensure resource availability
when required)
6) Promote employees in systematic manner(promotions,
pay scale)
7) To provide a basis for Management Development
Programmes.
8) To assist productivity bargaining(good deal)
9) To assess the cost of man power

13. Importance of HR
Planning
A. Reservoir of talent- retain
skilled people
B. Prepare people for future-
motivated& developed to meet future
needs
C. Expand or contract-continuous
supply of people to handle
challenging jobs
D. Cut cost-Hr budget
E. Succession planning- stars are picked for
challenging projects
EFFECTIVE HUMAN RESOURCE PLANNING:
set efficient objective, top mg support, Employee skill inventory, HR
Information system, Coordination

14. HUMAN RESOURCE PLANNING
Organizational objectives
Human resource
planning
Identification of human
resource gap
Action plans for
bridging gap
Forecasting human needs Forecasting supply of human
resource
Surplus human
resource
Shortage of human
resource

15. HRP
Process
(A) Deciding the
objective of
HRP
(B) Estimating
future
organizational
structure &
manpower
requirement
( c) Manpower
Audit
(d) Job Analysis
(e) Developing
human
resource plan

16. A. Objective of HRP- fitting employee abilities to enterprise requirements
B. Estimating future organizational structure & manpower requirement- The mg must
estimate the number & types of employees (age, experience, qualification, salary
range)required in future by analyzing growth, expansion, structural changes .
C. Manpower Audit- Skill inventory
E.Developing human resource plan-Implementation of findings
PERSONAL
FACTORS
Name
Age
Marital status
EDUCATION &
TRAINING
School
Degree Academic
excellence
Training achieved
EXPERIENCE &
SKILLS
Job areas Job
titles Special skills
Lang known
Reason for leaving
ADD INF
Salary grade
Disciplinary
record Career
plans
Appraisal data Test
results
job description-job summary, Duties performed, Machine ,
tools ,materials , working conditions
Job specification- what kind of person to recruit & for what qualities that
person should be tested. Physical character, Psychological character, personal
character, responsibility,
demographic nature
D. Job Analysis:
Training, Job evaluation,
Performance App, Career Dev,
Induction, Counseling, labor
relat

17. Recruitment
• Acc to Edwin B.Flippo defined recruitment as
“ the process of searching for prospective employees and
stimulating them to apply for jobs in the organization”

18. Factors affecting Recruitment
INTERNAL FACTORS
• Company’s pay package
• QWL
• Organizational Culture
• Career planning
• Company’s size
• Company’s products
• Company’s Growth rate
• Cost of recruitment
EXTERNAL FACTORS
• Socio-economic factors
• Supply & demand factors
• Employment rate
• Labour market
condition
• Reservation for SC/ST
• Information system

19. Sources of
Recruitment
Internal
source
Transfer- job rotation
shifting from one job
to another
Promotion-
shifting an
employee to higher
position
Employee referrals-
recommendation from
current employees
External source
Direct recruitment-
(factory gate)
Unsolicited
application
Media Advertisement
Employment
Exchange
Mg consultants(data bank)
Campus recruitment
Recommendations Labour
contractors
Modern technique
Walk- in
Consult-in-(encourage to
approach personally )
Head Hunting-(professional org
search senior executives and advise
co. to fill the position)
Body shopping- training institution
develop pool of HR.
Business Alliances- acquisition,
mergers, share HR
Tele-recruitment

20. Advantages of Internal source
• Employees are motivated, Employee morale(self confident) is increased, Cheaper
process, Chain of promotion improves performance, Tool for training,
Disadvantages of Internal source
• Scope for fresh talent reduced, Employees become lethargic(lazy), Spirit of competition is
hampered, Frequent transfers reduce productivity.
Advantages of External source
• Attract Qualified personnel, Wider choice, Fresh talent, Competitive
spirit
Disadvantages of External source
• Dissatisfaction among existing staff, Lengthy time consuming process,
Costly process, Uncertain response

21. SELECTION-choose
• “Selection is the process of picking individuals who have
relevant qualifications to fill jobs in an organization”.
• The basic purpose is to choose the individual who can most
successfully perform the job, from the pool (collection) of
qualified candidates.

22. SELECTION STEPS- series of hurdles
STEP 1
• Reception-(a co. create favorable impression from stage of reception)
STEP 2
• Screening Interview-(Preliminary interview cuts the cost, allow
only eligible candidates to go through further stages)
STEP 3 • Application Blank- (brief history sheet of employees background)
STEP 4
• Selection Tests-1.Intelligent test 2. Aptitude, 3.Personality 4.Achievement Tests
5. Simulation test 6.Assessment centre 7. Graphology test 8. Polygraph (lie detector)
9.Integrity test
STEP 5
STEP 6
• Selection Interview- oral examination
• Medical Examination- reveals Physical fitness
STEP 7
• Reference checks-personnel department check applicants previous job
performance through references given.
STEP 8 • Hiring Decision- final decision whether to select or reject a candidate.

23. 1.Intelligent test [mental ability]- numerical ability
2.Aptitude tests[potential to learn skills]- mathematical 3.Personality tests-
(a)Projective tests[interpret problem],
(b)Interest tests[idea to know peoples area of interest],
( c)Preference test[people differ in preference for achievement]
4.Achievement Tests[ proficiency know-how test]-short hand
5. Simulation test[assess potential of employees by making them solve problem]
6.Assessment centre[in a separate room employees are assessed through multiple
assessors]
(a)The in-basket [candidates are asked to act in limited periods with the files & notes given]
(b)Leaderless group discussion[to examine interaction as a group] (c )Business game[how to
advertise, market, penetrate market]
(d)Individual presentation[ plan, organize on assigned topic]
(e)Structured Interview[series of questions aimed at participant]
7. Graphology test[to examine lines, trend , curves understanding ability, flourishes persons handwriting and
emotional make-up ]
8. Polygraph (lie detector)- [rubber tube around chest , arms , fingers to examine physical
changes, blood pressure etc. This establishes truth about applicants behavior]
9.Integrity test – measure employees honesty. By asking more “yes” or “No” questions
SELECTION TEST

24. KINDS OF INTERVIEW
1. Preliminary interview- screening of applicants this afford him freedom to decide whether
the job will suit him.
2. The non directive interview- recruiter asks questions that comes
to mind. This allows applicant to talk freely.
3. The directive or structured interview- recruiters use predetermined set of questions
& comparison are made among applicants.
4. The situational interview- Applicant is given a hypothetical
(imaginary) incident and asked to respond to it
5. The behavioral interview-focuses on actual
work incidents. The applicant must reveal what he/she do in given situation.
6. Stress interview- Interviewer attempts to find out how applicant
respond to aggressive, embarrassing, rude & insulting questions.
7. Panel interview- the applicant meets 3-5 interviewers who takes turns in asking questions.
The panel members can ask new & incisive (penetrating) question based on their expertise &
experience and elicit (draw out) deeper & meaningful responses from candidates.

25. Human Resource Management
Human Resources Management(HRM): Concepts of HRM, HRD and Personnel Management
and Industrial Relations (PMIR), HRM vs PMIR, Basic functions of HR Manager: Manpower
planning, Recruitment, Selection, Training and Development, Placement, Wage and Salary
Administration, Promotion, Transfer, Separation, Performance Appraisal, Grievance Handling and
Welfare Administration, Job Evaluation and Merit Rating - Capability Maturity Model (CMM)
Levels - Performance Management System.

26. Definition
According to Edwin B. Flippo
Human Resource Management is the planning, organizing, directing and
controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual,
organisational, and social objectives are accomplished.
Human Resource Management is a process of bringing people and organizations
together so that the goals of each are met. It tries to secure the best from people
by winning their wholehearted cooperation.
In short, It may be defined as the art of procuring, developing and maintaining
competent workforce to achieve the goals of an organization in an effective and
efficient manner.

27. Definition
According to David A. Decenzo and Stephen P. Robbins
Human Resource Management is concerned with the people dimension in
management. Since every organisation is made up of people, acquiring their
services, developing their skills, motivating them to higher levels of
performance and ensuring that they continue to maintain their commitment to
the organisation are essential to achieving organizational objectives. This is true
regardless of the type of organisation – government, business, education, health,
recreation or social action.

28. Definition
• Human resource management can be defined as
– “ employing people, developing their resource, utilizing maintaining and
compensating their services in tune with the job and organizational
requirements”

29. Objectives of HRM
The principal objectives of HRM may be listed thus:
 To help the organisation reach its goals
 To employ the skills and abilities of the workforce efficiently
 To provide the organisation with well-trained and well-motivated
employees
 To increase to the fullest the employee’s job satisfaction and self-
actualization
 To develop and maintain a quality of work life
 To communicate HR policies to all employees
 To be ethically and socially responsive to the needs of society

30. 1) Societal Objectives: seek to ensure that the organization becomes socially responsible to the needs and
challenges of the society while minimizing the negative impact of such demands upon the organization.
The failure of the organizations to use their resources for the society’s benefit in ethical ways may lead to
restriction.
2) Organizational Objectives: it recognizes the role of HRM in bringing about organizational
effectiveness. It makes sure that HRM is not a standalone department, but rather a means to assist the
organization with its primary objectives. The HR department exists to serve the rest of the organization.
3) Functional Objectives: Is to maintain the department’s contribution at a level appropriate to the
organization’s needs. Human resources are to be adjusted to suit the organization’s demands. The
department’s value should not become too expensive at the cost of the organization it serves.
4) Personnel Objectives: It is to assist employees in achieving their personal goals, at least as far as these
goals enhance the individual’s contribution to the organization. Personal objectives of employees must be
met if they are to be maintained, retained and motivated. Otherwise employee performance and satisfaction
may decline giving rise to employee turnover.
The HRM objectives can be summarized under four specific objectives:
societal, organizational, and functional and personnel.

31. Scope of HRM
 Very Vast
 Covers all major activities
in the working life of a
worker
 From time an individual
enters into an organization
until he or she leaves
comes under the purview
of HRM
Prospects
of HRM
HRM
Nature of
HRM
Industrial
Relations
Employee
Maintenance
Employee
Hiring
Employee &
Executive
Remunerati
on
Employee
Motivation

32. The scope of HRM is very wide. Research in behavioral sciences, new trends in
managing knowledge workers and advances in the field of training have expanded the
scope of HR function in recent years. The Indian Institute of Personnel Management has
specified the scope of HRM thus:
i. Personnel aspect: This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, lay off and retrenchment,
remuneration, incentives, productivity, etc.
ii. Welfare aspect: It deals with working conditions and amenities such as canteens,
crèches, rest and lunch rooms, housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.
iii. Industrial relations aspect: This covers union-management relations, joint
consultation, collective bargaining, grievance and disciplinary procedures, settlement
of disputes, etc.

33. Functions
Functions of HRM include:
• Facilitating the retention of skilled and competent employees
• Building the competencies by facilitating continuous learning and development
• Developing practices that foster team work and flexibility
• Making the employees feel that they are valued and rewarded for their
contribution
• Developing management practices that endanger high commitment
• Facilitating management of work force diversity and availability of equal
opportunities to all.

34. HRM FUCTIONS
HR
acquisition
1. HR planning
2. Recruitment
3. Selection
4.Placement
HR
development
1. Career planning
2.Training &
development
3.Organizational
Development
Performance &
compensatio n
1. Performance Mg
2.Incentives&
benefits
Motivation &
maintenance
1.Empowerment
2.Health & Safety
3. HR mobility
4.Creating
motivating
environment
Industrial
relations
1.Discipline&
grievance mg
2.Industrial
dispute Mg
HR Information system HR
research
HR accounting
HR audit

35. On the other hand, human resource management has a wider scope and considers
employees as the asset to the organization. It promotes mutuality in terms of goals,
responsibility, reward etc. that will help in enhancing the economic performance and
high level of human resource development.
In early centuries, when Human Resource Management (HRM) was not prevalent,
then the staffing and payroll of the employees were taken care of, by the Personnel
Management (PM). It is popularly known as Traditional Personnel Management.
Human Resource Management have emerged as an extension over the Traditional
Personnel Management.

36. The Basic Functions of HR Managers
The goal of a human resource manager is to strengthen the employer-employee relationship.
This goal is supported by a variety of functions within the human resources department and
throughout the organization. In a small business, the human resource manager may have a
great degree of latitude, as well as the time to devote to employee interaction with a small
workforce. Both of these are key elements of an effective human resources leader, although she
must accomplish a number of functions to achieve this goal.
Planning, resourcing and retention Managers need to know how many staff they will need in order
to achieve the organisational goals. They need to identify where the staff will be needed, how many
and at what times. This is especially important in organisations where business fluctuates, such as the
retail and hospitality sectors. This is part of the planning and resourcing process. The retention of
staff is also important, as recruiting staff is an expensive and time-consuming process. A manager
needs to ensure that staff are happy in their work as not only will they be more productive, they will
also be more likelyto remain with the organisation.
Recruitment and selection: When the need for people has been ascertained, the next task is to
find them, and ensure that the right people are selected and recruited for the organisation.

37. Training and development: In order to get the best from employees they need to be trained.
Training is done to fill gap between the skills and knowledge they have at present and the skills
and knowledge the organisation wants them to have in order to fulfil set goals.
Development ensures that employees can fulfil their potential. Development goes beyond
the skills required for the job and takes into account individual aspirations. A developed
workforce is able to accept change and is more fulfilled and motivated
Remuneration and reward: Employees need to be paid so that they are able to live. Pay needs
to be adequate and equitable. Money is not the only reward and may not motivate employees to
be more productive; other benefits also need to be looked at. These can range from benefits
such as pensions, healthcare and other financial incentives, to non-financial rewards such as
those that come from empowerment and job satisfaction.
Employee relations: Healthy relations need to be maintained with employees to ensure a
productive workforce. In the event of disputes and conflict arising, managers need to be able to
manage the situation successfully in order to ensure win–win outcomes

38. 38
Manpower Planning
The first function, which determines the organizational blueprint towards its larger
goals, is Manpower Planning or interchangeably Human Resources Planning. This
is the key to getting the right people for the right jobs and hence it is extremely
important.
According to Velter Eric W.: Manpower Planning is “the process by which a
management determines how an organization should move from its current
manpower position to its desired manpower position. Through planning, a
management strives to have the right number and the right kinds of people at the
right places, at the right time, to do things which result in both the organization and
the individual receiving the maximum long-range benefit.”
According to Coleman: The process of determining manpower requirements & the
means for meeting those requirements in order to carry out the integrated plan of
the organization.” --

39. HRP is a Four-Phased Process.
 The first phase involves the gathering and analysis of data through manpower inventories
and forecasts,
 The second phase consists of establishing manpower objectives and policies and gaining
top management approval of these.
 The third phase involves designing and implementing plans and promotions to enable the
organization to achieve its manpower objectives.
 The fourth phase is concerned with control and evaluation of manpower plans to facilitate
progress in order to benefit both the organization and the individual. The long run view
means that gains may be sacrificed in the short run for the future grounds. The planning
process enables the organization to identify what its manpower needs is and what potential
manpower problems required current action. This leads to more effective and efficient
performance.

40. Analyzing the corportate and unit level stategies
Demand forecasting of overall HR requirements as per organizational plan
Managerial Judgement, Statistical Techniques, Work study Techniques
Supply Forecasting : Obtaining the data and information about the present
inventory of HR and forecast futrue changes
Estamiting the net human resources reqirements
Incase of future surplus, plan for redevlopment, reternchment and layoff
Incase of future deficit, forecast the future supply of HR from all sources with
reference to plans of other companies
Plan for recruitment, development and internal mobility if future supply is
more than or equal to net HR requirments
Plan to modify or adjust the organizational plan if futrue supply will be inadequate with
reference to future net requirements

41. The objectives of human resource planning may be summarized as below:
Forecasting Human Resources Requirements: HRP is essential to determine the future needs of
HR in an organization. In the absence of this plan it is very difficult to provide the right kind of
people at the right time.
Effective Management of Change: Proper planning is required to cope with changes in the different
aspects which affect the organization. These changes need continuation of allocation/ reallocation and
effective utilization of HR in organization.
Realizing the Organizational Goals: In order to meet the expansion and other organizational
activities the organizational HR planning is essential.
Promoting Employees: HRP gives the feedback in the form of employee data which can be used in
decision-making in promotional opportunities to be made available for the organization.
Effective Utilization of HR: The data base will provide the useful information in identifying surplus
and deficiency in human resources. The objective of HRP is to maintain and improve the
organizational capacity to reach its goals by developing appropriate strategies that will result in the
maximum contribution of HR.

42. Recruitment
Introduction to Recruitment: Successful human resource planning should
identify our human resource needs. Once we know these needs, we will want to do
something about meeting them. The next step in the acquisition function,
therefore, is recruitment. This activity makes it possible for us to acquire the
number and types of people necessary to ensure the continued operation of the
organization.
Recruiting makes it possible to acquire the number and types of people necessary
to ensure the continued operation of the organisation. Recruiting is the discovering
of potential applicants for actual or anticipated organisational vacancies.
According to Edwin B. Flippo, “Recruitment is the process of searching for
prospective employees and stimulating them to apply for jobs in the
organisation.”

43. According to Lord, “Recruitment is a form of competition. Just as
corporations compete to develop, manufacture, and market the best product or
service, so they must also compete to identify, attract and hire the most qualified
people. Recruitment is a business, and it is a big business.”
According to Werther and Davis, “Recruitment is the process of finding
and attracting capable applicants for employment. The process begins when new
recruits are sought and ends when their applications are submitted. The result is a
pool of applicants form which new employees are selected.”
In the words of Dale Yoder, “Recruiting is a process to discover the sources
of manpower to meet the requirements of the staffing schedule and to employ
effective measures for attracting that manpower in adequate numbers to facilitate
effective selection of an efficient working force.”

44. Recruitment to Human Resource Acquisition Process
Thus, Recruitment is the
process of locating and
encouraging potential
applicants to apply for
existing or anticipated job
openings. It is actually a
linking function, joining
together those with jobs to
fill and those seeking jobs.

45. Recruitment process: Recruitment process passes through the following stages:
1. Recruitment process begins when the personnel department receives requisitions for recruitment from any
department of the company, The personnel requisitions contain details about the position to be filled, number of
persons to be recruited, the duties to be performed, qualifications expected from the candidates, terms and conditions of
employment and the time by which the persons should be available for appointment etc.
2. Locating and developing the sources of required number and type of employees.
3. Identifying the prospective employees with required characteristics.
4. Developing the techniques to attract the desired candidates. The goodwill of an organisation in the market
may be one technique. The publicity about the company being a good employer may also help in stimulating candidates
to apply. There may be others of attractive salaries, proper facilities for development etc.
5. Evaluating the effectiveness of recruitment process :The personnel recruitment process involves five elements,
viz., a recruitment policy, a recruitment organisation, a forecast of manpower, the development of sources of recruitment,
and different techniques used for utilising these sources, and a method of assessing the recruitment programme.

46. Methods of Recruitment
Methods of recruitment are different from the sources of recruitment. Sources are the locations where
prospective employees are available. On the other hand, methods are way of establishing links with the
prospective employees. Various methods employed for recruiting employees may be classified into the
following categories:
Direct Methods:
These include sending recruiters to educational and professional institutions, employees, contacts with
public, and manned exhibits. One of the widely used direct methods is that of sending of recruiters to
colleges and technical schools. Most college recruiting is done in co-operation with the placement office
of a college. The placement office usually provides help in attracting students, arranging interviews,
furnishing space, and providing student resumes.
Indirect Methods:
The most frequently used indirect method of recruitment is advertisement in newspapers, journals, and
on the radio and television. Advertisement enables candidates to assess their suitability. It is appropriate
when the organisation wants to reach out to a large target group scattered nationwide

47. Methods of Contacting Prospective Candidates

48. 3. Third-Party Methods:
The most frequently used third-party methods are public and private employment agencies. Public
employment exchanges have been largely concerned with factory workers and clerical jobs. They also
provide help in recruiting professional employees. Private agencies provide consultancy services and
charge a fee. They are usually specialized for different categories of operatives, office workers, salesmen,
supervisory and management personnel. Other third-party methods include the use of trade unions.
Labour management committees have usually demonstrated the effectiveness of trade unions as methods
of recruitment.
Attempts should be made to identify how the candidate was attracted to the company. To
accomplish this, the application may consist of an item as to how the applicant came to learn
about the vacancy. Then, attempts should be made to determine the method which
consistently attracts good candidates. Thus, the most effective method should be utilized to
improve the recruitment programme.

49. Recruitment Sources
Internal Sources : It would be desirable to utilize the internal sources before going outside to attract the
candidates. Yoder and others suggest two categories of internal sources including a review of the present
employees and nomination of candidates by employees. Effective utilization of internal sources necessitates
an understanding of their skills and information regarding relationships of jobs. This will provide possibilities
for horizontal and vertical transfers within the enterprise eliminating simultaneous attempts to lay off employees
in one department and recruitment of employees with similar qualification for another department in the
company.
The internal recruitment seeks applicants for the positions from those who are currently employed.
 Present Employees
 Employee Referrals
 Former Employees
 Previous Applicants

50. External Sources
DeCenzo and Robbins remark, “Occasionally, it may be necessary to bring in some ‘new
blood’ to broaden the present ideas, knowledge, and enthusiasm.” Thus, all organisations have
to depend on external sources of recruitment. Among these sources are included:
a. Employment agencies (Consultants) and Exchanges
b. Educational and technical institutes.
c. Professional and trade associations
d. Advertisements
e. Casual labour or “applicants at the gate” and nail applicants (contractors)
f. Radio and Television
g. Acquisitions and Mergers

51. Selection
Human resource selection is the process of choosing qualified individuals who are available to fill positions in an
organization. In the ideal personnel situation, selection involves choosing the best applicant to fill a position. Selection
is the process of choosing people by obtaining and assessing information about the applicants with a view to
matching these with the job requirements. It involves a careful screening and testing of candidates who have put in
their applications for any job in the enterprise. It is the process of choosing the most suitable persons out of all the
applicants. The purpose of selection is to pick up the right person for every job.
According to Dale Yoder, “Selection is the process in which candidates for employment are divided 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 in order to identify (and hire)
those with a greater likelihood of success in a job”.
According to Keith Davis, “Selection is the process by which an organization chooses from a list of screened
applicants, the person or persons who best meet the selection criteria for the position available.”
[
Thus, the selection process is a tool in the hands of management to differentiate between the qualified and unqualified
applicants by applying various techniques such as interviews, tests etc. The cost incurred in recruiting and selecting any
new employee is expensive.
The cost of selecting people who are inadequate performers or who leave the organisation before contributing to profits

52. Selection Procedure
The selection procedure is concerned with securing relevant information about an applicant. This information
is secured in a number of steps or stages. The objective of selection process is to determine whether an
applicant meets the qualification for a specific job and to choose the applicant who is most likely to
perform well in that job. Selection is a long process, commencing from the preliminary interview of the
applicants and ending with the contract of employment (sometimes).
The selection procedure consists of a series of steps. Each step must be successfully cleared before the
applicant proceeds to the next. The selection process is a series of successive hurdles or barriers which an
applicant must cross. These hurdles are designed to eliminate an unqualified candidate at any point in the
selection process.
The major factors which determine the steps involved in a selection process are as follows:
1. Selection process depends on the number of candidates that are available for selection.
2. Selection process depends on the sources of recruitment and the method that is adopted for making
contact with the prospective candidates.
3. Various steps involved in as selection process depend on the type of personnel to be selected.

53. Steps in Selection Process

54. 1. Application Pool: Application pool built-up through recruitment process is the base for selection
process. The basic objective at the recruitment level is to attract as much worthwhile applications as
possible so that there are more options available at the selection stage.
2. Preliminary Screening and Interview: It is highly noneconomic to administer and handle all the
applicants. It is advantageous to sort out unsuitable applicants before using the further selection steps.
For this purpose, usually, preliminary interviews, application blank lists and short test can be used. All
applications received are scrutinized by the personnel department in order to eliminate those applicants
who do not fulfil required qualifications or work experience or technical skill, his application will not
be entertained. Such candidate will be informed of his rejection.
Preliminary interview is a sorting process in which the prospective candidates are given the necessary
information about the nature of the job and the organisation. Necessary information is obtained from
the candidates about their education, skills, experience, expected salary etc. If the candidate is found
suitable, he is elected for further screening.

55. 3. Application Blank or Application Form: An application blank is a traditional widely accepted device for getting
information from a prospective applicant which will enable the management to make a proper selection. The blank
provides preliminary information as well as aid in the interview by indicating areas of interest and discussion. It
is a good means of quickly collecting verifiable (and therefore fairly accurate) basic historical data from the
candidate. It also serves as a convenient device for circulating information about the applicant to appropriate members
of management and as a useful device for storing information for, later reference. Many types of application forms,
sometimes very long and comprehensive and sometimes brief, are used. Information is generally taken on the following
items:
(a) Biographical Data: Name, father’s name, data and place of birth, age, sex, nationality, height, weight, identification
marks, physical disability, if any, marital status, and number of dependants.
(b) Educational Attainment: Education (subjects offered and grades secured), training acquired in special fields and
knowledge gained from professional/technical institutes or through correspondence courses.
(c) Work Experience: Previous experience, the number of jobs held with the same or other employers, including the
nature of duties, and responsibilities and the duration of various assignments, salary received, grades, and reasons for
leaving the present employer.
(d) Salary and Benefits: Present and expected.
(e) Other Items: Names and addresses of previous employers, references, etc. An application blank is a brief history
sheet of an employee’s background and can be used for future reference, in case needed.

56. Weighted Application Blanks
Some organisations assign numeric values or weights to the responses provided by the applicants. This
makes the application form more job related. Generally, the items that have a strong relationship to job
performance are given higher scores. For example, for a sales representative’s position, items such as
previous selling experience, area of specialisation, commission earned, religion, language etc. The total
score of each applicant is then obtained by adding the weights of the individual item responses. The
resulting scores are then used in the final selection. WAB is best suited for jobs where there are many
employees especially for sales and technical jobs. It can help in reducing the employee turnover later on.
4. Selection Tests: Many organisations hold different kinds of selection tests to know more about the
candidates or to reject the candidates who cannot be called for interview etc. Selection tests normally
supplement the information provided in the application forms. Such forms may contain factual
information about candidates. Selection tests may give information about their aptitude, interest,
personality, which cannot be known by application forms. Types of tests and rules of good of testing have
been discussed in
brief below:

57. A. Aptitude Tests: These measure whether an individual has the capacity or talent ability to learn a given job if given
adequate training. These are more useful for clerical and trade positions.
B. Personality Tests: At times, personality affects job performance. These determine personality traits of the candidate such
as cooperativeness, emotional balance etc. These seek to assess an individual’s motivation, adjustment to the stresses of
everyday life, capacity for interpersonal relations and self-image.
C. Interest Tests: These determine the applicant’s interests. The applicant is asked whether he likes, dislikes, or is
indifferent to many examples of school subjects, occupations, amusements, peculiarities of people, and particular activities.
D. Performance Tests: In this test the applicant is asked to demonstrate his ability to do the job. For example, prospective
typists are asked to type several pages with speed and accuracy.
E. Intelligence Tests: This aim at testing the mental capacity of a person with respect to reasoning, word fluency, numbers,
memory, comprehension, picture arrangement, etc. It measures the ability to grasp, understand and to make judgment.
F. Knowledge Tests: These are devised to measure the depth of the knowledge and proficiency in certain skills already
achieved by the applicants such as engineering, accounting etc.
G. Achievement Tests: Whereas aptitude is a capacity to learn in the future, achievement is concerned with what one has
accomplished. When applicants claim to know something, an achievement test is given to measure how well they know it.
H. Projective Tests: In these tests the applicant projects his personality into free responses about pictures shown to him
which are ambiguous.

58. 5. Interview: An interview is a procedure designed to get information from a person and to assess his potential
for the job he is being considered on the basis of oral responses by the applicant to oral inquiries by the
interviewer. Interviewer does a formal in-depth conversation with the applicant, to evaluate his suitability. It is
one of the most important tools in the selection process. This tool is used when interviewing skilled, technical,
professional and even managerial employees. It involves two-way exchange of information.
The interviewer learns about the applicant and the candidate learns about the employer.
Objectives of Interviews: Interview helps:
 To obtain additional information from the candidate.
 Facilitates giving to the candidate information about the job, company, its policies, products etc.
 To assess the basic suitability of the candidate.
The selection interview can be:
 One to one between the candidate and the interviewer:
 Two or more interviewers by employers representatives-sequential;
 By a panel of selections, i.e., by more than representative of the employer.
The sequential interview involves a series of interviews; each interviewer meeting the candidate separately.
The panel interview consists of two or more interviews meeting the candidate together.

59. Types of interviews: Interviews can be classified in various ways according to:
(A) Degree of Structure
(B) Purpose of Interview
(C) Content of Interview
(A) Degree of Structure: (1) Unstructured or non-directive: in which you ask questions as they come to mind.
There is no set format to follow.
(2) Structured or directive: in which the questions and acceptable responses are specified in advance. The responses
are rated for appropriateness of content.
Structured and non-structured interviews have their pros and cons. In structured interviews all applicants are generally
asked all required questions by all interviewers. Structured interviews are generally more valid. However structured
interviews do not allow the flexibility to pursue points of interests as they develop.
(B) Purpose of Interview: A selection interview is a type of interview designed to predict future job performance, on
the basis of applicant’s responses to the oral questions asked to him.
A stress interview is a special type of selection interview in which the applicant is made uncomfortable by series of
awkward and rude questions. The aim of stress interview is supposedly to identify applicant’s low or high stress
tolerance. In such an interview the applicant is made uncomfortable by throwing him on the defensive by series of
frank and often discourteous questions by the interviewer.

60. (C) Content of Interview: The content of interview can be of a type in which individual’s ability to
project a situation is tested.
This is a situation type interview. In job-related interview, interviewer attempts to assess the
applicant’s past behaviours for job related information, but most questions are not considered
situational.
In a behaviour interview a situation in described and candidates are asked how they behaved in the
past in such a situation.
While in situational interviews candidates are asked to describe how they would react to situation
today or tomorrow. In the behavioural interview they are asked to describe how they did react to the
situation in the past.

61. 6. Background Investigation: The next step in the selection process is to undertake an investigation of those
applicants who appear to offer potential as employees. This may include contacting former employers to confirm
the candidate’s work record and to obtain their appraisal of his or her performance/ contacting other job-related
and personal references, and verifying the educational accomplishments shown on the
application.
7. Physical Examination: After the selection decision and before the job offer is made, the candidate is required
to undergo physical fitness test. Candidates are sent for physical examination either to the company’s physician
or to a medical officer approved for the purpose. Such physical examination provides the following information.
Whether the candidate’s physical measurements are in accordance with job requirements or not?
Whether the candidate suffers from bad health which should be corrected?
Whether the candidate has health problems or psychological attitudes likely to interfere with work efficiency or
future attendance?

62. 8. Approval by Appropriate Authority: On the basis of the above steps, suitable candidates are
recommended for selection by the selection committee or personnel department. Though such a
committee or personnel department may have authority to select the candidates finally, often it
has staff authority to recommend the candidates for selection to the appropriate authority.
9. Final Employment Decision: After a candidate is finally selected, the human resource
department recommends his name for employment. The management or board of the company
offers employment in the form of an appointment letter mentioning the post, the rank, the salary
grade, the date by which the candidate should join and other terms and conditions of employment.
Some firms make a contract of service on judicial paper. Usually an appointment is made on
probation in the beginning.
10. Evaluation: The selection process, if properly performed, will ensure availability of
competent and committed personnel. A period audit, conducted by people who work
independently of the human resource department, will evaluate the effectiveness of the selection
process. The auditors will do a thorough and the intensive analysis and evaluate the employment
programme.

63. Induction and Placement:-
After an employee has been recruited he is provided with basic background information about the
employer, working conditions and the information necessary to perform his job satisfactorily. The
new employee’s initial orientation helps him perform better by providing him information of the
company rules, and practices.
According to Pigors and Myers, “Placement consists in matching what the supervisor has reason
to think the new employee can do with what the job demands (job requirements), imposes (in
strain, working conditions, etc.), and offers (in the form of pay rate, interest, companionship with
other, promotional possibilities, etc.)” They further state that it is not easy to match all these factors
for a new worker who is still in many ways an unknown quantity. For this reason, the first
placement usually carries with it the status of probationer.

64. A few basic principles should be followed at the time of placement of an employee on the job. These may be
enumerated as below:
 The job should be offered to the man according to his qualifications. The placement should neither be higher
nor lower than the qualifications.
 While introducing the job to the new employee, an effort should be made to develop a sense of loyalty and
cooperation in him so that he may realize his responsibilities better towards the job and the organisation.
 The employee should be made conversant with the working conditions prevailing in the industry and all
things relating to the job. He should also be made aware of the penalties if he commits a wrong.
 Man should be placed on the job according to the requirements of the job. The job should not be adjusted
according to the qualifications or requirements of the man. Job first; man next, should be the principle of
placement.
 The placement should be ready before the joining date of the newly selected person.
 The placement in the initial period may be temporary as changes are likely after the completion of training.
The employee may be later transferred to the job where he can do better justice.