Human Resource Management by Raja Rao Pagidipalli


Published on

Human Resource Management by Raja Rao Pagidipalli

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Human Resource Management by Raja Rao Pagidipalli

  1. 1. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 1
  2. 2. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 2I - UNITINTRODUCTION TO HRMIntroduction:According to Leon C. Megginson, the term human resources (HR) can be thought of as“the total knowledge, skills, creative abilities, talents and aptitudes of an organization’sworkforce, as well as the value, attitudes and beliefs of the individuals involved.” Theterm human resources can also be explained in the sense that it is a resource like anynatural resource. It does mean that the management can get and use the skill,knowledge, ability etc., through the development of skills, tapping and utilizing themagain and again by developing a positive attitude among employees. The aspect of‘attitude’ among the human resources aspects gained significance along withglobalization. Managing of these human resources deals with the above areas and alsoprovides an answer to the question referred above. Now, we shall discuss the meaning ofhuman resources management (HRM) and other areas.Meaning and Definition of HRMIn simple sense, human resources management means employing people, developingtheir resources, utilizing, maintaining and compensating their services in tune with thejob and organizational requirements with a view to contribute to the goals of theorganization, individual and the society. Michael J. Jucius defined PersonnelManagement as “the field of management which has to do with planning, organizing,and controlling the functions of procuring, developing, maintaining and utilizing alabour force, such that the:ü Objectives for which the company is established are attained economically andeffectively,ü Objectives of all levels of personnel are serve to the highest possible degree, andü Objective of society are duly considered and served.”According to Pulapa Subba Rao, human resources management (HRM) is managing(planning, organizing, directing and controlling) the functions of employing, developing,compensating and utilizing human resources, resulting In the creation and developmentof human and industrial relations which would shape the future policies and practices ofhuman resource management, with a view to contribute proportionately (due to them)to the organizational, individual and social goals.
  3. 3. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 3Differences between Personnel Management and Human ResourcesManagement:Personnel Management is different from Human Resources Management. Personnelmeans persons employed. Hence, personnel management views the man as economicman who works for money or salary. Human resources management treats the people ashuman beings having economic, social and psychological needs. Thus, HRM is broaderin scope compared to personnel management. John Storey differentiated personnelmanagement from human resources management.Functions of HRMThe functions of HRM can be broadly classified into two categories:Managerial functions and Operative functions.I.Managerial Functions: Managerial functions of personnel management involveplanning, organizing, directing and controlling. All these functions influence theoperative functions.v Planning:It is a predetermined course of action. Planning pertains to formulating strategiesof personnel programmers and changes in advance that will contribute to theorganizational goals. In other words, it involves planning of human resources,requirements, recruitment, selection, training etc.v Organizing:An organization is a means to an end. It is essential to carry out the determinedcourse of action. In the words of J.C. Massie, an organization is a “structure and aprocess by which a co-operative group of human beings allocates its task amongits members, identifies relationships and integrates its activities towards acommon objective.”v Directing:The next logical function after completing planning and organizing is theexecution of the plan. The basic function of personnel management at any level ismotivating, commanding, leading and activating people. The willing and effectiveco-operation of employees for the attainment of organizational goals is possiblethrough proper direction.v Controlling:After planning, organizing and directing various actives of personnelmanagement, the performance is to be verified in order to know that thepersonnel functions are performed in conformity with the actual with the plans,identification of deviations if any and correcting of identified deviations.
  4. 4. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 4II. Operative Functions: The operative functions of human resources managementare related to specific activities of personnel management - Employment, Development,Compensation and Relations. All these functions are interacted with managerialfunctions. Further, these functions are to be performed in conjunction withmanagement functions.1. Employment: It is the first operative function of HRM. Employment is concernedwith securing and employing the people possessing required kind and level of humanresources necessary to achieve the organizational objectives. It covers the functions suchas job analysis, HR Planning, recruitment, selection, placement, induction and internalmobility.Job Analysis: It is the process of study and collection of information relating tothe operations and responsibilities of a specific job. It includes collection of data,information, facts and ideas relating to various aspects of jobs including men,machines and materials.Human Resources Planning: It is a process for determination and assuringthat the organization will have an adequate number of qualified persons,available at proper times, performing jobs which would meet the needs of theorganization and which would provide satisfaction for the individuals involved. Itinvolves estimation of present and future requirements and supply of humanresources based on objectives and long range plans of the organization.Recruitment: It is the process of searching for prospective employees andstimulating them to apply for jobs in an organization. It deals with identificationof existing sources of applicants and creation/identification of new sources ofapplicants.Selection: It is the process of ascertaining the qualifications, experiences, skills,knowledge etc., of an applicant with a view to appraising his/her suitability to ajob. This function includes:ü Framing and developing application blanks.ü Creating and developing valid and reliable testing techniques.ü Formulating interviewing techniques.ü Checking of references.ü Placement:ü Counseling the functional managers regarding placement.
  5. 5. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 5ü Conducting follow-up study, appraising employee performance in order todetermine employee adjustment with the job.ü Correcting misplacements, if any.ü Induction and Orientation: Induction and orientation are the techniques bywhich a new employee is rehabilitated in the changed surrounding andintroduced to the practices, policies, purposes and people etc., of theorganization.II. Human Resources Development:It is the process of improving, and changing the skills, Knowledge, creative ability,aptitude, values, commitment etc., based on present and future job and organizationalrequirements. This function includes:ü Performance Appraisal: It is the systematic evaluation of individuals withrespect to their performance on the job and their potential for development. Itincludes: Developing policies, procedures and techniques.ü Training: It is the process of imparting to the employees technical andoperating skills and knowledge. It includes: 1. Identification of training needs ofthe individuals and the company. 2. Developing suitable training programmes.ü Management Development: It is the process of designing and conductingsuitable executive development programmes so as to develop the managerialand human relations skill of employees. It includes: 1. Identification of the areasin which management development is needed. 2. Conducting developmentprogrammes.ü Career Planning and Development: It is the planning of one’s career andimplementation of career plans by means of education, training, job search andacquisition of work experiences. It includes internal and external mobility.ü Internal Mobility: It includes vertical and horizontal movement of anemployee within an organization. It consists of transfer, promotion anddemotion.ü Transfer: It is the process of placing employees in the same level jobs wherethey can be utilized more effectively in consistence with their potentialities andneeds of the employees and the organization. It also deals with:1. Developing transfer policies and procedures. 2. Guiding employees and line
  6. 6. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 6management on transfers.ü Promotion: It deals with upward reassignment given to an employee in theorganization to occupy higher position which commands better status and/orpay keeping in view the human resources of the employees and the jobrequirements.ü Demotion: It deals with downward reassignment to an employee in theorganization.ü Retention and Retrenchment Management: Employers prefer to retainmore talented employees while they retrench less talented employees.Employers modify existing human resource strategies and craft new strategiesin order to pay more salaries provide more benefits and create high quality ofwork life to retain the best employees. And managements pay less to the lesstalented employees and plan to retrench the misfits as well as unwantedemployees depending upon the negative business trends.ü Change and Organisation Development: Change implies the creation ofimbalances in the existent pattern or situation. Organisation development is aplanned process designed process designed to improve organizationaleffectiveness and health through modifications in individual and groupbehaviour, culture and systems of the organization using knowledge andtechnology of applied behavioural sciences.III. Compensation:It is the process of providing adequate and fair remuneration to the employees. Itincludes job evaluation, wage and salary administration, incentives, bonus, fringebenefits, social security measures etc.v Job Evaluation: It is the process of determining relative worth of jobs.• Select suitable job evaluation techniques.• Classify jobs into various categories.• Determining relative value of jobs in various categories.v Wage and Salary Administration: This is the process of developing andoperating a suitable wage and salary programme. It covers:• Conducting wage and salary survey.• Determining wage and salary rates based on various factors.
  7. 7. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 7• Administering wage and salary programmes.• Evaluating its effectiveness.v Incentives: It is the process of formulating, administering and revising theschemes of financial incentives in addition to regular payment of wages andsalary.It includes:• Formulating incentive payment schemes.• Helping functional managers on the operation.• Review them periodically to evaluate effectiveness.v Bonus: It includes payment of statutory bonus according to the Payment ofBonus Act, 1965 and its latest amendments.v Fringe Benefits: These are the various benefits at the fringe of the wage.Management provides these benefits to motivate the employees and to meettheir life’s contingencies.These benefits include:ü Disablement benefit.ü Housing facilities.ü Educational facilities to employees and children.ü Canteen facilities.ü Recreational facilities.ü Conveyance facilities.ü Credit facilities.ü Legal clinics.ü Medical, maternity and welfare facilities.ü Company stores.v Social Security Measures: Managements provide social security to theiremployees in addition to the fringe benefits. These measures include:¶ Workmen’s compensation to those workers (or their dependents) whoinvolve in accidents.¶ Maternity benefits to women employees. Sickness benefits and medicalbenefits.¶ Disablement benefits/allowance.¶ Dependent benefits.¶ Retirement benefits like provident fund, pension, gratuity etc.
  8. 8. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 8IV. Human Relations: Practicing various human resources policies and programmeslike employment, development and compensation and interaction among employeescreate a sense of relationship between the individual worker and management, amongworkers and trade unions and the management. It is the process of interaction amonghuman beings. Human relations is an area of management in integrating people intowork situations in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. It includes:¶ Understanding and applying the models of perception, personality,learning, intra and inter-personal relations, intra and inter-group relations.¶ Motivating the employees.¶ Boosting employee morale.¶ Developing the communication skills.¶ Developing the leadership skills.¶ Redressing employee grievances properly and in time b means of a wellformulated grievance procedure.¶ Handling disciplinary cases by means of an established disciplinaryprocedure.¶ Counseling the employees in solving their personal, family and workproblems and releasing their stress, strain and tensions.¶ Providing a comfortable work environment by reducing fatigue, monotonyboredom and industrial accidents.¶ Improving quality of work life of employees through participation andother means.V. Industrial Relations: The term ‘industrial relations’ refers to the study ofrelations among employees, employers, government and trade unions. Industrialrelations include:ü Indian labour marketü Trade unionismü Collective bargainingü Industrial conflictsü Workers’ participation in management andü Quality circles.VI. Recent Trends in HRM: Human Resources Management has beenadvancing at a fast rate. The recent trends in HRM include:¶ Quality of work life¶ Total quality in human resources¶ HR accounting, audit and research and
  9. 9. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 9¶ Recent techniques of HRM.SEOPE OF HUMAN RESOURCES MANAGEMENTThe scope of human resources management in the modern days is vast. In fact, thescope of HRM was limited to employment and maintenance of and payment of wage andsalary. The scope gradually enlarged to providing welfare facilities, motivation,performance appraisal, human resources management, maintenance of humanrelations, strategic human resources and the like. The scope has been continuouslyenlarging.The scope of Human Resources Management includes:ÿ Objectives of HRMÿ Organisation of HRMÿ Strategic HRMÿ Employmentÿ Developmentÿ Wage and salary administration/compensationÿ Maintenanceÿ Motivationÿ Industrial relationsÿ Participative management andÿ Recent developments in HRM.IMPORTANCE OF HUMAN RESOURCES MANAGEMENTHuman resources play a crucial role in the development process of modern economics.Arthur Lewis observed, “there are great differences in development countries whichseem to have roughly equal resources, so it is necessary to enquire into the difference inhuman behaviour.” It is often felt that though the exploitation of natural resources,availability of physical and financial resources and international aid play prominentroles in the growth of modern economies, none of these factors is more significant thanefficient and committed manpower. It is in fact said that all development comes fromthe human mind. Human Resources in the Nation’s Well-beingA nation with abundance of physical resources will not benefit itself unless humanresources make use of them. In fact, human resources with right attitude are solelyresponsible for making use of national resources and for the transformation oftraditional economies into the modern industrial and knowledge economies. Man Vis-à-
  10. 10. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 10vis Machine Most of the problems in organizational sectional sections are human andsocial rather than physical, technical or economic. No industry can be rendered efficient,so long as the basic fact remains unrecognized that it is principally human. It is not amass of machines and technical processes but a body of men.HRM and General Management: Management of an organisational in moderneconomies is not only complex and sophisticated but it is also vital influencing theeconomic growth of a country. One of the fundamental tasks of management is tomanage human resources in the service of the economic objectives of the enterprise.Successful management depends not solely, but significantly upon the ability to predictand control human behaviour.Role of HRM: Human Resources Management plays the most crucial role in themanagement of an organization. Human resources play crucial role in the conversionprocess of inputs. Product design, quality maintenance, rendering services etc., dependupon the efficiency of human resources. Similarly, human resources plays critical role inmarketing the products and services. Human resource also plays significant role inmanaging finances and managing information systems.Objectives of HRM: Objectives are pre-determined goals to which individual or groupactivity in an organization is directed. Objectives of HRM are influenced by socialobjectives, organizational objectives, functional objectives and individual objectives.Institutions are instituted to attain certain specific objectives. The objectives of theeconomic institutions are mostly to earn profits, and that educational institutions aremostly to impart education and/or conduct research so on and so forth. However, thefundamental objective of any organization is survival. Organizations are not justsatisfied with this goal. Further, the goal of most of the organisations is growth and/orprofits.The objectives of HRM may be as follows:µ To create and utilize able and motivated workforce, to accomplish the basicorganizational goals.µ To establish and maintain sound organizational structure and desirable workingrelationships among all the members of the organization.µ To secure the integration of individual and groups within the organization by co-ordination of the individual and group goals with those of the organization.µ To create facilities and opportunities for individual or group development so as tomatch it with the growth of the organization.µ To attain an effective utilization of human resources in the achievement oforganizational goals.
  11. 11. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 11µ To identify and satisfy individual and group needs by providing adequate andequitable wages, incentives , employee benefits and social security and measuresfor challenging work, prestige, recognition, security, status etc.HRM Objectives at Wiproü To respect the individual, as people are the greatest assets.ü To govern individual and company relationships with the higheststandard of conduct and integrity.ü To be close to the customer through employees.ü To achieve and maintain leadership in people management.HRM Policies, Procedures and Programmes:After the establishment of objectives of HRM, human resources policies are to beformulated Policies are general statements that guide thinking and action in decision-making.Definition of HRM Policy: A Policy is a plan of action. Brewster and Richbell definedHRM policies as, “set of proposals and actions that act as a reference point for managersin their dealings with employees”. “HR polices constitute guides to action. They furnishthe general standards or bases on which decisions are reached. Their genesis lies in anorganisation”s values, philosophy, concepts and principles”. HR policies guide thecourse of action intended to accomplish personnel objectives.What is HRM Procedure?Policies are general instructions whereas procedures are specific applications. Aprocedure is a well thought out course of action. It prescribes the specific manner inwhich a piece of work is to be done. Procedures are called “action guidelines.” They aregenerally derived from policies. Where policies define a broad field, procedures show asequence of activities within that area. The emphasis is on chronological, step-by-stepsequence of required actions. For instance, a student is required to complete severalitemized steps in order to register himself to complete several itemized steps for coursesin a university. The basic purpose of a procedure is to spell out clearly the way one is togo about doing something.Role of HR Manager:Human Resources Manager plays a vital role in the modern organization. He playsvarious strategic roles at different levels in the organization. Te roles of the HR Managerinclude roles of conscience, of a counselor, a mediator, a company spokesman, aproblem solver and a change agent.
  12. 12. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 12µ The Conscience Role: The conscience role is that of a humanitarian whoreminds the management of its morals and obligations to its employees.µ The Counsellor: Employees who are dissatisfied with the present job approachthe HR manager for counseling. In addition, employees facing various problemslike marital, health, children education/marriage, mental, physical and careeralso approach the HR managers. The HR Manager counsels and consults theemployees and offers suggestions to solve/overcome the problems.µ The Mediator: As a mediator, the HR manager plays the role of a peace-maker.He settles the disputes between employees and the management. He acts as aliaison and communication link between bothµ The Spokesman: He is a frequent spokesman for of representative of thecompany.µ The Problem-solver: He acts as a problem solver with respect to the issuesthat involve human resources management an overall long range organizationalplanning.µ The Change Agent: He acts as a change agent and introduces changes invarious existing programmes.JOB DESIGNJob design is defined as the process of deciding on the content of a job in terms of dutiesand responsibilities of the jobholders; on the methods to be used in carrying out the job,in terms of techniques, systems and procedures and on the relationships that shouldexist between the job holder and his superiors, subordinates and colleagues. Factoraffecting job design include organizational factors, environmental factors andbehavioural factors. Two important goals of job design:µ To meet the organizational requirements such as higher productivity, operationalefficiency, quality of product/service etc., andµ To satisfy the needs of the individual employees like interests, challenges,achievement or accomplishment etc. Finally, the goal of the job design is tointegrate the needs of the individual with the organizational requirements.Approaches to job Design: There are three important approaches to job design viz.,¶ (i) engineering approach¶ (ii) human approach and¶ (iii) job characteristics approach.i. Engineering Approach: This approach which studies the workscientifically is based on scientific management principles. These principlesseem to be quite rational and appealing as they point towards increased
  13. 13. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 13organizational performance.ii. Human Approach: Human relations approach to job design recognizes theneed to design the jobs which are interesting and rewarding.iii. Job Characteristics Approach: This approach assumes that employeeswill work hard when they are rewarded for the work they do and when thework gives them satisfaction. Therefore, motivation, satisfaction andperformance should be integrated in the job design. Jobs with skill variety,task identity, task significance, autonomy and feedback are called core jobdimensions. Core job dimensions will motivate the employees and result injob satisfaction and high performance.Job Rotation:Job rotation refers to the movement of an employee from one job to another. Jobsthemselves are not actually changed, only the employees are rotated among variousjobs. An employee who works on a routine/respective job moves to and works onanother job for some hours/days/months and backs up to the first job. This measurerelieves the employee from boredom and monotony, improves employee’s skillsregarding various jobs, prepares the competent employees and provides competitiveadvantage to the company These measures also improves worker’s self-image andprovides personal growth. However, frequent job rotations are not advisable in viewof their negative impact on the orgsnisation and the employee.Job Enlargement:Job enlargement means adding more and different tasks to a specialized job toprovide greater variety. This process is called horizontal job loading or horizontal jobenlargement. Job enlargement is a horizontal slice of the organization. It tacklesdissatisfaction and reduces monotony by increasing the variety and scope of tasks.This technique leads to specialization, it improves worker satisfaction, quality ofproduction and overall efficiency of the organization.Job Enrichment:Job enrichment loads the job vertically. Job enrichment means adding duties andresponsibilities that will provide for skill variety, task identity, task significance,autonomy and feedback on job performance. It tries to deal with dissatisfaction byincreasing job depth as work activities from a vertical slice of the organizational unitare combined in one job. As work becomes more challenging and workerresponsibility increases, motivation and enthusiasm also increase. Dale S. Beach hassuggested specific action steps for designing enriched jobs. They are:
  14. 14. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 14ü Creation of natural or logical work units,ü Combining several duties, requiring various skills into each job,ü The employee should have direct contact and knowledge about the people forwhom his product is meant,ü Vertical job loading is to incorporate some planning and controlling duties intothe job andü Feedback information should be provided to employees to correct and improvetheir performance.JOB ANALYSISProcurement is the first operative function of personnel management,which can be sub-divided into various sub-functions like human resourcesplanning, recruitment and selection. Management should determine the kind ofpersonnel required for a job and the number of persons to be employed. Theorganization should also find out the right man for the right job in the right time.The knowledge of the job is essential to perform these functions. In addition,establishment of the scientific standard in advance is comparing the applicantswith the job and to select the suitable personnel. This standard stipulates theminimum acceptable qualifications, skills and qualities required for adequate jobperformance. Stipulating the standard requires the knowledge regarding jobdesign, study of the job duties and responsibilities, requirements of the job,human abilities and qualities etc. job analyst is needed to know all thesefunctions and to perform various functions of HRM.¶ Job Terminology: Description of technical terminology is highly necessary inorder to facilitate the study of a job analysis. So, it is desirable to define the termsrelated to job analysis like task, position, job, occupation, job analysis, jobdescription, job specification and job classification.¶ Task: A task is an action or related group of action designed to produce a definiteoutcome or result.¶ Position: A position is a group of similar tasks and responsibilities assigned toone individual. The term is used in this narrow technical sense to facilitate moreprecise discussion of the job analysis technique.¶ Job: A job is “a group of positions that are similar as to the kind and level ofwork.” In some instances, only one position may be involved, simply because noother similar position exists. For example, in the small firm the position ofpersonnel manager also constitutes a job since there is only one personnel
  15. 15. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 15manager position in the organization. Further, there may be six employees, “all ofwhom are classified under the same title, yet each may perform slightly differentwork.” For example, there may be five or six cashiers in a large commercial balkbranch who may do different work.Occupation: An occupation “is a group of jobs that are similar as to the kind ofwork land are found throughout an industry or the entire country.” Anoccupation is la category of work found in many firms.¶ Job Analysis: The U.S. Department of Labour defined job analysis as “theprocess of determining, by observation and study and reporting pertinentinformation relating to the nature of a specific job. It is the determination of thetasks which comprise the job and of the skills, knowledge, abilities andresponsibilities required of the worker of a successful performance and whichdifferentiate one job from all others.”The aspects of job analysis include job description and jobspecification.¶ Job Description: A job description is “an organized, factual statement of theduties and responsibilities of a specific job.” In brief, it should tell what is to bedone, how it is done and why? It is a standard of function, in that it defines theappropriate and authorized content of a job.¶ Job Specification: A job specification is “a statement of the minimumacceptable human qualities necessary to perform a job properly.” In contrast tothe job description, it is a standard of personnel and designates the qualitiesrequired for acceptable performance.¶ Job Classification: A job classification is “a grouping of jobs on some specifiedbasis such as the kind of work or pay.” For example, a clerk, a teacher, anengineer, a chemist etc.Process of job AnalysisJob can be analysed through a process, which consists of seven basic steps. These stepsconsist of strategies, a collection of background information, selection of backgroundinformation, selection of job to be analysed, collection of job analysis data, developing ajob description, job specification and employee specification.¯ Strategies: The strategies of the company are the basis for any organizationalactivity including job analysis. If the strategy implementation needs innovativeskills and autonomy, they should be included in the job analysis.
  16. 16. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 16According to William P. Anthony the companies have to make four strategicchoices viz.ü The extent of employee involvement in job analysisü The level of details of job analysisü Timing and frequency of analysis andü Past-oriented vs. future-oriented job analysis.¯ Collection of Background Information: Background information consistsof organization charts class specifications and existing job descriptions.Organization charts show the relation of the job with other jobs in the overallorganizations. Class-specifications describe the general requirements of the classof job to which this particular job belongs. The existing job description providesa good starting point for job analysis.¯ Selection of Representative Position to be analysed: It would be toodifficult and too time consuming to analyse all the jobs. So, the job analyst has toselect some of the representative positions in order to analyse them.iv. Collection of job Analysis Data: This step involves actually analyzing a job bycollecting data on features of the job, required employee behaviour and humanrequirements.¯ Developing a job Description: This step involves describing the contents ofthe job in terms of functions, duties, responsibilities, operations etc. Theincumbent of the job is expected to discharge the duties and responsibilities andperform the functions and operations listed in job description.¯ Developing a job Specification: This step involves conversion of the jobdescription statements into a job specification. Job specification or jobrequirements describe the personal qualities, traits, skills, knowledge andbackground necessary for getting the job done.¯ Developing Employee Specification: This final step involves conversion ofspecifications of human qualities under job specification into an employeespecification. Employee specification describes physical qualification,educational qualifications, experience etc., which specify that the candidate withthese qualities possesses the minimum human qualities listed in the jobspecification.Job Description:Job description is an important document which is basically descriptive in nature andcontains a statement of job analysis. It serves to identify a job for consideration by other
  17. 17. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 17job analysts. It tells us what should be done, why it should be done, and where it shouldbe performed.Characteristics of Good job Description: Earnest Dale developed the followinghints for writing the job description:µ The job description should indicate the scope and nature of the work including allimportant relationships.µ (ii) The job description should be clear regarding the work of the position, dutiesetc.µ (iii) More specific words should be selected to showü (a) the kind of work,ü (b) the degree of complexity,ü (c) the degree of skill required,ü (d) the extent t which problems are standardized,ü (e) the extent of worker’s responsibility for each phase of the work andü (f) the degree and type of accountability.Action words such as analyse, gather, plan, confirm deliver, maintain, supervise andrecommend should be used.µ (iv) Supervisory responsibility should be shown to the incumbents.Brief and accurate statements should be used in order to accomplish the purpose.µ (v) Utility of the description in meeting the basic requirements should be checkedfrom the extent of understanding the job by reading the job description by a newemployeeThe Content of Job DescriptionThe job description normally contains the information on the following lines:¯ Job title¯ Organizational location of the job¯ Supervision given and received¯ Materials, tools, machinery and equipment worked with¯ Designation of the immediate superiors and subordinates¯ Salary levels: Pay , D.A., other allowances, bonus, incentive wage, method ofpayment, hours of work, shift and break¯ Complete list of duties to e performed separated according to daily, weekly,monthly and casual, estimated time to be spent on each duty¯ Definition of unusual terms¯ Conditions of work: location, time, speed of work, accuracy, health hazardsand accident hazards¯ Training and development facilities and¯ Promotional chances and channels.JOB SPECIFICATION
  18. 18. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 18It is a written statement of qualifications, traits, physical and mental characteristics thatan individual must possess to perform the job duties and discharge responsibilitieseffectively.Job Specification Information:The first step in the programme of job specification is to prepare a list of all the jobs inthe company and where they are located. The second step is to secure and write up theinformation about each of the jobs in a company. Usually, this information includes:ÿ i. physical specifications,ÿ ii. mental specifications,ÿ iii. emotional and social specifications andÿ iv. behavioural specifications.¶ Physical specifications: Physical specifications include the physicalqualifications or physical capacities which vary from job to job. Physicalqualifications or capacities include physical features like height, weight, chest,vision, hearing, ability to lift weight, ability to carry weight, health, age, capacityto use or operate machines, tools equipment etc.¶ ii. Mental specifications: Mental specifications include ability to perform,arithmetical calculations to interpret data, information blueprints, to readelectrical circuits, ability to plan, reading abilities, scientific abilities, judgment,ability to concentrate, ability to handle variable factors, general intelligence,memory etc.¶ iii. Emotional and social specifications: Emotional and social specificationsare more important for the post of managers, supervisors, foremen etc. Theseinclude emotional stability, flexibility, social adaptability in human relationship,personal appearance including dress, posture, poise, features and voice requiredby the job.¶ iv. Behavioural specifications: Behavioural specifications play an importantrole in selecting the candidates for higher level jobs in the organizationalhierarchy. This specification seeks to describe the acts of managers rather thanthe traits that cause the acts. These specifications include judgments, research,creativity, teaching ability, maturity (capable of accepting responsibility) trial ofconciliation, self-reliance (self-starter sticks to own decisions), dominance (givingorders in a personal way) etc.Meaning & Objectives of HR Planning:
  19. 19. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 19In simple terms, human resource planning means deciding the number and type of thehuman resources required for each job, unit and the total company for a particularfuture date in order to carry our organizational activities. E.W. Vetter viewed humanresources planning as “a process by which an organization should move from its currentmanpower position to its desired manpower position. Through planning management,strive to have the right number and right kind of people at the right place at the righttime, doing things which result in both the organization and the individual receivingmaximum long-run benefit.”Objectives of Human Resources Planning: The important objectives of manpowerplanning in an organization areØ (i)to recruit and retain the human resources of required quantity and quality.Ø (ii) to foresee the employee turnover and make the arrangements for minimizingturnover and filling up of consequent vacancies.Ø (iii) to meet the needs of the programmes of expansion, diversification etc.:Ø (iv) to foresee the impact of technology on work, existing employees and futurehuman resource requirements.Ø (v) to improve the standards, skill, knowledge, ability, discipline etc.Ø (vi) to assess the surplus of shortage of human resources and take measuresaccordingly;Ø (vii) to maintain congenial industrial relations by maintaining optimum level andstructure of human resources;Ø (viii) to minimize imbalances caused due to non-availability of human resourcesof the right kind, right number in right time and right place;Ø (ix) to make the best use of its human resources andØ (x) to estimate the cost of human resources.Benefits of HR Planning:¶ Human Resources Planning (HRP) anticipates not only the required kind andnumber of employees but also determines the action plan for all the functions ofpersonnel management. The major benefits of human resources planning are:¶ It checks the corporate plan of the organization.¶ It offsets uncertainty and change. But the HRP offsets uncertainties and changesto the maximum extent possible and enables the organization to have right menat the right time and in the right place.¶ It provides scope for advancement and development of employees training,development etc.Factors Affecting HR Planning:
  20. 20. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 20Several factors affect HRP. These factors can be classified into external factors andinternal factors.External Factors: External Factors include:Ø (i) Government Policies: Policies of the government like labour policy, industrialrelations policy, policy towards reserving certain jobs for different communitiesand sons-of the-soil etc.,Ø (ii) Level of Economic Development: Level of economic development determinesthe level of HRD in the country and thereby the supply of human resources inthe future in the country.Ø (iii) Business Environment: External business environmental factors influencethe volume and mix of production and thereby the future demand for humanresources.Ø (iv) Information Technology: Information technology bought amazing shifts inthe way how do businesses operate? These shifts include business processreengineering, enterprise resources planning and supply drain management.Ø (v) Level of Technology: Level of technology determines the kind of humanresources required.Ø (vi) International Factors: International factors like the demand for and supplyof human resources in various countries.Internal Factors : Internal Factors affecting HRP include:ü (i) Company strategies: Company’s polices and strategies relating to expansion,diversification, alliances etc. determine the human resources demand in terms ofquality and quality.ü (ii) Human resources policies: Human resources policies of the companyregarding quality of human resources, compensation level, quality of work lifeetc. influence human resources plan.ü (iii) Job Analysis: Fundamentally, human resources plan is based on job analysis,job description and job specification. Thus, the job analysis determines the kindof employees required.ü (iv) Time horizons: Companies with a stable competitive environment can planfor the long run, whereas firms with and unstable competitive environment canplan for only short-term range. Exhibit 4.2 presents the degree of uncertainty andlength of the planning period.ü (v) Type and quality of information: Any planning process needs qualitative andaccurate information. This is more s with human resources plan. Exhibit 4.3presents HRP information.
  21. 21. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 21ü (vi) Company’s production/operations policy: Company’s policy regarding howmuch to produce and how much to buy from outside to prepare a final productinfluences the number and kind of people required.ü (vii) Trade unions: Influence of trade unions regarding the number of workinghours per week, recruitment sources etc., and affect HRP.The Human Resource Information System (HRIS)The Human Resource Information System (HRIS) is a software or online solution forthe data entry, data tracking, and data information needs of the Human Resources,payroll, management, and accounting functions within a business. Normally packagedas a data base, hundreds of companies sell some form of HRIS and every HRIS hasdifferent capabilities. Pick your HRIS carefully based on the capabilities you need inyour company.The Human Resource Information Systems (HRIS) provide:þ Management of all employee information.þ Reporting and analysis of employee information.þ Company-related documents such as employee handbooks, emergencyevacuation procedures, and safety guidelines.þ Benefits administration including enrollment, status changes, and personalinformation updating.þ Complete integration with payroll and other company financial software andaccounting systems.þ Applicant and resume management.The HRIS that most effectively serves companies tracks:þ attendance,þ pay raises and history,þ pay grades and positions held,þ performance development plans,þ training received,þ disciplinary action received,þ personal employee information, and occasionally,þ management and key employee succession plans,þ high potential employee identification, andþ applicant tracking, interviewing, and selection.An effective HRIS provides information on just about anything the company needs totrack and analyze about employees, former employees, and applicants. Your companywill need to select a Human Resources Information System and customize it to meetyour needs. With an appropriate HRIS, Human Resources staff enables employees to do
  22. 22. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 22their own benefits updates and address changes, thus freeing HR staff for more strategicfunctions. Additionally, data necessary for employee management, knowledgedevelopment, career growth and development, and equal treatment is facilitated.Finally, managers can access the information they need to legally, ethically, andeffectively support the success of their reporting employees.Strategic HR Planning:Strategic HR planning is an important component of strategic HR management. It linksHR management directly to the strategic plan of your organization. Most mid- to largesized organizations have a strategic plan that guides it in successfully meeting itsmission. Organizations routinely complete financial plans to ensure they achieveorganizational goals and while workforce plans are not as common, they are just asimportant.Strategic HR management is defined as: Integrating human resource managementstrategies and systems to achieve the overall mission, strategies, and success of the firmwhile meeting the needs of employees and other stakeholders.The overall purpose of strategic HR planning is to:ü Ensure adequate human resources to meet the strategic goals and operationalplans of your organizationü the right people with the right skills at the right timeKeep up with social, economic, legislative and technological trends that impacton human resources in your area and in the sectorRemain flexible so that your organization can manage change if the future isdifferent than anticipated.ü Strategic HR planning predicts the future HR management needs of theorganization after analyzing the organization’s current human resources, theexternal labour market and the future HR environment that the organization willbe operating in.The strategic HR planning process: The strategic HR planning process has foursteps:þ Assessing the current HR capacityþ Forecasting HR requirementsþ Gap analysisþ Developing HR strategies to support organizational strategiesþ Assessing current HR capacityBased on the organization’s strategic plan, the first step in the strategic HR planningprocess is to assess the current HR capacity of the organization. The knowledge, skills
  23. 23. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 23and abilities of your current staff need to be identified. This can be done by developing askills inventory for each employee.Forecasting HR requirements: The next step is to forecast HR needs for the futurebased on the strategic goals of the organization. Realistic forecasting of humanresources involves estimating both demand and supply.Gap analysis: The next step is to determine the gap between where your organizationwants to be in the future and where you are now. The gap analysis includes identifyingthe number of staff and the skills and abilities required in the future in comparison tothe current situationDeveloping HR strategies to support organizational strategies: There are fiveHR strategies for meeting your organization’s needs in the future:¯ Restructuring strategies¯ Training and development strategies¯ Recruitment strategies¯ Outsourcing strategies¯ Collaboration strategiesRestructuring strategies: This strategy includes:ü Reducing staff either by termination or attritionü Regrouping tasks to create well designed jobsü Reorganizing work units to be more efficientTraining and development strategies: This strategy includes:ü Providing staff with training to take on new rolesü Providing current staff with development opportunities to prepare them forfuture jobs in your organizationRecruitment strategies: This strategy includes:ü Recruiting new staff with the skill and abilities that your organization will need inthe futureü Considering all the available options for strategically promoting job openings andencouraging suitable candidates to apply.Outsourcing strategies: This strategy includes:
  24. 24. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 24ü Using external individuals or organizations to complete some tasksü Many organizations look outside their own staff pool and contract for certainskills.ü This is particularly helpful for accomplishing specific, specialized tasks that don’trequire ongoing full-time work.Collaboration strategies: Finally, the strategic HR planning process may lead toindirect strategies that go beyond your organization. By collaborating with otherorganizations you may have better success at dealing with a shortage of certain skills.
  25. 25. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 25II - UNITRECRUITMENT & SELECTIONIntroduction to Recruitment:Once the required number and the kind of human resources are determined, themanagement has to find the places where required human resources are/will beavailable and also work out strategies for attracting them towards the organizationbefore selecting suitable candidates for jobs. This process is generally known asrecruitment. Some people use the term ‘recruitment’ for employment. These two are notone and the same. Recruitment is only one of the steps in the entire employmentprocess. Some others use the term recruitment for selection. These two terms aredifferent. Technically speaking, the function of recruitment precedes the selectionfunction and it includes only finding, developing the sources of prospective employeesand attracting them to apply for jobs in an organization, whereas the selection is theprocess of finding out the most suitable candidate to the job out of the candidatesattracted(i.e., recruited).Recruitment Definition:Recruitment is defined as “a process to discover the sources of manpower to meet therequirements of the staffing schedule and to employ effective measures for attractingthat manpower in adequate numbers to facilitate effective selection of an efficientworkforce.” Edwin B.Flippo defined recruitment as “the process of searching forprospective employees and stimulating them to apply for jobs in the organization.”These definitions can be analyzed by discussing the processes of recruitment throughsystems approach.Objectives of Recruitment: The objectives of recruitment are:i. To attract people with multi-dimensional skills and experiences that suit thepresent and future organizational strategies,ii. To induct outsiders with a new perspective to lead the company,iii. To infuse fresh blood at all levels of the organization,iv. To develop an organizational culture that attracts competent people to thecompany,v. To search or head hunt/head pouch people whose skills fit the company’svalues,vi. To devise methodologies for assessing psychological traits,
  26. 26. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 26vii. To seek out non-conventional development grounds of talent,viii. To search for talent globally and not just within the company,ix. To design entry pay that competes on quality but not on quantum,x. To anticipate and find people for positions that does not exist yet.Employee Recruitment Methods: Recruitment can be in two different ways¯ Internal recruitment is when the business looks to fill the vacancy from withinits existing workforce.¯ External recruitment is when the business looks to fill the vacancy from anysuitable applicant outside the business.Internal Recruitment Sources:They include those who are employed in the organisation or those who were in the pastemploy (but quit voluntarily or due to retrenchment) and would return if theorganisation likes to re-employ. The advantage in looking for internal resources is thatthey provide opportunities for better deployment and utilisation of existing humanresources through planned placements and transfers. It will also motivate peoplethrough planned promotions and career development when vacancies exist in highergrades. The law provides preferences to retrenched employees when vacancies arise infuture.Internal recruitment methods are not only cost efficient, they also support employeesatisfaction and moral. Before looking outside of the company for talent, take the time tolook at the current employees. Nothing causes more dissatisfaction than havingsomeone new take the position that an employee has been working to get promoted to.Promoting within requires less training and transition. Here are two ways to accomplishthis:Job postings – post open positions for employees to apply for before external hires areconsidered.Skills inventory – have HR keep a record of employee skills. Review the inventory toidentify any employees that might qualify for the job. Invite them to apply.Internal Recruitment – Advantages1.Cheaper and quicker to recruit2. People already familiar with the business and how it operates3. Provides opportunities for promotion with in the business – can be motivating4. Business already knows the strengths and weaknesses of candidatesInternal Recruitment - Disadvantages :1.Limits the number of potential applicants2.No new ideas can be introduced from outside the business
  27. 27. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 273.May cause resentment amongst candidates not appointed4.Creates another vacancy which needs to be filledExternal RecruitmentThe External Recruitment is the source of the fresh blood for the organization. Asa very critical HR Process, the external recruitment process has to be set up verycarefully. The external recruitment is a process, which is very sensitive to changes on theexternal market and the managers are very sensitive about that as well.The most popular ways of recruiting externally are:Job centres – These are paid for by the government and are responsible for helpingthe unemployed find jobs or get training. They also provide a service for businessesneeding to advertise a vacancy and are generally free to use.Job advertisements – Advertisements are the most common form of externalrecruitment. They can be found in many places (local and national newspapers, noticeboards, recruitment fairs) and should include some important information relating tothe job (job title, pay package, location, job description, how to apply-either by CV orapplication form). Where a business chooses to advertise will depend on the cost ofadvertising and the coverage needed (i.e. how far away people will consider applying forthe jobRecruitment agency – Provides employers with details of suitable candidates for avacancy and can sometimes be referred to as ‘head-hunters’. They work for a fee andoften specialise in particular employment areas e.g. nursing, financial services, teacherrecruitmentPersonal recommendation – Often referred to as ‘word of mouth’ and can be arecommendation from a colleague at work. A full assessment of the candidate is stillneeded however but potentially it saves on advertising cost.Unsolicited applicants – most business will have unsolicited resumes. Make surethese resumes are kept and filed. Review these before beginning to advertise. The rightcandidate might very well be in that file.Events – job fairs, open houses. These are costly to run but can produce excellentresults. The number of positions available can best determine if it is worth theinvestment.
  28. 28. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 28Campus Placements – co-op programs and job placement programs are a great wayto bring in new employees. Contact local colleges or universities to see if there is anopportunity to work together.Modern Sources of Recruitment: A number of modern recruitment sources arebeing used by the corporate sector in addition to traditional sources.ÿ Employee Referrals: Present employees are well aware of the qualifications,attitudes, experience and emotions of their friends and relatives. They are alsoaware of the job requirements and organizational culture of their company. Assuch, they can make preliminary judgment regarding the match between the joband their friends or relatives. Hence, the HR managers of various companiesdepend on the present employees for reference of the candidates for various jobs.This source reduces the cost and time required for recruitment. Further, thissource enhances the effectiveness of recruitment. HR managers offer variousincentives/rewards including cash incentives to the current employees forreferring the best candidates.Modern external sources include: Walk in and consult in, head-hunting, body-shopping, mergers and acquisitions, tele-recruitment and outsourcing.Ï Walk-in: The busy organizations and the rapid changing companies do not findtime to perform various functions of recruitment. Therefore, they advise thepotential candidates to attend for an interview directly and without a priorapplication on a specified date, time and at a specified place. The suitablecandidates from among the interviewees will be selected for appointment afterscreening the candidates through tests and interviews.Ï (ii) Consult-in: The busy and dynamic companies encourage the potential jobseekers to approach them personally and consult them regarding the jobs. Thecompanies select the suitable candidates from among such candidates throughthe selection process.Ï (iii) Head-hunting: The companies request the professional organizations tosearch for the best candidates particularly for the senior executive positions. Theprofessional organizations search for the most suitable candidates and advise thecompany regarding the filling up of the positions. Head-hunters are also called‘search consultants’.Ï (iv) Body shopping: Professional organizations and the hi-tech traininginstitutes develop the pool of human resources for the possible employment. Theprospective employers contact these organizations to recruit the candidates.
  29. 29. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 29Otherwise, the organizations themselves approach the prospective employers toplace their human resources. These professional and training institutions arecalled ‘body shoppers’ and these shopping is also known as employee leasingactivity. The leasing firms employ the people and lease them for the use byvarious needy companies for payment of a commission.Ï (v) Mergers & Acquisitions: Business alliances like acquisitions, mergers,and take-overs help in getting human resources. In addition, the companies doalso have alliances in sharing their human resources on ad-hoc basis.It does mean that the company with surplus human resources offers the servicesof their employees to other needy organizations.Ï (vi) E-Recruitment: The technological revolution in telecommunicationshelped the organizations to use internet as a source of recruitment. Organizationsadvertise the job vacancies through the World Wide Web (www). The job seekerssend their applications through e-mail using the Internet. Alternatively, jobseekers place their CVs in the world wide web/internet, which can be drawn bythe prospective employers depending upon their requirements.External Recruitment Sources: Organisations may look for people outside it. Entrylevel jobs are usually filled by new entrants from outside. Also in the followingcircumstances organisations may resort to outside sources:Ï a. when suitably qualified people are not available.Ï b. when the organisation feels it necessary to impart new blood for fresh ideas.Ï c. when it is diversifying into new avenues andÏ d. when it is merging with another organisation.External Recruitment – Advantages¯ Outside people bring in new ideas¯ Larger pool of workers from which to find the best candidate¯ People have a wider range of experienceExternal Recruitment - Disadvantages :Longer processMore expensive process due to advertisements and interviews requiredSelection process may not be effective enough to reveal the best candidate
  30. 30. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 30Recruitment Strategies: The recruitment strategies formulated by the companiesinclude:In-sourcing or Outsourcing: Companies recruit the candidates, employ them, trainand develop them and utilize the human resources of these candidates. This strategy iscalled ‘in-sourcing’. Companies formulate and implement this strategy when thecompany’s growth is stable. Some organizations employ and develop the candidateswith a view to provide the human resources to other companies which concentrate onmanufacturing, servicing and such other activities. Some manufacturing and servicecompanies depend for their human resource requirements on such externalorganizations whose core business is to provide human resources. This strategy is called‘outsourcing’. Most of the IT companies follow this strategy. Even manufacturingcompanies also depend on outsourcing for the running the non-core business likecanteens, hospitals, office maintenance, security, house-keeping, plant maintenance etc.outsourcing strategy is more suitable for both the fast growing and diversifyingcompanies.Vast and Fast Source: The fast developing IT industry and high technology orientedindustry invariably require vast human resources within the short span of time. The beststrategy to get vast human resources immediately is through internet.Recruitment Policy: Recruitment policy of any organization is derived from the HRpolicy of the same organization. In other words, the former is a part of the latter.However, recruitment policy by itself should take into consideration the government’sreservation policy, policy Regarding sons of soil etc., HR policies of other organizationsregarding merit, internal sources, social responsibility in absorbing minority sections,women etc. recruitment policy should commit itself to the organization’s HR policy likeenriching the organization’s human resources or serving the community by absorbingthe weaker sections and disadvantaged people of the society, motivating the employeesthrough internal promotions, improving the employee’s loyalty to the organization byabsorbing the retrenched or laid-of employees or casual/temporary employees ordependents of present/former employees etc.Limitations for Recruitment – Challenges:Child Labour (Prohibition and Regulation ) Act, 1986: This Act replacesthe Employment of Children Act, 138, and seeks to prohibit the engagement ofchildren below 14 years of age in certain employment and to regulate theconditions of work of children in certain other employment. Penalties forcontravening the provisions are fine and imprisonment.2. The Employment Exchanges (Compulsory Notification of Vacancies) Act,1959: The Act requires all employers to notify vacancies (with certain
  31. 31. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 31exemptions) occurring in their establishments to the prescribed employmentexchanges before they are filled3. The Apprentices Act, 1961: The Act seeks to provide for the regulation andcontrol of training apprentices and for matters connected therewith. The Actprovides for a machinery to lay down syllabi and prescribe period of training,reciprocal obligations for apprentices and employers etc. The responsibility forengagement of apprentices lies solely with the employer. An apprentice is not aworkman.4. The Contract Labour (Regulation and Abolition) Act, 1970: This Actseeks to regulate the employment of contract labour in certain establishmentsand to provide for the abolition in certain circumstances. The Act applies to everyestablishment / contractor employing 20 or more persons.5. Bonded Labour System (Abolition) Act, 1976: This Act seeks to providefor the abolition of bonded labour system with a view to preventing the economicand physical exploitation of the weaker sections of society.6. The Inter-state Migrant Workmen Act, 1979: This Act safeguards theinterests of the workmen who are recruited by contractors from one state forservice in an establishment situated in another state and to guard against theexploitation of such workmen by the contractors.7. The Factories Act, 1948, the Mines Act, 1952, etc. : Certain legislation,like the Factories Act and the Mines Act prohibit employment of women (in nightwork, underground work etc.) and children (below 14 years of age) in certaintypes of jobs.8. Reservations for Special Groups: In pursuance of the constitutionalprovisions, statutory reservations and relaxed norms have been provided ineducation and employment to candidates belonging to Scheduled Castes andScheduled Tribes in central and state services including departmentalundertakings, government corporations, local bodies and other quasi –government organisations. Most state governments have issued policy directivesextending the reservations to notified backward communities also.9. Sons -of -the-Soil: The question of preference to local population in thematter of employment has become more complex toady than ever before. TheGovt. of India has recognised the main elements of the arguments on behalf ofthe sons of the soil and laid down certain principles in the matter of recruitmentto its public sector projects, whose implementation, however, is left to theundertakings themselves.10. Displaced Persons: Whenever major projects are set up, large tracts ofland are acquired for the purpose, displacing several hundred households in eachcase. Payment of compensation for land was at one time considered a sufficientdischarge of obligation towards persons who are dispossessed of land. This alonedid not solve the question of earning livelihood.
  32. 32. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 32Realistic Job Preview:A Realistic Job Preview is an approach that enables the communication of aspects of ajob to prospective applicants before the applicant accepts the offer of a position.For a RJP to be effective, it is critical to allow employees to obtain a balanced view of thepositive and negative aspects of the position. Discrepancies between the applicant of theposition and the actual operational requirements of the job role may lead to lowercommitment levels and increased turnover. A RJP works by providing applicants withinformation that clarifies their expectations and allows them to have a more realisticperspective of the role. By providing a well designed and consistent RJP process to allpotential employees, the organization can reduce turnover and increase commitment byallowing the employer to match job requirements with the applicant’s qualities and theapplicant to match their personal needs with the position requirements and theorganizational culture.Research on the effects of utilizing a RJP has demostrated cost savings due to increasedperformance and job survival; decreased levels in turnover by better meeting employeeexpectations, improving their ability to cope, providing a perception of honesty for theorganization and allowing them to self-select themselves for the position. In addition,there is also increased post-employment job satisfaction by giving them preparation tocope with the demands of the position and making them feel that the employer has beenhonest in their recruitment process.Using Realistic Job Previews for recruitmentBy providing applicants with an insight into the job vacancy – both the attractive andless attractive aspects of the role – many candidates decide for themselves that the job isnot for them. The Realistic Job Previews (RJP) helps the applicant to really thinkthrough whether the new role is for them – whether they will fit into the organisationand enjoy the role.The Realistic Job Preview should be used to: Help unsuitable applicants withdrawthemselves before the formal recruitment process takes place. Ensure such ‘self-elimination’ is seen in a positive, brand aligned and advisory way. These applicants mayalso be customers and it is important to treat them with dignity.The benefits of Realistic Job PreviewRealistic Job Previews can help with volume recruitment by removing around 15% ofapplicants through clarifying and clearly stating the job requirements, therebyincreasing the quality of applications received. It also reduces resignation rate of
  33. 33. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 33recruits and ensures candidates finally selected are likely to align well with the valuesand culture of the organization.Selection:Selection is a process of measurement, decision making and evaluation. The goal of aselection system is to bring in to the organisation individuals who will perform well onthe job. To have an accurate and fair selection system, an organisation must use reliableand valid measures of job applicant characteristics. In addition, a good selection systemmust include a means of combining information about applicant characteristics in arational way and producing correct hire and no-hire decisions. A good personnelselection system should add to the overall effectiveness of the organisation.Organisations vary in the complexity of their selection system. Some merely skimapplications blanks and conduct brief, informal interviews, whereas others take toresting, repeated interviewing, background checks and so on. Although the latter systemis more costly per applicant, many benefits are realised from careful, thorough selection.An organisation needs to have members who are both skilled and motivated to performtheir roles. Either such members can be identified by careful selection or attempts canbe made to develop them after hire by extensive training. Thus cursory selection maygreatly increase training and monitoring costs, whereas spending more on the selectionprocess will reduce these post-hire expenses.Selection procedure:Selection procedure employs several methods of collecting information about thecandidate’s qualifications, experience, physical and mental ability, nature andbehaviour, knowledge, aptitude and the like for judging whether a given applicant issuitable or not for the job. Therefore, the selection procedure is not a single act but isessentially a series of methods or stages by which different types of information can besecured through various selection techniques. At each step, facts may come to lightwhich are useful for comparison with the job requirement and employee specifications.Steps in Scientific Selection Process(i) Job Analysis, (ii) Recruitment. (iii) Application Form, (iv) Written Examination, (v)Preliminary Interview (iv) Business Games (vii) Tests. (viii) Final Interview. (ix) MedicalExamination (x) Reference Checks. (xi) Line Manager’s Decision. (xii) Job offer (xiii)Employment.Job Analysis: Job analysis is the basis of selecting the right candidate. Everyorganization should finalize the job analysis, job description, job specification andemployee specifications before proceeding to the next stop of selection.
  34. 34. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 34Human Resource Plan: Every company plans for the required number of and kind ofemployees for a future date. This is the basis for recruitment function.Recruitment: Recruitment refers to the process of searching for prospective employeesand stimulating then to apply for jobs in an organization. It is the basis for theremaining techniques of the selection and the latter varies depending upon the former.It develops the applicants’ pool.Development of Bases for Selection: The Company has to select the appropriatecandidates from the applicants’ pool. The company develops or borrows the appropriatebases/techniques for screening the candidates in order to select the appropriatecandidates for the jobs.Application Form: Application Form is also known as application blank. Thetechnique of application bank is traditional and widely accepted for securinginformation from the prospective candidates. It can also be used as a device to screenthe candidates at the preliminary level. Many companies formulate their own style ofapplication forms depending upon the requirement of information based on the size ofthe company, nature of business activities, type and level of the job etc. Information isgenerally required on the following items in the application forms: Personal backgroundinformation, Educational attainments, Work experiences, Salary , Personal details andReferences.Written Examination: The organizations have to conduct written examination forthe qualified candidates after they are screened on the basis of the application blanks soas to measure the candidate’s ability in arithmetical calculations, to know thecandidates’ attitude towards the job, to measure the candidates’ aptitude, reasoning,knowledge in various disciplines, general knowledge and English language.Preliminary Interview: The preliminary interview is to solicit necessary informationfrom the prospective applicants and to assess the applicant’s suitability to the job. Thismay be conducted by an assistant in the personnel department. The information thusprovided by the candidate may be related to the job or personal specifications regardingeducation, experience, salary expected, aptitude towards the job, age, physicalappearance and other physical requirements etc. Thus, preliminary interview is usefulas a process of eliminating the undesirable and unsuitable candidates. If a candidatesatisfied the job requirements regarding most of the areas, he may be selected forfurther process. Preliminary interviews are short and known as stand-up interviews orsizing-up of the applicants or screening interviews. However, certain required amount ofcare is to be taken to ensure that the desirable workers are not eliminated. Thisinterview is also useful to provide the basic information about the company to thecandidate.
  35. 35. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 35Business Games: Business games are widely used as a selection technique forselecting management trainees, executive trainees and managerial personnel at junior,middle and top management positions. Business games help to evaluate the applicantsin the areas of decision-making identifying the potentialities, handling the situations,problem-solving skills, human relations skills etc. Participants are placed in ahypothetical work situation and are required to play the role situations in the game. Thehypothesis is that the most successful candidate in the game will be the most successfulone on the job.Group Discussion: The technique of group discussion is used in order to securefurther information regarding the suitability of the candidate for the job. Groupdiscussion is a method where groups of the successful applicants are brought around aconference table and are asked to discuss either a case study or a subject-matter. Thecandidates in the group are required to analyses, discuss, find alternative solutions andselect the sound solution. A selection panel then observes the candidates in the areas ofinitiating the discussion, explaining the problem, soliciting unrevealing informationbased on the given information and using common sense, keenly observing thediscussion of others, clarifying controversial issues, influencing others, speakingeffectively, concealing and mediating arguments among the participants andsummarizing or concluding apply. The selection panel, based on its observation, judgesthe candidates’ skill and ability and ranks them according to their merit. In some cases,the selection panel may also ask the candidates to write the summary of the groupdiscussion in order to know the candidates’ writing ability as well.Test: Psychological tests play a vital role in employee selection. A psychological test isessentially an objective and standardized measure of sample of behavior from whichinferences about future behavior and performance of the candidate can be drawn.Objectivity of tests refers to the validity and reliability of the instruments in measuringthe ability of the individuals. Objectivity provides equal opportunity to all the jobseekers without any discrimination against sex, caste etc. standardization of test refersto uniformity of the total behavior of the prospective employee on the job.Types of Test: Tests are classified into six types. They are Aptitude tests, Achievementtests , Situational tests, Interest tests, Personality tests and Multidimensional testing.Aptitude tests: These tests measure whether an individual has the capacity or latentability to learn a given job if given adequate training. Aptitudes can be divided intogeneral and mental ability or intelligence and specific aptitudes such as mechanical,clerical, manipulative capacity etc.Emotional Quotient (EQ): Most of the organizations realized that emotionalinvolvement and commitment of the employees determine their contribution to the
  36. 36. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 36company rather than their intelligence quotient. As such, emotional quotient (EQ) isused as important criteria in the employee selection process.Achievement Tests: These tests are conducted when applicants claim to knowsomething as these tests are concerned with what one has accomplished. These tests aremore useful to measure the value of a specific achievement when an organization wishesto employ experienced candidates. These tests are classified into: (a) Job knowledgetest: and (b) Work sample test.Situational test: This test evaluates a candidate in a similar real life situation. In thistest, the candidate is asked either to cope with the situation or solve critical situations ofthe job.Interest tests: These tests are inventories of the likes and dislikes of candidates inrelation to work, job, occupations, hobbies and recreational activities. The purpose ofthis test is to find out whether a candidate is interested or disinterested in the job forwhich he is a candidate and to find out in which area of the job range/occupation thecandidate is interested. The assumption of this test is that there is a high correlationbetween the interest of a candidate in a job and job success. Interest inventories are lessfaked and they may not fluctuate after the age of 30.Personality Tests: These tests prove deeply to discover clues to an individual’s valuesystem, his emotional reactions and maturity and characteristic mood. They areexpressed in such traits like self-confidence, tact, emotional control, optimism,decisiveness, sociability, conformity, objectivity, patience, fear, distrust, initiative,judgment dominance of submission, impulsiveness, sympathy, integrity, stability andself-confidence.Cognitive Ability Tests: These tests measure mathematical and verbal abilities.Popularly known tests of this category include Graduate Record Examination (GRE) andScholastic Aptitude Test (SAT).Wechsler Adult Intelligence Scale: this is a comprehensive test including generalinformation, arithmetic, similarities, vocabulary, picture completion, picturearrangement, object assembly and similar items.Wonderlic Personnel Test: This test includes perceptual, verbal and arithmetic.Polygraph Tests: The polygraph is an instrument that records changes in breathing,blood pressure, pulse and skin response associated with sweating of palms and plotsthese reactions on paper.
  37. 37. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 37Multi-dimensional Testing: However, the need for multi-skills is being felt by mostof the companies’ consequent upon globalization, competitiveness and the consequentcustomer-centred strategies. Organization have to develop multi-dimensional testing inorder to find out whether the candidates possess a variety of skills or not, candidate’sability to integrate the multi-skills and potentiality to apply them based on situationaland functional requirement.Employment Interview: Final interview is usually followed by testing. This is themost essential step in the process of selection. In this step, the interviewer matches theinformation obtained about the candidate thorough various means to the jobrequirements and to the information obtained through his own observation during theinterview.Various Types of interviews: 1.Priliminary Interview 2.Core Interview 3.Decision-Making InterviewPriliminary Interview: Informal Interview & Unstructured InterviewÏ Informal Interview: This is the interview which can be conducted at any placeby any person to secure the basic and non-job related information. theinteraction between the candidate and the personnel manager when the formermeets the latter to enquire about the vacancies or additional particulars inconnection with the employment advertisement is an example of informalinterview.Ï Unstructured Interview: In this interview, the candidate in given the freedomto tell about himself by revealing his knowledge on various items/areas, hisbackground , expectations, interest etc. Similarly, the interviewer also providesinformation on various items required by the candidate.Core Interview: It is normally the interaction between the candidate and the lineexecutive or experts on various areas of no knowledge, skill, talent etc. this interviewmay take various forms like: Background Information Interview, Job and ProbingInterview, Stress Interview, Stress Interview, Group Discussion Interview, Formal andStructured Interview, Panel Interview & Depth Interview.Background Information Interview: This interview is intended to collectthe information which is not available in the application blank and to check thatinformation provided in the application blank regarding education, place ofdomicile, family, health, interests, hobbies, likes, dislikes and extracurricularactivities of the applicant.
  38. 38. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 38Job and Probing Interview: This interview aims at testing the candidate’s jobknowledge about duties, activities, methods of doing the job, critical/problematicareas, methods of handling those areas etc.Stress Interview: This Interview aims at testing the candidate’s job behaviourand level of withstanding during the period of stress and strain. The interviewertests the candidate by putting him under stress and strain by interrupting theapplicant from answering, criticising his opinions, asking questions pertaining tounrelated areas, keeping silent for unduly long periods after he has finishedspeaking etc. stress during the middle portion of the interview gives effectiveresults. Stress interview must be handled with utmost care and skill. This typeinterview is often invalid, as the interviewee’s need for a job and his previousexperience in such type of interviews may inhibit his actual behaviour under suchsituations.Group Discussion Interview: There are two methods of conducting groupdiscussion interviews, viz. group interview method and discussion interviewmethod. All the candidates are brought into one room, i.e., the interview roomand are interviewed one by one under group interview. This method helps a busyexecutive to save valuable time and gives a fair account of the objectivity of theinterview to the candidates. Under the discussion interview method, one topic isgiven for discussion to the candidates who assemble in one room and they areasked to discuss the topic in detail. This type of interview helps the interviewer inappraising certain skills of the candidates like initiative, interpersonal skills,dynamism, presentation, leading, comprehension, collaboration etc. Interviewersare at ease in this category of interview because of its informality and flexibility.But it may fail to cover some significant portions of the candidates’ backgroundand skills.Formal and Structured Interview: In this type of interview, all theformalities, procedures like fixing the value, time, panel of interviewers, openingand closing, intimating the candidates officially etc. are strictly followedarranging and conducting the interview. The course of the interview ispreplanned and structured, in advance, depending on job requirements, thequestions for discussion are structured and experts are allotted different areasand questions to be asked. There will be very little room for the interviewers todeviate from the questions prepared in advance in a sequence.Panel Interview: A panel of experts interviews each candidate, judges hisperformance individually and prepares consolidated judgment. This type of
  39. 39. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 39interview is known as panel interview. Interviews for middle level and seniorlevel managers are normally conducted by the panel of experts.Depth Interview: In this interview, the candidate would be examinedextensively in core areas of job skills and knowledge. Experts test the candidate’sknowledge in depth. Depth interviews are conducted for specialist jobs.Information technology brought significant developments in the selection processof employees. The vital development is on-line interview.Decision-Making Interview:After the candidates are examined by the experts including the line managers of theorganization in the core areas of the job, the head of the department/section concernedinterviews the candidates once again, mostly through informal discussion. Theinterviewer examines the interest of the candidate in the job, organization,reaction/adaptability to the working conditions, career planning, promotionalopportunities, work adjustment and allotment etc. the Personnel Manager alsointerviews the candidates with a view to find out his reaction/acceptance regardingsalary, allowances, benefits, promotions, opportunities etc.The head of the department and the personnel manager exchange the views and thenthey jointly inform their decision to the chairman of the interview board, who finallymakes the decision about the candidates’ performance and their ranks in the interview.Most of the organizations have realized recently that employees’ positive attitudematters much rather than employees’ skills and knowledge. Employees with positiveattitude contribute much to the organization. Hence the interviewers look for thecandidates with the right attitude while making final decision.Medical examination: – Applicants who have crossed the above stages are sent for aphysical examination either to the company’s physician or to a medical officer approvedfor the purpose.Reference checks: – The applicant is asked to mention in his application form thenames and addresses of two or three persons who know him well.Final approval: – The shortlisted candidates by the department are finally approvedby the executives of the concerned department. Employment is offered in the form ofappointment letter mentioning the post, the rank, the grade, the date by which thecandidate should join and other terms and conditions in brief.HR Interview
  40. 40. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 40The goal of an HR interview is to determine the potential job performance of anapplicant based on the answers that they give to questions. The HR interview isexcellent for jobs that will require applicants to have communication skills. It will alsoallow the company to obtain important information that is related to the client. Duringthe HR interview, the applicant will be able to demonstrate how much they know abouta particular task.The HR interview is designed to make sure the best candidates are selected. Theinterview will also allow the human resources department to determine if theapplicant can work well with the other employees. However, there are a numberof disadvantages to the HR interview process. The evaluations that are made bythe HR department will often be subjective. The decision on whether or not theywill hire the applicant is generally made during the first few minutes of theconversation. The rest of the interview is used by the HR department todetermine if the decision is valid.Ï There are a number of ways that can be used to make the HR interview moresuccessful. The use of stereotypes should be reduced as much as possible. Sex andrace should not play a role in the selection process of the company. Studies haveshown that interviewers who do not have an advanced knowledge of the job aremuch more likely to use stereotypes than those who do understand the jobrequirements.ÿ The questions that are asked during the interview should always be related to thejob. When applicants are asked questions which are not related to the job, thiscan damage the credibility of the company. To solve these problems, it isimportant for a company to make sure they train their employees, especiallythose who will be interviewing applicants. The interviewer must haveinterpersonal skills. They should not make quick decisions about those theyinterview, and they should never use stereotypes. The emphasis should never beplaced on any one characteristic, especially if the job requires the applicant to beskilled in multiple areas.¯ Reliability of the Interview: In the interview context, reliability is consensus,or agreement, between two interviewers on their assessment of the samecandidates. This is called Interrater Reliability. Research shows that it is ratherweak.¯ Similarity Error: Interviewers are positively predisposed to candidates whoare similar to them (in hobbies, interests, personal background). They arenegatively disposed to candidates who are unlike them.¯ Contrast Error: When several candidates are interviewed in succession, raterstend to compare each candidate with the preceding candidates instead of an
  41. 41. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 41absolute standard. Thus an average candidate can be rated as higher than averageif he or she comes after one or two poor candidates and lower than average if heor she follows an excellent candidate.¯ First Impression Error: Some interviewers tend to form a first impression ofcandidates rather quickly, based on a review of the application blank or on thefirst few moments of the interview. Thus, this impression is based on relativelylittle information about the candidate. Nevertheless the initial judgment isresistant t change as more information or contradictory information is acquired.In addition, the interviewer may choose subsequent questions based on the firstimpression, in an attempt to confirm the positive or negative impression.¯ Traits Rated and Halo Error: Halo error occurs when either the interviewer’soverall impression or strong impression of a single dimension spreads toinfluence his or her rating of other characteristics. For instance, if a candidateimpresses the interviewer as being very enthusiastic, the interviewer might tendto rate he candidate high on other characteristics, such as job knowledge, loyaltyand dependability.Placement: Placement refers to assigning rank and responsibility to an individual,identifying him with a particular job. If the person adjusts to the job and continues toperform per expectations, it means that the candidate is properly placed. However, if thecandidate is seen to have problems in adjusting himself to the job, the supervisor mustfind out whether the person is properly placed as per the latter’s aptitude and potential.Usually, placement problems arise out of wrong selection or improper placement orboth. Therefore, organizations need to constantly review cases of employeesexpectations / potential and employee related problems such as turnover, absenteeism,accidents etc., and assess how far they are related to inappropriate placement decisionsand remedy the situation without delay.Induction: Induction refers to the introduction of a person to the job and theorganization. The purpose is to make the employee feel at home and develop a sense ofpride in the organization and commitment to the job. The induction process is alsoenvisaged to indoctrinate, orient, acclimatize, and acculturate the person to the job andthe organization. The basic thrust of Induction training during the first one or few weeksafter a person joins service in the organization is to:þ introduce the person to the people with whom he worksþ make him aware of the general company policies that apply to him as also theþ specific work situation and requirements,þ answer any questions and clarify any doubts that the person may have about thejob and the organization ……andþ provide on-the-job instructions, check back periodically howthe person is doing and offer help, if required.
  42. 42. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 42III – UNITTRAINING & DEVELOPMENTAND PERFORMANCE APPRAISALIntroduction: Organization and individual should develop and progresssimultaneously for their survival and attainment of mutual goals. So, every modernmanagement has to develop the organization through human resources development.Employee training is the most important sub-system of human resources development.Training is a specialized function and is one of the fundamental operative functions forhuman resources management.Meaning: After an employee is selected, placed and introduced in an organizationhe/she must be provided with training facilities in order to adjust him to the job.Training is the act of increasing the knowledge and skill of an employee for doing aparticular job. Training is a short-term educational process and utilizing a systematicand organized procedure by which employees learn technical knowledge and skills for adefinite purpose. Dale S. Beach defines the training as”….. the organized procedure bywhich people learn knowledge and skill for a definite purpose”. In other words, trainingimproves changes and moulds the employee’s knowledge, skill, behavior and aptitudeand attitude towards the requirements of the job and the organization. Training refers tothe teaching and learning activities carried on for the primary purpose of helpingmembers of an organization to acquire and apply the knowledge, skills, abilities andattitudes needed by a particular job and organization.Thus, training bridges thedifferences between job requirements and employee’s present specifications.Training and Development: Employee training is distinct from managementdevelopment or executive development. While the former refers to training given toemployees in the areas of operations, technical and allied areas, the latter refers todeveloping an employee in the areas of principles and techniques of management,administration, organization and allied areas.Importance of Training and Development: Optimum Utilization of HumanResources – Training and Development helps in optimizing the utilization of humanresource that further helps the employee to achieve the organizational goals as well astheir individual goals.Development of Human Resources – Training and Development helps to providean opportunity and broad structure for the development of human resources’ technical
  43. 43. Human Resource Management – M.B.A. PRINCER a j a R a o P a g i d i p a l l i Page 43and behavioral skills in an organization. It also helps the employees in attainingpersonal growth.Development of skills of employees – Training and Development helps inincreasing the job knowledge and skills of employees at each level. It helps to expand thehorizons of human intellect and an overall personality of the employees.Productivity – Training and Development helps in increasing the productivity of theemployees that helps the organization further to achieve its long-term goal.Team spirit – Training and Development helps in inculcating the sense of team work,team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn withinthe employees.Organization Culture – Training and Development helps to develop and improve theorganizational health culture and effectiveness. It helps in creating the learning culturewithin the organization.Organization Climate – Training and Development helps building the positiveperception and feeling about the organization. The employees get these feelings fromleaders, subordinates, and peers.Quality – Training and Development helps in improving upon the quality of work andwork-life.Healthy work environment – Training and Development helps in creating thehealthy working environment. It helps to build good employee, relationship so thatindividual goals aligns with organizational goal.Health and Safety – Training and Development helps in improving the health andsafety of the organization thus preventing obsolescence.Morale – Training and Development helps in improving the morale of the work force.Image – Training and Development helps in creating a better corporate image.Profitability – Training and Development leads to improved profitability and morepositive attitudes towards profit orientation.þ Training and Development aids in organizational development i.e. Organizationgets more effective decision making and problem solving. It helps inunderstanding and carrying out organisational policies