Hrm unit i,ii&iii

compiled by VIVEK. MBA SITS 1
HUMAN RESOURCE MANAGEMENT
MEANING AND DEFINITION:
 It is a process of bringing organizations and people
together to achieve the goals of both.
 It is a part of management process which is concerned
with the management of human resources of an
organization
 it may be defined as the art of procuring, developing,
and maintaining competent workforce to achieve
the organizational goals effectively and efficiently.
“simply said HRM may be defined as the art of
procuring, developing, and maintaining competent
workforce to achieve organizational goals
efficiently”

 Acc to FLIPPO, HRM is the planning, organizing,
directing and, controlling of the procurement
,development, compensation integration
,maintenance and separation of human resources
to the end that individual, organizational and
social objectives are accomplished.
 we can say that it is concerned with people at
work and their relationships with each other , it
may be defined as a set of programs, functions
and activities designed to maximize both personal
and organizational goals.

OBJECTIVES OF HRM
To help the organization reach its goals.
To employ the skills and abilities of the workforce
efficiently.
To provide the organization with well-trained and
well-motivated employees.
To increase the employees job satisfaction and
self-actualization to maximum level.
To develop and maintain a quality of work life.
To communicate hr policies to all employees.
To be ethically and socially responsive to the
needs of the society.

Scope of HRM
Procurement
Training and development
Job analysis and job description
Remuneration
Personnel records
Welfare and industrial relations

HR ACTIVITIES
I. Determines the requirements of those
individuals who will work and hold the mission ,
vision and values of a company and also brings
such individuals to the areas where needed.
II. Creates and implements orientation program
that eases the adaptation of new employees to
their jobs and to the company.
III. Determines the requirement of training that
accelerates the worker’s technical and personal
development..
IV. Prepares procedures and forms related to
human resources to ensure that employees are
made aware of company practices and
processes.

V. Prepares job description for every task
included within the performance management
system (pms).
VI. Supports PMS implementation.
VII. Counsels company employees.
VIII. Conducts total personnel/employee procedures.
IX. Prepares payroll and manages insurance
procedures.
X. Prepares various statistical information reports
relating to employees.
XI. Organizes motivational activities and events.

Challenges to HRM
i. Globalization
ii. Technological changes
iii. Political and legal factors
iv. Social factors
v. Trends in the nature of work
vi. Work force diversity
a. Composition
b. Women at work
c. Changes in employee values
d. Level of education

vii. Changes in 21st century impacting HRM
a. Scope of promotions
b. More scope for talented employees
c. Lean and mean organizations
d. Employer-employee relations
e. Healthier work environment

JOB ANALYSIS
► Job analysis is a formal detailed examination of jobs.
► It is a process of gathering information about a job.
► It may be defined as the process of determining ,and
reporting relevant information relating to the nature
and of a specific job…….
► It is the determination of the tasks which comprise the
job and the skills, knowledge, abilities, and
responsibilities required by the worker for a successful
performance and which differentiate one job from all
others.

JOB TERMINOLOGY
► TASK: It is an action or related group of actions
designed to produce a definite outcome or result
► POSITION: A position is a group of similar tasks
and responsibilities assigned to one individual
► JOB: A group of related tasks/positions of the
same kind or level
 JOB DESCRIPTION: It is an organized, factual
statement of duties & responsibilities of a specific
job
 JOB SPECIFICATION: It is a statement of
minimum acceptable human qualities necessary to
perform a job

JOB ANALYSIS INFORMATION AND
FACTS
Job description
Contains information and facts about
 Job identification: job title,
location, code, short
name,department and unit.
 Job summary:jopb contents, its
authority, responsibility, hazards,
etc.
 Relation to other jobs (relation
with superiors & subordinates).
 Machine tools and equipment
used.
 Conditions, location of work,
working hours, posture-standing,
sitting, walking speed, accuracy,
health hazards, occupational
diseases, etc.
Job specification
Contains information and facts about
 Education
 Experience
 Training
 Initiative
 Physical effort
 Physical skills
 Responsibilities
 Communication skills
 Emotional characteristics
 Sensory demands like vision,
smell, hearing, etc

Methods of data collection
1. Interviews
2. Direct observations
3. Maintenance of long records
4. Questionnaires
5. Critical incident method

Functions of HRM
► The functions of HRM are divided in to two broadly
classified categories: Managerial Functions and
Operative Functions.
► Managerial functions:
 Planning
 Organising
 Directing
 Controlling

► Operative functions:
1. Employment
 Job analysis
 Human Recourse Planning
 Recruitment
 Selection
 Placement
 Induction and orientation
2. Human Resource Development
 Performance Appraisal
 Training
 Management development
 career Planning and Development
 Organization development

3. compensation
 Job Evaluation
 Wage and Salary Management
 Incentives
 Bonus
 Fringe Benefits
 Social Security Measurements
4. Human Relations
5. Effectiveness of Human Resource Management

JOB DESIGN
►Job design is defined as the process of
making a decision on
The content of a job in terms of duties and
responsibilities
The methods to be used in carrying out a job ,
in terms of techniques ,systems and procedures
The relations that should exist between the job
holder and his superiors, subordinates and
colleagues

Five core job characteristics are especially
important to job design:
► 1. Skills variety - the degree to which a job holder must
carry out a variety of different activities and use a number
of different personal skills in performing the job
► 2. Task identity - the degree to which performing a job
results in the completion of a whole and identifiable piece
of work and produces a visible outcome that can be
recognised as the result of personal performance.
► 3. Task significance - the degree to which a job has a
significant impact on the lives of other people, whether
those people are co-workers in the same organisation or
individuals outside the organisation.

► 4. Autonomy - the degree to which the job holder has the
freedom, independence and discretion necessary to
schedule work and to decide which procedures to use in
carrying it out.
► 5. Feedback - the degree to which performing the
activities required by the job provides the employee with
direct and clear information about the effectiveness of his
or her performance.

Methods of job design
► Job specialisation - involves using standardised
work procedures and having employees perform
repetitive, precisely defined and simplified tasks.
► Job enlargement - seeks to horizontally load a job
by adding to the variety of tasks to be performed.
► Job rotation - increases task variety by periodically
shifting employees between jobs involving different
tasks.
► Job enrichment - involves making basic changes in
job content and level of responsibility.

► Socio-technical enrichment - focuses on the
relationship between technology and groups of
workers. The aim is to integrate people with
technology.
► Autonomous work teams - represent job
enrichment at the group level. The employer sets up
self-managed work teams who are responsible for
accomplishing defined performance objectives.

Approaches to job design
►There are three important approaches to
job design
 Engineering approach
 Human approach
 The job characteristic approach

HUMAN RESOURCE PLANNING ( H R P )
► Definition 1: - Need, Availability, Supply=Demand
► “HRP includes estimation of how many qualified people are
necessary to carry out the assigned activities, how many people
will be available, and what, if anything, must be done to ensure
personnel supply equals personnel demand at the appropriate
point in the future.”
► Definition 2: - Right numbers, Capability, Organization
Objectives
► “HRP is a Process, by which an organization ensures that it has
the right number and kind of people at the right place, at the
right time, capable of effectively and efficiently completing those
tasks that will help the organization achieve its overall
objectives.”
► Definition 3: - Translation of objectives into HR numbers“HRP
is a process of translating organizational objectives and plans
into the number of workers needed to meet those objectives.”

MEANING / PURPOSE OF HRP
► In simple words HRP is understood as the process of
forecasting an organization’s future demand for and supply
of the right type of people in the right numbers.
► It is only after HRP is done, that the company can initiate
and plan the recruitment and selection process.
► HRP is a sub-system in the total organizational planning.
► HRP facilitates the realization of the company’s objectives
by providing right type and right number of personnel.
► HRP is important because without a clear-cut manpower
planning, estimation of a organization’s human resource
need is reduced to mere guesswork.

NEED & IMPORTANCE OF HRP
► Forecast future personnel needs: To avoid the situations of surplus
or deficiency of manpower in future, it is important to plan your
manpower in advance. For this purpose a proper forecasting of futures
business needs helps you to ascertain our future manpower needs.
From this angle, HRP plays an important role to predict the right size
of manpower in the organization.
► Cope with change: HRP enables an enterprise to cope with changes
in competitive forces, markets, technology, products and government
regulations. Such changes generate changes in job content, skills
demands and number of human resources required.
► Creating highly talented personnel: Since jobs are becoming
highly intellectual and incumbents getting vastly professionalized, HRP
helps prevent shortages of labor caused by attritions. Further
technology changes would further upgrade or degrade jobs and create
manpower shortages. In these situations only accurate human
resource planning can help to meet the resource requirements. Further
HRP is also an answer to the problems of succession planning.

► Resistance to change & move: The growing resistance
towards change and move, self evaluation, loyalty and
dedication making it more difficult to assume that
organization can move its employees everywhere. Here
HRP becomes very important and needs the resources to
be planned carefully.
► Other benefits: Following are the other benefits of HRP.
 Upper management has a better view of HR dimensions of
business
 Management can anticipate imbalances before they become
unmanageable and expensive.
 More time is provided to locate talent
 Better opportunities exists to include women and minorities
in future growth plans
 Better planning of assignments to develop managers
 Major and successful demands on local labor markets can be
made. compiled by VIVEK. MBA SITS 25

HUMAN RESOURCE INFORMATION SYSTEM
► A human resource information system (HRIS) is a
systematic procedure for collecting, storing ,maintaining
retrieving and validating data needed by an organization
about its human resources. The HRIS is usually a part of
the organisation’s larger management information system
(MI S).
► Though HRIS is not computerized but, it has its own
advantages of computerizing by providing more accurate
and timely data for decision making.
► Human Resource Information System is an organized
method of providing information about human resources,
their functioning, external factors relevant to managing
human resources.

► OBJECTIVES
► To provide accurate information about human
resource and their functioning and relevant
environmental factors.
► To provide relevant information
► To provide information on timely basis
► EXTERNAL INFORMATION
► Nature of competition for HR of different types
► Nature of availability of HR from different sources
► Nature of training & development facilities available
outside the organization.
► Nature of expectation of HR from the organization
► Socio-cultural & other back ground of HR.

► Various government policies affecting the employment
conditions of people.
► Various labour laws which are relevant for managing
HR in the organization.
► Status of trade union movement and its attitudes
towards employer- organization.
► Various HRM practices adopted by different
organization nationally & internationally.
► HR department of an organization is required to collect
information about these factors from different sources
and to make it a part of its H.R. information system.

► INTERNAL INFORMATION.
 particulars of each employees
 types of employees recruited during the year
 training and development offered
 results of performance appraisal
 promotion, demotion, transfer, separation of employees
 compensation, packages, both financial and non-
financial offered
 employee absenteeism
 employee turnover
 maintenance, safety and health services
 number and nature of disputes between labour and
management and their outcomes.

► Area of HRIS application:
 Training management,
 Risk management,
 turnover analysis,
 succession planning,
 flexible-benefits administration,
 compliance with government and legal requirement,
 attendance reporting and analysis,
 HRP,
 accident reporting and prevention,
 strategy planning,
 financial planning and other related areas.

UNIT-II
RECRUITMENT
AND SELECTION

INTRODUCTION
► Recruitment and selection are two of the most important
functions of personnel management. Recruitment precedes
selection and helps in selecting a right candidate.
► Recruitment is a process to discover the sources of
manpower to meet the requirement of the staffing
schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective
selection of efficient personnel.
► Staffing is one basic function of management. All
managers have responsibility of staffing function by
selecting the chief executive and even the foremen and
supervisors have a staffing responsibility when they select
the rank and file workers. However, the personnel
manager and his personnel department is mainly
concerned with the staffing function.

► Every organisation needs to look after recruitment and
selection in the initial period and thereafter as and when
additional manpower is required due to expansion and
development of business activities.
‘Right person for the right job’ is the basic principle in
recruitment and selection. Ever organisation should give
attention to the selection of its manpower, especially its
managers. The operative manpower is equally important and
essential for the proper working of an enterprise. Every
business organisation/unit needs manpower for carrying
different business activities smoothly and efficiently and for this
recruitment and selection of suitable candidates are essential.
Human resource management in an organisation will not be
possible if unsuitable persons are selected and employed in a
business unit.

RECRUITMENT
► Recruitment means to estimate the available vacancies
and to make suitable arrangements for their selection and
appointment. Recruitment is understood as the process of
searching for and obtaining applicants for the jobs, from
among whom the right people can be selected.
► A formal definition states, “It is the process of finding and
attracting capable applicants for the employment. The
process begins when new recruits are sought and ends
when their applicants are submitted. The result is a pool of
applicants from which new employees are selected”. In
this, the available vacancies are given wide publicity and
suitable candidates are encouraged to submit applications
so as to have a pool of eligible candidates for scientific
selection.

► In recruitment, information is collected from interested
candidates. For the different source such as newspaper
advertisement, employment exchanges, internal
promotion, etc.
► In recruitment, a pool of eligible and interested candidates
is created for selection of most suitable candidates.
Recruitment represents the first contact that a company
makes with potential employees.
Definition:
► According to EDWIN FLIPPO, “Recruitment is the
process of searching for prospective employees and
stimulating them to apply for jobs in the
organization.”

Need for recruitment
► The need for recruitment may be due to the following
reasons / situation:
 Vacancies due to promotions, transfer, retirement,
termination, permanent disability, death and labour
turnover.
 Creation of new vacancies due to the growth, expansion
and diversification of business activities of an enterprise.
In addition, new vacancies are possible due to changes
in job specification.

Purpose and importance of Recruitment
► Determine the present and future requirements of the
organization on conjunction with its personnel-planning
and job analysis activities.
► Increase the pool of job candidates at minimum cost.
► Helps increase the success rate of the selection process by
reducing the number of visibly under qualified or
overqualified job applicants.
► Helps to reduce the probability that job applicants, once
recruited and selected, will leave the organization only
after a short period of time.

► Meet the organization’s legal and social obligations
regarding the composition of its work force.
► Begin identifying and preparing potential job applicants
who will be appropriate candidates.
► Increase organizational and individual effectiveness in the
short term and long term.
► Evaluate the effectiveness of various recruiting techniques
and sources for all types of job applicants.
Recruitment is a positive function in which publicity is
given to the jobs available in the organization and
interested candidates are encouraged to submit
applications for the purpose of selection.

RECRUITMENT PROCESS
► Recruitment refers to the process of identifying and
attracting job seekers so as to build a pool of qualified job
applicants. The process comprises five interrelated stages,
viz,
1. Planning.
2. Strategy development.
3. Searching.
4. Screening.
5. Evaluation and control.
► The ideal recruitment programme is the one that attracts a
relatively larger number of qualified applicants who will
survive the screening process and accept positions with the
organisation, when offered.

STAGE 1:
► RECRUITMENT PLANNING:
The first stage in the recruitment process is planning.
Planning involves the translation of likely job vacancies and
information about the nature of these jobs into set of
objectives or targets that specify the (1) Numbers and (2)
Types of applicants to be contacted.

► Numbers of contact:
 Organization, nearly always, plan to attract more
applicants than they will hire. Some of those contacted
will be uninterested, unqualified or both. Each time a
recruitment Programme is contemplated, one task is to
estimate the number of applicants necessary to fill all
vacancies with the qualified people.
► Types of contacts:
 It is basically concerned with the types of people to be
informed about job openings. The type of people
depends on the tasks and responsibilities involved and
the qualifications and experience expected. These
details are available through job description and job
specification.

STAGE 2:
► STRATEGY DEVELOPMENT:
 When it is estimated that what types of recruitment and
how many are required then one has concentrate in (1).
Make or Buy employees. (2). Technological
sophistication of recruitment and selection devices. (3).
Geographical distribution of labour markets comprising
job seekers. (4). Sources of recruitment. (5).
Sequencing the activities in the recruitment process.

► ‘Make’ or ‘Buy’:
 Organisation must decide whether to hire le skilled
employees and invest on training and education
programmes, or they can hire skilled labour and professional.
Essentially, this is the ‘make’ or ‘buy’ decision. Organizations,
which hire skilled and professionals shall have to pay more
for these employees.
► Technological Sophistication:
 The second decision in strategy development relates to the
methods used in recruitment and selection. This decision is
mainly influenced by the available technology. The advent of
computers has made it possible for employers to scan
national and international applicant qualification. Although
impersonal, computers have given employers and ob seekers
a wider scope of options in the initial screening stage.

► Where to look:
 In order to reduce the costs, organisations look in to
labour markets most likely to offer the required job
seekers. Generally, companies look in to the national
market for managerial and professional employees,
regional or local markets for technical employees and
local markets for the clerical and blue-collar employees.
► When to look:
 An effective recruiting strategy must determine when to
look-decide on the timings of events besides knowing
where and how to look for job applicants.

STAGE 3: SEARCHNG:
► Once a recruitment plan and strategy are worked out, the
search process can begin. Search involves two steps
► A). SOURCE ACTIVATION:
 Typically, sources and search methods are
activated by the issuance of an employee requisition. This
means that no actual recruiting takes place until lone
managers have verified that vacancy does exist or will
exist.
 If the organisation has planned well and done a
good job of developing its sources and search methods,
activation soon results in a flood of applications and/or
resumes.
 The application received must be screened. Those
who pass have to be contacted and invited for interview.
Unsuccessful applicants must be sent letter of regret.compiled by VIVEK. MBA SITS 45

► B). SELLING:
► A second issue to be addressed in the searching
process concerns communications. Here, organisation
walks tightrope. On one hand, they want to do whatever
they can to attract desirable applicants. On the other hand,
they must resist the temptation of overselling their virtues.
► In selling the organisation, both the message and the
media deserve attention. Message refers to the
employment advertisement. With regards to media, it may
be stated that effectiveness of any recruiting message
depends on the media. Media are several-some have low
credibility, while others enjoy high credibility. Selection of
medium or media needs to be done with a lot of care.

STAGE 4:
 SCREENING:
►Screening of applicants can be regarded as an integral
part of the recruiting process, though many view it as
the first step in the selection process. Even the
definition on recruitment, we quoted in the beginning
of this chapter, excludes screening from its scope.
However, we have included screening in recruitment
for valid reasons. The selection process will begin after
the applications have been scrutinized and short-listed.
►Hiring of professors in an university is a typical
situation. Application received in response to
advertisements is screened and only eligible applicants
are called for an interview. A selection committee
comprising the Vice-chancellor, Registrar and subject
experts conducts interview. Here, the recruitment
process extends up to screening the applications. The
selection process commences only later.

► Purpose of screening
► The purpose of screening is to remove from the recruitment
process, at an early stage, those applicants who are visibly
unqualified for the job. Effective screening can save a great deal
of time and money. Care must be exercised, however, to assure
that potentially good employees are not rejected without
justification.
► In screening, clear job specifications are invaluable. It is both
good practice and a legal necessity that applicant’s qualification
is judged on the basis of their knowledge, skills, abilities and
interest required to do the job.
► The techniques used to screen applicants vary depending on the
candidate sources and recruiting methods used. Interview and
application blanks may be used to screen walk-ins. Campus
recruiters and agency representatives use interviews and
resumes. Reference checks are also useful in screening.

STAGE 5:
► EVALUATION AND CONTROL:
 Evaluation and control is necessary as considerable
costs are incurred in the recruitment process. The costs
generally incurred are: -
 Salaries for recruiters.
 Management and professional time spent on preparing
job description, job specifications, advertisements,
agency contacts and so on.
 The cost of advertisements or other recruitment
methods, that is, agency fees.
 Recruitment overheads and administrative expenses.
 Costs of overtime and outsourcing while the vacancies
remain unfilled.
 Cost of recruiting unsuitable candidates for the selection
process. compiled by VIVEK. MBA SITS 49

► EVALUATION OF RECRUITMENT PROCESS
 The recruitment has the objective of searching for and
obtaining applications for job seekers in sufficient
number and quality. Keeping this objective in the mind,
the evaluation might include:
 Return rate of applications sent out.
 Number of suitable candidates for selection.
 Retention and performance of the candidates selected.
 Cost of the recruitment process.
 Time lapsed data.
 Comments on image projected.

SOURCES OF RECRUITMENT
INTERNAL SOURCES EXTERNAL SOURCES
1) Promotion 1) Campus recruitment
2) Transfers 2) Press advertisement
3) Internal notification 3) Management consultancy service
(Advertisement) & employment exchanges
4) Retirement 4) Deputation of personnel or transfer
from one enterprise to another
5) Recall 5) Management training schemes
6) Former employees 6) Walk-ins, write-ins, talk-ins

The sources of recruitment can be broadly
categorized into internal and external
sources
► Internal Recruitment – Internal recruitment
seeks applicants for positions from within the
company. The various internal sources include
 Promotions and Transfers
 Employee referrals
 Former Employees
 Dependents of deceased employees
 Recalls
 Retirements
 Internal notification (advertisement)

► External Recruitment – External recruitment seeks
applicants for positions from sources outside the
company. They have outnumbered the internal
methods. The various external sources include
 Professional or Trade Associations
 Advertisements
 Employment Exchanges
 Campus Recruitments
 Walk-ins, Write-ins and Talk-ins
 Contractors
 Consultants
 Head Hunters
 Radio, Television and Internet
 Competitors
 Mergers and Acquisitions
compiled by VIVEK. MBA SITS
53

External sources of recruitment have both merits and demerits.
► The merits are-
 The organization will have the benefit of new skills, new talents
and new experiences, if people are hired from external sources.
 The management will be able to fulfill reservation requirements
in favor of the disadvantaged sections of the society.
 Scope for resentment, heartburn and jealousy can be avoided
by recruiting from outside.
► The demerits are-
 Better motivation and increased morale associated with
promoting own employees re lost to the organization.
 External recruitment is costly.
 If recruitment and selection processes are not properly carried
out, chances of right candidates being rejected and wrong
applicants being selected occur.
 High training time is associated with external recruitment.

STEP 1: -
PRELIMINARY INTERVIEW
► The applicants received from job seekers would be
subject to scrutiny so as to eliminate unqualified
applicants.
► This is usually followed by a preliminary interview the
purpose of which is more or less the same as scrutiny
of application, that is, eliminate of unqualified
applicants. Scrutiny enables the HR specialists to
eliminate unqualified jobseekers based on the
information supplied in their application forms.
► Preliminary interview, on the other hand, helps reject
misfits for reason, which did not appear in the
application forms. Besides, preliminary interview, often
called ‘courtesy interview’, is a good public relation
exercise. compiled by VIVEK. MBA SITS 55

STEP 1: - SELECTION TEST:
► Job seekers who pass the screening and the preliminary
interview are called for tests. Different types of tests may be
administered, depending on the job and the company.
Generally, tests are used to determine the applicant’s ability,
aptitude and personality.
► The following are the type of tests taken:
 1). Ability tests:
 2). Aptitude test:
 3). Intelligence test:
 4). Interest Test:
 5). Personality Test:
 6). Projective Test:
 7). General knowledge Test:
 8). Perception Test:
 9). Graphology Test:
 10). Polygraph Test:
 11). Medical Test: compiled by VIVEK. MBA SITS 56

► 1). Ability tests: -
Assist in determining how well an individual can perform
tasks related to the job. An excellent illustration of this is
the typing tests given to a prospective employer for
secretarial job. Also called as ‘ACHEIVEMENT TESTS’. It is
concerned with what one has accomplished. When
applicant claims to know something, an achievement test is
taken to measure how well they know it. Trade tests are
the most common type of achievement test given.
Questions have been prepared and tested for such trades
as asbestos worker, punch-press operators, electricians
and machinists. There are, of course, many unstandardised
achievement tests given in industries, such as typing or
dictation tests for an applicant for a stenographic position.

► 2). Aptitude test: -
► Aptitude tests measure whether an individuals has the
capacity or latent ability to learn a given job if given adequate
training. The use of aptitude test is advisable when an applicant
has had little or no experience along the line of the job opening.
Aptitudes tests help determine a person’s potential to learn in a
given area. An example of such test is the general management
aptitude tests (GMAT), which many business students take prior
to gaining admission to a graduate business school programme.
► Aptitude test indicates the ability or fitness of an individual to
engage successfully in any number of specialized activities. They
cover such areas clerical aptitude, numerical aptitude,
mechanical aptitude, motor co-ordination, finger dexterity and
manual dexterity. These tests help to detect positive negative
points in a person’s sensory or intellectual ability. They focus
attention on a particular type of talent such as learning or
reasoning in respect of a particular field of work.

Forms of aptitude test:
► Mental or intelligence tests:
They measure the overall intellectual ability of a
person and enable to know whether the person has the
mental ability to deal with certain problems.
► Mechanical aptitude tests:
They measure the ability of a person to learn a
particular type of mechanical work. These tests helps to
measure specialized technical knowledge and problem
solving abilities if the candidate. They are useful in
selection of mechanics, maintenance workers, etc.
► Psychomotor or skills tests:
They are those, which measure a person’s ability to do
a specific job. Such tests are conducted in respect of semi-
skilled and repetitive jobs such as packing, testing and
inspection, etc. compiled by VIVEK. MBA SITS 59

► 3). Intelligence test:
 This test helps to evaluate traits of intelligence. Mental
ability, presence of mind (alertness), numerical ability,
memory and such other aspects can be measured.
 The intelligence is probably the most widely administered
standardized test in industry. It is taken to judge numerical,
skills, reasoning, memory and such other abilities.
► 4). Interest Test:
 This is conducted to find out likes and dislikes of candidates
towards occupations, hobbies, etc. such tests indicate which
occupations are more in line with a person’s interest. Such
tests also enable the company to provide vocational guidance
to the selected candidates and even to the existing
employees.
 These tests are used to measure an individual’s activity
preferences. These tests are particularly useful for students
considering many careers or employees deciding upon career
changes. compiled by VIVEK. MBA SITS 60

5). Personality Test:
 The importance of personality to job success is undeniable.
Often an individual who possesses the intelligence, aptitude
and experience for certain has failed because of inability to
get along with and motivate other people.
 It is conducted to judge maturity, social or interpersonal
skills, behavior under stress and strain, etc. this test is very
much essential on case of selection of sales force, public
relation staff, etc. where personality plays an important role.
 Personality tests are similar to interest tests in that they,
also, involve a serious problem of obtaining an honest
answer.
6). Projective Test:
 This test requires interpretation of problems or situations. For
example, a photograph or a picture can be shown to the
candidates and they are asked to give their views, and
opinions about the picture.

7). General knowledge Test:
 Now days G.K. Tests are very common to find general
awareness of the candidates in the field of sports, politics,
world affairs, current affairs.
8). Perception Test:
 At times perception tests can be conducted to find out
beliefs, attitudes, and mental sharpness.etc.
9). Graphology Test:
 It is designed to analyze the handwriting of individual. It has
been said that an individual’s handwriting can suggest the
degree of energy, inhibition and spontaneity, as well as
disclose the idiosyncrasies and elements of balance and
control. For example, big letters and emphasis on capital
letters indicate a tendency towards domination and
competitiveness. A slant to the right, moderate pressure and
good legibility show leadership potential.

10). Polygraph Test:
► Polygraph is a lie detector, which is designed to ensure
accuracy of the information given in the applications.
Department store, banks, treasury offices and jewellery
shops, that is, those highly vulnerable to theft or swindling
may find polygraph tests useful.
11). Medical Test:
► It reveals physical fitness of a candidate. With the
development of technology, medical tests have become
diversified. Medical servicing helps measure and monitor a
candidate’s physical resilience upon exposure to hazardous
chemicals.
►

CHOOSING TESTS:
► The test must be chosen in the criteria of reliability, validity, objectivity
and standardization. They are: -
1. RELIABILITY: -
It refers to standardization of the procedure of administering and
scoring the test results. A person who takes tests one day and makes a
certain score should be able to take the same test the next day or the
next week and make more or less the same score. An individual’s
intelligence, for example, is generally a stable characteristic. So if we
administer an intelligence test, a person who scores 110 in March
would score close to 110 if tested in July. Tests, which produce wide
variations in results, serve little purpose in selection.
2. VALIDITY: -
It is a test, which helps predict whether a person will be successful
in a given job. A test that has been validated can be helpful in
differentiating between prospective employees who will be able to
perform the job well and those who will not. Naturally, no test will be
100% accurate in predicting job success. A validated test increases
possibility of success.

3. OBJECTIVITY: -
► When two or more people can interpret the result of the
same test and derive the same conclusion(s), the test is
said to be objective. Otherwise, the test evaluators’
subjective opinions may render the test useless.
4. STANDARDRIZATION: -
► A test that is standardized is administered under
standard condition to a large group of person who are
representatives of the individuals for whom it is intended.
The purpose of standardization is to obtain norms or
standard, so that a specific test score can be meaningful
when compared to other score in the group

STEP 3: - INTERVIEW:
► The next step in the selection process is an interview.
Interview is formal, in-depth conversation conducted to
evaluate the applicant’s acceptability. It is considered to be
excellent selection device. It is face-to-face exchange of
view, ideas and opinion between the candidates and
interviewers. Basically, interview is nothing but an oral
examination of candidates. Interview can be adapted to
unskilled, skilled, managerial and profession employees.
► Objectives of interview: -
 Interview has at least three objectives and they are a follows: -
 Helps obtain additional information from the applicants
 Facilitates giving general information to the applicants such as
company policies, job, products manufactured and the like
 Helps build the company’s image among the applicants

Types of interview:
1. Informal Interview
2. Formal Interview
3. Non-directive Interview
4. Depth Interview
5. Stress Interview
6. Group Interview
7. Panel Interview
8. Sequential Interview
9. Structures Interview
10. Unstructured Interview
11. Mixed Interview
12. Impromptu Interviews
13. Dinner Interviews
14. Telephone Interviews
15. Second Interviews compiled by VIVEK. MBA SITS 67

Types of interview: -
1.Informal Interview:
 An informal interview is an oral interview and may take
place anywhere. The employee or the manager or the
personnel manager may ask a few almost inconsequential
questions like name, place of birth, names of relatives etc.
either in their respective offices or anywhere outside the
plant of company. It is not planned and nobody prepares for
it. This is used widely when the labour market is tight and
when you need workers badly.
2.Formal Interview:
 Formal interviews may be held in the employment office by
the employment office in a more formal atmosphere, with
the help of well structured questions, the time and place of
the interview will be stipulated by the employment office.

3.Non-directive Interview:
 Non-directive interview or unstructured interview is designed to let the
interviewee speak his mind freely. The interviewer has no formal or
directive questions, but his all attention is to the candidate. He
encourages the candidate to talk by a little pushing whenever he is
silent e.g. “Mr. madhu, please tell us about yourself after your
graduated from high school”.
 The idea is to give the candidate complete freedom to “sell” himself,
without the obstructions of the interviewer’s question. But the
interviewer must be of higher caliber and must guide and relate the
information given by the applicant to the objective of the interview.
4.Depth Interview:
 It is designed to intensely examine the candidate’s background and
thinking and to go into considerable detail on particular subjects of an
important nature and of special interest to the candidates. For
example, if the candidate says that he is interested in tennis, a series
of questions may be asked to test the depth of understanding and
interest of the candidate. These probing questions must be asked with
tact and through exhaustive analysis; it is possible to get a good
picture of the candidate.

5.Stress Interview:
 It is designed to test the candidate and his conduct and
behavior by him under conditions of stress and strain. The
interviewer may start with “Mr. Ashok, we do not think your
qualifications and experience are adequate for this position,’
and watch the reaction of the candidates. A good candidates
will not give up, on the contrary he may substantiate why he
is qualified to handle the job.
 This type of interview is borrowed from the Military
organisation and this is very useful to test behavior of
individuals when they are faced with unpleasant and difficult
situations.
6.Group Interview:
 It is designed to save busy executive’s time and to see how
the candidates may be brought together in the employment
office and they may be interviewed.

7.Panel Interview:
 A panel or interviewing board or selection committee may
interview the candidate, usually in the case of supervisory
and managerial positions. This type of interview pools the
collective judgment and wisdom of the panel in the
assessment of the candidate and also in questioning the
talent of the candidate.
8.Sequential Interview:
 The sequential interview takes the one-to-one a step further
and involves a series of interview, usually utilizing the
strength and knowledge base of each interviewer, so that
each interviewer can ask questions in relation to his or her
subject area of each candidate, as the candidate moves from
room to room.

9.Structures Interview:
 In a structured interview, the interviewer uses preset
standardized questions, which are put to all the interviewees.
This interview is also called as ‘Guided’ or ‘Patterned’
interview. It is useful for valid results, especially when
dealing with the large number of applicants.
10. Unstructured Interview:
 It is also known as ‘Unpatented’ interview, the interview is
largely unplanned and the interviewee does most of the
talking. Unguided interview is advantageous in as much as it
leads to a friendly conversation between the interviewer and
the interviewee and in the process, the later reveals more of
his or her desire and problems. But the Unpatented interview
lacks uniformity and worse, this approach may overlook key
areas of the applicant’s skills or background. It is useful when
the interviewer tries to probe personal details of the
candidate it analyse why they are not right for the job.compiled by VIVEK. MBA SITS 72

11. Mixed Interview:
 In practice, the interviewer while interviewing the job
seekers uses a blend of structured and unstructured
questions. This approach is called the Mixed Interview. The
structured questions provide a base of interview more
conventional and permit greater insights into the unique
differences between applicants.
12. Impromptu or unprepared Interviews:
 This interview commonly occurs when employers are
approached directly and tends to be very informal and
unstructured. Applicants should be prepared at all times for
on-the-spot interviews, especially in situations such as a job
fair. It is an ideal time for employers to ask the candidate
some basic questions to determine whether he/she may be
interested in formally interviewing the candidate

13.Dinner Interviews:
 These interviews may be structured, informal, or socially situated,
such as in a restaurant. Decide what to eat quickly, some
interviewers will ask you to order first (do not appear hesitant).
Avoid potentially messy foods. Be prepared for the conversation to
suddenly change from friendly chat to direct interview questions,
however, do not underestimate the value of casual discussion,
some employers place a great value on it. Be prepared to switch
gears rapidly, from fun talk to business talk.
14. Telephone Interviews:
 Have a copy of your resume and any points you want to remember
to say nearby. If you are on your home telephone, make sure that
all roommates or family members are aware of the interview (no
loud stereos, barking dogs etc.). Speak a bit slower than usual. It is
crucial that you convey your enthusiasm verbally, since the
interviewer cannot see your face. If there are pauses, do not
worry; the interviewer is likely just taking some notes.

15) Second Interviews:
 Job seekers are invited back after they have passed the
first initial interview. Middle or senior management
generally conducts the second interview, together or
separately. Applicants can expect more in-depth
questions, and the employer will be expecting a greater
level of preparation on the part of the candidates.
 Applicants should continue to research the employer
following the first interview, and be prepared to use any
information gained through the previous interview to
their advantage.

STEP 4:REFERENCE CHECK:
► Many employers request names, addresses, and telephone
numbers of references for the purpose of verifying information
and perhaps, gaining additional background information on an
applicant. Although listed on the application form, references are
not usually checked until an applicant has successfully reached
the fourth stage of a sequential selection process. When the
labour market is very tight, organisations sometimes hire
applicants before checking references.
► Previous employers, known as public figures, university
professors, neighbours or friends can act as references. Previous
employers are preferable because they are already aware of the
applicant’s performance. But, the problem with this reference is
the tendency on the part of the previous employers to over-rate
the applicant’s performance just to get rid of the person.
►

► Organisations normally seek letters of reference or
telephone references. The latter is advantageous because
of its accuracy and low cost. The telephone reference also
has the advantage of soliciting immediate, relatively candid
comments and attitude can sometimes be inferred from
hesitations and inflections in speech.
► It may be stated that the information gathered through
references hardly influence selection decisions. The
reasons are obvious:
 The candidate approaches only those persons who would speak
well about him or her.
 People may write favorably about the candidate in order to get rid
of him or her.
 People may not like to divulge the truth about a candidate, lest it
might damage or ruin his/her career.

STEP 5: -SELECTION DECISION:-
► After obtaining information through the preceding
steps, selection decision- the most critical of all the
steps- must be made. The other stages in the
selection process have been used to narrow the
number of the candidates. The final decision has to be
made the pool of individuals who pas the tests,
interviews and reference checks.
► The view of the line manager will be generally
considered in the final selection because it is he/she
who is responsible for the performance of the new
employee. The HR manager plays a crucial role in the
final selection.

STEP 6: -PHYSICAL EXAMINATION
► After the selection decision and before the job offer is made, the
candidate is required to undergo a physical fitness test. A job
offer is, often, contingent upon the candidate being declared fit
after the physical examination. The results of the medical fitness
test are recorded in a statement and are preserved in the
personnel records.
► There are several objectives behind a physical test. Obviously,
one reason for a physical test is to detect if the individual carries
any infectious disease.
► Secondly, the test assists in determining whether an applicant is
physically fit to perform the work.
c
ompiled by VIVEK. MBA SITS
79

► Thirdly, the physical examination information can be used
to determine if there are certain physical capabilities, which
differentiate successful and less successful employees.
► Fourth, medical check-up protects applicants with health
defects from undertaking work that could be detrimental to
them or might otherwise endanger the employer’s
property.
► Finally, such an examination will protect the employer
from workers compensation claims that are not valid
because the injuries or illness were present when the
employee was hired.
►

STEP 7:JOB OFFER:
► The next step in the selection process is job offer to those
applicants who have crossed all the previous hurdles. Job
offer is made through a letter of appointed. Such a letter
generally contains a date by which the appointee must
report on duty.
► The appointee must be given reasonable time for
reporting. Thos is particularly necessary when he or she is
already in employment, in which case the appointee is
required to obtain a relieving certificate from the previous
employer.
► Again, a new job may require movement to another city,
which means considerable preparation, and movement of
property.

► The company may also want the individual to delay the
date of reporting on duty. If the new employee’s first job
upon joining the company is to go on company until
perhaps a week before such training begins. Naturally, this
practice cannot be abused, especially if the individual is
unemployed and does not have sufficient finances.
► Decency demands that the rejected applicants be informed
about their non-selection. Their applicants may be
preserved for future use, if any. It needs no emphasis that
the applications of selected candidates must also be
preserved for the future references.

DESIGNING AND CONDUCTING
EFFECTIVE INTERVIEW
EVAL
UATION
TERMINATION
INFORMATION
EXCHANGE
RECEPTION
PREPARATION

Preparation
► Effective interviews do not just happen. they are
planned this involves:
1. Establishing the objectives of the interview and
determining the areas and specific areas to be
covered
2. Review the candidates application and resume , note
the strong and weak areas and questions to be asked
3. Selecting the interview method to be followed
4. Choosing the panel of experts who would interview
the candidates
5. Identifying a comfortable room where the interview
could be held

Reception
1. The candidate should be properly received
and led in to the room
2. Greet him with a warm, friendly ,greeting
smile
3. Tell briefly about yourself and put the
applicant at ease so that he may
reciprocate with personal information
4. Start the interview on time

Information exchange
► To gain the confidence of the candidate ,start the
interview with a cheerful conversation .the information
exchange may proceed thus:
1. State the purpose of the interview, give information about the
job for which he had applied
2. Begin with open ended questions where the candidate gets
enough freedom to express himself freely instead of ‘yes’ or ‘no’
type of responses
3. Do not telegraph the desired answer by nodding or smiling when
the right answer is given
4. Do not interrogate the applicant as if the person is a prisoner and
do not be demeaning or ultra-critical
5. Do not let the applicant dominate the interview by rambling from
point to point so you cannot ask all your questions.
6. Do not use difficult words to confuse the applicant

7. Focus on the applicants education, training
,work experience etc. find the gaps in his past
record and elicit facts not mentioned in the
application
8. Listen to the applicants answers attentively
and patiently
9. Pay attention to the verbal signs as body
language ,facial expressions ,gestures ,body
language etc
10.Ask the same questions to all the applicants to
avoid discrimination

Termination
►End the interview as happily as it began
without creating any awkward situation for
the interviewee.
►Avoid communicating through unpleasant
gestures such as sitting stiff , turning
towards the door ,glancing at watch, etc
►Inform him about the next step in the
interview process i.e. to wait for a call or a
letter

Evaluation
►After the interview is over , summarize and
record your observations carefully
►Constructing the report based on responses
given by applicant ,his behavior , your own
observations and the opinions of other
experts present during the interview
►It would be better to use a standardized
evaluation form for this purpose

Some common interview questions
► Openers
1. May I see your resume ?
2. Why are you interested in joining our
company?
3. Why do you feel you are qualified for this job ?
► Regarding motivation &interests
1. Is your present employer aware of your
interest in a job change ?
2. What caused you to enter your job field ?
3. What is the ideal job for you ?

► Regarding education and intellectual capacity
1. Why did you pick your major (area of specialization) ?
2. What was your class standing ?
3. What awards/honors did you earn?
► Regarding pay
1. What is the minimum pay you will accept ?
2. What is your pay record for the last five years?
3. Why do you believe you are qualified for so much
more?
► Regarding experience
1. Why should I hire you ?
2. Who influenced you a lot? How?
3. What equipment can you work with?

INTERVIEW ERRORS & BIAS
► The interview is a good selection tool in the hands of the
person who knows how to use it. if it is not used properly
or the interviewer himself is not in a positive frame of
mind mistakes may occur. the interviewer may
sometimes mat commit mistakes like :
1. Favor applicant who share his own attitude
2. Improper rapport with interviewee if the interviewer does not
possess good interpersonal skills
3. No right question and no right response from the candidate
4. May have awarded high score by showing leniency
5. May have been influenced by cultural noise
6. May have allowed himself to be unduly influenced by a particular
personality trait with a person’s cultural background
7. Make conclusions basing ‘halo effect’ (dressing, gender etc)
8. Have been under pressure
9. Have been influenced by the behavior of the candidate (how he
answered ,his body language etc), his or her dress and other
physical factors that are not job related

MEDICAL EVALUATION
► Certain jobs require physical qualities like clear vision,
acute hearing, unusually high stamina, tolerance of
tough working conditions ,clear tone of voice etc.
► Medical exam reveals whether a candidate possesses
these qualities or not. Medical exam can give following
information:
1. Whether the applicant is medically suitable for this job or not
2. Whether the candidate suffers from bad health which should be
corrected before he goes to work
3. Whether the applicants physical measurements are in accordance
with the job requirements
4. Does he have any health problems or psychological attitudes
likely to disturb his future attendance or work efficiency

REFERENCE AND BACKGROUND
VERIFICATION
► once the interview and medical test of the
candidate is over, the personnel department will
start checking references.
► These references may be from individuals who are
familiar with the candidate’s academic
achievements or from his previous employer
► This process provides information about the
candidates performance, character, and behavior

JOB OFFER
► The line manager has to make decision on
whether to select or reject the candidate after
observing the required information obtained
through different techniques discussed earlier
► A true understanding between line manager and
HR manager should be established so as to
facilitate good selection decisions
► After taking the final decision the organization has
to intimate the decisions to the candidates
► The organization sends the appointment order to
the successful candidates either immediately or
after sometime, depending upon its time schedule

PLACEMENT
► After a candidate has been selected, he should be
placed on a suitable job.
► Placement is the actual posting of an employee to
a specific rank and responsibility to an employee
► The placement decisions are taken by the line
manager after matching the requirements of a job
with the qualifications of the candidate
► After all formalities , the candidate is placed
initially on test, trial or probationary basis
► The probationary period may range from 3 months
to 2 years, they are observed keenly during this
period .when the candidate completes this period
successfully he may be appointed permanently

INDUCTION/ORIENTATION
► Orientation is the process of introducing the new
employee to the organization and its policies,
procedures and rules.
► Lectures, handbooks, films, groups etc are
provided to new employees so that they can
settle down quickly and resume the work
► OBJECTIVES
1. Removes fear
2. Creates a good impression
3. Acts as a valuable source of information

UNIT-III
TRAININGAND DEVELOPENT&
PERFORMANCE APPRAISAL

Meaning & definition of Training
►Training is a short term process utilizing a
systematic and organized procedure by
which employees acquire knowledge and
skills for a definite purpose.

Need for training
►To match the employee specifications with
the ob requirements and organizational
needs
►Organization feasibility and the
transformation process
►Technological advances
►Change in the job assignment

Importance of employee training
►Reduction in cost production
►Maximum utilization of material and
machinery
►Minimize accidents
►High morale
►To improve quality and quantity of product
►Minimize supervision
►Helpful to managers

Training
On the Job Training Off the Job Training
Job rotation
Coaching
Job instruction
Training through step by step
procedure
Committee assignments
Internship
Lectures training
Conference &
Discussions
Team discussions
Case Study
Role Playing
Programmed instruction

On the Job Training
► On the job training methods are designed to make the
employees immediately productive
► It is learning by physically doing the work
► The focus here is to provide specific skills in a real
situation.
► These methods include:
 Job rotation
 Coaching
 Job instruction
 Training through step by step procedure
 Committee assignments
 Internship

Off the Job Training
► These training methods provide a relatively broad idea
relating to a given job or task.
► These are meant for developing an understanding of
general principles, providing background knowledge, or
generating an awareness of comparative ideas and
practice. These methods include:
 Lectures training
 Conference & Discussions
 Team discussions
 Case Study
 Role Playing
 Programmed instruction

► Meaning of training
► Training plays an important role in human resource
development. It is necessary and useful in the case of all
categories of operative employees, supervisory staff and
managers. Training raises their skills and creates
confidence and ability to perform the job efficiently. It also
facilitates self development and career development of
employees. The main purpose of training is to develop the
human resources present within the employees. In brief,
training is the watchword of present dynamic business
world.
► Training is necessary due to technological changes rapidly
taking place in the industrial field. Industrial training is for
a short period but has wide coverage. It relates to

► Knowledge, information, technical skills, social skills,
administrative skills and finally attitude building. Training is
for developing overall personality of an employee. Training
is the responsibility of the management as it is basically for
raising the efficiency and productivity of employees.
Expenditure on training is an investment for manpower
development and gives rich dividend to employees and
organisation in the long run.
►

► Definition of training:
 According to Edwin Flippo, training is “the act of
increasing the knowledge and skill of an employee for
doing a particular job.”
 Training may be defined as “a planned programme
designed to improve performance and to being about
measurable changes in technical knowledge and skills of
employees for doing a particular job.”
 A formal definition of training is, “it is an attempt to
improve current or future employee performance by
increasing an employee’s ability to perform through
learning, usually by changing the employee’s attitude or
increasing his or her skills and knowledge.

► Need for training
 To match the employee specifications with the ob
requirements and organizational needs
 Organization feasibility and the transformation process
 Technological advances
 Change in the job assignment
► Importance of employee training
 Reduction in cost production
 Maximum utilization of material and machinery
 Minimize accidents
 High morale
 To improve quality and quantity of product
 Minimize supervision
 Helpful to managers
 compiled by VIVEK. MBA SITS 108

TRAINING METHODS
Training
On the Job Training Off the Job Training
Job rotation
Coaching
Job instruction
Training through step by step procedure
Committee assignments
Internship
Lectures training
Conference & Discussions
Team discussions
Case Study
Role Playing
Programmed instruction

►On the Job Training
 On the job training methods are designed to
make the employees immediately productive
 It is learning by physically doing the work
 The focus here is to provide specific skills in a
real situation.
 These methods include:
►Off the Job Training
 These training methods provide a relatively
broad idea relating to a given job or task.
 These are meant for developing an
understanding of general principles, providing
background knowledge, or generating an
awareness of comparative ideas and practice.

Training Process
DISCOVERING OR IDENTIFYING TRAINING NEEDS
GETTING READY FOR THE JOB
PREPARATION OF THE LEARNER
PRESENTATION OF THE OPERATION AND KNOWLEDGE
PERFORMANCE TRYOUT
FOLLOW UP

STEPS IN TRAINING PROCESS
► Discovering training needs: A training program should be
established when it is felt that it would assist in solving a
specific operational problem
 Identification of training needs may be obtained by
conducting an analysis on the following:
►Organizational analysis
►Operational analysis
►Man power analysis
► Getting ready for the job: Under this step, it is to be decided
who is to be trained the newcomer or the older employee or the
supervisory staff or all of them selected from different
departments
 The trainer has to be prepared for this job, because he is the
major &most important in the entire program

► Preparation of the learner: it deals with,
 putting the learner at ease
 Tell him about the importance and contents
 Tell him why he is being taught
 Creating interest, encouraging questions knowing what he
already knows about his job and other jobs
 To make him familiar with the equipment, materials, tools etc
► Presentation of operations and knowledge: It is the most
important step in training program, trainee should clearly tell,
show, illustrate and question in order to put over the new
knowledge and operations
► instruction should be given clearly, completely and
patiently, by making use of audio-visual aids
►He should encourage them to ask questions in order to
indicate that the trainee really knows the job and
understands it

► Performance tryout: In this,
 The trainee is asked to go through the job several times
slowly and asked to explain each step
 Mistakes are corrected and if necessary, some complicated
steps are done by the trainer for the trainee for the first time
 Then the trainee is asked to do the job, by gradually building
up skills and speed
 As soon as the trainee demonstrates that he can do the right
job in the right way, he is put on his own.
► Follow-up: It is taken up to test the whether the training
efforts were effective or not. It consists of
►Putting the trainee on his own
►Check frequently that he followed instructions for sure
►Have more supervision and close follow-up until he is
qualified to work with normal supervision
►It is to be reminded that if the learner hasn’t learnt the
teacher hasn’t taught.compiled by VIVEK. MBA SITS 114

►my num is Bglore- 09900046409,Ap num
9010022997
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