HRM.pptx

Human Resource
Management
UNIT- 2

UNIT- 2
1. Human Resource Planning
2. Job Analysis
3. Recruitment
4. Selection
5. Placement and Induction
6. Job Change

HUMAN RESOURCE PLANNING
HRP is the 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

A process by which an organisation should move from its current
manpower position to its desired manpower position. Through
planning, management strives to have the right number and right
kind of people at the right places at the right time, doing things
which result in both the organisation and the individual receiving
maximum long-run benefit.
- E.W. Vetter

1. To meet the manpower requirement
2. Expansion of an organisation
3. Technological changes
4. Each job may requires specific skills
5. Unproductive labour and shortage of labour
6. Replacement of personnel
7. To meet department-wise manpower requirements
Need for Human Resource Planning

1. To meet the manpower requirement of an organisation and also forecasting
the cost of labour.
2. Expansion of an organisation is the basic indication of the growth of the
organisation and human resource planning is required to keep the production
at the highest level to meet the increasing demand for the products in the
marketplace.
3. Due to technological changes, the management may require skilled labour.
Existing employees are to be provided with training and new employees are
to be inducted after proper training and HRP plays a major role in this
scenario.
4. Frequent labour turnover which is of course unavoidable, should be
monitored and proper replacement should be available to keep the high
standard of production.

5. Each job may requires specific skills and HRP provides manpower with the
required knowledge, skills and attitude.
6. Unproductive labour and shortage of labour lead to production losses. Both
problems are serious and HRP can overcome these problems.
7. Replacement of personnel: Existing manpower may be affected due to
retirement, resignation, retrenchment etc. and HRP is required to assess the
shortages and arrange for recruitment.
8. To meet department-wise manpower requirements: The organisation as a
whole may have the required number of employees, but there may be
surplus/shortage of staff in a particular department. HRP plays a major role
in correcting such imbalances.

Importance of Human Resource
Planning
1. Cost saving
2. Need for quality workforce
3. Imparting training
4. Increase labour productivity
5. Supply of workforce
6. Government policy
7. Improve the Quality of Work Life

Importance of Human Resource
Planning
1. Human resource planning works as a cost saving device. It
maintains a balance between demand and supply.
2. Need for quality workforce is satisfied by effective human
resource planning.
3. By imparting training, employees’ knowledge and skills are
increased. It is an opportunity to develop the hidden talents of
employees.
4. To increase labour productivity human resource planning
required.
5. Supply of workforce without interruption is possible.
6. Government policy regarding reservation in employment brings
about changes in the demand and supply of human resources.
7. To improve the Quality of Work Life of employees in the
organisation.

Factors Affecting Human Resource
Planning
Factors
External
• Government Policies
• Economic Factors
• Business Evnironment Factors
• Information Technology
• Level of Technology
• Competition
Internal
• Company Strategies
• HR Policies
• Planning period
• Job Analysis
• Expansion Programmes
• Production estimates
• Production Policy
• Trade Union
• Loss of manpower
• Employee Workload
• Type of organisation
• Organisation Cycle

External Factors
1. Government policies with regard to liberalisation, industrial
relations, religion/caste based job reservations, age exemptions,
sons of the soil, etc., will affect Human Resource Planning.
Example: The Government has given licence for commercial
banking operations to Microfinance Institution “Bandhan”
2. Economic factors: If the economic situation is encouraging, it
may lead to increase in production and sales and more
employment opportunities.
3. External business environment factors will influence product
volumes and mix of production and demand for human

External Factors
4. Information technology initiatives on supply chain management, enterprise
resource planning, computer aided design, etc., have influenced the
quantity and quality of manpower required in the organisation.
5. Level of technology also affects the type of human resource required in the
organisation. Computerisation in railways, postal department, banks,
airlines, etc., can reduce the headcount in certain departments and at the
same time provide opportunities to qualified people.
6. When the business is highly competitive, companies may go for lean
organisation reducing the number of employees. At the same time, these
companies may also look for people with critical skills to succeed in a
competitive environment.

Internal Factors
1. Company strategies on expansion, diversification, acquisition, etc.,
will affect the requirement of human resources.
2. HR policies on quality of people, compensation, career prospects,
organisation culture will influence human resource plan.
3. Planning period, i.e., short-term/long-term forecast have to be
considered while planning for human resources.
4. Job analysis consisting of job description and job specification
determines the type of human resource required.
5. Under expansion programme, the company normally needs more
number of people in production/sales and marketing etc.

Internal Factors
6. Production/Sales estimates are important inputs for determining
manpower requirements.
7. Production/Operations policies on in-house production, third party
production, changes in process, techniques or installation of new
machinery or better raw material, etc., will influence the quality
and quantity of manpower required.
8. The terms and conditions of working of employees under Union
Agreement will affect human resource planning.

Internal Factors
9. Loss of manpower due to leave, sickness, transfer, resignations,
absenteeism, etc., are also considered.
10. Under Workload Analysis, the company tries to find out the
number and type of people required for various jobs in relation
to planned output.
11. Type of organisation.
12. Organisation Cycle.

Human Resource Planning at different
Levels
1. At National level, the forecast is made for the entire nation by Government
2. Sector level: The requirements of manpower at sector level i.e. agriculture,
industry; service is projected based on Government policy.
3. Industry level: Manpower planning for particular industry like textiles,
chemicals etc. is predicted.
4. Unit level pertains to human resource needs of an organization.
5. Department Level, the forecast covers the manpower needs of a department
or a section
6. At Job level, the manpower needs of a particular job family like electrical
engineering are assessed.

Human Resource Planning Process
Deciding the goals /
objectives
Estimating future
organisational
structure and human
resource requirement
Inventory of present
human resources
Determining
manpower gaps
Formulating HR
Plans
Evaluating
effectiveness of
human resource
planning

1. Deciding the goals/objectives: Based on the corporate objectives, estimates
on the demand and supply of human resource can be made by the HR
department. HRP is carried out for varying time periods, i.e., short-term plans
(upto two years) and long-term plans extending for a period of five years or
even more
2. Estimating future organisational structure and human resource
requirements: External and internal factors such as Government policy,
competition, business forecasts, expansion of business, management policies
on recruitment, terms and conditions of employment, etc. to be considered
while estimating the organisational structure and human resource
requirements

3. Inventory of present human resources: The objective is to find out the size
and quality of people within an organisation. Every organisation has two
major sources of supply of manpower. (a) Internal supply of manpower:
Many organisations maintain ‘Skills Inventory’ of employees which contain
details such as age, gender, education, experience, knowledge, skills, job
level, past performance and potential of existing employees. Such
information can be easily retrieved from computerised HRIS system. (b)
External manpower supply: When the organisation grows rapidly or when it
is not able to find people internally to fill up vacancies, it has to look into
outside sources for supply of manpower

4. Determining manpower gaps: Existing number of employees and their skills
can be compared with forecasted manpower needs to determine gaps in the
workforce. Demand and supply forecast will give us the number of people to
be added/separated and this forms the basis for HR action plans. Examples:
There can be two situations, i.e., (a) Supply of human resource more than the
demand of the organisation and (b) Supply of human resource is less than the
demand of the organisation. When the supply is more, we can conduct strict
selection methods to weed out the inefficient candidates. When the supply is
less, we can try to develop our own employees by giving them training or
encourage them with incentives to shoulder higher responsibilities.

5. Formulating HR Plans: Once the human resource requirement is identified,
HR has to prepare a detailed plan for recruitment, training, redundancy,
retention, redeployment, etc.
6. Evaluating effectiveness of human resource planning: The entire HR plan
has to be closely monitored to remove any deficiencies. Progress of the
implementation has to be compared with the original HR plan and appropriate
action has to be taken to ensure that right number and type of people are
available as per plan.

Qualitative Methods of Demand
Forecasting

Method Advantages Disadvantages
Estimation People in position estimate
the number of people the
firm will require in the next
yr.
Incorporates knowledge
of corporate plans in
making estimates
May be subjective
Expert
opinion
Panel of experts forecast HR requirements for particular future business
scenarios. For this method, there may be a single expert, or estimates of
several experts may be pooled together
Delphi Experts go through several
rounds of estimates with
no face-to-face meeting
Incorporates future
plans & knowledge of
experts related to mkt.,
industry & technical
development
Subjective, time
consuming & may
ignore data
Group
brainstormin
g
Face-to-face discussion
based on multiple
assumptions about future
business direction
Generates lot of ideas Does not lead to
conclusion
Nominal
group
technique
Face-to-face discussion Group exchanges
facilitate plans
Subjective which may
ignore data
Simple
averaging
Simple averaging of
viewpoints
ts Diverse view points
taken
Extremes views are
masked when

Quantitative Methods of Demand
Forecasting

Trend analysis &
projection
Based on past relationship between a business factor related to
employment & employment level itself
Simple long-run
trend analysis
Extrapolates past
relationship
between volume of
business activity &
employment levels
into the future
Recognizes linkage
between
employment &
business activity
Assumes that
volume of business
activity of firm for
forecast period will
continue at same
rate as previous yrs
Ignores multiplicity
of factors
influencing
employment levels
Regression
analysis
Regresses
employment needs
onto key variables
Data driven Uses
multiple business
factors
Difficult to use &
apply

Simulation
models
Uses probabilities of
future events to
estimate future
employment levels
Makes several
assumptions about the
future regarding
external & internal
environment
Simultaneously
examines several
factors
Costly &
complicated
Workload
analysis
Based on actual content
of work
HR requirements
based on expected
output of the firm
Productivity changes
taken into account
Job analysis may
not be accurate
Difficult to apply
Markov
analysis
Probabilistic Based on
past relationship
between business factor
related to employment
& employment level
itself
Data driven Assumes that
nature of jobs has
not changed over
time Applicable to
stable environment

Job
● In other words, when the total work
to be done is divided and grouped
into packages, we call it a “Job”.

Job Analysis
Job analysis is the process of studying and
collecting information relating to the operations
and responsibilities of a specific job.
-K.Aswathappa
Right Person for the
Right Job at the
Right Time and In a
Right Place.

Job Analysis
It is a systematic analysis of each job for
the purpose of collecting information as
to what the job holder does, under
what circumstances it is performed and
what qualifications are required for
doing the job.

Definitions of Job Analysis
“Job analysis deals with the anatomy of the job … This
is the complete study of the job embodying every
known and determinable factor, including the duties
and responsibilities involved in its performance; the
conditions under which performance is carried on; the
nature of the task; the qualifications required in the
worker; and the conditions of employment, such as pay
hours, opportunities and privileges”.
- Harry Wylie
“Job analysis is the process of studying and collecting
information relating to the operations and responsibility
of a specific job”.
- Edwin Flippo

Uses of Job Analysis
1. Human resource planning
2. Recruitment
3. Selection of personnel
4. Training and development
5. Organization audit
6. Job evaluation
7. Job design
8. Performance appraisal
9. Career planning
10. Safety and health

Steps/Stages/Process/
Procedure in Job Analysis:
1. Collection of background information
2. Selection of representative job to be
analyzed
3. Collection of job analysis data
4. Job Description
5. Developing job specification

Techniques of Job Analysis
Data
1. Personal observation
2. Sending out questionnaires
3. Maintenance of log records
4. Conducting personal interviews

Components of
Job Analysis
Job Description Job Specification

Job Description
● The preparation of job description
is necessary before a vacancy is
advertised. It tells in brief the
nature of a job. In other words, it
emphasizes the job requirements.

Definition of Job Description
● Edwin Flippo: “Job Description is
an organized factual statement of
the duties and responsibilities of a
specific job. It should tell what is to
be done, how it is done and why.”

The details given in Job
Description
●
●
●
●
●
●
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, DA, other allowances,
bonus, incentive wage, method of payment,
hours of work, shift, break etc.

The details given in Job Description
Complete list of duties to be 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 hazards, accident
hazards
Training and development facilities
Promotional chances and channels

Job Specification
● Job specification is based on job
description. It is a written statement of
qualifications, traits, physical and
mental characteristics that an individual
must possess to perform the job duties
and discharge responsibilities
effectively.

Definition of Job Specification
● Edwin Flippo: “Job Specification is a
statement of minimum acceptable human
qualities necessary to perform a job
properly”.

Job Specification covers:
Educational and professional qualifications
Skills
Practical experience
Physical fitness
Special qualities required for performing the
job
Intelligence, judgement and initiative
required for performing the job
●
●
●
●
●
●

Job Design
● Job design is defined by Michael Armstrong,
“as the process of deciding on the content of
a job in terms of its duties and
responsibilities; on the methods to be used in
carrying out the job, in terms of techniques,
systems and procedures and on the
relationships that should exist between the
job holder and his superiors, subordinates
and colleagues”.

Job Design
● Ibid, “Job Design is the process of deciding
on the contents of a job in terms of its duties
and responsibilities, on the methods to be
used in carrying out the job, in term of
techniques, systems and procedures and on
the relationships that should exist between
the jobholder and his superiors, subordinates
and colleagues”.

Two important goals of job design
●
●
To meet the organizational
requirements such as higher
productivity, operational efficiency,
quality of product/service etc. and
To satisfy the needs of the individual
employees like interests, challenges,
achievement or accomplishment, etc.

Poorly designed jobs often
result in
● Boredom
● Increased turnover
● Reduced motivation
● Low levels of job satisfaction
● Less than optimal productivity
● Increase in organizational costs

Techniques of Job Design
Job
Design
Job
Enrichment
Job
Simplification
Job
Enlargement
Job
Rotation

Job Simplification
● This requires that jobs be broken down into their
smallest units and then analyzed. Each resulting
subunit typically consists of relatively few operations.
These subunits are then assigned to workers as their
total job. This is done so that employees can do
these jobs without much specialized training. Many
small jobs can also be performed simultaneously, so
that the complete operation can be done more
quickly. Time and motion studies are often used for
work simplification

Advantages of Job Simplification
– Requires less training
– Less costly unskilled labour
– Increase in speed

Job Enlargement: (Horizontal)
● It involves the addition to or expansion of
tasks in the job and job becomes a
meaningful operation.
● It is the strategy adopted by many
organizations to combat the ill-effects of
division of labour.
● Its focus is on enlarging the contents of jobs
by adding tasks and responsibilities.

Job Enlargement
●
●
It involves expansion of the scope and width
of the job by means of assigning certain
closely related operations.
E.g. a clerk in an office doing typing work
may be also assigned tasks of drafting
simple letters, sorting mail and filling of
papers. This will reduce his boredom and
make him satisfied with the job. His
efficiency will also improve.

Job Enrichment: (Vertical)
●
●
It is a direct outgrowth of Herzberg’s Two
Factor Theory of Motivation.
It is therefore based on the assumption that
in order to motivate personnel, the job itself
must provide opportunities for achievement,
recognition, responsibility, advancement
and growth.

Job Enrichment
● It involves the vertical expansion of jobs by
increasing the amount of worker
responsibilities associated with the positions.
● E.g. a worker who previously only loaded
boxes for delivery into a trailer may be given
the responsibility of verifying that the
customer order is correct.

Job Enrichment
● Through job enrichment, autonomy,
responsibility and control becomes part of a
worker’s job.
● This in turn leads to greater feelings of
satisfaction, higher motivation and increased
productivity.

Job Rotation
● This refers to the movement of an employee
from one job to the another over a
designated period of time.
● Jobs themselves are not actually changed,
only the employees are rotated among
various jobs.
● An employee who works on another job for
some days or months and returns back to the
first job.

Job Rotation
●
●
This would relieve the employee from
boredom and monotony, improves the
employee’s skills regarding various jobs and
prepares the employee to meet the
contingencies.
This is also intended to improve worker’s
self-image and provides personal growth.

Job Rotation
● However, job rotation can have a very limited
potential.
● It does not change the basic nature of jobs. Rather
an employee is asked to perform several
monotonous jobs in place of a single job.
● Therefore, the employees who want a challenging
and satisfying job still feel frustrated.
● Moreover, frequent rotation of employees may cause
interruptions in the work routine of the organization.

WHAT IS RECRUITMENT?
Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the
organisation.
It is the process of bringing together those who are offering
jobs and those who are seeking jobs.
It is a positive process where a pool of prospective
employees is created and management select the right person
for the right job from this pool. It provides a base for the
selection process.

DEFINITION
“Recruitment is the process of searching for prospective
employees and stimulating and encouraging them to apply
for the job.” – (Flippo EB, 1980)
“Recruitment is a process to discover the sources of
manpower to meet the requirements of the staffing schedule
and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective
selection of an efficient working force.” – (Yoder D, et al,
1972)

Features of Recruitment:
🞇 It is a process rather than a single act or event.
🞇 Linking activity as it brings together the employer and
the prospective employees.
🞇 Positive activity to seek out eligible persons from
which suitable ones are selected.
🞇 To locate the sources of people required to meet job
requirements.
🞇 Ability to match jobs to suitable candidates.
🞇 A two way process between recruiter and
recruited.
🞇 A complex job that involves lots of factors like image
of the company, nature of jobs offered, organizational
policies, working conditions etc.

RECRUITMENT PROCESS
Identifying the
hiring Needs
Preparing the job
Description
Talent Search
Screening and
Short listing
Interviewing
Evaluation and
Offer of
Employment
Introduction and
induction of the
new employee

SOURCES OF
RECRUITMENT
Sources of
Recruitment
Internal Sources
Transfer Promotion
Internal
Advertisement
Extension of Services
Absorption of
trainees
External Sources
Advertisement Casual Callers
Employment
Exchange
Educational Institute
Labour Union
Recommendation of
employees
Waiting Lists

INTERNAL SOURCES
Internal Sources refers to recruitment that takes place from within the
organization. It includes:
A) Transfer:
Transfers implies shifting of an employee from one job to another without
any shift in change of responsibilities
B) Promotion:
Promotion refers to shifting of an employee to a higher position carrying
higher status, responsibilities and pay.
C) Internal Advertisement:
It means appointing the employees from within the organization through
advertisement
D) Extension of Services:
It is extending the service of employees by recruiting them again.
E) Absorption of trainees:
Those who come in the organization for training employing them.

Merits
🞇 Morale and motivation of employees improves.
🞇 Promotes loyalty and commitment amongst employees due to sense
of job security and advancements.
🞇 Chances of proper selection high
🞇 Present employees familiar with organization surroundings.
🞇 Time and expenditure for recruitment reduced

Demerits
🞇 Fails to bring in fresh blood into organization.
🞇 Promotion based on seniority.
🞇 Choice in selection is restricted.
🞇 All vacancies cannot be filled from within organization.
🞇 Not available to newly established enterprise.

EXTERNAL SOURCES
External sources of recruitment lie outside the organizations. It include:
A) Advertisement:
It is the way to attract number of employees by giving advertisement in the
newspaper.
B) Casual Callers:
Many candidates visit the company by themselves and give interviews. The
companies may not need them presently but can call them anytime in
future when there are vacancies.
C) Employment Exchange:
These exchanges provide information about job vacancies to jobseekers.
These can be private and also government exchanges
D) Educational Institutions:
Here the company’s go to the educational institutions from where they
select the suitable employees for the job

E) Labor Union:
The organization may select the candidate from the labor union of the
company to satisfy the labors also.
F) Recommendation of employees:
Sometimes the employees working in the organization also suggest the
name of suitable candidate for the appointment
G) Waiting List:
Generally the organization prepares the waiting list of the employees.
Sometimes the selected candidates failed to join in that case the
waiting list employees are called.

Merits
🞇 People having requisite skill, education and straining can be
recruited.
🞇 Best selection made irrespective of cast,creed,religion,
sex.
🞇 Helps to bring new blood
🞇 Expertise and experience from other organization can be
bought.
🞇 “never dries up”. Applicable to new firms as well.

Demerits
🞇 Time consuming and expensive
🞇 Employees unfamiliar with organization and its orientation.
🞇 If higher level jobs are filled from external sources, motivation
and loyalty of existing staff effected.

E-Recruitment
E-Recruitment is the process of hiring the potential candidates for
the vacant job positions, using electronic resources, particularly the
internet.
It includes the entire process of finding the prospective candidates,
assessing, interviewing and hiring them, as per the job requirement.
Through this, the recruitment is done more effectively and
efficiently.

Advantages of E-Recruitment
•Lower costs to the organization. Also, posting jobs online is cheaper
than advertising in the newspapers.
•No intermediaries.
•Reduction in the time for recruitment (over 65 percent of the hiring
time).
•Facilitates the recruitment of right type of people with the required
skills.
•Improved efficiency of recruitment process.
•Gives a 24 X 7 access to an online collection of resumes.

Disadvantages of E-Recruitment
•Screening and checking the skill mapping and authenticity of
millions of resumes is a problem and time consuming exercise for
organizations.
•There is low Internet penetration, no access and lack of awareness of
internet in many locations across India.
•Organizations cannot depend solely on the online recruitment
methods.
•In India, the employers and the employees still prefer a face-to-face
interaction rather than sending e-mails.

Techniques of E-Recruitment
1. Outsourcing
2. Poaching / Raiding

Outsourcing
Outsourcing is the business practice of hiring a party outside a
company to perform services and create goods that traditionally were
performed in-house by the company's own employees and staff.
Outsourcing is a practice usually undertaken by companies as a cost-
cutting measure. As such, it can affect a wide range of jobs, ranging
from customer support to manufacturing to the back office.

What are the reasons for outsourcing?
•Optimal scalability: Outsourcing increases the availability of labor. As a
result, maximum output can be achieved and production guaranteed – even
in the event of seasonal or non-operational capacity fluctuations.
•Quicker response: You are more responsive to change because you can
pass these tasks on to specialized third-party companies.
•Quality improvement: Outsourcing often brings quality improvements.
For instance, in manufacturing a good factory or workshop can improve
the quality of products.
•Save costs: External companies have a high degree of specialization with
regard to their services. They can work much more cost-efficiently and
therefore offer discounted rates.
•Lack of know-how: New processes and operations in companies are
often necessary, but the employees often lack the know-how and
implementation skills required. Outsourcing is an alternative to hiring
skilled workers for this.

Poaching / Raiding
Poaching means employing a competent and experienced person
already working with another reputed company in the same or
different industry; the organisation might be a competitor in the
industry.
A company can attract talent from another firm by offering attractive
pay packages and other terms and conditions, better than the current
employer of the candidate. But it is seen as an unethical practice and
not openly talked about.

SELECTION
Selection can be defined as process of choosing the right person
for the right job.
Selection refer to the process by which qualified applicant are
selected by mean of various test in pre determined numbers, out
of large number of applicant.
Recruitment is a positive process where as Selection is a
negative process because under it effort are made to reduce the
no of applicant

SELECTION PROCEDURE
Preliminary interview
Receiving applications
Selection test
Employment interview
Medical examination
Reference check
Final selection or appointment letters

1) Preliminary interview:-
The object of preliminary interview is to ensure whether the applicant is
physically and mentally fit for the job. During preliminary interview, candidate
are asked question related to their experience, education, taste, age, etc. Those
candidate who are successful in the preliminary interview are asked to fill the
blank application form.
2) Blank Application form :-
Blank application form are the printed form of the organization. For different
post there are different form because for each post, person of different
qualification are required.
While preparing these form two things must be kept in view:-
These should convey maximum possible information
Question should be directly related to the post.
3)SELECTION/EMPLOYMENT TEST
“Employment tests are devices to check the areal knowledge of candidate for
the respective jobs. These tests enable the management to bring out the right
person for the job”

Selection test
Intelligence test
Aptitude test
Personality test
Achievement test
Simulation test
Assessment test
Geography test
Polygraph test
Integrity test

 Intelligence test:-
It test the mental ability of candidate. These test measure the
learning ability of candidate & their power to take quick
decisions on crucial points
 Aptitude tests:-
It test an individual’s capacity to learn a particular
skill.
 Cognitive tests:- which measure intellectual, mental aptitudes.
 Motor tests:- these test check the hand-eye coordination
of employees.

 Proficiency tests:-
These test are designed to measure the skills already by the individuals.
They are used to test the level of knowledge.
 Personality tests:-
These tests judge the psychological make-up of any person. These tests check
an individual’s motivational level, emotions, integrity, sympathy, sensitivity,
etc. In this test a controversial situation is presented to the person
 Interest test:-
These test will suggest what type of jobs may be satisfying to the employees.
They help the individuals in selecting occupations of their interest
Achievement test:-
These are designed to measure what the applicant can do on the job currently.
These tests are also known as work sample test.
Simulation test:-
It measure the ability of the person to face various problems while at work.
These test are used for hiring managers.
Graphology test:-
These test involve using a trained evaluator to flourish a person’s handwriting
to assess the person's personality & emotional make-up

 Integrity test:-
These test are designed to measure employee’s honestly to predict those who
are more likely to steal from an employer or otherwise act in a manner
unacceptable to the organization.
In it many “yes” or “no” type question are asked.

4) SELECTION INTERVIEW
Interview is the oral examination of candidates for employment. In this step the
interviewer matches the information obtained about the candidate through various
means to the job requirement and to the information obtained through his own
observations during the Interview.
Types of Interview:
Several types of interview are commonly used depending on the nature and
importance of the position to be filled within an organization.
1) Structured Interview: In this type of interview a list of questions asked by
the interviewer is prepared in advance on the basis of an analysis of job
satisfaction.
2) Unstructured Interview: In this type of interview list of questions asked
by the interviewer is not prepared in advance. In this type of interview
questions are asked as what comes in interviewer’s mind.
3) Panel Interview: In panel interview candidate is screened by a group of
interviewers who are specialists in their respective fields. They call upon the
candidates one by one and assess his qualities.
4) Stress Interview: under it, the interviewer deliberately creates a situation that
puts the candidate to a considerable strain. Frequent interruptions, criticism of
candidate’s opinion, keeping silence for extended period of time are some of
the methods of creating stress.

INTERVIEW PROCESS
HR experts have identified certain steps to be allowed while
conducting interview:
1) Preparation: Effective interviews do not just happen. They are planned.
This involves:
 Establishing the objectives of the interview.
 Reviewing the candidate’s application and resume, noting areas that may
show candidate’s strengths and weaknesses on which questions could be
asked.
 Keeping the test scores ready.
 Selecting the interview method to be followed.
 choosing the panel of experts who would interview the
candidates
2) Reception: The candidate should properly received and led into the interview .
As a rule, treat all candidates even unsolicited drop-ins at your office courteously,
not on humanitarian grounds but because your company’s reputation is at stake.
Start the interview on time.

3) Conducting the interview: Information exchange
The information exchange between the interviewer and the interviewee may
proceed thus:
 state the purpose of the interview, how the qualifications are going to be
matched with skills needed to handle the job.
 do not monopolise the conversation, giving very little chance to the
applicant to reveal himself.
 begin with open-ended questions where the candidate gets enough
freedom to express himself freely
 focus on the applicant’s education, training, work experience etc
 avoid questions that are not job related
 listen to the applicant’s answer attentively and patiently.

4)Termination: End the interview as happily as it began without creating
any awkward situation or the interviewee. Here, avoid communicating,
through unpleasant gestures such as sitting erect, turning towards the door,
glancing at watch or clock etc.
5)Evaluation: After the interview is over summarise and record your
observations carefully, constructing the report based on responses given by
applicant, his behaviour, your own observations and opinions of other experts
present during the interview. Better to use a standardised evaluation form for
this purpose.

5) Medical examination:-
Candidate/applicant who have crossed the above stages are sent for a physical
examination or medical examination
1
There are three aim of medical examination:-
• Physical fitness for the job
concerned
2
• To protect the business organization
form infectious diseases
3
• To check excessive expenditure on
the treatment of employee.

6) Reference Check:-
After medical examination information is gathered from those person whose
name figure in the column of “reference”.
These information related to character, social relation, background, etc, of the
candidate. To obtain this information the employer may contact to his friends or
his past or present employers.
7) Final selection or appointment letter:-
After successfully clearing the medical examination or reference check, job
offer is given to the selected candidate. For the job offer, appointment letter is
handed over. After the acceptance of job offer by a selected candidate, he
become an employee of the organization.

• Placement is said to be the process of fitting
the selected person at the right job or place,
i.e. fitting square pegs in square holes and
round pegs in round holes.
• Placement is a process of assigning a specific
job to each of the selected candidates

• An actual posting of an employee to the specific job
with rank & responsibilities attached to it.
• It involves assigning a specific rank and
responsibility to an individual.
• It implies matching the requirements of a job with
the qualifications of the candidate’s skills, abilities,
potentials, capacities and their expectations
towards the organization.

• It improves employee morale.
• It helps in reducing employee turnover.
• It helps in reducing absenteeism.
• It helps in reducing Conflict rates.
• It avoids misfit between the candidate and the job.
• It helps the candidate to work as per the
predetermined objectives of the organization.

• Good results on the Job.
• Getting along with the people easily and proving
themselves.
• Keeping his spirits high and report for the duty
regularly.
• Learning the work and excel in the job.
• Avoid mistakes and errors.

• Once an employee is selected and placed on an
appropriate job, the process of familiarizing him
with the organization & work environment is known
as Induction.
• The process through which a new recruit is
introduced into the organization.

• It is a well designed program which aims at
recognizing a new employee and making him
accustomed to his department , job role & work
culture .
• An orientation session may vary form 1 day to
several days depending on organizational &
departmental requirements .

• INDUCTION is an
introduction with who you
are going to work for
• Includes company overview
 mission , vision , values
 History , objectives &
clients
 business verticals ,
management team &
hierarchy
 Policies & dress code
 Business conduct
guidelines.
• Joining & statutory forms
• ORIENTATION is aligning with job
roles & responsibilities & work
culture
• Includes multiple learning methods
 presentation & videos
 information session & online
learning
 workplace tour & formal meetings
with teams & departments
• Information of procedures &
processes , Work assignment/job,
clients , team member , key
contacts , employment term &
conditions

• To help the new comer to overcome his shyness and
overcome his shyness nervousness in meeting new
people in a new environment.
• To give new comer necessary information such as
location of a café, rest period etc.
• To build new employee confidence in the organization.
• It reduces confusion and develops healthy relations in
the organization.
• To ensure that the new comer do not form false
impression and negative attitude towards the
organization.
• To develop among the new comer a sense of belonging
and loyalty to the organization.

• Brief history and operations of the company.
• The company’s organization structure.
• Policies and procedure of the company.
• Products and services of the company.
• Location of department and employee facilities.
• Safety measures.
• Grievances procedures.
• Benefits and services of employee.
• Standing orders and disciplinary procedures.
• Opportunities for training, promotions, transfer etc.
• Suggestion schemes.
• Rules and Regulations.

• Induction helps to build up a two-way channel of
communication between management and workers.
• Proper induction facilitates informal relation and team work
among employee.
• Effective induction helps to integrate the new employee into
the organization and to develop a sense of belonging.
• Induction helps to develop good relation.
• A formal induction program proves that the company is taking
interest in getting him off to good start.
• Proper induction reduces employee grievances, absenteeism
and labor turnover.
• Induction is helpful in supplying information concerning the
organization, the job and employee welfare facilities

JOB CHANGE
•Internal Mobility
•Tranfer
•Promotion
•Demotion
•Sepration
•External Mobilty
•Resignation
•Retirement
•Termination

Needs of Internal Mobility
•Organisational Needs
•Better utilise of employees
•Employees’ needs
•Punish Employees

Internal Mobility
Promotions , Transfers, Demotion
and Separation

Meaning of
Promotion
• According to E.B. flippo “promotion involves a
change from one job to another that is better
in the terms of status and responsibilities.”
• According to Scott and Spreigal: “A Promotion
is the transfer an employee to a job that pays
more money or that enjoys some preferred
status.”

Purpose of Promotions
1. Recognize and reward employee’s good/superior performance and
commitment.
2. Promote a feeling of content with the existing conditions of the
company and a sense of belongingness.
3. Build loyalty and to boost morale and job satisfaction.
4. Retain skilled and talented employees and reduce discontent and
unrest.
5. Promotions acts as a tool for reducing labour turnover.
6. Increase interest in acquiring higher qualifications, training and self
development with a view to meet the requirements of promotion.
7. Reduce/Eliminate problems created by the leader of workers’
unions by promoting them to the officer’ levels where they are
less effective in creating problems.
8. Ultimately it improves organizational health.

Seniority
1. Seniority means length of
recognized service in an
organization.
2. Seniority means the calculation of
time from when an employee has
joined the company and served for
how many years in the company.
3. The senior most person in the
lower grade shall be promoted as
and when there is an opening in
the higher position
4. Seniority is suggested as the criteria
for promotion on the plea that
there is a positive correlation
between length of the service and
talent
Merit
1. Merit means ability to work.
2. It denotes an individual employee’s
skill, knowledge, ability, efficiency and
aptitude as measured from
educational, training and past record
3. If the merit is adopted as basis of
promotion then the person in the lower
grade ,no matter his junior most in the
company, shall be promoted.
4. It encourage all employee to improve
their efficiency
Basis for Promotions

Seniority Based
1. Easy to measure the length
of service
2. Trade unions generally emphasis on
seniority.
3. Security and certainty.
4. Minimize the scope of grievances
and conflicts.
5. Reduce labour turnover
6. Sense of satisfaction to senior
employees and is in line with the
Indian Culture of respecting
seniority in all walks of life.
Merit Based
1. Difficult to judge merit.
2. Implies the knowledge, skills and
performance record of an employee.
3. Motivates competent employees to
work hard and acquire new skills.
4. Maintains the efficiency of the
organization by recognizing talent
and performance
5. Attracts and retains young and
promising employees in the
organization
Advantages of Seniority and Merit
Based Promotions

Seniority Based
1. Length of Service is not
directly proportional to talent.
1. Performance and potential of
an individual is not recognized.
2. Demotivates and demoralizes
the young employees who
are talented.
3. Kills the zeal and interest for
self development
4. Fails to attract young and
hardworking employees
Merit Based
1. Measuring Merit is not
easy. Subjective
judgement may be
involved.
2. Many, particularly trade unions
distrust the management’s
integrity in judging merit.
3. When younger employees are
promoted over the older one,
the older employees may feel
insecure or leave.
Disadvantages of Seniority and
Merit Based
Promotions

As both seniority and merit as basis suffer from certain
limitations, a sound promotion policy should be based on a
combination of both seniority and merit.
A proper balance between the two can be maintained by
differentiating the way minimum length of service is
prescribed.
Relative weightage may be assigned to seniority and merit and
employees with a minimum performance record and
qualifications are treated eligible for promotion. Seniority is
used to choose from the eligible candidates
Seniority cum Merit as a Basis for
Promotion

• A transfer is a horizontal or lateral movement of an
employee from one job, section, department, shift
plant or position to another at some other place
where salary, status and responsibility are usually the
same.
• Transfer is defined as “a lateral shift causing
movement of individuals from one position to
another usually without involving any kind of
change in duties, responsibilities, skills needed or
compensation”.
Meaning of Transfer

Types of Transfers
1. Production Transfer: Such transfers are resorted to when there is a need
of manpower in one department and surplus manpower in another
department. Such transfers are made to meet the company
requirements.
2. Replacement Transfers: Replace an existing employee who has been in
the organization for a long time with a new employee and thereby giving
some relief to an old employee from the heavy pressure of work.
3. Remedial Transfers: As the name suggest, these transfers are made to
rectify the situation caused by faulty selection and placement
procedures. Such transfers are made to rectify mistakes in placement
and recruitments.
4. Versatility Transfer: Such transfers are made to increase versatility of the
employees in more than one job and department. This type of transfer,
also referred to as ‘Job Rotation’ is a tool to train employees.

5. Shift Transfers: are transfers of workers from one shift to another on
the same type of work. Workers generally dislike second or third shift
as it affects their participation in community life.
6. Selection Transfers: they are made within the department or
section. It is to be train the workers and prepare them to handle
different types of operations within the department.
7. Departmental Transfers: transferring from one department to
another department within the plants.
8. Inter-Plant transfers: if there is more than one plant under the
control of same management transfer may be made from one plant
to another for varied reasons. Such transfers are called inter- plant
transfers.
Types of Transfers, contd.,

1. Increase in productivity and effectiveness of the
organization.
2. Greater job satisfaction to employees.
3. Stabilize fluctuating job needs.
4. Improve employee skills.
5. Remedy for wrong placement.
6. Improve labour relationships.
7. Develop employees for future promotions.
8. Avoid monotony and boredom.
Benefits of Transfer

1. Meet the organizational requirements and also personal requirements of employees.
2. Satisfy employee’s needs.
3. Utilize employees’ skill, knowledge etc., where they are more suitable or badly
needed.
4. Correct inter-personal conflicts.
5. Avoid favoritism and nepotism.
6. Creates transparency among the employees and their work
7. Maintain healthy relationship among staff in order to ensure harmonious
environment and to avoid unnecessary disputes.
8. Limits the ability of an employee to take advantage and sole control over the seat or
section.
Reasons for Transfer

• The process of reorganizing or restructuring a business by
cost-cutting, reduction of workforce or reorganizing upper-
level management. The goal is to get the company molded
properly to achieve maximum profit. The term rightsizing is
often used by companies instead of downsizing because it
sounds less drastic.
• It is proactive and needs to be a constant part of the process
of managing an organization. To do rightsizing of an
organization, the leaders first look at market needs and
trends, technologies, alternative approaches, and new ideas.
Right Sizing the Workforce

1. Ensures that the required functions are properly
maintained.
2. Cost-control and to Maximize Profits
3. Avoid formation of trade unions
4. Enhance employee performance and
productivity
5. Improve employee collaboration
6. Create a sense of belongingness within the
employees.
Need for Right Sizing

Demotion has been defined as the assignment
of an individual to a job of lower rank and pay
usually involving lower level of difficulty and
responsibility.
Demotions serves as a useful purpose in the
sense that they keep the employees alert and
alive to their responsibilities and duties.
Demotion

Separation
Separation means cessation of service from the organisation
for one or more reasons.
The employee may be separated from HR payroll due to:
• Resignation
• Discharge and dismissal
• Suspension and retrenchment
• Lay off

HRM.pptx

Recommended

Recommended

More Related Content

Similar to HRM.pptx

Similar to HRM.pptx (20)

Recently uploaded

Recently uploaded (16)

HRM.pptx