HUMAN RESOURCE PLANNING - MG UNIVERSITY 3RD SEMESTER - FULL NOTES

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HUMAN RESOURCE PLANNING
MODULE I
Human ResourcePlanning ; Conceptand Objectives - HRP at Micro and
Macro levels ; HRP and Business plans - Different Approaches - Human
ResourcePlanning Process;Demand and Supply Forecasting ; Different
tools and techniques ; Labor wastage – Absenteeism and labor turn over .
MODULE II
Job Analysis; Job Descriptions, Job Specification - Human Resource
Inventory - Career Management; Career Planning, Career Paths, Career
Anchors, Career Development.
MODULE III
Recruitment: Recruitment Policy, Approaches, Sources of Recruitment,
Advertisements, Web Recruitment, The Employment
Exchange (Compulsory Notification of Vacancies) Act, 1959. Selection:
Conceptand Process ofSelection; Application blank,
Weighted Application Blank, Resume, Resume Scanning Psychological
Tests – definition ,Purpose, Characteristics and Developing Psychological
Tests, Different Types of Tests – Attitude, Aptitude, Traits, Interpreting
Test Results, Reliability and Validity.

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MODULE IV
Selection, Interviewing ; Purpose;Types of Interviews ; Interview
Techniques; Interviewing skills ; Advantages and Limitations of
Interviews; Do’s and don’ts of selection Interviewing, Medical Checkups,
Reference and back ground check, Choice of selection methods,
assessment Centers, Reliability and validity of selection tools.
MODULE V
Employment offers; service conditions, contract of employment,
Psychological contract - Induction. Importance, Socializing the new
employee, Different types of Socialization. Placement, Probation and
Confirmation, Promotion and Transfer; Policies and Procedures,
Retraining, Out placements, HR out Sourcing.

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MODULE – I
HUMAN RESOURCE PLANNING
• Process bywhich an organisation ensures that it has the right number & kind
of people at the right place and at the right time, capable of effectively and
efficiently completing those tasks that help the organisation achieve its
overall objectives.
IMPORTANCE
• Each Organisation needs personnel with necessary qualifications, skills,
knowledge, experience & aptitude .
• Need for Replacement of Personnel - Replacing old, retired or disabled
personnel.
• Meet manpower shortages due to labour turnover
• Meet needs of expansion / downsizing programmes
• Cater to Future Personnel Needs - Avoid surplus or deficiency of labour.
• Nature of present workforce in relation with Changing Environment - helps
to copewith changes in competitive forces, markets, technology, products
and government regulations.
OTHER USES OF HRP
• quantify job for producing product/ service
• quantify people & positions required

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• determine future staff-mix
• assess staffing levels to avoid unnecessary costs
• reduce delays in procuring staff
• prevent shortage / excess of staff
• comply with legal requirements
HRP PROCESS

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ORGANIZATIONAL OBJECTIVES
• Downsizing / Expansion
• Acquisition / Merger / Sell-out
• Technology upgradation / Automation
• New Markets & New Products
• External Vs Internal hiring
• Training & Re-training
• Union Constraints
HR DEMAND FORECASTING
DEFINITION
Process ofestimating future quantity and quality of manpower required for an
organisation.
• External factors - competition, laws & regulation, economic climate,
changes in technology and social factors
• Internal factors - budget constraints, production levels, new products &
services, organisational structure & employee separations
FORECASTING TECHNIQUE
• Managerial Judgment - Managers discuss and arrive at a figure of inflows &
outflows which would cater to future labour demand.

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• Ratio-Trend Analysis - Studying past ratios, i.e. No. of Workers Vs Volume
of Sales, forecasting future ratios and adjusting for future changes in the
organisation
• Work-Study Technique - Used when length of operations and amount of
labour required can be calculated
• Delphi Technique - From a group of experts the personnel needs are
estimated
HR SUPPLY FORECAST
DEFINITION
process ofestimating future quantity and quality of manpower available internally
& externally to an organisation.
SUPPLY ANALYSIS
• Existing Human Resources
• Internal Sources of Supply
• External Sources of Supply
INTERNAL SUPPLY
Inflows & Outflows - The number of losses & gains of staff is estimated
1. Turnover Rate - refers to rate of employees leaving.
= ( No. of separations in a year / Avg no. of employees during the year ) x 100
2. Absenteeism - unauthorised absence from work.= ( total absentees in a year /
Avg no. of employees x No. of working days) x 100

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3. Productivity Level - = Output / Input. Change in productivity affects no. of
persons per unit of output.
4. Movement among Jobs - internal source of recruitment, selection and placement
EXTERNAL SUPPLY
• External recruitment, selection & placement - Advertisements, Manpower
Consultants, Campus Recruitment, Unsolicited Applications, Employee
Referrals
HR PROGRAMMING
• Balancing Demand and Supply
• Vacancies filled in by the right employee at the right time
HR PLAN IMPLEMENTATION
• Recruitment, Selection & Placement
• Training & Development
• Retraining & Redeployment
• Retention Plan
• Downsizing Plan

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MODULE – II
JOB
 A job may be defined as a “collection or aggregation of tasks, duties and
responsibilities which as a whole, are regarded as a regular assignment to
individual employees”.
JOB ANALYSIS
 Edwin Flippo: “Job analysis is the process ofstudying and collecting
information relating to the operations and responsibility of a specific job”.
USES OF JOB ANALYSIS
• Human resource planning
• Recruitment
• Selection of personnel
• Training and development
• Organization audit
• Job evaluation
• Job design
• Performance appraisal
• Career planning
• Safety and health

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PROCEDURE OF JOB ANALYSIS
• Collection of background information
• Selection of representative job to be analyzed
• Collection of job analysis data
• Job Description
• Developing job specification
TECHNIQUES OF JOB ANALYSIS
• Personal observation
• Sending out questionnaires
• Maintenance of log records
• 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.

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

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JOB SPECIFICATIONCOVERS
• 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 ofdeciding 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”.
TWO IMPORTANT GOALS OF JOB DESIGN
1. To meet the organizational requirements suchas higher productivity,
operational efficiency, quality of product/service etc. and
2. To satisfy the needs of the individual employees like interests, challenges,
achievement or accomplishment, etc.
POORLYDESIGNED JOBS OFTEN RESULT IN
1. Boredom
2. Increased turnover

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3. Reduced motivation
4. Low levels of job satisfaction
5. Less than optimal productivity
6. Increase in organizational costs
TECHNIQUES OF JOB DESIGN
• Job Rotation
• Job Simplification
• Job Enlargement
• Job Enrichment
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.
ADVANTAGES OF JOB SIMPLIFICATION
1. Requires less training
2. Less costly unskilled labour
3. Increase in speed

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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.
• It involves expansion of the scopeand 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
boredomand make him satisfied with the job. His efficiency will also
improve.
JOB ENLARGEMENT: 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.
• 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.

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• Through job enrichment, autonomy, responsibility and controlbecomes 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 backto the first job.
 This would relieve the employee from boredomand 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.
 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.

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MODULE – III
RECRUITMENT
• Recruitment is “the process ofsearching for prospective employees and
stimulating them to apply for jobs in the organization”.
• Employee recruiting is the activity of identifying and soliciting
individuals—either from within or outside an organization—to fill job
vacancies or staff for growth.
RECRUITMENTPOLICY
• Recruitment and selection policy is a statement of principles, outlining how
your organization should conductits recruitment and selection process.
GOOD RECRUITMENT POLICY
• Complies with government policies
• Provides job security
• Provide employee development opportunities
• Flexible to accomodatechanges

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• Ensures its employee long term employment opportunities
• Costeffecetive for the organization
COMPOMNENTS OF GOOD RECRUITMENT POLICY
• The general recruitment policies and terms of the organization
• Recruitment services of consultants
• Recruitment of temporary employees
• Unique recruitment situations
• The selection process
• The job descriptions
• The terms and conditions of the employment
RECRUITMENTAPPROACHES
• There are a variety of recruitment approaches and most organizations will
utilize a combination of two or more of these as a part of a recruitment
exercise or to deliver their overall recruitment strategy.
• The steps for recruiting approaches are :
 In house recruitment
 Internal recruiters
 Employee referrral
 Outsourcing
 Employment Agencies
 Traditional agencies

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 Niche recruiter
 Executive search firms “ Headhunters”
 Internal recruitment services
RECRUITMENTPROCESS

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PHILOSOPHIES OF RECRUITMENT
• Realistic Job Preview (RJP)
• Job Compatibility Questionnaire(JCQ)
SOURCES OF RECRUITMENT
• Internal Sources
• Extrenal Sources
INTERNAL SOURCES OF RECRUITMENT

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EXTERNAL SOURCES OF RECRUITMENT

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SOURCES OF RECRUITMENT
• Employment Agencies
• Deputation (Internal)
• Trade Unions
• Employee raiding : The term employee poaching/ raiding is used to describe
practices that involve companies hiring employees from their competitors.
• Unsolicited Applicants
• Job site/ Online recruitment.
COMPULSORYNOTIFICATION OF VACANCIES ACT, 1959
• The Employment Exchanges (Compulsory Notification of Vacancies) Act
was enacted in 1959
• To provide compulsory notification of vacancies to the Employment
Exchanges.
• This act came into force with effect from 1st May, 1960.
• All Establishments in Public Sectorand such establishments in private
Sectorexcluding Agriculture, where ordinarily 25 or more persons are
employed come within the purview of the Act.

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MODULE – IV
SELECTION
• “The process ofchoosing the most suitable candidate for a job from among the
available applicants is called selection”
• It is the process ofascertaining the qualifications, experience, skill, knowledge,
etc of an applicant with the purposeof determining his/her suitability for a job
STEPS IN SELECTION PROCESS

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TYPES OF SELECTION TEST
• Personality Test
• Attitude Test
• Cognitive Ability Test- General Intelligence , Aptitude Test & Achievement
Test).
• Integrity & Honesty Testing.
• Physical Ability Test.
• Simulation Test
• Assessment Test
• Polygraph Test
SELECTION TESTING
• Selection testing is performed to analyze the applicants behaviour,
perfoemance and aptitudes.
• Tests provide a systematic basis for comparison and selection
INTELLIGENCE TESTING
• It involves test of mental ability, learning ability, memory, perception,
vocabulary of the applicant
APTITUDE TEST
• It checks the applicants potential to certain skills and checks their ability to
perform tasks quickly and efficiently

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PERSONALITY TEST
• It tests motivation, interests, preferences, emotional balance, self confidence,
interpersonal behaviour etc
ACHIEVEMENT TEST
• It involves proficiency tests which tests what an applicant can do and work
sampling which tests the applicants ability to do a small portion of the job
INTEGRITY TEST
• It tests the loyalty and honesty of the applicant
GRAPHOLOGY TEST
• It tests the handwriting of the applicant
PSCYCOLOGICALTEST
• Pschye - Greek word for ‘ Spirit, soul and breath’
• Logia – Greek word for studying something
• Psychological tests are tests used to assess ability, personality and behaviour
PRINCIPLE TYPES OF PSYCHOLOGICAL TESTS
 Mental Ability Tests
 Intelligence – measure general mental ability
 Aptitude – measure more specific mental abilities
 Achievement – measure acquired abilities
 Personality Scales
 Measure motives, interests, values and attitudes

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THREE DIFFERENTTYPES OF PERSONALITYTESTING USED IN
THE WORKPLACE
• Myers-Briggs Type Indicator
• Minnesota Multiphasic Personality Inventory (MMPI)
• Kolbe Index
• Thematic Appreciation Test/picture interpretation technique
MYERS-BRIGGSTYPE INDICATOR

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KOLBS ACTION MODE

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PRINCIPLES/ FEATURES OF GOOD PSYCHOLOGICALTESTING/
INTERVIEWS
• Standardization
• Objectivity
• Test Norms
• Reliability
• Validity
• Practicability
PURPOSEOF PSYCHOLOGICAL TEST
• To make more informed hiring decisions.
• Is used to determine, in particular, the ability of potential employees to work
under stressful conditions .
• To assess the potential of a prospective employee to handle the job
effectively under those conditions.
• It help to reduce the number of problem employees.
• It help a company hire more suitable employees and save on the costof high
employee turnover.
• Fulfill position requirements and fit within your organizational culture.
• Since psychological testing a complex method and it has wide divergence,
introduced the conceptof “ATTITUDINAL MEASUREMENT”

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ATTITUDES
• Attitudes are beliefs about people, groups, ideas or activities
• Evaluate statements concerning objects, people, or events
• There are 2 types of attitudes. They are :-
 Explicit attitude
 An attitude that we are aware of
 that shapes ourconcious decisions and actions
 and that can be measured in various indirect ways
 Implicit Attitude
 An attitude that we are unaware of
 That may influence our behaviour in ways we dont recognize
 And that is measured in various indirect ways
• During the courseof development, person acquires tendencies to respond to
object, these learned cognitive mechanism are called attitude
COMPONENTS OF ATTITUDE
• Cognitive Attitude
Beliefs, opinions, knowledge or information held by a person
• Affective Attiude
Emotion or feeling
• Behavioural Attitude
Intention to behave in a certain way toward someone or something
SCALES OF MEASURING ATTITUDE
• There are two types of scales
 Rating scale
 Ranking scale

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Ranking Scale
• They have several responsecategories and are used to bring out responses with
regard to the object, event or person under study.
• The following rating scales are often used in organizational research :
 Dichotomous scale – Yes or No
 Category Scale – Multiple choice
 Likert Scale - used to indicate agreement
COMMON SCALES
• Thurstone
• Likert Type
• Guttman
• Semantic Differential
LIKERT SCALE
• Developed by Rensis Likert.
• Here the respondents are asked to indicate a degree of agreement and
disagreement carrying different score.
• Each scale item has 5 responsecategories ranging from strongly agree and
strongly disagree.
• Each respondents ranking is found out by totaling his scores on all
statements.

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SEMANTIC DIFFERENTIALSCALE
• Charles E Osgood’s, semantic differential scale is nicknamed "the ever
ready battery" of the attitude researcher
• Seven point scale and the end points of the scale are associated with bipolar
labels.
• The respondentis asked to choosewhere his or her position lies, on a scale
between two polar adjectives.
THURSTONE’S EQUAL APPEARING INTERVAL SCALE
• They are used to measure the attitude of a group on a specified issue in the
form of frequency distribution. Steps to constructThurstone scale.
1. Large number of statements about particular issue are collected from
literature or prepared for this purpose.
2. The statement should cover different range of attitude.
3. Statements are given number for identification .
4. Group of judges are asked to sort those into several piles.
5. After that tabulation is made to determine the number of times each
statement is included in the piles.
 The scale values for each statement are determined graphically in form of
cumulative frequency curve.
 Final scale is made by selecting 15-20 statements.
 Respondents are asked to check those statements with which they agree.

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GUTTMAN’S CUMULATIVE SCALE
• Very commonly used in political science, anthropology, public opinion,
research and psychology.
• Scale is made up of relatively small number of statements tested for uni-
dimensionality, which measures only one variable.
• The respondents agreeing with the most favorable statements are
theoretically presumed to agree with other statements expressing lesser
degree of favorability.
• This scale takes a lot of time and effort in development
INTERVIEW
• Interview is the most commonly used survey method for the selection of an
employee.
• Explained as the formal conversation between the interviewer and
interviewee.
• Three main purposeof interview
1. Gather information from the candidate
2. Provide information for the candidates.
3. To establish a positive relationship

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TYPES OF INTERVIEW

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TYPES OF INTERVIEW
• On the basis of pattern
• On the basis parties involved
• On the basis of methodology used
• On the basis of criteria
• Others : Stress Interview, Behavioral Interview, Situational Interview, In-
depth Interview etc.
ON THE BASIS OF PATTERN
 Formal/structured/planned/directive interview
 Informal/indirective/unstructured interview
ON THE BASIS OF PARTIES INVOLVED
• One to one interview
• Panel/ Group interview
ON THE BASIS OF CRITERIA
• HR interview
• Technical interview
• Behavioral interview
• Final interview

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ON THE BASIS OF METHODOLOGY USED
• Face to face interview
• Telephonic interview
• Video conferencing
OTHERS
• Stress Interview
• Behavioral Interview
• Situational Interview
• In-depth Interview
JOB INTERVIEW DO’S
• Dress neatly and properly
• Greet your interviewer
• Make regular - but not piercing or staring - eye contact
• Analyze the requirements for your target job
• Listen carefully to each question.
• Good understanding about company profile
• Maintain good bodygesture
• Showing enough confidence

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JOB INTERVIEW DON'TS
• Criticize any previous employer, co-worker or supervisor.
• Make any false statements that could be discovered by your employer in
the future.
• Share any weaknesses which are central to your target job.
• Make vague, unsubstantiated assertions about your qualifications.
• Show a preference for any single interviewer in a group interview
situation.
• Act like - know it all.
• Check your cell phone during your interview.
• Arrive late for your interview.
• Enter the employer's facility more than 20 minutes prior to the interview.
• Dress in too casual a manner.
• Talk too much.
• Joke around excessively.

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DOS AND DONTS OF INTERVIEWING
• Do not assume anything
• Do not form pre-judgments
• Do ask both open and closed questions
• Do verify understanding through probing and confirming questions
• Do avoid confrontation
• Do act in a friendly but professional manner
• Do not interrupt

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MODULE – V
OFFER OF EMPLOYMENT AND EMPLOYMENTCONTRACTS
• An offer of employment is a legal contract between an employee and your
organization.
• This document should clearly state the terms and conditions for both parties.
PREPARING THE OFFER OF EMPLOYMENT
When preparing an offer of employment, certain information must be included to
ensure a comprehensive employment contract. Make sure you:
• Make clear whether this is a fixed-term or indeterminate contract
• State the date the employment contract will begin and with whom the
contract is made
• Set the expiry date (if this is a fixed-term contract)
• State the employment status (for example, permanent full-time)
• Cite any probationary period
• Describe the name, nature and expectations of the job
• Make clear the reporting relationship.
• State the base salary and the frequency of each payment.
• State the bonus or commission payments if applicable (this may be
provided in a separate contract).
• List the benefits that the employee will have access to (this may be
provided as an addendum to the contract).
• List any vacation entitlement.

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• Specify how and when the employment relationship can be terminated.
• Stipulate any requirement to sign a non-disclosure agreement (NDA) as part
of the condition of employment.
• Secure the signatures of the employee and the organization’s
representative(s).
MAKING THE OFFER
• In most circumstances, the initial offer of employment will be made
verbally over the phone.
• This should be done as soonas possible in case the candidate has been
looking for opportunities elsewhere.
• The offer should be explained in accordancewith the employment
contract specifications above. There may be negotiations over certain
aspects, including compensation, timing or legal restrictions.
• The candidate should be given a short period of time to consider the
offer, which can be negotiated.
• The verbal offer should be followed by a written employment offer that
clearly states the expiry date of the offer.
DEFINITION OF 'TERMS OF EMPLOYMENT'
• The conditions that an employer and employee agree upon for a job.
• Terms of employment include an employee's job responsibilities, work days,
hours, breaks, dress code, vacation and sick days and pay.
• They also include benefits such as health insurance, life insurance and
retirement plans.

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• Employees whose skills are in higher demand will have an advantage when
negotiating terms of employment.
EMPLOYMENT CONTRACTS
• When an employee accepts a position with a new company, a company will
draw up an employment contract.
• The purposeof the contract is to detail the requirements and specifications
of the position.
• Sections can include compensation information, an outline of job duties and
whether the new worker is an employee or independent contractor.
• Both the employer and employee must agree to and sign the contract for it to
become legally binding.
THERE ARE TWO TYPES OF EMPLOYMENT CONTRACTS THAT
SHOULD BE CONSIDERED:
• A fixed-term contract that has an expiry date
• An indeterminate contractthat has no expiry date
Indefinite contract
• With this type of employment agreement, the relationship continues until
either party chooses to end the relationship (that is, resignation by employee
or termination by company)
Fixed-term contract
• With this type of agreement, the employment concludes on a specific date.

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• It is important to set out how the relationship may be terminated during the
term if necessary.
CONTENTS OF EMPLOYMENT AGREEMENT
The employment agreement should contain the following information:
• Title
• Employment status
• Compensation
• Start date
• End date (for fixed-term contracts)
• Termination clause.
PSYCHOLOGICAL CONTRACT
• A psychological contract, a conceptdeveloped in contemporary research by
organizational scholar Denise Rousseau.
• Psychological contracts are defined by the relationship between an
employer and an employee where there are unwritten mutual expectations
for each side
• It represents the mutual beliefs, perceptions, and informal obligations
between an employer and an employee.

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TYPES OF PSYCHOLOGICAL CONTRACTS
1. TRANSACTIONAL CONTRACTS
• Is characterized by a short-term employment relationship These are
distinguished by very specific types of exchanges, which include a narrow
range of behaviors for a specified period of time. In this type of
psychological contract
• low member commitment
• easy exit
• high turnover
• freedom to enter new contracts
• little learning and weak integration or identification
2. RELATIONAL CONTRACTS
• Relational contracts include conditions such as loyalty (employee and
employer committed to meeting each others needs) and sustainability (for
open engagement in the future).
• A relational contract is characterized by a long-term employment
relationship .
• Employees who labor under this type of contract tend to be willing to work
outside normal working hours, regardless of whether they are paid or not.

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3. BALANCED CONTRACTS/TEAMPLAYER PSYCHOLOGICAL
CONTRACT
• Including promises and obligations as interactive contracts, as
well as from those relationships.
• This type of contract has high tangibility of a transactional
psychological contract and the long-term time frame of a relational
psychological contract.
• It is likely to be found in a high-involvement team with high member
commitment.
4. TRANSITIONAL CONTRACTS
• Which are identified at a time when organizations change the terms of the
contract, in the responseof an overseen situation i.e. of crisis or
unforeseen short term emergencies
• This type of contract is characterized by a short-term time frame and low
tangibility.
• A high level of uncertainty and ambiguity, high turnover/termination
• Such a psychological contract is usually temporary, found in companies
undergoing radical organizational change such as a merger or takeover
and will spontaneously result in a more transactional or even relational
psychological contract.

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INDUCTION
• Induction & Orientation is the process forwelcoming newly recruited
employees and supporting them to adjust to their new roles and working
environments.
• Induction involves the planned introduction of the employee with the
organization.
• Induction is conducted on day one for a new joiner, usually through
PowerPoint presentation and videos sessions lasts a few hours or day.
• Orientation on the other hand, is a well designed program which aims at
reorganizing a new employee and making him accustomed to his
department, job role and work culture.
• An orientation session may vary from 1 day to several days, depending on
organizational and departmental requirement.
TOPICS COVERED IN AN INDUCTION PROGRAMME
• Company’s history, vision, mission and philosophy
• Company’s organization structure, departments and employee services
• Products and services of the company
• Employees benefits and services like clubs, credit society etc

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KEY ELEMENTS TO GOODINDUCTION PROGRAMME

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METHODS OF INDUCTION

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INVESTITURE VERSUS DIVERSTITURE
• Investiture
 Strategy that reinforces the uniquesness and viability of newcomer’s
individual characteristics.
 Preserves newcomer’s identity, suchas in recruiting upper management
• Divestitutre
Suppressing certain characteristics like attitudes and self-confidence and
replace it with others of value to organization
WHAT HAPPENS WITHOUT AN EFFECTIVE INDUCTION PROGRAMME
• Poorintegration into the team
• Low morale, particularly for he new employee
• Loss of productivity
• Failure to work to their highest potential
• Additional costfor recruitinga replacement
• Wasted time for the indicator
• Lowering of morale for the remainig staff
• Damage to the company’s reputation

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FORMAL ORIENTATION PROGRAM

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ORGANIZATIONAL SOCIALISATION
• The process bywhich employees learn an organization’s values, norms and
required behaviour
THREE PHASE MODEL OF ORGANIZATIONAL SOCIALISATION
Phase – I : Anticipatory Socialisation
• Occurs before an individual joins an organization, and involves information on
careers, occupations, professions and organizations
Phase – II : Encounter
• Employees learn what the organization is really like and reconcile unmet
expectations
Phase – III : Change and acqusition
• Requires employees to master tasks and roles and to adjust to work group
values and norms
BENEFITS OF SOCIALISATION
• Socialization provides initial orientation of new employ on the job. It
familiazies the new member with the organiazations culture, value, history
rules, regulations etc
• It helps new employee to play their rules efficiently and effectively towards
the achievement of organization objective
• Through socialization the organization can ensure that the rebellions type of
employee are either changes of employees are either changed or expelled

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PLACEMENT
• Placement is a process ofplacing the right personon the right job
PURPOSEOF PLACEMENT
• The objective of placement is to place the selected candidates in the jobs for
which they are most suited
BENEFITS OF PLACEMENT
• A proper placement reduces employee turnover, absenteeism and accident
rates and improves morale
SIGNIFICANCE OF PLACEMENT
• Improves employee morale
• Helps in reducing employee turnover
• Helps in reducing absenteesim
• It helps in reducing accident rates
• It avoids misfit b/w the candidate to work as per the predetermined
objectives of the organization

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PROCESS OF PLACEMENT

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PROBLEMS OF PLACEMENT
• Some problems might crop up while placing an employee on a job.
These problems could include:
• High employee expectations form the job.
• Expectation form the employers are more than the employee’s ability or
skills.
• Technological changes might result in mismatch between the job and
the employee.
• Change in the organizational structure may result in changes in the job.
These changes result in a misfit between the employee and the job.
• Most organizations put new recruits on probation for a given period of time
(say 6 months or 1 year) after which their services are confirmed after
successful completion of the probationary period.
• If the performance is not satisfactory, the organization may extend the
probation or ask the candidate to quit the job.
PROBATION
• Probation is a formal arrangement at the start of an appointment, whereby
new members of staff demonstrate their suitability for a particular job within
a set timescale.
• The probation period for your appointment is set out in your offer letter and
contract of employment.

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• During this time, you will be given an induction programme, guidance and
training and your performance will be monitored and reviewed.
PROMOTION
• According to E.B. Flippo, “ Promotion involves a change from one job t
another that is better in terms os stauts and responsibilities”
• According to Scottand Spreigal, “A promotion is the transfer an employee
to a job that pays more money or that enjoys some preferred status
TYPES OF PROMOTION
There are three types of promotion. They are :-
• Horizontal Promotions
Involves increase in responsibilities, pay and designation
• Vertical Promotion
Results in greater responsibility, prestige and pay together with change in
nature of job
• Dry Promotions
Causes increase in remuneration
PROMOTIONPRINCIPLES
 Every organization has to satisfy cleraly its policy regarding promotion
based on its corporatepolicy
 The principles are the following :-
 Systematic line of promotion channel should be incorporated
 It should provide equal opportunities for promotion in all
categories of job, departments and regions of an organization

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 It should contain clear cut norms and criteria for judging merit,
length of services, potentiality etc
 Appropriate authority should be appointed with the task of
giving promotions
TRANSFER
 Defined as the mere changes in job, place or work without affecting pay,
position or responsibilities
PURPOSEOF TRANFER
 To retain employees
 To recognise the achievement
 Fill up vacancies
TYPES OF TRANSFERS
 Replacement Transfer
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 oldemployee
from heavy pressure of work
 Versatality Tranfer
Such transfers are made to increase versatality of the employees in more
than one job and department. This type of transfer is also referred to as ‘Job
Rotation’. It is used to train employees
 Remedial Transfer
As the name suggest, these are made to rectify the situatuion caused by
faulty selection and placement procedures. Such transfers are made to rectify
mistakes in placement and recruitments

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 Production Transfer
Such transfer 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
 Shift Tranfer
TRANSFER PRINCIPLES
 Organization should clearly specify their policy regading transfer
 Systematic tranfer policy should contain the following items :
 Specification of circumstances under which an employee will
be transfered in the case of company initiated transfer
 Reasons which will be considered for personal transfers, their
order of priority etc
 Reasons for mutual transfer of employees
 Specification of basis for transfer like job analysis, merit and
length of the service
RETRAINING
 Retraining is given to long term employees of the organization to avoid the
chances of obsolescencein terms of job requirements.
 Retraining can be required due to factors like technologies changes or with a
view to create a versatile work force that is capable of doing more than one
jobs.
 The employees who are called back to work after lay off can also be given
retraining.

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 It is also used to widen the knowledge of the existing employees.
 Re-training (repetition of a training conducted earlier) shall also be
conducted for an employee, when the employee is rated as ‘not qualified’ for
a skill or knowledge, as determined based on the assessment of answers in
the training questionnaire of the employee.
OUTPLACEMENT
 The process ofa company assisting recently terminated employees with
searching for other employment opportunities.
 Some of these companies work with particular outplacement agencies that
locate news jobs for the laid off employees.
 Outplacement services are typically only provided for a certain amount of
time and are not required to be offered by the company.
 Outplacements services are paid for by the downsizing company.
OUTPLACEMENT TECHNIQUES
 Interview techniques
 Resume development
 Learning to market yourself
 Job searching techniques
 Elevator speechwriting
 Creating a cover letter

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HR OUTSOURCING
 Hr outsourcing is basically the allotment of specific HR activities to a more
specialized third party service provider
 Done in order for business owners to stay in routine to their more important
goal of growing their business and cutting down the cost
REASONS COMPANIES OUTSOURCEHR
 Fnction difficult to manage or out of control
 Improve companies focus
 Reduce and control operating costs
 Free resources for other purposes
 Gain access to world class capabilities
 Resources not available internally
 Accelerate reengineering benefits
 Reduce time to market
 Share risks
 Take advantage of offshore capabilities