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UNIT: 01 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

INTRODUCTION
Human resources management deals with the management of people, in an organisation It is
assessed and accepted that human resources are the main component of an organisation and the
success or failure of the organisation depends on how effectively this component is managed
The organisation's objectives and strategies are achieved, if the personnel policies and
procedures are well connected and mainly contribute in that direction. The organisation excels
other competitors, if the organisation climate, managerial behaviour and corporate culture have
an impact on the organisation activities
The culture and organisation value have to be reinforced This needs the continuous on the part
of human component of the organisation from top to bottom. That is, the concept of
"Integration" involving all the human force of the organisation to work together with a sense
of common purpose, has to be infused to the organisation. These are the more on which Human
Resource Management (HRM) concept is developed HRM is a strategic activity which
acquires, motivates, develops and manages the human resources of an organisation. It is an
attempt of special nature to develop programmes, policies and activities to promote the
satisfaction of both individual and organisational needs, goals and objectives.
Today, management techniques in corporate enterprises are changing very fast. It is more HRM
HRD (Human Resources Development) manager has to actuate every human being that works
in the organisation. His job is to create a team spirit in the minds of workers and make them
work hard for attaining the objectives of the corporate enterprise. Before be actuates his
workers, be should be able to self actuate and work with his group of works "Actuating here
refers to "Causing action" or "Performing." "Actuating is getting all the members of the group
to work and to strive to achieve objectives of the enterprise (and of the individual
members),because the members want to achieve these objectives (George R. Tary)
CONCEPT OF HRM
HRM is concerned with the human beings in an organization. ―The management of man‖.
Though it is a very important and challenging job because of the dynamic nature of the
employees .As no two people are similar in nature – in every aspect of mental abilities,
tacticians, sentiments, and behaviors; they differ widely not only individually but also as a
group and are subjected to many varied influences. People are responsive, they feel, think and
act therefore they cannot be handled like a machine or shifted and altered like template in a
room layout. They therefore need a tactful handing by management personnel. HRM is the
process of managing people of an organization with a human approach. Human resources
approach to manpower enables the manager to view the people as an important resource. It is
the approach through which organization can utilize the manpower not only for the benefits of
the organization but for the growth, development and self satisfaction of the concerned people.
Thus, HRM is a system that focuses on human resources development on one hand and
effective management of people on the other hand so that people will enjoy human dignity in
their employment.

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Meaning
People are the main resources of all productive efforts in every organisation. A detailed study
of people is the main function of HRM. HRM means "the process of accomplishing
organisational objectives by acquiring, retaining, terminating, developing and properly using
the human resources in the organisation." While acquiring the human resources, people with
talent, skill and motivation should be recruited. HRM also considers that there should not be
high manpower turnover.
This means human resources adopted to work should remain in the organisation for fairly a
long time. Those employees who are unruly and do not follow the rules and procedures should
be made to retire from service. Developing involves educating, training and make the human
resources to accept any type of current or future work. HRM encompasses every activity
relating to human resources in an organisation.
Definition
according to this definition, HR administration is concerned with the managerial (planning.
organising, directing and controlling) and operative (procurement, development, maintenance
and utilisation) functions, with a view to attaining the organisational goals economically and
effectively and meeting the individual and social goals.
According to Dale Yoder ―the management of human resource is viewed as a system in which
participants seeks to attain both individual and group goals.
According to Flippo ―HRM is the planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance and reproduction of
human resources to the end that individual organizational and societal objectives are
accomplished
"Human resource planning is a strategy for the acquisition, utilization, improvement and
preservation of an enterprise's human resources" (Stainer, G). HRP is a plan of action
formulated to meet the future human resources needs.

These definitions throw light on one function or the other of the subject matter "HR
Management." If all these definitions are summarised we understand that HRM deals with the
following issues:
• Effective control and use of manpower.
• Attaining individual and group goals through organised human resources
• Working relationships between the managers and managed.
• Discussing managerial and operative functions to achieve the organisational goals.
• Selection, training and placing human resources in appropriate positions in the
organisation to increase the productivity through optimisation of resources.
Today management of personnel involves, analysis of dynamic multiple and often
conflicting forces. A business enterprise is an economic system runs for the benefit of

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society. Mapping the business enterprise in this pattern, a system approach is developed for
personnel management considering these components. The components of the system are:
(1) Inputs, (2) Process (3) Output and (4) Management as the regulator of the input, process
and output. The following diagram describes these four basic components.
Nature of HRM
It includes:
1. HRM is based on certain principles and policies which helps the organization to achieve
its objectives.
2. HRM is a pervasive function – It suggest that HRM is not associated to a single
department, instead it is a broader function and is spread throughout the organisation, which
manages all type of employees/people from lower level to top level departments of the
organisation.
3. HRM is people oriented – The main core or concern for HRM is the People or human
resource. Human resource management works with and for people. It acts as a bridge which
brings people and organisation together to achieve individual and organisational goals.
4. HRM is continuous activity – As HRM needs to continuously train, develop, or replace
to meet the growing level of competition and changes in the market. Hence, it is a
continuous activity.
5. The HRM is a part of management function. Issues like hiring, training, development,
compensation; motivation, communication, and administration etc of employees are taken
care by Human resource management.
6. The main aim of HRM is optimum utilization of employees.
Importance
1. Increasing productivity: Increasing productivity also means that the cost of operations
will be minimized and profit increases. HRM ensures this, by recruiting quality people to
work and motivate them to engage and have a good career.
2. Motivates employees to achieve organisational goals: HRM activities utilize human
resources at work to their best possible capacity, for a longer period, by providing necessary
monetary and non-monetary facilities. These activities focus on achieving organisational
goals.
3. Employee recognition: HRM policies focus on timely appraisal of employees and
recognize the quality of workers with better compensation and rewards and train non-
performing employees to better their quality of work or remove them.
4. Developing organisational identity and team spirit: Jobs for each individual and team
will be designed (as per the requirements of the organisation) on the basis of team work
and every team member is expected to contribute positively for the job. Deep involvement
in the job by individuals, develops the organisational ability in them.

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5. Balancing demand and supply of human resources: Variation in demand for and
supply of human resources will be existing as business progresses. HRM tries to balance
demand and supply of HR resources in an organisation.
6. Addressing change management issues: Human resources at work, many a time,
agitate to adjust to the changes in work process. HR managers strive hard to motivate the
employees to adjust to the changed situation through training and incentives.
7. Maintaining quality of work life (QWL): QWL refers to the relationship that exists
between workers, their bosses and total work environment. This is facilitated by HRM
Human Resource Management by maintaining work autonomy, work freedom, job
recognition, belongingness, rewards etc. Guaranteeing sustainable business growth,
resolving conflicts, developing corporate image are other important aspects of HRM.
Objectives of HRM
HRM has several objectives. Its main objective is to make the organisation 'people-oriented
and to have number of "people programmes." The objectives are as follows:
1. To make the organisation people to acquire power to perform the different types of work
that may come in their way at present or in future.
2. To develop the inner hidden talent of individual workers which may be used for the
development of the organisation.
3. To develop team work among the workers and an organisation culture which helps the
organisation to grow and make the individual workers to be dynamic. Human resources
should become the pride possession of the organisation.
4. Generally, HRM provides opportunity to employees to grow and strengthen management
and professional teams in all the areas of the organisation.
5. Another objective is to develop employee capabilities according to the needs of the
organisation, and according to the areas of the organisation.
6. To train new employees to the level required by the organisation to perform their task
effectively.
7. The existing employees will also be trained to take up more responsibilities.
8. The main objective of HRM is training and development of employees of an
organisation.
9. To increase co-operation and trust and to involve employees actively in the company's
affairs:
10. Another objective of HRM is to adopt problem-solving techniques of the problems
relating to disciplinary cases and grievances. Whether the organisation has a trade union or
not, the management will have a bounden duty to maintain healthy economical, social and
psychological relationship. HRM's objective is to take care of human relationship.
11. Other subsidiary objectives are:

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(a) Manpower planning

(b) Recruitment
(c) Promotion
(d) Career planning
(e) Job and salary administration
(f) Training, counselling, performance feedback and organisational development.
(g) Industrial relations and welfare of workers.
Functions of HRM
We have already defined HRM and suggested that it is a management function ie it is based
on what managers do and the functions performed by managers are common to all
organizations. For the convenience of study, the function performed by the resource
management can broadly be classified into two categories, ie Managerial functions and
Operative functions
1. Managerial Functions: It includes Planning, Organising, Staffing, Directing and
controlling (POSDC)
a. Planning: Planning is to plan for future or predetermine the course of actions to be taken
in future. It is a process of identifying the organisational goals and formulation of policies
and programmes for achieving those goals.
b. Organising: Organising is a process by which the structure and allocation of jobs are
determined. Thus organising involves giving each employee a specific task establishing
departments, delegating authority to subordinates, establishing channels of authority and
communication, coordinating the work of subordinates, and so on.
c. Staffing: This is a process by which managers select, train, promote and remove their
employees This involves deciding what type of people should be hired, recruiting, selecting
employees, setting the performance standard, compensation of employees, evaluation of
performance of employees, counseling employees, training and developing employees.
d. Directing/Leading: Directing is the process of initiating or activating group efforts to
achieve the desired organizational goals, which includes activities like getting subordinates
to get the job done, maintaining their morale, motivating subordinates etc, for achieving
the organizational goals.
e. Controlling: It is the process of setting the standards for performance, measuring the
actual performance of the employees and then comparing the actual performance with the
standards and there by taking corrective actions as needed.
2. Operative Functions: The Management functions as suggested were common to all the
mangers where as the Operative, also called as service functions are relevant to specific
department only. These functions differ from department to department depending upon the
nature of the department. Viewed from this standpoint, the operative functions of HRM

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relate to ensuring right people for right jobs at right times. These functions include
procurement, development, compensation, and maintenance functions of HRM. A brief
description of these follows:
a. Procurement: It involves procuring the right kind of people in the right or rather
appropriate number to be placed in the organisation. It consists of activities such as
manpower planning, recruitment, selection placement and induction or orientation of new
employees. b. Development: It includes activities meant to improve the knowledge, skills
aptitudes and values of employees so as to enable them to perform their jobs in a better
manner in future. It comprises of training to employees, executive training to develop
managers, organisation development to strike a better fit between organisational
climate/culture and employees.
c. Compensation: Compensation function involves determination of wages and salaries
which should match with the contribution made by employees towards achieving
organisational goals. In other words, this function ensures equitable and fair remuneration
for employees in the organisation. It consists of activities such as job evaluation, wage and
salary administration, bonus, incentives, etc. d. Maintenance: It is concerned with retaining
or protecting and promoting employees while at work. For this purpose several benefits
such as housing, medical, educational, transport facilities, etc. are provided to the
employees. Several other social security measures such as provident fund, pension, gratuity,
group insurance, etc. are also being given to the employees

Difference between Personnel Management and HRM is shown in the following Table
Comparing Variables personnel Management Human Resource
(PM) Management (HRM)

1. Meaning PM refers to the HRM focuses development

management of employees of the employee and
at work as a whole, which policies are framed to
involves recruitment, develop individual
training, development, employee as an asset of the
control etc., and the organisation and are tried to
policies are formulated for be preserved.
the firm as a whole.

PM has two functions viz., The function of HRM is to

2. Functions (i) Operative function perform activities such as
which includes recruitment and selection,
recruitment, training, training and development,
development, employee services, salaries,
compensation, and incentives, health and
jobevaluation, employee safety, education, working
welfare utilization, conditions and appraisal
maintenance and collective and assessment related to
bargaining (ii) Managerial individual employees.

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functions, which include,

planning, organising,
directing. motivating,
controlling,
communicating and co-
ordinating.

PM focuses on whole focus is on individual

3. Focus organisation. employee

4Treatment PM treats workers as tools. Treat employees as an asset

of the organisation

5. Decision-making Slow Comparatively fast

6.Distribution of initiatives Piece-meal Integrated

7. Job design Designed to individual Designed to a group or

workers team of workers.

8 Salary & Wage payments Based on job evaluation. Based on individual

performance appraisal.

9 Negotiation Collective bargaining Employees have individual

union leader bargains with contacts with the
top management management.

The Role of a HR Manager

Personnel Role –
(a) Advisory advising management on effective use of human resources
Advisory.
(b) Manpower planning Recruitment, Selection, etc.
(c) Training and development of line men.
(d) Measurement and assessment of Individual and group behaviour.
Welfare Role –
(a) Research in Personnel and organisational problems
(b) Managing services canteens, grain shops, transport co-operatives, crèches, etc.
( c) Group Dynamics- Group counselling. motivation, leader- ship, communication,
etc.

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Administrative Role Legal Role

(a) Time keeping
(b) Salary & Wage administration Incentives
(c) Maintenance of records
(D) Human Engineering- man-machine relationship
Fire-fighting
(a) Grievance Human Engineering- man-machine relationship handling
(b) Settlement of disputes
(c) Handling disciplinary actions
(d) Collective bargaining
(e) Joint Consultation
QUALITIES OF HR MANAGER
(1) a mind with a capacity for creative thinking, for analysing situations and reasoning
objectively;
(2) he should know problem-solving techniques and have an ability to inspire, motivate
and direct employees;
(3) a devoted sense of vocation and faith in humanity:
(4) capacity for leadership, a sense of social responsibility and a standard of social
justice:
(5) personal integrity so that employees may respose confidence in him: (vi) capacity for
persuasion, coupled with patience and tolerance;
(6) a friendly, approachable nature, which is tactful and sympathetic, and a pleasing
personality, a well-groomed appearance, sophisticated taste and habits, and capable of
working with and through other people;
(7) initiative and decision-making ability.
HR Manager Tomorrow
Future manager knows more about people at work, work environment internal as well as
external and total environment. He will have global perception, studies and understands more
about social sciences and other disciplines in humanities. He should be capable of integrating
information technology with the human resources available to him. He should be sensitive and
empathetic to the people, events and objects around him. He should have patience and
tolerance. He should be a good listener. He should be capable of handling individual employee
to develop in him an attitude to work, behaviour, value system, need levels and technical skill
required by the organisation.
Tomorrow's HR managers are Human Resources Development (HRD) managers. They should
know about the development of individual human beings. Issues in today's organisation are

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individual oriented. That is why the concept of PM has changed to HRM. In HRM, individual
is recognised and developed according to the needs of the organisation.
In the modern era, the personnel manager typically performs a variety roles, such as the role
the modern counsellor, the mediator, company spokesman, a problem-solver and a change
agent. He performs many miscellaneous roles in accordance with the needs of a situation. He
is now called HRD manager.
New Challenges
(1) The Conscience role is that of a humanitarian who reminds the management of its moral
and ethical obligations to its employees.
(ii) The personnel or HR manager plays the role of a counsellor to whom the employees
frequently go for consultation and with whom they discuss their marital, health, mental,
physical and career problems.
(iii) As a mediator, he plays the role of a peace-maker, offering to settle the disputes that may
arise among individuals or groups. He acts as a liaison and communicating link between an
individual and a group and between labour and management.
(iv) The personnel or HR manager has always been a frequent spokesman for or representative
of the company because he has a better overall picture of his company's operations, since he
deals intimately with many key organisational activities and functions.
(v) The personnel or HR manager also acts as a problem-solver with respect to the issues that
involve human resources management and overall long range organisational planning.
(vi) He works as a change agent within the organisation because he is best suited to Introduce
and implement major institutional changes. He takes initiative for installing organisational
development programmes and convinces the top management of their need. It is he who alerts
the top management regarding managerial obsolescence in his organisation.
(vil) He helps line managers learn to detect and solve their problems.
(vili) The personnel manager plays many other roles as well. Any matter which needs
someone's attention and which nobody wants to deal with is often handled by the personnel
department. Such activities may be peripheral but important and crucial to the efficient and
effective operation of an organisation.
Recent Trends in HRM
Diverse Workforce: One of the major changes is the change in the workforce. Most of the
organisations have a diverse workforce with employees from different countries, agt, regions,
Racial & Ethnical Groups, Older Workers, Gender, Education, Religions & Culture, Persons
with Disabilities, Immigrants. To ensure that talented people can contribute at the highest
possible level, the company must insists on a workplace that is free of discrimination and
harassment and full of opportunity for all people.
Technology: The rate of change in technology over the last few years in particular has been
astounding. Technology is transforming the way people think, live and work Technology is

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getting more advanced each day, and HR technology has been one of the areas leading the pace
Manual systems are fast being replaced by programmes that allow HR to not just handle
employees leave and payroll, but also to track performance and plan HR strategy. It increases
the speed, makes processes easier to monitor, and allows easy reporting
Social Media: Social media, once considered play time for the younger generation, is now key
to employee engagement and business success. HR can also exploit this trend to take its internal
communication strategy to the next level, and provide employees the opportunity to share
feedback and ideas in real time on internal blogs and forums. Social media is often the first
place job seekers look for employment opportunities and HR can use this to their benefit by
leveraging social media platforms, such as Linked in, to uncover a large pool of talent for new
hires
Innovative Work Practices: Employees have increasing expectations for flexible work
arrangements that support their individual circumstances, and we need to make this work for
both employers and employees. Workers who choose to work remotely, workers who want to
use their own technology when and where they want; and managing ongoing technological
advances, the challenge for HR will be to find the right balance between the new and the
traditional,(and between) the proposed and the feasible, so that it can still bring innovation to
its practice and support the diverse needs of the business.
Managing Five Generations at Work: Organisations these days are characterised by a
multiple generational workforce working together in the form of various crucial relationships,
as colleagues, supervisors, and subordinates; clients etc. They are the Traditionalists (born
before 1946), Baby Boomers (1946-1965), Generation X (1996-1976), Generation Y (1977-
1994), and Generation Z (1995-2012). These generational differences have positive and
negative impact on organisations.

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Unit 2 - HUMAN RESOURCE PLANNING, RECRUITMENT AND SELECTION

MEANING AND DEFINITIONS
Manpower Planning also called as Human Resource Planning suggest of putting right number
of people, right kind of people at the right place, at right time, and doing the right things for
which they are selected and suited for the achievement of goals of the organization. Human
Resource Planning has got an important place in the arena of industrialization.
As according to Geisler, ―Manpower planning or HR Planning is the process which includes
forecasting, developing and controlling by which a organization ensures that it has-
• The right number of people,
• The right kind of people,
• At the right places
• At the right time, doing work for which they are economically most useful
Manpower planning as defined by stainer is the ―strategy for the requisition, utilization,
improvement and preservation of an enterprise‘s human resource. It relates to establishing job
specifications or the quantitative requirements of jobs determining the number of personnel
required and developing sources of manpower.‖ Thus Manpower planning is a process
determining the requirement of right number and right kind of human force at right place and
right time
Importance of Manpower Planning
Human Resource Planning (HRP) is a needed for following reasons:
• Ensure optimum utilization of manpower and capitalize on the strength of HR. The
organization can have a reservoir of talent at any point of time.
• To forecast future requirements and helps in controlling the availability of labor. Advance
planning will help in getting continuous supply of people with desired skills who can handle
challenging jobs easily.
• To be ready to face the technological, social, economic and political challenges
• To determine recruitment/induction levels. With the proper manpower planning it can decide
what level of induction is required by the employees
• To determine training and development levels needs of the employees
• To know the cost of manpower if new project is being taken up.
• To assist in productivity bargaining.
• To assess in accommodation requirements which includes the physical facilities such as
canteen, school, medical help, etc., can also be planned in advance.

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• HRP is also responsible for motivating employee so as to reduce labour turn over
Need of Manpower Planning/HRP
1. Shortages and surplus of employees can be identified so that quick action can be taken
wherever required.
2. Manpower Planning becomes the base for all the recruitment and selection programmes..
3. It helps to reduce the labour cost by keeping a check on excess staff in the firm thereby
controlling overstaffing.
4. It also helps to identify the available talents in a firm so that training programmes can be
framed as accordingly to develop those talents.
5. It helps in growth and diversification of business. Through manpower planning, human
resources can be readily available and they can be utilized in best manner.
6. It helps the organization to understand the importance of manpower management which
finally helps in the stability of a concern
• For employee replacement of death, retirement and transfer
• To provide skilled workers to increase productivity
• To optimise the organisational resources
• To face the problem of high labour turnover
• To meet the requirement of expansion and diversification
• To meet the challenges of changing technology
• To balance surplus-deficit-manpower.
Benefits of HRP
• Improves productivity
• Reduces excessive labour turnover
• Absenteeism is minimised
• Optimum utilisation of human resources in the organisation
Enhances employee morale.
Disadvantages of Faulty Use
• Disruption in flow of work
• Less job satisfaction
• High cost of production
• Constant headache for management personnel.

Factors that influence HR plan are as follows:

(a) External factors
• Local population density at various distances from the work place

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• Surrounding unemployment level which is having impact on the operations of the

organisation
• Competition level for HR supply, i.e., the need and requirement of manpower for other
surrounding organisation
• Technical and general output from the education system
• Transport and communication system available in the work place
• Migration (in and out) pattern.
(b) Internal factors (within the organisation)
• Cultural factors, social systems, customs that influence work culture of the
organisation
• Government policies regarding training, in vocations, profession and technical
aspects
• Mobility of technical and professional graduates
• Problems of women and youths that influence planning.
Process of HRP
1 Analyzing the current manpower inventory-Before a manager makes forecast of future
manpower, the current manpower status has to be analyzed. For this the following things have
to be noted-
• Type of organization
• Number of departments
• Number and quantity of such departments
• Employees in these work units
2. Making future manpower forecasts- Once the factors affecting the future manpower
forecasts are known, planning can be done for the future manpower requirements in several
work units. The Manpower forecasting techniques commonly employed by the organizations
are as follows:
i. Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.
ii. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past
trends), indexation (using base year as basis), and statistical analysis (central tendency
measure).
iii. Work Load Analysis: It is dependent upon the nature of work load in a department, in a
branch or in a division.
iv. Work Force Analysis: Whenever production and time period has to be analyzed, due
allowances have to be made for getting net manpower requirements.
v. Other methods: Several Mathematical models, with the aid of computers are used to
forecast manpower needs, like budget and planning analysis, regression, new venture analysis.

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3. Developing employment programmes- Once the current inventory is compared with future
forecasts, the employment programmes can be framed and developed accordingly, which will
include recruitment, selection procedures and placement plans.
4. Design training programmes- These will be based upon extent of diversification,
expansion plans, development programmes etc. Training programmes depend upon the extent
of improvement in technology and advancement to take place. It is also done to improve upon
the skills, capabilities, knowledge of the workers
HR Forecasting
HR forecasting is a process of projecting the need for HR (demand) resources and telling how
of an organisation, considering its policies and working environment. Such need is met (supply)
for future operations.
HR demand forecasting - Meaning
Forecasting HR demand, a component of HR forecasting is a process of estimating or
projecting the probable number of human resources required to carry on future activities of the
organisation at an optimal level. Potential HR requirement is estimated on the basis of number
of factors.
Factors that determine future HR demand
(A) External factors:
1. Employment trend: This speaks of the level of demand (whether overdemand or short of
demand) and supply (oversupply or short of supply).
2. Competition: Competition from domestic and foreign competitors cause fluctuation in
business and this creates demand for workforce.
3. Legislations in force: Various existing central and state legislations and that may be enacted
in future also affect the staff position in organisations. This also create demand.
4. Changes in information technology: Information technology changes very fast, and it will
continuously impact on the level of workforce in the organisation. Changes in manufacturing
technology and IT create demand.
5. Economic condition: Economic climate of the country decides the level of demand to be
maintained in the organisation.
6. Political factors: Change in political environment, occurring after the expiry of the term of
ruling party or due to other reasons will affect the work force situations in organisations and
this creates demand.
7. Social factors: Factors such as change in taste, fashion and preferences of consumers,
religious and ethnic factors can also impact the employee level in organisations and create
demand.

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8. Natural calamities: Floods, droughts, earthquake etc., will disrupt business in organisations.
This will create demand for new type of employees. Other factors such as war, social clashes
can create jobs in organisations.
B) Internal factors:
Internal factors that contribute for estimating future supply are based on the happenings and
related to employee behaviour and attitude towards work. Following indicators cause vacancies
in organisations.
Work sharing is a tactic adopted by employer, where existing employees share the jobs like one
job for two employees. Each employee turns half job. Though the retrenchment may not take
place, it tells on productivity.
Layoffs: Two types of layoff takes place: (i) temporary and (ii) permanent closure.
Temporary layoffs to take place due to shortage of raw material, labour problems, economic
slowdown, machinery or power failure. Whereas permanent closure takes place on liquidation
of business.
Employee turnover: This happens because employees leave the company for their personal
reasons. Attrition is a major disturbing factor. Because talented people leave the company at
critical times. This causes fall in vacancy, which has to be filled in future.
Retirements: Two types of retirement exist. (i) Voluntary and (ii) Compulsory.
Voluntary retirement (VRS) happens when employees themselves take a decision to leave the
company on their own and get some handsome monetary benefits. It is popularly called
"Golden Handshake".
Compulsory retirement (Retrenchment) takes place when employee attitude towards work is
negative, get any extra monetary or non-monetary benefits except the normal retirement
benefits.
Leave without pay: Employees may abstain from work in the company for a longer period,
without pay. But they retain their position in the company. Such situations also cause temporary
vacancies that are to be supplied with.
Other factors: These include (i) Organisation's capacity to fill the vacancies, (ii) Variations in
productivity due to unknown factors, employee promotion or degrading, transfers, deaths of
employees etc. These situations also cause vacancies to be filled in future
HR Demand forecasting techniques
Forecasting methods range from a simple supervisor or manager guess to a rigorous and
complex computer simulator. Several techniques are adapted to forecast HR demand. Some of
the common methods are briefly analysed.
1. Managerial judgement: This is a common and simple technique adopted in every company,
irrespective of size. As per this technique, HR manager and top management meet and discuss
about future requirement of manpower and estimate a figure, which will be the potential
demand for future activities.

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Two types, viz., "Top down" and "Bottom up" methods are followed in this type.
Under "Top-down" approach, top management decides the quantity and quality of human
resources required for various departments of the organisation.
In "Bottom-up" method, every departmental head of the organisation estimates his/her HR
requirement and submits to the top management. Management, compiling the data of all
departments, conducts a meeting with HR manager and decides the future HR requirement.
Rule of thumb, another dimension of managerial judgement is that management relies on
general guidelines applied to a specified situation within the organisation.
2. Work-study technique: This can be adopted when organisation is able to measure the work,
which facilitates the calculation of the length of operation and the number of required
employees. As per this technique, first, total production and activities for future period is
estimated. The estimated data will be converted into work-load and required number of man-
hours. This facilitates the computation of each employee's contribution in producing each unit
of goods produced and of total production. An illustration will better explain the process of
computation.
A manufacturing unit has the following production data.
(a) Estimated annual production 2,00,000 units.
(b) Standard man-hour required for each unit = 2 hours.
(c) Manned man-hour required for the year (axb) 4,00,000 hrs.
(d) Planned and standard annual contribution per employee in terms of man-hour = 2000 hrs.
(e) No. of employees required (c/d) = 4,00,000+2000= 200.
While computing the required number of employees, factors such as absenteeism rate of
employee turn over, resignations, deaths, strikes, power failure and such other interruptions in
production process have to be taken into account.
3. Ratio-trend analysis: This is a simple and easy technique that can be adopted on the basis of
past r ratio. Ratio is a concept which establishes relationship between two variables. In this
technique, for example, relationship can be established between organizational sales and
number of workers that are required to forecast future ratios. Observe the following example
to understand this technique.
Estimated production for coming year = 5,00,000 units
Ratio-trend of past year 1:5000
Therefore, required employees for next year = 5,00,000+ 5,000 = 500
4. Mathematical and Statistical (Econometrics) techniques: There are different models which
can provided employee estimation for future year. Amongst statistical techniques, co-relation,
regression equations, trend analysis are the popular ones.

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5.Delpi technique: This technique is named after the ancient Greek Oracle at the city of Delphi.
This is one of the important techniques adapted to estimate the employee number for the
ensuring year. As per this technique, personnel need is estimated by a group of HR experts.
These experts will be provided with data required for estimation. HR managers, who serve as
intermediaries (between experts and top management or employees) provide data to experts.
6. Work-study technique: This method is adopted, when the organisation can measure the work
to calculate the length of operations and the amount of labour required.
Experts, analysing the data send feed back to HR managers. Based on feed back, further survey
is conducted by HR managers and the data are sent to experts. Experts then send summaries of
analysis to HR managers. This repeated process continues till such time the experts' opinions
agree with the report of HR managers and the final figure of employee estimate is arrived at.
7. Markov technique: This technique was developed by Russian mathematician Andrei
Andreyevich Markov. This is a transition probability matrix developed to determine the
probabilities of job incumbents remaining in their jobs for the forecasting period. This matrix
is profusely used in manpower planning and forecasting. It is expected that by implementing
Markov model, competitiveness of the organization increases.
Supply Forecasting
After determining or forecasting future demand for human resources, has to be made regarding
the supply to meet the estimated demand. HR supply forecasting is essential to decide the
characteristics of hiring sources - Internal and external in order to establish whether future HR
supply is sufficient to match future estimated HR demand. The purpose of HR supply
forecasting is to know the quantity and quality of existing and potential human resources
available from both internal and external resources.
HR Supply Forecasting - Meaning
HR supply forecasting is a process of procuring future personnel from different sources, to
meet the estimated HR demand for future operations. Internal and external sources are explored
to avail the estimated human resources for future operations.
(A) Internal factors affecting HR supply
Many internal factors will have impact on estimated future supply of workforce.
1. Existing staff level in the organisation: In an organisation surplus staff will he available in
some departments and shortage of hands in others. Surplus hands in departments may be
transferred to departments, where there is shortage. These transferees have to be trained in
required skills and activities of the departments to which they are transferred and it should take
place, before they are transferred.
2. Organizational capabilities: This means that whether the organisation is sound enough to
provide the workforce as per the estimate. This focuses on budget level. Budget contsraint may
come in the way of providing (supplying) additional work force.

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3. Productivity: Productivity is a concept which tells about the producing power of an

individual. This measures the rate of productivity and productivity changes of the existing
employees.
If productivity is low, more number of employees have to be deployed to complete s specific
task. On the other, if the productivity is high, the number of employees to be drafted for a task
will be less and less supply is required. Thus, the rate of productivity of employees decides the
quantity of supply of employees.
4. Variation in employee position: This occurs due to promotion, degrading and transfer of
employees. The rate of employee turnover also impacts future supply. Other aspects which
impact future supply are termination, retirement, death, temporary layoff etc.
Besides these factors, other macro factors such as literacy and population rate of the country,
supply and demand of jobs, technological development, type of industry, expected growth level
and rate of growth of the industry to which the company belongs and compensation system in
force in the organisation, also affect HR supply.
(B) External factors, impacting future supply of HR
These factors include competition for talent, compensation pattern in similar companies,
technology development pattern, public policy, legislations of governments, job situation in
employment market, forecasts about economic growth of the country, immigration and
emigration
Supply forecasting techniques
Several techniques/methods are adopted to forecast the future supply. Popular amongst them
are Trend analysis, Competency model, Replacement Chart, Staffing model, Succession
planning, Flow modeling (otherwise called Morkov analysis). These are very briefly analysed.
(1) Trend analysis: This method is the simplest method and considers past trends and ratios of
employee movement. It will be assumed that the movement will be stable. HR manager collects
past data of trends and ratios of employee movement, analyses the data and predicts the quantity
of future supply.
An example can better explain this technique. Assume that in an organisation, average
resignation is 4%, average staff retirement is 5% and average retrenchment is 3%. Applying
simple trend analysis, assuming an average reduction in internal HR supply of 12%(4% + 5%
+ 3%), HR supply forecast can be made.
(ii) Competency model: This model refers to behavioural aspects considered in terms of
knowledge, skill and attitude required for successful and high performance in a given job.
Competencies are aligned with an organisation's vision, mission and strategy with the objective
of focusing on ideal workforce.
The matching process takes place to match the skill or competencies required with the
competencies available in the organisation.

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(ii) Replacement chart: This is a chart that lists the critical job roles in a company along with
current and future job vacancies, in order to visualize key job roles. This is used profusely in
succession planning.
This tool of estimating future supply maps the positions alongside information such as potential
replacements, age, skills, experience, gender and promotion potential.
.(iv) Staffing table: This table gives a graphical view of all internal organizational jobs and
current number of employees at each job. This also presents future employment requirements,
which can be derived from demand forecasts. The information provided by this table is useful
in evaluating staffing levels by departments, branch or project.

Succession planning
"Succession planning is a strategy for passing on leadership roles - often the ownership of a
company to an employee or group of employees. Also known as "replacement planning", it
ensures that business continue to run smoothly after a company's most important people move
on to new opportunities, retire, or pass away." Investopedia. Normally, the priority will be given
to in-house talent to fill up key positions. Because it
saves cost and assumes that internal people can well motivate the employees. Thus, SP focuses
on retaining and developing internal people to fill key leadership positions in the organisation.
Advantages of SP
• Ensures quick filling by key positions without creating vacuum in such positions.
• In case of promoting people to higher vacancies in the organisation, cost of selecting
from outside will be saved. Internal competent people will feel happy as their talent is
recognised and it results in increased engagement.
• When external talent is inducted to key positions, organisation gets additional expertise
to run the business. Quality may improve. But existing talent in the organisation will
be frustrated.
• As organisation expands, it will ensure that hands are available to hold new key
positions.
• In house talent will be recognised to hold key positions in the organisation, as and when
they fall vacant.
• It is a cost saving process. Avoids additional expenditure on recruiting/selecting from
external sources.
• Exhibits more identity with the organisation and high degree of engagement in work.
This means that prospective leaders expected to be more absorbed in their work and
assume greater responsibility.
• SP serves as a tool to engage the leadership in supporting the development of high-
• potential leaders. This means that top management focus on eligible and potential
people in the organisation and prepare them to accept existing key positions, when they
fall vacant or may be created by future expansion or by taking over other business.

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• Another feature is that SP prompts organisations to build data base that can be used to
make better staffing decisions for key posts which occur in future.
• It facilitates the improvement of employee commitment and retain talented people to
hold key positions in future.
JOB ANALYSIS
Job-The Concept
Job is an activity or group of activities/tasks to be performed by an individual or by an
employee in an organization. It is the performance of an employee in an exchange for
consideration (Money or service). A job consists of duties, responsibilities and performing
elements (tasks). The task is generally specific in nature and is properly defined. The task
should be capable of accompanying an activity and can be quantified, measured and rated. A
job is identified with a role, which includes the physical and social aspects of a work
environment. Individuals or employees often identify themselves with the roles they have to
play in the organization such as Manager, Engineer, Foreman, Accountant and they are
motivated from the uniqueness or usefulness of the assigned duty (Job). Thus, job is a duty to
be performed for money or for any other consideration. It involves knowledge required to
perform the assigned job, has capacity to solve problems and seriously stick to accountability.
The term 'Job' is "a group of positions that are similar to kind and level of work". It is a group
of related tasks / positions of the same level and kind.
Meaning
job analysis a statement prepared to analyze the "Process determining, by observation and
study, and reporting pertinent information relating to the nature of a specific job. It is the
determination of the tasks which comprise the job of the skills, knowledge and abilities and
responsibilities required of the worker of a successful performance and which differentiate one
job from all others". (US Department of Labour).
Job' analysis includes the aspects such as the role to be played by the employee, skill and
knowledge required to perform the job, the result of the job that employee performs, the relation
of that job to other jobs of the organization and how each job satisfies the goals of the
organization. Thus it is concerned with work, worker and the context in which the job exists.
USES OF JOB ANALYSIS
• The overall objectives of job analysis can be summarized as follows.
• To identify the nature of jobs required in a firm.
• Understanding the size of the organizational structure to determine the size and kind of
jobs.
• To know the type of people and their skill sets to fit into the type of activity and size of
the identified organization.
• Understanding the relationship of each joh with other jobs of the given organization.
• To decide the qualification, technical knowledge and other additional requirements of
the personnel, to suit to the needs of the jobs structure of the organization.

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• To describe the infrastructure (Physical condition) required for each job, to create a
good ambience and congenial work atmosphere, so that employees can work peacefully.
• Knowing the most efficient method of doing a job
• To focus on employee's job satisfaction
• To develop sound performance measurement system
• To continuously develop sound training methods.
• To conclude, objectives of job analysis includes (i) the preparation of up-to-date job
description and job specification (ii) ensuring effectiveness of recruitment process (iii)
the formulation of an effective performance management system and (iv) to maintain
employees to give their best to the organization. These objectives are documented to
explain the job readiness of employment procedures víz recruitment, training,
placement, compensation and performance.
Process of job analysis
➢ Process 1: Collection of background information and review
The first step in job analysis process is to understand the organization, its existing work- flow
situation, prevailing types of jobs and their description. Work-flow chart shows the relationship
of a job with other jobs. Existing job description provides a sound base for job analysis.
Information can be gathered from so many other sources. Process that is undertaken can vary
depending on the complexity of the role.
➢ Process 2: Job selection for analysis
Organizations may need many jobs to achieve their objectives. Designing the profile of each
job is a difficult task. Entire process consumes much time and money. Therefore normal
procedure adopted is to select representative jobs and analyze them. While analyzing the job,
issues examined are, duties and tasks, environment, tools and equipment required, relationship
with internal and external people, knowledge, skill and abilities required etc. The whole
exercise is called "Job description".
➢ Process 3: Collection of job information
After categorizing jobs as per the needs of the organization, based on the mission and culture
of that enterprise, job analyst has to collect information for the identified jobs. It can be
collected through structured or open-ended questionnaires, conducting interviews with the top
brass of the organization, holding expert panel discussions, studying task inventories and
checklists, and speaking to existing employees
Techniques of job analysis
1. Interviews - Supervisors and incumbents
2. Observations
3. Questionnaires open-ended / closed-ended
4. Task Inventories
5. Technical conferences

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6. Critical incidents
7. Checklist
➢ Process 4: Data analysis and preparation of job details
In this phase, job analyst has to process the collected information of jobs. Jobs are to be
categorized according to the policies, programmes, need and objectives of the organization.
Vital activities to take place in this phase are (i) job description and (ii) job specialization.
Job Specification
This is a component of job analysis. This is mainly related to acceptable human qualities
required to perform a job. Job specification helps in hiring appropriate human resources to
carry out the tasks successfully. It is a list of characteristics of the individuals who should be
hired to perform a specific job.
Job specification states the qualities of an employee, required to perform the duties concerned
with a specific job.
Therefore the objective is to design jobs which make the employees to be alert mentally during
their working hours.
Job Rotation
This involves the shifting of people from one job to another job periodically. This prevent
monotony and avoids stagnation. Whenever there is shortage of labour, this aspect helps the
organization to maintain productivity of the organization at a particular level. When there is a
labour shortage, job rotation helps in filling the shortage to some extent. This will be a medicine
for employee fatigue, as employee moves from job to job. Pain, misery, and disabling injuries
emerging from repetitive motion tasks can be reduced significantly through job rotation.
Job Enlargement
Job enlargement is a concept which explains the process of combining two or more specialized
tasks in a work flow sequence into one single job. This process gives some relief to the
employees, Job enlargement changes the job profile by including additional tasks. It may save
some cost and a moderate degree of complexity can be brought into the job. It horizontally
increases the number of tasks or activities. Management will have a perception that job
enlargement will increase job satisfaction and productivity.
Job Enrichment
Job enrichment is a process of redesigning a job. This has the objective of motivating
employees. Instead of making the employees to work towards greater specialization, job
enrichment introduces more complexity and depth to the job. Planning and decision-making
opportunities are provided to employees in job enrichment. It is a vertical expansion of jobs,
unlike horizontal in job enlargement.

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Recruitment
Meaning
Recruitment refers to the attempt of getting interested applicants and providing a pool of
prospective employees, so that we can select the right person for the right job from this pool.
Therefore, recruitment precedes selection. Recruitment is the discovering of potential
applicants for the actual or anticipated organisational vacancies. It brings together those who
want jobs and those who have jobs.
Recruitment locates the sources of manpower to meet job requirement and job specification. It
is a process that not only helps to fill a vacancy physically, mentally and temperamentally, but
also helps to develop an employee into a desirable asset.
Recruitment policy should be a planned one so that disruption of work in an organisation will
be minimised to employee turnover. Recruitment policy should be such that right type of
personnel are identified for the specific jobs. Today, in the Indian scenario, there is a dearth for
skilful personnel in each and every organisation. A sound recruitment policy has to be based
on comprehensive employee development programme.
Purpose and Importance of Recruitment: The importance of recruitment in the
organization is as:
1. It helps to determine the present and future requirements of the organisation in concurrence
with personnel planning and job analysis activities
2. It increases the pool of job candidates ie giving more options to the organisation to select
from the pool the right candidate for the organisation.
3. It hereby increases the success rate of selection process by reducing number of under-
qualified or over-qualified applications
. 4. It helps to reduce the prospect of the job applicants once selected would leave shortly
5. It helps to meet legal and social obligations
6. It helps to identify and prepare potential job applicants
7. Evaluate the effectiveness of different recruitment techniques and sources for job applicants.
Recruitment methods
There are three methods of recruitment: (i) Direct method (if) Indirect method and f Third party
sources.
Direct method includes the following:
Campus interviews-are conducted in universities and colleges.
Placement officers of the colleges will contact the organisations. Procedure for the method is
standardised.
Direct selection takes place through internet services.

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Other methods include sending recruiters to conventions and seminars, setting exhibitions at
fairs, and using mobile offices to go to the desired centres.
Indirect method involves mostly advertising in news papers, journals, magazines and special
brochures brought out by the organisations for the purpose)
Other methods include radio and television announcements and other tele-communications
services, print advertising, web advertising, social media etc.
Third party methods include commercial and private employment agencies, state agencies
placement offices of educational institutions, professional offices, recruiting firms,
indoctrination seminars for top executives and Directors of specialized educational institutions,
providing summer projects to students etc.
Central and state employment offices also assist the organisations to provide people by
maintaining a database of different categories of skilled, semi-skilled and unskilled workers
They provide variety of services like, counselling, acting as service agents between prospects
and employers, providing information about the labour market etc.
Placement Cells of educational institutions, particularly professional schools render placement
services by contacting all corporates where they can access and develop cordial relationship
with themselves to provide entry-level jobs in these corporate offices.
Human Resources Development (HRD) wing of these corporates review credentials and
interview candidates for management trainees and host of other jobs. Very good placement
cells of educational institutions also provide customised training to their students so that they
are easily absorbed in their organisations
Many companies run their own training schools to select and train talented boys and girls.
Getting admission in these schools is as definite as getting jobs. Examples are Indian Institution
of Technology Bangalore (IITB) of Infosys, Nirma School of Management, Indian Business
School at Hyderabad jointly run by Tatas, Reliance etc. Today there are many government,
semi-government and non-government and private professional institutes of high order (as the
one stated earlier) which provide talented people to the business world.
Factors affecting recruitment
Many internal and external factors affect recruitment. They are briefly analysed
Internal factors
Size of business unit affects recruitment. If the size is small less number is recruited On the
other, more persons will be recruited, when the size is big or when business expands.
Recruiting policy provides a framework for recruitment. This includes objectives, process
and sources of recruitment. Recruitment has to be made within thi framework.
Inducting talented people enhances the image of the organisation. Competent and talented
people will always aspire to join the companies having good image (ForTata group, or Wipro
or TCS or Infosys etc.) The image of the organisation impacts recruitment.

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Job profile is another factor which affects recruitment. Jobs which attract better
compensation (better salary, promotion etc.) and incentives such as recognition, scope for
career development etc. influence the recruitment process.
Other internal factors such as cost of recruitment, company's growth rate, career planning,
company product etc. also influence recruitment process.
External factors
Many external factors influence recruitment process.
Trend in employment market which controls demand for and supply of employees will greatly
influence recruitment activity. If talented resources are less in supply. then HR managers have
to put in big effort to recruit. If oversupply situation (less demand and more supply) exists
recruitment process becomes easy.
Rate of unemployment also influences recruitment process. If the rate of unemployment is high,
recruitment becomes easier and vice-a-versa.
Legislations also impact recruitment. Government legislations reflect the views of political
party in power and the society in which business operates. Salary, wage structure, working
environment, health and safety of employees etc. are dictated in respective legislations and
Acts for different categories of employment. These legislations should be considered while
recruiting.
Competition situation to recruit is another factor which affects recruitment process.
Competition prevails in the market to pick talented people. HR managers have to offer
competitive compensation and other perks to recruit the best talent.
Job reservation policy of the governments will also impact recruitment. As job offers for
reserved category (such as STs, SCs, OBCs etc.) are mandatory recruitment policy of an
organisation has to consider mandatory provisions, while recruiting.
Demographic factors such as age, religion, literacy level, gender, occupation, economic status
and such other factors will also influence recruitment process.
Sources of Recruitment
The sources of recruitment are broadly divided into two categories: internal sources and
external sources. Both the methods have their own merits and demerits.
Internal Sources External Sources
• Present Employees • Direct Recruitment
• Past Employees • Employment Exchanges
• Employee Referrals • Employment Agencies/ Professional
• Previous Applicants Associations/Consultants
• Advertisements
• Walk ins
• Campus Recruitment
• Word of mouth advertising
• Labour Contractors

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• Job Fairs
• Outsourcing
• Poaching/Raiding
• E- Recruitment

INTERNAL SOURCES OF RECRUITMENT: Internal sources of recruitment refer to

hiring manpower from within the organization ie internally. This means, applicants applying
for the different positions are those who are already working within the same organization.
1. Present Employees
It includes 5. Types of Recruitment
• Promotions: Promotion involves upward movement, ie upgrading the employees by
evaluating their performance in the organization. It involves shifting an employee from a
lower position to a higher position with more responsibilities, salary, facilities, and status.
Generally many organizations fill their higher vacant positions with the process of
promotions, internally.
• Transfers: Transfer involves lateral movement, ie process of interchanging from one job
to another without any change in the rank and responsibilities. It generally involves the
shifting of employees from one department to another department or one location to another
location, depending upon the requirement of the organisation.
• To understand how it works; let‘s take an example: Assume that there is a Software
company called XYZ Ltd. Having two branches, Branch-A and Branch-B, but an employee
from Branch-A leave his job due to some reason. Now, this position has to be filled thus,
in this situation instead of searching and hiring a new candidate from outside which is time
consuming and costly too, there is another possibility of shifting an employee from Branch-
B to Branch-A, depending upon the requirements of the job and the capabilities of the
employee. This internal shifting of an employee from one branch to another branch is called
as Transfer
. • Job Posting (Internal Advertisements): Job posting/ Internal Advertisements is a process
of posting/advertising jobs only within the organization for example in chain groups etc.
This job posting act as is an open invitation to all the employees working within /inside the
organization, they can only apply for the vacant positions. It provides equal opportunities
to all the employees working in the organization. Thus, the recruitment will be done from
within the organization and it is cost saving to opportunities to all the employees working
in the organization. Thus, the recruitment will be done from within the organization and it
is cost saving too.

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2. Past Employees • Recruiting Former Employees: Recruiting former employees is

another method of internal sources of recruitment, in this the ex employees who are either
retired or have resigned from the organisation due to some reasons are called back for
3. Employee Referrals This concept is much popularized by BPO‘s or call center now
followed in every field. Employee referral is an effective method of recruiting the right
candidates at a low cost. In this method new candidates are hired through the references of
employees, who are currently working within the same organization. In this process, the
present employees are encouraged to refer their friends and relatives for filling up the
vacant positions. Most of the organizations, in order to motivate their employees, to suggest
referrals even provide with a referral bonus etc for a successful hire.
4. Previous Applicants In this method the Hiring team plays the major role they as per the
requirement of the organisation checks the profiles of previous applicants from the
organizational recruitment database. These applicants are basically those who have applied
for jobs earlier in the past but could not get selected due to one or other reason, their CV‘s
are kept with HR department in the form of database These resources are than approached
and if organisation gets a positive response they are selected for the jobs. It is also another
inexpensive way of filling up the vacant positions
EXTERNAL SOURCES OF RECRUITMENT: External sources of recruitment refer to
hiring employees from outside the organization externally. It suggests that, here the
applicants seeking for the job are those who are external to the organization. Let us discuss
different methods of the external sources:
• Direct Recruitment: In this method a notice of vacancy is placed on the notice board of
the organization and the suitable candidates can approach the concerned person, this
method of sourcing is also called as factory gate recruitment, as the blue-collar and
technical workers are hired through this process.
• Employment Exchanges: Employment exchange is a government entity, where the details
of the candidates requiring jobs are stored and are given to the employers for filling the
vacant positions, As per the law, for certain job vacancies, it is mandatory that the
organization provides details to the employment exchange. This external recruitment
method is helpful in hiring employees at all levels.
• Employment Agencies/ Professional Associations/Consultants: Employment agencies /
Professional Associations/Consultants are other good source of external recruitment.
Employment agencies can be private, public, or government owned. They act as a link
between the prospective candidates and employer. As they hold a database of qualified
candidates and provide it to the organisation as and when required by them at some cost
who then select from among it. They provides unskilled, semi-skilled and skilled resources
as per the requirements of the organization
• Advertisements: Advertisements are the most popular and very much preferred source of
external source of recruitment as they can reach to huge masses within same time and its
proven fact that response through advertisement is most of the time positive. In this the job
vacancy is announced through various print and electronic media – newspaper, radio etc

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with all the details like specific job description and specifications of the requirements.
Going through the advertisement the prospective candidates can approach the organisation.
Thus advertisements is the best way to source mass of candidates in a short span of time
and it even offers an efficient way of screening the candidates‘ through specific
requirements mentioned in the advertisement.Though Advertisement is one of the costliest
method of recruitment, but when time and number are important, then advertisement is the
best source of recruitment.
• Walk ins: This is the most common and least expensive method for candidates as in this
the job seekers submit unsolicited applications or letters or resume or biodata to the
organization and directly come for the selection process as its similar to ‗open for all‘ and
even preferred by employers as they get a wider choice for selection for the post and
moreover it is free from hassles associated with other methods of recruitment • Campus
Recruitment: This is another most popular source of external recruitment, where the
educational institution such as colleges and universities offers opportunities to the
organisation for hiring their students. In this process, the organizations visit technical,
management, and professional institutions for recruiting students directly for the new
positions.
• Word of Mouth Advertising: Word of mouth is purely an intangible way of sourcing the
candidates for filling up the vacant positions. As there are many reputed organizations with
such high and good image in the market. That these organisation names are more than
enough for the job seekers. Such organizations only need a word-of-mouth advertising
regarding a job vacancy to attract a large number of candidates.
• Labour Contractors:Manual workers or Daily wage labours can be recruited through
contractors who maintain close association with the sources of such workers. This source
is used to recruit labour for construction jobs.
• Job Fairs: Job fairs are conducted by different companies to attract candidates for entry
level jobs. In this all the organisation having vacancy collects at one place and organize a
fair for the job seekers who can directly go to the desired counter of organisation and can
apply for the respective post and company, it is another good method of external
recruitment as through this company can get wider choices as well as good for job seeker
as get all the big brands /non brands at one place so they can choose among it and beside
that its less costly than advertisements.
• Poaching/Raiding: This is the latest method of external recruitment being followed by the
organizations today. Poaching means hiring a competent and experienced person already
working in another reputed company in the same or different industry; the organization
might be a competitor in the industry. For this a company can attract talent from another
company by offering attractive pay packages and other terms and conditions, better than
the current employer of the candidate. Though it is seen as an unethical practice and not
openly talked about but most of the Indian software and the retail sectors are facing the
most severe problems due to poaching today, as it reduces the competitive strength of the
firm.

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• E-Recruitment: E-Recruitment or recruitment through internet is the use of technology to

assist the recruitment process. It is gaining popularity from past few years. In this they
advertise job vacancies through worldwide web. The job seekers send their applications or
curriculum vitae (CV) through an e-mail using the Internet.
Merits & Demerits of Internal Sources of Recruitment: An internal source of
recruitment, i.e., hiring employees within the organization, has its own set of
advantages and disadvantages. The advantages are as follows:
• It is simple, easy, quick, time saving and cost effective method of recruitment.
• There is no need of induction and training, as the candidates are already aware of their
job and responsibilities.
• It motivates the employees to work hard, and increases the work relationship within the
organization.
• It helps in developing loyalty of the employee towards the organization. The
disadvantages are as follows:
• It stops the new innovative ideas and thinking to come into the organisation which a new
blood otherwise would have brought with him, as employee who are already working will
have their own old ways of working.
• It has limited scope because all the vacant positions cannot be filled through this method.
• There are more chances of biasness or partiality while recruiting
• It sometimes develops Jealousy as there could be issues in between the employees, who
are promoted and who are not.
• It may become the cause of disturbing the harmony of the organisation.
• If an internal resource is promoted or transferred, then that position will remain vacant.
• Employees, who are not promoted, may end up being unhappy, rejected, and
demotivated.
Merits & Demerits of External Sources of Recruitment: External sources of
recruitment, i.e., hiring employees from outside the organization, have both its
benefits and drawbacks. The advantages are as follows:
• It encourages new opportunities for the job seekers.
• It helps in increasing the branding of the organization
• There are less chances of biasness or partiality between the employees.
• There is wide scope for selecting the right candidate, because of the large number of
candidates appearing.
• It brings in new ideas and innovative thinking with new blood coming in the organisation.
The disadvantages of recruiting through external sources are as follows:

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• This process is time consuming, as the selection process is very lengthy.

• Highly Expansive as compared to recruiting through internal sources.
• External candidates sometimes even demand more remuneration and benefits.
• De-motivating for the existing employees leading to poor productivity and high labour
turnover
• Less Loyalty of employees towards the organisation.
• Requires training
• Requires more time to adjust with the environment of the organisation
Selection
Meaning
After recruitment, selection procedure has to be implemented. Selection process relates to
the securing of relevant information about an applicant. This information can be obtained
in different ways. Selection is actually matching people with the job. It is only the quality
human force that matters much in the organisations. It is essential, therefore, to select
quality men for placing them in right positions render quality services. Selection of men is
a critical activity. It is a process of choosing from among the candidates from outside, the
most suitable persons for the current position or for future positions.
Some Definitions
"Employee selection is a process of putting a right applicant on a right job."
"Selection of an employee is a process of choosing the applicants, who have the
qualifications to fill the vacant job in an organisation."
"Selection is a process of identifying and hiring the applicants for filling the vacancies in
an organisation."
"Employee selection is a process of matching organisation's requirements with the skills
and the qualificaions of individuals.
Selection Process Stages/Steps
Every organisation follows certain common procedures in selection process. Selection
procedure is complicated and involves a lot of time. Following are the normal steps, every
organisation considers to make selection of their employees.
1.. Receipt and scrutiny of applications
2. Preliminary interview
3. Selection tests for the purpose of testing job relevant skills
4. Checking of references
5. Employment interviews

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6. Medical examinations
7. Placement
8. Orientation.
The various stages of selection process are briefly analysed in the following paragraphs.
1. Receipt of application: Everyone who applies for job in an enterprise may not be qualified
for the job. Those who do not possess adequate experience and qualifications should not be
included in the list of candidates to be called for preliminary interview. If this is done, even
candidates with inadequate experience and qualifications will be called for preliminary
interview. This means, wasting of time and money of employer and the candidates who have
applied for the jobs. Hence, a proper scrutiny of applications is made to select the candidates
to be called for a preliminary interview.
2. Preliminary interview: In the preliminary interview, the employer tries to find out whether
the candidate is physically and mentally fit for the job. In general, the candidates are asked
about their qualifications, experience, interests, residence, age etc. Employers should not take
much time for conducting the preliminary interview.
3. Selection test: Those candidates who have passed the preliminary interview will be asked to
appear for the selection tests. Tests serve as an important device in the process of selection.
Test aims at discovering and measuring selected qualities, abilities and skills of a candidate in
terms of job specifications of employees and stability in the organisation.
4. Checking of references: A candidate applying for a job generally gives some references, e.g.,
names of persons to whom enquiries as to his qualifications, experience, character etc., might
be addressed. Sometimes, checking of references may help in finding out the correctness of
information furnished by the candidate regarding his previous employment, job designation
and salary, reason for leaving the job, etc.
of employees and stability in the organisation.

4. Checking of references: A candidate applying for a job generally gives some references, e.g.,
names of persons to whom enquiries as to his qualifications, experience, character etc., might
be addressed. Sometimes, checking of references may help in finding out the correctness of
information furnished by the candidate regarding his previous employment, job designation
and salary, reason for leaving the job, etc.

5. Employment interview: Interview is a "face to face observational and personal appraisal

method" to evaluate a candidate's fitness for the job. Every person who is selected by a
company for interview is interviewed by one or more persons. Interview helps the employer in
assessing the prospective employee's motivation, personality, smartness, intelligence and his
overall attitude.

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Types of interviews
Different types of interviews that may be conducted by the employers are as follows:
(a) Direct interview: It is a straightforward face-to-face question-answer session between the
interviewer and the interviewee. In this interview, the interviewer tries to assess the candidate's
knowledge of the job, attitude, motivation and other personal characteristics.
(b) Non-direct interview: No direct questions are asked in this interview, the candidate is asked
to express his views on any topic of his liking. The interviewer is playing mainly a listener's
role without interrupting the candidate. This method provides freedom of expression to the
interviewer and also keeps him more at ease. This helps the employer in making a better
assessment of the personality of the candidate
(c) Patterned interview: Under this method, a number of standard questions to be asked of a
candidate are framed in advance. Even answers to these questions a determined beforehand.
The answers given by the candidate are compared with the answers determined beforehand in
order to find out the suitability of the candidate for the jobs for which he is interviewed.
d) Stress interview: In stress interview, the interviewer puts such questions which can make the
candidate lose his temper or make him angry or get irritated. For example, the interviewer may
ask: "Did your previous employer sack you from the job because he was not satisfied with your
performance?" In case the candidate answers such question without getting irritated, he has a
good chance of being selected for the job.
(e) Board or Panel interview: In this type of interview, a panel of members interview the
candidate. Each member may ask questions in the particular arca that is assigned to him.
Immediately after the interview, the panel members together will evaluate the candidate's
performance with reference to the candidate's answers to questions put by each member.
(1) Group interview: In this type of interview, a group of candidates is observed in group
discussion on a specific problem. If a candidate's performance is impressive in the group
discussion, he may be considered for the job.
(g) Exit interview: It is a passion these days particularly in IT industry that employees quite
frequently leave the current job and join other organisation. Before they leave, organisations
may conduct an interview, called "Exit interview", to know the reason of exit. In that meeting,
management may motivate the employees to stay back offering additional monetary and non-
monetary benefits. If employee is satisfied with new offer he/she may stay back or exit, if not
satisfied with the offer.
6. Medical examination: Medical examination of the candidate is needed to find out his fitness
for the job. Depending on the nature of the job, minimum physical fitness standards are
specified and the candidate should satisfy these minimum standards to merit selection.Some
corporate emperical studies have revealed as to why the candidates are rejected in interviews.
Lack of courtesy not having good mannerisms.
Focusing heavily on monetary aspects.
Very poor personal presentation and appearance.

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Passive in approach, no interest in work, lack of enthusiasm.

Condemnation of past employers.
Not appearing for interview on time.
Not looking at the interviewer at the time of interview.
Not asking any question on the job.
Over-aggressive, conceited and having a complex that he/she knows everything.
Lack of aim about future activities.
Lack of fact/maturity/vitality.
Makes excuses, evasive and takes shetter in unfavourable factors in record.
Morale at a low ebb.
Cynical and lazy.
Possessing strong prejudices.
Poor voice/inability to express properly.
7. Confidential reports: Organisations, after selecting but before placing the candidate,
normally obtain confidential reports from previous employers or from any responsible persons
referred by the candidates. Certain questions are asked to them through a questionnaire to
obtain personal behaviour informations or a letter may be written to the said persons to send a
confidential report. The nature of questions asked to those people are as follows.
Placement
Meaning: "Placement" may be defined as "the determination of the job to which an accepted
candidate is to be assigned," and his assignment to that job. It is a matching of what the
supervisor has reason to think he can do with the job demands (job requirements): it is a
matching of what he imposes (in strain, working conditions), and what he offers in the form of
pay roll, companionship with others, promotional possibilities, etc. A proper placement of
worker reduces employee turnover, absenteeism and accident rates, and improves morale.
Barriers to Effective Selection:
1. Perception: HR manager or any other selector should have the ability to understand or
perceive rightly the mindset of prospects. Accurate understanding of the inner feelings of
prospects facilitate the comparison of perceptions of the candidates selected for interview But
view of selectors are highly personalized and they perceive every prospect differently. Thus,
limited perceptual ability of selectors is obviously a big barrier to the objective and rational
challenge selection of candidates. Preconceived perception of selectors such as, all females are
sincere and honest, all persons with good mathematical background are intelligent, all rural
candiates etc., there are not smart etc., will hamper good selection. This type of stereotype
perceptions will be a barrier

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2. Fairness: HR manager or selectors should be objective and rational while selecting the
candidates. The principle of equity and fairness have to be followed in selection process. The
selector should not have bias towards religion, region, race or gender. However, in real time,
selectors lean towards caste, community, gender etc., while selecting candiates for jobs. This
results in selection of poor standard people, giving up talented ones, though they are exploit
available and ready to accept the post. This is a stumbling block. If unfair practices are followed
in selection, talent will fall out and organisational development will be affected heavily
3. Validity: This refers to performance of candiates in tests. The test reveals whether the
candiates is capable of performing well or not and exhibits the validity of the candidate to pick
up for the required job. But validity test, as experienced, cannot fully predict job success
4. Reliability: Selection process adopted for selecting the candidates should be reliable This
means that the process should be consistant to select right candiates. Inconsistant process will
be an obstable and cannot induct talent into an organisation.
5. Pressure: Selectors should be free from pressure while selecting candidates. But in real
situation selector's hands become tight due to pressure. Pressure here refers to outside forces
such as politicians, bureaurats, relatives, friends, peers, who insist to select particular candidate
who is incompetent to hold the post. This happens more in public sector understanding but at
minimum level in private sector. Thus, any type of pressure on selector will be a barrim for
effective selection.
6.Recruitment Cost: Recruitement cost is becoming more expensive. Conducting tests
interviews etc., involves huge cost. Therefore, selectors to avoid more cost, may resort to short
cuts and such short cuts cannot provide required talent. This is a obstruction of effective
selection.
Psychometric test:
Psychometric test is an objective way to measure the potential ability of the propspects
(candiates called for Interview) to know whether they can perform well, if selected. This test
involves the measurement of range of skills from internal capabilities cognitive), knowledge to
assess the personality, intelligence, critical reasoning, motivation et This determines the
aptitude of the prospect.
Proficiency test: Proficiency test includes (a) Trade or achievement tests and (b) Desterity tests.
Aptitude test: Aptitude test or otherwise called psychometric test consists of (a) Intelligence
tests, (b) Personality tests and (c) Vocational tests. A brief explanation of these tests is given
here.
Psychometric tests
(a) Trade or Achievement test: This test measures the knowledge and proficiency already
possessed by a candidate.
(b) Dexterity test: This test aims at measuring the quickness and efficiency with which a
candidate uses his hands and fingers.

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PSYCHOMETRIC TESTS/APTITUDE TESTS

(a) Intelligence test: This test aims at measuring the mental capacity, memory power and speed
of thought of the candidate.
(b) Personality test: This test aims at assessing the candidate's personal characteristics such as
temperament, likes and dislikes, courage, initiative, emotional make-up, confidence, reaction,
ability to mix with people, ability to motivate others, etc.
(c) Vocational test: This test which is also known as the interest test, aims to measure a
candidate's interest in a particular kind of work. In other words, it tries to find out the
candidate's most suitable vocation (job)

Gamification
Gamification is a process of using game theory, mechanics and gaming design to engage HR
activities digitally. This is the usage of game mechanics and game thinking in non-game
scenarios such as business processes and environment. Gamification process, looks like loyalty
programme, to help achieve real business goals. This digital method has tremendous power to
motivate employees at work place, recruit and select more competent people to jobs, influences
customer behaviour, to improve overall productivity of the organisation. In "Gamification",
gaming elements are applied in work and activities.
Importance/uses of Gamification in HR activities:
• Organisations who have adopted "Gamification" have experienced that it is very
important for the following reasons.
• Its importance lies in attracting the attention of job seekers and raise fascination for a
job opening.
• Gamification becomes important for HR managers to involve actively to change
recruitement processes into digitally supported, alternatives which analyse the future
job performance of the candidate.
• It faciliates the conversion of traditional HR activities related to employee behaviour
motivation etc., to digital mode to make the HR activities more productive by inducting
fun into these HR activities. As the HR elements are administered through game
mechanism, people involved in such activities take them as fun and get more engaged.
This provides positive results.
• It develops a healthy relationship between employer and prospect. In work places also
it provides better understanding between co-workers.
• Gamification provides a good platform to employees to get benefits from the
organisation.
Features of Gamification
• This is used to keep employees engaged, which helps HR managers to retain talented
employees and avoid costly turnovers.

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• Gamification is adopted to develop positive organisational culture.

• This establishes healthy relationship between functional departments in an
organisation.
• HR managers adopt "Gamification" to make employees to develop intrinsic motivation
in them.
• It facilitates the management to observe and enlist talented employees for future
promotions, improving compensation, tangible rewards etc.
• Many employees in an organisation will not work in full steam. They will not comply
with policies and procedures of the organisation in time, exhibiting non relationship
with their jobs. Gamification prompts such employees to become active persons to
discharge complicance and other diverse activities.

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