introduction to Human Resource Management subject - Management

1. 1–1
Management - IIManagement - II
Introduction toIntroduction to
HumanHuman
ResourceResource
ManagementManagement
• UnitUnit
44

2. Course ContentsCourse Contents
1–2
1. Importance
2. Manpower planning : concept and
features and objectives
3. Manpower planning process
4. Recruitment : sources
5. Selection : process
6. Selection tests : types of tests

3. 1–3
Human ResourcesHuman Resources – Is the collection of people and– Is the collection of people and
their characteristics at worktheir characteristics at work
These are distinct and unique to an organization inThese are distinct and unique to an organization in
many waysmany ways
Human Resources ManagementHuman Resources Management As Gary DesslerAs Gary Dessler
described “described “HRM is the policies and practices involvedHRM is the policies and practices involved
in carryout the people or human resource aspects of ain carryout the people or human resource aspects of a
management position, including recruiting, screening,management position, including recruiting, screening,
training, rewarding and appraisingtraining, rewarding and appraising.”.”

4. 1–4
The basic task of HRM is the selection of the right personThe basic task of HRM is the selection of the right person
for the right job at the right time to carry out the activitiesfor the right job at the right time to carry out the activities
of the organization in the most efficient way.of the organization in the most efficient way.
HRM is concerned with policies and practices thatHRM is concerned with policies and practices that
ensure the best use of human resources for fulfilling theensure the best use of human resources for fulfilling the
organization and individual goals.organization and individual goals.

5. Importance of Human ResourcesImportance of Human Resources
1–5
Human resource are the only asset thatHuman resource are the only asset that appreciate overappreciate over
a perioda period while physical resources just depreciate withwhile physical resources just depreciate with
years.years.
 Human resource alone can produceHuman resource alone can produce Output larger thanOutput larger than
InputInput . (Because of Creative thinking). (Because of Creative thinking)
Organizations require human resource of different typesOrganizations require human resource of different types
to operate all physical resourcesto operate all physical resources..
TheThe flexibilityflexibility of an organization depends more on peopleof an organization depends more on people
than on any technical factors.than on any technical factors.

6. Objectives of HRMObjectives of HRM
1–6
Primary objective isPrimary objective is to take care of the work life of theto take care of the work life of the
employeesemployees from the time they join in the organization tofrom the time they join in the organization to
the time they leave it.the time they leave it.
 To act as aTo act as a liaisonliaison between Top management andbetween Top management and
Employees.Employees.
ToTo arrangearrange andand maintainmaintain adequate manpower inventoryadequate manpower inventory..
ToTo offer trainingoffer training as a way of developing skills, enhancingas a way of developing skills, enhancing
productivity and increasing individual and organizationalproductivity and increasing individual and organizational
performance.performance.
ToTo device employee benefit schemesdevice employee benefit schemes for improvingfor improving
employee motivation.employee motivation.
ToTo EnsureEnsure andand enhanceenhance thethe quality of work lifequality of work life
To helpTo help keep up ethical values and behaviorkeep up ethical values and behavior amongstamongst
employees both within and outside the organization.employees both within and outside the organization.

7. Human Resource PlanningHuman Resource Planning
1–7
Human resource planningHuman resource planning is the ongoing process foris the ongoing process for
an organization to manage the changes in its internal andan organization to manage the changes in its internal and
external environment on a sustained basis.external environment on a sustained basis.
Its also defined as a process of identifying and thenIts also defined as a process of identifying and then
matching the human resource requirements andmatching the human resource requirements and
availability in order to determine the future HR activitiesavailability in order to determine the future HR activities
of the organization on the basis of overall organizationalof the organization on the basis of overall organizational
objectives.objectives.
HRP is the basically a process of identifying the rightHRP is the basically a process of identifying the right
person for the right job at the right time at the right cost.person for the right job at the right time at the right cost.
HRP is the first step in the process of recruitment andHRP is the first step in the process of recruitment and
selection of employees after a job analysis has beenselection of employees after a job analysis has been
completed.completed.

8. Objectives of Human Resource PlanningObjectives of Human Resource Planning
1–8
 Attracting, developing and retaining an efficientAttracting, developing and retaining an efficient
workforce.workforce.
 Evaluating and rewarding it’s performance.Evaluating and rewarding it’s performance.
Inventing and controlling HR plans and programs toInventing and controlling HR plans and programs to
optimize the HR cost.optimize the HR cost.

9. Characteristics of Human ResourceCharacteristics of Human Resource
PlanningPlanning
1–9
 Hr Planning aimsHr Planning aims to fulfilling corporate strategiesto fulfilling corporate strategies andand
goals through effective utilization of human resources. Asgoals through effective utilization of human resources. As
such it is effectively aligned with Business strategies ofsuch it is effectively aligned with Business strategies of
the organization.the organization.
 It isIt is not a Solitary Actnot a Solitary Act..
 It determines bothIt determines both Short term and Long term strategiesShort term and Long term strategies
and future directions from the HR perspectives.and future directions from the HR perspectives.
It is aIt is a logical and efficient decision making activitylogical and efficient decision making activity
involving systematic analysis of data gathered in ainvolving systematic analysis of data gathered in a
scientific manner.scientific manner.
 It emphasizes both theIt emphasizes both the Quantitative and the QualitativeQuantitative and the Qualitative
dimensions of the human resource at every stage.dimensions of the human resource at every stage.

10. Features of Human Resource PlanningFeatures of Human Resource Planning
1–10
Significance of Human Resource PlanningSignificance of Human Resource Planning
 Until a few decade ago organizations consideredUntil a few decade ago organizations considered
human resource planning neither essential norhuman resource planning neither essential nor
inevitable.inevitable.
 This is because firms in those times had a relativelyThis is because firms in those times had a relatively
stable environment.stable environment.
 In the subsequent period, the external environmentIn the subsequent period, the external environment
has undergone several changes and is thus causinghas undergone several changes and is thus causing
a lot of uncertainty to the organizations.a lot of uncertainty to the organizations.
 This are like globalization, intensified competition,This are like globalization, intensified competition,
changing characteristics of the labor forces,changing characteristics of the labor forces,
government interventions etc.government interventions etc.
 This environment uncertainty has enhanced theThis environment uncertainty has enhanced the
need for and importance of HR Planning in theneed for and importance of HR Planning in the
organizations.organizations.

11. 1–11
Assessing Future Recruitment Requirements.Assessing Future Recruitment Requirements.
 Identifying the future manpower requirements of anIdentifying the future manpower requirements of an
organization is a key element in the HR planningorganization is a key element in the HR planning
process of a firmprocess of a firm
 In determining the personnel requirements, anIn determining the personnel requirements, an
organization may adopt hard or soft HR planningorganization may adopt hard or soft HR planning
techniques.techniques.
 In hard Planning technique only the number ofIn hard Planning technique only the number of
personnel is considered for determining futurepersonnel is considered for determining future
requirements.requirements.
 Soft Planning technique considers theSoft Planning technique considers the
characteristics, skills, aptitude and attitude aspects ofcharacteristics, skills, aptitude and attitude aspects of
the personnel required for future assignments.the personnel required for future assignments.
 Small Organizations adopt hard PlanningSmall Organizations adopt hard Planning
Techniques.Techniques.
 large organizations adopt mix of Hard and softlarge organizations adopt mix of Hard and soft
approaches.approaches.

12. 1–12
Optimum Utilization of available Human Resource.Optimum Utilization of available Human Resource.
 HR planning helps in the minimization of employeeHR planning helps in the minimization of employee
cost and maximization of employee efficiency andcost and maximization of employee efficiency and
involvement.involvement.
 HR Planning constantly assesses the HRHR Planning constantly assesses the HR
requirements of different departments to identify therequirements of different departments to identify the
surplus and shortage of manpower in them.surplus and shortage of manpower in them.
It also estimate their future requirements.It also estimate their future requirements.
Finally it allocate or Reallocate human resource toFinally it allocate or Reallocate human resource to
different department to ensure their best possibledifferent department to ensure their best possible
deployment.deployment.

13. 1–13
 Developing Training and Retraining ProgrammesDeveloping Training and Retraining Programmes
 HR planning facilitates organization in devisingHR planning facilitates organization in devising
training programmes to meet the diverse need of thetraining programmes to meet the diverse need of the
employees.employees.
 this is because it determines the skills andthis is because it determines the skills and
competences of the required personnel.competences of the required personnel.
 It helps in predetermining the nature and duration ofIt helps in predetermining the nature and duration of
training for employees.training for employees.
It also helps in determining the retraining needs of theIt also helps in determining the retraining needs of the
surplus employees so that they can be redeployed insurplus employees so that they can be redeployed in
some other position available in the organization.some other position available in the organization.

14. 1–14
 Formulating compensation policies.Formulating compensation policies.
 An organization has to necessarily ensure that itsAn organization has to necessarily ensure that its
compensation plan is aligned well with the HR plancompensation plan is aligned well with the HR plan
and organizational strategy.and organizational strategy.
 HR Planning facilitates the achievement of internalHR Planning facilitates the achievement of internal
consistency and external competitiveness through aconsistency and external competitiveness through a
compensation policy.compensation policy.
 It helps in attracting and retaining the talentedIt helps in attracting and retaining the talented
workforce.workforce.

15. 1–15
 Determining management development ProgrammesDetermining management development Programmes
 The success of an organization depends on theThe success of an organization depends on the
ability of its managers to cope with the changes in itsability of its managers to cope with the changes in its
internal and external environment.internal and external environment.
 It is responsibility of the organization to recognizeIt is responsibility of the organization to recognize
the necessary ability and requirement of itsthe necessary ability and requirement of its
managerial personnel in the near and distant future.managerial personnel in the near and distant future.
 HR Planning helps in identifying the skills andHR Planning helps in identifying the skills and
necessities of an organization in the short, mediumnecessities of an organization in the short, medium
and long term.and long term.

16. 1–16
Gaining Competitive AdvantagesGaining Competitive Advantages
 In changing external environment, many organizationIn changing external environment, many organization
strongly believe that good human resourcesstrongly believe that good human resources
developed through inimitable and non substitutabledeveloped through inimitable and non substitutable
HR policies and programmes can get them real andHR policies and programmes can get them real and
lasting competitive advantage in the market.lasting competitive advantage in the market.
 HR planning facilitate the development of HR policiesHR planning facilitate the development of HR policies
concerning various aspects of human resourceconcerning various aspects of human resource
management.management.

17. 1–17
 shaping Future Plans and Strategies.shaping Future Plans and Strategies.
 No business can develop its growth strategyNo business can develop its growth strategy
independent of HR strategies.independent of HR strategies.
 the growth strategies may involve a vertical orthe growth strategies may involve a vertical or
horizontal business expansion similarly it may be anhorizontal business expansion similarly it may be an
expansion within or across the nation.expansion within or across the nation.
 Irrespective of the nature and size of the expansion,Irrespective of the nature and size of the expansion,
HR planning plays an indispensable role in everyHR planning plays an indispensable role in every
expansion programme of the business organization.expansion programme of the business organization.

18. Human Resource Planning ProcessHuman Resource Planning Process
1–18
Human Resource Planning is the ongoing process for anHuman Resource Planning is the ongoing process for an
organization to manage the changes in its internal andorganization to manage the changes in its internal and
external environment on sustained basis.external environment on sustained basis.
The basic elements involved in human resource planningThe basic elements involved in human resource planning
process areprocess are jobs, time, personsjobs, time, persons andand fundsfunds..
 HR planning process is a continuous process becauseHR planning process is a continuous process because
this elements always keep changing.this elements always keep changing.

19. Human Resource Planning ProcessHuman Resource Planning Process
1–19
Setting Organizational Objectives and Strategies
Scanning the environment
Preparing an In house Skill and competency Inventory
HR Forecasting –
Need Assessment
HR Forecasting –
Estimation of Availability
Developing HR Plans and Programmes
Recruitment / Reduction

20. CONSIDERING THE ORGANIZATIONALCONSIDERING THE ORGANIZATIONAL
OBJECTIVES AND STRATEGIESOBJECTIVES AND STRATEGIES
1–20
Organizational strategy with its mission andOrganizational strategy with its mission and
vision statement clearly expresses the futurevision statement clearly expresses the future
intent of an organizationintent of an organization
Examination of the organizational strategy wouldExamination of the organizational strategy would
provide a clear indication about the future HRprovide a clear indication about the future HR
requirements of the firmsrequirements of the firms
It provides guidance for hiring policy, trainingIt provides guidance for hiring policy, training
policy, promotion policy, union issues,policy, promotion policy, union issues,
automation etc.automation etc.

21. SCANNING THE ENVIRONMENTSCANNING THE ENVIRONMENT
1–21
Environmental forces are defined as thoseEnvironmental forces are defined as those
events that can cause a company to achieve orevents that can cause a company to achieve or
fail to achieve business objectivesfail to achieve business objectives
Environmental scanning involves collection ofEnvironmental scanning involves collection of
information in the form of statements, actions andinformation in the form of statements, actions and
responses of people associated with theresponses of people associated with the
environmentenvironment
Mainly there are 4 major environmental factorsMainly there are 4 major environmental factors
are thereare there

22. 1–22
1.1. Economic SituationEconomic Situation
• Economic situation prevailing at particular timeEconomic situation prevailing at particular time
have a direct impact on the organizationhave a direct impact on the organization
• When a country experiences economic boom,When a country experiences economic boom,
the organization engages in massive hiring tothe organization engages in massive hiring to
meet the demand for product by expanding,meet the demand for product by expanding,
this often leads to labor shortage in the marketthis often leads to labor shortage in the market
and subsequent rise in wage level of theand subsequent rise in wage level of the
employees, and vice a versaemployees, and vice a versa

23. 1–23
2.2. Legislative MeasuresLegislative Measures
• Philosophy and policy of the governmentPhilosophy and policy of the government
deeply affect business plans and preparationdeeply affect business plans and preparation
• For e.g. Government of India amended theFor e.g. Government of India amended the
Industrial Disputes Act of 1947 as part of theIndustrial Disputes Act of 1947 as part of the
labor reform process. This decision enabledlabor reform process. This decision enabled
companies with a strength of up to 1000 tocompanies with a strength of up to 1000 to
retrench employees without getting priorretrench employees without getting prior
approval from the governmentapproval from the government
• So this change has provided more flexibility toSo this change has provided more flexibility to
the employer in labour separation processthe employer in labour separation process

24. 1–24
3.3. Labour Market ScenarioLabour Market Scenario
• When there is a labour shortage, the employeeWhen there is a labour shortage, the employee
might seek a job change by quitting themight seek a job change by quitting the
company, in such a situation, the HR plannercompany, in such a situation, the HR planner
must be more prudent in implementingmust be more prudent in implementing
sensitive HR decisionssensitive HR decisions
• Industry competition and recruitment policy ofIndustry competition and recruitment policy of
the competitor should be also taken inthe competitor should be also taken in
considerationconsideration
• For existing employees the pay scale must beFor existing employees the pay scale must be
sufficient to protect them from being poachedsufficient to protect them from being poached
by the rivalsby the rivals
• For new entrants the compensation packageFor new entrants the compensation package
must be adequate to attract the best personsmust be adequate to attract the best persons

25. 1–25
4.4. Technological AdvancementsTechnological Advancements
• Technological developments have significantlyTechnological developments have significantly
changed the nature and composition of thechanged the nature and composition of the
present workplacespresent workplaces
• It has also created more high-tech jobs in theIt has also created more high-tech jobs in the
organizationorganization

26. PREPARATION OF IN-HOUSE SKILLSPREPARATION OF IN-HOUSE SKILLS
AND COMPETENCY INVENTORYAND COMPETENCY INVENTORY
1–26
An organization must assess the presentAn organization must assess the present
strength of its labor fore by preparing a skillstrength of its labor fore by preparing a skill
inventoryinventory
A compilation of skills, competencies andA compilation of skills, competencies and
qualifications of the entire workforce described asqualifications of the entire workforce described as
a skill inventorya skill inventory

27. 1–27
Skill AuditSkill Audit
Before preparing HR plans, HR managers shouldBefore preparing HR plans, HR managers should
know what skills and knowledge the organizationknow what skills and knowledge the organization
requires and what it possesses currently and inrequires and what it possesses currently and in
this regard HR manager conduct a skills audit tothis regard HR manager conduct a skills audit to
assess the current skill level of the organizationassess the current skill level of the organization
It also assists in determining whether the presentIt also assists in determining whether the present
skills inventory is sufficient to meet organizationalskills inventory is sufficient to meet organizational
goals and areas for improvementsgoals and areas for improvements

28. 1–28
 Core Competency AnalysisCore Competency Analysis
 Core competencies are extraordinary abilities ofCore competencies are extraordinary abilities of
an organization that enables is it to acquire aan organization that enables is it to acquire a
comparative advantage in the market, it could becomparative advantage in the market, it could be
technology, well reputed management, problemtechnology, well reputed management, problem
solving ability etc.solving ability etc.
 From an HR perspective, core competencyFrom an HR perspective, core competency
means the skills and knowledge of the workforcemeans the skills and knowledge of the workforce
available within an organization that differentiatesavailable within an organization that differentiates
it from its rivalsit from its rivals
It's basically an internal analysis of the generalIt's basically an internal analysis of the general
strengths and weaknesses of the firmstrengths and weaknesses of the firm

29. HR FORECASTING – NEED ASSESSMENT :HR FORECASTING – NEED ASSESSMENT :
1–29
• These forecasts involve estimating the futureThese forecasts involve estimating the future
requirements of the organization in terms of therequirements of the organization in terms of the
nature and the number of peoplenature and the number of people
• The information gathered through externalThe information gathered through external
environmental scanning and internal skillenvironmental scanning and internal skill
assessments are used to predict the future HRassessments are used to predict the future HR
requirements of the organizationrequirements of the organization
• There are 9 different forecasting techniques thatThere are 9 different forecasting techniques that
organizations can use to assess its HR needsorganizations can use to assess its HR needs

30. 1–30
1.1. Trend Analysis –Trend Analysis – is the simple techniques used foris the simple techniques used for
forecasting the HR requirements on the basis of pastforecasting the HR requirements on the basis of past
events.events.
2.2. Ratio Analysis –Ratio Analysis – is the analysis of the relationshipis the analysis of the relationship
between any two numerical variablesbetween any two numerical variables
3.3. Delphi Technique -Delphi Technique - is basically a group basedis basically a group based
systematic forecasting methodsystematic forecasting method
4.4. Normal Group TechniqueNormal Group Technique
5.5. Managerial JudgmentManagerial Judgment
Bottom-up approach –Bottom-up approach – the Process of HRthe Process of HR
forecasting begins with the lowest level of theforecasting begins with the lowest level of the
managerial hierarchymanagerial hierarchy

31. 1–31
Top-down approach –Top-down approach – Experts working at theExperts working at the
highest levels of the management forecast the HRhighest levels of the management forecast the HR
needs of the organization on the basis of theneeds of the organization on the basis of the
information available and the field expertise.information available and the field expertise.
6.6. Work Study Technique –Work Study Technique – Aims at examining theAims at examining the
business operations to achieve the optimum utilizationbusiness operations to achieve the optimum utilization
of the human and physical resources available.of the human and physical resources available.
7.7. Zero-base Forecasting –Zero-base Forecasting – requires lines managersrequires lines managers
to justify the need to continue with the positions or jobto justify the need to continue with the positions or job
that fall vacant in their department.that fall vacant in their department.
8.8. Simulation Model –Simulation Model – In a mathematics oriented,In a mathematics oriented,
software enabled technique with growing applications insoftware enabled technique with growing applications in
HR forecastingHR forecasting
9.9. Human Resource Allocation Approach -Human Resource Allocation Approach - basedbased
on object – oriented simulation modelon object – oriented simulation model

32. HR FORECASTING – ESTIMATION OFHR FORECASTING – ESTIMATION OF
AVAILABILITYAVAILABILITY
1–32
• Usually organization has two prominent sourcesUsually organization has two prominent sources
to meet their recruitments: internal and externalto meet their recruitments: internal and external
• In HR forecasting of the employee availability,In HR forecasting of the employee availability,
four scenarios are availablefour scenarios are available
1.1.Getting a sufficient number of employees fromGetting a sufficient number of employees from
internal sourcesinternal sources
2.2.Getting them from external sourcesGetting them from external sources
3.3.Combining both sources to get adequateCombining both sources to get adequate
numbersnumbers
4.4.Failing to get the required numbers of suitableFailing to get the required numbers of suitable
employees from these sourcesemployees from these sources

33. 1–33
 Internal Supply of employeesInternal Supply of employees
• Replacement Charts:Replacement Charts:
Its tool to find out the employees readily availableIts tool to find out the employees readily available
for promotion to predetermined positionsfor promotion to predetermined positions
Replacement chart may classify the potentiallyReplacement chart may classify the potentially
employee asemployee as
1.1.Fit for immediate promotionFit for immediate promotion
2.2.Ready for a promotion but requires a littleReady for a promotion but requires a little
trainingtraining
3.3.Good enough for present job but not forGood enough for present job but not for
promotionpromotion
4.4.Found to be incompetent and need to beFound to be incompetent and need to be
replacedreplaced

34. 1–34
Replacement charts can be classified in twoReplacement charts can be classified in two
categories:categories:
1.1.Position replacement chartPosition replacement chart
2.2.Personnel replacement chartPersonnel replacement chart
• Turnover Rate:Turnover Rate:
It indicates the number of replacements requiredIt indicates the number of replacements required
during the yearduring the year
It's given by,It's given by,
(No of replacements during the year/ Avg. No of(No of replacements during the year/ Avg. No of
employees on the staff roll during the year) Xemployees on the staff roll during the year) X
100100

35. 1–35
• Human Resource Management InformationHuman Resource Management Information
System (HRIS):System (HRIS):
It’s an online support that meets various HRIt’s an online support that meets various HR
requirement of the organizationrequirement of the organization
HRIS contains information pertaining to the skills,HRIS contains information pertaining to the skills,
abilities, qualifications, job performance and job-abilities, qualifications, job performance and job-
related behavior of the employeerelated behavior of the employee
• Productivity levelProductivity level
• Overtime and AbsenteeismOvertime and Absenteeism
• Succession PlanningSuccession Planning
• Other Factors (medical leaves, sabbaticals etc.)Other Factors (medical leaves, sabbaticals etc.)

36. 1–36
 External SupplyExternal Supply
• An organization generally gets a major chunk ofAn organization generally gets a major chunk of
their HR supplies from external sourcestheir HR supplies from external sources
• Here organization should consider factors likeHere organization should consider factors like
demographic changes, technological changes,demographic changes, technological changes,
labor characteristics, trends in mergers andlabor characteristics, trends in mergers and
acquisitions, govt. Policies etc.acquisitions, govt. Policies etc.
• Availability of human resource depends on theAvailability of human resource depends on the
nature and reputation of the industry in generalnature and reputation of the industry in general
and the organization in particularand the organization in particular

37. DEVELOPING HR PLANS ANDDEVELOPING HR PLANS AND
PROGRAMSPROGRAMS
1–37
• Once an organization completes the process ofOnce an organization completes the process of
forecasting HR requirements and availability, theforecasting HR requirements and availability, the
next step is its Comparisonnext step is its Comparison
• That would give idea about skill shortage orThat would give idea about skill shortage or
surplussurplus
• The outcome of the each comparison would beThe outcome of the each comparison would be
eithereither recruitmentrecruitment oror reductionreduction
• In case of shortage of labor, organization wouldIn case of shortage of labor, organization would
undertake HR activities like recruitment andundertake HR activities like recruitment and
selection, training and development, andselection, training and development, and
placement of employeesplacement of employees

38. 1–38
• In the event of a surplus, the organization mightIn the event of a surplus, the organization might
undertake reduction program like downsizing,undertake reduction program like downsizing,
voluntary retirement schemes, reduced workingvoluntary retirement schemes, reduced working
hours or days, and restricted overtimeshours or days, and restricted overtimes
 Requirements for Effective HR planningRequirements for Effective HR planning
(Self study)(Self study)

39. Sources of RecruitmentSources of Recruitment
1–39
Sources of Recruitment
Internal Sources –
Existing Employees
Former Employees
Employee Referrals
External Sources –
Employment Exchange
Outsourced to Recruitment
 agencies
Advertisement campus
Recruiting
Walk-ins, write-ins, &
Internet recruiting
Raiding or Poaching

40. 1–40
Internal SourcesInternal Sources –– Internal Recruitment usuallyInternal Recruitment usually
refers to filling open jobs with the current employees ofrefers to filling open jobs with the current employees of
the organization.the organization.
 The position applied for may represent a Promotion,The position applied for may represent a Promotion,
Transfer or even Demotion in few caseTransfer or even Demotion in few case
1.1. Existing EmployeesExisting Employees ––
 The usual method of creating a pool of internalThe usual method of creating a pool of internal
applicants is through job posting.applicants is through job posting.
 AA job postingjob posting refers to process of advertising availablerefers to process of advertising available
position to the employees.position to the employees.
 They evaluate job opportunities relative to their skills,They evaluate job opportunities relative to their skills,
experience, interests & career goals and indicate theirexperience, interests & career goals and indicate their
interest formally to their immediate supervisor orinterest formally to their immediate supervisor or
through the HR department.through the HR department.

41. 1–41
2.2. Former EmployeesFormer Employees ––
 It is now increasingly common to take backIt is now increasingly common to take back
employees who left the firm for various reasons.employees who left the firm for various reasons.
 this is because the ex – employees performance andthis is because the ex – employees performance and
attitude are well known to the organization and the riskattitude are well known to the organization and the risk
involved in choosing them is relatively less.involved in choosing them is relatively less.
3. Employee Referrals3. Employee Referrals–– the practice of the presentthe practice of the present
employees providing information about the candidatesemployees providing information about the candidates
who are willing to be considered for the presentwho are willing to be considered for the present
vacancies.vacancies.
 Referrals is the cost-effective source of recruitment.Referrals is the cost-effective source of recruitment.
 Employee referrals are also an effective tool to stemEmployee referrals are also an effective tool to stem
the tide of attrition.the tide of attrition.
 When friends work together they are less like to leaveWhen friends work together they are less like to leave
a company soon.a company soon.

42. 1–42
Evaluation of Internal SourcesEvaluation of Internal Sources
 MeritsMerits ––
 It helps the organization to offeringIt helps the organization to offering a careera career
development plansdevelopment plans to it’sto it’s employeesemployees..
 Internal candidates requireInternal candidates require less orientation & trainingless orientation & training
than outside ones.than outside ones.
 Internal recruitment can act asInternal recruitment can act as a good motivator anda good motivator and
moral booster.moral booster.
 It facilitatesIt facilitates better utilization of skills, experience andbetter utilization of skills, experience and
qualificationqualification of the existing employees.of the existing employees.
 It isIt is economical and less time consumingeconomical and less time consuming comparecompare
to eternal sources.to eternal sources.
 It canIt can enhance loyaltyenhance loyalty among the employees as itamong the employees as it
allows them to feel more secure about their future inallows them to feel more secure about their future in
the organizationthe organization

43. 1–43
Evaluation of Internal SourcesEvaluation of Internal Sources
 LimitationsLimitations ––
 It may restrict the options of recruiting a moreIt may restrict the options of recruiting a more
diverse workforce.diverse workforce.
 It may provide an organization with a betterIt may provide an organization with a better
applicant but not necessarily the best applicant as itapplicant but not necessarily the best applicant as it
may be hard to find the most suitable person for amay be hard to find the most suitable person for a
job within the organization itself.job within the organization itself.
 Too much emphasis on internal recruitment mayToo much emphasis on internal recruitment may
result in in – breeding, which may not be good forresult in in – breeding, which may not be good for
the future plans and prospects of the organization.the future plans and prospects of the organization.
 Internal recruitment can affect the unity & integrityInternal recruitment can affect the unity & integrity
of the organizationof the organization
 It may be difficult to infuse the organization withIt may be difficult to infuse the organization with
fresh talent and creativity if there is unduefresh talent and creativity if there is undue
dependence on internal recruitment.dependence on internal recruitment.

44. 1–44
External SourcesExternal Sources –– The EThe External source ofxternal source of
recruitment refer to reaching out to the external labourrecruitment refer to reaching out to the external labour
market to meet the labour requirements.market to meet the labour requirements.
1.1.Employment ExchangeEmployment Exchange –– employment exchangesemployment exchanges
have been established by the government to act as ahave been established by the government to act as a
liaison between job providers and job seekers.liaison between job providers and job seekers.
2.2. Outsourced to Recruitment agencies –Outsourced to Recruitment agencies –
Transforming a whole or a few parts of the recruitmentTransforming a whole or a few parts of the recruitment
process to an external HR consultant renderingprocess to an external HR consultant rendering
recruitment services is called outsourcing recruitment.recruitment services is called outsourcing recruitment.
3.3.Advertisements –Advertisements –
4.4.Campus Recruiting –Campus Recruiting –
5.5.Walk – ins and Write – insWalk – ins and Write – ins

45. 1–45
6.6. Internet RecruitingInternet Recruiting – Refers to placing an– Refers to placing an
advertisement on the internet for inviting applicationsadvertisement on the internet for inviting applications
from the potential applicants to fill the vacanciesfrom the potential applicants to fill the vacancies
specified.specified.
 Naukri.com, Monsterindia.com, Timesjobs.comNaukri.com, Monsterindia.com, Timesjobs.com
7.7. Raiding or Poaching –Raiding or Poaching – Refers to cajoling orRefers to cajoling or
attracting the employees of the rival organizations withattracting the employees of the rival organizations with
attractive offers.attractive offers.

46. 1–46
 Various Antipoaching Techniques.Various Antipoaching Techniques.
1.1. Co – Operation Agreements.Co – Operation Agreements.
2.2. Access restrictions.Access restrictions.
3.3. Mock Raids.Mock Raids.
4.4. Benchmarked HR Practices.Benchmarked HR Practices.
5.5. Retention Bonus.Retention Bonus.
6.6. Employee Contracts.Employee Contracts.
7.7. Tit – for – Tat ThreatsTit – for – Tat Threats
8.8. Empanelled search firms.Empanelled search firms.
9.9. Reporting Bonuses.Reporting Bonuses.
10.10. Information Security Protocol.Information Security Protocol.

47. 1–47
Evaluation of External SourcesEvaluation of External Sources
 MeritsMerits ––
 They enable an organization to generate a largeThey enable an organization to generate a large
pool of applicants.pool of applicants.
 The organization can adopt rigorous, competitiveThe organization can adopt rigorous, competitive
and uncompromising selection procedure to chooseand uncompromising selection procedure to choose
the requisite types of employees from the applicant’sthe requisite types of employees from the applicant’s
pool.pool.
 External sources provide an equal opportunity forExternal sources provide an equal opportunity for
participations to all types of individuals and allparticipations to all types of individuals and all
sections of the society in the selection process.sections of the society in the selection process.
 They allow an organization to bring in fresh talents,They allow an organization to bring in fresh talents,
adopt innovations in practice and modify the existingadopt innovations in practice and modify the existing
work culture.work culture.
 They enable organization to exploit labor marketThey enable organization to exploit labor market
conditions.conditions.

48. 1–48
 LimitationsLimitations ––
 The existing employees might be frustrated if theyThe existing employees might be frustrated if they
do not get adequate opportunities for promotions.do not get adequate opportunities for promotions.
 When compared with internal sources this sourcesWhen compared with internal sources this sources
are costly and time consuming.are costly and time consuming.
 Induction and socialization may not be smooth forInduction and socialization may not be smooth for
the new employees as they may face resistancethe new employees as they may face resistance
from the existing ones.from the existing ones.
 The outside candidate may be susceptible toThe outside candidate may be susceptible to
poaching and raiding by rival concerns as they maypoaching and raiding by rival concerns as they may
be less committed than the long serving existingbe less committed than the long serving existing
employees.employees.
 There is a greater possibility of hiring a wrongThere is a greater possibility of hiring a wrong
person from external sources.person from external sources.
Evaluation of External SourcesEvaluation of External Sources

49. 1–49
Selection ProcessSelection Process
Phase – 1 – Measurement
Verification of the accuracy and consistency of
selection Techniques.
Phase – 2 – Decision Making
Ensuring the completeness of employee data to make
accurate and uncompromising selection decision
Phase – 3 – Evaluation
Identifying the role and effectiveness of the selection
process from the organizational perspective.

50. 1–50
Selection ProcessSelection Process
1.1. Employment applications forms/blanksEmployment applications forms/blanks
2.2. Selection TestSelection Test
3.3. Selection InterviewSelection Interview
4.4. Reference checkReference check
5.5. Physical examinationPhysical examination
6.6. Job Offer.Job Offer.

51. 1–51
Selection TestsSelection Tests
 Selection testSelection test is a standardized assessment of ais a standardized assessment of a
sample but critical behavior of candidates to determinesample but critical behavior of candidates to determine
their suitability for the job.their suitability for the job.
 A test is a systematic procedure for comparing theA test is a systematic procedure for comparing the
behavior of two or more persons.behavior of two or more persons.
 One of the common ways to test the candidate is toOne of the common ways to test the candidate is to
test them psychologically.test them psychologically.
 A psychological test is standardized measure ofA psychological test is standardized measure of
behavior.behavior.

52. 1–52
Characteristics of Psychological TestCharacteristics of Psychological Test
1.1. Objectivity :Objectivity : Objectivity in test refers to the validityObjectivity in test refers to the validity
and reliability of the measuring tools.and reliability of the measuring tools.
 Reliability in test refers to their consistency.Reliability in test refers to their consistency.
 The validity refers to the correctness.The validity refers to the correctness.
1.1. Standardization :Standardization : it means that there is a uniformityit means that there is a uniformity
in the procedure followed in conducting the test.in the procedure followed in conducting the test.
2.2. SSample of behavior :ample of behavior : it refers to test contents thatit refers to test contents that
should predict the representative sample of eventualshould predict the representative sample of eventual
behavior of candidates.behavior of candidates.

53. 1–53
Usage of Psychological TestUsage of Psychological Test
 Selecting & Placing EmployeesSelecting & Placing Employees
 Determining their Career PlanDetermining their Career Plan
 Assessing their job performance and potentialAssessing their job performance and potential
 Counseling them in conflicting situation.Counseling them in conflicting situation.

54. 1–54
Types of Psychological TestTypes of Psychological Test
1.1. Ability test –Ability test – refers to the capacity of a person to do arefers to the capacity of a person to do a
particular Job.particular Job.
2.2. Intelligence (IQ) test –Intelligence (IQ) test – Measure the generalMeasure the general
intellectual abilities of the person.intellectual abilities of the person.
3.3. Aptitude Test –Aptitude Test – measure the latent talents of themeasure the latent talents of the
person that may be crucial to performing the jobperson that may be crucial to performing the job
successfully.successfully.
4.4. Achievement test –Achievement test – measure the knowledge gain bymeasure the knowledge gain by
a person in his/her job.a person in his/her job.
5.5. Personality test –Personality test – the sum of the characteristics of athe sum of the characteristics of a
person which reflect on his/her response to theperson which reflect on his/her response to the
particular situation.particular situation.

55. 1–55
Types of Psychological TestTypes of Psychological Test
6.6. Interest testInterest test –– The interest test know the interest,The interest test know the interest,
attitude and preference of a person towards the jobattitude and preference of a person towards the job
offered.offered.
7.7. Honesty or Integrity testHonesty or Integrity test – the questions are asked– the questions are asked
in such a way that the attitude and actual behavior ofin such a way that the attitude and actual behavior of
the candidates can be found out.the candidates can be found out.

56. 1–56
Evaluation of Psychological TestEvaluation of Psychological Test
 MeritsMerits ––
 Objective in EvaluationObjective in Evaluation
 Ideal for large GroupsIdeal for large Groups
 Predictor of Intangible talentsPredictor of Intangible talents
 Goal specific & target orientedGoal specific & target oriented
 Record for futureRecord for future
 LimitationsLimitations ––
 Lack of flexibilityLack of flexibility
 Unsuitability for smaller groupUnsuitability for smaller group

57. 1–57
Thank YouThank You