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BBA106_Human Resource Management

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CHANDIGARH UNIVERSITY Institute of Distance and Online Learning Course Development Committee Prof. (Dr.) R.S.Bawa Pro Chancellor, Chandigarh University, Gharuan, Punjab Advisors Prof. (Dr.) Bharat Bhushan, Director – IGNOU Prof. (Dr.) Majulika Srivastava, Director – CIQA, IGNOU Programme Coordinators & Editing Team Master of Business Administration (MBA) Bachelor of Business Administration (BBA) Coordinator – Dr. Rupali Arora Coordinator – Dr. Simran Jewandah Master of Computer Applications (MCA) Bachelor of Computer Applications (BCA) Coordinator – Dr. Raju Kumar Coordinator – Dr. Manisha Malhotra Master of Commerce (M.Com.) Bachelor of Commerce (B.Com.) Coordinator – Dr. Aman Jindal Coordinator – Dr. Minakshi Garg Master of Arts (Psychology) Bachelor of Science (Travel &Tourism Management) Coordinator – Dr. Samerjeet Kaur Coordinator – Dr. Shikha Sharma Master of Arts (English) Bachelor of Arts (General) Coordinator – Dr. Ashita Chadha Coordinator – Ms. Neeraj Gohlan Academic and Administrative Management Prof. (Dr.) R. M. Bhagat Prof. (Dr.) S.S. Sehgal Executive Director – Sciences Registrar Prof. (Dr.) Manaswini Acharya Prof. (Dr.) Gurpreet Singh Executive Director – Liberal Arts Director – IDOL © No part of this publication should be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission of the authors and the publisher. SLM SPECIALLY PREPARED FOR CU IDOL STUDENTS Printed and Published by: TeamLease Edtech Limited CONTACT NO:- 01133002345 For: CHANDIGARH UNIVERSITY Institute of DistaCnUceIDaOnLdSOELnFliLnEeALReNaINrnGinMgATERIAL (SLM)


First Published in 2020 All rights reserved. No Part of this book may be reproduced or transmitted, in any form or by any means, without permission in writing from Chandigarh University. Any person who does any unauthorized act in relation to this book may be liable to criminal prosecution and civil claims for damages. This book is meant for educational and learning purpose. The authors of the book has/have taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person in any manner whatsoever. In the even the Authors has/ have been unable to track any source and if any copyright has been inadvertently infringed, please notify the publisher in writing for corrective action. 2 CU IDOL SELF LEARNING MATERIAL (SLM)

CONTENT UNIT -1 Introduction to human resource Management..................................................................... 4 UNIT -2 human resource planning....................................................................................................... 16 UNIT –3 job analysis............................................................................................................................... 26 UNIT –4 recruitment and selection ...................................................................................................... 36 UNIT –5 employee selection................................................................................................................... 44 UNIT –6 placement and induction ..................................................................................................... 51 UNIT –7 Training and development .................................................................................................... 60 UNIT –8 Performance Appraisal.......................................................................................................... 74 UNIT -9 Industrial Relations................................................................................................................. 85 UNIT –10 Industrial disputes ................................................................................................................ 99 UNIT –11 employee grievances ........................................................................................................... 108 UNIT –12 quality of work life.............................................................................................................. 118 3 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT -1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Structure Learning Objectives Introduction Nature of human resource management Scope of human resource Need and importance of HRM Functions of HRM. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe nature of human resource management  Identify scope of human resource  State the need and importance of HRM  List the functions of HRM INTRODUCTION The emergence of human resource management can be attributed to the writings of the authors giving importance to human factor. Lawrence Appley remarkably said “Management is personnel administration”. This view is partially true as management is concerned with the efficient and effective use of both human as well as non-human resources. Thus human resource management is only a part of the management process. At the same time, it must be recognised that human resource management is inherent in the process of management. This function is performed by all the managers. A manager to get the best of his people must undertake the basic responsibility of selecting people who will work under him and to help develop, motivate and guide them. However, he can take the help of the specialised services of the personnel department in discharging this responsibility. The term ‘human resource management’ was being used by Peter Drucker in early1950s without any special meaning, and usually another word for ‘personnel management. Human resource 4 CU IDOL SELF LEARNING MATERIAL (SLM)

management (HRM) is concerned with the ‘people’ dimension in management. Every organisation is made of people, acquiring their services, developing their skills, motivating them to higher levels of performance, and ensuring that they continue to make their commitment to the organisations. The terms \"Personnel Management\" has been replaced by the term \" Human Resource Management \" as a description of the processes involved in managing people in organizations. Hence, we can say that (HRM) is more than Personnel Management, and it includes employing people, their development & utilization also maintaining and compensating their services according to the job and organizational requirement. Northcott considers human resource management as an extension of general management, that of prompting and 2 stimulating every employee to make his fullest contribution to the purpose of a business. Human resource management is not something that could be separated from the basic managerial function. It is a major component of the broader managerial function. French Wendell, defines ―Human resource management as the recruitment, selection, development, utilisation, compensation and motivation of human resources by the organisation‖. Human resource management (HRM) is an approach to the management of people, based on four fundamental principles. First, human resources are the most important assets an organisation has and their effective management is the key to its success. Second, this success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans. Third, the corporate culture and the values, organisational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence. This culture must, therefore, be managed which means that organisational values may need to be changed or reinforced, and that continuous effort, starting from the top, will be required to get them accepted and acted upon. Finally, HRM is concerned with integration - getting all the members of the organisation involved and working together with a sense of common purpose. NATURE OF HUMAN RESOURCE MANAGEMENT HRM has the following features: 1. A part of Management Discipline: HRM is a part of management discipline. It is not a discipline in itself but is only a field of study. HRM, being a part of management process, draws heavily from management concepts, principles and techniques and apply these in the management of human resources. 2. Universal Existence: 5 CU IDOL SELF LEARNING MATERIAL (SLM)

HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organization. 3. Concerned with People: HRM is all about people at work, both as individuals and groups. It tries to put people on assigned job in order to produce goods results. The resultant gains are used to reward people and motivate them towards further improvement is productivity. 4. Action oriented: HRM focuses attention on action, rather than on record keeping, written procedures or rules. The problems of employees are solved through rational policies. 5. Directed towards Achievement of Objectives: HRM is directed towards achievement of organizational objectives by providing tools and techniques of managing people in the organization effectively. 6. Integrating Mechanism: HRM tries to build and maintain cordial relation between people working at diffe rent levels in the organization. It tries to integrate human assets in the best possible manner for achieving organizational goals. 7. Development Oriented: HRM intends to develop the full potential of employees. The reward structure is turned to the needs of employees. Training is provided to improve the skill of employees. Every attempt is 8. Continuous Process: HRM is not a one short deal. It cannot be practiced only one hour each day or one day a week. It requires constant alertness and awareness of human relations and their importance in every day operations. 9. Comprehensive Function: HRM is concerned with managing people at work. It covers all types of people at all levels in the organization. It applies to workers, supervisors, officers, manager and other types of personnel. SCOPE OF HUMAN RESOURCE 1. Personnel Aspect 6 CU IDOL SELF LEARNING MATERIAL (SLM)

Human Resource Planning – It is the process by which the organization identifies the number of jobs vacant. Job Analysis and Job Design – Job analysis is the systematic process for gathering, documenting, and analyzing data about the work required for a job. Job analysis is the procedure for identifying those duties or behaviour that define a job. Recruitment and Selection – Recruitment is the process of preparing advertisements on the basis of information collected from job analysis and publishing it in newspaper. Selection is the process of choosing the best candidate among the candidates applied for the job. Orientation and Induction – Making the selected candidate informed about the organization’s background, culture, values, and work ethics. Training and Development – Training is provided to both new and existing employees to improve their performance. Performance Appraisal – Performance check is done of every employee by Human Resource Management. Promotions, transfers, incentives, and salary increments are decided on the basis of employee performance appraisal. Compensation Planning and Remuneration – It is the job of Human Resource Management to plan compensation and remunerate. Motivation – Human Resource Management tries to keep employees motivated so that employees put their maximum efforts in work. 2. Welfare Aspect – Human Resource Management have to follow certain health and safety regulations for the benefit of employees. It deals with working conditions, and amenities like - canteens, creches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial Relation Aspect – HRM works to maintain co-ordinal relation with the union members to avoid strikes or lockouts to ensure smooth functioning of the organization. It also covers - joint consultation, collective bargaining, grievance and disciplinary procedures, and dispute settlement. 7 CU IDOL SELF LEARNING MATERIAL (SLM)

NEED AND IMPORTANCE OF HRM Some of the reasons for need of human resource management are: 1. For Good Industrial Relations 2. Create Organizational Commitment 3. Meeting with Changing Environment 4. Change in Political Philosophy 5. Enhanced Pressure on Employees and 6. Meeting Research and Development Requirements. Human resource management tries to create a better understanding between management and employees. It assists employees in attaining individual and organizational goals. This approach has been gaining the attention of management professionals in the last decade or so. 1. For Good Industrial Relations: There is large spread unrest, labour- management disputes, lack of trust in each other, increasing expectations of workers, growing of militancy in trade unions etc. These factors have generated a gap among workers and managements. Both sides are blaming of exploitation by the other side. In the absence of cordiality in an organization, the performance of workers is adversely affected. HRM approach is needed to bring proper understanding among workers and management. The workers are trained and developed to meet their individual and organizational objectives. The workers are made to understand that various managerial actions will assist them in achieving their aspirations and organization’s goal. 2. Create Organizational Commitment: There is a humanization of work environment in industrially advanced countries like Japan, U.S.A., and Germany etc. Globalization of economy has exposed Indian industries to international competition. An improvement in efficiency and quality of work can come only when workers develop organizational commitment. HRM approach helps in creating a sense of pride for the organization among the employees. 3. Meeting with Changing Environment: The business environment is changing rapidly. Technological improvements have revolutionized production processes. Automation has been introduced in office operations. Good communication methods have revolutionized important areas of business. Therefore, there is a need to cope with new and changing situation. The operational efficiency of workers must cope up with a revolutionary change in the technology which necessitates a new approach to manpower. 4. Change in Political Philosophy: 8 CU IDOL SELF LEARNING MATERIAL (SLM)

Political philosophy has also undergone a substantial change all over the world. The new approach is to develop human resources properly for making their better use. In India, Central Government has created a separate ministry as Human Resource Development and put it under a Senior Cab inet Minister. This shows the importance given to human resources in India, which opened up a door for a fresh approach to human resource development in the industrial sector too. 5. Enhanced Pressure on Employees: The technological innovations have made possible the use of sophisticated machines. The installation, monitoring of machines, maintenance and controlling of operations etc., require large number of trained and skillful personnel. Technicians, repairers and service people are also necessary. The more the technical development and automation, the more would be the dependence on human beings. There should, therefore, be greater need for humane approach to manpower. Similarly, use of more capital-intensive methods would result in greater productivity of men necessitating greater motivating and greater human resources approach to management. 6. Meeting Research and Development Requirements: Fresh initiatives and emphasis on research and development in the realm of industry also led to a new policy of human resource development to cope with the increasing demand for technically capable people. As a result of this, a need arose for a new approach to human resources. Importance of Human Resource Management: Human resources are the valuable assets of the corporate bodies. They are their strength. To face the new challenges on the fronts of knowledge, technology and changing trends in global economy needs effective human resource management. Significance of HRM can be seen in three contexts: organizational, social and professional. Organization Significance: HRM is of vital importance to the individual organization as a means for achieving their objectives. It contributes to the achievement of organizational objectives in the following ways: 1. Good human resource practice can help in attracting and retaining the best people in the organization. 2. Developing the necessary skills and right attitudes among the employees through training, development, performance appraisal, etc. 9 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Securing willing cooperation of employees through motivation, participation, grievance handling, etc. 4. Effective utilization of available human resources. 5. Ensuring that enterprise will have in future a team of competent and dedicated employees. Social Significance: Social significance of HRM lies in the need satisfaction of personnel in the organization. Since these personnel are drawn from the society, their effectiveness contributes to the welfare of the society. Society, as a whole, is the major beneficiary of good human resource practice. i. Employment opportunities multiply. ii. Eliminating waste of human resources through conservation of physical and mental health. iii. Scare talents are put to best use. Companies that pay and treat people well always race ahead of others and deliver excellent results. Professional Significance: Professional significance of HRM lies in developing people and providing healthy environment for effective utilization of their capabilities. This can be done by: 1. Developing people on continuous basis to meet challenge of their job. 2. Promoting team-work and team-spirit among employees. 3. Offering excellent growth opportunities to people who have the potential to rise. 4. Providing environment and incentives for developing and utilizing creativity. FUNCTIONS OF HRM The definition of HRM is based on what managers do. 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, viz. (1) Managerial functions, and (2) Operative functions (1) Managerial Functions: 10  Planning: CU IDOL SELF LEARNING MATERIAL (SLM)

Planning is a predetermined course of actions. It is a process of determining the organisational goals and formulation of policies and programmes for achieving them. Thus, planning is future oriented concerned with clearly charting out the desired direction of business activities in future. Forecasting is one of the important elements in the planning process. Other functions of managers depend on planning function.  Organising: Organising is a process by which the structure and allocation of jobs are determined. Thus, organising involves giving each subordinate a specific task establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates, and so on.  Staffing: TOs is a process by which managers select, train, promote and retire their subordinates This involves deciding what type of people should be hired, recruiting prospective employees, selecting employees, setting performance standard, compensating employees, evaluating performance, counselling employees, training and developing employees.  Directing/Leading: Directing is the process of activating group efforts to achieve the desired goals. It includes activities like getting subordinates to get the job done, maintaining morale motivating subordinates etc. for achieving the goals of the organisation.  Controlling: It is the process of setting standards for performance, checking to see how actual performance compares with these set standards, and taking corrective actions as needed. (2) Operative Functions: The operative, also called, service functions are those which are relevant to specific department. These functions vary from department to department depending on the nature of the department Viewed from this standpoint, the operative functions of HRM 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:  Procurement: It involves procuring the right kind of people in 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.  Development: 11 CU IDOL SELF LEARNING MATERIAL (SLM)

This function involves 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. These functions may comprise training to employees, executive training to develop managers, organisation development to strike a better fit between organisational climate/culture and employees.  Compensation: Compensation function involves determination of wages and salaries matching with contribution made by employees to 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.  Maintenance: It is concerned with protecting and promoting employees while at work. For this purpose, virus benefits such as housing, medical, educational, transport facilities, etc. are provided to the employees. Several social security measures such as provident fund, pension, gratuity, group insurance, etc. are also arranged. It is important to note that the managerial and operative functions of HRM are performed in conjunction with each other in an organisation, be large or small organisations. Having discussed the scope and functions of HRM, now it seems pertinent to delineate the HRM scenario in India. SUMMARY  Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization.  It is a pervasive force, action-oriented, individually-oriented, development-oriented, future- focused, and integrative in nature and is a comprehensive function.  HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced.  HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways.  HRM aims at achieving organizational goals meet the expectations of employees; develop the knowledge, skills and abilities of employees, improve the quality of working life and manage human resources in an ethical and socially responsible manner.  Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. 12 CU IDOL SELF LEARNING MATERIAL (SLM)

KEY WORDS/ABBREVIATIONS  Ability: A competence to perform an observable behavior or a behavior that results in an observable product.  Compliance: Adherence to laws, court decisions, regulations, executive orders, and other legal mandates governing affirmative action and equal employment opportunity.  HRM: A process of bringing people and organisations together so that the goals of each one is met, effectively and efficiently.  HR Policies: HR policies are a set of written guidelines for human resource decisions.  Management: The process of efficiently achieving the objectives of the organisation with and through people.  Payroll: These are policies that are related to salary and wage administration including deductions, pay advances, and time keeping.  Policy: A policy is a predetermined course of action established as a guide towards accepted objectives and strategies of the organization.  Policy Manual: A policy manual is a means of communication with employees; it is first a way to communicate to employees the management rules and guidelines of the organization are documented and hence act as reference tools.  System: Two or more parts working together as an organised whole with clear boundaries.  Skill: A present, observable competence to perform a learned act.  Workforce Diversity: Workforce diversity means that the organizations are becoming more and more heterogeneous in nature.  Workplace Guidelines: These policies are quite varied and their purpose range from defining certain work arrangements such as flex time and telecommuting to offering guidelines on the use of company assets and record retention.  Work behavior: Any activity performed to achieve the objectives of the job. Work behaviors involve observable (physical) components and unobservable (mental) components. A work behavior consists of the performance of one or more tasks. Knowledge, skills, and abilities are not behaviors, although they may be applied to work behaviors. LEARNING ACTIVITY 1. What functions does a human resource department normally perform? ……………………………………………………………………………………………..…… ………………………………………………………………………………………………….. 2. With business going global and competition becoming intense today HR has travelled a long way from its conventional role as a support function to being a strategic business partner in the present technology leveraged era. Discuss this statement by citing suitable examples from your 13 CU IDOL SELF LEARNING MATERIAL (SLM)

own organization. ……………………………………………………………………………………………..…… ………………………………………………………………………………………………….. UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. Define HRM? Explain the scope of HRM 2. Identify and discuss HRM functions? 3. Elaborate about the nature of HRM and its relevance in present scenario. 4. What are the criteria that determine whether an organization’s HRM practices are effective? 5. Identify the typical need of human resource management in today’s competitive world. 6. Critically analyse the evolution and present state of human resource management in India. B. Multiple Choice Questions 1. Human Resource Management (HRM) functions are broadly classified into managerial functions and operative functions. The basic managerial functions of HRM are a. Planning, organizing, directing and controlling b. Job analysis, human resource planning, job specification and directing c. Induction, human resource planning, job analysis and controlling d. Induction, planning, organizing and recruitment 2. are the resources that provide utility value to all other resources. a. Men b. Material c. Money d. Machinery 3. Identify the managerial function out of the following functions of HR managers. a. procurement b. development c. organizing d. performance appraisal 4. Which of the following is an example of operative function of HR managers? 14 a. planning b. organizing c. procurement d. controlling CU IDOL SELF LEARNING MATERIAL (SLM)

5. The scope of human resource management includes a. procurement b. development c. compensation d. All of the above Answers: 1-a, 2-a, 3-c. 4-c, 5-d REFERENCES  Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill.  Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India.  Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books.  Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India.  Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill.  Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House.  Dipak Kumar Bhattacharyya, Human Resource Management, Excel Books.  French, W.L. (1990), Human Resource Management, 4th ed., Houghton Miffin, Boston.  H.J. Bernardin, Human Resource Management, Tata McGraw Hill, New Delhi, 2004.   management- 1294285.html  page1.html 15 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT -2 HUMAN RESOURCE PLANNING Structure Learning Objectives Introduction Definition of HRP Objectives of HRP Process of Human Resource Planning. Importance of Human Resource Planning. Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will understand:  Define human resource planning  Identify objectives of human resource planning  Describe the process of human resource planning  Outline the importance of human resource planning INTRODUCTION Human resource planning is the predetermination of the future course of action chosen from a number of alternative courses of action for procuring, developing, managing, motivating, compensating, career planning, succession planning and separating human element of enterprise. It determines a conscious choice of staffing decisions in an organization. HRP is the process of forecasting an organization’s future demand for, and supply of, the right type of people, in the right number. After HRP is done, recruitment and selection can be started. HRP helps in achievement of organisation by providing the right type and the right type of personnel. 16 CU IDOL SELF LEARNING MATERIAL (SLM)

DEFINITION OF HRP Human resource or manpower planning is, \"the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through planning, a management strives to have the right number and the right kinds of people at the right places, at the right time to do things, which results in both the organization and individual receiving the maximum long-range benefits. Stainer has defined human resource or manpower planning as, \"Strategy for the acquisition, utilization, improvement and preservation of an enterprise's human resources. It relates to establishing job specification or the quantitative requirements of job determining the number of personnel required and developing sources of manpower\" In the words of Leon C. Megginson, human resource planning is “an integration approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organisational objectives and satisfy the individual’s needs and goals of organisational members.” Features of Human Resource Planning: From the above definitions, the following features of human resource planning can be explained: 1. Well Defined Objectives: Human resource needs are planned on the basis of company’s goals. HRP is a strategy for the acquisition, use, improvement and preservations of organisation’s human resources. It deals with policies and programs that are used in coordinating supply and demand, in order to attain the desired goals. 2. Determining Human Resource needs: Human resource plan must incorporate the human resource needs of the enterprise. The thinking will have to be done in advance so that the persons are available at a time when they are required. For this purpose, an enterprise will have to undertake recruiting, selecting and training process also. 3. Manpower Planning: It helps in forecasting manpower requirement in the organisation. It helps an organisation to staff itself with right people at the right time 4. Optimum utilization of resources: 17 CU IDOL SELF LEARNING MATERIAL (SLM)

The basic purpose of HRP is to make optimum use of organisation’s current and future human resources. It is an integral part of corporate planning, since there can be no human resource plan without a corporate plan 5. Creating Proper Work Environment: Besides Forecasting and employing personnel, HRP also ensures that good working conditions are created. Employees are satisfied with their jobs and also should like to work in the organisation. OBJECTIVES OF HUMAN RESOURCE PLANNING (HRP)  To ensure optimum utilization of resources  To recruit and forecast human resource.  To link HRP with organisational planning.  To predict the employee turnover and try to minimize turnover and also to fill up consequent vacancies.  To meet the requirements of expansion, diversification etc.  To anticipate the impact of technology on work, existing employees and future human resource requirements.  To progress the knowledge, skill, standards, ability and discipline etc.  To appraise the surplus or shortage of human resources and take actions accordingly.  To maintain pleasant industrial relations by maintaining optimum level and structure of human resource.  To minimize imbalances caused due to non-availability of human resources of right kind, right number in right time and right place. PROCESS OF HUMAN RESOURCE PLANNING With the expansion of business, adoption of complex technology and professional management techniques, the process of HR planning has assumed greater significance. It consists of the following stages. 1. Analysing Organizational Plans and Deciding on Objectives Before undertaking the HR planning of an organization, the short-term and long-term objectives should be analysed. The process of HR planning should start with analysing the organizational plans and programmes. They help in forecasting the demand for human resources as it provides the quantum of future work activity. 2. Analysing Factors for Manpower Requirements 18 CU IDOL SELF LEARNING MATERIAL (SLM)

The existing job design and analysis may be reviewed thoroughly keeping in view the future capabilities, knowledge and skills of present employees. The job design and analysis should reflect the future human resources and organizational plans. The factor for manpower requirement can be analysed in two ways: (a) Demand Forecasting – Forecasting the overall HR requirements in accordance with the organizational plans. (b) Supply Forecasting - Obtaining the data and information about the present inventory of human resources and forecast the future changes in present human resource inventory. 3. Developing Employment Plans After determining the number of personnel for each job in the organization, the HR department has to spell out the job description and job specification. (a) Job Description: A job description generally describes the work to be performed, the responsibilities involved, the skill or training required, conditions under which the job is done, relationships with other jobs and personal requirements on the job. (b) Job Specification: Job specification is an output of job description, and states the minimum acceptable qualifications that the newcomer must possess to perform the job satisfactorily and successfully. 4. Developing Human Resource Plans Net HR requirements in terms of number and components are to be determined in relation to the overall HR requirement. After estimating the supply and demand of human resources, the management starts the adjustment. When the internal supply of employees is more than the demand, that is, there is a human resource surplus; then the external requirement is stopped. If there is a human resource deficit, then the planners have to rely on external sources. Steps in Human Resource Planning: Human resource planning is a process through which the right candidate for the right job is ensured. For conducting any process, the foremost essential task is to develop the organizational objective to be achieved through conducting the said process. Six steps in human resource planning are presented in Figure 2.1. 19 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Analyzing Organizational Objectives: The objective to be achieved in future in various fields such as production, marketing, finance, expansion and sales gives the idea about the work to be done in the organization. 2. Inventory of Present Human Resources: From the updated human resource information storage system, the current number of employees, their capacity, performance and potential can be analyzed. To fill the various job requirements, the internal sources (i.e., employees from within the organization) and external sources (i.e., candidates from various placement agencies) can be estimated. 3. Forecasting Demand and Supply of Human Resource: The human resources required at different positions according to their job profile are to be estimated. The available internal and external sources to fulfill those requirements are also measured. There should be proper matching of job description and job specification of one particular work, and the profile of the person should be suitable to it. 4. Estimating Manpower Gaps: Comparison of human resource demand and human resource supply will provide with the surplus or deficit of human resource. Deficit represents the number of people to be employed, whereas surplus represents termination. Extensive use of proper training and development programme can be done to upgrade the skills of employees. 5. Formulating the Human Resource Action Plan: The human resource plan depends on whether there is deficit or surplus in the organization. Accordingly, the plan may be finalized either for new recruitment, training, interdepartmental transfer in case of deficit of termination, or voluntary retirement schemes and redeployment in case of surplus. 6. Monitoring, Control and Feedback: 20 CU IDOL SELF LEARNING MATERIAL (SLM)

It mainly involves implementation of the human resource action plan. Human resources are allocated according to the requirements, and inventories are updated over a period. The plan is monitored strictly to identify the deficiencies and remove it. Comparison between the human resource plan and its actual implementation is done to ensure the appropriate action and the availability of the required number of employees for various jobs. IMPORTANCE OF HUMAN RESOURCE PLANNING 1. Future Personnel Needs: – Planning defines future personnel needs and this becomes the basis of recruiting and developing personnel. The planning facilitates the preparation of appropriate manpower budget for each department. This in turn helps in controlling manpower costs by avoiding shortages or excesses in manpower supply. 2. Coping with change: – Jobs are becoming more and more knowledge- oriented. This has resulted in a changed profile of HR. HRP enables an enterprise to cope with changes in competitive forces, markets, technology, products, and government regulations. 3. Creating Highly Talented Personnel: – Employees can be trained, motivated and developed in advance and this helps in meeting future needs for high- quality employees. 4. Protection of Weaker Sections: - In matters of employment and promotions, sufficient representation needs to be given to SC/ST candidates, physically handicapped, children of the socially and politically oppressed and backward-class citizens. These groups enjoy a given percentage of jobs, notwithstanding the constitutional provision which guarantees equal opportunities for all. A well-conceived personnel planning programme would protect the interests of such groups. 5. International Strategies: – International expansion strategies depend upon HRP. With the growing trend towards global operation, the need for HRP will grow, as well as the need to integrate HRP more closely into the organization’s strategic plans. HRP will grow increasingly important as the process of meeting staffing needs from foreign countries and the attendant cultural, language, and developmental considerations grow complex. 6. Foundation for Personnel Functions: – Systematic HRP forces top management of an organisation to participate actively in total HR management functions. When there is active involvement of top management, they will appreciate the real value of human resources in achieving organisational effectiveness. 7. Increasing investments in Human Resources: –The organisations make huge investments and so it compels proper Human resource planning for achieving effectiveness. An employee who gradually develops his/her skills and abilities becomes further more valuable resource. 21 CU IDOL SELF LEARNING MATERIAL (SLM)

SUMMARY  Human resources planning is defined as the process for identifying an organisation's current and future human resource requirements, developing and implementing plans to meet these requirements and monitoring their overall effectiveness.  HR Planning is essentially the process of getting the right number of qualified people into the right job at the right time so that an organisation can meet its objectives.  Organisations use HRP as a means of achieving greater effectiveness.  Human resource planning determines a conscious choice of patterns of acquiring human resources in an organization. In order to achieve the objectives of the organization, the HR planner should be concerned with the timing and scheduling of planning of human resources.  Man power planning can also be used as an important aid in framing the training and development programmes for the employees because it takes into account the anticipated changes in the HR requirements of organizations. With the expansion of business, adoption of complex technology and professional management techniques, the process of human resource planning has assumed a great significance.  Human resource planning is a process of human resource development. The objective of human resource planning is to provide continuity of efficient manning for the total business and optimum use of manpower resources, although that optimum utilization of people is heavily influenced by organisation and corporate culture.  Human resource planning constitutes an integral part of corporate plan and serves the organisational purposes in more than one way.  Human resource planning influences corporate strategy and is in turn influenced by it. The planning process may not always give exact forecasts and to be effective it should be a continuous process with provision for control and review KEY WORDS/ABBREVIATIONS  HRP: Human Resource Planning  Human Resource Planning: The process of getting the right number of qualified people into the right job at the right time, so that an organisation can meet its objectives.  Inventory: Stock taking of the current employees in the organization.  Investigation: It is the primary stage of HRP in any organisation. In this stage, organisations try to develop their awareness about the detailed manpower scenario with a holistic view, looking at their current manpower.  Reengineering: Radical, quantum change in an organization. 22 CU IDOL SELF LEARNING MATERIAL (SLM)

LEARNING ACTIVITY 1. Assuming you are a HRD Manager in an organisation, you need to create an HR staffing plan. Briefly explain what criteria will be undertaken and why? ……………………………………………………………………………………………..…………… ………………………………………………………………………………………………………. 2. Briefly describe the practices of human resource planning of your organisation. List out the reasons, why this practice is being adopted. ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. Define and explain the term Human resource Planning 2. Outline the entire process of HRP 3. State and explain the reasons behind growing importance of HRP in an organization 4. Identify and discuss objectives of Human resource planning 5. Suppose you are going to HR plan, what objectives would you consider? B. Multiple Choice Questions 1. HRP involves planning for long term needs, rather than for temporary replacement needs. Which of the following steps of HRP process needs to take into consideration the revenue position of the organization? a. Analysing the impact of the organizational strategy and objectives b. Involving the line managers in determining the human resource needs c. Forecasting the quantity and quality of human resources d. Matching the current human resources supply in the organization with the numbers required in the future 2. HR professionals must be careful to avoid some of the common pitfalls in the process of Human Resource Planning (HRP). To design and implement a good HR plan, the HR manager has to have an understanding of which of the following? a. The process of human resource planning b. Human resource and marketing management c. Human resource management and finance management d. All the areas of business 23 CU IDOL SELF LEARNING MATERIAL (SLM)

3. The beginning point for any human resource planning process is the examination of the current human resource status by making a a. Strategic plan b. Human resource inventory c. Product evaluation d. Analysis of customer demands 4. Which of the following is not the part of human resource planning? a. Analysing existing HR b. Implementation of HR plan c. Recruitment d. Forecasting HR 5. is the process of forecasting an organization’s future demand for, and supply of, the right type of people, in the right number a. Human resource Management b. Human Resource Planning c. Procurement d. Recruitment Answers: 1-c, 2-d, 3-b, 4-c, 5-b. REFERENCES  Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill.  Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India.  Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books.  Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India.  Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill.  Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House.  Duari, Pravin. (2010). Human Resource Management. New York: Pearson Education.  Dessler, G. (2013). Human Resource Management. Delhi: Prentice-Hall.  Flippo, Edwin B. (1966). Personnel/Human Resource Management. New Delhi: Tata McGraw Hills.  Haldar, U.K. And Sarkar. (2012). Human Resource Management. New Delhi: Oxford & IBH. 24 CU IDOL SELF LEARNING MATERIAL (SLM)


UNIT –3 JOB ANALYSIS Structure Learning Objectives Introduction Meaning Importance Process of Job analysis Job description Job specification Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to:  Explain the meaning & importance of job analysis  Discuss process of job analysis  State the components of job description  Identify the components of job specification INTRODUCTION Job analysis is the process by means of which a description of the methods and procedures of doing a job, the physical conditions under which the job is done and the relation of the job to other jobs and conditions of employment are developed. The job description defines the scope of a job, its major responsibilities as well it’s positioning in the organization. Recruitment is another critical HR function. It is the process of identifying qualified and skilled persons for actual or anticipated vacancies in the organizations. It is important for the organisation to have good recruitment policies. Selection is a process of selecting a certain number of people, from the large number of applicants, who are most likely to perform their jobs with maximum effectiveness and remain with the company. 26 CU IDOL SELF LEARNING MATERIAL (SLM)

MEANING OF JOB ANALYSIS Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specifications. Job analysis is a systematic exploration of the activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities and accountabilities of a job. A job is a collection of tasks that can be performed by a single employee to contribute to the production of some products or service provided by the organization. Each job has certain ability recruitments (as well as certain rewards) associated with it. Job analysis is the process used to identity these requirements. Job analysis is a process of collecting information about a job. Job analysis involves the process of identifying the nature of a job (job description) and the qualities of the likely jobholder (job specification). Job analysis results in job description and job specification. A job can be analysed only if it has been designed and someone is already performing it. Thus, job analysis is performed upon on-going jobs. Jobs analysis is a detailed and systematic study of jobs to know the nature and characteristics of people to be employed for each job. It is a process of discovering and identifying the pertinent information relating to the nature of a specific job. Job analysis consists of two areas:  Job Description  Job Specification IMPORTANCE OF JOB ANALYSIS Job analysis is important for the organisations due to following reasons: 1. Human Resource Planning: Job analysis determines the demand of a job in terms of responsibilities and duties and then translates these demands in terms of skill, qualities and other human attributes. It helps in determining the number and kinds of job and qualifications needed to fill these jobs. 2. Recruitment: Information related to the tasks, responsibilities, knowledge and skills serves as a realis tic basic for hiring people. Job vacancy is advertised on the basis of job description and job specification. Job analysis provides understanding of what an employee is expected to do on the job. Such understanding serves as the basic for meaningful forecast of job performance. 27 CU IDOL SELF LEARNING MATERIAL (SLM)

3. Selection of Personnel: Job specification is the standard of personnel against which a job applicant can be compared. The contents of the specification provide the basis for the construction of a selection procedure. 4. Training and Development: Training and development programmers are determined to help the employees to gain the skill and knowledge to perform the tasks assigned to them efficiently. This purpose can be achieved conveniently if the employees have been taught through training and development. The job information is useful to those who administer training and development programmes. It helps them in determining the content and subject-matter needed in such programmes. 5. Organisation audit: Job analysis process requires an organisation audit as job information obtained by job analysis often reveals instances of poor organization in terms of the factors affecting job design. 6. Job evaluation: To calculate the worth of a job, information concerning the job is provided by the job description process. 7. Job design: Job analysis information helps in identifying the nature of job, redesigning of jobs by industrial engineers through time and motion study, work specification, work improvement and work measurement. 8. Performance appraisal: Performance of the employees can be appraised objectively, if clear cut standards of performance for every job are established. 9. Career planning: Job analysis provides a clear idea of opportunities in terms of career paths and jobs available in the organisation. With the help of such understanding, employees and the organisation can make efforts for career planning and career development. PROCESS OF JOB ANALYSIS Let’s discuss the job analysis process and find out how it serves the purpose. Job Analysis Process 28 CU IDOL SELF LEARNING MATERIAL (SLM)

 Identification of Job Analysis Purpose: Well any process is futile until its purpose is not identified and defined. Therefore, the first step in the process is to determine its need and desired output. Spending human efforts, energy as well as money is useless until HR managers don’t know why data is to be collected and what is to be done with it.  Who Will Conduct Job Analysis: The second most important step in the process of job analysis is to decide who will conduct it? Some companies prefer getting it done by their own HR department while some hire job analysis consultants. Job analysis consultants may prove 29 CU IDOL SELF LEARNING MATERIAL (SLM)

to be extremely helpful as they offer unbiased advice, guidelines and methods. They don’t have any personal likes and dislikes when it comes to analyze a job.  How to Conduct the Process: Deciding the way in which job analysis process needs to be conducted is surely the next step. A planned approach about how to carry the whole process is required in order to investigate a specific job.  Strategic Decision Making: Now is the time to make strategic decision. It’s about deciding the extent of employee involvement in the process, the level of details to be collected and recorded, sources from where data is to be collected, data collection methods, the processing of information and segregation of collected data.  Training of Job Analyst: Next is to train the job analyst about how to conduct the process and use the selected methods for collection and recoding of job data.  Preparation of Job Analysis Process: Communicating it within the organization is the next step. HR managers need to communicate the whole thing properly so that employees offer their full support to the job analyst. The stage also involves preparation of documents, questionnaires, interviews and feedback forms.  Data Collection: Next is to collect job-related data including educational qualifications of employees, skills and abilities required to perform the job, working conditions, job activities, reporting hierarchy, required human traits, job activities, duties and responsibilities involv ed and employee behavior.  Documentation, Verification and Review: Proper documentation is done to verify the authenticity of collected data and then review it. This is the final information that is used to describe a specific job.  Developing Job Description and Job Specification: Now is the time to segregate the collected data in to useful information. Job Description describes the roles, activities, duties and responsibilities of the job while job specification is a statement of educational qualification, experience, personal traits and skills required to perform the job. Thus, the process of job analysis helps in identifying the worth of specific job, utilizing the human talent in the best possible manner, eliminating unneeded jobs and setting realistic performance measurement standards. JOB DESCRIPTION Job Description gives details of the job in respect of duties, responsibilities and other aspects. It is an overall written summary of task requirements. According to Spriegel and Lansburgh, “job description emphasises the job requirement, whereas the job specification sets forth requirements sough in the person who is to perform the work”. 30 CU IDOL SELF LEARNING MATERIAL (SLM)

Job description means describing the details of the job to be performed (job contents). It gives various details or pertinent facts about the job to be assigned or performed. The details given in job description are: (1) Nature and title of the job. (2) Duties required to be performed. (3) Location of the job, (4) Machines, tools and material required to be used. (5) Type of supervision received and given. (6) Relation with the other jobs in the organisation. (7) Working conditions for the job. (8) Hazards connected with the job. (9) Opportunities for promotion. According to Edwin Flippo, Job description is “an organised factual statement of the duties and responsibilities of a specific job. It should tell what it to be done, how it is done, and why.” JOB SPECIFICTION Job specification may define as a catalogue of various qualities which a person doing a job should possess. Job specification is usually drawn up with the help of supervisory staff or with the help of psychologists. Job Specification gives details regarding the candidate who is supposed to do the job like qualifications, experience, qualities, aptitude, family background etc. It is an overall written summary of employee requirements. Job Specification (also called man specification) is based on job description. It’s states the minimum acceptable human qualifications and qualities required for performing a job. Such requirement is usually as noted below: (1) Educational and professional qualification. (2) Practical experience required if any. (3) Personality and mental qualities required. (4) Physical fitness. (5) Interpersonal relations skills required SUMMARY  Jobs are important to individuals as well as organisations. They are subject to change. Job Analysis is a systematic investigation of the tasks, duties and responsibilities necessary to do a job. Job analysis information is useful for a variety, of organization purposes ranging from human resource planning to career counselling. 31 CU IDOL SELF LEARNING MATERIAL (SLM)

 The end products of job analysis are (a) Job descriptions, a written statement of what the job holder does, and (b) job specifications, which list the knowledge, skills and abilities (KSAs) required to perform a job satisfactorily  Job analysis is designed to provide a reliable method of quickly and effectively identifying critical competencies (i.e. knowledge, skills and abilities) and establishing the qualifications for a job or role.  Job analysis – The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for the job by collecting the following types of information: work activities; human behaviours; machines, tools, equipment, and work aids; performance standards; job context; and human requirements.  Job description – A list of a job’s duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities – one product of a job analysis.  Job specification – A list of a job’s “human requirements”: the requisite education, skills, knowledge, and so on – another product of a job analysis. KEY WORDS/ABBREVIATIONS  Job Analysis: Job analysis entails detailed study of a job with a view to writing detailed position descriptions with respect to different positions. Information procured issued is used in interviews and devising written selection tests, internal placements, as per requirements of a job and performance appraisal of employees. Research techniques are used for job analysis.  Job Description: Job description are prepared based on the information gathered in job analysis. Job descriptions entail written specifications of the nature of job, duties and qualifications required. Information is issued in job advertisements; application forms are devised based on the requirements specified therein.  Job Specification: Job specification also emerges out of a job analysis. Job Specification lists the behavior stipulations and accordingly, specifications, with respect to a job. In other words, character traits expected of prospective incumbents are listed as job specifications  Job: A group of positions similar in their significant duties such as technical assistant, computer programmers.  Job Design: The Job Design is about the agreement about the profile of the ideal job candidate and the agreement about the skills and competencies, which are essential.  Job Classification: The grouping of jobs on some basis such as the nature of work done or the level of pay. For example, skilled, semiskilled and unskilled; Grade I, II and III officers in a Bank. 32 CU IDOL SELF LEARNING MATERIAL (SLM)

 Position: A collection of tasks and duties which are performed by one person. For example, the PA to Principal receives visitors, takes dictation, operates computer, answers query, attends to complaints and helps students.  Task: An identifiable work activity carried out for a specific purpose. For example: typing a letter. LEARNING ACTIVITY 1. “Smaller organisations do not need job analysis for their jobs because most of their employees conduct a myriad of activities, too far-reaching for a standard job analysis”. Give your view point. …………………………………………………………………………………………….…………… …………………………………………………………………………………………………………. 2. Discuss the sources of errors in your own organisation or any organisation you are familiar with, that can distort or render job analysis information inaccurate. ……………………………………………………………………………………………..…………… ………………………………………………………………………………………………………….. UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. What is job analysis? Describe the techniques used for analysing jobs. 2. What is job description? Describe its features. 3. How would you prepare a job description? Explain through an example. 4. 'Although systematic in nature, a job description is still at best a subjective result of a job analysis.’ Discuss. 5. If you have to do job analysis, List down the steps you would follow? 6. Distinguish between job description and job specification. Outline necessary precautions you will take while preparing them. B. Multiple Choice Questions 1. An assessment that defines the jobs and behaviours necessary to perform the job is known as a a. job description b. job specification c. goal-oriented job definition d. job analysis 33 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Job analysis is concerned with which of the following human resource planning aspects? a. deciding how well someone is performing his or her job b. what behaviours are necessary to perform a job c. hiring someone to do a job d. estimating pay on job level in an organization 3. A written statement of what a job holder does, how it is done, and why it is done is known as . a. job specification b. process departmentalization c. goal-oriented job definition d. job description 4. A list of the minimum qualifications or requirements needed by an employee to perform a job is known as a . a. job analysis b. job description c. responsibility factor list d. job specification 5. Which of the following is not a component of job design? a. job enrichment b. job rotation c. job reengineering d. job outsourcing Answers: 1-d, 2-b. 3-d, 4-d, 5-d REFERENCES  Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill.  Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India.  Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books.  Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India. 34 CU IDOL SELF LEARNING MATERIAL (SLM)

 Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill.  Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House.  Beddoe Robin Forbes (1988). How to prepare a job evaluation: Job description, working time Analysts  ILO (1986), Job Evaluation, ILO, GENEVA.  Saiyadain, M.S (2003) Human Resource Management (3rd ed), New Delhi: Tata Mc Graw  35 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –4 RECRUITMENT AND SELECTION Structure Learning Objectives Introduction Sources of recruitment Advantages and limitations of recruitment Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to:  Describe the sources of recruitment  List the advantages of recruitment  Identify the limitations of recruitment INTRODUCTION Recruitment is the development and maintenance of adequate manpower sources. It involves the creation of a pool of available human resources from which the organisation can draw when it needs additional employees. Recruiting is the process of attracting applicants with certain skills, abilities, and other personal characteristics to job vacancies in an organisation. According to Denerley and Plumblay (1969), recruitment is concerned with both engaging the required number of people, and measuring their quality. It is not only a matter of satisfying a company’s needs, it is also an activity which influences the shape of the company’s future. The need for recruitment may arise out of: (i) vacancies due to promotion, transfer, termination, retirement, permanent disability, or death; (ii) creation of vacancies due to business expansion, diversification, growth, and so on. The function of recruitment is to locate the sources of manpower to meet job requirements and specification. Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. Effective supply of varied categories of candidates for filling the jobs will depend upon several factors such as the state of labour market, reputation of the enterprise and allied factors. The internal factors include wage and salary policies, the age composition of existing working force, promotion and retirement policies, turnover rates and the kind 36 CU IDOL SELF LEARNING MATERIAL (SLM)

of personnel required. External determinants of recruitment are cultural, economic and legal factors. Recruitment has been regarded as the most important function of personnel administration. Unless the right type of people is hired, even the best plans, organisation charts and control systems will be of no avail. A company cannot prosper, grow, or even survive without adequate human resources. Need for trained manpower in recent years has created a pressure on some organisations to establish an efficient recruitment function. SOURCES OF RECRUITMENT Once the job analysis is completed and the job specification or behavioural competencies are identified, the next stage is to consider how to attract people who meet the requirements. A key decision is about whether to recruit internally or externally. Before an organisation actively begins recruiting applicants, it should have knowledge of the sources of supply and methods of tapping them. The sources of supply do not remain constant but vary from time to time. The sources of supply of manpower can be divided into two groups — internal and external sources. Internal sources relate to the existing working force of an enterprise while external sources relate to the employment exchanges, colleges, institutes, and universities. The particular sources and means by which workers are recruited vary greatly. It depends upon management policy, the types of jobs involved, the supply of labour relative to demand, and labour market. In deciding which recruitment source to use, consider (a) the nature and size of the company; (b) the level of vacancies to be filled up; (c) the number of vacancies to be filled up; (d) budget allocation; and (e) the time period to fill the vacancy. Internal Sources: Internal sources are the most obvious sources. These include personnel already on the pay-roll of an organisation, i.e., its present working force. Whenever any vacancy occurs, somebody from within the organisation is upgraded, transferred, promoted or sometimes demoted. Internal recruitment seeks applicants for position from among those who are currently employed. The use of internal search, on the whole, has some merits:  It improves the morale of employees.  The employer is in a better position to evaluate those presently employed than outside candidates. 3. It promotes loyalty among the employees, for it gives them a sense of job security and opportunities for advancement.  It is less expensive and job openings can be filled more quickly.  Internal candidates are more familiar with organisational policies and practices, and thus require less orientation and training. However, this system suffers from certain defects as well.  It often leads to inbreeding, and discourages new blood from entering an organisation.  There are possibilities that internal sources may “dry up”, and it may be difficult to find the requisite personnel from within an organisation.  As promotion is based on seniority, the danger is that really capable hands may not be chosen. 37 CU IDOL SELF LEARNING MATERIAL (SLM)

Internal recruitment can lead to problems, however, when a position becomes vacant, many employees may be considered for that slot. The likes and dislikes of the management may also play an important role in the selection of personnel. Usually, internal sources can be used effectively if the number of vacancies is not very large, adequate employee records are maintained, and employees have prepared themselves for promotions. Because internal methods are often not sufficient to supply a suitable pool of applicants, most organisations make use of external sources to attract potential recruits. External recruitment brings in individuals from outside. External Sources: Among the external sources are included the employment agencies, educational and technical institutes, casual labour, trade unions, application files and other sources. External sources provide the requisite type of personnel for an organisation, having skill, training and education up to the required standard. Since persons are recruited from a large mar ket, the best selection can be made without any distinction of caste, sex or creed. However, this system suffers from what is called the “brain drain.” The advantages of internal recruitment are basically the disadvantages of external recruitment. Labour market considerations are very important in external search. A labour market is a geographic area within which workers seek employment and employers recruit workers. It is the place where the forces of supply and demand interact. A labour market tends to be unstructured for the most part; it is unorganised. The procedures by which a company recruits workers and the methods by which workers go about obtaining jobs are highly variable. Lack of labour mobility is still another characteristic of a labour market. One important reason for lack of mobility is that the average working man possesses quite incomplete and inaccurate knowledge of job opportunities in his labour market. Wage rate data are not generally made public. A labour market is characterised by a great diversity of wage rates for the same occupations. This variation in wages for the same kind of work is caused by many factors. Principal ones are differences among the employers in their ability to pay, productivity, and management attitude towards wage rates. Certain non-wage factors such as greater job security, may still attract and hold the employees. An organisation must decide whether to recruit employees internally or externally. External recruitment is limited primarily to entry-level jobs. Jobs above the entry level are usually filled with current employees through promotions. Promotional opportunities lead to reduced turnover, increased job satisfaction, and better job performance. 38 CU IDOL SELF LEARNING MATERIAL (SLM)


SUMMARY  Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings. Certain influences restrain (the freedom of) managers while choosing a recruiting source such as: image of the company, attractiveness of the job, internal policies, budgetary support, government policies, etc.  Recruitment is influenced by a variety of environmental factors - economic, social, technological, political, legal, etc. The sources of recruitment may be broadly divided into two categories: internal sources and external sources. Both have their own merits and demerits  Recruitment forms a significant function in the personnel process. It involves seeking and attracting qualified candidates from a wide variety of internal and external sources for job vacancies.  There is little agreement over the relative effectiveness of these sources; each has unique advantages and disadvantages that depend on the particular position to be filled.  Questions that are addressed in the recruitment process include: “What are the sources of qualified personnel?” “How are these qualified personnel to be recruited?”, “Who is to be 40 CU IDOL SELF LEARNING MATERIAL (SLM)

involved in the recruitment process?” “And what inducement does the organisation have to attract qualified personnel?” Indeed, without a sufficient flow of qualified candidates to build up an efficient working force, the enterprise cannot function efficiently.  An effective recruitment programme necessitates a well-defined policy, a proper organisational structure, effective procedures for locating sources, proper techniques and methods for tapping them, and constant assessment and improvement. KEY WORDS/ABBREVIATIONS  A Competence based Approach: It means that the competencies defined for a role are generally used as the framework for selection process.  Agency sites: These are run by special recruitment agencies. Candidates register online but may be expected to discuss their details in person before their details are forwarded to the employer.  Attracting Candidates: This is primarily a matter of identifying, evaluating and using the most appropriate sources of applicants.  Employee Leasing: Hiring permanent employees of another company who possess certain specialized skills on lease basis to meet short-term requirements- although not popular in India.  Job Design: The Job Design is about the agreement about the profile of the ideal job candidate and the agreement about the skills and competencies, which are essential.  Recruitment: The process of searching the candidates for employment and motivating them to apply for jobs in the Organization.  Selection: Screening employees to choose most suitable candidate for the job.  Outsourcing: Transferring the selection process to a third party.  Poaching: Attracting experienced employees from competing firms.  E-Recruitment: Taking the help of internet and databases for recruitment process. LEARNING ACTIVITY 1. What are the important methods used in your organization for recruiting management trainees, managerial, and supervisory personnel? ………………………………………………………………………………………………………… ………………………………………………………………................................................................ 2. Recall your first appointment to the present organization and write below which of the above- mentioned sources of recruitment was used by the organization. ………………………………………………………………………………………………………… 41 CU IDOL SELF LEARNING MATERIAL (SLM)

…………………………………………………………………………………………………………. UNIT END QUESTIONS (MCQ AND DESCRIPTIVE) A. Descriptive Types Questions 1. What is recruitment? Outline the advantages of recruiting from internal sources and external sources. 2. Distinguish between internal and external sources of recruitment. 3. Discuss critically the various sources of recruitments. How can an organisation evaluate the worth of these sources? 4. For recruiting diverse workforce, what criteria do you suggest to adopt? 5. Outline the legal, economic, social and political considerations in recruitment. 6. Which factors will restrain managers' freedom to recruit and select a candidate of his/her choice? B. Multiple Choice Questions 1. The process of choosing the most suitable candidate for a job among the available applicants is called a. Selection b. Recruitment c. Human resource planning d. Job analysis 2. Which best defines the process of locating and encouraging potential employees to apply for jobs? a. Recruitment b. Human resource planning c. Job analysis d. Training 3. All of the following are sources of internal recruiting except: a. Transfers b. Promotions c. Advertisements d. job posting 42 CU IDOL SELF LEARNING MATERIAL (SLM)

4. To give an overview of the organization; To give an overview of the HR policies and processes and introduction to the Facilities team, IT team and other relevant teams per the location of joining. Following are objectives of: Select the correct option: a. Induction b. Selection c. Recruitment d. Placement Answers: 1-a, 2-b, 3-a, 4-c, 5-a. REFERENCES  Aswathappa, K. (2002). Human Resource Management. New Delhi: Tata McGraw-Hill.  Dessler, G. (2012). Human Resource Management. New Delhi: Prentice-Hall of India.  Rao, V.S.P. (2002). Human Resource Management: Text and cases. New Delhi: Excel Books.  Decenzo, A. & Robbins P Stephen. (2012). Personnel/Human Resource Management. New Delhi: Prentice-Hall of India.  Ivancevich, M John. (2014). Human Resource Management. New Delhi: Tata McGraw-Hill.  Mamoria, C.B. (2002). Personnel Management. Mumbai: Himalaya Publishing House.  Madhurima Lall and Sakina Qasim Zaidi, Human Resource Management, Excel Books.  Rao P.S. (2008), Essentials of Human Resource Management and Industrial. Relations, Text cases and Games, Himalaya Publication      43 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT –5 EMPLOYEE SELECTION Structure Learning Objectives Introduction Meaning Process of selection Summary Key Words/Abbreviations Learning Activity Unit End Questions (MCQ and Descriptive) References LEARNING OBJECTIVES After studying this unit, you will be able to:  Define selection  Discuss the meaning of selection  Outline the steps in the selection process INTRODUCTION Selection is the most crucial stage in the process of acquiring human resources in an organisation. Selection is next to recruitment. It is the process of choosing the most suitable candidates (properly qualified and competent) out of many interested candidates. It is a process of selecting the best and rejecting the rest. This selection is also called “head hunting”. This means searching right candidate for the specific job in the organisation. In this lengthy selection process, interested applicants are differentiated in order to identify those with a greater likelihood of success in a job. They are selected and appointed. Selection process assumes that the applicants are more than the number of candidates to be selected. In this unit, you will learn the concept, objectives, importance and steps in the process of selection. MEANING OF SELECTION The Business Dictionary defines employee selection as the “process of interviewing and evaluating candidates for a specific job and selecting an individual for employment based on certain criteria.” The purpose of selection is to pick up the most suitable candidate who would meet the requirements of the job in an Organization to the best possible way. To meet this goal, 44 CU IDOL SELF LEARNING MATERIAL (SLM)

the Company obtains and assesses information about the applicants in terms of age, qualifications, skills and experience. The needs of the job are matched with the profile of candidates. How w ell an employee is matched to a job is very important because it affects directly the amount and quality of employee’s work. Any mismatch in this regard can cost an Organization a great deal of money, time and trouble, especially, in terms of training and operating costs. In course of time, the employee may find the job distasteful and leave in frustration. The size of the labour market, the image of the Company, the place of posting, the nature of job and compensation package may influence the aspirants who are likely to respond to the recruiting efforts of the Company. Through the process of recruitment, the Company tries to locate prospective employees and encourages them to apply for vacancies at various levels. Recruiting, thus, provides a pool of app licants for selection. Selecting the wrong employees can lead to all sorts of problems down the line. For instance, employees may fail to perform their jobs satisfactorily, they may leave soon after being hired because they are simply not suitable for the Company, or they may require extensive training and mentoring, which you may not have the time to provide. Employees who are suitable for your Company, and have the skills and expertise required to do the job for which they are hired, are much more likely to meet expectations and stay in the position for a considerable time. On the other hand, employees who are chosen poorly and lack the previously mentioned qualities will likely be terminated or leave on their own, often soon after hiring. Your Company will then be back to square one, trying to fill the empty position, which can be a costly endeavour. Meanwhile, other good employees often suffer because they must take on the duties of the empty position until it is filled once again. SELECTION PROCESS The sequence of steps in selection process may also vary from job to job and Organization to Organization. For example, some Organizations may give more importance to testing while others give more emphasis to interviews and reference checks. Similarly, a single brief selection interview might be enough for applicants for lower level positions, while applicants for managerial jobs might be interviewed by a number of people. There are eight steps in the selection process followed by many Companies. The steps are reception, screening interview, application blank, selection test, selection interview, medical test, reference checks, and finally the hiring decision. Look at figure 5.1 which shows the steps in selection process. 45 CU IDOL SELF LEARNING MATERIAL (SLM)

Fig 5.1 Steps in selection process Reception: A Company is known by the people it employs. In order to attract people with talents, skills and experience a Company has to create a favourable impression on the applicants’ right from the stage of reception. Whoever meets the applicant initially should be tactful and able to extend help in a friendly and courteous way. Screening interview: A preliminary interview is generally planned by large organizations to cut the cost of selection by allowing only eligible candidates to go through the further stages in selection. A junior executive from the Personnel Department may elicit responses from the applicants on important items determining the suitability of an applicant for a job such as age, education, experience, pay expectations, aptitude, location choice etc. Application blank: Application blank or form is one of the most common methods used to collect information on the various aspects of the applicants’ academic, social, demographic, work related background and references. It is a brief history sheet of a candidate’s background. Selection testing: Selection test attempts to assess intelligence, abilities, personality trait and performance through simulation tests including work sampling and the tests administered at assessment centres. A test is a standardized, objective measure of a person’s behaviour, performance or attitude. It tries to measure individual differences in a scientific way giving very little room for individual bias and interpretation. Some of the commonly used employment tests are: Intelligence Tests: These are mental ability tests. They measure the incumbent’s learning ability and the ability to understand instructions and make judgments. Aptitude Test: Aptitude test measures an individual’s potential to learn certain skills clerical, mechanical, mathematical, etc. Personality Test: It refers to methods of measuring personality factors and the relationship between personality factors and actual job criteria. 46 CU IDOL SELF LEARNING MATERIAL (SLM)

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