HUMAN RESOURCE MANAGEMENT

UNIT 1

Introduction:
Human resource is the most important asset of any Organisation and unlike other
resources the human resources could be developed and increased to a limitless extent. Human
resources mean the energies, skills, knowledge and physical strength of the people at work.
Human resources comprise the value of the productive capacity of entire work force of any
Organisation. To be specific and: brief, human resource refers to the aggregate of knowledge,
skill, experience and health of employees working in any Organisation. And development of
human resource accounts for the development of human side of the organisation. The word
HUMAN has five letters and each letter speak of a distinct characteristic of human being as
under:
H Hears
U Understands
M Moves
A Adjusts
N Negotiates
Men and resources are involved in all activities. Men were taken for granted for a long time.
Greater accent was given to resources, production machinery and top managers. But during the
last few decades, with modern large scale production of innumerable products for a wide market,
the importance of human resources and their development has come to the fore. The importance
of human resources to any organization need not be over-emphasized. Human resource is the
wealth of a nation and an organization. “From the national point of view, human resources are
knowledge, skills, creative abilities, talents and attitudes obtained in the population; whereas
from the viewpoint of the individual enterprise they represent the total of the inherent abilities,
acquired knowledge and skills as exemplified in the talents and aptitudes of its employers”. The
development process is wide and varied. In this lesson, let us understand the importance and
concept of Human Resources Management. (HRM).

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Definition of Human Resource Management:

According to Flippo, ‘Personnel Management, or say, human resources management is

the planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance, and separation of human resources to the end, that
individual, organisational and social objectives are accomplished”.

The National Institute of Personal Management (NIPM) of India has defined human
resources – personal management as “that part of management which is concerned with people at
work and with their relationship within an enterprise. Its aim is to bring together and develop
into an effective organization of the men and women who make up enterprise and having regard
for the well – being of the individuals and of working groups, to enable them to make their best
contribution to its success”.

According to Decenzo and Robbins, “HRM is concerned with the people dimension” in
management. Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to higher levels of performance and ensuring that they
continue to maintain their commitment to the organization is essential to achieve organsational
objectives. This is true, regardless of the type of organization –government, business, education,
health or social action”.

HRM can be defined as a process of procuring, developing and maintaining competent

resources in the organization so that goals of an organization are achieved in an effective and
efficient manner. In other words HRM is an art of managing people at work in such a manner
that they give best to the organisation.

Significance of HRM
Human resources are the most precious asset of an organization. They are the activators of non-
human resources, means for developing competitive advantages and sources of creativity.

Ghoshal outlines the role of HRM in managing an organization in the following lines.
“Indian Companies have spruced up their strategic thinking; they have even moved a generation
ahead with their originations. But they still have manager who have been shaped by old models.

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They are essentially a group of first-generation managers whose definitions of roles and tasks,
personal skills and competencies, ideas and beliefs about management have been shaped by an
earlier model. You cannot manage third generation strategies with second generation
organizations and first-generation managers to meet the needs of second-generation
organizations and third generations strategic thinking”.

Evolution of HRM
Evolution of the concept of HRM is briefed hereunder:
The historical evolution of HR can be drawn into six stages:
Stage I: Pre-Industrial Era (1400-1700 AD)
Stage II: Industrial Revolution and Factory System (1700-1900 AD)
Stage III: Scientific Management, Welfare Work and Industrial Psychology (1900-1935 AD)
Stage IV: Golden Age of Industrial Relations and Personnel Management Maintenance Function
(1935-1970)
Stage V: Control of Labour Tradition (1970-1990)
Stage VI: Professional Tradition (1990- till date)

Early Phase
Though it is said that Human Resource Management is a discipline of recent growth, it has had
its origin dating back to 1800 BC.
1. For example, the minimum wage rate and incentive wage plans are included in the Babylonian
Code of Hammurabi around 1800 BC.
2. The Chinese, as early as 1650 BC, had originated the principle of division of labour and they
understood labour turnover even in 400 BC.
3. Kautilya in India (in his book Arthasastra) made reference to various concepts like job
analysis, selection procedures, executive development, incentive system and performance
appraisal.

Stage I: Pre-Industrial Era (1400-1700 AD)

Beginning around 1400 AD and continuing until 1700 AD. This period is marked by an absence
of any formal Human Resource Management function within the organization. Several dramatic

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changes occurred during this first stage that represent seeds from which modern Human
Resource Management later grew. First, there was cessation of feudalism, release of labour from
land and beginning of free employment relationship on which modern labour markets are based.
Second, there was a shift from subsistence agriculture to a commercial mixed economy, the rise
of urban economy, a diffusion economic control and distribution of wealth and income. Third,
there was a spectacular growth of towns and villages along with a middle class that included
skilled craftsmen and merchants who were the forerunners of factory owners.

Stage II: Industrial Revolution and Factory System (1700-1900 AD)

The Industrial relations began in 18th century in the UK, in 19th century in the USA and in the
second half of 20th century in India. It was made possible by the replacement of human effort
and skill by the work of machines. One of the contributions of industrial relations was the
development of the ‘factory’ system. Factories greatly expanded production and created a new
class of workers and managers. It brought about division of work. It necessitated supervising
large number of workers. With the advent of factory system, personnel practices became
autocratic, based on Commodity concept of Labour. Labour was purchased at terms designed to
maximize the employer’s profit. Consequently, there was a total neglect of “Human Factor”; the
focus was upon materials, market and production.

Stage III: Scientific Management, Welfare Work and Industrial Psychology (1900-1935 AD)
Scientific Management and Welfare Work represent two separate and concurrent movements
that began in the 19th century and along with contribution from Industrial Psychology, merged
around the time of World War I to form the field of Human Resource Management. Scientific
management represents an effort to deal with labour and management inefficiencies through
reorganisation of production methods and rationalization of work. Welfare work is defined as
anything done for comfort and improvement, intellectual or social for the employees over and
above wages paid, which is not the necessity of industry, not required by law. It represents
efforts to deal with labour problems by improving workers’ conditions. Industrial psychology
represented the application of psychological principles towards increasing the efficiency of
industrial workers. Major Developments during this Stage:
1881-1891: Factories Act of 1881 and 1891 was passed showing concern for the worker’s

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welfare. These acts were limited to working hours of women and children.
1919: All India Trade Union Congress (AITUC) was formed.
International Labour Organisation was established as an autonomous organ of the League of
Nations in 1919. It has its headquarters at International Labour Office in Geneva, Switzerland.
The main objectives of social justice include:
(a) It adopted an International Labour Convention and recommended to protect the worker’s
claims in the event of the insolvency of their employer.
(b) It elaborated resolutions on the role of enterprises in employment growth, employment policy
as a component of overall development and the rights of migrant workers.

Stage IV: Golden Age of Industrial Relation and Personnel Management Maintenance Function
(1935-1970)
After the World War I, there was great depression. Following the depression, there was an
increased need for the practice of Human Resource Management as a result of a growth in unions
and collective bargaining. Currently, there was a shift in emphasis towards the Industrial
Relation Function of Human Resource Management. During the period from 1945 to 1970, the
primary focus of the employment relationship was on industrial relations and this human
resource management function rose in prominence. The pro-union legislation was followed by
World War II, which created an extraordinary demand for labour, resulted in unprecedented
union prestige and fueled a phenomenal growth in union membership.
The industrial relation side of human resource management experienced its golden age between
1948 and 1958. The general focus of human resource management was on industrial relations
because the primary need of many organizations was to operate in collective bargaining
framework of labour relations.
Major changes during the Period:
1. The first step was the enactment of Industrial Disputes Act, 1947, which not only provides for
the establishment of permanent machinery for the settlement of industrial dispute but also makes
these awards binding and legally enforceable.
2. Another development was setting up of Indian Labour Conference— a tripartite body to
investigate industrial relation problems in India. It was constituted with the objective of
establishing co-operative between government, employers and trade unions.

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3. Another important feature was change in attitude of government towards labour and their
problems. Many labour laws were enacted to protect the interests of industrial workers during
1947 to 1956. These laws cover many issues concerning labour such as seniority, wage rates,
paid holidays, disciplinary matters, social security etc.

Stage V: Control of Labour Tradition (1970-1990)

The institution of the trade union, which is a product of capitalist industrialization, emerged in
Britain and other developed countries in the West in the 19th century, basically to protect against
the injustice and exploitation meted out to workers by the owners of Capital during
industrialization. Labour movement in many countries started its own political parties and
engaged in struggle at both the political and economic fronts. Gradually, over the years, the
labour class got integrated into the larger society with the acceptance of their demands by the
employers, first for collective bargaining and then for worker’s participation in management.
This led to their rise to prominence and power in industry and society in the 20th century. But
trade unions witnessed significant loss of membership during the 1980s and 1990s.

Stage VI: Professional Tradition (1990-till Date)

With the passage of time, personnel management has become mature and professionalized.
Professional management is that management where decision-making rests with professional
managers, where there has been a divorce between capital and control and where owners of
business are functionless owners.
Specialized formal education: It requires advanced, specialized formal education and training.
Besides, they should also have specialized in some discipline of management (like production,
finance, marketing, personnel etc.) At this stage, personnel management became a professional
field of management.
Academic Qualification of Personnel Manager: An occupation in order to be called as a
profession should possess advanced specialized formal education and training.
1. Qualification varies from organization to organization and from one state to another state of a
country. It has undergone several changes from time to time. The list of qualification includes
Post Graduate degree or diploma in Social Science, Sociology, Social Work, Personnel
Management and Industrial Relation, Labour Welfare, Labour Laws, MBA with specialization in

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Human Resource Management and Industrial Relations.
2. There is no specific educational qualification prescribed for the post of Personnel Management
in India. Technical managers without any experience or qualification are posted as Personnel
Managers in public sector organizations like Indian railways, BHEL, SAIL. There has been
increased importance to acquire knowledge or degree for the post of Human Resource manager.

Following are the characteristics of professional institution:

1. Professional bodies: A profession is organized as a body with its own experts. The
professionals have developed several administrative societies, associations and institutions,
which have a large membership of those who have qualified in personnel affairs. The National
Institute of Personnel Management, the Indian Labour Economics Society, All India
Management Association, International Personnel Management Association and American
Society of Personnel Administration are some of such bodies.
2. Members of the profession must always maintain an attitude towards their work and society,
be interested, in continued acquisition of skills and knowledge, have a sense of trusteeship,
individual initiative and a right to expert and received financial recognition.
3. Code of Ethics: Various professions like Medicine, Accountancy have ethical codes. But the
personnel profession does not have such ethical codes. It cannot, therefore, be concluded, from
the above analysis, that personnel management in India completely possesses the characteristics
to be called as a profession. The situation may change in the years ahead, where organization
requirements for professionally qualified people might increase.

NATURE OF HUMAN RESOURCE MANAGEMENT

The nature of the human resource management has been highlighted in its following features:
1. Inherent Part of Management: Human resource management is inherent in the process of
management. This function is performed by all the managers throughout the organisation rather
that by the personnel department only. If a manager is to get the best of his people, he must
undertake the basic responsibility of selecting people who will work under him.
2. Pervasive Function: Human Resource Management is a pervasive function of management. It
is performed by all managers at various levels in the organisation. It is not a responsibility that a
manager can leave completely to someone else. However, he may secure advice and help in

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managing people from experts who have special competence in personnel management and
industrial relations.
3. Basic to all Functional Areas: Human Resource Management permeates all the functional
area of management such as production management, financial management, and marketing
management. That is every manager from top to bottom, working in any department has to
perform the personnel functions.
4. People Centered: Human Resource Management is people centered and is relevant in all
types of organisations. It is concerned with all categories of personnel from top to the bottom of
the organisation. The broad classification of personnel in an industrial enterprise may be as
follows : (i) Blue-collar workers (i.e. those working on machines and engaged in loading,
unloading etc.) and white-collar workers (i.e. clerical employees), (ii) Managerial and non-
managerial personnel, (iii) Professionals (such as Chartered Accountant, Company Secretary,
Lawyer, etc.) and non-professional personnel.
5. Personnel Activities or Functions: Human Resource Management involves several functions
concerned with the management of people at work. It includes manpower planning, employment,
placement, training, appraisal and compensation of employees. For the performance of these
activities efficiently, a separate department known as Personnel Department is created in most of
the organisations.
6. Continuous Process: Human Resource Management is not a one shot‘ function. It must be
performed continuously if the organisational objectives are to be achieved smoothly.
7. Based on Human Relations: Human Resource Management is concerned with the motivation
of human resources in the organisation. The human beings can‘t be dealt with like physical
factors of production. Every person has different needs, perceptions and expectations. The
managers should give due attention to these factors. They require human relations skills to deal
with the people at work. Human relations skills are also required in training performance
appraisal, transfer and promotion of subordinates.

Personnel Management VS Human Resource Management

Contemporary Human Resource Management, as a part and parcel of management function,
underscores strategic approach to management in areas of acquisition, motivation, and
management of people at work.

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 Human Resource Management derives its origin from the practices of the earlier
personnel management, which assisted in the management of people in an organisation setup.
Human Resource Management leverages setting up the systems and procedures for ensuring
efficiency, controlling and providing equality of opportunities for all working for the
organisation.
Human Resource Management (HRM) differs from Personnel Management (PM) both in
scope and orientation. HRM views people as an important source or asset to be used for the
benefit of organisations, employees and society. It is emerging as a distinct philosophy of
management aiming at policies that promote mutuality-mutual goals, mutual respect, mutual
rewards and mutual responsibilities. The belief is that policies of mutuality will elicit
commitment, which in turn, will yield both better economic performance and greater Human
Resource Development (HRD). Though a distinct philosophy, HRM cannot be treated in
isolation. It is being integrated into the overall strategic management of businesses. Further,
HRM represents the latest term in the evolution of the subject.
There are several similarities between Human Resource Management (HRM) and
Personnel Management (PM) (a) Both models emphasise the importance of integrating
personnel/HRM practices with organisational goals. (b) Both models vest Personnel/HRM firmly
in line management. (c) Human Resource Management (HRM) and Personnel Management
(PM) both models emphasise the importance of individuals fully developing their abilities for
their own personal satisfaction to make their best contribution to organisational success. (d) Both
models identify placing the right people into the right jobs as an important means of integrating
personnel/HRM practice with organisational goals.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

According to Scott, Clothier and Spriegal, ―The objectives of Human Resource
Management, in an organisation, is to obtain maximum individual development, desirable
working relationships between employers and employees and employers and employees, and to
affect the moldings of human resources as contrasted with physical resources‖. The basic
objective of human resource management is to contribute to the realization of the organizational
goals. However, the specific objectives of human resource management are as follows:
(i) To ensure effective utilization of human resources, all other organizational

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 resources will be efficiently utilized by the human resources.
(ii) To establish and maintain an adequate organizational structure of relationship
among all the members of an organization by dividing of organization tasks into
functions, positions and jobs, and by defining clearly the responsibility,
accountability, authority for each job and its relation with other jobs in the
organization.
(iii) To generate maximum development of human resources within the organization
by offering opportunities for advancement to employees through training and
education.
(iv) To ensure respect for human beings by providing various services and welfare
facilities to the personnel.
(v) To ensure reconciliation of individual/group goals with those of the organization
in such a manner that the personnel feel a sense of commitment and loyalty
towards it.
(vi) To identify and satisfy the needs of individuals by offering various monetary and
non-monetary rewards.
In order to achieve the above objectives, human resource management undertakes the following
activities: (i) Human Resource Planning, i.e., determining the number and kinds of personnel
required to fill various positions in the organisation.
(ii) Recruitment, selection and placement of personnel, i.e., employment function.
(iii) Training and development of employees for their efficient performance and growth.
(iv) Appraisal of performance of employees and taking corrective steps such as transfer from one
job to another.
(v) Motivation of workforce by providing financial incentives and avenues of promotion.
(vi) Remuneration of employees. The employees must be given enough wages and fringe
benefits to achieve higher standard of living and to motivate them to show higher productivity.
(vii) Social security and welfare of employees.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT.

The main functions of human resource management are classified into two categories:
(a) Managerial Functions and (b) Operative Functions

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(a) Managerial Functions Following are the managerial functions of Human Resources
Management.
1. Planning: The planning function of human resource department pertains to the steps
taken in determining in advance personnel requirements, personnel programmes, policies etc.
After determining how many and what type of people are required, a personnel manager has to
devise ways and means to motivate them.
2. Organization: Under organisation, the human resource manager has to organise the
operative functions by designing structure of relationship among jobs, personnel and physical
factors in such a way so as to have maximum contribution towards organisational objectives. In
this way a personnel manager performs following functions : (a) preparation of task force; (b)
allocation of work to individuals; (c) integration of the efforts of the task force; (d) coordination
of work of individual with that of the department.
3. Directing : Directing is concerned with initiation of organised action and stimulating
the people to work. The personnel manager directs the activities of people of the organisation to
get its function performed properly. A personnel manager guides and motivates the staff of the
organisation to follow the path laid down in advance.
4. Controlling : It provides basic data for establishing standards, makes job analysis and
performance appraisal, etc. All these techniques assist in effective control of the qualities, time
and efforts of workers.

(b) Operative Functions: The following are the Operative Functions of Human Resource
Management
1. Procurement of Personnel: It is concerned with the obtaining of the proper kind and number of
personnel necessary to accomplish organisation goals. It deals specifically with such subjects as
the determination of manpower requirements, their recruitment, selecting, placement and
orientation, etc.
2. Development of Personnel: Development has to do with the increase through training, skill
that is necessary for proper job performance. In this process various techniques of training are
used to develop the employees. Framing a sound promotion policy, determination of the basis of
promotion and making performance appraisal are the elements of personnel development
function.

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 3. Compensation to Personnel: Compensation means determination of adequate and
equitable remuneration of personnel for their contribution to organisation objectives. To
determine the monetary compensation for various jobs is one of the most difficult and important
function of the personnel management. Several decisions are taken into the function, viz., job-
evaluation, remuneration, policy, inventive and premium plans, bonus policy and co-partnership,
etc. It also assists the organization for adopting the suitable wages and salaries, policy and
payment of wages and salaries in right time.
4. Maintaining Good Industrial Relation: Human Resource Management covers a wide
field. It is intended to reduce strifies, promote industrial peace, provide fair deal to workers and
establish industrial democracy. It the personnel manager is unable to make harmonious relations
between management and labour industrial unrest will take place and millions of man-days will
be lost. If labour management relations are not good the moral and physical condition of the
employee will suffer, and it will be a loss to an organisation vis-a-visa nation. Hence, the
personnel manager must create harmonious relations with the help of sufficient communication
system and co-partnership.
5. Record Keeping: In record-keeping the personnel manager collects and maintains
information concerned with the staff of the organisation. It is essential for every organisation
because it assists the management in decision making such as in promotions.
6. Personnel Planning and Evaluation: Under this system different type of activities are
evaluated such as evaluation of performance, personnel policy of an organisation and its
practices, personnel audit, morale, survey and performance appraisal, etc.

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

Human Resource Management has a place of great importance. According to Peter F.
Drucker, ―The proper or improper use of the different factors of production depend on the
wishes of the human resources. Hence, besides other resources human resources need more
development. Human resources can increase cooperation, but it needs proper and efficient
management to guide it‖. Importance of personnel management is the importance of labour
functions of personnel department which are indispensable to the management activity itself.
Because of the following reasons human resource management holds a place of importance.
1. It helps management in the preparation adoption and continuing evolution of personnel

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programmes and policies.
2. It supplies skilled workers through scientific selection process.
3. It ensures maximum benefit out of the expenditure on training and development and
appreciates the human assets.
4. It prepares workers according to the changing needs of industry and environment.
5. It motivates workers and upgrades them to enable them to accomplish the organisation
goals.
6. Through innovation and experimentation in the fields of personnel, it helps in reducing
casts and helps in increasing productivity.
7. It contributes a lot in restoring the industrial harmony and healthy employer-employee
relations.
8. It establishes mechanism for the administration of personnel services that are delegated
to the personnel department.

NEW TRENDS IN HUMAN RESOURCE MANAGEMENT

 Attitude Surveys
 Better Communication Channels
 Change in the Work-Life
 Job Redesign
 Job Enlargement
 New approaches to compensation and rewards
 Career Planning
 Performance Appraisal
 Decentralisation
 Breaking down the hierarchical structure
 Facilitating Empowerment
 Initiating and facilitating process of change
 Enlarging the knowledge base

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HUMAN RESOURCE PLANNING
Human Resource Planning is concerned with the planning the future manpower requirements are
the organisation. Human Resource manager ensures that the company has the right type of
people in the right number at the right time and place, who are trained and motivated to do the
right kind of work at the right time. Obviously, human resource planning primarily makes
appropriate projections for future manpower needs of the organisation envisages plan for
developing the manpower to suit the changing needs of the organisation from time to time and
foresees how to monitor and evaluate the future performance. It also includes the replacement
plans and managerial succession plans. Human Resource planning is the process by which a
management determines how an organisation 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 result in
both the organisation and the individual receiving the maximum long-range benefit.

Definitions of Human Resource Planning:

According to Wikstrom, Human Resource Planning consists of a series of activities, viz.,
(a) Forecasting future manpower requirements, either in terms of mathematical projections of
trends in the economic environment and developments in industry, or in terms of judgemental
estimates based upon the specific future of a company.
(b) Making an inventory of present manpower resources and assessing the extent to which these
resources are employed optimally.
(c) Anticipating manpower problems by projecting present resources into the future and
comparing them with the forecast of requirements to determine their adequacy, both
quantitatively and qualitatively; and
(d) Planning the necessary programmes of requirements, selection, training, development,
utilisation, transfer, promotion, motivation and compensation to ensure that future manpower
requirements are properly met.
Coleman has defined Human Resource Planning as “the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated
plan of the organisation”.

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Human resource planning is a double-edged weapon. If used properly, it leads to the maximum
utilisation of human resources, reduces excessive labour turnover and high absenteeism;
improves productivity and aids in achieving the objectives of an organisation. Faultily used, it
leads to disruption in the flow of work, lower production, less job satisfaction, high cost of
production and constant headaches for the management personnel. Therefore, for the success of
an enterprise, human resource planning is a very important function, which can be neglected only
at its own peril.

Objectives of Human Resource Planning:

 To ensure optimum utilization of human resources currently available in the organization.

 To assess or forecast the future skill requirement of the Organization.
 To provide control measures to ensure that necessary resources are available as and when
required.
 A series of specified reasons are there that attaches importance to manpower planning
and forecasting exercises. They are elaborated below:
a) To link manpower planning with the organizational planning
b) To determine recruitment levels.
c) To anticipate redundancies.
d) To determine optimum training levels.
e) To provide a basis for management development programs.
f) To cost the manpower.
g) To assist productivity bargaining.
h) To assess future accommodation requirement.
i) To study the cost of overheads and value of service functions.
j) To decide whether certain activity needs to be subcontracted, etc.

HRP Process:
HRP effectively involves forecasting personnel needs, assessing personnel supply and matching
demand – supply factors through personnel related programmes. The HR planning process is
influenced by overall organizational objectives and environment of business.

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Step 1: Environmental Scanning:
It refers to the systematic monitoring of the external forces influencing the organization. The
following forces are essential for pertinent HRP.
 Economic factors, including general and regional conditions.
 Technological changes.
 Demographic changes including age, composition and literacy,
 Political and legislative issues, including laws and administrative rulings
 Social concerns, including childcare, educational facilities and priorities.
 By scanning the environment for changes that will affect an organization, managers can
anticipate their impact and make adjustments early.
Step 2: Organizational Objectives and Policies: HR plan is usually derived from the
organizational objectives. Specific requirements in terms of number and characteristics of
employees should be derived from organizational objectives
Once the organizational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objective with regard to HR utilization in the
organization.
Step 3: HR Demand Forecast:
Demand forecasting is the process of estimating the future quantity and quality of people
required to meet the future needs of the organization. Annual budget and long-term corporate
plan when translated into activity into activity form the basis for HR forecast.
For eg: in the case of a manufacturing company, the sales budget will form the basis for
production plan giving the number and type of products to be produced in each period. This will
form the basis upon which the organization will decide the number of hours to be worked by
each skilled category of workers. Once the number hours required is available organization can
determine the quality and quantity of personnel required for the task.
Demand forecasting is influenced by both internal factors and external factors: external factors
include competition, economic climate, laws and regulatory bodies, changes in technology and
social factors whereas internal factors are budget constraints, production level, new products and
services, organizational structure and employee separations.

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Demand forecasting is essential because it helps the organization to
1. Quantify the jobs, necessary for producing a given number of goods,
2. To determine the nature of staff mix required in the future,
3. To assess appropriate levels in different parts of organization so as to avoid unnecessary costs
to the organization,
4. To prevent shortages of personnel where and when, they are needed by the organization.
5. To monitor compliances with legal requirements with regard to reservation of jobs.
Techniques like managerial judgment, ratio- trend analysis, regression analysis, work study
techniques, Delphi techniques are some of the major methods used by the organization for
demand forecasting.

Step 4: HR Supply Forecast:

Supply forecast determines whether the HR department will be able to procure the required
number of workers. Supply forecast measures the number of people likely to be available from
within and outside an organization, after making allowance for absenteeism, internal movements
and promotions, wastage and changes in hours, and other conditions of work.
Supply forecast is required because it is needed as it
1. Helps to quantify the number of people and positions expected to be available in future to help
the organization realize its plans and meet its objectives
2. Helps to clarify the staff mixes that will arise in future
3. It assesses existing staffing in different parts of the organization.
4. It will enable the organization to prevent shortage of people where and when they are most
needed.
5. It also helps to monitor future compliance with legal requirements of job reservations.
Supply analysis covers the existing human resources, internal sources of supply and external
sources of supply.

Step 5: Estimating Manpower Gaps: Net human resource requirements or manpower gaps can
be identified by comparing demand and supply forecasts. Such comparison will reveal either
deficit or surplus of human resources in future. Deficits suggest the number of persons to be
recruited from outside whereas surplus implies redundant to be redeployed or terminated.

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Similarly, gaps may occur in terms of knowledge, skills and aptitudes. Employees deficient in
qualifications can be trained whereas employees with higher skills may be given more enriched
jobs.

Step 6: HR Plan Implementation:

HR implementation requires converting an HR plan into action. A series of action are initiated as
a part of HR plan implementation. Programmes such as recruitment, selection and placement,
training and development, retraining and redeployment, retention plan, succession plan etc when
clubbed together form the implementation part of the HR plan.

Step 7: Control and Evaluation:

Control and evaluation represent the final phase of the HRP process. All HR plan include
budgets, targets and standards. The achievement of the organization will be evaluated and
monitored against the plan. During this final phase organization will be evaluating on the number
of people employed against the established (both those who are in the post and those who are in
pipeline) and on the number recruited against the recruitment targets. Evaluation is also done
with respect to employment cost against the budget and wastage accrued so that corrective action
can be taken in future.

Requisites for Successful HRP

1. HRP must be recognized as an integral part of corporate planning
2. Support of top management is essential
3. There should be some centralization with respect to HRP responsibilities in order to have
co-ordination between different levels of management.
4. Organization records must be complete, up to date and readily available.
5. Techniques used for HR planning should be those best suited to the data available and
degree of accuracy required.
6. Data collection, analysis, techniques of planning and the plan themselves need to be constantly
revised and improved in the light of experience.

Human Resource Management (Sonam Subhadarshini) Page 18

Barriers to HRP
Human Resource Planners face significant barriers while formulating an HRP. The major
barriers are elaborated below:
1) HR practitioners are perceived as experts in handling personnel matters but are not experts in
managing business. The personnel plan conceived and formulated by the HR practitioners when
enmeshed with organizational plan, might make the overall strategic plan of the organization
ineffective.
2) HR information often is incompatible with other information used in strategy formulation.
Strategic planning efforts have long been oriented towards financial forecasting, often to the
exclusion of other types of information. Financial forecasting takes precedence over HRP.
3) Conflict may exist between short term and long-term HR needs. For example, there can be a
conflict between the pressure to get the work done on time and long-term needs, such as
preparing people for assuming greater responsibilities. Many managers are of the belief that HR
needs can be met immediately because skills are available on the market as long as wages and
salaries are competitive. Therefore, long times plans are not required, short planning are only
needed.
4) There is conflict between quantitative and qualitative approaches to HRP. Some people view
HRP as a number game designed to track the flow of people across the department. Others take a
qualitative approach and focus on individual employee concerns such as promotion and career
development. Best result can be achieved if there is a balance between the quantitative and
qualitative approaches.
5) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR
department function. Successful planning needs a co-ordinated effort on the part of operating
managers and HR personnel.

Human Resource Management (Sonam Subhadarshini) Page 19

Importance of Human Resource Planning
HRP is the subsystem in the total organizational planning. Organizational planning includes
managerial activities that set the company’s objective for the future and determines the
appropriate means for achieving those objectives.
The importance of HRP is elaborated on the basis of the key roles that it is playing in the
organization.
1. Future Personnel Needs: Human resource planning is significant because it helps to
determine the future personnel needs of the organization. If an organization is facing the problem
of either surplus or deficiency in staff strength, then it is the result of the absence of effecting HR
planning. All public sector enterprises find themselves overstaffed now as they never had any
planning for personnel requirement and went of recruitment spree till late 1980’s. The problem
of excess staff has become such a prominent problem that many private sector units are resorting
to VRS ‘voluntary retirement scheme’. The excess of labour problem would have been there if
the organization had good HRP system. Effective HRP system will also enable the organization
to have good succession planning.
2. Part of Strategic Planning: HRP has become an integral part of strategic planning of
strategic planning. HRP provides inputs in strategy formulation process in terms of deciding
whether the organization has got the right kind of human resources to carry out the given
strategy. HRP is also necessary during the implementation stage in the form of deciding to make
resource allocation decisions related to organization structure, process and human resources. In
some organizations HRP play as significant role as strategic planning and HR issues are
perceived as inherent in business management.
3. Creating Highly Talented Personnel: Even though India has a great pool of educated
unemployed, it is the discretion of HR manager that will enable the company to recruit the right
person with right skills to the organization. Even the existing staff hope the job so frequently that
organization face frequent shortage of manpower. Manpower planning in the form of skill
development is required to help the organization in dealing with this problem of skilled
manpower shortage
4. International Strategies: An international expansion strategy of an organization is facilitated
to a great extent by HR planning. The HR department’s ability to fill key jobs with foreign

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nationals and reassignment of employees from within or across national borders is a major
challenge that is being faced by international business. With the growing trend towards global
operation, the need for HRP will as well will be the need to integrate HRP more closely with the
organization’s strategic plans. Without effective HRP and subsequent attention to employee
recruitment, selection, placement, development, and career planning, the growing competition
for foreign executives may lead to expensive and strategically descriptive turnover among key
decision makers.
5. Foundation for Personnel Functions: HRP provides essential information for designing and
implementing personnel functions, such as recruitment, selection, training and development,
personnel movement like transfers, promotions and layoffs.
6. Increasing Investments in Human Resources: Organizations are making increasing
investments in human resource development compelling the increased need for HRP.
Organizations are realizing that human assets can increase in value more than the physical assets.
An employee who gradually develops his/ her skills and abilities become a valuable asset for the
organization. Organizations can make investments in its personnel either through direct training
or job assignment and the rupee value of such a trained, flexible, motivated productive workforce
is difficult to determine. Top officials have started acknowledging that quality of work force is
responsible for both short term and long-term performance of the organization.
7. Resistance to Change: Employees are always reluctant whenever they hear about change and
even about job rotation. Organizations cannot shift one employee from one department to
another without any specific planning. Even for carrying out job rotation (shifting one employee
from one department to another) there is a need to plan well ahead and match the skills required
and existing skills of the employees.
8. Succession Planning: Human Resource Planning prepares people for future challenges. The
‘stars’ are picked up, trained, assessed and assisted continuously so that when the time comes
such trained employees can quickly take the responsibilities and position of their boss or seniors
as and when situation arrives.
9. Other Benefits:
(a) HRP helps in judging the effectiveness of manpower policies and programmes of
management.

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(b) It develops awareness on effective utilization of human resources for the overall development
of organization.
(c) It facilitates selection and training of employees with adequate knowledge, experience and
aptitudes so as to carry on and achieve the organizational objectives
(d)HRP encourages the company to review and modify its human resource policies and practices
and to examine the way of utilizing the human resources for better utilization.

Factors affecting HRP

HRP is influenced by several factors. The most important of the factors that affect human
resource planning are:
1. Type and Strategy of the Organization: Type of the organization determines the production
processes involve, number and type of staff needed, and the supervisory and managerial
personnel required. If the organization has a plan for organic growth, then organization need to
hire additional employees. On the other hand, if the organization is going for mergers and
acquisition, then organization need to plan for layoffs.
2. Organizational Growth Cycles and Planning: All organizations pass through different
stages of growth from the day of its inception. The stage of growth in which an organization is
determines the nature and extends of HRP. Small organizations in the earlier stages of growth
may not have well defined personnel planning. But as the organization enters the growth stage,
they feel the need to plan its human resource. At this stage organization gives emphasis upon
employee development. But as the organization reaches the mature stage it experiences less
flexibility and variability resulting in low growth rate. HR planning becomes more formalized
and less flexible and less innovative and problem like retirement and possible retrenchment
dominate planning. During the declining stage of the organization HRP takes a different focus
like planning to do the layoff, retrenchment and retirement.
3. Environmental Uncertainties: Political, social and economic changes affect all organizations
and the fluctuations that are happening in these environments affect organizations drastically.
Personnel planners deal with such environmental uncertainties by carefully formulating
recruitment, selection, training and development policies and programmes.
4. Time Horizons: HR plans can be short term or long term. Short term plans span from six
months to one year, while long term plans spread over three to twenty years. The extent of time

Human Resource Management (Sonam Subhadarshini) Page 22

period depends upon the degree of uncertainty that is prevailing in an organization’s
environment.
5. Type and Quality of information: The quality and accuracy of information depend upon the
clarity with which the organizational decision makers have defined their strategy, structure,
budgets, production schedule and so on.
6. Nature of Jobs Being Filled: Personnel planners need to be careful with respect to the nature
of the jobs being filled in the organization. Employees belonging to lower level who need very
limited skills can be recruited hastily but, while hiring employees for higher posts, selection and
recruitment need to be carried out with high discretion
7. Outsourcing: Many of the organizations have surplus labour and hence instead of hiring more
people they go for outsourcing. Outsourcing determines HRP.

Barriers to Human Resource Planning

Human Resource Planners face significant barriers while formulating an HRP.
The major barriers are elaborated below:
1) HR practitioners are perceived as experts in handling personnel matters but are not experts in
managing business. The personnel plan conceived and formulated by the HR practitioners when
enmeshed with organizational plan, might make the overall strategic plan of the organization
ineffective.
2) HR information often is incompatible with other information used in strategy formulation.
Strategic planning efforts have long been oriented towards financial forecasting, often to the
exclusion of other types of information. Financial forecasting takes precedence over HRP.
3) Conflict may exist between short term and long-term HR needs. For example, there can be a
conflict between the pressure to get the work done on time and long-term needs, such as
preparing people for assuming greater responsibilities. Many managers are of the belief that HR
needs can be met immediately because skills are available on the market if wages and salaries are
competitive. Therefore, long times plans are not required, short planning are only needed.
4) There is conflict between quantitative and qualitative approaches to HRP. Some people view
HRP as a number game designed to track the flow of people across the department. Others take a
qualitative approach and focus on individual employee concerns such as promotion and career

Human Resource Management (Sonam Subhadarshini) Page 23

development. Best result can be achieved if there is a balance between the quantitative and
qualitative approaches.
6) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR
department function. Successful planning needs a co-ordinated effort on the part of operating
managers and HR personnel.

JOB ANALYSIS
Job: A job may be defined as a “collection or aggregation of tasks, duties and responsibilities
which as a whole, are regarded as a regular assignment to individual employees,” and which is
different from other assignments, In other words, when the total work to be done is divided and
grouped into packages, we call it a “job.” Each job has a definite title based upon standardized
trade specifications within a job; two or more grades may be identified, where the work
assignment may be graded according to skill, the difficulty of doing them, or the quality of
workmanship. Thus, it may be noted that a position is a “collection of tasks and responsibilities
regularly assigned to one person;” while a job is a “group of position, which involve essentially
the same duties, responsibilities, skill and knowledge.” A position consists of a set of duties
assigned to an individual.
Job Analysis
Developing an organizational structure, results in jobs which must be staffed. Job analysis is the
procedure through which you determine the duties and nature of the jobs and the kinds of people
(in terms of skills and experience) who should be hired for them.’ It provides you with data on
job requirements, which are then used for developing job descriptions (what the job entails) and
job specifications (what kind of people to hire for the job). Some of the definitions of job
analysis ate given as follows, to understand the meaning of the term more clearly:
According to Michael L. Jucius, “Job analysis refers to the process of studying the operations,
duties and organizational aspects of jobs in order to derive specifications or as they called by
some, job descriptions.”
According to DeCenzo and P. Robbins, “A 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.”

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Job Description
Job description is the immediate product of job analysis process; the data collected through job
analysis provides a basis for job description and job specification.
Job Description: is a written record of the duties, responsibilities and requirements of a job. It is
concerned with the job itself and not with the job holders. It is a statement describing the job in
such terms as its title, location, duties, working conditions and hazards.
Flippo has Defined Job Description as, “A job description is an organized, factual statement of
duties and responsibilities of a specific job. In brief, it should tell what is to be done. How it is
done why. It is a standard of function, in that defines the appropriate and authorized content of a
job.
According to Pigors and Myres, “Job description is a pertinent picture (in writing) of the
organizational relationships, responsibilities and specific duties that constitutes a given job or
position. It defines a scope of responsibility and continuing work assignments that are
sufficiently different form that of other jobs to warrant a specific title.”

“Job description” is different from “performance assessment.” The former concerns such
functions as planning, co-ordination, and assigning responsibility, while the latter concerns the
quality of performance itself. Though job description is not assessment, it provides an important
basis establishing assessment standards and objectives.

Writing Job Description

1. Job Identification
2. Job Summary
3. Duties and Responsibilities
4.Supervision
5. Relation to Other Jobs:
6. Machine
7. Working Conditions
8. Social Environment

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Job Specification
The job specification states the minimum acceptable qualifications that the incumbent must
possess to perform the job successfully. Based on the information acquired through job analysis,
the job specification identifies the knowledge, skills, and abilities needed to do the job
effectively. Individuals possessing the personal characteristics identified in the job specification
should perform the job more effectively than individuals lacking these personal characteristics.
The job specification, therefore, is a important tool in the selection process, for it keeps the
selector’s attention on the list of qualifications necessary for an incumbent to perform the job and
assists in determining whether candidates are qualified.
According to Dale Yoder, “The job specification, as such a summary properly described is thus
a specialized job description, emphasizing personnel requirement and designed specially to
facilitate selection and placement.”

A Job Specification should include:

(i) Physical characteristics, which include health, strength, endurance, age, height, weight,
vision, voice, eye, hand and foot co-ordination, motor co-ordination, and colour discrimination.
(ii) Psychological and social characteristics such as emotional stability, flexibility, decision
making ability, analytical view, mental ability, pleasing manners, initiative, conversational
ability etc.
(iii) Mental Characteristics such as general intelligence, memory, judgement, ability to
concentrate, foresight etc.
(iv) Personal Characteristics such as sex, education, family background, job experience,
hobbies, extracurricular activities etc.

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RECRUITMENT
Recruitment, selection, placement, induction, training and development are all the core functions
of HRD. Once it is determined what types of jobs in how many numbers are to be filled up with
the qualifications fixed, the next step is for search of qualified people. Hiring of people involves
these broad groups of activities but not mutually exclusive viz., recruitment, selection and
placement. Recruitment is the first step in the process of filling a vacancy. Recruitment is the
generating of applications or applicants for specific positions to be filled up in the organization.
It is a process of searching for and obtaining applicants for jobs so that the right people in right
number can be selected.
According to Dale Yoder, “Recruitment is a process to discover the source of manpower
to meet the requirements of staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working force.”
According to Bergmann and Taylor, “Recruitment is the process of locating, identifying, and
attracting capable applicants.”

FACTORS AFFECTING RECRUITMENT

There are various factors that influence recruitment. They are as follows:
i. Internal factors
ii. External factors

Internal factors
 Size: The organizational size is an influencing factor. Larger organizations find
recruitment less problematic than smaller size units.
 Policy: The policy of recruitment by the organization, whether recruitment is from
internal source (from own employees) or from external sources also affect the recruitment
process. Generally, recruiting through internal sourcing is preferred in view of cost
consideration, familiarity and in easily finding most suitable.
 Image : Image of the organization is another internal factor influencing recruitment.
Managerial actions like good public relations, rendering public services like building

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 roads, public parks, hospitals and schools help to earn image or goodwill for the
organization.
 Image of jobs: Better remuneration and working conditions are considered the
characteristics of good image of a job. Besides, promotion and career development
progammes of the organization also attract potential candidates.

External factors
 Demographic factors: Demographic factors such as sex, age, literacy, economic status
etc, have influence on recruitment process.
 Labour markets: Labour market conditions, that is, supply labour is of particular
importance in affecting recruitment process. If the demand for a specific skill
requirements is high relative to its supply, recruiting employees will involve more efforts.
On the contrary, if supply is more than demand for particular skill, recruitment will be
relatively easier.
 Unemployment situation: The rate of unemployment is yet another external factor having
its influence on the recruitment process. When the unemployment rate in a given area is
high, the recruitment process tends to be simpler.
 Labour laws : There are several labour laws and regulations passed by the central and
state Governments that govern different types of employment. These cover, working
conditions, compensation, retirement benefits and safety and health of employees in
industrial undertakings. Child Labour (Prohibition and Regulation) Act, 1986, for
example prohibits employment of children in certain employments. So also, several other
acts such as Employment Exchange (Compulsory Notification of Vacancies) Act, 1959,
the Apprentice Act 19961; the Factories Act, 1948 and the Mines Act 1952 have bearing
on recruitments.

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SOURCES OF RECRUITMENT
The different sources of recruitment could be classified into two broad categories, viz.,
i. Internal sources and
ii. External sources
INTERNAL SOURCES
The various internal sources are
 Present employees: Promotions and transfers from among the present employees can be
a good source of recruitment. Promotion implies upgrading of an employee to a higher
position carrying higher status, pay and responsibilities.
 Former employees: Former employees are another source of applicants for vacancies to
be filled up in the organization. Retired or retrenched employees may be interested to
come back to the company to work on a part-time basis. Some former employees who left
the organization for any reason, may again be interested to come back to work.
 Employee referrals: The existing employees refer their family members, friends and
relatives to the company as potential candidates for the vacancies to be filled up most
effective methods of recruiting people in the organization because employees refer to
those potential candidates who meet the company requirement by their previous
experience.
 Previous applicants : Those who applied previously and whose applications though
found good was not selected for one reason or other may be considered at this point of
time. Unsolicited applications may also be considered.
Advantages of internal source are:
1. Familiarity with their own employees
2. Better use of the talent
3. Economical recruitment
4. Morale booster
5. Gives motivation.
Disadvantages of internal source
1. Limited choice
2. Discourages competition
3. Creates conflicts.

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EXTERNAL SOURCES
The different external sources are
 Employment Exchanges: After India’s independence, National Employment Service
was established to bring employees and job seekers together. In response to it, the
Compulsory Notification of Vacancies Act of 1959 (commonly called Employment
Exchange Act) was enacted which became operative in 1960. Under S4 of the Act, it is
obligatory for all industrial establishments having 25 workers or more, to notify the
nearest employment exchange of vacancies in them, before they are filled. Employment
exchanges are particularly useful in recruiting blue-collar, white collar and technical
workers.
 Employment agencies: In addition to the government agencies, there are a number of
private employment agencies who register candidates for employment and furnish a list
of suitable candidates from their data bank as and when sought by prospective employers.
The main function of these agencies is to invite applications and short list the suitable
candidates for the organization. Of course, the final decision on selection is taken by the
representatives of the organization. The representatives of the employment agencies may
also sit on the panel for final selection of the candidates.
 Advertisement: Advertisement is perhaps the most widely used method for generating
many applications. This is because its reach is very high. This method of recruitment can
be used for jobs like clerical, technical and managerial. While preparing advertisement,
lot of care has to be taken to make it clear and to the point. It must ensure that some self-
selection among applicants takes place and only qualified applicant’s response to the
advertisement. Advertisement copy should be prepared very well to answer AIDA. That
is, advertisement should arrest attention, gain interest, arouse desire and result in action.
 Professional associations: Very often recruitment for certain professional and technical
positions is made through professional associations. Institute of Engineers, Indian
Medical Association, All India Management Association etc., provide placement services
for their members. For this, the professional associations prepare either list of job seekers
or publish or sponsor journals or magazines containing advertisements for their members.
 Campus recruitment: This is another source of recruitment. This is gaining popularity
in India. The advantages are:

Human Resource Management (Sonam Subhadarshini) Page 30

 i. Most of the eligible candidates are available at one place.
ii. The interviews are arranged in a short notice.
iii. The teaching faculty can also be consulted.
iv. Gives opportunity to sell the organization to a large students body who would be
graduating subsequently.
 Deputation: Yet another source of recruitment is deputation ie., sending an employee to
another organization for a short duration of two or three years. This method of
recruitment is in vogue in Government Departments and public sector organizations. This
method provides ready expertise and the organization does not have to incur the initial
cost of induction and training.
 Word-of-mouth: Some organizations in India practice ‘the word-of-mouth’ method of
recruitment. In this method, the word is passed around the possible vacancies or openings
in the organization. Another form of word-of-mouth recruitment is “employee-pinching”
ie., the employees working in another organization are offered on attractive offer by the
rival organizations. This method is economic, both in terms of time and money.
 Raiding or poaching: Raiding or poaching is another method of recruitment whereby the
rival firms by offering better terms and conditions, try to attract qualified employees to
join them. This raiding is a common feature in the Indian organizations.
Advantages of External Source
1. A process of selection
2. Availability of talented candidates.
3. Opportunity to select best candidates.
4. Provides healthy competition among job seekers.
Disadvantages
1. Expensive and time consuming
2. Unfamiliarity with the organization
3. Discourages the existing employees and they may feel belittled.

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SELECTION

Human resource selection is the process of choosing qualified individuals who are available to
fill positions in an organization. In the ideal personnel situation, selection involves choosing the
best applicant to fill a position. Selection is the process of choosing people by obtaining and
assessing information about the applicants with a view to matching these with the job
requirements. It involves a careful screening and testing of candidates who have put in their
applications for any job in the enterprise. It is the process of choosing the most suitable persons
out of all the applicants. The purpose of selection is to pick up the right person for every job. It
can be conceptualized in terms of either choosing the fit candidates, or rejecting the unfit
candidates, or a combination of both. Selection involves both because it picks up the fits and
rejects the unfits. In fact, in Indian context, there are more candidates who are rejected than those
who are selected in most of the selection processes. Therefore, sometimes, it is called a negative
process in contrast to positive programme of recruitment.
According to Dale Yoder, ―Selection is the process in which candidates for employment are
divided into two classes-those who are to be offered employment and those who are not‖.
According to Thomas Stone, ―Selection is the process of differentiating between applicants in
order to identify (and hire) those with a greater likelihood of success in a job‖.
In the words of Michael Jucius, ―The selection procedure is the system of functions and
devices adopted in a given company for the purpose of ascertaining whether or not candidates
possess the qualifications called for by a specific job or for progression through a series of jobs.‖
According to Keith Davis, ―Selection is the process by which an organisation chooses from a
list of screened applicants, the person or persons who best meet the selection criteria for the
position available.
Decenzo and Robbins write, ―Proper selection of personnel is obviously an area where
effectiveness - choosing competent workers who perform well in their position-can result in
large saving.
According to them, selection has two objectives: (1) to predict which job applicants would be
successful if hired and (2) to inform and sell the candidate on the job and the organization.
Satisfaction of employee needs and wants as well as the fullest development of his potential are
important objectives of selection.

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Dale Yoder says, ―Selection has long held a high rank in the priority of problem areas in
management. Investments in good people produce a very high rate of return. A good choice of
people can provide a basis for long, sustained contributions.

Difference between Recruitment and Selection: Difference between recruitment and selection
has been described by Flippo as, ―Recruitment is a process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an organization. It is often
termed positive as is stimulates people to apply for jobs, selection on the other hand tends to be
negative because it rejects a good number of those who apply, leaving only the best to be hired.‖
Recruitment and selection differs in following manner:
1. Difference in Objective: The basic objective of recruitment is to attract maximum number of
candidates so that more options are available. The basic objective of selection is to choose best
out of the available candidates.
2. Difference is Process: Recruitment adopts the process of creating application pool as large as
possible and therefore. It is known as positive process. Selection adopts the process through
which more and more candidates are rejected and fewer candidates are selected or sometimes
even not a single candidate is selected. Therefore, it is known as negative process or rejection
process.
3. Technical Differences: Recruitment techniques are not very intensive, and not require high
skills. As against this, in selection process, highly specialized techniques are required. Therefore,
in the selection process, only personnel with specific skills like expertise in using selection tests,
conducting interviews, etc., are involved.
4. Difference in Outcomes: The outcome of recruitment is application pool which becomes
input for selection process. The outcome of selection process is in the form of finalising
candidates who will be offered jobs.

SELECTION PROCESS
Following are the steps involved in a standard selection process:
1. Preliminary Interview
2. Application Blank
3. Selection Tests

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4. Selection Interview
5. Physical Examination
6. Reference checks
7. Negotiation
8. Final selection

1. Preliminary Interview
After screening the applications, preliminary interview will be conducted. The purpose of
preliminary interview is to eliminate unsuitable or unqualified candidates from the selection
process. In screening unqualified candidates are eliminated on the basis of information given in
the application form, whereas preliminary interview rejects misfits for reasons, which did not
appear in the application forms.
2. Application Blanks
This is a method for getting information from a prospective candidate. This serves as a personal
record of the candidate bearing personal history profile, detailed personal activities, skills and
accomplishments. Almost all organizations require job seekers to fill up the application. Usual
contents are as follows:
i. Biographical information – Age, father’s name, sex, nationality, height, marital status.
ii. Educational information - Name of the institutions where the candidate studied – marks –
Divisions – Distinctions.
iii. Work Experience – previous experience – nature of job – salary – duration – reason for
quitting.
iv. Salary – last drawn salary – minimum salary acceptable.
v. Extra-curricular information – NSS – NCC – hobbies etc.
vi. References – Name and address.

Weighted Application Blanks

Some organizations assign numeric values or weights to the responses provided by the
applicants. This makes the application form more job related. Generally, the items that have a
strong relationship to job performance are given higher scores. For example, for a sales
representative‘s position, items such as previous selling experience, area of specialization,

Human Resource Management (Sonam Subhadarshini) Page 34

commission earned, religion, language etc. The total score of each applicant is then obtained by
adding the weights of the individual item responses. The resulting scores are then used in the
final selection. WAB is best suited for jobs where there are many employees especially for sales
and technical jobs. It can help in reducing the employee turnover later on.

3. Selection Tests
Individuals differ in many respects including job related abilities and skills. In order to select a
right person for the job, individual differences in abilities and skills are to be adequately and
accurately measured for comparison.
According to Lee J. Groobach, “A test is a systematic procedure for comparing the
behaviour of two or more persons.”

Milton M. Blum defines test as “a sample of an aspect of individual’s behaviour,

performance and attitude.”115 In simple words, test is a systematic procedure for sampling
human behaviour.

Types of selection test

Following types of tests are used:

1. Intelligence tests
2. Achievements tests
3. Aptitude tests
4. Personality tests
5. Assessment centre
6. Graphology tests
7. Polygraph tests
8. Integrity tests

Intelligence tests: It is a mental ability test. They measure learning ability, ability to understand
Instructions and make judgment. They measure several abilities such as memory, vocabulary,
verbal fluency, numerical ability, perception. Such tests are used in competitive examinations at
entry level management positions in Banking, Insurance and other Financial Service sectors.
They include tests like Stanford-Binet, Binet-Simon, etc.

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Achievement tests: These tests are designed to measure what the applicant can do on the job
currently. For example, typing test shows typing proficiency, a short hand test measures the
person’s ability to take dictation. They are also known as work sampling tests, wherein job
applicant’s ability to do small portion of the job is tested. They involve.
1. Motor-involving physical manipulation of things
2. Verbal
Aptitude tests: These measures an individual’s potential to learn certain skills-clerical,
mechanical, mathematical. These tests indicate whether an individual has ability to learn a given
job quickly and efficiently.
Personality tests: These measure an individual’s personality factors and relationship between
personality factors and actual job criteria. The personality aspects which are evaluated are as
follows: motivation, emotional balance, self-confidence, interpersonal behaviour. Some of the
tests are: Minnesota Multiphase Personality Inventory (MMPI), California Psychological
Inventory, and Manifest Anxiety Scale.

There are three types of PIP Tests (Projective Interest Preference)

1. Projective Test: They expect candidate to interpret problems or situation based on their own
motives, attitudes and values. Thematic Appreciation Test is one of such a kind, where a picture
is shown to the candidate.
2. Interest Tests: People are most likely to be successful in jobs they like. Compare the interest
of candidate with the interest of successful people in a specific job.
3. Preference Tests: These tests shows how people differ in their preferences for achievement,
meaningfulness, discretion etc in their jobs.

Assessment centre: It is an extended work sample. It uses groups and individual exercise. A
batch of applicants is assessed by team of 6 to 8 trained assessors.
Techniques:
1. In baskets–is an accumulation of reports, memos and letters.
2. Group Discussions–to judge interpersonal skills, acceptance by the group, leadership and
individual influence.
3. Business games

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4. Individual Presentation.
5. Structured Interview.
Graphology tests: Analysis of lines, loops, hooks, strokes, curves in a person’s handwriting to
assess the person’s personality and emotional make up.
Polygraph tests: Also known as lie diction test, records physical changes in body such
respiration, blood pressure and perspiration on a moving roll of paper while answering series of
questions. Suitable for government agencies for filling security, police, fire and health positions.

Issues: Is it possible to prove that the responses recorded by the polygraph occur only because a
lie has been told? What about those situations in which person lies without guilt (pathological
liar) or lies believing the response to be true.
Integrity tests: To measure employee’s honesty to predict those who are more likely to steal
from an employer. Such questions are generally asked:
Do you carry office stationery back to your home for occasional use?
Do you mark attendance for your colleagues also?
Have you ever told a lie?

4. Selection Interview

Interview: An interview is a procedure designed to get information from a person and to assess
his potential for the job he is being considered on the basis of oral responses by the applicant to
oral inquiries by the interviewer. Interviewer does a formal in-depth conversation with the
applicant, to evaluate his suitability. It is one of the most important tools in the selection process.
This tool is used when interviewing skilled, technical, professional and even managerial
employees. It involves two-way exchange of information. The interviewer learns about the
applicant and the candidate learns about the employer.
Objectives of Interviews: Interview helps:
 To obtain additional information from the candidate.
 Facilitates giving to the candidate information about the job, company, its policies,
products etc.
 To assess the basic suitability of the candidate.

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  The selection interview can be:
 One to one between the candidate and the interviewer:
 Two or more interviewers by employers representatives-sequential;
 By a panel of selections, i.e., by more than representative of the employer.

TYPES OF INTERVIEW
Types of Interviews
Several types of interviews are commonly used depending on the nature and importance of the
position to be filled within an organisation.
a) The non-directive interview: In a non-directive interview the recruiter asks questions as
they come to mind. There is no specific format to be followed. The questions can take
any direction. The interviewer asks broad, open-ended questions such as ‘tell me more
about what you did on your last job’ – and allows the applicant to talk freely with a
minimum of interruption. Difficulties with a non-directive interview include keeping it
job related and obtaining comparable data on various applicants.
b) The directive or structured interview: In the directive interview, the recruiter uses a
predetermined set of questions that are clearly job related. Since every applicant is asked
the same basic questions, comparison among applicants can be made more easily.
Structured questions improve the reliability of the interview process, eliminate biases and
errors and may even enhance the ability of a company to withstand legal challenge. On
the negative side, the whole process is somewhat mechanical, restricts the freedom of
interviewers and may even convey disinterest to applicants who are used to more flexible
interviews. Also, designing a structured interview may take a good amount of time and
energy.
c) The situational interview: One variation of the structured interview is known as the
situational interview. In this approach, the applicant is confronted with a hypothetical
incident and asked how he or she would respond to it. The applicant’s response is then
evaluated relative to pre-established benchmark standards.
d) The behavioural interview: The behavioural interview focuses on actual work incidents
(as against hypothetical situations in the situational interview) in the applicant’s past. The

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 applicant is supposed to reveal what he or she did in a given situation, for example, how
he disciplined an employee who was smoking inside the factory premises.
e) Stress interview: In stress interview, the interviewer attempts to find how applicants
would respond to aggressive, embarrassing, rude and insulting questions. The whole
exercise is meant to see whether the applicant can cope with highly stress-producing,
anxious and demanding situations while at work, in a calm and composed manner. Such
an approach may backfire also, because the typical applicant is already somewhat
anxious in any interview. So, the applicant that the firm wants to hire might even turn
down the job offer under such trying conditions.
f) Panel interview: In a typical panel interview, the applicant meets with three to five
interviewers who take turns asking questions. After the interview, the interviewers pool
their observations to arrive at a consensus about the suitability of the applicant. The panel
members can ask new and incisive questions based on their expertise and experience and
elicit deeper and more meaningful responses from candidates. Such an interview could
also limit the impact of the personal biases of any individual interviewer. On the negative
side, as an applicant, a panel interview may make you feel more stressed than usual..
g) Telephonic Interview
h) Skype Interview

5. Medical Examination: After the selection decision and before the job offer is made, the
candidate is required to undergo physical fitness test. Candidates are sent for physical
examination either to the company‘s physician or to a medical officer approved for the
purpose. Such physical examination provides the following information.
 Whether the candidate‘s physical measurements are in accordance with job
requirements or not?
 Whether the candidate suffers from bad health which should be corrected?
 Whether the candidate has health problems or psychological attitudes likely to
interfere with work efficiency or future attendance?
 Whether the candidate is physically fit for the specific job or not?
6. Reference Checks: In the selection process, the next step is verifying information or
obtaining additional information through reference. The applicant is asked to give the names

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 of one or two referees who know him personally. Previous employers, University Professors,
neighbors and friends are usually referees. However, references are treated as a mere
formality and are hardly used to influence the selection decisions.
7. Final Employment Decision: After a candidate is finally selected, the human resource
department recommends his name for employment. The management or board of the
company offers employment in the form of an appointment letter mentioning the post, the
rank, the salary grade, the date by which the candidate should join and other terms and
conditions of employment. Some firms make a contract of service on judicial paper.
Usually an appointment is made on probation in the beginning. The probation period may
range from three months to two years. When the work and conduct of the employee is
found satisfactory, he may be confirmed.

Common Interview Biases

There are several problems that interviewers run into when they allow biases to get in the way.
These include:
 Stereotyping: Forming an opinion about how people of a given gender, religion, race,
appearance, or other characteristic think, act, respond, or would perform the job without
any evidence that this is the case.
 Inconsistency in questioning: Asking different questions of each candidate leads to a
skewed assessment of who would best perform the job. Questions designed to get
particular information about a specific candidate are only appropriate in the context of a
core set of questions asked of all candidates.
 First impressions: An interviewer might make a snap judgment about someone based on
their first impression positive or negative that clouds the entire interview. For example,
letting the fact that the candidate is wearing out of the ordinary clothing or has a heavy
regional accent take precedence over the applicant's knowledge, skills, or abilities
 Negative emphasis: This involves rejection of a candidate based on a small amount of
negative information a common occurrence. Research indicates that interviewers give
unfavorable information about twice the weight of favorable information.
 Halo/horn effect: The "halo" effect occurs when an interviewer allows one strong point
about the candidate to overshadow or have an effect on everything else. For instance,

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 knowing someone went to a particular university might be looked upon favorably.
Everything the applicant says during the interview is seen in this light. ("Well, she left
out an important part of the answer to that question, but, she must know it, she went to
XYZ University). The "horn" effect is just the opposite allowing one weak point to
influence everything else.
 Cultural noise: Since the candidate wants the job, she or he will provide the words the
interviewer wants to hear, even if those words are not entirely truthful. For example, an
applicant might say that he has no problem reporting to someone younger, or working in
a team setting, when this is not the case. Interviewers should prepare questions that probe
for specific examples and stay away from questions that elicit "yes" or "no" answers.
 Nonverbal bias: Undue emphasis might be placed on nonverbal cues that have nothing to
do with the job, such as loudness or softness of voice, or the type of handshake given.
 Contrast effect: Strong(er) candidates who interview after weak(er) ones may appear
more qualified than they are because of the contrast between the two. Note taking during
the interview and a reasonable period of time between interviews may alleviate this.

Induction
Induction is introducing the new employee to work surrounding and people already working
there. In other words, induction is the process of receiving and welcoming an employee when he
first joins a company, and giving him basic information he needs to settle down quickly and
happily and start work. According to R.P. Billimoria, “induction is a technique by which a new
employee is rehabilitated into the changed surroundings and introduced to the practices, policies
and purposes of the organizations.”

Objectives of Induction
An induction process properly designed should serve the following objectives:
1) Introduce the new employee and the organization to each other.
2) Create interest in his job and the company
3) Provide basic information about working arrangements
4) Make the new employee feel ‘at home’ in the new environment
5) Indicate the standards of performance and behavior expected from him

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6) Inform him about the training facilities
7) Reduce any misunderstanding about the job or the enterprise
8) Facilitate good employee relations
9) Assist the new employee to adjust to the company; and
10) Establish a favorable attitude about the company in the minds of the employee.

Induction Process
There is no specific model of induction process. Each industry develops its own procedure as per
its requirements. Generally, an induction procedure involves the following basic steps:
1. Reporting for duty before the concerned head of the department at a certain place.
2. The head of the department welcomes the new employee.
3. Introduction to the organizational head / branch head by the head of the department.
4. Organizational head/ Branch head introduces him to the important employees
5. Supervisor concerned introduces him to his co-workers in that section.
6. Providing information about the duties, responsibilities, rights, facilities, welfare measures, etc

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