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HUMAN RESOURCE PLANNING

MEANING AND DEFINITION


HR Planning means that the planning of providing right type and right number of people in order to carry out the objective of an organization. It can be also called manpower planning, personal planning or employment planning which includes managerial activities that set the companys objectives for the future. Human resource management starts with the HRP and after that an organization fills up the vacancies through the selection and recruitment process. HRP is defined as the process by which an organization ensures that it has the right number and kind of people, at the right place, at the time, capable of effectively and efficiently completing those tasks that will help the organization to achieve its overall objectives. HRP includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future.

IMPORTANCE OF HRP
HRP plays an important role in the field of HRM. 1.

Future Personnel Needs

HRP is very helpful to determine the needs of future personnel. The organizations have to correctly plan or decide the number of future personal needed for their jobs. If their plan is defective, it will result in surplus or deficiency in staff strength. If there is surplus, they have to resort to voluntary retirement scheme to remove the excess staff. If there is succession planning, such problem will not come. 2.

Coping with Change


HRP helps the enterprises to co-operate with changes in the field of

competitive forces, markets, technology, products, and government regulations and these changes generate changes in job content, skill demands and number and type of personnel.

3.

Creating Highly Talented Personnel


Now a days jobs are becoming highly intellectual and incumbents are getting

professionalized. People who are highly qualified than they are selected are creating frequent shortages in the organization by seeking another jobs. The technology changes will often up grade or degrade jobs. As technology changes new jobs are created and people are hired, but the industry could not retrench its workers for the new jobs. And so, they have to return and redeploy the old workers (not all) who may not be competent for the new job. The personnel who are more talented, experienced and qualified, are frequently required in accordance with the technology changes. HRP will help to avoid this entire situation.

4.

Protection of Weaker Sections


HRP helps to protect the interests of the weaker groups by giving sufficient

opportunities to them.

5.

International Strategies
For international business, employment of foreign nationals and the

reassignment of employees from within or across national borders are necessary in order to achieve international expansion strategies. HRP helps employment, recruitment, selection, and placement etc in the field of international business.

6.

Foundation for Personnel Functions:It provides the necessary information for designing and implementing

personnel functions like recruitments, selection etc. 7.

Increasing Investments in Human Resources


The employees who gradually develop their skills and abilities will be more

valuable resources. So organizations make the investments in its human resources either through direct training or job assignments. 8.

Resistance to change and more

3 Without HRP, it will be very difficult for the organization to assume when it can more employees around anywhere and anytime it needs in case of changes like self-evaluation and evaluation of loyalty and dedication. 9.

Other benefits
1. Upper management 2. less personnel costs due to anticipation of imbalances by the management. 3. More time 4. Better opportunities in including women and weaker groups. 5. Better planning of assignments in order to develop manager. 6. Major and successful demands on local labor markets.

FACTORS AFFECTING HRP:The important factors are 1. Type and strategy of organization. 2. Organizational growth cycles and planning. 3. Environmental uncertainties. 4. Time horizons. 5. Type and quality of forecasting information. 6. Nature of jobs being filled and 7. Off loading the work.

1.Type and Strategy of Organization


The type of information determines the production process involved, number and type of staff needed and the supervisory and managerial personnel required.

2..Organizational Growth Cycles and Planning


Whenever an organization grows, planning is a must for lay off, retrenchment and retirement; it is very much effective in case of serious financial and sales shocks. 3. Uncertainties The environmental uncertainties like political, social and economic changes will be overcome by formulating recruitment, selection, training and development and policies and programme .

4 4.Time Horizons:There are short terms plans and long term plans. 5.Type and Quality of information The type of the information depends on the quality of data with respect to organizational structure, budgets, production schedules etc. 6.Nature of Jobs being filled For the recruitments of suitable candidates, sufficient time shall be given by anticipating job vacancies. 7.Off-Loading the work:When orgainzations have excess labour they off load part of their work to outside parties.

THE PLANNING PROCESS:The planning process includes organizational objections and policies, demand supply factors, HR programming and implementation, control and evaluation of programme, and, surplus and shortage. 1.Organisational objectives and Policies:The objectives of HR plan and, number and characteristics of employees must be derived from organizational objectives. 2.HR Demand forecast:It is the process of calculating the future quantity and quality of people required. HR demand forecast enables to quantify the jobs, to determine desirable staff, to prevent shortage of people, to monitor the complaints with legal requirements. 3.Forecasting Techniques The techniques are 1. Managerial judgment 2. ratio-trend analysis 3. work study techniques 4. Delphi techniques 5. Flow models 6. others

Managerial judgment:It means discussion and arrival of a figure which will be future demand for labour by the managers sitting together. Ratio Trend Analysis:This speedy forecasting technique include studying past ratios between the number of workers and sales and forecasting future ratios Work Study Techniques These techniques are used in applying work measurement which includes production budget productive, standard and actual hours for labour volumes of output. Delphi Technique It is a method of forecasting personnel needs from a group of experts unit by repeating summaries and survey until they agree. Flow Models The simplest flow model is known as the mark or model. The fore casters will decide the time to be covered , establish categories, Count the annual

movements , Estimate the probability of transition. Other forecasting methods New venture analysis and mathematical models are also useful in forecasting personnel needs.

HR Supply Forecast
Supply forecasting measures the number of people likely to be available from within and outside an organization. The supply analysis includes i. ii. iii. Existing human resources Internal sources of supply External sources of supply Present Employees Each personnels skills and abilities are summarized by HR auditors like non-managers is and the management. Skills Inventors

6 The audits of non-managers are called skills inventories and this include; 1. Personal data 2. Skills 3. Special qualifications 4. Salary and Job history 5. Company data 6. capacity of individual 7. Special preference of individuals The Human resource information system (HRIS) is a systematic procedure for collecting, storing, maintaining, retrieving and validating computers. It is very useful in the field of skills inventories. Management Inventories The audits of management is called management inventories. These include, 1. Work history 2. Strengths 3. Weaknesses 4. Promotion potential 5. Career goals 6. Personal data 7. Number and types of employees supervised. 8. Total budget managed 9. Previous management duties. data with the use

Internal Supply
These techniques are used for the following purposes. 1. inflows and outflows 2. Turnover rate 3. Conditions of work and absenteeism 4. Productivity level and 5. Movement among jobs. Inflows and outflows

7 In order to ensure the equalization of supply with demand the determination and estimate of losses by way of transfers, resignations discharges, demotions etc and gains by way of promotion and transfers is necessary. Turnover Rate It is the traditional and simple method. Turnover rate = Number of separation during one year Average number of employees during the year Conditions of work and Absenteeism The changes in conditions of work are to be assessed. Absenteeism means an unauthorized absence from work. Absenteeism = Number of persons days lost x 100 Average number of persons x Number of working days Productivity Level When the productivity increases the requirement of persons will be reduced and vice versa. Movement among Jobs When the personnel employed for one job, they may get another job in future by way of promotion etc. x100

External Supply
External supply is important in the planning process for the following reasons. i. ii. iii. New blood and mew experience will be available Organisation needs to replenish lost personnel and Organizational growth and diversification create the needs to use external sources.

HR Programming
After forecasting HR demand and supply both shall be balanced so that the vacancies are filled by the right employment at the right time.

HR Plan implementation
For the implementation, HR plans are to be converted into action programmes like1, recruitment, selection and placement 2, Training etc. Recruitment, selection and placement

8 Sometimes organizations hire a group of qualified candidates as trainees for one or two years and assignments are given to them and then selection will be done from among them for specific jobs. Training and Development This programme is necessary for the existing staff, identification of resource personnel and budget allocation Retraining and Redeployment Whenever a technology changes or manufacturing of products is stopped; its workers shall be retained and redeployed. Retention Plan This will help to reduce avoidable separations of employees. The following are the important actions. 1. Compensation plan 2. Performance appraisal 3. Employees leaving in search of green pastures 4. Employees quitting because of conflict. 5. The induction crisis 6. Shortages 7. unstable recruits Downsizing Plan In this plan, the employees are trimmed due to excess in number.

Control and Evaluation


The budgets, targets standards and reports shall be verified and the HR plan should control the same to monitor achievements and the evaluation shall be done with the plan.

Requisites for successful HRP


For successful HRP, the following are the important pre-requisites 1.HRP must be recognized as an integral part of corporate planning. 2.Backing of top management for HRP is absolutely essential. 3. The responsibilities should be centralized. 4. Personnel records must be complete up- to- date and readily available.

9 5. The time horizon of the plan must be long enough in order to resort to any remedial action. 6. The techniques shall be suited to the available data and the accuracy. 7. Plans should be prepared by skill levels. 8.Data collection, analysis, techniques and the plans are to be revised and improved in the light of experiences. References:1. Terry L.Leap and Michael D.Crino, Personnel Human Resource Management Macmillan, New York, 1990, p.156,157,159,160,161,166,171,172 2. Dale S. Beach, personnel The Management of people at work, Fourth Edition, Macmillan, New York, 1980,P.185. 3. William B. Werther and Keith Davis, Human Resources and Personnel Management, Fourth Edition, McGraw Hill, New York, 1993, P.166,176. 4. Randall S. Schuler; Personnel and Human Resource management, West Publishing Co., New York, 1981, P.71. 5. Mathis and Jackson, Personnel contemporary perspectives and Applications, Third Edition, West Publishing Co., New York, 1982, P.169. 6. William. P. Anthony, et al. Strategic Human Resource Management, Dryden Press, New York, 1993, P.187. 7. Michael Armstrong, A Hand book of Personnel Edition, 1988,

P.206,210,212,225,227. 8. William.J.Rothwell, Strategic Human Resource Planning and Management, Prentice Hall, New Jersey, 1988, P.173, 175. 9. R.Wayne Mondy and Robert M.Noe, personnel The Management of Human Resources, Allyn and Bacon, 1981, P.109,209. 10. Edwin B.Flippo, Personnel Management Sixth Edition, McGraw 1 till, New York, 1984, P.154.

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JOB ANALYSIS AND DESIGN


In order to achieve effective HRP the duties and skills for performing all the jobs are to be carefully looked into.

MEANING AND DEFINITION


It is the process of collecting information about a job via (i) Job description and (ii) job specification. Job Analysis is defined as follows:1. It is the process of studying and collecting information relating to the operations and responsibilities of a specific job. 2. It 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. 3. A job is a collection of tasks that can be performed by a single employee to contribute to the production of some product or service provided by the organization. The process of job analysis includes the following, 1. Strategic choices 2. Information gathering 3. Information processing

Strategic choices : It includes


1. employee involvement 2. The level of details 3. Timing and frequency 4. Past-oriented versus future-oriented Employee Involvement The extent of the employees involvement depends upon the needs of both the organizations and employees. The employees are to be given information about the contents of job etc.

11 The level of Detail The nature of job being analyzed determines the level of detail in job analysis. When and How often The timing and frequency of conducting job analysis is the another choice. Past Oriented Versus Future Oriented:Due to fast growth or technological changes an organization may change.

Information Gathering
It includes 1. Type of data to be collected 2. Methods to be adopted 3. The person who are to collect the data. The information gathering depends on the purpose and the status of current job analysis programme

Information Processing
After collecting the data about job, the next step is to process or prepare job description and job specification. Job description includes listing of the job title,

tasks, duties and responsibilities, and job specification includes listing of employee qualifications, skills and abilities.

Purposes of Job Analysis


The data gathered from a job analysis programme are useful in HRP, hiring of workers, training, job computerized personal evaluation, compensation, performance appraisal,

information systems and safety and health. Tasks. Job

analysis may help to recruit and select the right people with qualification and skills needed for functioning the organization satisfactorily. Human Resource Planning. In HRP, Job analysis is necessary for HRP determines type and number of personnel be needed in future. Recruitment and Selection The objective of the employee hiring is to match the right people with the right jobs. Training and Development.

12 These programmes are designed in accordance with job requirements Job evaluation. For establishing wage and salary differentials relative worth of each job is to be determined through job evaluation. Remuneration. This involves fringe benefits, bonus and other benefits. Performance Appraisal For ordinary promotions, efficiency transfers or assessing training needs, the assessment the actual performance of a worker is to be evaluated. Personnel information. Organizations are using computerized personnel information systems to

improve administrative efficiency and provide decision report. Safety and Health Job analysis helps to uncover and identify hazardous conditions and unhealthy environmental factors. METHODS OF COLLECTING JOB DATA. They are i) observation 2) interviews 3) questionnaire 4) checklists 5) Technical conferences. 6) diary Observation In this method, job analysts are carefully observing the job holders at their work and they will recruit what and how job workers does and the time taken for completing the given tasks Interview. The job holders and supervisors are being interviewed by the analysts to gather job information. Questionnaire. Standard questionnaire or questionnaire prepared by the analysts are filled up by the job holders. Thereafter, there are approved by supervisors. Checklists. It is resembles the questionnaire. But it contains less subjective judgments in the form of yes or no variety. The job holders can tick only these tasks that included in their jobs.

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Technical Conference method. In this method a conference o supervisors are conducted for gathering details about the job. Diary Method. In this method, the job holders have to record in detail their activities each day. But this method is time consuming and is not much in practice. Quantitative Technologies. For assessing a quantitative to each job, the position analysis questionnaire (PAQ), Management position, description questionnaire and functional job analysis, technologies are frequently used. Position Analysis Questionnaire It is used for analyzing almost every job in terms of employee activities. It contains 194 job elements and are divided into 6 groups. Management Position Description Questionnaire (MPDQ) It contains 208 items relating to management activities and are grouped into 13 categories. Functional Job Analysis. (F J A) It is a worker oriented job analytical approach to describe the whole person.

Job analysis and total quality Management.


Job analysis and total quality Management implies total commitment to quality. The essentials are, 1) 2) 3) 4) 5) 6) 7) Creation of the common company theme. Creation of customer mentality. Improvement Each function to reassess its purposes. Improvement becoming a continuous process. communications to improve and Bureaucracy to be reduced.

POTENTIAL PROBLEMS FOR JOB ANALYSIS. Support from top management

14 The management shall communicate all employees that their full and honest participation is very important for the process. Single Means and source. Though there are many methods and sources analysts relay on only one method. No Training or Motivation Job holders are not trained or motivated to generate quality data for job analysis. Activities may be distorted. If there is no training or preparedness, job holders may tend submit distorted data. JOB DESIGN. Job design involves the following steps. 1. The specification of individual tasks which determines the content of the jobs. 2. 3. The specification of the methods of performing each task. The combination of tasks into specification jobs to be assigned to individuals. FACTORS AFFECTING JOB DESIGN. The factors which affect the job design are organizational, environmental and behavioural. Oraganiztional Factors. These include characteristics of tasks, work flow, ergonomics and work practices. Environmental Factors. These factors include employee, abilities and availability and social and cultural expectations. Behavioural Elements.

These factors are related to the needs and the necessity to satisfy them TECHNIQUES OF JOB DESIGN.

15 The popular techniques of job design are work simplification, job rotation, job enlargement, job enlistment, autonomous group working and high performance work design. References 1) Edwin B. Flippo, Personnel Management, sixth edition, McGraw Hill, New York 1984, P 114. 2) Herbert G Hereman III, etal, Personnel/Human Resource Management, Third Edition, Illinois, Home wood, 1986 P 73. 3) William P. Anthony, et al, Strategic Human Resource Management, Dryden press, 1993, P 208, 222. 4) Terry L. Leap and Michael D Crino, personnel/Human Resources Management, Macmillan, New York, 1990, P.133. 5) Michael Armstrong, A Hand book of Personnel Management Practice, Third Edition, Kogan page, London 1988, P 316, 183,164,183. 6) Dale S. Beach, personnel The management of people At work, Fourth Edition, Macmillan, New York, 1980, P.169, 172. 7) Mathis and Jackson, Personnel contemporary perspectives and applications, Third edition west publication, Co., New York 1982, P 152, 138. 8) Lloyd L. Byars and Liside W Rue, Human Resources, Management, Darwin 1992. P 90. 9) Barry Popplewell and Non wild smith PHO. 10 Milkovich and Boudreau, Personnel Human resources management, fifth edition, Home wood Irwin, 1990, P 125. 11. William B Werther and Keith Davis, Human Resources and personnel becoming the best Gower, 1988,

management, Fourth edition, M grow Hill New York, 1993, P. 148 12. Randall S. Schuler, et al Effective personnel management, Third edition, West Publishing, New York, 1989, P 461.

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RECRUITMENT.
MEANING AND DEFINITION. It means a process of searching and obtaining people for jobs. It is defined as the process of finding and attracting capable applicants for employment. The process begins when recruits are sought and ends when their applications are submitted. PURPOSES AND IMPORTANCE. Generally the purpose of recruitment is to build a pool of qualified

candidates. The other purposes are to, 1) 2) 3) Determine the present and future requirements of the organization. Increase the pool of job candidates at minimum cost. Help increasing success rate of the selection by reducing unwanted candidates. 4) Help reducing the probability of that applicants will leave only after a short period of time. 5) 6) 7) 8) Meet the organizations legal and social obligations. Begin identifying and preparing potential job applicants Increase organizational and individual effectiveness. Evaluate the effectiveness of various recruiting techniques and sources. Recruitment process plays a major role. If it is defective, it will result in extra cost on training and supervision. FACTORS GOVERNING RECRUITMENT. These include external and internal factors. External Factors. Some of the external factors which govern recruitment are supply and

demand unemployment rate, labour market condition, political and legal considerations and companys image. Internal Factors While recruiting personnel, the following internal factors are to be considered. They are recruiting policy of the organization, temporary and positive employee,

17 local citizen, the engagement of the company in HRP, Size, cost, growth and expansion. RECRUITMENT PROCESS. This process includes five stages via 1) Planning 2) Strategy development, 3) Searching 4) Screening and 5) evaluation and control. Planning It involves the translation of job vacancies and information into a set of objectives which specify the number and type of applicants. Strategy Development. After Planning, the following are to considered. 1) make or buy employees 2) Technological sophistication of recruitment and selection devices 4) sources of recruitment 3) 5)

Geographic distribution of labour markets sequencing the activities. Internal Recruitment

This includes present employees, employee referrals, former employees and former applicants. Evaluation of Internal Recruitment The internal recruitment has the following advantages. 1.It is less costly than internal recruiting. 2. Organizations shall have a better knowledge of the internal candidates skills and abilities. 3. An organizational policy of promoting from within can enhance employees morale, organizational commitment and job satisfaction. But this recruitment may create lack of new talents and policies has a greater impact. External Recruitment The sources are 1.Professional or Trade Association. 2. Advertisements. 3. Employment exchanges 4. College/University/Institute placement gervices. 5. Walk-ins and write-ins 6. Consultants

18 7. Contractors 8. displaced persons 9.Radio and Television, acquisition and mergers and 10.Competitors

International Recruiting
Recruiters shall be familiar with the employment practices in the foreign country for international recruitment.

Evaluation of External Recruitment


Merits 1.Benefit of new skills, talents and experiences. 2. Reservation requirements can be fulfilled. 3. Scope for resentment heart burn and jealousy can be avoided Demerits 1.Better motivation and increased morale are lost. 2. Cost is high 3. Occurrences of selection of wrong people and rejection of right people. SEARCHING Searching includes i. Source activation and

ii. selling SCREENING The purpose of the screening is to remove unqualified people from the recruiting process. EVALUATION AND CONTROL Costs such as Salaries, cost of advertisements agency fees, recruitment overheads and administrative expenses etc are incurred so that Evaluation is necessary.

Evaluation of Recruitment process


It must include 1.Return rate of application. 2.Number of suitable applicants. 3. Retention and performance of selected candidate

19 4. Cost of the recruitment process. 5. Time lapsed data. 6. Comments on image projected.

Evaluation of Recruitment methods


It must include 1.Number of initial enquiries received. 2. Number of candidates at various stages. 3. Number of candidates recruited 4. Number of candidates retained

References :
1.William B Werther and Keith Davis, Human resources and personnel management, Fourth edition, McGraw-Hill, New York, 1993, p.195, 203,206 2. Randall S. Schuler et al Effective personnel management, Third Edition, West publishing New York, 1989, P.106,121,122 3. Rick Stoops, Recruiting as a sales function, personnel Journal, December 1982, P.890 4. Herbert G. Heneman III et al Personnel/Human Resource management, Third Edition, Irwin, 1986 P.224, 225,226,242,248 5. R. Wayne Mandy and Robert M Noe III Personnel : The management of human resources, Allyn & Bacon, 1981, P.130,131 6. William P. Anthony et.al, strategic human resource management, Dryden Press, 1993, p.271. 7. Garry Dessler, Personnel management Fourth edition, Prentice- Hall International, 1988 P.122. 8. Robert L .Mathis and John H..Jackson, Personnel, Third Edition, West publishing, 1982,P179, 180. 9. John H. Bernardian and Joyce E.A., Russell, Human Resource management An Experiential approach, McGraw-Mill, New York, 1993, P.179 10. Terry. L. Leap and Michael D. Crino, Personnel/ Human Resource Management , Macmillan, New York, 1990 11. Ian Beandwell and Len Holden, Human resource management, Macmillan, 1996 P.208

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SELECTION
MEANING AND DEFINITION Selection means the process of picking right candidates from the pool of candidates. Selection is defined as the process of differentiating between applicants in order to identify (and hire)those with a greater likelihood of success in a job. ROLE OF SELECTION Selection plays an important role mainly for the following reasons. 1.Work performance which depends on individuals who have the competence and the willingness to work. 2.. Costs incurred in recruiting and hiring personnel.If the selection is wrong, cost will be high. ORGANISATION FOR SELECTION Some companies, screened and hired its own employees through each department. Now a days, in many countries, centralized organizations are established for selection. SELECTION PROCESS It includes environmental factors external or internal, preliminary interview, Selection Tests, choosing Tests Employment Interview, reference and Background checks, Selection decision, Physical examination, Job offer, Employment contract and Evaluation.

Environmental factors
The external factors are supply and demand of specific skills in the labour market, unemployment rate, labour-market conditions, legal and political considerations, and companys image. The internal factors are companys policy, HRP, and cost of hiring.

Preliminary Interview

21 This helps to reject unqualified employees for the reasons which did not appear in the application.

Selection Tests
These are used to determine the ability, aptitude and personality of applicants. The important tests are, ability, aptitude, personality, interest, graphology and polygraph tests.

Choosing Tests
The criteria for choosing the tests are reliability, validity, objectivity and standardization.

Employment Interview
This allows the employee to understand the employer and vice versa and it can be one-to-one, sequential or panel.

Reference and Background Checks


For the purpose of verifying the given information and gaining additional background information, employers may request names, addresses, and telephone numbers of references.

Selection Decision
The final decision is made from the pool of candidates who have passed the tests, interviews and reference checks.

Physical Examination
In order to detect the infectious disease of the candidates, physical tests are recommended. It helps, to determine whether a job seeker is fit for the concerned job, the applicants to know about their health defect so as to decline from the job which may be detrimental to themselves, and the employer from invalid compensation.

Job Offer
It is made through a letter of appointment to the selected candidates.

Employment Contract
The candidate and the employer have to execute certain documents like attestation form, contract of employment

Concluding the Selection Process

22 After the candidates are appointed, the rejected candidates must be told that they are rejected for their profiles did not match the requirements of the organization.

International hiring
Nowadays international hiring assumes greater relevance.

Evaluation
If the selection process is properly done, it will ensure the availability of qualified, competent and committed employees.

References :
1.Thomas H. Stone, Understanding Personnel Management, CBS College Publishing, 1989,p.173,205 2. Robert L .Mathis and John H..Jackson, Personnel, Third Edition, West publishing, 1982,P.193, 215 3. R. Wayne Mandy and Robert M Noe III Personnel - The management of human resources, Allyn & Bacon, 1981, P.175,181,182. 4.William B Werther and Keith Davis, Human resources and personnel management, Fourth edition, McGraw-Hill, New York, 1993, p.241 5. . Ian Beardwell and Len Holden, Human Resource Management, Macmillan, 1996 P.233 6. Randall S. Schuler et al Effective personnel management, Third Edition, West publishing New York, 1989, P.159.

7. Edmund R. Gray and Larry R. Smeltzer, Management The Competitive Edge, Macmillan, New York,1990,p.436 8.Dale S. Beach, personnel The Management of People at Work, Fourth Edition, Macmillan, New York, 1980, P.225. 9. Nanshi F. Matsuura ,International Business- A New Era, HBJ, San Diego,1991, p.466. 10. Terry. L. Leap and Michael D. Crino, Personnel/ Human Resource Management , Macmillan, New York, 1990,p.263.

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