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O
  




  
³Million people think!
Thousand people talk!!
Hundred people move in the right direction!
Ten people run the business!!
One successfully create world-class company!´
ã ÷uilding a great organization
Types of Organizations
- Sick Organizations : 3-5yrs
- Good Organizations : 10-20yrs
- Great Organizations : over 50yrs
Great organizations are formed by ordinary
people with extra-ordinary determination.
Eg: Ford Company
㠛lanning an organization and planning the
people
ã Role of HRM Department
ã Five rights of a successful ÷usiness
   
 

㠛rinciple of division of labour
㠛rinciple of unity of command
㠛rinciple of authority and responsibility
㠛rinciple of decentralization

 
  
   


›eriod Type of Structure Focus

›re 1880 Simple Structure Inward

1880-1920 Functional Structure Inward
1921-1960 Divisional Structure Inward
1961-1985 Matrix Structure Inward
1986-1995 ›rocess Structure Customer (local)
›ost 1995 Network Structure Customer (Global)
 
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The Simple Structure µHRM¶ in simple structure Organization

CEO
TC›

Workers
T ± Thinking
µCEO¶ Managed workers directly C ± Controlling
› - ›erforming

›eriod: pre 1880

No Hierarchy
  
  



The Functional Structure µHRM¶ in functional structure organization

CEO
T

C
Function 1 Function 2
›

Function 3 Function 4 Hierarchy with three levels

Division of labour concept adopted,

function head came into existence

›eriod: 1880 to 1920

      



The Divisional Structure µHRM¶ in Divisional structure organization

CEO

÷oard
T

Division 1 Division 2 C

Division 3 Division 4
Hierarchy with three levels

Companies diversified to non core business

Division head came into existence

›eriod: 1921 to 1960

    



The Matrix Structure µHRM¶ in Matrix structure organization

CEO

T
Area
T&C
›roduct Area -1 Area -2 Area -3
›roduct -1 ›

›roduct -2

›roduct -3
Hierarchy with three levels

Companies grown in size,

reached multinational level

›eriod: 1961 to 1985

     


The ›rocess Structure

Customer
Functional Focused Org
R&D ›roduction Sales Finance

›rocess Focused Org Customer

R&D ›roduction Sales Finance

CEO

Firm Infrastructure M

HRM a
Support r
Technology g
›rocurement i
Value Chain Services n
›rimary
Inbound Operations Outbound Marketing &
logistics logistics Sales
 
  


µHRM¶ practice in process structure organization

TC›

TC›

TC›

TC› done by all levels, organizations forced to graduate from

partially customer focused approach to fully customer focused approach
    


The Network Structure HRM in Network structure
organization

CEO

Vendor -1 Specialist -1
T T T
Core value Specialist -2 c c c
Vendor -2 Addition p p p
activities
Specialist -3
Vendor -3 team 1 team 2 team 3

Outsource No Hierarchy, team based

Insource core Outsource
Non-core
manufacturing Non-core
Manufacturing
& office functions Office functions
functions

›eriod: ›ost 1995

 
 

  



ã Stability of the environment
ã Size
ã Culture (norms and values attached to work)
ã Internal labor market
ã Technology of operations
㠛ower


 

E.W. Vetter viewed HR› as ³a process by

which an organization should move from its
current manpower position to its desired
manpower position. Though planning
management strives to have the right number
and right kind of people at the right place at
the right time, doing things which result in
both the organization and the individual
receiving maximum long-run benefit´.
   
ã Forecast personnel requirements
ã Recruit and retain HR
ã Cope with changes
ã Improve the standards, skill, knowledge ability,
discipline, etc.
ã To meet the needs of the programs of expansion,
diversification, etc
ã Use existing manpower productively
㠛romote employees in a systematic manner
   
ã Reservoir of talent
㠛repare people for future
ã Expand or contract
ã Cut costs
ã Succession ›lanning
    
Forecasting the demand for HR
1. External Challenges
a) Economic developments
b) ›olitical, legal, social and technical changes
c) Competition

2. Organizational decisions ± Organizations strategic plan,

sales and production forecasts and new ventures must
all be taken into account in employment planning.
3. Workforce factors ± demand is modified by
retirements, terminations, resignations,
deaths and leaves of absence.

4. Forecasting techniques
ã Expert / Estimating techniques ± estimates
HR requirements using experiences and
judgments.
ã Trend analysis ± HR needs can be estimated
by examining past trends.
ã Aggregate models- this model is used based
on several key variables that are known to
directly affect the organization¶s overall HR
needs.
5. Other methods
a) Workforce analysis ± The average loss of
manpower due to leave, retirement, death, transfer,
discharge, etc. during the last 5 yrs may be taken
into account.
b) Work load analysis ± on the basis of work load on
the employees.
c) Job analysis ± helps in finding out the skill and
abilities required to do the job efficiently.
㠛reparing Manpower Inventory
1.Internal labour supply
- Staffing table
- Markov analysis
- Skills inventory
- Replacement chart
2.External labour supply
ã Determining manpower gaps
ã Formulating HR ›lans
1. Recruitment plan
2. Redeployment plan
3. Redundancy plan
4. Training plan
5. ›roductivity plan
6. Retention plan
7. Control plan
   
ã ong term HR›- deals with future vacancies
ã Short term HR›
- The weak incumbent ± where an existing personnel
is not performing according to the specifications of
the job.
- The strong incumbent ± where an employee have a
greater ability than their present job requires. So a
portion of the individuals ability remains unutilized.
- An unexpected vacancy
  
ã HR› at lower level ± benefit of persons who are more
familiar with the day-today problems and will be more
interested in fulfilling the plans if they have had a hand in
formulating them.
ã HR› at plant level ± on the basis of past data and future
projections. Determines the number of employees
required the next year also promotable employees, for
the annual manpower plan.
ã HR› at the highest level ± reviews all plans submitted by
the divisional committees and will develop similar plans
for the headquarters staff. ›rojections of HR
requirements of various kinds during the next five years.
      
ã Assist and counsel operating managers to plan and
set objectives
ã Collect and summarise manpower data keeping long-
run objectives and broad organizational interests in
mind
ã Monitor and measure performance against the plan
and keep top management informed about it
㠛rovide proper research base for effective manpower
and organizational planning
     
ã Accuracy ± ›rojecting manpower needs over a period of time is
a risky one. Its not possible to track the current and future trends
correctly and convert the same into meaningful action
guidelines.
ã Support ± less support from top officials due to no immediate
gains
ã Numbers game ± HR› in the final analysis, may suffer due to an
excessive focus on the quantitative aspects. The quality side
may be discounted thoroughly.
(Quality side include ± motivation, morale, career prospects, and
training avenues)

  
ã Objectives
ã Top management support
ã Employee skills inventory
ã HRIS
ã Coordination
 

According to Edwin ÷ Flippo
³ Recruitment is the process of searching for
prospective employees and stimulating them to
apply for jobs in the organization´
  

ã To attract people with multi-dimensional skills and experiences
that suit the present and future organizational strategies
ã To induct outsiders with a new perspective to lead the company
ã To infuse fresh blood at all levels of the organization
ã To develop an organizational culture that attracts competent
people to the company
ã To search or head hunt people whose skills fit the companies
values
ã To devise methodologies for assessing psychological traits
ã To search for talent globally and not just within the company
ã To design entry pay that competes on quality but not on quantum
ã To anticipate and find people for positions that do not exist yet

   

ã Determine the present and future requirement of organization.
ã Increase the pool of job candidates.
ã Help increase the success rate of the selection process by reducing the
number of obviously under-qualified job applicants.
ã Help reduce the retention rate.
ã Increase organizational and individual effectiveness in the short term
and long term.
ã Evaluate the effectiveness of various recruitment techniques.
ã Start identifying and preparing potential job applicants who will be
appropriate candidate.
ã Meet the organizations legal and social obligations regarding the
competition of its workforce.
  
 



Factors Governing Recruitment

External Factors Internal Factors

Demand Vs Supply Recruitment ›olicy

Unemployment Rate Temporary & ›art

Time employees
abor market
MNC¶s recruitment
›olitical Factor Of local citizens
HR›
egal Factor
Org Size
Company Image
Cost of recruiting
External Factors:
ã Demand Vs Supply ± Demand of specific skills and
its supply.
ã Unemployment Rate ± when the unemployment rate
is high, the company¶s recruitment process may be
simpler and vice versa.
ã abour market ± local area may be of prime
importance in recruitment for most no-managerial
and supervisory positions. However, recruitment for
executive and professional positions may be
concerned more with all India market.
㠛olitical Factors ± reservations for SCs, STs,
minorities and O÷Cs is a political decision. Also
preference to people who belong to the respective
state.
ã egal factor ± Acts dealing with labour, cover working
conditions, compensation, retirement benefits, safety,
and health of employees, etc.
ã Company image ± company¶s image also matters in
attracting large number of job seekers.
Internal Factors:
ã Recruiting policy ± ›olicy of recruiting internally or
externally.
ã Temporary and part time employees
ã MNC¶s recruitment of local citizens ± policy relating to
the recruitment of local citizens.
ã HR› ± helps to plan recruitment activities in a proper
manner
ã Organization size
ã Cost of recruiting
 O     
The applicant evaluates career options & Narrows choice to a field or sector

The Curriculum Vitae is designed or updated

Requests are made to appropriate people to act as referees

Duplicate copies are made of Certificates

Applicant sees advertisement and sends for details

Short letter dispatched to ask for application forms etc.

Applicant sets up file for this ›hotocopies made of all

application- Retains advertisement documents of application
 Applicant completes and returns: 1. Application form. 2. Formal letter of
Application. 3. Encloses a copy of CV and any copy certificates requested.

Applicant starts research on Research intensified if

organization shortlisted

Short interview acceptance letter despatched / or through phone call and

email

Oral acceptance of jobs offer

Written letter of acceptance despatched and contract returned

etter of resignation sent to current employer


  
Need to make an appointment is perceived due to a promotion,
resignation, etc

The job description is drawn up or revised

The job specification is devised or revised

The advertisement(s) are designed and placed in newspaper

Journals etc

A schedule describing the post is drawn up to send to applicants

Organization despatches job details- schedule and applicant form

Applications are shifted and a shortlist drawn up references are taken up

Interview invitations sent out to shorlisted applicants

Final discussions on Job/Needs etc. ›reparations for interviews

Interviews take place. Oral job offer made

Written job offer despatched with contract for signature subject to

references

References taken up with applicant¶s current employer

  

ã Internal methods
1. ›romotions and transfers
2. Job posting
3. Employee referrals

ã External methods
1. Campus recruitment
2. ›rivate employment search firms
3. Unsolicited applicants/walk-ins
4. Internet recruiting
5. Advertisements
a) Newspapers ads
b) Television and radio ads


  

 


ã For recruiting unskilled workers, direct
recruitment at gate or friends and relatives of
existing employees or casual workers may be
the best sources or recruitment.
ã ÷ut for the recruitments of managers and
high officials various levels, consultants,
professional bodies, universities and
technical colleges may be the good source of
recruitment.
†  

ã Overtime
ã Subcontracting
ã Temporary employees
ã Employee leasing
ã Outsourcing

     


ã A recruitment policy indicates the

organizations code of conduct in this area of
activity.

  
  
s
 

   
 
 
  

 
1. Advertise all vacancies internally
2. Reply to every job applicant promptly
3. Inform job applicants the basic details and job conditions of every job
advertised
4. ›rocess all applications with efficiency and courtesy
5. Seek candidates on the basis of their qualifications
6. Aim to ensure that every person invited for interview will be given a fair and
thorough hearing
| 

 

1. Discriminate unfairly against potential applicants on the basis of sex, race,
religion, caste, etc.
2. Knowingly make any false or exaggerated claims in its recruitment literature
or job advertisements
 |



 
  


 

  
 
 



 


 


 




  



 









   















 
ã Selection is the process of picking individuals who
have relevant qualifications to fill jobs in an
organization. The basic purpose is to choose the
individual who can most successfully perform the
job, from the pool of qualified candidates.
    
ã Reception
ã Screening Interview
ã Application ÷lank
ã Selection Testing
1. Intelligence tests
2. Aptitude tests
3. ›ersonality tests
4. Achievement tests
5. Situation tests
6. Job knowledge test
7. Skills tests
9. Interest tests
ã Selection Interview
ã Medical examination
ã Reference checks
ã Hiring Decision
|   
ã The non directive interview
ã The directive or structured
interview
ã The situational interview
ã The behavioural interview
ã Stress interview
㠛anel interview
  

Evaluation

Close of Interview

Conduct of Interview

Reception

›reparation
    
㠛ossible outcomes of a selection decision:
1. True positive
2. True negative
3. False positive error
4. False negative error
ã False positive error ± a decision is made to hire an applicant
based on predicted success, but failure results.
False positive error incurs three types of costs:
1. Cost incurred while the person is employed, and this is the
result of production or profit losses, damaged company
reputation, accidents due to negligence, absenteeism and the
like.
2. Costs associated with the training, transfer or terminating the
services of the employee.
3. Costs of replacing generally the more important the job, the
greater the cost of the selection.
ã False Negative Error
In this type an applicant who would have
succeeded is rejected because of predicted
failure.
Cost difficult to estimate
 
  
ã Whether the applicant is medically suitable for the
specific job or not.
ã Whether the applicant has health problems or
psychological attitudes likely to interfere with work
efficiency or future attendance.
ã Whether the applicant suffers from bad health which
should be corrected before he can work satisfactorily.
ã Whether the applicant¶s physical measurements are
in accordance with job requirements or not.
   
ã Job first, Man next
ã According to Qualifications
ã Should be made aware of the working
conditions prevailing in the industry
ã While introducing the job to the new
employee an effort should be made to
develop a sense of loyalty and co-operation
in him.
  † 
š
Company imited
Appointment etter
Date«««««
Mr«««««««««..
««««««««««..
«««««««««««
Sub: Offer of appointment for the post of ««««««..
Dear Sir,
1. With reference to the interview test you had with us on««««..we have pleasure in offering you the post
of««««..on the following terms and conditions.
2. our continuation/confirmation of appointment will be subject to satisfactory verification of your
credentials/character and antecedents.
3. our pay will be Rs«««per month in the scale of Rs«««..plus D.A. Rs«««« and H.R.A. Rs««« as
adminissible from time to time under the Company¶s rules.
4. our appointment will be temporary for a period of 12 months from the date of your joining and this period may
be extended, if considered necessary by the company. ou will be deemed as confirmed in your appointment
only if you are intimated to that effect in writing.
5. ou have to obtain a satisfactory report of physical fitness from the Company¶s Medical Officer before joining
duty.
6. During your employment you will be governed by the Standing Orders, Rules and Regulations of the service of
the Company that are in force and which may be amended, altered or extended from time to time in respect of
workers.
7. The under mentioned documents enclosed, shall be duly filled in and
submitted before joining duty:
(i) Gratuity Nomination Form
(ii) ›rovident Fund Form
(iii) ›ersonal Data Form
8. our duties and responsibilities will be such as may be specified from
time to time by the Management, such duties being inclusive of all
duties and responsibilities relating to your substantive and other
grades/designations depending upon the exigencies of work.
9. If the above terms and conditions are agreeable to you, please sign and
return the duplicate copy of this letter and the Appendix µA¶ in token of
your acceptance of the appointment. ou should report for duty on or
before««««. At your own expense, failing which the offer made to
you automatically stands cancelled.

ours faithfully,
 

 
s
   



The basic objective of recruitment is to The basic objective of selection is to

attract maximum number of candidates choose best out of the available
so that more options are available candidates

Recruitment is a positive process Selection is a negative process as it

designed to assemble a suitable pool of involves rejection of candidates until a
applicants against a given job vacancy suitable candidate for the job is found.

Recruitment techniques are not very In Selection process highly specialized

intensive, requiring high skills techniques are required.

      
ã Welcomed
ã Helped to get acquainted with employees and
working conditions.

 
 

ã Introductory information
ã On the job information
ã Follow up interview
  
 


ã First impression is the best impression

ã ÷uild confidence of the employee in the organization
㠛roviding information about the company and
facilities provided.
ã Introducing the employee to the supervisors and
fellow workers
ã Creating a sense of security for the worker in his or
her job by impressing the idea that fairness to the
worker is the inherent policy of the organization.

   
ã Induction guide
ã Counseling
ã Follow up Interview
  
  
ã Internal model: meets manpower
requirements from the existing stock of
employees, except at the lowest level.
ã Internal recruitment may be vehicle for
establishing µcultural fit¶, morale, and
commitment, reinforced by socialisation
ã External model: meets manpower
requirements by recruiting from outside
ã May be used as a symbol that µtimes are
changing¶
|    

 
Vacancy arises

No
Do we need
End
to fill
es

Draft job description

Draft personnel specification

Shortlist applicants

Interview applicants

Select candidate

No
Offer accepted

Take up references
es No
Engage and induct Appoint?

   

  
ã It is geared to fill specific job vacancies
ã The process continues with the production of a job
description, either using or updating a previous one.
ã Recruitment is through advertising but with significant
usage of agencies and word of mouth
ã A limited number of selection methods are used
ã It concludes with offer/reject letters and candidate
acceptance/rejection with, increasingly, some
negotiation of terms.
      

 
ã Directed towards fitting people to available
jobs
ã Static and reflects the status quo
ã Over-reliance on interviews and references
may also impact adversely on the reliability
and validity of selection decisions.

    
 
 

  

ã Shift from reactive nature to proactive nature.
ã Concentrates on fitting the job to the person
rather than the person to the job.
ã Selection against core competencies or skills
rather that the broad demands of a specific
job.
 
  
  
 
  

Relevance of recruitment and selection to strategically
driven change revolves around three concepts:
ã First, Strategy can be viewed as operating at three
different levels starting with corporate strategy and
moving through the strategic issues relating to
organization structures to end with functional
strategies.
ã Second, the essential relationship between functional
and corporate strategy, referred as µexternal
integration¶, can be regarded as two-way. This
acknowledges that much of what happens at the
functional level flows directly from the demands of
corporate strategy.
ã Third, the various dimensions of human
resourcing should not only be integrated with
corporate strategy but should also be
µinternally integrated¶ with each other
    

  

     
 
     s
 

 à

     




         






s

 s 
 
  


   


 s 
 

   

 
  

   
ã First level of strategy µ³Upstream´, first-order
decisions are concerned with long-term
direction of the enterprise¶ and embrace µthe
big decisions taken in the corporate office¶
Such as mergers or acquisitions and divestment
of an existing business
There are three distinct strategies adopted by
organizations to secure competitive
advantage:
- Innovation strategy
- Quality enhancement strategy
- Cost reduction strategy
ã Second level of strategy is termed
µdownstream second-order decisions¶ and
concerns the organization structures and
operating procedures put into place to
support first-order decisions. Thus a decision
to merge with or take over another
organization is followed by a set of decisions
governing the structures and relationships of
the µnew¶ organization.
Changes at this level can impact on such HR
areas as the roles performed by employees,
their reporting relationships, and
management style. These changes will feed
through to recruitment and selection as
revised expectations of and demands on
employees become clarified.
ã The third level of strategy is termed µdownstream
third-order decisions¶ where functional areas, in this
case HRM, define their strategies in accordance with
the first- and second-order decisions and the external
environmental factors operating on the organization.
Here recruitment and selection along with other HR
levers, have to take account of the human resource
implications of the first- and second-level strategic
decisions taken by the organization. It is this direct
linkage of third-level functional areas to corporate
strategy that is referred as µexternal integration¶.




ã Time-to-hire
ã Cost-to-hire
ã Quality-of-hire
ã Reducing dependencies on external agencies
| 



Reasons to pursue e-recruitment:
ã Improve corporate image and profile
ã Reduce recruitment costs
ã Reduce administrative burden
ã Employ better tools for the recruitment team
| 



imitations of E-Recruitment:
ã The culture approach of the organization towards
recruitment
ã The lack of knowledge of e-recruitment within HR
community
ã Internet usage by target candidates
ã Commitment of senior management
ã Quality and Quantity of candidates applying using
web-based tools.
ã Relevance of short listing criteria
ã Confidentiality and data production



 
ã Advertising job opening
ã Tracking the source of applications
ã Online enquiry forms


 
 
ã Cost of recruitment and selection activities
ã Time taken to fill
ã Volume/yield
ã Diversity and legal compliance
ã Candidate and employer satisfaction
†
 



ã A click on the mouse presents n number of
job sites to the candidate
ã It reduces the cost by 95% of the traditional
recruitment
ã It reduces the time from normal 43 days of
traditional recruitment to just a few days
ã It presents the list of job opportunities to the
candidate when he submits details of his/her
skill set
ã It shortlists the candidates by matching the
candidate¶s qualifications, skills, etc with those of
skills and the right competencies inbuilt in the
software
ã It also prepares interview schedules and
communicates the same to the candidates
ã It streamlines the entire recruitment process for a
given time and unlimited job recruitments
ã The number of people required for handling of
applications are reduced drastically