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HUMAN RESOURCE MANAGEMENT
UNIT – I
Human Resource Management: Definition – Objectives – Functions –
Evolution and growth of Human Resources Management – Qualities of a good
HR Manager - Roles of a HR Manager –Problems and challenges of a HR
Manager.
UNIT – II
Human Resource Planning: Definition-objectives-steps in human
resource planning-dealing with surplus and deficient man power-job
description-job specification.
UNIT – III
Recruitment and selection-objectives of recruitment-sources of
recruitment-steps in the selection process-selection test-testing-types-interview-
importance.
UNIT – IV
Training and development-principles of training-benefits of training-
difference between training and development-on the job training methods.
UNIT – V
Performance appraisal-process-methods of performance appraisal-
appraisal counseling.
TEXT BOOK:
1.Gupta C.B., Human Resource Management, sultan Chand & sons, New
Delhi,2005.
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UNIT – 1
Human Resource Management
Human Resource Management has come to be recognized as an
established part of management which is concerned with the human resources
of an organization. Its objective is to maintenance of better human relations in
the organization by the development application and evaluation of policies,
procedures and programmers relating to human resources to optimize their
contribution towards the realization of organizational objectives.
Human Resource Management is that branch of management which is
responsible on a staff basis for concentrating on those aspects of operations
which are primarily concerned with the relationship of management to
employees and employees to employees and with the development of the
individual and the group.
Human Resource Management Definitions
Edwin Flippo defines- Human Resource Management as
“planning, organizing, directing, controlling of procurement, development,
compensation, integration , maintenance and separation of human resources to
the end that individual, organizational and social objectives are achieved.”
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, “Human Resource Management 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”.
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together and develop into an effective organization the men and women who
make up a enterprise, enabling each to make his or her own best contribution to
its success both as an individual and as a member of a working group. It seeks
to provide fair terms and conditions of employment and satisfying work for
these employed.
The basic objective of Human Resource management is to help the
realization of the organizational goals. However, the specific objectives of
Human Resource management may be outlined as follows:
(i) To ensure effective utilization of human resources. All other
organizational resources will be efficiently utilized by the human
resources.
(ii) To establish and maintain an adequate organizational structure of
relationships 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, or by effecting transfers.
(iv) To ensure respect for human beings by providing various services and
welfare facilities to the Human Resource.
(v) To ensure reconciliation of individual / group goals with those of the
organization in such a manner that the Human Resource 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.
(vii) To achieve and maintain high morale among employees in the
organization by securing better human relations.
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HUMAN RESOURCE FUNCTIONS
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This involves recruitment, selection, placement, etc. of the Human
Resource.
(ii) Training and Development: Training and development of Human
Resource is a follow up of selection. It is a duty of management to
train each employee properly to develop technical skills for the job
for which he has been employed and also to develop him for the
higher jobs in the organization. Proper development of Human
Resource is necessary to increase their skills in doing their jobs and
in satisfying their growth need. For this purpose, the Human
Resource department will devise appropriate training programmes.
(iii) Remuneration: This function is concerned with the determination
of adequate and equitable remuneration of the employees in the
organization for their contribution to the organizational goals. The
Human Resource can be compensated both in terms of monetary as
well as non-monetary rewards.
(iv) Working Conditions: Merely appointment and training of people
is not sufficient, they must be provided with good working
conditions so that they may like their work and work place and
maintain their efficiency. Working conditions certainly influence
the motivation and moralie of the employees. These include the
measures taken for health, safety, and comfort of the work-force.
The Human Resource department also provide for various welfare
services which relate to the psychical and social well-being of the
employees.
(v) Motivation: Employees work in the organization for the
satisfaction of their needs. In many of the cases, it is found that
they do not contribute towards the organization goals as much as
they can. This happens because employees are not adequately
motivated. The Human Resource manager helps the various
departmental managers to design a system of financial and non-
financial rewards to motivate the employees.
(vi) Human Resource Records: Human Resource department
maintains the records of the employees working in the enterprise.
It keeps full records of their training, achievements, transfer,
promotion, etc. It also preserves many other records relating to the
behavior of Human Resource like absenteeism and lab our turnover
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and the Human Resource programmes and policies of the
organization.
(vii) Industrial Relations: These days, the responsibility of industrial
relations is mainly discharged by the Human Resource manager.
Human Resource managers help in collective bargaining, joint
consultation and settlement of disputes, if they arise. This is
because Human Resource manager is in possession of full
information relating to Human Resource and has the working
knowledge of various labour enactments. The Human Resource
manager can do a great deal in maintaining industrial peace in the
organization as he is deeply associated with various committees or
discipline, lab our welfare, safety, grievance, etc. He helps in
laying down the grievance procedure to redress the grievances of
the employees.
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labor problems and unrest. According to them, adoption of such practices was a
compulsion for factory owners rather than their paternistic philosophy.
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4. Expanding subordinate influence, self- control and self-
direction can improve operating efficiency
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Scientific Management Approach: Prescribe work simplification and
additional incentives. Behavioral Approach: Recommend job enrichment and
democratic participation of employees in the decision- making process.
Contingency Approach: Offer a solution which is responsive to the
characteristics of the total situation faced. The above solutions may be suitable
to different situations. As regards work simplification, it would be ideal where
there is limited resources, unskilled labor and limited training opportunities
available. Job enrichment would be ideal for that organization where there are
abundant skilled labor force. Thus, this clearly shows that management function
depends upon given situations present in an organization. Managers are
supposed to systematically diagnose a given situation and then find out
solutions to meet the situation. In short, contingency approach of management
and for that matter HRM, emphasizes on two points:
1. It focuses attention on situational factors that influence managerial decision.
2. It highlights the need for developing skills for managers in situational
analysis.
HR MANAGER:
A person who in charge of the department that deals with the
employment, training, support, records, etc. of a company's employees:
The human resource manager is also responsible for writing up job
descriptions
ROLE OF HR MANAGER:
In an organizational setup, getting things done by convincing others
is very important and the success of a manager, to a great extent, depends on
convincing others.
Effective leaders in this era, will be those who are continuous learners, who are
on the cutting edge of excellence, who have strong convictions, and yet, having
humility to recognize the need to reinvent themselves and inspire their
organization to adapt to the new environment.
To be successful in his job, a personnel manager must be a specialist in
organization theory and as such be an effective adviser to top management in
organizational matters as well as being able to organize his own department in
such a manner as to minimize frictions, promote goodwill, and release the latent
energies of his own people.
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He should have real expertise in personnel administration and should have the
ability of convincing matters to the management. Unless the personnel manager
has the active support of the top management, he will be like a ship without a
rudder. On the other hand, if he does not win the confidence of the employees
and their union, he will not be respected by the management. Over the years, the
position of human resource manager has changed significantly. In the early days
of industrialization, he was considered a second-class officer in his
organization. But today human resource manager is treated as a philosopher,
specialized practitioner and a strategic partner.
Organizations differ in structure, management styles, work processes, work
culture and the complexities of the operating business environment. Similarly,
every individual is different, his problems, needs and emotions are different.
The world order is changing dramatically and is in the process of complete
transformation. The impossible things of yesterdays have become possible
today and the impossible things of today will become possible tomorrow. That
is why it is said that change is the only permanent aspect of nature. The above
trends will have a tremendous impact on the tasks of HR professionals who will
have to act as ‘change agents’ or change facilitators. Theroles of the HR
Manager include roles of conscience, of a counselor, amediator, a company
spokesman, a problem solver and a change agent.
(i) The conscience role: The conscience role is that of a humanitarian
who reminds the management of its morals and obligations to its
employees.
(ii) The counselor: Employees who are dissatisfied with the present job,
approach personnel manager for counseling. In addition, employees
facing various problems like marital, health, mental, physical and
career also approach the personnel manager. The PM counsels and
consults the employees and offers suggestions to solve the problems
of the employees.
(iii) The mediator: As a mediator, the personnel manager plays the role of
a peace- maker. He settles the disputes between employees and the
management.
(iv) The spokesman: He is a frequent spokesman for or representative of
the company.
(v) The problem solver: He acts as a problem solver with respect to the
issues that involve HRM and overall long-range organizational
planning.
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(vi) The change agent: He acts as a change agent and introduces changes
in various existing programmes.
The ideal personnel manager is not a “decision-maker” but a
“counselor” not “a collector of responsibilities” but “an advisor” to
help the management make more reliable personnel decisions. If the
personnel man can meet the challenge of “staff role” he would make
the most effective contribution to industry.
5. Performance Appraisal
1. Recruitment and Selection: Finding a suitable candidate for the job from a
large number of applicants is a basic problem for the human resource manager.
They have to make suitable changes from time to time in the selection pro-
cedure and see to it that the candidate is up to the mark fulfilling the job
requirements. If required, the candidate should be provided with training to get
quality results.
2.Emotional and Physical Stability of Employees: Providing with wages and
salaries to employees is not sufficient in today’s world. The human resource
manager should maintain proper emotional balance of employees. They should
try to understand the attitude, requirements and feelings of employees, and
motivate them whenever and wherever required.
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security, healthy working conditions, career development, and participative
working are the factors expected by employees from management.
HR issues can slow down productivity, decrease employee morale, and prevent
your business from expanding. The human resources department is an important
department within any major corporation or business. Your HR department
deals with employee requests and compliance issues on a daily basis, along with
the rest of their tasks.
Sometimes, an HR department can overlook certain procedures or regulations.
When they get overloaded with work, HR issues can arise. Luckily, there are
ways to address common HR problems.
By improving the efficiency of your HR department and streamlining some of
their most common tasks, you can reduce costly human resources related issues.
Let’s take a look at some of the top HR issues at the workplace and how to fix
them. Ensuring Employees Remain Productive
HR managers look for various ways to improve efficiency without decreasing
employee job satisfaction. This can be a challenge for any HR department. HR
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teams often start evaluating productivity by looking at business practices,
procedures, and resources.
If a drop in productivity is the result of excessive absenteeism, it is often the
responsibility of the HR department to ensure attendance issues are addressed.
Enforcing attendance policies can be made easier with the help of time-tracking
software.
Accurate time-tracking software can allow your HR department to catch trends
in absenteeism. They can determine if the problem is confined to one employee,
one department, or the entire workforce.
Employee Training
HR departments are responsible for the implementation of training programs.
Some of these programs are designed to ensure your staff follows policies and
procedures while others are used for job advancement. In some job settings,
employees are required to complete certain certification programs.
It is important to ensure that your staff is fully qualified for their jobs and aware
of all company policies. The enforcement of company compliance often falls
under the responsibility of the HR department.
If you notice that a growing number of your employees fail their certifications
or do not comply with company policies, then perhaps your HR department
simply has too much on their plate. By finding ways to streamline your HR
operations, your human resources team may be better equipped to deal with this
common HR issue.
Simplifying your payroll process and scheduling through the use of HR
software can give your human resources department more time to deal with the
creation and implementation of training programs.
HR Compliance Issues
In addition to employee compliance, your HR team and managers have to deal
with state and federal compliance. Complying with state and federal regulations
in regards to fair pay, discrimination, and available time off is not always easy.
These regulations are constantly changing. New laws get put into place to
protect the rights of employees. It is up to your HR team to ensure compliance.
Using a complete workforce management system, your HR department can
make sure that every law and regulation is followed. These systems apply the
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laws and regulations to your scheduling and payroll. By regularly checking for
updates and new regulations, you can remain up to date and fully in compliance.
Payroll Errors
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UNIT-2
HUMAN RESOURCE PLANNING
Introduction
Human Resource Planning could be seen as a series of activities,
consisting of the following:
1. Forecasting future manpower requirements, either in terms of
mathematical projections of trends in the economy and developments in
the industry, or of judgmental estimates based upon scientific future plans
of the company.
2. Inventorying present manpower resources and analyzing the degree to
which these resources are employed optimally.
3. Anticipating manpower problems by projecting present resources into the
future and comparing them with the forecast of requirements, to
determine the adequacy, both quantitatively and qualitatively.
4. Planning the necessary programmers’ of recruitment, selection, training,
development, deployment, utilization, transfer, promotion, compensation
and motivation so that future manpower requirements will be met.
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Definition
“Manpower Planning” and “Human Resource Planning” are synonyms.
According to Geisler, “Manpower planning is the process including
forecasting, developing implementing, and controlling by which a firm ensures
that it has the right number of people and the right kind of people at the right
places, at the right time doing work for which they are economically most
useful.”
Stainer defines manpower planning as “Strategy for the acquisition,
utilization, improvement and preservation of an enterprise’s human resources”.
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2. Sector-wise: This would cover manpower needs of the agricultural sector,
industrial sector and service sector.
3. Industry-wise: This would cover manpower needs and forecast for
specific industries such as textiles, chemicals, engineering and plantation.
4. Individual unit-based: This would cover manpower needs of a particular
enterprise.
Types of Planning
1. Formal and Informal Planning: Some planning is informal; it takes
place without special planning sessions or a planning division. It produces no
special statements, graphs, charts or other documents. Informal plans may exist
only in the minds of managers, or they may emerge as suggestions, ideas, and
possibilities advanced in oral discussions.
In contrast, formal plans are the product of recognized planning
programmes. They are documentary; they become matters of record.
Individuals and groups are given the task of developing plans; the assignment
identifies the formal recognition given to the planning activity.
2. Replacement Planning: In human resource planning, one of the most
common activities is what may be described as replacement or balance sheet
planning. It is concerned with recruitment, transfer, and promotion. It considers
age, health problems, and other causes, and identifies sources of replacements.
3. Time span: One well-established basis for classifying plans is based on
their time span. It distinguishes short-term from long-term (frequently
described as strategic) planning. Short-term plans are more likely to be
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concerned with specific projects and programmes. Long-term plans necessarily
consider changes in organization structures, technology, and the policies that
will be appropriate as these changes take place.
A further and useful timing distinction among plans describes three types
including:
i. Adaptive Planning; in which future trigger events alternatives are
identified, with options carefully considered and evaluated.
ii. Contingency Planning; in which these potential hazards are identified and
advance strategies are developed.
iii. Real Time Planning; in which managers and planners co-operate in
handling unanticipated events as they occur.
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surplus are temporary, consider the costs of hiring and training compared to the
expense of retaining staff.
OUTSOURCING
If you regularly use employment agencies to cover your staffing needs,
discontinuing this in times of a labour surplus is obvious. In fact, if your
business is subject to fluctuating staffing needs, using outsourced staff during
labour deficits can smooth out your need for permanent employees.
RETRAINING
Some labour surpluses are across the board, affecting all departments. If this is
not the case, however, then redistributing excess staff may be an option.
Retraining employees who are already familiar with the culture of your
enterprise offers present and future flexibility at a fraction of the expense that
new hires cost.
HIRING FREEZE
For large organizations with many departments and an equally large workforce,
implementing a hiring freeze can help prevent aggravating a labour surplus.
With a freeze in place, managers downstream must explore other options to fill
their labour needs without adding to the overall company payroll.
BUYOUTS AND RETIREMENT
Although it may not be a good short-term solution, offering early retirement or
contract buyouts may produce sufficient attrition to reduce your labor surplus.
There are potential financial benefits as well, since employees near retirement
age may be toward the top of the wage scale. Depending on your company’s
accounting methods, buyouts may come out of the operational budget,
improving departmental performance.
PAY CUTS
Though it’s all but certain to have a negative effect on morale, across-the-board
pay cuts may produce savings in wages that permit you to weather a labour
surplus without layoffs. Wage reductions can be temporary or permanent but be
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sure to consider what this action may do to your company’s employment brand
and labour relations.
MODIFIED PLANS
In this age of increased emphasis on work/life balance, you may have
employees who might welcome reduced hours or work-from-home
arrangements. Offering a leave of absence could help smooth out a temporary
surplus. Although reduced hours may have the same net effect as a pay cut,
reducing the hours may be better received by staff, who will see that their wage
rate has been maintained.
SEASONAL HIRING POLICIES
When your business experiences regular and predictable labour surpluses, plan
accordingly during hiring periods, bringing aboard new hires only for the labour
deficit period. You may be able to build a regular seasonal staff, as well as a
pool of potential permanent workers, should the demand arise.
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Narrative descriptions can be requested for both the job incumbent and
the supervisor. This approach is used more often on salaried jobs. A more
detailed reporting of this type would be the daily diary. Under this system, the
employee keeps a daily record of major duties performed, marking the time
when each task is started and finished.
The observation and interview methods of collecting job information hold the
greatest promise of completeness, accuracy, and better utilization of time. If a
particular job is simple and repetitive, observation may be the only technique
required. In most cases, however, interviews coupled with observation
constitute the preferred approach. The interview will provide information not
readily observable plus the verification of information obtained by means of
other techniques.
The following are some of the important guidelines for conducting the
interviews:
1. Introduce yourself so that the worker knows who you are and why you
are there.
2. Show a sincere interest in the worker and the job being analyzed.
3. Do not try to tell the employee how to do the job.
4. Try to talk to the employees and supervisors in their own languages.
5. Do not confuse the work with the worker.
6. Do a complete job study with the objectives of the programme.
7. Verify the job information obtained.
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must be organized in some fashion in order to be usable. A suggested order is
as follows:
1. Job identification
2. Job summary
3. Duties performed
4. Supervision given and received
5. Relation to other jobs
6. Machines, tools and materials
7. Working conditions
8. Definitions of unusual terms
9. Comments that add to and clarify the above
Categories Requirements
1. Unskilled Jobs
Literate, robust in health and
Mazdoors, sweepers, office boys &
preferably local candidates.
helpers
2. Semi-skilled Jobs Preferably ITI trained candidates;
Machinists, Khalasis, painters, where such candidates are not
coolies, machine operators, fitters, available, literate candidates with 3
moulders, wiremen. to 4 years’ experience in the line.
3. Skilled Jobs Matriculates possessing ITI Trade
Crane drivers, fitters, turners, certificate, with a minimum of 5
electricians, welders, moulders years’ experience in the line.
4. Clerical Jobs Preferably graduates with English
and Mathematics and a sound
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general knowledge & smart
disposition.
Matriculates with proficiency in
5. Typists typing; small, well behaved and at
least 2 years’ experience as typist.
Job Specification
A job specification tells what kind of person to recruit and for what
qualities that person should be tested. Job specifications translate the job
description into terms of the human qualifications, which are required for the
successful performance of a job. They are developed with the co-operation of
the personnel department and various supervisors in the whole organization.
These specifications relate to:
a) Physical characteristics, which include health, bodysize, height, weight,
age-range, vision, voice, hand and foot co-ordination.
b) Psychological characteristics, or special aptitudes which include such
qualities as manual dexterity, mechanical aptitude, ingenuity, judgement,
resourcefulness, analytical ability, mental concentration and alertness.
c) Personal characteristics or traits of temperament, such as personal
appearance, good and pleasing manners, emotional stability,
aggressiveness or submissiveness, leadership, co-cooperativeness,
initiative, human relations skill, conversational ability etc.
d) Responsibilities, which include supervision of others, responsibility for
production, process and equipment, responsibility for the safety of other,
responsibility for generating confidence and trust, and responsibility for
preventing monetary loss.
e) Other features of demographic nature, which include age, sex, marital
status, education, experience and language proficiency.
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Specimen of Personnel specifications of Works Manager
1. Physical
Good health, No significant disabilities in voice,
Characteristics
hearing and eyesight.
Essential
Neat conventional dress.
Dress
At least a Bachelor of Science or Engineering;
evidence of occupational success in previous
2. Attainments
employment; production management experience
Essential
minimum of 5 years. Age, not above 35 yrs.
Knowledge of work study, quality control,
inventory control and experience of negotiating
with trade unions at plant level.
Desirable
Master of Business Administration (MBA) with
specialization in production Management.
Fluency in speaking and writing; analytical skills;
ability to prepare and understand basic statistical
3. Special Aptitudes
information; competence in arithmetic; high
Essential
degree of listening skill; evidence of ability to
plan ahead and organize the work of others.
4. Interests Evidence of interest outside work but nothing
Essential specific.
Acceptability to other people and previous
5. Disposition occupational evidence of influencing others;
Essential ability to accept responsibility without undue
strain; co-operative in relations with others.
6. Motivation Ambitious-evidence of fairly rapid promotion and
Essential the achievement of high but realistic goals.
7. Circumstances
Ability to work long-hours if required.
Essential
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UNIT – III
RECRUITMENT AND SELECTION
This chapter deals with the recruitment and selection process of small and
medium scale industries providing the all-important information related
recruitment and selection.
Recruitment and selection constitute a staffing function of management.
Scientific selection ensures right man for the right job. For creating a team of
efficient, capable and loyal employees, proper attention needs to be given to
scientific selection of managers and other employees. The conventional
approach of selecting managers in a casual manner is now treated as outdated
and is being replaced by scientific and rational approach, deciding who should
hire under the employment rule of the organization for the short and long-term
interests of the individual employee and the organization.
Recruitment and selection is the process of getting human resources into
organizations, departments, sections and jobs use. What might be an even more
useful definition of recruitment is that about the art of discovering and
procuring potential applicants for actual and anticipated vacancies in the
organization. This definition has introduced the concept of ‘art’ which is about
the soft skills of management, some of which might be a natural talent of some
managers or acquired through specialized training. The use of the word
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‘discover’ emphasizes effective recruitment, a process that involves exploration
which require specialized methods and techniques, short of which no
‘discovery’ of potential people for the job can be made. Usually, recruitment
and selection depend on the organization’s policy guiding recruitment and
selection. The basic principle in selection is "right man for the right job" and
can be achieved only through scientific recruitment and selection. This is
because the ability of an organization is determined to a great extent by the
ability of its workforce. The old belief that capital was fundamental to the
progress of the organization and does not hold good any longer as employers
around the world have begun to believe that a smart workforce is the key to the
success of an organization.
RECRUITMENT:
Recruitment means an activity which refers to the discovery and
development of workers and employees in the enterprise at the time they are
required. It involves locating, maintaining and contacting the sources of man
power. The recruitment has been defined by many eminent authors as under:
In the words of Flippo, “Recruitment is the process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in the
organization.”
According to Dale Yoder, “Recruitment is a process to discover the
sources of manpower to meet the requirement of the staffing schedule and to
employ effective measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient working force.”
In short recruitment is the process of searching for prospective
employees and stimulating them for jobs in the organization, Thus, the
recruitment of employees involves the identification of the sources of personnel,
evaluation of different sources available, selection of a particular source and
stimulating the prospective candidates to apply for the job so that right
candidates may be obtained for right job.
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OBJECTIVIES OF RECURITMENT:
Recruit right people who will fit in to organizations culture and contribute
to the organizations goals.
Meet the organizations lawful and social commitments with respect to the
sythesis of its workforce.
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SOURCES OF RECRUITMENT:
The eligible and suitable candidates required for a particular job are available
through various sources. These sources can be divided into two categories, as
shown in Figure
1. Promotions:
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3. Former employees: Former employees who had performed well during their
tenure may be called back, and higher wages and incentives can be paid to
them.
4. Training cost is saved as the employees already know about the nature of job
to be performed.
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EXTERNAL SOURCES OF RECRUITMENT:
1. Press advertisement:
A wide choice for selecting the appropriate candidate for the post is available
through this source. It gives publicity to the vacant posts and the details about
the job in the form of job description and job specification are made available to
public in general.
3. Placement agencies:
4. Employment exchange:
People register themselves with government employment exchanges with their
personal details. According to the needs and request of the organization, the
candidates are sent for interviews.
5. Walk in interviews:
These interviews are declared by companies on the specific day and time and
conducted for selection.
6. E-recruitment:
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Various sites such as jobs.com, naukri.com, and monster.com are the available
electronic sites on which candidates upload their resume and seek the jobs.
7. Competitors:
By offering better terms and conditions of service, the human resource
managers try to get the employees working in the competitor’s organization.
2. The best selection is possible as a large number of candidates apply for the
job.
SELECTION
Meaning
Selection is the process adopted by an organization to select adequate
number of persons who are fit for the job.
Importance of Selection
1. Manager is informed about the complexities of selection and weakness
and limitations of various selection techniques. Managers know the
probabilities of error.
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2. The high degree of education and employment opportunities have made
the labour market or buyers’ market.
3. Managers know the techniques used to discover the deficiencies in
candidates.
4. Today’s public policy has imposed many new restrictions with respect to
those who can and should be hired and what kind of selections are
acceptable.
5. If the job specifications are not clearly described, it makes the selection
procedure a difficult one.
2. Initial interview
It is otherwise called Preliminary interview. These questions are relating
to his qualifications, experience, interest, age, nativity and the like. Only a
minimum time is spent for this interview.
3. Application blank
A specific format is followed by an organization for this selection
process. The nature of the format varies for each job. The same form is not
used for all jobs in an organization. The reason is that different qualifications
and skills are required for different jobs. The advantages are as follow:
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a. Acts as an urgent test device
The applicants have to find precise answers for the queries raised in the
form. This test is used to find the quick understanding capacity and problem-
solving capacity of the candidate.
b. Shy Candidate
Some candidates may find it difficult to give answer in the face to face
meeting with the employer.
c. Aid to build trust among applicants
Whenever the applications are issued to applications for filling up, there
is a confidence among the applicants as they are for the job in question.
d. Basis for final interview
The answers given in application form are used as basic things to frame
questions for the final interview.
e. Aid to preparing waiting list
Candidates may be found fit for the job but they cannot be absorbed
immediately. These candidates are placed under waiting listing. The
information provided in the form is used for the preparation of waiting list.
4. Test
The test is conducted by the organization for the purpose of knowing
more about the applicants to select or reject. Normally, many organizations ask
the applicants questions to know more about their aptitude, interest, general
awareness, etc.
Kinds of Tests
a. Temperament tests
b. Achievement tests or Performance test or Trade test
c. Efficiency test or dexterity test
d. Interest test
e. Intelligence test
f. Personality test
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g. Situational test
h. Judgement test
Advantages of Test
a. Tests help the employer to find whether a candidate is fit for the job or
not.
b. Besides, tests help in checking candidates claims in respect of his
qualification, experience etc.
c. Tests avoid the scope for personal preference of a particular candidate.
d. Standards of job performance can be established with the help of this
test.
e. Labor turnover can be reduced.
f. Applicant is also satisfied with the method of selection, even though
he is not selected.
g. Tests reduce the cost of selection and placement.
h. Tests highlight the hidden talents and overlooking of these can be
avoided.
i. Test may be conducted for transfer and promotion.
j. Administrative expenses regarding training may be reduced to some
extent.
k. Failure in performing the job is reduced.
Disadvantages of Test
a. Hundred percent best selection is not possible through test. So, test is
used as a supplementary method of selection.
b. Test is more suitable to an organization to which for limited number
of jobs more number of candidates have applied.
c. If the number of applicants is small, it is desirable to adopt interview
rather than the test.
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d. Test is not able to measure the combination of characteristics required
for various jobs.
e. Some candidates do not reveal their talents through test.
f. Test does not provide any basis for motivation.
5. Checking References
Sometimes, the applicants are requested to furnish references.
References are in a high status in society. Applicants may include the name and
address of parent educational institutions and present employer. The
information furnished in the applications are checked from these persons. If
the referee is a present employer, the applicant’s job performance, salary drawn
particulars, reasons for leaving the job etc. are checked.
SELECTION TEST
Selection tests that help assess a candidate's ability to perform specific tasks are
often called 'work sample' tests. These types of tests aim to replicate actual job
tasks or situations to assess if the candidate has the skills, experience or
qualifications to carry out the work.
1. Intelligence Test
Intelligence test is used to judge the mental ability of the candidates. It measures
the general ability of understanding the things, learning and decision-making.
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2. Aptitude Test
It measures the probability of performing the job in terms of how often and how
well. Moreover, this helps to measure the potential learning capacity of a
candidate. It is the most promising indicator of predicting worker's ability for
potential development. Organizations develop some specific aptitude tests in
order to measure special abilities to perform a job.
3. Personality Test
It is the measurement of personal characteristics of the candidates. It is also
known as personality inventory which measures the personality traits such as
interpersonal competence, self-confidence, ability to lead, emotional
stability motivation, consciousness and so on. Personality test is used to
measure a prospective employee's motivational level and qualities of the
personality as a whole.
4. Interest Test
It is used to discover a candidate's activity preferences. The personal interests
such as like and dislikes are identified by interest test. It identifies the patterns
of interest that an individual hold.
5. Situational Test
It is all about evaluating whether the particular person is situation specific. It
means, under situational test, it is drilled whether the candidate performs the job
in future, in a situation if he/she is selected. It evaluates whether a particular
candidate can perform the job in a given situation.
6. Honesty Test
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Honesty is concerned with the degree of accuracy of information provided by
the candidate. Honesty test measures to what extent the information provided by
the prospective candidates is accurate.
INTERVIEW
Interview is considered as a method of personal appraisal through face to
face conversation and observation. The management selects a candidate
through interview by one or more persons. The interviewing persons are experts
in the interview technique and they have a thorough knowledge in their
respective fields. Interview helps the employer to evaluate the candidate
regarding the personality, smartness, intelligence, attitude etc.
TYPES OF INTERVIEW
a. Direct Interview
Under this type of interview, straight-away questions are put before the
applicant to get answers for them. Face to face conversation is going on during
the interview. The in-depth knowledge of applicant is not observed under this
type of interview.
b. Indirect Interview
Question are not raised directly by the interviewer before interviewee.
The particular applicant is requested to express his views on any topics as he
likes. The interviewer carefully listens to what the applicant expresses. The
interviewer does not interpret the applicants views. The applicant has full
freedom of expression. The personality of the applicant is easily assessed by
the management.
c. Patterned Interview
A number of standard questions are framed well in advance which are to
be put before the applicant. The answers for these questions are found while
framing the questions and answers are written near the questions. These are
used for verification purpose when answers are given by the applicant during
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the interview. This is the procedure adopted under this type of interview to
evaluate the suitability of the applicant.
d. Stress Interview
Irritating questions are put before the applicant by the interviewer. If any
applicant gets angry when these types of questions are put to him, the particular
applicant is evaluated as unfit for the job. For example, the Interviewer may
ask, “How many legs does an eight legged insect have?” or “Dear Mr.
Lakshman, what is your name?” These are some questions which irritate
anybody in normal conditions. If an applicant gets angry over these questions
he/she is rejected as unfit for the job.
e. Systematic in-depth interview
Under this type of interview, the interviewer asks any one of the
questions initially. Then, he proceeds step-by-step to get an integrated view of
the skills and personality of the applicants.
f. Board or Panel interview
A group of persons called interviewers ask the applicant questions in the
area of interest of the applicants. Immediately after the interview, they evaluate
the performance of an applicant based on the answers given by the applicant.
g. Group interview
It may be otherwise called group discussion or house party technique. A
number of applicants are interviewed simultaneously. A common topic is
presented before the group. One group consists of six to eight members. Each
applicant is allotted a number. They may call other members of the group by
calling concerned member’s number. They are restricted to use their names.
The applicants are selected or rejected on the basis of performance in group
discussion.
PROCESS OF INTERVIEW
a. Review of background information
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The interviewer has to collect the information regarding the applicant’s
bio data and the job for which he has applied. This process is known as review
of background information.
b. Preparation of questions
The interviewer has to prepare the questions in the area in which the
applicant is interested. The question is presented by the interviewer in an
understandable way. The answers are received from the applicant one by one.
c. Putting the applicant at ease
There is a mental and emotional strain to the applicants. These may be
removed by the interviewer. Outsiders except interviewers and the applicants
are not allowed to be present in the interview room. All the necessary facilities
and comforts are arranged by the management in order to put the applicant at
ease. Some manaerism like causing interruptions through raising number of
sub-questions unnecessarily or raising eyebrows or pouting lips frequently are
avoided by the interviewer.
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In the case of big organizations, a separate department known as
personnel department is incharge of selection. The personnel department
manager selects the applicant and approves it. The appointment order will be
sent to the applicant without delay. Normally the applicants are selected
provisionally.
8. Medical Examination
Medical certificate is received from the doctor after medical examination
is over. This certificate is attached to the joining report of the new employee.
Some applicants may be educationally qualified for the job but physically unfit
for the job.
9. Placement
The applicants are placed on probation basis only after completing all the
formalities. The probation period may vary from one job to another job
according to the nature of the job. The maximum probation period for any job
is two years. It may be extended to three years in extraordinary circumstances.
The new employees are observed keenly over the probation period. These new
employees are regularized on the completion of probation period successfully.
10. Orientation
Orientation refers to providing the information regarding the organization
briefly to new employees. The term information includes co-workers of new
employees, superior, sub-ordinates, location of work place, duties, authorities,
responsibilities, canteen, lavatory, entrance, exit gate and the like.
IMPORTANCE OF INTERVIEW:
1. Interview helps in selecting the candidate most suitable for the job.
2. It provides the candidate information about the organisation and the job
for which he applied.
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4. It is a method of direct contact between the employer and the candidate.
Employer can observe physical characteristics of the candidates. It helps
managers to check authenticity of details in the application form.
UNIT -4
1. Principle of Clear Objectives: The objectives and the reason behind the
training programme should be clear. A comparison of operational
requirements and existing personnel skills will help to determine the specific
training needs of employees, so far that a set of performance standard should
be created.
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Benefits of Training to Employers
The major benefits of training are discussed below;
(i) Quick learning: The qualified instructors will help the new employees to
acquire the skills and knowledge to do particular jobs within a short
interval of time.
(ii) Higher Productivity: Training is also of great help to the existing
employees. It helps them to increase their level of performance on their
present job assignments.
(iii) Standardization of procedures: Standardization will make high levels of
performance rule rather than exception. Employees will work
intelligently and make fewer mistakes when they possess the required
know-how and have an understanding of their jobs and of the
interdependence of one job on another.
(iv) Less Supervision: Training does not eliminate the need for supervision,
but it reduces the need for detailed and constant supervision.
(v) Economical Operations: Trained personnel will be able to make better
and economical use of materials and equipment – Wastage will also be
low.
(vi) Higher morale: The morale of employees is increased if they are given
proper training.
(vii) Preparation of future managers: When totally new skills are required by
an organization, it has to face great difficulties in the selection process.
(viii) Better management: Maintaining higher standards of quality, building a
satisfactory organization structure, delegating authority and stimulating
employees are all assisted by effective training.
Benefits of Training to Employees
Training helps the employees or workers in the following ways:
(i) Confidence: Training creates a feeling of confidence in the minds of
workers. It gives safety and security to them at the workplace.
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(ii) New Skills: Training develops skills which serves as a valuable
personal asset of a worker. It remains permanently with the worker
himself.
(iii) Promotion: Training provides opportunity for quick promotion and
self-development.
(iv) Higher Earnings: Training provides more remuneration and other
monetary benefits to the workers.
(v) Adaptability: Training develops adaptability among workers. They
don’t worry when work procedures and methods are changed.
(vi) Increased Safety: Trained workers handle the machines safely. They
also know the use of various safety devices in the factory. Thus, they
are less prone to accidents.
Types of Training
The important types of training programmers are discussed below:
1. Induction Training
It is a very short informative training given immediately after
recruitment. It creates a feeling of involvement in the minds of newly appointed
employees.
2. Job Training
Job training relates to specific job which the worker has to handle. It
gives information about machines, process of production, instructions to be
followed, methods to be used and so on. It develops skills and confidence
among the workers and enables them to perform the job efficiently.
3. Apprenticeship Training
Apprenticeship training programme tends more towards education than
merely on the vocational training. Under this, both knowledge and skills in
doing a job or a series of related jobs are involved. The trainees receive wages
while learning and they acquire valuable skills which command an high wage in
the labour market.
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4. Refresher Training
Refresher Training is essential because of the following factors:
a) The workers require training to bring them upto date with the
knowledge and skills and to relearn what they have forgotten.
b) Rapid technological changes make even the qualified workers
obsolete in course of time because new technology is associated with new
work methods and job requirements.
c) Refresher training becomes necessary because many new jobs
which are created due to changes in the demand for goods and services
are to be handled by the existing employees.
5. Training for Promotion
The talented employees may be given proper training to make them
eligible for promotion to higher jobs in the organization. It is known as
‘training for promotion’.
Methods of Training
The important methods of imparting training to the operative employees
are as follows:
1. On the job training
2. Vestibule training
3. Special courses or Class-room training.
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b) Under-Study: Under this method, a superior gives training to a
subordinate as his under-study. The purpose of under-study is to
prepare someone to fill the vacancy caused by death, retirement,
promotion or transfer of the superior.
c) Position Rotation: The trainee is periodically rotated from job to job
instead of sticking to one job so that he acquires a general background
of different jobs.
Advantages:
1. It is not located in an artificial situation, either physically or
psychologically.
2. It permits the trainee to learn at the actual equipment and in the
environment of the job.
3. On the job training methods are relatively cheaper and less time
consuming.
2. Vestibule Training
The term ‘Vestibule Training’ is used to designate training in a class-
room for semi-skilled jobs. It is more suitable where a large number of
employees must be trained at the same time for the same kind of work. Where
this method is used, there should be well qualified instructors in charge of
training programme.
A vestibule school is run as a special endeavour of the personnel
department. An attempt is made to duplicate, as nearly as possible, the actual
material, equipment and conditions found in the real workplace.
Vestibule training is particularly suitable where it is not advisable to put
the burden of training on line supervisors and where a special coaching is
required.
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Demerits:
The artificial training atmosphere may create the adjustment problem for
the training atmosphere may create the adjustment problem for the trainee;
when they return to the place of job. Vestibule training is relatively expensive
because there is duplication of materials, equipment and conditions found in a
real workplace.
3. Classroom Training:
Class-room instruction is most useful where concepts, attitudes, theories
and problem-solving abilities must be learnt. It is more associated with
knowledge rather than skill. The lecturer possesses a considerable depth of
knowledge of the subject at hand. The lecture method can be used for providing
instructions to large groups. Thus, the cost per trainee is low.
Limitations:
It violates the principle of learning by doing and constitutes one-way
communication.
This will provide feedback from the students.
UNIT-5
PERFORMANCE APPRAISAL
MEANING
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directions with others. The time and venue of appraising should be known to
both employer and employee.
DEFINITION
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1. Setting the performance standards: The first step in the process of
performance appraisal is setting up of the standards which will be used as a
benchmark to compare actual performance of the employees. This step
requires setting the performance criteria to judge performance of the
employees as successful or unsuccessful of the degrees. To be useful
standards should relate to the desired result of each job. The standards set
should be clear, easily understandable and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken
to describe the standards.
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■ The supervisors desire an ‘objective rating’ system to justify salary
increases to ultimately motivate their subordinates.
This method has certain drawbacks and limitations. The executives doubt
that the supervisors may tend to rate most of their subordinates high and
to award all of them fairly with identical raises, thus failing to clearly
distinguish between the high and mediocre performers. Also, at times,
given feedback is biased.
> In individual ranking, the supervisor lists the employees from the
highest to the lowest levels. The difference between two top employees’
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performance is assumed equivalent to the difference between the two
bottom employees’ performance.
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B. Behaviourally Anchored Rating Scales (BARS) BARS is
combination of elements of the critical incident and graphic rating scale
approaches. The supervisor rates the employee according to the items on
a numerical scale. BARS is similar to a graphic rating scale, but has
behaviour anchors and implemented in the following order:
1 2 3 4 5
NEVER SELDOM SOMETIMES GENERALL ALWAYS
Y
initiative = good
done = average
directions = poor
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Management by Objectives Method The concept of ‘Management by
Objectives’ (MBO) was first initiated by Peter Drucker in 1961. The method
can be defined as a process whereby the employees and superiors come together
to identify the common goals which the former is expected to achieve for
considering as a criterion for measurement of performance and deciding the
course of action to be followed. The essence of MBO is participative goal
setting, choosing the course of action and decision making. Important part of
MBO is measurement and comparison of employee’s actual performance with
the standards set. Ideally, when the employees themselves get involved with
setting the goals and choosing the course of action to be followed by them, they
are more likely to fulfill their responsibilities.
Generally, MBO evaluates how well the employee accomplished the objectives
determined to be critical in job performance. Such a method aligns objectives
with the quantitative performance measures such as sales, profits and zerodefect
units produced.
Peer- Comparison Ratines Method This method is typically used to rate the
peers in the company. Here, the superiors play a partial role in the rating. In
this, the entire team is considered while rating, and then the average of all is
taken into consideration.
If a person finds a way to increase his/ her effectiveness, it does not follow
that the other person’s effectiveness will decrease by that magnitude. If
anything, reverse is likely to be true. The second person may learn from
the former and becomes more efficient himself. In this sense, there can be
chances in which everyone wins. However, each of the above two
alternatives has its own merits and demerits, though in the traditional
method no employee possesses knowledge of his/ her fellow workers’
exact standings.
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This method has certain drawbacks such as whether a single number -
percentile or decile reflects important realities: ‘X’ is invaluable who sees
projects right from start to finish giving all details and also accomplishing
minor work or touch ups, but he/ she lacks an initial design or ‘Y’ with
his/ her excellent self motivation has great potential but lacks balanced
judgment or ‘Z’ makes vital contribution when the organisation needs
him/ her badly but lacks technical knowledge important for execution of
the project.
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and customer relationship w ere not critical for success. Moreover, the
financial m easures are inadequate for guiding and evaluating the journey
that the present information age companies must make to create future
value through investment in the customers, suppliers, employees,
processes, technologies and innovations.
Respect for employees — This includes the belief that individuals are
responsible for their own actions and ideas. It includes an awareness of a
person's individuality by recognizing their unique values, attributes, and
skills. As you attempt to develop people with counselling, you must
refrain from projecting your own values onto them.
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