UNIT III

HUMAN RESOURCE
MANAGEMENT
 IT411 IIM
UNIT III
HUMAN RESOURCE MANAGEMENT

Human Resource Management: Functions of Human Resource Management-

Job Analysis-Human Resource Planning-Brief treatment of Recruitment-
Selection-Placement- Induction & Orientation-Training and Development-
Performance Appraisal.
 III UNIT
HUMAN RESOURCE MANAGEMENT
• Human resource management (HRM or HR) is the
strategic approach to the effective and efficient
management of people in a company or organization
such that they help their business gain a competitive
advantage.
• It is designed to maximize employee performance in
service of an employer's strategic objectives.
• Human Resource Management, or HRM, is the
practice of managing people to achieve better
performance.
• For example, if you hire people into a business, you
are looking for people who fit the company culture as
they will be happier, stay longer, and be more
productive than people who won’t fit into the
company culture.
• This is what Human Resource Management boils
down to optimizing company performance through
better management of human resources.
 DEFINITION OF HRM
• The first definition of HRM is that it is the process of managing people in
organizations in a structured and thorough manner.

This covers the fields of staffing (hiring people), retention of people, pay and
perks setting and management, performance management, change
management, and taking care of exits from the company to round off the
activities. This is the traditional definition of HRM which leads some experts
to define it as a modern version of the Personnel Management function that
was used earlier.
• The second definition of HRM encompasses the management of people in
organizations from a macro perspective
i.e.managing people in the form of a collective relationship between
management and employees. This approach focuses on the objectives and
outcomes of the HRM function. What this means is that the HR function in
contemporary organizations is concerned with the notions of people
enabling, people development, and a focus on making the “employment
relationship” fulfilling for both the management and employees
OBJECTIVES
OF
HRM
 OBJECTIVES OF HRM
 The specific objectives of HRM may vary from one organization to another,
but they generally include the following:

1. Recruitment and Selection 2. Training and Development

3. Performance Management 4. Employee Engagement
and Motivation
5. Compensation and Benefits 6. Employee Relations
7. Compliance with Labor Laws 8. Diversity and Inclusion
9. Talent Management 10.Succession Planning
11. Organizational Development 12. Health and Safety
13. Employee Communication 14. Knowledge
Management
15. HR Metrics and Analytics 16. Cost Management
• These objectives are not exhaustive, and
organizations may prioritize them differently
based on their size, industry, culture, and strategic
goals.
• Effective HRM plays a vital role in supporting an
organization's success by managing its most
valuable asset – its people.
 OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

1. Recruitment and Selection: HRM aims to attract, identify, and hire the
most qualified and suitable candidates for various job positions within
the organization.

2. Training and Development: HRM seeks to enhance the skills,

knowledge, and capabilities of employees through training programs and
development opportunities to improve their performance and career
prospects.

3. Performance Management: HRM is responsible for implementing

performance appraisal systems, providing feedback, and setting
performance goals to maximize employee productivity and contributions.
4. Employee Engagement and Motivation: HRM works to
create a positive work environment that fosters employee
satisfaction, engagement, and motivation, leading to increased
job satisfaction and increased turnover.

5. Compensation and Benefits: HRM designs and manages

compensation and benefits packages to attract, retain, and
reward employees, ensuring they are competitive and fair.

6. Employee Relations: HRM plays a crucial role in managing

employee relationships, resolving conflicts, and maintaining a
harmonious workplace to minimize disruptions and promote
cooperation.
7. Compliance with Labor Laws: HRM ensures that the
organization adheres to relevant labor laws, regulations, and
industry standards, reducing legal risks and liabilities.

8. Diversity and Inclusion: HRM focuses on creating a diverse

and inclusive workplace by promoting equal opportunities and
addressing discrimination and bias issues.

9. Talent Management: HRM identifies high-potential

employees and develops strategies to retain and promote them
within the organization, ensuring a pipeline of future leaders.
10. Succession Planning: HRM is responsible for identifying
and preparing employees for key leadership positions,
reducing the organization's vulnerability(weakness) to talent
gaps.

11. Organizational Development: HRM contributes to the

organization's growth and adaptability by aligning the
workforce with the company's strategic objectives and
facilitating change management.

12. Health and Safety: HRM is tasked with ensuring the well-
being of employees by implementing health and safety policies
and practices, reducing workplace injuries and illnesses.
13. Employee Communication: HRM fosters effective communication
within the organization, ensuring that employees are well-informed,
engaged, and aligned with the company's goals.

14. Knowledge Management: HRM helps capture, organize, and share

critical knowledge and expertise within the organization to improve
decision-making and innovation.

15. HR Metrics and Analytics: HRM uses data and metrics to assess the
effectiveness of HR processes, identify areas for improvement, and
make data-driven decisions.

16. Cost Management: HRM aims to manage human resource costs

efficiently while maintaining the quality and productivity of the workforce
 FUNCTIONS
OF
MANAGEMENT
In general, Human Resource Management is
concerned with hiring, motivating, and
maintaining the workforce within businesses.

Functions of Human Resource Management Include:

A. Managerial Functions
B. Operative Functions
 MANAGEMENT
Human Resource Management functions can be classified in following two categories.
A. Human Resource Managerial Functions
Includes:
1.Planning:
One of the primary functions is where the number
and type of employees needed to accomplish
organizational goals are determined.

Research forms core HRM planning which also helps

management to collect, analyze, and identify current
and future needs within the organization.
2. Organizing: (The task is allocated to every member)

Organization of the task is another

important step. The task is allocated to
every member as per their skills and
activities are integrated towards a
common goal.
3. Directing: (contribute maximum towards organizational goals. )

This includes activating employees at

different levels and making them
contribute maximum towards
organizational goals.
Tapping the maximum potentialities of
an employee via constant motivation
and command is a prime focus.
4. Controlling:
Post planning, organizing, and directing, the
performance of an employee is checked,
verified, and compared with goals.
If actual performance is found to deviate
from the plan, control measures are taken.
OPERATIVE FUNCTIONS:
B. Operative Functions:

• The operative functions are those tasks or duties

that are specifically entrusted to the human
resource or personnel department.
• These are concerned with employment,
development, compensation, integration, and
maintenance of personnel of the organization.
OPERATIVE
FUNCTIONS:
1. Employment
2. Recruitment/Hiring
3. Job Analysis & Design
4. Performance Appraisal
5. Training & Development
6. Salary Administration
7. Employee Welfare
8. Maintenance
9. Labor Relations
10. Motivation
11. Personnel Records
12. Separation
The operative functions of the human resource or personnel
department are discussed below:

1. Employment:
• The first operative function of the human
resource of the personnel department is the
employment of the proper kind and number of
persons necessary to achieve the objectives of the
organization.
• This involves recruitment, selection, placement,
etc. of the personnel.
• Before these processes are performed, it is better to
determine the manpower requirements both in terms of the
number and quality of the personnel.
• Recruitment and selection cover the sources of supply of
labor and the devices designed to select the right type of
people for various jobs.
• Induction and placement of personnel for their better
performance also come under the employment or
procurement function.
2. Recruitment/Hiring:
• Hiring is a process that brings a pool of
prospective candidates who can help an
organization achieve its goals and allows
management to select the right candidates
from the given pool.
3. Job Analysis & Design:
• Describing the nature of the job like
qualification, skill, and work experience
required for a specific job position is another
important operative task.
• Whereas job design includes outlining tasks,
duties, and responsibilities into a single work
unit to achieve certain goals.
• 4. Performance Appraisal:
• Checking and analyzing employee
performance is another important function
that human resource management has to
perform.
• 5. Training & Development

• This function allows employees to acquire new

skills and knowledge to perform their jobs
effectively.
• Training and development also prepare
employees for higher-level responsibilities.
• 6. Salary Administration:

• The Human Resource Department also

determines pay for different job types and
includes compensations, incentives, bonuses,
benefits, etc. related to a job function.
7. Employee Welfare:
• This function takes care of numerous
services, benefits, and facilities provided to
an employee for their well-being.
8. Maintenance:
• Minimizing employee turnover and sustaining
best-performing employees within the
organization is the key.

• Minimizing HR ROI (Human Resources Return on Investment)

within the HR department is also a key goal for the
Human resource management team.
9. Labor Relations:
• Labor relations are regards to the workforce
who work within a trade union.
• Employees in such domain form a union/group
to voice their decisions effectively to the higher
management.
10. 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 organizational 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.
11. Personnel Records:
• The human resource or personnel department maintains
the records of the employees working in the enterprise.
• It keeps full records of their training, achievements,
transfers, promotions, etc.

• It also preserves many other records relating to the

behavior of personnel like absenteeism and labor turnover
and the personnel programs and policies of the
organization.
12. Separation:(return of that person to society. release of retirement benefits )
• Since the first function of human resource management is
to procure the employees, it is logical that the last should
be the separation and return of that person to society.
• Most people do not die on the job. The organization is
responsible for meeting certain requirements of due
process in separation, as well as assuring that the returned
person is in as good shape as possible.

• The personnel manager has to ensure the release of

retirement benefits to the retiring personnel on time.
JOB ANALYSIS
 JOB ANALYSIS

It is a systematic analysis of each job for the purpose

of collecting information as to
what the job holder does,
under what circumstances it is performed, and
what qualifications are required for doing the job.
• Edwin Flippo:

• “Job analysis is the process of studying and

collecting information relating to the
operations and responsibility of specific goals”.
• The job analysis may include these activities:
 Reviewing the job responsibilities of current employees,
 Doing Internet research and viewing sample job descriptions online
or offline highlighting similar jobs,
 Analyzing the work duties, tasks, and responsibilities that need to
be accomplished by filling the position,
 Researching and sharing with companies that have similar
jobs, and
 Articulation (Delivery) of the most important outcomes or
contributions needed from the position.
Extra Material

Harry Wylie: “Job analysis deals with the anatomy of the job … This is
the complete study of the job embodying every known and
determinable factor, including the duties and responsibilities involved
in its performance; the conditions under which performance is carried
on; the nature of the task; the qualifications required in the worker;
and the conditions of employment, such as pay hours, opportunities
and privileges”.
 Job Analysis:
There are 5 important concepts that are
Job Analysis: There are 5 important concepts that are

 Job (A job may include many positions. A position is a particular set of duties and
responsibilities regularly assigned to an individual.)

 Job Description (Job description clearly identifies and spells out the responsibilities of a
specific job).

 Job Specifications

 Position Specification and

 Job Design
1. Job
• In simple language, a job may be understood as a division of total work
into packages/positions.
• (Ex:- Conducting of End semester exams)

• According to Dale Yoder, “A job is a collection or aggregation of

tasks, duties, and responsibilities as a whole, is regarded as a regular
assignment to individual employees and which is different from other
assignments”.
• Thus, a job may be explained as a group of positions involving some duties,
responsibilities, knowledge, and skills.

• A job may include many positions. A position is a particular set of duties and
responsibilities regularly assigned to an individual.
2. Job Description:

Job descriptions are written statements that describe the:

 Duties,
 Responsibilities,
 Most important contributions and outcomes needed from a
position,
 Required qualification of candidates, and
 Reporting relationships and co-workers of a particular job.
 •2. Job Description: Conti-------

•Job descriptions are based on objective information

obtained through job analysis, an understanding of the
competencies and skills required to accomplish needed tasks,
and the needs of the organization to produce work.
 •2. Job Description: Conti-------

•Job description clearly identifies and spells out the

responsibilities of a specific job.
•Job descriptions also include information about working
conditions, tools, equipment used, knowledge and skills
needed, and relationships with other positions.
•
• 2. Job Description: Conti-------

• The best job descriptions are living, breathing

documents that are updated as responsibilities
change.
• The best job descriptions do not limit
employees, but rather, cause them to stretch
their experience, grow their skills, and develop
their ability to contribute to their organization.
 The details are given in the Job
Description
• Job title
• Organizational location of the job
• Supervision is given and received
• Materials, tools, machinery, and equipment worked with
• Designation of the immediate superiors and subordinates
• Salary levels: Pay, DA, other allowances, bonus, incentive wage, method of payment,
hours of Work, shifts, breaks, etc.
• Complete list of duties to be performed separated according to daily, weekly, monthly,
and casual, estimated time to be spent on each duty
• Definition of unusual terms
• Conditions of work: Location, time, speed of work, accuracy, health hazards, accident
hazards
• Training and development facilities
3. Position Description:
The Human Resource Director guides and manages the overall provision of Human Resources
services, policies, and programs for the entire company.
The major areas directed are:
 Recruiting and staffing;
 Organizational and space planning;
 Performance management and improvement systems;
 Organization development;
 Employment and compliance with regulatory concerns;
 Employee orientation, development, and training;
 Policy development and documentation;
 Employee relations;
 Company-wide committee facilitation(assistance);
Company employee and community
communication;
Compensation and benefits administration;
Employee safety, welfare, wellness, and health;
(m)Charitable giving; and
Employee services and counseling guides
• The Human Resources Director originates and leads Human
Resources practices and objectives that will provide an employee-
oriented, high-performance culture that emphasizes empowerment,
quality, productivity and standards, goal attainment, and the
recruitment and ongoing development of a superior workforce.

• The Human Resource Director coordinates the implementation of

services, policies, and programs through Human Resources staff;
reports to the CEO and serves on the executive management team;
and assists and advises company managers about Human Resources
issues.
4. Job design:
• Job design is the process of organizing work as a group of tasks,
arranging and defining the job process and structure at the
workplace depending on the job analysis performed.

• The job design takes into account the organizational objectives to

be achieved along with trying to minimize on–the–job fatigue,
stress, and human error.

• The factors that affect the process of job design are the task
characteristics, workflow, ergonomics, work practices, employee
abilities, and availabilities, social and cultural expectations, and
feedback.
Two important goals of job design are:

1. To meet the organizational requirements such as

higher productivity, operational efficiency,
quality of product/service, etc., and

2. To satisfy the needs of the individual employees

like interests, challenges, achievements or
accomplishments, etc.
5. Job Specification:
Job specification is based on a job description. It is a written statement of
qualifications, traits, and physical and mental characteristics that an individual
must possess to perform the job duties and discharge responsibilities effectively.

• Edwin Flippo:
“Job Specification is a statement of minimum
acceptable human qualities necessary to perform a
job properly”.
Job Specification covers
•Educational and professional qualifications
• Skills
• Practical experience
• Physical fitness
• Special qualities required for performing the job
• Intelligence, judgment, and initiative required for
performing the job
Process of
JOB
Analysis
•Job Description: -
• It implies the enumeration and description of
each operation in a job & responsibilities
involved in performing are also outlined.

• It includes basic job related data that is useful

to advertise a specific job & attract a pool of
talent.
• Job Description Conti----

•Aims: -
• 1. To collect job related data.
• 2. To determine what needs to be delivered in a
particular job.
• 3. To give a clear view that what kind of candidate is
required.
• 4. It clarifies who will report to whom.
• Job Description Conti----

•Advantages: -
• 1. Helps supervisors in assigning work to the
subordinates.
• 2. It assists in manpower planning.
• 3. It helps to decide rate or remuneration.
• 4. It helps to decide about training &
development programmes.
• Job Description Conti----

• Types: -
• 1. General purpose.
• a. Job title.
• b. Job location.
• c. Job summary.
• d. Job duties.
• 2. Specific purpose
• a. Detailed duties & responsibilities.
• b. Sub tasks.
• c. How to perform the job.
• d. Essential functions.
 Job
Specification
•Job Specification: -
• It specifies information about the skills or qualities required for doing
the job. It also known as employee specification. It helps in hiring an
appropriate person, for an appropriate job.

• Contents: -
• 1. Job title and designation.
• 2. Educational qualifications for that title.
• 3. Physical and other related attributes.
• 4. Physique and mental health.
• Advantages: -

• 1. Preliminary screening in the selection procedure.

• 2. Helps in giving justification to each job.
• 3. Helps in designing training and development programmes.
• 4. Helps supervisors for counselling & monitoring performance of
employees.
• 5. Helps in job evaluation.
 Process
Of
Job Analysis
• Extra Material on JOB Analysis
 JOB EVALUATION
• A job evaluation is a systematic way of determining
the value/worth of a job in relation to other jobs in an
organization. It tries to make a systematic comparison
between jobs to assess their relative worth for the purpose
of establishing a rational pay structure.
METHODS OF JOB EVALUATION
There are three basic methods of job evaluation:
(1) ranking,
(2) classification,
(3) factor comparison.
Difference between Job Description, Job Specification and Job
Analysis
• The first step that we take while writing a Job Description is
Job Analysis.

• It’s a process of doing an In-Depth analysis of a job and gathering

information about the general tasks, or functions, duties,
responsibilities, and the outcome of a particular job.

• It’s a process where we actually develop the content for the job
which further share with the employee to make him aware of his
duties & responsibilities.
Human Resource
Planning
(HRP)
• HR Planning: -

• HR Planning is the planning for human resources.

• It is also called as Manpower Planning

• or Personnel Planning

• or Employment Planning.

• It is the strategy for the acquisition, utilisation, improvement & preservation of

organisations human resources.

• It is the process of determining manpower needs & formulating

plans to meet these needs.
• Definition: -

• “HR Planning is the process of determining & assuming that the

organisation will have an adequate number of qualified persons,
available at the proper times, performing jobs which meet the
needs of the enterprise & which provide satisfaction for the
individuals involved” – Brech.
• Characteristics: - HR Planning Conti--------

• 1. Future oriented.
• 2. Continuous process.
• 3. Integral part of corporate planning.
• 4. Optimum utilization of organisations current & future
human resources.
• 5. Quantitative & qualitative aspects.
• 6. Long term & short term.
• 7. Primary responsibility of management.
• 8. Two – phased process.
• Objectives: - HR Planning Conti--------

• 1. Optimum utilization of human resources.

• 2. Reduce imbalance in the distribution & allocation of
manpower.
• 3. To ensure that organisation is well equipped.
• 4. To provide control measures to ensure availability of
necessary resources when required.
• 5. To control cost of human resources employed.
 surplus

• Importance: - HR Planning Conti--------

• 1. To carry work & to achieve objectives.

• 2. To identify gaps in existing man power.
• 3. To replace employees who retire, die etc.
• 4. To avoid shortage & surplus(extra) of manpower.
• 5. To improve human resource contribution.
 HR Planning Conti--------

• Process: -
• 1. Analysing organisational plans.
• 2. Forecasting demand for HR.
• 3. Forecasting supply of HR.
• 4. Estimating manpower gaps.
• 5. Action plan for recruitment, development etc.
• 6. Modify the organisational plan.
 HR Planning Conti--------

• Problems: -

• 1. Resistance by employees & employers.

• 2. Uncertainty.
• 3. Insufficient information system.
• 4. Time & expense.
• 5. Lack of top management support.
 HR Planning Conti--------

• Guidelines: -

• 1. Appropriate time schedule.

• 2. Adequate organisation.
• 3. Adequate information system.
• 4. Participation of all.
• 5. Top management support.
 HR Planning Conti--------
• Factors Effecting: -
• I. Internal Factors: -

• 1. Company policies & strategies.

• 2. HR policies & job analysis.
• 3. Company production & operations policies.
• 4. Trade Unions.
 HR Planning Conti--------

• II. External Factors: -

• 1. Government policies.
• 2. Level of economic development.
• 3. Business environment.
• 4. Level of technology.
Six steps in human resource planning are presented in Figure
• 1. Analyzing Organizational Objectives:

• The objective to be achieved in the future in

various fields such as production, marketing,
finance, expansion, and sales gives the idea
about the work to be done in the organization.
• 2. Inventory(Register) of Present Human Resources:

• From the updated human resource information storage sys­tem, the current
number of employees, their capacity, performance, and potential can be
analyzed.

• To fill the various job requirements,

• the internal sources (i.e., employees from within the organization) and

• external sources (i.e., candidates from various placement agencies) can be

estimated.
3. Forecasting Demand and Supply of Human Resource:
• The human resources required at different positions according
to their job profile are to be estimated.
• The available internal and external sources to fulfill those
requirements are also measured.
• There should be proper matching of job description and job
specification of one particular work,
• and the pro­file of the person should be suitable to it.
4. Estimating Manpower Gaps:

• Comparison of human resource demand and human resource

supply will provide with the surplus or deficit of human resources.

• Deficit represents the number of people to be employed,

whereas surplus represents termination.

• Extensive use of proper training and development programs can

be done to upgrade the skills of employees.
5. Formulating the Human Resource Action Plan:
• The human resource plan depends on whether there is a deficit or
surplus in the organization.
• Accord­ingly, the plan may be finalized either for new recruitment,
training, interdepartmental transfer in case of deficit or
termination, or voluntary retirement schemes and redeployment in
case of surplus.
6. Monitoring, Control and Feedback:
• It mainly involves the implementation of the human resource
action plan.
• Human resources are allocated according to the requirements,
and inventories (registers) are updated over a period.
• The plan is monitored strictly to identify the deficiencies
and remove it.
• A comparison between the human resource plan and its actual
implementation is done to ensure the appropriate action
and the availability of the required number of employees
for various jobs.
 Extra Material
Human Resource Planning (HRP)
Definition: Human Resource Planning (HRP)
• Human Resource Planning (HRP) is the continuous process of planning the
human resources of an organization to meet the demand in terms of numbers
and quality. The process involves the critical task of balancing the supply and
demand of human resources to optimally utilize the resources.
• The activities of recruitment, generating a pool of candidates for the future,
forecasting the demand, etc. are critical to this process.

• Human resource planning is a process through which the right candidate for
the right job is ensured.

• For conducting any process, the foremost essential task is to develop the
organizational objective to be achieved through conducting the said process.
RECRUITMENT
Recruitment: -

It is the process of identifying the sources of

potential employees & encouraging them to
apply for jobs in the organisation.
Definition – Edwin.B.Flippo.

“Recruitment is the process of searching for

perspective employees & stimulating them to
apply for jobs in the organisation.
Features: - RECRUITMENT Conti ------

1. Series of activities.
2. Linking activity.
3. Locating & attracting people.
4. All organisations engaged.
5. Two – way process.( It is important for both the job applicant and the organisation to
ensure that the right job goes to the right person.)

6. Complex process.
7. Important function.
Objectives: - RECRUITMENT Conti ------

1. To attract all.
2. Fresh blood at all levels.
3. Developing organisational culture.
4. Search people.
5. Search talent globally.
6. To find people for positions that does not exist yet.
Process: - RECRUITMENT Conti ------

1. Determine the vacancies to be filled.

2. Identification of sources
3. Attracting & motivating employees.
4. Encouraging identified candidates to
apply for jobs in the organisation.
5. Ensure sufficient applications received.
Sources: RECRUITMENT Conti ------

I. Internal Sources: -

II. External Sources: -

Sources: - RECRUITMENT Conti
------

I. Internal Sources: -
Internal sources of recruitment include personnel already working in the
organisation.
Many organisations fill job vacancies through promotions & transfer of
existing staff.
Advantages of Internal Sources : - RECRUITMENT Conti ------

1. Simple process.
2. Familiar with work.
3. High motivation.
4. Morale increases.
5. Loyalty increases.
6. Career development.
7. Organisational stability.
8. Trade unions satisfied.
Disadvantages: - RECRUITMENT Conti -----

1. Staff may not be qualified for new job.

2. Looses most suitable candidates.
3. All vacancies cannot be filled.
4. Conflicts arise.
5. Not available to a newly established enterprise.
II. External Sources: - RECRUITMENT Conti

------

External sources of recruitment refer to prospective candidates

outside the enterprise.
Forms: -
1. Advertising.
2. Personnel consultation.
3. Employment exchanges.
4. Educational & training institutes.
5. Employee recommendations.
 RECRUITMENT Conti ------
Advantages: -
1. Wide choice.
2. Fresh outlook.
3. Varied experience.
4. Availability.
Disadvantages: -
1. Demoralisation.
2. Expensive.
3. Sense of insecurity.
4. Problem from trade unions.
Recruitment Practices in India: - RECRUITMENT Conti ------

1. Internal sources.
2. Public employment exchanges.
3. Campus recruitment.
4. Consultants & labour contractors.
5. Employee recommendations.
6. Family & friends recommendations.
 Elaborate
explanation
on
Recruitment
Elaborate explanation Material
RECRUITMENT
• Recruitment is a positive process of searching for prospective employees and
stimulating them to apply for jobs in the organization. When more persons
apply for jobs then there will be a scope for recruiting better persons.
• According to Edwin B. Flippo, “It is a process of searching for prospective
employees and stimulating and encouraging them to apply for jobs in an
organization.” He further elaborates it, terming it both negative and positive.
• He says, “It is often termed positive in that it stimulates people to apply for jobs,
to increase the hiring ratio, i.e. the number of applicants for a job. Selection, on
the other hand, tends to be negative because it rejects a good number of those
who apply, leaving only the best to be hired. ”
1. Recruitment Planning:

• The recruitment process begins with the planning where the vacant
job positions are analyzed and then the comprehensive job draft is
prepared that includes: job specifications and its nature, skills,
qualifications, experience needed for the job, etc.
•.
• Recruitment Planning Conti------

• Here, the recruitment committee decides on the number and the

type of applicants to be contacted.
• The aim of any organization is to attract more candidates as some
of them might not be willing to join, or some might not qualify for
the job position.
• So the company has a sufficient number of candidates to choose
amongst them.
• The type of candidates required for the job is well specified in
terms of the tasks and responsibilities involved in a job along with
the qualifications and experience expected.
2. Strategy Development:
• Once the comprehensive job draft is prepared, and the type and the number
of recruits required are decided upon; the next step is to decide a strategy
that is adopted while recruiting the prospective candidates in the
organization. The following strategic considerations should be kept in mind:
• Make or Buy Employees, which means the firm either decides to select less
skilled employees and invest in training and education programs or hire
skilled professionals.
• Methods of Recruitment, the firm decides on the methods used for
recruiting the individuals. Such as the internet provides detailed
information about the prospective candidates and helps in shortlisting the
best-qualified individuals.
 Geographical Area, the next decision is related to the area from where
the candidates shall be searched. The firm looks for those areas where
the handful amount of qualified employees is concentrated, with a view
to curtailing a search cost.

 Sources of Recruitment, there are two sources of recruitment:

 Internal sources (within the organization), and
 external sources (outside the organization). The firm must decide the
source from where the candidates are hired.
3. Searching:

Once the strategy is prepared the search for the candidates can be
initialized. It includes two steps:

• source activation and selling. The source activation means, the

search for the candidate activates on the employee requisition i.e.
until and unless the line manager verifies that the vacancy exists,
the search process cannot be initiated.
• The next point to be considered is selling, which means the firm
must judiciously select that media of communication that
successfully conveys the employment information to the
prospective candidates
4.Screening(shortlisting the applications ):
• Screening means shortlisting the applications of the candidates
for further selection process. Although, the screening is
considered as the starting point of selection but is integral to the
recruitment process.
• This is because the selection process begins only after the
applications are scrutinized and shortlisted on the basis of job
requirements.
• The purpose of recruitment here is to remove those applications
at an early stage that clearly seem to be unqualified for the job.
5. Evaluation and Control:

• Evaluation and control is the last stage in the recruitment process

wherein the validity and effectiveness of the process and the
methods used therein is assessed. This stage is crucial because the
firm has to check the output in terms of the cost incurred.

• Recruitment is a costly process as it includes the salaries of

recruiters, time spent by the management, cost of advertisement,
cost of selection, a price paid for overtime, and outsourcing in case
the vacancy remains unfilled. Thus, a firm is required to gather all
this relevant information to evaluate the performance of a
recruitment process effectively.
Sources of Recruitment:
• Recruitment is of 2 types
1. Internal Recruitment - is a recruitment which takes place within the
concern or organization. Internal sources of recruitment are readily
available to an organization. Internal sources are primarily three - Transfers,
promotions, and Re-employment of ex-employees.

• Internal recruitment may lead to an increase in employee productivity as

their motivation level increases. It also saves time, money, and effort.
However, a drawback of internal recruitment is that it refrains the
organization from new blood. Also, not all the manpower requirements can
be met through internal recruitment. Hiring from outside has to be done.
Internal sources are primarily 3

a. Transfers

b. Promotions (through Internal Job Postings) and

c. Re-employment of ex-employees -

Re-employment of ex-employees is one of the internal sources of

recruitment in which employees can be invited and appointed to fill
vacancies in the concern. There are situations when ex-employees provide
unsolicited applications.
• 2. External Recruitment -
• External sources of recruitment have to be solicited from
outside the organization.
• External sources are external to a concern. But it involves a
lot of time and money.
• The external sources of recruitment include - Employment at
the factory level, advertisements, employment exchanges,
employment agencies, educational institutes, labor
contractors, recommendations, etc.
 EXTERNAL RECRUITMENT METHODS

a. Employment at Factory Level

b. Advertisement
c. Employment Exchanges
d. Employment Agencies
e. Educational Institutions
f. Recommendations
g. Labor Contractors
a. Employment at Factory Level -

This is a source of external recruitment in which the applications for vacancies

are presented on bulletin boards outside the Factory or at the Gate.

This kind of recruitment is applicable generally where factory workers are to be

appointed.

There are people who keep on soliciting jobs from one place to another.
These applicants are called unsolicited applicants.
These types of workers apply on their own for their jobs.
For this kind of recruitment, workers have a tendency to shift from one factory
to another and therefore they are called “bad” workers.
b. Advertisement –

It is an external source that has an important place in the

recruitment procedure. The biggest advantage of advertisement is
that it covers a wide area of the market and scattered applicants
can get information from advertisements.
The medium used is Newspapers and Television.
c. Employment Exchanges -

There are certain Employment exchanges that are run by the

government. Most of the government undertakings and concerns employ
people through such exchanges. Nowadays recruitment in government
agencies has become compulsory through employment exchange.
d. Employment Agencies –

There are certain professional organizations that look towards

recruitment and employment of people, i.e. these private
agencies run by private individuals supply required manpower to
needy concerns.
e. Educational Institutions -

There are certain professional Institutions that serves as an

external source for recruiting fresh graduates from these
institutes.
This kind of recruitment done through such educational
institutions is called Campus Recruitment.
They have special recruitment cells which help in providing jobs to
fresh candidates.
f. Recommendations -
There are certain people who have experience in a particular area. They
enjoy goodwill and a stand in the company. There are certain vacancies
which are filled by recommendations of such people. The biggest drawback
of this source is that the company has to rely totally on such people which
can later on prove to be inefficient.
g. Labor Contractors -

These are the specialist people who supply manpower to the

Factory or Manufacturing plants.
Through these contractors, workers are appointed on a contract
basis, i.e. for a particular time period.
Under conditions when these contractors leave the organization,
such people who are appointed have to also leave the concern.
Factors Affecting Recruitment:

•Recruitment is an important function of Human Resource

Management in an organization, and it is governed by a mixture of
various factors. Proactive HR Professionals should understand these
factors influencing recruitment and take necessary actions for the
betterment of the organization.

•When the market condition changes, the organization also needs to

monitor these changes, discover how it affect the resources, and
analyze these functions to make recruitment an effective process.

•We have Internal Factors as well as External Factors that influence

the recruitment process. In this chapter, we will be discussing these
factors in detail.
Internal Factors
•Organizations have control over the internal factors that affect their
recruitment functions. The internal factors are −

 Size of organization
 Recruiting policy
 Image of organization
 Image of job
Size of Organization
•The size of the organization is one of the most important factors affecting the recruitment
process. To expand the business, recruitment planning is mandatory for hiring more resources,
which will be handling the future operations.
Recruiting Policy
• The recruitment policy of an organization, i.e., hiring from internal
or external sources of an organization is also a factor, which affects
the recruitment process. It specifies the objectives of the
recruitment and provides a framework for the implementation of
recruitment programs.
Image of Organization
•Organizations having a good positive image in the market can
easily attract competent resources. Maintaining good public
relations, providing public services, etc., definitely helps an
organization in enhancing its reputation in the market, and thereby
attract the best possible resources.
.
Image of Job
•Just like the image of an organization, the image of a job plays a
critical role in recruitment. Jobs having a positive image in terms of
better remuneration, promotions, recognition, good work
environment with career development opportunities are
considered to be the characteristics to attract qualified candidates
 EXTERNAL FACTORS
• External factors are those that cannot be controlled
by an organization
 Demographic factors
 Labor market
 Unemployment rate
 Labor laws
 Legal considerations
 Competitors
External Factors
•External factors are those that cannot be controlled by an
organization.
•The external factors that affect the recruitment process include the
following −
 Demographic factors −
 Demographic factors are related to the attributes of potential
employees such as their age, religion, literacy level, gender,
occupation, economic status, etc.
• Labor market −
• The labor market controls the demand and supply of labor.
For example, if the supply of people having a specific skill is
less than the demand, then the hiring will need more effort.
On the other hand, if the demand is less than the supply,
hiring will be relatively easier.
 Unemployment rate −
 If the unemployment rate is high in a specific area, hiring
of resources will be simple and easier, as the number of
applicants is very high. In contrast, if the unemployment
rate is low, then recruiting tends to be very difficult due to
less number of resources.
 Labor laws −
 Labor laws reflect the social and political environment of a market, which
are created by the central and state governments. These laws dictate the
compensation, working environment, safety and health regulations, etc., for
different types of employment. As the government changes, the laws too
change
 Legal considerations − Job reservations for different castes
such as STs, SCs, and OBCs are the best examples of legal
considerations. These considerations, passed by a
government, will have a positive or negative impact on the
recruitment policies of the organizations.
 Competitors −
 When organizations in the same industry are competing for
the best-qualified resources, there is a need to analyze the
competition and offer the resources packages that are best in
terms of industry standards.
Selection
Selection: -

It is a process by which the qualified personnel can be

chosen from the applicants who have offered their
services to the organisation for employment.

In other words it is a process of choosing a person

suitable for the job out of several persons.
Definition: -
“Selection is the process of differentiating
between applicants in order to identify
those with a greater likelihood of success in
a job”
– Stone.
Essentials: -
1. Someone should have the authority to
select.
2. Some standards must be there to compare.
3. Sufficient number of applications.
Selection Process: -
1. Job analysis.
2. Recruitment.
3. Preliminary screening.
4. Application blank.
5. Preliminary interview.
6. Employment tests.
7. Employment interview.
8. Medical examination.
9. Reference checks.
10. Final selection & job offer.
 Elaborate
explanation
on
Selection
 Selection
 Employee Selection is the process of putting the right men on the right job.
 It is a procedure of matching organizational requirements with the skills
and qualifications of people.
 Effective selection can be done only when there is effective matching.
 By selecting the best candidate for the required job, the organization will
get the quality performance from employees.
 Moreover, organizations will face less absenteeism and employee turnover
problems.
 By selecting the right candidate for the required job, an organization will
also save time and money.
 Proper screening of candidates takes place during the selection procedure.
 All the potential candidates who apply for the given job are tested.
Finding the interested candidates who have
submitted their profiles
• Finding interested candidates who have submitted
their profiles for a particular job is the process of
recruitment,
•and choosing the best and most suitable
candidates among them is the process of selection.
•It results in the elimination of unsuitable candidates.
•It follows scientific techniques for the appropriate
choice of a person for the job.
• The recruitment process has a wide coverage as
it collects the applications of interested
candidates,
• whereas the selection process narrows down
the scope and becomes specific when it selects
suitable candidates.
Stone defines, ‘Selection is the process of differentiating between
applicants in order to identify (and hire) those with a greater likelihood of
success in a job’.
 A scientific and logical selection procedure leads to the scientific
selection of candidates.
 The criterion finalized for selecting a candidate for a particular
job varies from company to company.
 Therefore, the selection procedure followed by different
organizations, many times, becomes lengthy as it is a question of
getting the most suitable candidates for which various tests are to be
done and interviews to be taken.
 The procedure for selection should be systematic so that it does not
leave any scope for confusions and doubts about the choice of the
selected candidate.
 STEPS IN SELECTION PROCEDURE
1. Inviting Applications
2. Receiving Applications
3. Scrutiny of Applications
4. Written Tests
5. Psychological Tests
6. Personal Interview
7. Reference Check
8. Medical Examination
9. Final Selection
10. Placement
Brief details of the various steps in selection procedure are given as follows:

1. Inviting Applications:

The prospective candidates from within the organization or

outside the organization are called to apply for the post.

Detailed job descriptions and job specifications are

provided in the advertisement for the job. It attracts a large
number of candidates from various areas.
2. Receiving Applications:

Detailed applications are collected from the candidates

who provide the necessary information about the
personal and professional details of a person. These
applications facilitate the analysis and comparison of the
candidates.
3. Scrutiny of Applications:

As the limit of the period within which the company is

supposed to receive applications ends, the
applications are sorted out.
Incomplete applications get rejected; applicants with
un-matching job specifications are also rejected.
4. Written Tests:

As the final list of candidates becomes ready after the

scrutiny of applications, the written test is conducted.
This test is conducted to understand the technical
knowledge, attitude and interest of the candidates.

This process is useful when the number of applicants is

large. Many times, a second chance is given to candidates
to prove themselves by conducting another written test.
5. Psychological Tests:

These tests are conducted individually and they

help to find out the individual quality and skill of a
person.
The types of psychological tests are aptitude tests,
intelligence tests, and personality tests.
6. Personal Interview:

• Candidates proving themselves successful through tests are

interviewed personally. The interviewers may be individuals or a
panel.
• It generally involves officers from the top management.
• The candidates are asked several questions about their experience
on another job, their family background, their interests, etc.
• They are supposed to describe their expectations from the said job.
•
Their strengths and weaknesses are identified and noted by the

interviewers which helps them to make the final decision of

selection.
8. Medical Examination:

The physical strength and fitness of a candidate is a

must before they take up the job.
In spite of good performance in tests and interviews,
candidates can be rejected on the basis of their ill
health.
9. Final Selection:

At this step, the candidate is given the

appointment letter to join the organization on a
particular date.
The appointment letter specifies the post, title,
salary, and terms of employment. Generally, the
initial appointment is on probation and after a
specific time period, it becomes permanent.
10. Placement:

This is a final step. A suitable job is allocated to the

appointed candidate so that they can get the whole
idea about the nature of the job. They can get
adjusted to the job and perform well in the future
with all capacities and strengths.
 Differences between Recruitment and Selection
Basis Recruitment Selection

Meaning It is an activity of establishing contact It is a process of picking up more competent

between employers and applicants. and suitable employees.

Objective It encourages large number of Candidates It attempts at rejecting unsuitable candidates.

for a job.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross over many Many hurdles have to be crossed.
hurdles.

Approach It is a positive approach. It is a negative approach.

Sequence It proceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time Consuming Less time is required. More time is required.

Placement
Placement: -
Once the candidate accepts the offer & joins, the
organisation has to place him in the job for which he has
been selected.
A proper placement of an employee results in low
employee turnover, low absenteeism & low accident rates
in shop floor jobs & improved morale & commitment of
the employees.
After selection, the employee is first inducted in to the
organisation. This is the period of familiarisation for the
employee, with the organisation, with his colleagues &
with his job.

Then the employee is usually put on probation for a

period ranging from six months to two years.
The organisation decides the final placement after the initial
probation period is over, based on employee’s performance during
the period & his aptitude & interest.
If the employee’s performance is not satisfactory, the
organisation may extend the probation period or ask the employee
to quit.

If the employee performs satisfactorily during this

period, he is usually made a permanent employee.
Definition: -
“Placement is the determination of the job to which an accepted
candidate is to be assigned & his assignment to that job. It is
matching of what the supervisor has reason to think he can do
with the job demands (job requirement) it is a matching of what
he imposes (in strain, working conditions) & what he offers in
the form of payroll, companionship with others, promotional
possibilities etc” – Paul Pigors & Charles. A. Myers.
 Elaborate
explanation
on
Placement
 Placement
 Once the candidates are selected for the required job, they have to be
fitted as per the qualifications.
 Placement is said to be the process of fitting the selected person at
the right job or place, i.e. fitting square pegs in square holes and
round pegs in round holes.
 Once he is fitted into the job, he is given the activities he has to
perform and also told about his duties.
 The freshly appointed candidates are then given orientation in order
to familiarize themselves and introduce the company to them.
Generally, the information given during the orientation program includes-
 Employee’s layout
 Type of organizational structure
 Departmental goals
 Organizational layout
 General rules and regulations
 Standing Orders
 Grievance system or procedure
• In short, during Orientation employees are made aware of the mission and
vision of the organization, the nature of operation of the organization, policies
and programs of the organization.
• The main aim of conducting Orientation is to build up confidence, morale, and
trust of the employee in the new organization so that he becomes a productive
and efficient employee of the organization and contributes to the
organizational success.
• The nature of the Orientation program varies with the organizational
size, i.e., the smaller the organization the more informal is the
Orientation and the larger the organization more formalized the
Orientation program.
• Proper Placement of employees will lower the chances of employee
absenteeism. The employees will be more satisfied and contended with their
work.
Placement – Importance
1. If the employees are properly placed, they will enjoy their
work and the organization will not have to suffer the
problem of employee turnover.
2. If employees don’t like their work, they start making
excuses for the job and remain absent. Effective placement
will keep the absenteeism rate low.
3. The morale of workers increases because they get the
work of their choice if correctly placed.
4. Workers will work attentively and the safety of workers
will be ensured and fewer accidents will happen.
5. Workers will be satisfied with their jobs and there will be
no reasons for disputes, so human relations will improve.
6. Through proper placement, the misfit between the job and
the person can be avoided.
7. Efficient and effective performance of individual tasks will
ensure the achievement of organizational goals.
8. Productivity i.e., a ratio of output to input increases as
wastage and abnormal losses decrease.
Placement should be done keeping into view the job and
social, psychological & and emotional needs of a person.
 The major benefits of placement are given below:
1. Building support with peers, juniors, and seniors in the
department within a short period
2. Able to adjust himself to the new job
3. Avoid mistakes
4. Regular attendance
5. High level of involvement in the job
6. Good performance on the job

Placement is an important human resource activity and new

recruits must be inducted properly so that they become good
performers.
Placement Major Benefits (With Guidelines to Managers)
 After a candidate has been selected, he should be placed in a
suitable job.
 Placement is an actual posting of an employee to a specific job.
 It involves assigning duties and responsibilities to an employee.
 The organization normally decides about final placement after
initial training or probation.
 The supervisor’ of the recruit makes decisions regarding
placement in consultation with the senior manager in the
department.
The personnel manager faces certain problems in the
placement of new employees in the jobs for which they
have been selected.
These problems are as follows:

Problem # 1. Employees Expectations:

What the new employee expects from his job is the first problem in
his placement. If he expects a high salary, independent and
challenging work but the job offers a low salary, dependent and
routine work, the employee finds himself a misfit to his job.
Problem # 2. Job Expectations:
Sometimes, the employee’s expectations from his job are more than
his abilities or skills. In such a case, the personnel manager finds a
mismatch between the employee and the job.
Problem # 3. Technological Change:
Sometimes, technological changes bring radical changes in job
descriptions and specifications, resulting in a mismatch between the
employee and the job.
Problem # 4. Changes in Organizational Structure:
Some strategic changes like mergers, acquisitions(achievements),
amalgamations(unions), delaying, downsizing, etc. bring about
changes in organizational structure, which in their turn, bring about
changes in the jobs. Such changes are likely to result in a misfit
between the employees and the job.
Problem # 5. Social and Psychological Factors:
Some social and psychological factors involved in teamwork or group
formation result in the mismatch between employees and jobs
When a New Employee Joins an Organization – Guidelines to Managers:
1. Create a positive first impression- pay attention to reception, workplace,
stationery, documents, etc.
2. Prepare a write-up on the new employee with a photograph, put it up on the
Notice Board, and mail it to all employees.
3. Introduce the new employees to key managers in the organization.
4. Let him meet other employees in his department.
5. Provide an opportunity for him to work with senior employees to understand
organizational culture. The organizational culture denotes the personality of the
organization- the unwritten code of conduct and norms, interaction among
members, and the values that are shared and practiced by people through
generations. Organizational culture may be expressed in many ways and include
ceremonies, celebrations, rites, rituals, behavioral norms, language, jargon, beliefs,
and values.
6. Let the new employee feel that his first day in the office is a memorable one .
Induction
and
Orientation
OF ORIENTATION
(BORING)
Elaborate explanation
on
Induction
and
Orientation
 Induction and Orientation
Definition of Induction
• Welcoming new hires to the company is induction. It is a well-planned program to socialize
the new joiner with the co-workers and the workplace. The term induction is derived from
the Latin term ‘inducer’ which refers to ‘to bring or introduce’. In this process, a person is
formally admitted to the company as an employee, to take charge of a particular post.
• In short, it is a process of introducing an employee that takes place on the day he joins the
organization and is provided with the basic information needed to adjust as soon as
possible in the new organization to gain maximum efficiency in the minimum time. The
process helps in making a positive first impression on the new recruits that they belong to
the company.
• Under this process, the employee is made aware of the organizational hierarchy, and a
review is given of the firm’s history. The overview is related to the company’s mission,
vision, values, policies, norms, history of the employer, clients and partners, dress code, and
so on.
Definition of Orientation
• Orientation is a process of helping the new entrant, to gel up in the organization, easily and quickly. In this
process, a practical overview of the organization is given, in which the new joint is introduced to different
people working in the organization, to make him feel at home in the new environment. Companies spend a few
weeks or even months on the orientation of the new recruits.
• The objective of the program is to remove the anxiety and fear from the minds of the new hires. It is quite a
known fact that employees feel anxious when they first join an organization, they worry about how they will
be able to perform the new job. Many employees feel inadequate because they compare themselves with more
experienced employees. The orientation program aims to reduce the anxiety of new employees by giving them
the necessary information regarding the job environment, by introducing them to other employees.
Some common topics included in the employee orientation
program are:
 Organizational Issues: Probationary period, Disciplinary
regulation, Layout of physical facilities, Company policies and rules,
etc.
 Employee Benefits: Pay scale and paydays, Retirement program,
Counseling, Vacations and holidays, etc.
 Introduction To : Supervisor, co-workers, team leader, manager, etc.
 Job Duties: Job location, job objectives, job safety requirements, an
overview of the job, etc.
Objectives of Induction:
Induction serves the following purposes:
1)To remove the fears in the minds of new
employees
2)To create a good impression
3)To act as a valuable source of information
4)To reduce the turnover of employees
Why Induction/Orientation:
1)For accommodating the new employees
2)Becoming an insider
3)Employee can overcome his anxiety
4)Employees can overcome reality shocks
5)Reducing employee turnover
What to Induct?

1)A current organization chart of the company

2)Provide a map of facilities and resources in the organization
3)The key terms that are unique to the industry, company, and job
4)A copy of company policy and handbook
5)List of benefits
6)Telephone numbers and location of key people and operations
7)Sample copies of the company’s publications.
How to Induct Successfully?
1)A systematic plan should be followed
2)A checklist of points to be included in induction should
be prepared
3)Induction booklet should be provided
4)Anyone who is promoted or transferred from one job
to another should also be provided
Comparison Chart
BASIS FOR
INDUCTION ORIENTATION
COMPARISON
Meaning Induction is a process takes place to A process which involves assimilation
welcome newcomer to the organization, to (accommodation) of new joinee into the
make them ready for their job. organization to rehabilitate(socialize) him at
the new workplace and provided with basic
information about the company.

Process One way Two way

Involves Introduction of the employee with the Integration of the employee in the
organization. organization.

Time horizon Short term Long term

Sequence First Second
Form Detailed presentation or brochure of the Practical overview of the organization.
company's rules, policies and employee
benefits is provided.
 Training
and
Development
Training& Development: -

Training is an act or process of increasing the knowledge

& skill of an employee for doing a particular job.

Training is short term educational process & utilising a

systematic & organised procedure by which employees
learn technical knowledge & skills for a definite purpose.
Definition: -
“Training is a organised procedure by
which people learn knowledge & skill
for a definite purpose”
– Brech.
 Objectives: - Training Conti---

1. To improve basic knowledge.

2. To teach new techniques.

3. To prepare employees to meet changes.

4. To prepare employees for higher level tasks

 Training Conti---

Need: -
1. Job requirements.
2. Technological changes.
3.Organisational development.
4. Employee development.
 Training Conti---

Importance: -
1. Higher productivity.
2. Better quality of work.
3. Less learning period.
4. Cost reduction.
5. Reduced supervision.
6. Lower accident rate.
 Training Conti---

Methods: -

I. On the job
II.Off the job
1. On-the-job Training (OJT) Methods:

This is the most common method of training in which a

trainee is placed on a specific job and taught the skills and
knowledge necessary to perform it.

1. Job rotation.
2. Coaching.
3. Job instruction.
4. Committee assignments.
On-the-job training methods are as follows:

1. Job rotation:
This training method involves the movement of trainees
from one job to another to gain knowledge and experience
from different job assignments. This method helps the
trainee understand the problems of other employees.
2. Coaching:
Under this method, the trainee is placed under a
particular supervisor who functions as a coach in training
and provides feedback to the trainee. Sometimes the
trainee may not get an opportunity to express his ideas.
3. Job instructions:
Also known as step-by-step training in which the
trainer explains the way of doing the jobs to the
trainee and in case of mistakes, corrects the trainee.

4. Committee assignments:
A group of trainees are asked to solve a given
organizational problem by discussing the problem.
This helps to improve teamwork.
5. Internship training:

Under this method, instructions through

theoretical and practical aspects are provided
to the trainees.
Usually, students from engineering and
commerce colleges receive this type of training
for a small stipend.
 Training Conti---
The advantages of (On-the-job training)OJT method
are as follows:

1. On the job method is a flexible method.

2. It is a less expensive method.
3. The trainee is highly motivated and encouraged to learn.
4. Much arrangement for the training is not required.
B. off-the-job Methods:
On-the-job training methods have their own limitations,
and in order to have the overall development of employees
off-the-job training can also be imparted.
The methods of training that are adopted for the
development of employees away from the field of the job
are known as off-the-job methods.
 Training Conti---

II. Off the job: -

1. Training centres.
2. Role playing.
3. Lecture method.
4. Discussion method.
5. Programmed instructions
OFF-THE-JOB TECHNIQUES
1. Case study method
2. Incident method
3. Roleplay
4. In-basket method
5. Business games
6. Grid training
7. Lectures
8. Simulation
9. Management Education
10. Conferences
The following are some of the off-the-job
techniques:
1. Case study method:
Usually, a case study deals with any problem
confronted (challenged) by a business that can be
solved by an employee.
The trainee is given an opportunity to analyze the case
and come out with all possible solutions.
This method can enhance the analytic and critical
thinking of an employee.
2. Incident method
Incidents are prepared on the basis of actual situations
which happened in different organizations and each
employee in the training group is asked to make
decisions as if it is a real-life situation.
Later on, the entire group discusses the incident and
makes decisions related to the incident on the basis of
individual and group decisions.
Ex:-Fire drill
3. Roleplay:
In this case, a problem situation is simulated(imitation)
asking the employee to assume the role of a particular
person in the situation.
The participant interacts with other participants assuming
different roles.
The whole play will be recorded and the trainee will get an
opportunity to examine their own performance.
(Ex:-As a Manager)
4. In-basket method:
The employees are given information about an
imaginary company, its activities and products, HR
employed, and all data related to the firm.
The trainee (employee under training) has to make
notes, delegate tasks, and prepare schedules within
a specified time.
This can develop situational judgments and quick
decision-making skills of employees.
5. Business games:
According to this method, the trainees are divided
into groups and each group has to discuss various
activities and functions of an imaginary
organization.
They will discuss and decide on various subjects like
production, promotion, pricing, etc.
This results in a cooperative decision-making
process.
6. Grid training:
It is a continuous and phased program lasting
for six years.
It includes phases of planning, development,
implementation, and evaluation.
The grid takes into consideration parameters
like concern for people.
7. Lectures:
This will be a suitable method when the
number of trainees is quite large.
Lectures can be very helpful in explaining
the concepts and principles very clearly,
and face-to-face interaction is very much
possible.
8. Simulation:
Under this method, an imaginary situation is
created and trainees are asked to act on it.
For e.g., assuming the role of a marketing
manager solving marketing problems or
creating a new strategy, etc.
9. Management education:
At present universities and management institutes
give great emphasis on management education.
For e.g., Mumbai University has started a bachelor’s
and postgraduate degree in Management.
Many management Institutes provide not only
degrees but also hands-on experience having
collaboration with business concerns.
10. Conferences:
A meeting of several people to discuss any
subject is called a conference.
Each participant contributes by analyzing and
discussing various issues related to the topic.
Everyone can express their own viewpoint.,
 Training Conti---
Principles or Guidelines: -
1. Clear objectives.
2. Training policy.
3. Motivation.
4. Organised material.
5. Learning periods.
6. Preparing the instructor.
7. Feedback.
8. Practice.
9. Appropriate techniques.
10. Rewards for efforts.
 Training Conti---

Process: -
1. Identifying training needs.
2. Setting up of training objectives.
3. Designing the training programme.
4. Implementation of the programme.
5. Evaluation of results.
 Training Conti---

Problems: -
1. Benefits not clear to top management.
2. Doesn’t spend sufficient money on training.
3. Top management hardly rewards supervisors
4. Timely information is difficult to obtain.
5. Trade unions busy in other issues.
 Differences between Training and Development:

(Entry)
 Elaborate
explanation
on
Training
and
Development
 Training and development
Training and development is one of the key HR functions. Most organizations look at training and
development as an integral part of the human resource development activity. The turn of the century has
seen an increased focus on the same in organizations globally. Many organizations have mandated training
hours per year for employees keeping in consideration the fact that technology is deskilling the employees at
a very fast rate.
Methods of Training:
There are two methods through which managers can improve their knowledge
and skills. One is through formal training and the other is through on-the-job
experiences.
On-the-job training is very important since real learning takes place only when
one practices what one has studied.
 On-the-job Training Method
 Off-the-Job Training Methods
 Management development is a systematic process of growth and
development by which the managers develop their abilities to
manage.
It is concerned with not only improving the performance of
managers but also giving them opportunities for growth and
development.
But it is also equally important in gaining knowledge through
classroom learning.
Learning becomes fruitful only when theory is combined with
practice.
Therefore on job methods can be balanced with classroom
training methods (off-the-job methods).
A. On-the-job Training (OJT) Methods:
This is the most common method of training in which a trainee is placed on a specific job and taught the skills and
knowledge necessary to perform it.

The advantages of OJT are as follows:

1. On the job method is a flexible method.

2. It is a less expensive method.

3. The trainee is highly motivated and encouraged to learn.

4. Much arrangement for the training is not required.

On-the-job training methods are as follows:
1. Job rotation
2. Coaching
3. Job instructions
4. Committee assignment
5. Internship training
PERFORMANCE
APPRAISAL
Performance Appraisal: -
Performance Appraisal or Performance
Evaluation is the process of assessing
systematically the performance & progress
of an employee on the present job & his
potential for higher level jobs in future.
Definition: -
“Performance appraisal is the systematic,
periodic & an impartial rating of an employee’s
excellence in matters pertaining to his present
job & his potential for a better job”
– Flippo.
Characteristics: -
1. Series of steps.
2. Systematic manner.
3. Continuous process.
4. To secure information.
5. Perfect plan.
 PERFORMANCE APPRAISAL Conti-----
Objectives: -

1. To assess worth of employees.

2. To provide a valid database.
3. To assess good & bad points of employees.
4. To test effectiveness of recruitment, selection process etc.
5. To evaluate skills & training capabilities of employees.
6. To know problems faced by employees.
7. To provide a basis for comparison b/w efficient & inefficient employees.
8. To help management in fixing employees according to their capacity etc.
9. To help supervisors to know their subordinates more closely.
10. To facilitate research in HR management.
 ADVANTAGES OF PERFORMANCE APPRAISAL

1. Promotion
2. Compensation
3. Employees Development
4. Selection Validation
5. Communication
6. Motivation
Advantages of Performance Appraisal
It is a said data and performance appraisal is an investment
for the company which can be justified by the following
advantages:
1.Promotion:
Performance Appraisal helps the supervisors to chalk out
the promotion programs for efficient employees.
In this regard, inefficient workers can be dismissed or
demoted in case.
2. Employees Development:
The systematic procedure of performance appraisal helps
the supervisors frame training policies and programs.
It helps to analyze the strengths and weaknesses of
employees so that new jobs can be designed for efficient
employees.
It also helps in framing future development programs.
3. Selection Validation:
Performance Appraisal helps the supervisors to
understand the validity and importance of the
selection procedure.
The supervisors come to know the validity and
their strengths and weaknesses of the selection
procedure.
Future changes in selection methods can be made
in this regard.
4. Communication:
For an organization, effective communication between employees and
employers is very important. Through performance appraisal,
communication can be sought in the following ways:
a. Through performance appraisal, the employers can understand and
accept the skills of subordinates.
b. The subordinates can also understand and create trust and
confidence in superiors.
c. It also helps in maintaining cordial (affectionate) and congenial
(pleasant) Labor management relationships.
d. It develops the spirit of work and boosts the morale of employees.
5. Motivation:
Performance appraisal serves as a motivation tool. Through
evaluating the performance of employees, a person’s
efficiency can be determined if the targets are achieved.
It very well motivates a person for a better job and helps
him to improve his performance in the future.
Importance: -
1. Provides valuable information for personnel
decisions.
2. Helps to judge effectiveness of selection
methods.
3. Helps in analysing training needs.
4. Basis for improving performance of
employees.
5. Facilitates planning.
6. Provides positive work environment.
7. Motivation of employees.
Limitations: -
1.Errors in rating
2. Incompetence ( Lack of knowledge)
3. Negative approach.
4. Status effect.
5. Resistance
Process: -
1. Establishing performance standards.
2. Communicating the standards.
3. Measuring actual performance.
4. Comparing actual with standards.
5. Discussing the appraisal.
6. Taking corrective action.
Essentials: -
1. Mutual trust.
2. Clear objectives.
3. Standardisation.
4. Training.
5. Job relatedness.
6. Documentation.
7. Feedback & Participation.
8. Individual differences.
9. Post – appraisal interview.
10. Legal sanction.
11. Review & appeal.
Methods of Performance Appraisal:
Numerous methods have been devised to measure the quantity and
quality of performance appraisals.
Each of the methods is effective for some purposes for some
organizations only.
None should be dismissed or accepted as appropriate except as they
relate to the particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different
categories.
 Past Oriented Methods / Traditional Methods
 Future Oriented Methods / Modern Methods
Past Oriented Methods
1. Rating Scales
2. Checklist
3. Forced Choice Method
4. Forced Distribution Method
5. Critical Incidents Method
6. Behaviorally Anchored Rating Scales
7. Field Review Method
8. Performance Tests & Observations
9. Confidential Records
10. Essay Method
11. Cost Accounting Method
12. Comparative Evaluation Method
(Ranking & Paired Comparisons).
Past Oriented Methods
1. Rating Scales:
Rating scales consist of several numerical scales representing job-
related performance criteria such as dependability, initiative, output,
attendance, attitude, etc. Each scale ranges from excellent to poor.
The total numerical scores are computed and final conclusions are
derived.

Advantages –
Adaptability, easy to use, low cost, every type of job can be evaluated,
large number of employees covered, no formal training required.

Disadvantages –
Rater’s biases
2. Checklist:
Under this method, a checklist of statements of traits
(qualities) of employees in the form of Yes or No based
questions is prepared.
Here the rater only does the reporting or checking and the
HR department does the actual evaluation.
Advantages – economy, ease of administration, limited
training required, standardization.
Disadvantages – Raters biases, use of improper weighs by
HR, does not allow rater to give relative ratings job-related.
3. Forced Choice Method:

The series of statements arranged in the blocks of two or more are

given and the rater indicates which statement is true or false.
The rater is forced to make a choice. HR department does the actual
assessment.
Advantages – Absence of personal biases because of forced choice.

Disadvantages – Statements may be wrongly framed.

4. Forced Distribution Method:

Here employees are clustered around a high point on a

rating scale.
The rater is compelled to distribute the employees on all
points on the scale.
It is assumed that the performance conforms to normal
distribution.
Advantages – Eliminates

Disadvantages – Assumption of normal distribution,

unrealistic, errors of central tendency.
5. Critical Incidents Method:

The approach is focused on certain critical behaviors of employee

that makes all the difference in performance.
Supervisors as and when they occur record such incidents.

Advantages – Evaluations are based on actual job behaviors, ratings

are supported by descriptions, feedback is easy, reduces regency
biases, and chances of subordinate improvement are high.

Disadvantages – Negative incidents can be prioritized, forgetting

incidents, and overly close supervision; feedback may be too much
and may appear to be punishment.
.

6. Behaviorally Anchored Rating Scales:

statements of effective and ineffective behaviors determine the points.

They are said to be behaviorally anchored.
The rater is supposed to say, which behavior describes the employee
performance.

Advantages – helps overcome rating errors.

Disadvantages – Suffers from distortions inherent in most rating techniques.

7. Field Review Method: This is an appraisal done by someone outside the

employees’ own department usually from the corporate or HR
department.

Advantages – Useful for managerial level promotions, when

comparable information is needed,

Disadvantages – Outsider is generally not familiar with

employees’ work environment, Observation of actual behaviors
not possible.
8. Performance Tests & Observations:
This is based on the test of knowledge or skills. The tests may be
written or an actual presentation of skills. Tests must be reliable and
validated to be useful.

Advantage – Tests may be apt to measure potential more than

actual performance.

Disadvantages – Tests may suffer if the costs of test development

or administration are high.
9. Confidential Records:

Mostly used by government departments, however, its application in industry

is not ruled out. Here the report is given in the form of the Annual
Confidentiality Report (ACR) and may record ratings with respect to the
following items; attendance, self-expression, teamwork, leadership, initiative,
technical ability, reasoning ability, originality and resourcefulness, etc. The
system is highly secretive and confidential.
Feedback to the assessee is given only in case of an adverse entry.

A disadvantage is that it is highly subjective and ratings can be manipulated

because the evaluations are linked to HR actions like promotions etc.
10. Essay Method:

In this method, the rater writes down the employee description

in detail within a number of broad categories, overall
impression of performance, promoted ability of the employee,
existing capabilities and qualifications of performing jobs,
strengths and weaknesses, and training needs of the employee.
Advantage – It is extremely useful in filing information gaps
about the employees that often occur in a better-structured
checklist.
Disadvantages – It is highly dependent upon the writing skills
of the rater and most of them are not good writers. They may
get confused because success depends on the memory power of
raters.
11. Cost Accounting Method:

Here performance is evaluated from the monetary returns yield to

his or her organization. The cost to keep employees and the benefit
the organization derives is ascertained. Hence it is more dependent
upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired
Comparisons):

These are collections of different methods that compare

performance with that of other co-workers.
The usual techniques used may be ranking methods and paired
comparison methods.
 MODERN METHODS OF PERFORMANCE APPRAISAL
1. 360 –Degree Feedback
2. Continuous Performance Management
3. Objective and Key Results (OKRs)
4. Performance Scorecards
5. Behaviourally Anchored Rating Scales(BARS)
6. Self-Assessment and Self-Appraisal
7. Continuous Learning and Development Plans
8. Check-ins
9. Gamification
10.Artificial Intelligence (AI) and Analytics
11.Skill-Based Assessments
12.Real Time Feedback Apps
 MODERN METHODS OF APPRAISAL

1.360-Degree Feedback:

Involves feedback from an employee's peers,

subordinates, supervisors, and sometimes external
stakeholders.

Provides a well-rounded view of an employee's

performance from multiple perspectives.
2. Continuous Performance Management:

1.Shifts from annual or semi-annual reviews to ongoing,

real-time feedback.
2.Allows for more immediate recognition and correction
of performance issues.
3. Objective and Key Results (OKRs):

1.Focuses on setting and achieving measurable objectives

and key results.
2.Aligns individual goals with organizational objectives,
promoting a more strategic approach.
4.Performance Scorecards:

• Involves the use of scorecards to measure and track

performance against specific goals.
• Provides a visual representation of performance metrics.
5. Behaviorally Anchored Rating Scales (BARS):

• Combines qualitative and quantitative elements by using

specific behavioral examples to anchor performance
ratings.
• Enhances the objectivity of the appraisal process.
6. Self-Assessment and Self-Appraisal:

• Employees assess their own performance, providing

them with a sense of ownership and accountability.
• Facilitates a dialogue between employees and
managers about performance.
7. Continuous Learning and Development
Plans:

• Emphasizes employee development and

growth as an integral part of performance
appraisal.
• Encourages the identification of learning
opportunities and the creation of
development plans.
8.Check-Ins:

• Regular one-on-one meetings between

employees and managers to discuss progress,
challenges, and goals.
• Promotes open communication and relationship
building.
9. Gamification:

• Introduces game-like elements to the performance

appraisal process to increase engagement.
• Can include rewards, recognition, and friendly
competition among employees.
10. Artificial Intelligence (AI) and Analytics:

• Utilizes data analytics and AI to assess

performance based on objective metrics.
• Provides insights into patterns and trends to
inform decision-making.
11.Skill-Based Assessments:

• Focuses on evaluating specific skills and

competencies relevant to the job.
• Enables a more targeted approach to performance
improvement.
12. Real-Time Feedback Apps:

• Incorporates mobile apps and tools that allow

employees to receive and provide real-time
feedback.
• Enhances communication and agility (alertness)
in addressing performance issues.

These modern methods aim to create a more

dynamic and employee-centric approach to
performance appraisal, fostering (encouragement) a
culture of continuous improvement and development within
organizations. The choice of method often depends on the
nature of the industry, organizational culture, and the
 Methods: -
I. Traditional Methods: -
1. Ranking method.
2. Grading method.
3. Paired Comparison method.
4. Graphic rating scale.
5. Forced choice method.
6. Group appraisal method.
7. Critical incidents method.
8. Confidential reports method.
II. Modern Methods: -

1. Appraisal by results.
2. Management By Objectives. (MBO)
3. Human Resource Accounting method
Money basis
4. 3600 appraisal.
 Elaborate
Explanation
On
Performance
Appraisal
 PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the performance of employees and to understand the
abilities of a person for further growth and development.

Performance appraisal is generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind the work performances of employees.
3. The employers are in a position to guide the employees for better performance.
Objectives of Performance Appraisal
Performance Appraisal can be done with the following objectives in mind:
4. To maintain records in order to determine compensation packages, wage structure, salary raises, etc.
5. To identify the strengths and weaknesses of employees to place the right men on the right job.
6. To maintain and assess the potential present in a person for further growth and development.
7. To provide feedback to employees regarding their performance and related status.
8. It serves as a basis for influencing the working habits of the employees.
9. To review and retain the promotional and other training programs.
Methods of Performance Appraisal:
 QUESTIONS FROM UNIT III - HUMAN RESOURCE
MANAGEMENT
1. (a). How is a Human resource manager different from other functional
managers? Explain
(b). What are the objectives of merit rating? Explain.
2. (a). Explain the concept of Job analysis with examples.
(b). Discuss in detail about recruitment selection process.
(c). Explain the roles of training and development.
3. (a). Explain the concept of personnel management and industrial
relations from HRM.
(b). Explain the process of manpower planning in HRM.
(c). Explain how the performance is appraised.
(d). Explain the need for training in an organization.
4. (a). Explain the steps followed in human resource planning.
(b). Identify the contents of a job description and explain briefly.
QUESTIONS FROM HUMAN RESOURCE MANAGEMENT Contd……..
5. (a). Discuss the nature of human resource management.
(b). Analyse the contents of the job specification.
(c). Elaborate the process of recruitment with suitable examples.
(d). Discuss in detail induction and orientation.
6. (a). Describe the concept of human resource management, with
the help of a case study.
(b). Discuss the various functions of human resources management.
7. (a). Explain the performance appraisal process used in IT companies.
(b). Explain the recruitment process followed in IT companies.
8. (a). List the objectives of human resource management.
(b). What is training? Explain types of training .