Unit 1: Introduction to HRM

Unit 2: Human Resource Planning, Recruitment &

Selection
Unit 3: Induction & Training
Introduction to Human Resource Management
• HRM is concerned with the working of people in an
organisation.

• ‘Organisation' - a group of individuals working

together to achieve common goal of an
organisation.

• A human resource is the total knowledge, ability,

skills, talents and attitude of an organised work
force.

• The values, ethics, beliefs and resourcefulness of

the individuals working in the organization also
form an important part of HRM.
Introduction to Human Resource Management
• The main element of HRM is the “Human approach”
while managing people.

• This approach helps the manager to view his

people as resource and assets in the organisation.

• The HRM emphasizes human aspects of individual

workers, their aspirations and their needs.
Meaning - Human Resource Management
• HRM is concerned with the people dimension in
management. Since every organisation is made up
of people, acquiring services, developing their
skills, motivating them to high levels of
performance and ensuring that they continue to
maintain their commitment to the organisation are
essential to achieving organisational objectives.

• This is true, regardless of their type of organisation.

Definition - Human Resource Management

• According to Edwin B. Flippo,

“Personnel management is planning, organising,
directing, and controlling of procurement,
development, competition, integration,
maintenance and separation of human resource to
the end that individual and social objectives are
accomplished.”

The purpose of these functions is to assist in the

achievement of basic organisational, individual and
social goals.

HRM is the management function that help managers’

Significance / Importance or Need of HRM
1. Objectives
helps to achieve objectives from time to time
by
• Creative positive attitude among workers
• Reducing wastage
• Making maximum use of resources
2. Facilitates professional growth
• Due to proper HR policies, employess are
trained well making them ready for future
promotions.
• Their talent not only utilised by existing
company but also in other companies which
Significance / Importance or Need of HRM
3. Better relations between union and
management
• helps to maintain cordial relationship with
union
• Union members realize that the company is
interested in the workers, they will not go
against
4. Helps an individual to work in a team
them. The risk of union members going on
• strike
Individuals are taught team work and
adjustment through effective
are greatly reduced. HR practices.
• Enables the individuals to be comfortable in a
team which in-turn would result in the holistic
development of the team.
Significance / Importance or Need of HRM
5. Identifies person for the future
• Preparing people for the future
• The company is able to identify potential
employees who can be promoted in the future
top-level jobs.
6. Allocating the jobs to the right person
• If proper recruitment and selection methods
are followed, the company will be able to
select the right people for the right job.
• When this happens, the number of people
leaving the job will reduce as they will
satisfied with their job, thereby decreasing the
labour turnover.
Significance / Importance or Need of HRM

7. Improves the Economy

• Lead to higher profits & better performance by
companies.

• Due to this, a company sets an opportunity to

enter into new businesses and start new
ventures, thus industrial development
increases and the economy improves.
Nature of HRM

The emergence of HRM can be attributed to the

writings of human relationists who attached
great significance to the human factor.

Lawrence Appley remarked, management is

personnel administration.

Management is concerned with efficient and

effective use of both human as well as
non-human resources.
Nature of HRM

HRM is the part of Management process.

Function is performed by all the managers.

A manager, to get the best out of his people, must

undertake the basic responsibility of selecting
people who will work under hum and to help,
develop, motivate, and guide them.
 Nature of HRM
1. Inherent part of management
2. Pervasive function (performed by all managers at
various level in the organisation)
3. Basic to all functional areas
4. People centered
5. Personnel activities or functions
6. Continuous process
7. Based on human relations.
 Objectives of HRM

The primary objectives of HRM is to ensure the

availability of competent and willing
workforce to the organisation.
Objectives of HRM
 Objectives of HRM
1) Social Objectives
Creating new job opportunities is also one of
the goals of societal approach.
Other objectives are:
• to maintain a balance between job vacancy
and job seekers by training people for the right
job.
• To engage individuals in productive
employment so that they can contribute to the
society and nation positively.
• Optimum utilization of workforce and
elimination of idle workers.
 Objectives of HRM
2) Organisational Objectives
it selects the right persons for the right job.

• to help in the achievement of organisational goals

and contribute towards overall organisational
efficiency.
• To build a reputation of the enterprise by following
ideal work approaches and human resource policies.
• To help in the optimum utilization of workforce by
maintaining a high benefit cost ratio of human
productivity.
• To increase the value of intellectual capital in the
 Objectives of HRM
3) Professional Objectives

• To maintain human dignity in all forms of work

• To grant opportunities for advancement and growth
in the organisation
• To promote healthy competition among work groups
so as to promote better performance and team spirit
• To develop skills through guidance whenever
necessary
• To allot roles to individuals for which they are more
suited
 Objectives of HRM
4) Individual Objectives

• To develop a positive attitude and high morale

among workers
• To harness the potential of individuals and utilize
their talents to the fullest extent
• To secure cooperation of workers in the overall
organisational development
• To satisfy the psychological and physiological
needs of employees and make them climb the need
hierarchy.
 Functions of HRM
A) Managerial function
1. Planning

• Determination of strategies, programmes, policies,

and procedures are necessary to accomplish
organisation objectives.
• It involves the ability to think, predict, analyze and to
take decisions.
• It is the predetermined course of action.
• It includes human resources requirement, selection,
training, etc. & involves forecasting of personnel
needs, changing values, attitudes and behaviour of
employees and their impact on the organisation.
 Functions of HRM
A) Managerial function
2. Organising

• It is the process of allocating tasks among its

members for achieving organisational objectives.

• designing structure and relationship among jobs,

personnel and physical factors.

• fixing of responsibilities
 Functions of HRM
A) Managerial function
3. Directing

• Guiding and telling the people to do a particular

work.

• also ensures employees work according to

instructions given to them.

• the willing and effective cooperation of

employees for the attainment of organisational
goals is possible through proper motivation.
 Functions of HRM
A) Managerial function
4. Coordinating

• It is required at all levels

• HR dept. ensures developing, interpreting, and
reviewing personnel policies and programmes for
better coordination.
• It deals with the task of blending efforts in order
to ensure the successful attainment of an
objective.
• HR manager has to coordinate with various
managers at different levels.
 Functions of HRM
A) Managerial function
5. Controlling
• It is checking, regulating and verifying whether
everything occurs as per the standards set and
plans adopted, if not the identifying the
deviations and correcting the same.
• Actions and operation are adjusted to pre-
determined plans and standards through control.
• Example: Auditing training programmes,
analyzing labour turnover records, directing
morale surveys, conducting separate interviews
 Functions of HRM
B) Operating function
1. Employment
• Job Analysis
• Human Resource Planning
• Recruitment
• Selection
• Placement
• Induction & Orientation
• Internal Mobility
 Functions of HRM
B) Operating function
1. Employment
a) Job Analysis
• It is the process of studying and collecting information
relating to the operations &responsibilities of a
specific job.
• It includes collection of data, information and ideas
relating to various aspects of job like men, machine,
materials
• Also includes preparation of job description, job
specification, job requirement, employee
specifications.
 Functions of HRM
B) Operating function
1. Employment
b) Human Resource Planning
• It is the process to determine and assure that the
organisation will have adequate number of qualified
persons available at the right time to perform the
activities in the organisation – estimation & future
requirements

• Human inventory - training to existing employees –

skilled persons from outside the organisation
 Functions of HRM
B) Operating function
1. Employment
c) Recruitment
• It is the process of attractive prospective candidates towards
the organisation.
• Identifying the present and the potential applicants for the job
and stimulating them to apply for the same and striking a
balance between internal and external sources
d) Selection
• It is the process of ascertaining the qualification, experience,
skills, knowledge etc., of an applicant with a view to appraising
his / her suitability for a job.
• Developing an application blank, developing testing, checking
references, medical examinations etc.
 Functions of HRM
B) Operating function
1. Employment
e. Placement
• It is the process of assigning the selected
candidate with the most suitable job in terms of
job requirements.
• Matching the employee specifications with job
requirements.
f. Induction and Orientation
It is a technique by which new employee is
rehabilitated in the changed surrounding and
introduced to the practices, policies, purpose, and
people of the organisation.
 Functions of HRM
B) Operating function
1. Employment

g. Internal Mobility

it includes vertical and horizontal

movement of an employee within an
organisation, like transfer, promotions,
demotions etc.
 Functions of HRM
B) Operating function
2. Human Resource Development

a. Performance Appraisal - It is the process of

appraising the performance of an individual in the
organisation and developing the potential for
development.
b. Training – It is the process of imparting the technical
and operating skills and knowledge for the
betterment of performance.
c. Career Planning and Development
d. Transfer – process of planning employees in the
same level jobs where they can be utilized more
effectively in consistence with their potentialities,
 Functions of HRM
B) Operating function
3. Compensation
It is the process of providing adequate, equitable
and fair remuneration to the employees. It includes
job evaluation, wage and salary administration,
incentives, bonus, fringe benefits, social security etc.

• Job Evaluation
• Wage and Salary administration
• Incentives
• Bonus
• Fringe benefits
• Social security measures
 Functions of HRM
B) Operating function
3. Compensation
It is the process of providing adequate, equitable
and fair remuneration to the employees. It includes
job evaluation, wage and salary administration,
incentives, bonus, fringe benefits, social security etc.

• Job Evaluation
• Wage and Salary administration
• Incentives
• Bonus
• Fringe benefits
• Social security measures
 Functions of HRM
B) Operating function
3. Compensation
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 is the process of determining relative worth of
jobs.
• Select suitable job evaluation techniques.
• Classify jobs into various categories.
• Determining relative value of jobs in various
categories.
 Functions of HRM
B) Operating function
3. Compensation
Wage and Salary Administration:

This is the process of developing and operating a

suitable wage and salary programme.

It covers:
• Conducting wage and salary survey.
• Determining wage and salary rates based on
various factors.
• Administering wage and salary programmes.
• Evaluating its effectiveness.
 Functions of HRM
B) Operating function
3. Compensation
Incentives:

It is the process of formulating, administering and

reviewing the schemes of financial incentives in
addition to regular payment of wages and salary.

It includes:
• Formulating incentive payment schemes.
• Helping functional managers on the operation.
• Review them periodically to evaluate
effectiveness.
 Functions of HRM
B) Operating function
3. Compensation
Bonus:
It includes payment of statutory bonus according to the Payment of
Bonus Act, 1965 and its latest amendments.
Fringe Benefits:
These are the various benefits at the fringe of the wage. Management
provides these benefits to motivate the employees and to meet their
life’s contingencies.
These benefits include:
• Disablement benefit.
• Housing facilities.
• Educational facilities to employees and children.
• Canteen facilities.
• Recreational facilities.
• Conveyance facilities.
• Credit facilities.
• Legal clinics.
• Medical, maternity and welfare facilities.
• Company stores.
 Functions of HRM
B) Operating function
3. Compensation

Social Security Measures:

Managements provide social security to their employees in

addition to the fringe benefits.

These measures include:

• Workmen’s compensation to those workers (or their
dependents) who involve in accidents.
• Maternity benefits to women employees.
• Sickness benefits and medical benefits.
• Disablement benefits/allowance.
• Dependent benefits.
• Retirement benefits like provident fund, pension, gratuity
etc.
 Functions of HRM
B) Operating function
3. Compensation

Social Security Measures:

Managements provide social security to their employees in

addition to the fringe benefits.

These measures include:

• Workmen’s compensation to those workers (or their
dependents) who involve in accidents.
• Maternity benefits to women employees.
• Sickness benefits and medical benefits.
• Disablement benefits/allowance.
• Dependent benefits.
• Retirement benefits like provident fund, pension, gratuity
etc.
 Functions of HRM
B) Operating function
4. Human Relations
It is the process of interaction among human beings.

• Understanding and applying the models of

perception, personality, learning, intra and inter-
group relations
• Motivating the employees
• Boosting employee morale
• Developing communication skills, developing
leadership skills
• Redressing employee grievances
• Handling disciplinary cases
• Providing comfortable working environment. etc..
 Functions of HRM
B) Operating function
5. Industrial Relations

Industrial relations refer to the study of relations

among employees, employer, government and trade
unions. It includes:
• Indian Labour Market
• Trade Unionism
• Collective bargaining
• Industrial Conflicts
• Worker’s participation in Management
• Quality Circles
 Functions of HRM
6. Recent Trends in HRM

Recent trends in HRM include:

• Quality of life
• Total quality in human resources
• HR Accounting, audit and research
• Recent technique of HRM
 Recent Trends in HRM

Human resource accounting is the

process of identifying and reporting
investments made in the human
resources of an organization that are
presently unaccounted for in the
conventional accounting practices. It is
an extension of standard
 Roles of HR Manager

• HR manager is responsible for efficient

management and utilization of human
resources in the process of achieving
organisational objectives, goals of
individual employees and as a group.

• HR mangers offers suggestions and advice

to all the managers in the organisation.
 Roles of HR Manager
Human Resources Manager plays a vital role in the
modern organisation.

He plays various strategic roles at different levels in the

organisation.

The roles of the HR Manager include:

1. roles of conscience,
2. a counsellor,
3. a mediator,
4. a company spokesman,
5. a problem solver and
6. a change agent.
 Roles of HR Manager
(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 Counsellor:

Employees who are dissatisfied with the present job
approach the HR manager for counselling. In addition,
employees facing various problems like marital, health, children
education/marriage, mental, physical and career also approach
the HR managers. The HR Manager counsels and consults the
employees and offers suggestions to solve/overcome the
problems.

(iii) The Mediator:

As a mediator, the HR manager plays the role of a
peace-maker. He settles the disputes between employees and
 Roles of HR Manager
(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 human resources
management and overall long range
organisational planning.

(vi) The Change Agent:

He acts as a change agent and
 HR Manager Duties & responsibilities
1. Preparing & updating job analysis, job description, job
specification
2. Advising line managers on recent trends
3. Preparing human resource plan
4. Advice on multi-skilling and downsizing
5. Searching for prospective employees
6. Identifying employment agencies
7. Conducting selection tests and interviews
8. Arrangement of induction programmes
9. Identifying and conducting training needs
10. Fixing wages and salaries
11. Developing motivation techniques
12. Conducting quality improvement programmes
13. Preventing industrial disputes
14. Developing promotion, transfer and demotion plan
15. Preparing and implementing human resource strategies
16. Maintaining good human relations.
HR Manager - Duties & responsibilities
Roles of HR Manager (Duties & responsibilities)

A job is a collection of tasks, duties and

responsibilities necessary to be performed to
achieve organisational objectives.

Job Analysis may be defined as a systematic

investigation of tasks, duties, responsibilities
necessary to do a job.

Task – Identifiable work for a specific action

Duties – Sequence of tasks to be performed
Responsibilities – Obligation to perform tasks and
duties
 HR Manager (Duties & responsibilities)

Information provided by Job analysis:

• Job Identification – Job Title, code no.
• Characteristics of the job – Location, Physical
setting
• What a typical worker does?
• What materials and machines a worker uses?
• How the job is performed?
• Required personal attributes?
• Job relations – relation with superior, junior, co-
worker,
counsellor
Sources of Information for Job Analysis
Employees performing the job, supervisors &
 HR Manager (Duties & responsibilities)

Outcome of Job Analysis

• Job Description
• Job Specification

Job Description

It is a written statement of what a job holder

expected to do, how it is done, under what
conditions and why it is done.

It is a descriptive statement with written record

of tasks, duties and responsibilities of particular
Roles of HR Manager (Duties & responsibilities)

Job Specification

It translates the Job Description into terms of

human qualities and qualifications which are
required for successful performance of a job.
They relate to:
Physical Characteristics – Physique, health, strength
Demographic - Age, sex, education, experience
Psychological - Aptitude, judgment, analytical ability
Personal Traits – Appearance, manners, voice,
leadership
Social Characteristics – Views towards society,
 Human Resource Planning
HRP is a systematic process of
determining the future manpower
requirements of an organisation and the
means for meeting those requirements
in order to carry out the integrated plan
of the organisation.

It involves estimating the size and make-

up of the future workforce.
 Human Resource Planning
It is an integral part of corporate planning and
budgeting procedures since human resource costs
and forecasts both affect and are affected by long-
term corporate plans.

3 types of forecasts are required

• Personnel needs
• Supply of candidates from within the
organisation
• Supply of candidates from outside the
organisation
 Importance of Human Resource
1. Planning
It helps in identifying the right type of people who will
contribute towards achieving organisational
objectives.

2. Helps the organisation to implement its strategies

effectively without risks and uncertainties. It
provides human resource supply from various
sources and enables the organisation to recruit the
prospective employees from the most suitable
sources.

3. Changing business processes & consequent strategic

 Importance of Human Resource
4. Planningto cope with changes
HRP enables the organisation
in the competitive forces, market, technology and
government regulations. Such changes generate
change in the job content, skill demand, number and
type of persons.

5. Demographic changes like changing profile of the

workforce in terms of age, gender, education etc. and
changes in government policies in respect of
reservations, child labour, working conditions etc.
affect the demand for and supply for human
resources.
 Importance of Human Resource
Planning
6. Changes in labor laws, pressure from trade unions,
and political parties influence the demand for and
supply of human resources.

7. It is also required to identify areas of surplus or

shortage of personnel across units or departments.
 Other benefits of HRP

1. Verifies the corporate plan of the organisation

2. It offsets uncertainty and changes to the maximum
extent possible and enables the organisation to have
right men at the right time and in the right place.
3. Provides scope for advancement and development
of employees.
4. Helps to anticipate the cost of salary enhancement,
better benefits.
5. Helps to take steps to improve human resources
contributions in the form of increased productivity,
sales and turnover.
 Other benefits of HRP

6. Facilitates control of all functions, operations,

contributions and cost of human resources

7. To plan for facilities, working conditions, and the

volume of fringe benefits like canteen, schools,
hospitals, conveyance, child care centres, company
stores etc.

8. It causes the development of various sources of

human resources to meet the organisational needs.
Process of HRP /Steps in HRP
 Process of HRP /Steps in HRP
1. Analysing the corporate and unit level strategies and
policies

HRP process will be dictated by the following organisational policies.

• Internal hiring or external hiring

• Training and development plans
• Union constraints
• Job enrichment issues
• Rightsizing organisation
• Automation needs
• Continuous availability of adaptive and flexible workforce
 Process of HRP /Steps in HRP
2. Demand forecasting
Process of estimating future quantity and quality of people required. The basis should be
long term corporate plans. The demand forecasting should be based on following
factors:
Internal factors:
• Production levels
• New products and services
• Organisational structure
• Employee separation
• Budget constraints
External factors:
• Economic climate
• laws and regulatory bodies
• Technology changes
• Social factors
• Legal requirements with regards to reservations

Most important aspects of demand forecasting is the forecasting of the quality of human
resources (Skills, knowledge, and values).
Forecasting methods includes managerial judgment, statistical techniques, work study
techniques etc.
 Process of HRP /Steps in HRP
3. Supply forecasting
This process measures the no. of people likely to be available from within and outside
the organisation after making allowance for absenteeism, internal movements and
promotions, wastages, changes in hours and other conditions of work:
 Process of HRP /Steps in HRP
3. Supply forecasting
 Process of HRP /Steps in HRP
4. Estimating the Net Human Resource Requirements

Net Human Resource Requirements in terms of number and components are

to be determined in relation to the overall human resource requirements for
future dates and supply forecast for that date.

Net Human Resource Requirements =

overall human resource requirements - future supply of human resources

5. Action plan for Redeployment, Redundancy / Retrenchment

a) Reduced work hours – Each worker works less hours and receives less
pay, so jobs are saved.

b) Work sharing – Employees share jobs or two employees work half time
each. It solves problem of retrenchment.
 Process of HRP /Steps in HRP

5. Action plan for Redeployment, Redundancy / Retrenchment

c) Layoffs: They can be permanent or temporary layoff.

d) Leave of absence without pay: Helps the company to cut labour cost

e) Voluntary / earlier retirement (VRS) / golden Handshake –

Management provides cash rewards to those employees who opt for
VRS in addition to normal retirement benefit.

f) Attrition – It is a process whereby the incumbents leave their jobs for various
reasons those jobs will be kept vacant or unfilled.

g) Compulsory Retirement / Iron Handshake (CRS) – Surplus employees are

identified and discharged from service

h) Creation of Ad-hoc Projects: - provide employment to the surplus staff for a

short span of time.
 Process of HRP /Steps in HRP
6. Forecast future supply from all sources

If deficit is estimated in any dept. / entire orgn., the management has to

forecast future supply – various sources – internal sources , comparable
organisation, educational, and training instructions, employment exchange,
labour market etc.

7. Action Plan for outsourcing, recruitment etc.

internal sources – plan for promotion, transfer, training & devt.

external sources – plan for outsourcing, recruitment & selection

• Recruitment & Selection plan

• Training & Development plan
• The productivity plan

8. Modify the organisational plan and strategies

External source is estimated to be inadequate than the requirements, the
manpower planner has to suggest the mgt. to alter of modify the
organisational plan.
 Meaning & Definition of Recruitment

“Recruitment is the process of finding and attracting

capable applicants for a job to create a pool from which
selection is to be made of the most suitable candidates
is to be made .”

The result is a pool of applicants from which selections

for new employees are made.

Edwin B. Flippo - “The process of searching for

prospective employees and stimulating them to apply
for the job”.
Internal methods are sources within organisational pursuits which
external methods are sources outside organisational pursuits.

1. A. Internal methods of Recruitment:

a) Present Permanent employees – consider for higher level
jobs due to availability of the most suitable candidates for
jobs relatively or equally to the external source, to meet trade
union demands, due to policy of orgn. to motivate the
employees.

b) Present temporary / casual employees

Fill the vacancy – trade union pressure – in order to motivate

c) Retrenched / retired employees

Re-employee a token of royalty – postpone some
interpersonal conflicts for promotion - retrenched any
employee due to lack of work, can re-employee them as a part
of their obligatiion/pressure from trade union.
1. A. Internal methods of Recruitment:
d) Dependent or disabled, deceased
- sense of loyalty among the employees / family members
and to build images orgn. Provides employement .

B. External methods of Recruitment:

a) Campus recruitment:
IIT – regional engg. Colleges – private sector- promising
students get job security immediately after securing degree

b) Private employment agencies / consultants

Orgn. Depend on this source for highly specialised /
executive positions. Consultant companies function on behalf
of client companies – high cost – lead ineffectiveness in
performance also.
c) Public employment exchange
Govt. provide information about vacancies – Employmen
exchange Act 1959 – makes obligatory for public & private
sector enterprise in India to fill certain vacancies
 Meaning & Definition of Recruitment

B. External methods of Recruitment:

d) Professional organisations
maintain complete biodata of members and provide to orgn.
– also act as exchange between members & recruiting firms –
more useful to recruit experienced & professional employees.

e) Data banks
Collect CV from different sources – use as and when
required.

f) Casual applicants
candidates sometimes apply casually for job through mail /
direct.

g) Similar organisation
potential candidate from similar orgn.
2. Modern methods of Recruitment

A. Internal methods
a) Employee referrals - Employee refer their friends / relatives

B. External methods
a) Walk-in – direct recruitment process – asked to attend
interviews directly – specified time and place

b) Consult-in - Company approach potential job seekers

personally – select through selection process.

c) Head hunting – Orgn. requesting professional consultancy

firms to search for the best candidates in the industry – used
for senior executive positions.
B. External methods

d) Body shopping

Professional organisations & hi-tech training institues

develop a pool of human resources for possible employment.
Sometimes these institutes themselves approach prospective
employees to place their human resources. These institutions
are called body shoppers and their activities, body shopping.

These source is used in technology specific organisations.

This is also known as employee leasing activity. The leasing
firms employ people and lease them for use to various
companies for commission.
B. External methods
e) Mergers and acquisitions:
Business alliances like acquisitions, mergers and take-overs
help in getting human resources – companies also have
alliances in sharing their human resources on ad-hoc basis.
f) Outsourcing
Some organisations even develop a human resource pool by
employing candidates for themselves. – they do not utilize the
human resources, instead they supply HRs to various
companies based on their needs on temporary / adhoc basis.-
commission basis – This arrangement is called ‘Outsourcing’.
g) Tele recruitment
Companies like marketing / BPO prefer
h) E-recruitment
Internet – popular source of advertising – post jobs in their
website – other website charge fee – Ex. www.naukri.com,
www.monster.com, etc.
 SELECTION
Meaning

Important – closely related to recruitment – concerned with

processing individuals to place them in job – Selection is next
to recruitment.

“Right man at the right job” - basic principle in selection.

Meaning – It means a process by which the qualified personnel

can be chosen from the applicants who have offered their
services to the organisation for employment. This selection
process is negative function because it attempts to eliminate
applicants, leaving the best to be selected.
 SELECTION
Definition

According to Dale A Yoder,

“ Selection is the process in which candidates for employment

are divided into two classes – those who are to be offered
employment and those who are not”. In short, selection is the
process of choosing a person suitable for the job out of
several positions.

According to Koontz and O Donnel,

“ Selection is choosing from among candidates from within

organisation or from outside the most suitable person for the
current or future positions.”
 SELECTION
Selection Procedure

Selection procedure is not a single act but is essentially a series

of methods or stages by which different types of information
can be secured through various selection techniques. At each
step, facts may come to light which are useful for comparison
with the job requirements and employee specifications.
 SELECTION
Steps / Procedure for selection

1) Job Analysis
2) Job description
3) Application form
4) Initial interview – ‘at the gate’ candidate – basic information
with a view to identifying the obvious misfits or unqualified.
5) Screening application form
6) Written test
7) Preliminary interview (assess applicants suitability for the job
– done by HR assistant – short time – known as stand-up
interview)
8) Business games (select mgt. trainees, executive trainees, etc.)
9) Tests (psychological test, behavioural test)
10) Final interviewing (assess specific requirements of the job)
11) Physical examination
12) Reference Checks
 Selection Tests
Meaning:
Tests are used to candidates for an organisation and place or
assign a person to a job for which he is suitable.
Uses of Tests in Selection
• Tests help managers in evaluating a candidate’s suitability to
the job.
• Measure the nature and degree of a candidate, psychological
potentialities, based on psychological factors, essential to
perform a given job situation.
• Help in judging the ability of a candidate in a given job situation.
• Help in ranking the candidates applied for a job.
• Valuable in determining subsequent success on the job,
candidates weaknesses
• Useful when other selection devices of selection fail in
providing valuable information
• Examine a candidate’s intelligence, mechanical aptitude,
clerical aptitude, job knowledge, interest in the job, individual
and group decision making skills and personality.
 Types of Test

Job seekers who pass the screening and preliminary

interview are called for tests.

Types of test
1. Ability Test
2. Aptitude Test
3. Intelligence Test
4. Interest Test
5. Personality Test
6. Projective Test
7. General Knowledge Test
8. Perception Tests
9. Graphology Test
10. Polygraph Test
11. Medical Test
 Types of Test
1.Ability Test
• How well an individual can perform tasks related to the
job
• Also called ‘Achievement Test’
• For secretarial job
• Trade Test – common type of achievement test -
asbestos worker, punch-press operators, electricians
and machinists.
2.
• Aptitude Test
Typing / dictation test for stenographic position.
• Measure the whether an individual has the capacity or
latent ability to learn a given job if given adequate
training.
• Helps to determine a person’s potential to learn in a
given area.
• Ex: GMAT – admission to graduate business school pgm.
• Clerical, numerical, mechanical aptitudes, motor
coordination, finger dexterity and manual dexterity –
 Types of Test

3. Intelligence test
• Helps to evaluate the traits of intelligence.
• Mental ability, presence of mind, numerical ability,
memory
• Standardised test in the industry
• Judge numerical skill, reasoning memory and other
abilities
4. Interest Test
• To find out the likes and dislikes of candidates towards
occupations, hobbies etc.
• Indicate which occupations are more in line with a
person’s interest.
• Measure an individual’s activity preferences
• Particularly useful for students considering many
careers /employees deciding upon career changes.
 Types of Test

5. Personality Test

Similar to interest test as they also involve a serious

problem of obtaining an honest answer. It is conducted to
judge maturity, social or interpersonal skills, behaviour
under stress and strain etc.
6. Projective Test

This test requires interpretation of problems or situations.

– Photos/pictures can be shown to the candidates and they
are asked to give their views and opinions about the picture.

7. General Knowledge Test

General awareness of the candidates in the field of sports,

politics, world affairs & current affairs
 Types of Test

8. Perception Test

It can be conducted to find out beliefs, attitudes, and

mental sharpness.
9. Graphology Test

Analyse the handwriting of the individual. It can suggest

the degree of energy, inhibition, and spontaneity, as well as
disclose the idiosyncrasies and elements of balance and
control.
10. Polygraph Test

It is a lie detector, which is designed to ensure accuracy

of the information given in the applications. Those highly
vulnerable to theft such as departmental stores, banks,
treasury offices, and jewellery stores may find polygraph tests
useful.
 Types of Test

11.. Medical Test

It reveals physical fitness of the candidate. It helps

measure and monitor a candidate’s physical resilience
upon exposure to hazardous chemicals.
 Types of Interview

A.Classification according to structure

• Unstructure or non-directive interview - No

set format to follow, so interview can take
various directions.
• Structured or direct interview – questions
and acceptable responses are specified
well in advance
 Types of Interview
B. Classification according to purpose of
the interview
• Stress Interview - how he behave in a stressful
situation ie. Whether he loses his temper, gets
confused, or frightened or feels frustrated. It is
used for jobs wherein emotional balance or
resistance to stress is required.
• Appraisal Interview - a discussion between the
supervisor and employer discussing the
employee’s rating and possible outcomes
pertaining to appraisal and promotion.
• Exit Interview – when an employee leaves
organisation, it is often conducted to know the
grievance and to see if there is a solution for that.
 Types of Interview
C. Classification according to the interview’s
content
• Situational Interview - Individual’s ability to
project what his/her behaviour will be in a given
situation.

• Job related Interview - what the applicant’s on-

the-job performance would be.

• Behavioural Interview – Applicants are asked

how they have behaved in certain situations in
the past, how they will behave in future in the
specific situations.
 Meaning and Definition of Placement

Placement means offering of the job to the finally

selected candidate. Once the employee is selected he
should be placed in a suitable job.

According to Pigors and Myres, placement may be

defined as “the determination of the job to which an
accepted candidate is to be assigned, and his
assignment to that job. It is matching of what the
supervisor has reason to think he can do with the job
demands (job requirements); it is matching of what he
imposes(in strain, working condition) and what offers is
the form of pay roll, companionship with other
promotional possibilities etc.”
A proper placement reduced
• the employee turnover,
• absenteeism and
• accident rate and improves the morale.
Placement is not an easy process.
It is very difficult for a new employee who is quite
unknown to the job and environment. For this reason, the
employee is generally put on a probation period ranging
from 1 to 2 years.

At the end of the probation period, if the employee

shows a good performance, he is confirmed as a regular
employee of the organization. Thus, the probation period
or trial period is a transition period at the end of which
management has to take decision whether the employee
Problems Involved in Placement

1) Employee Expectations:
If the employee expects high salary, independent
and challenging and the job offers low salary
dependent and routine work, the employee finds
himself misfit to the job.

2) Job Expectations / Description:

Sometimes the expectations from the employee
are more than the employee’s ability or skills. Then
the HR manager finds the mismatch between the
job and employee.

.
Problems Involved in Placement
3) Change in Technology:
Technological changes bring radical changes in
the job description and specification. These
changes result in the mismatch in the employee
and the job.
4) Changes in the organization structure:
Business grand strategies like mergers,
acquisitions, downsizing, etc., result in
organizational structure and there by changes in
jobs. These changes result in the misfit between
employee and job.
5) Social and Psychological Factors:
The social and psychological factors involved in
team work or group formation sometimes results
 Meaning of Training and Induction
• Every organization needs the services of trained persons for
performing the activities in a systematic way.

• The rapid growth of technological development makes the

knowledge of the employee obsolete.

• They require constant training to cope with needs of jobs.

• Every organization has to arrange some kind of training for

preparing employees for jobs and also keeping them with the
latest technological advancement.

• When a new employee joins an organization, he should be

welcomed as a new member of the organization and must be
helped to get acquainted and adjusted with his fellow
employee and work environment.
 Definition of Induction and Training
Meaning
Induction may be viewed as the socializing
process by which the organization seeks to make
an individual for the achievement of common
objectives.

Definition

Edwin. B. Flippo - “Induction is the welcoming

process to make the new employee feel at home
and generate in him a feeling of belongingness to
the organization”.
 Definition of Induction and Training
• Training is the act of increasing the knowledge and
skill of an employee for doing a particular job.

• Training is the process of imparting necessary and

immediate skills required to perform a present job.
Through training the trainee acquires new skills,
technical knowledge and problem solving ability.

Edwin. B. Flippo - “Training is the act of increasing

the knowledge and skill of an employee for doing a
particular job”
 Objectives of Induction

Objectives
• To promote a feeling of belonging and loyalty to the
organization.
• To build up the new employees’ confidence in the
organization and in himself so that he may become an
efficient employee.
• To bring an agreement between the organization goals
and personal goals.
• To give the new employees information regarding
company its structures product, policies rules and
regulations.
• To introduce the new worker to the supervisor.
• To lessen or reduce the cost of replacing the worker in
the early impressionable period because of lack of
information or incorrect Business impression.
 Need for Training
The need for training arises due to the following
reasons:
1. Increasing Productivity:
Increase their level of performance on their present
job assignment. - Increased human performance
often directly leads to increased operational
productivity and increased company profit. - most
efficient and effective ways of performing their jobs.

2. Development of methods to test the competence of

the managers: In the organizations it becomes
necessary to device methods to measure the
managerial abilities of the people on higher post and
also measure the abilities of a persons selected for a
 Need for Training
3. Improving Quality:
Better informed workers are less likely to make
operational mistakes.
4. Helping a Company fulfill its Future Personnel Needs:

- make less drastic manpower changes and adjustments

in the event of sudden personnel alternations.

- When the need arises, organisational vacancies can

more easily be staffed from internal
 Need for Training
5. Improving Organisational Climate :
• Production and product quality may improve;
• financial incentives may then be increased,
• internal promotions become stressed,
• less supervisory pressures ensue and base pay rate
increases result.
6. Improving Health and Safety:
• help prevent industrial accidents.
• more stable mental attitudes on the part of
employees. Managerial mental state would also
improve
7. Obsolescence Prevention:
• help to prevent manpower obsolescence due to age,
temperament or motivation, or the inability of a
 Need for Training
8. Personal Growth : Employees on a personal basis gain
individually from their exposure to educational experiences.- a
wider awareness,

9. To Increase the effectiveness of the organization:

To work toward utilizing managerial abilities in a better way, help
the manager to perform their functions effectively and inject
team spirit in the manager.
10. Health and safety measures:
identifies and teaches the different risk involved in their job, the
different problems that can arise and how to prevent such
problems.

11. Bridging the gap between planning and implementation:

Plans expect people to achieve certain targets within certain
time limit with certain quality, accurate and perfect. Training
Benefits of Training
Benefits to the Organization
• improved profitability - positive attitudes toward profits
• Improves the job knowledge and skills at all levels
• Improves the morale of the workforce.
• Helps people identify with organizational goals.
• Helps create a better corporate image.
• Improves the relationship between boss & subordinate.
• Aids in organizational development.
• Learns from the trainee.
• Aids in understanding & carrying out orgl. policies.
• Provides information for future needs in all areas
• Effective in decision-making and problem solving.
• leadership skill, motivation, loyalty, better attitudes
• Develops a sense of responsibility
• Improves labour-management relations.
• Reduces outside consulting costs
Benefits to the Individual
• making better decisions and effective problem solving.
• motivational variables of recognition, achievement, growth,
responsibility and advancement are internalized and
operationalized.
• encouraging and achieving self-development and self-
confidence.
• Helps a person handle stress, tension, frustration and conflict.
• improving leadership knowledge, communication skills and
attitudes.
• Increases job satisfaction and recognition.
• Moves a person towards personal goals
• Satisfies personal needs of the trainer (and trainee)
• Provides the trainee an avenue for growth
• Develops a sense of growth in learning.
• Helps a person develop speaking, listening, writing skills
• Helps eliminate fear in attempting new tasks.
Benefits in Personnel and Human Relations

• Improves communication between groups and

individuals.
• orientation for new employees, taking new jobs through
transfer or promotion.
• information on equal opportunity and affirmative action.
• information on governmental laws & administrative
policies.
• Improves inter-personal skills.
• Makes organization policies, rules and regulations
viable.
• Improves morale
• Builds cohesiveness in groups.
• climate for learning, growth, and co-ordination.
Methods of Training
Training methods are generally classified by the location of
instruction.
A) On the job training:

There are various methods of the job training

1. Job Rotation: the trainee is deployed from one job to another.

within the department or within the organization. The objective
is to make the trainee aware of the importance of all other jobs.

2. Observation: the trainee is asked to learn the job by

observing people performing the same kind of job.

3. Lateral posting: a trainee is either transferred or promoted to

learn the job and to find out whether he is eligible for higher jobs.

4. Attachment: also called as understudy. the trainee is made

to assist his superior and learn by observing, by guidance and by
helping the superior.
5. Junior Boards and Committee: -are associations deliberately
formal in the organization. The activities include discussion on
various topics and finding solutions to the problems. The
trainee is made a member, to participate in the activities.
exposes the trainee to various problems faced by others, gives
idea for solutions for the problem.

6. Coaching: a superior /expert demonstrates, gives

suggestions, ideas to the trainee to perform his job - one-to-
one training. identifying the weak areas and tries to focus on
them. - benefit of transferring theory learning to practice. The
biggest problem is that it perpetrates the existing practices and
styles

7. Mentoring: The focus is on the development of attitude for

managerial employees. done by a senior inside person. It is also
one-to- one interaction, like coaching.
B) Off the job training:
It is a method which takes the trainee away from the working environment f

1. Role Playing: given a role to play where he has to exact the role with the
help of his own written script.
Ex. role of the managing directors the trainee has to assume that he is the MD
and act and give his solution to problem as a MD.

2. Case study: a case is prepared based on business. The trainee is required to

study the case identify the problem, analyze the situation, give interceptions,
conclusion and recommendations. - different case studies - own case studies
and also tell others, the solutions are given by them to the problem in the case
study.

3. Management Games: a game is built around the model of a business

situation. The trainees are divided into different teams, each team
representing the management of competing company,. A situation (launching
of a new product / selection of an investment portfolio.
Some examples of management games could include:
• Computer simulations of business situations that managers ´play´.
• Board games that simulate a business situation.
• Games surrounding thought and creativity - to help managers find creative
4. In Basket exercise: put into a new job & he is presented with
an in-basket (complaint or suggestions box) containing no. of
letters, complaints, notes suggestion, etc. - given a short period
of time in to give his solutions to the complaints and
suggestions in the in-basket. His reactions and responses are
noted down and at the end of the session all the trainees
exposed to the in-basket are asked to conduct a discussion.

5. Lecture & Special courses: the trainee is asked to attend

lectures, special courses and programs given by experts from
within the organizations or from a person outside the
organization.

6. Conference & Seminars: sends the trainee to attend seminars

and conferences where people from the same field assemble
and talk on common topics.
 C) Vestibule training:

It is combination of on-the job and off the job. The workers

are trained in a prototype environment on specific jobs in a
special part of the plant. It is suitable when the
organization divides to train large number of employees.

An attempt is made to create working condition similar to

the actual workshop conditions. After training workers in
such condition, the trained workers may be put on similar
jobs in the actual workshop. - best methods to work and to
get rid of initial nervousness.
During the Second World War II, this method was used to
train a large number of workers in a short period of time. -
used as a preliminary to on-the job training.
Eg: The trainee will be taken away from the working
environment an artificial work environment will be created
to conduct the training program .
 Methods of Separation

Separation usually means discontinuation of

service with the organization.

It means“an employee may be separated from the

pay roll of the company due to circumstances
either on the part of employee or on the part of
organization where an employee is dismissed or
suspended or retrenched or laid off.”
1.Retirement
Retirement is termination of service of an
employee on reaching the age of superannuation.

2. Resignation
Resignations are usually put in voluntarily by the
employees due to various reasons like physical
disability, on grounds of health, better
opportunities elsewhere or mal adjustment with
company policy and officers, or for reasons of
marriage; or they may be compulsory when an
employee is asked to put in his resignation if he
wants to avoid termination of his service on the
ground of gross negligence of duty on his part, or
some serious charge against him.
 3. Discharge and Dismissal
A discharge involves permanent separation of an employee from
the pay-roll for violation of company rules or for inadequate
performance.
A discharge becomes necessary :
i. Volume of business does not justify the continuing
employment of the persons involved;
ii. fails to work according to the requirements of the job / no
suitable place where he can be transferred
iii. violation of a basic policy often involving the safety of
others, the morale and discipline of a group

Dismissal is termination of service of an employee as a punitive

measure. This may occur on account of unsatisfactory
performance of misconduct. Persistent failure on the part of
employee to perform up to the expectations or specified standard
is considered as unsatisfactory performance. Willful violation of
rules and regulation by the employee is treated as misconduct.
 4. Suspension
Suspension is a serious punishment which is
awarded only after a proper enquiry has been
conducted. For reasons of discipline, a work man
may be suspended without prejudice during the
course of an enquiry. During suspension, the
employee receives a subsistence allowance.

5. Retrenchment
It means a permanent termination of the services
of services of an employee for an economic
reason in a going concern. The Industrial Disputes
Act, 1947, define retrenchment as thetermination
“
by the employer of the services of workman for
ny reason.”
 6. lay-off

A lay-off refers to an indefinite separation of the

employee from the pay-roll due to factors beyond the
ontrol of the employer ; - temporary or permanent
removal from the pay-roll - purpose of lay-off is to
reduce the financial burden.

According to section 2 of the Industrial Disputes Act, a

lay-off has been defined as“the failure, refusal or
nability of an employer, on account of shortage of coal,
ower of raw materials, on the accumulations of
ocks or breakdown of machinery for any reason to
e employment to a workman whose name is borne
he muster roll of his individual establishment and