hrm-fullbook

8/19/2019 HRM-FullBook

1/184

Human Resource Management

Editors

Dr. Pushkar Dubey

Dr. Ashok Yakkaldevi

LAXMI BOOK PUBLICATION

258/34, RaviwarPeth,

Solapur-413005

Cell: +91 9595359435

FIRST EDITION


2/184

Rs: 250 /-

“Human Resource Management”

Dr. Pushkar Dubey Dr. Ashok Yakkaldevi

© 2015 by Laxmi Book Publication, Solapur

All rights reserved. No part of this book may be reproduced in any

form, by mimeograph or any other means, without permission in

writing from the publisher.

ISBN- 978-1-312-81750-0

Published by,

Laxmi Book Publication,

258/34, Raviwar Peth,

Solapur, Maharashtra, India.

Contact No. : +91 9595 359 435Website :http://www.isrj.org

Email ID :[email protected]

http://www.isrj.org/http://www.isrj.org/http://www.isrj.org/mailto:[email protected]:[email protected]:[email protected]://www.isrj.org/


3/184

Preface

With modernization countries across the globe are coming

together. Sophisticated tools and machineries’ have made the lives of

millions easier. Products in the form of goods and services are

continuously changing their form to enhance their benefit and provide

better customer satisfaction. All these have only been possible due to

human effort. ‘Human’ factor is therefore, the most imperative and

significant factor for production. ‘Human Resource Management’ is an

unavoidable issue in the modern day globalization. Unlike other

resources which are viewed valuable, human resources are the most

valuable than all the other resources. Optimum utilization and

appropriate maintenance are the key issues behind creation of

competent workforce. Issues related to human resource like

recruitment, selection, orientation, training and development,

performance appraisal, potential assessment, Industrial relation,

grievance management, trade union are essential to understand and

develop human resource in order to increase productivity of an

organization. The book is essentially designed to cover all these issues

pertaining to understanding of human resource. The content has the

coverage which is useful for the academicians and the practitioners’ at

large. It covers the most of syllabus taught in HRM in Indian Universities.

I hope that I will act as a useful reference and guide to all the readers.

The entire work has been presented in ten different chapters.

Effort has been made to present each topic in simple and

understandable means for the readers. Topic under coverage includes

Introduction to Human Resource Management, Human Resource

planning and Job analysis, Selection process, Induction, Training and

Development, Performance appraisal, exit policy and potential


4/184

assessment, Job evaluation, Wage administration, Industrial Relations

and Human Resource Development.

Suggestions, reviews, comments and observations from the readers are

most welcome.

Dr. Pushkar Dubey


5/184

Acknowledgement

I would like to put on record my heartfelt gratitude to my

beloved teacher Professor (Dr.) Sudhirkumar Sharma, Professor of

Commerce, Government Arts and Commerce College, Bilaspur, for

contributing his valuable work in the completion of this book.

I am greatly indebted to my favourite teacher Dr. N. Surenthiran,

Manager (HR), NTPC Limited, Kudai, for his contribution,

encouragement, timely advice and inspiration made me to complete this

book.

I would take this opportunity to record my deep thanks to my

beloved colleague Sri Sushil Kumar Panigrahi, Assistant Professor,

Management for his suggestions and contribution in bringing this

valuable book in the short span of time. I also express my gratefulness to

my dear friend Sri. Abhishek Kumar Pathak, Asst. Professor, Department

of Management Studies, CVRU for his thoughtful participation in this

work.My key note of thanks to Sri Samir Kumar Purohit, Senior Lecturer,

Sundergarh Engineering College for his dedicated effort in completion of

the project. I am also thankful to Mrs. ArchanaAgrawal, Asst. Professor,

Department of Management Studies, CVRU for her appreciable work

towards this valuable project.

Last but not the least; I am gratified towards Dr. Ashok

Yakkaldevi, the founder of Laxmi book publication. He is the initiator

behind all this thoughtful work. He is the creator for the said work, who

has brought all the valuable resources under one roof. I acknowledge

him for providing me this precious opportunity of becoming editor of the

book. No language can express his immense help. Indeed I owe a deep

sense of gratitude in remembrance of his initiation and sacrifice for this

entire book.


6/184

I am extremely fortunate having blessed with the benevolence of

my mother, Smt. RashmiDubey and the great almighty goddess

MaaDurga. Both empowered me with lots of confidence, motivation and

enlightened my journey by clearing every hurdle which came in the way.

Dr. Pushkar Dubey


7/184

About Editor

Dr. Pushkar Dubey[MA (Economics); MBA (Gold

Medalist); UGC-NET (Management); PhD.] is

working as Assistant Professor in Department of

Management in PadmashreeKrutarthaAcharya

College of Engineering (PKACE), Bargarh, Odisha.

He has seven years of teaching experience

including three years of experience in the field of

Research. The author has a special inclination

towards academic research. The author has published over 20 research

papers in Journals of National and International repute. The author also

serves as a member to board of editors in many reputed Journals. He

has membership in many professional bodies across India.

Dr. Dubey is post graduate in Economics and has completed his

Master in Business Administration from Sambalpur University. He is a

Gold Medalist in MBA with specialization in Marketing and Human

Resource. He has also qualified UGC-NET (Management). Recently in the

year 2014 he has been awarded with prestigious doctorate (PhD.) degree

from Dr. C.V. Raman University, Chhattisgarh.

The author loves reading, writing and exploring concepts and

ideas to develop new insights. He has specialised skills on research and isan active learner of various research tools. He has gained competence in

solving analytical problems on research methodology through statistical

software like SPSS and AMOS. He is also a PhD. Supervisor to Indian

Universities. The author strongly believes learning, as a vital tool for

Knowledge up gradation and is always active to accumulate new

thoughts and ideas.


8/184

About Editor

Dr. Ashok Yakkaldevi(Ph.D.) is double post graduate

(English & Sociology) major and Assistant Professor in

Solapur, (Maharashtra), India. He is founder member

of India's Second and World's leading research journal

indexing service named “Directory of Research

Journals Indexing” (DRJI) and many more online

research related projects also he is founder member

of Online Research courses which has been first

online courses of Solapur University which is completely online. He

enjoys writing blogs, articles and book chapters, and spends his time

daily writing something on research. In his free time, reading various

blogs, articles, creating innovative concepts regarding research

publishing and internet surfing.

Dr. Ashok looks forward to reading many books, research

articles and developing various innovative projects like “Directory

of Research Journals Indexing” (DRJI) etc. of his own interests and

skill at writing and publishing.

He has published more than 15 books, 41 research articles

and currently working on Encyclopaedia of Global Social Problems

which may expand up to 10 volumes.

Dr. Ashok is dedicated research on Padmashali community

migration, always thinking about innovation in academic education

and research work. He has been involved in Research for more

than 5 years. He is also enthusiastic learner for new technologies

related to computers and internet.

Read more about Ashok at http://ashokyakkaldevi.org/


9/184

List of Authors

Pushkar Dubey

Assistant Professor in

Management,

PadmashreeKrutarthaAcharya

College of Engineering,

Bargarh, Odisha,

India

[email protected]

Samir Kumar Purohit

Senior Lecturer,

Humanities and Management

Department,

Sundargarh Engineering

College,

Sundargarh, Odisha,

[email protected],

Archana Agrawal

Assistant Professor,

Department of Commerce &

Management,

Dr. C.V. Raman University,

Bilaspur, Chhattisgarh,

India

[email protected]

Abhishek Kumar Pathak

Assistant Professor,

Department of Management,

Dr. C. V. Raman University,

Kota, Bilaspur, Chhattisgarh,

India

[email protected],

Sudhir Kumar Sharma

Head,

Department of Commerce,

Government P.G. Arts and

Commerce College,

Bilaspur, Chhattisgarh,

India

[email protected]

Sushil Kumar Panigrahi

Assistant Professor in

Management,

P.K.A. College of Engineering,

Bargarh, Odisha,

India

[email protected]

mailto:[email protected]:[email protected]:[email protected]:[email protected]


10/184

N. Surenthiran

Manager (HR),

NTPC Limited,

Kudgi, Tamil Nadu,

India

[email protected]

mailto:[email protected]:[email protected]


11/184

Table of Contents

Sr. No. Topic Author (S) Page No.

1.

Introduction to

Human Resource

Management

Dr. PushkarDubey 1-8

2.

Human Resource

Planning and Job

Analysis


3.Selection Process in

OrganizationMr. Samir Kumar Purohit 28-49

4.Induction and

Training MethodsMrs. ArchanaAgrawal 50-74

5.Performance

Appraisal MethodsMr. Abhishek Ku. Pathak 75-80

6.

Concept of Exit

Policy & Potential

Assessment

Prof (Dr.) Sudhir Ku. Sharma 81-87

7. Techniques of JobEvaluation


8. Wage Determination Mr. Sushil Ku. Panagrahi 99-122

9. Industrial Relations Mr. Sushil Ku. Panagrahi 123-147

10.

Human Resource

Development in

Indian Organizations

Dr. PushkarDubey and

Dr. N. Surenthiran148-170


12/184

Human Resource Management Introduction

1

Chapter-1

Introduction to Human Resource Management

Dr. Pushkar Dubey

Introduction

The 5 M’s in Production are Men, Material, Machine, Mission

and Money. Of all these factors People or Human resource is the vital

and most essential factor in the process of production. It is the central

resource of an organization and all other factors of production revolve

around the same. The success of an organization depends on the quality

of manpower it possesses. May it be any area of work, department or

organization as a whole, the growth lies in the effort and commitment of

people who work within? All the other factors remain dead or unutilized

in the absence of ‘Human’ factor in the organization. Therefore human

resource is considered to be the most important and significant factor

for the production of utility goods and services needed by the society.

The beauty of the human brain has made to fulfill the endless wants of

individual in the modern era. Hence, management of ‘Human factor’ for

an organization is the key issue. Human resource management is defined

as management functions that helps manager’s recruit, select, train and

develop members for an organization. HRM is concerned with peoples

dimension in organization.

Definitions:

1.

“A series of integrated decisions that govern employer-employee

relations. Their quality contributes to the ability of organizations and


13/184


2

employees to achieve their objectives.” (Milkovich& Boudreau,

1997).

2. “Concerned with the people dimension to management. Since every

organization comprises people, acquiring their services, developing

their skills, motivating them to higher levels of performance and

ensuring that they continue at the same level of commitment to the

organization are essential to achieve organizational goal. This is true,

regardless of the type of organization: viz. government, business,

education, health, recreation, or social action.” (Decenzo& Robbins,

1989).

3.

”The planning, organizing directing and controlling of the

procurement, development, compensation, integration, and

maintenance of human resource to the end those individual,

organizational, and social objectives are accomplished.” (Flippo,

1984).

4. “The organization function that focuses on the effective

management, direction, and utilization of people; both the people

who manage produce and market and sell the products and services

of an organization and those who support organizational activities. It

deals with the human element in the organization, people as

individuals and groups, their recruitment, selection, assignment,

motivation, empowerment, compensation, utilization, services,

training, development, promotion, termination and

retirement.”(Tracey, 1994).

5. (Invancevich and Glueck) “HRM is concerned with the most effective

use of people to achieve organizational and individual goals. It is the

way of managing people at work, so that they give their best to the

organization”.

6. (According to Dessler, 2008) the policies and practices involved in

carrying out the “people” or human resource aspects of a


14/184


3

management position, including recruiting, screening, training,

rewarding, and appraising comprises of HRM.

The above definition signifies that HRM is concerned with

procuring, developing and maintaining component workforce in an

organization so as to meet short term and long term organizational

objectives.

Nature of Human Resource Management:

HRM has the following features:

1. It is a part of Management: HRM is a management. It is drawn from

management concept which relies on principles and techniques of

human resource. Therefore it is considered as a part of management

discipline.

2. It is Universal: HRM is needed in all the level of management of

organizations. It has universal application, hence pervasive in nature.

3. It is People oriented: HRM is concerned with people. People include

individuals as well as groups. It is the effort of individuals and the

groups which brings the desired organizational outcomes. Thus

reward, compensation and motivation are the tools which bring

improvement in people and organizational productivity.

4. It is Action oriented: HRM hugely relies on practical approach of

doing things. It is not confined to written records on books; it seeks

more on rational approach to attain objectives.

5. It is Objective oriented: HRM is a goal oriented approach, aims to

maximize organizational efficiency.

6. It is an Integrated Function: HRM organizes people to build and

maintain cordial relation between people and various level of

organization; it helps in putting together the combined efforts to

achieve the objective.


15/184


4

7. It is developmental: It aims to develop employee potential, skill,

competence etc through the means of training.

8. It is a Continuous Process: HRM is a lifelong continuous process; the

practices cannot be applied to the organization in a day or two, but

need a series of continuous everyday actions.

9. It is a Complete/ Comprehensive Function: HRM is applied to all

staffs, personnel’s, departments and the organization. Therefore it

becomes a complete function.

FUNCTIONS OF HRM

HR functions can be broadly divided into following categories:

(i) Managerial functions,

(ii) Operative functions,

(iii) Advisory functions.

Further these functions can be classified as:

Managerial Functions:

HRM performs the basic management functions like planning,

organizing, directing, coordinating, controlling etc.

1. Planning: Planning in advance is the foremost function of a manager.

It is necessary to determine the goals of the organization and lay

down policies and procedures to reach the goals. Planning for HR

involves filling vacancies, planning job requirements, job descriptions

and determination of the sources of recruitment. It the process of

personnel planning where supply and demand forecast for each job

category is made. Than the shortage and excess of personnel by job

category are projected for a specific time. Plans are then developed

to eliminate the forecast shortages and excess of particular

categories of human resources.

2. Organizing: Organizing involves bringing together the human

resource in a common platform to serve organizational objective.


16/184


5

Plans and programmes are developed to carry out operational work

with a specified organizational structure, with clearly defined roles

and responsibility of the employee and departmental concern.

3. Directing: It is the people who put the organizational plans into

actions. There is a direct effect of motivation and encouragement on

productivity. Directing function thus keeps the personnel’s active in

working process of the organization. Directing function thus can

motivate the employees in an organization through career planning,

salary administration, employee morale, developing cordial

relationships and provision of safety requirements and welfare of

employees.

4. Controlling: Controlling involves all the measures taken to check

whether the plans are put into correct actions. Thus controlling is

reverting back to the planning process. The results obtained are

compared with the standard plans and attempts are made to

minimize deviations or gaps (if any). Controlling helps in

performance monitoring and personnel audit.

Operative Functions:

Operative functions are concerned with entrusted task or duties

assigned to the human resource. It includes employment, development,

compensation, integration and maintenance of personnel of the

organization.

1. Employment: Manpower requirement is the basic necessity for any

organization. It is necessary to place the right kind of people in the

right place in right number with right skills to achieve the

predetermined objectives. Recruitment, selection, placement, etc. of

the personnel helps in fulfilling these objective functions.

2. Training and Development: Training and development programmes

are necessary to enhance knowledge, skills and ability in employees.


17/184


6

It prepares the personnel’s for taking higher responsibilities and

acquiring the right skills for job performance. It is therefore

necessary for the organization to identify the training needs in

employees and to plan the intervention programmes accordingly.

Various on-job and off-job trainings programmes are given to

develop employees capability, required to perform a job.

3. Compensation: Rewarding employee for performance is the biggest

motivator. It increases the work excitement and prepares individual

for responsibilities. Equitable remuneration in the form of monetary

and non-monetary rewards helps in boosting the employee’s

confidence. Techniques like job-evaluation and performance

appraisal helps in wage fixation in an organization.

4. Maintenance (Working Conditions and Welfare): Workers health

and safety conditions are essential prerequisite for work life balance.

Efficiency of workers can be improved significantly by providing

them with health, safety and recreational measures. It includes

provision of cafeteria, rest rooms, counseling, group insurance,

education for children of employees, recreational facilities, etc.

5. Motivation: Motivation coupled with ability leads to performance.

Thus with higher motivation higher performance can be generated.

Organizations try to keep the employees motivated all the time so as

to culture a healthy work atmosphere for growth and development.

6. Personnel Records: Keeping appropriate track records of the

employees helps in identifying their potency and limitations. Records

on activities like training, achievements, transfer, promotion helps in

identifying the work behavior, which tends to reduce absenteeism

and employee turnover in an organization.

7. Industrial Relations: Maintenance of good or healthy Industrial

relations helps in reduction of employee grievances and disputes,

brings in higher discipline and empowerment of trade unions. It


18/184


7

provides an in-depth understanding of the labor problems and their

practical solutions to the top management of the organization.

8. Separation: It is concern with providing appropriate benefit to the

employees at the time of their retirement. Since organizations

sustainability is perennial and employees working in it have certain

limited role to perform during their service period, it becomes

essential to provide them with due benefits, so that they can live in

prosperity after they leave the organization.

Advisory Functions:

Advisory function of human resource is concern with providing

expert opinion on the matters of the organization. A human resource

manager thus can give advice to the top level management and the

departmental heads on various issues pertaining to manpower planning,

job analysis and design, recruitment and selection, placement, training,

performance appraisal, employee morale, plans and policies etc. This

would inculcate sound governance and congenial climate for growth of

organization concern.


19/184


8

References

1. Aswathappa. K. (2009). Human Resource Management: Text and

Cases. Tata McGraw hill New Delhi. 5th ed. ISBN No.:978-0-07-

066020-05.

2. Chhabra. T. N. (2010). Human Resource Management. DhanpatRai&

Co. New Delhi. 5th ed. 397. ISBN No.:81-7700-026-8.

3. David. K. and Newstrom. J. W. (1988). Human Behaviour at Work.

Organizational Behaviour. N.Y. Mcgraw Hill. 8th edition.

4. Decendo. D. A. and Robbins. S. P. (1989). Personal Management.

Prentice Hall of India New Delhi.

5. Fippo. Edwin. B. (1989). Principles of Personnel Management.

McGraw Hill Tokyo.

6. Haslinda. A. (2009). Evolving terms of Human resource management

and Development.The Journal of International Social Research. 2(9):

180-186.

7. Herry E. and Noon. M. (2003). A Dictionary of Human Resource

Management, Oxford New Delhi. 1st ed. ISBN No.:9780198296195.

8. Mamoria. C. B. (1998). Personal Management. Himalaya Publishing

House Mumbai.12th edition.


20/184

Human Resource Management Planning and Job Analysis

9

Chapter-2

Human Resource Planning and Job Analysis

Dr. Pushkar Dubey

Meaning or Definition of Manpower Planning or Hrp

Human Resource planning also called as manpower planning

process is a broad concept which involves issues on preparing plans for

hiring human resources at the time of organizational need. Various

authors have forwarded their views on HRP, illustrated as under:

Vetter. “The process by which management determines how the

Organization should move from its current manpower position to its

desired manpower position. Through planning management strives to

have the right number and the right kind of people, at the right places, at

the right time, doing things which results in both the organisation and

the individual receiving maximum long run benefit.”

Flippo. “A manpower planning programme can be defined as an

appraisal of an organization’s ability to perpetuate itself with respect to

its management as determined necessary to provide the essential

executive talent.”

Dale S. Beach. “It is a process for determining and assuring the

Organization to have an adequate number of qualified persons, available

at the proper times, performing jobs which meet the needs of the

enterprise ami which provide satisfaction for the individuals involved.”

Coleman Bruce P. “Manpower planning is the process of

determining manpower requirements and the means for meeting these


21/184


10

requirements in order to carry out the integrated plans of the

organization.”

Macbeth. ‘Manpower planning involves two stages. The first

stage is concerned with the detailed planning of manpower

requirements for all types and levels of employees throughout the

period of the plan. The second stage is concerned with planning

of manpower supplies to provide the organization with the right type of

people from all sources to meet the planned requirements.”

Objectives of Human Resource Planning

1. To get optimum use of Human resource.

2. To access the manpower requirements at present and future

period of time.

3. To access the kind of skills required to satisfy organizational

objectives, and to plan for manpower needs.

4. To plan and access the control measures required, in terms of

availability of human resources.

5. To design cost control policies with respect to human resources.

6. To design suitable promotion and transfer policies in the

organization.

Characteristics of Man Power Planning

1. Continuous: The need of manpower in an industry changes from

time to time, thus planning for manpower becomes a continuous

issue.

2. Comprehensive: The coverage of manpower is widespread, as the

right number of people is required at the right time in the right

place.

3. Proactive: The supply forecast of manpower requirements are well

planned in advance to meet the demand factor. Suitable match


22/184


11

between demand and supply of manpower requirements avoids

Human resource gap.

4. Utilization of manpower: Factors like working environment, suitable

performance, promotions; transfer helps in utilization of manpower

to the optimum level.

5. Major responsibility of management: Manpower planning is the

responsibility of management as a whole and not only of the

personnel department. The personnel department only guides and

assists operating managers in framing manpower plans.

Basis of Manpower Planning

1. Determining the existing Stock of Manpower:

Existing stock of manpower for an organization can be obtained

by dividing the total manpower on the basis of function, occupation,

level of skill or qualification. The first basis of manpower planning and

the starting point of all planning processes is the existing stock of

manpower. A group wise comprehensive report is prepared giving the

number of workers in the group, their age, qualification, date of

retirement and chances for promotion, etc.

2. Identifying Manpower wastages:

Planning appropriate adjustments in the existing stock of

manpower should be made for the possible wastage of manpower

caused by any predictable changes in the organization. Rate of labour

turnover and the period of active management etc. should be studied in

order to analyze the wastage of manpower. Other reasons of wastage

may be expansion and modernization of plant, retirement, promotion,

transfer and training of workers etc. These factors should be taken into

consideration to make the necessary adjustments in the requirement of

personnel.


23/184


12

3. Future Manpower Requirement:

After evaluating the existing stock of manpower and analyzing

the various factors of wastage caused by any foreseeable change in the

organization, one may easily assess the future requirements of

manpower in an industry taking into account the future plans of the

company, government plans and programmes, employment policy,

demand and supply of manpower in future, productivity of labour and

other factors of production and replacement needs. Care should be

taken of the possible changes in the techniques and methods of

production in the near future.

Needs of Human Resource Planning

1. To enlarge in the size of the business: Expanding the business size

calls for manpower requirements, and thus planning for human

resource. Decisions’ in regards to recruitment and selection of

individual and workforce becomes a matter of prime importance, so

as to continue the work progression.

2. To design effective recruitment and Selection Policy : Human

resource planning gives a framework in designing effective

recruitment and selection policies for the organization, It ensures

that right people at the right place with right skills are deployed. It

can reduce the labour turnover.

3. To reduce Labour Cost: Effective human resource planning reduces

wastage of manpower, and thus brings organizational efficiency. This

in turn helps in cost reduction.

4. Smooth and continuous production: Trained, skilled and qualified

manpower can bring in qualitative production, by avoiding

disruption. This ensures smooth and continuous production flow.

5. Effective Employee Development Programme: Effective employee

development programme is a function of human resource planning.


24/184


13

Employee development is insignificant in the absence of appropriate

manpower plan. Thus human resource planning should be linked to

manpower requirements in the organization.

6. Maintaining Good Industrial Relations: An effective human resource

planning helps the management in developing the good employer-

employee relationship, to bring harmony in Industries.

Factors Affecting Human Resource Planning

Following are the factors affecting Human resource planning:

a. Economic scenario/forces.

b. Production estimates or Departmental schedules.

c. Business expansion programmes.

d. Quality of personnel’s in the Industry.

e. Work standards.

f. Existing manpower Inventory.

g. Labor turnover rate.

h. Retirement and resignation of personnel’s.

i. Changes in Management.

j. Organizational structure.

Human Resource Planning Process

The process involved in Human resource planning process

involves the following steps (Fig 2.1):

1. Organizational objectives, plans and policies:

Every organization has to link the objectives with suitable plans

and policies. Issues related to human resources such as promotion,

transfer, capacity utilization, human resource inventory etc. should be

guided with appropriate plans and policies. Corporate level planning

process should be able to answer the following questions

a. Process and sources through which vacancies are to be filled?


25/184


14

b. Level of linkage of training and development programmes and

HRP process?

c. Constraints involved in HRP process?

d. What are the measures for job enrichment to eliminate

employee boredom on work?

e. Measures to downsize the organization to make it more

powerful and competitive?

f. Level of organizational automation?

g. Designing of flexible and competitive workforce?

2. Human Resource Planning:

After accessing the organizational objectives, plans, policies etc.

appropriate human resource plan is developed. The human resource

planning is based on two major activities:

a. Forecasting need of human resource: The present and future

human resource requirements are determined by the

organization. It is used to access the additional manpower

requirement in the organization concerned.

b. Forecasting supply of human resource: The demand of human

resource is matched with the supply of it. Availability of human

resources in future is determined to establish matching concept

between demand and supply forecast.

3. Identification of human resource gap:

If the demand criteria exceed the supply, supply gap is created.

On the other hand if supply criteria exceed the demand, demand gap is

created. The demand and supply forecast of human resource is matched

to identify human resource gap. Human resource need and availability

can result in either in surplus human resources or shortage of human

resources.


26/184


27/184


16

Techniques for Planning Human Resource Needs

Business adopts various tools and methodologies for forecasts.

These multivariate techniques are based on quantitative aspects of

measurement. However human resources are more governed by

qualitative aspects of measurement. A combination of both qualitative

and quantitative aspects of forecasts is used to forecast the human

resource needs in an organization.

Following are the techniques used to forecast the requirements of

human resources:

1. Managerial Judgment method:

It is a simple, most commonly used and conventional method of

forecast. Forecast is made by the managers on the basis of past

experience of various departments. Preparing human resource forecast

can take the form of:

a. Top down approach: This type of forecast is based on plans

which are made at the top level and is circulated to bottom

departments. After receiving the necessary data from various

departments, a forecast is arrived at, and finalized to prepare the

final forecast.

b. Bottom up approach: Here plans are prepared by various

departments on the basis of predesigned guidelines by the top

management. After receiving the plans of various departments,

the final forecast is prepared and behavior.

2. Delphi Technique:

It is also a form of expert opinion method (Fig. 2.2). This method

is more realistic, systematic, and wide and is based on interaction. The

Delphi technique involves minimum two rounds of expert’s comments in

the field. The experts are asked to fill a questionnaire containing a

predefined checklist of questions. Necessary information is provided to

the members, and any new information with other members is passed


28/184


17

along the line, so that every member has access to the information.

Opinions are collected after first round. A summary is presented, with

appropriate justification to the answers provided by the experts.

Common and divergent views are identified by the facilitator. Thus, the

other members are encouraged to rectify their previous answers, which

were not appropriately justified earlier. In the subsequent rounds this

differences in opinion is narrowed down and opinion in the subject is

converged to one single point. This technique may involve a number of

rounds depending on how quickly divergent views of experts are merged

to common viewpoint.

Fig. 2.2 Delphi Technique

3. Work Study Technique:

It deals with techniques of method study and work

measurement, which are employed to ensure the best possible use of

human, machine and material resources in carrying out a specified

activity. It is based on the volume of operation and working efficiency of

personnel. Firstly the volume of operation in an organization is

determined by the strength of organizational plan. Fluctuations like


29/184


18

increase or decrease in output is also included in the volume of

operation. The work efficiency or productivity is measured in terms of

time and motion study. The time and motion study gives standard

output per unit of time. The formula to calculate the number of

operation required to complete specified volume of operation is given

by:

No of operation= (Planned output)

(Standard output per hour x Standard hour per person)

The standard output per hour is a variable factor and keeps on

changing over a period of time. This plan is work out in different level of

organization, to determine the aggregate level of manpower

requirement. This technique gives an idea on the total number of

employee required in an organization.

4. Ratio-trend Analysis:

Under this method the ratio between production/ sales level and

direct operatives; ratio between direct operatives and other personnel’s

is calculated. This ratio is calculated for a number of years based on the

past records of the organisation. The future trends are projected on the

basis of these ratios.

5. Statistical and Mathematical Models:

There are various statistical and mathematical models available

for forecasting human resource needs. This model includes:

6. Burack-smith model :

This model calculates the estimates of human resource needs

and is based on variables like:

(i) Total business activity.

(ii) Average productivity improvement.

(iii) Business activity- personnel ratio for the current year.


30/184


19

7. Regression Analysis:

It is a statistical means which employs the interdependence of

dependent and independent variables. The human resource needs of an

organization are a dependent variable and the business activities

involved acts as an independent variables. With the help of these two

variables equations are established to forecast the human resource need

of an organization.

8. Econometric model:

The science of economic measurement is called as econometrics.

It is the combination of mathematics and statistics. It is based on

relationship between variables, and on the basis of predicted

relationship growth of economic system is forecasted.

Barriers to effective Human Resource Planning

For successful human resource management, HRP becomes

imperative. There are certain factors which act as a hindrance to

effective HRP. These factors may be internal or external to the

organization. Some of the factors include:

1. Inadequate or improper linkage between HRP and corporate

level strategy.

2. Lack of realization of human resource planning needs.

3. Framing of inflexible attitude towards HRP by the management

or policy making bodies.

4. Effect of dynamic environment which is unpredictable and

uncertain in nature.

5. Variance in long and short term human resource planning

process of the organization.

6. Inadequate or lack of communication system in the organization.


31/184


20

Actions for effective Human resource planning

Human resource planning can be made effective in an

organization by the cultivating the following set of actions:

1. The top management who are the policy making bodies in the

organization should be fully committed to effectively design and

implement human resource planning policies in the organization.

2. Human resource managers and the top management of the

organization should be proactive towards human resource

planning.

3. More of participation from the employees and the managers

from all the sphere of the organization help in formulation of

effective HRP.

4. Rigid mindset of the policy making bodies should be changed, to

culture adaptive and flexible attitude.

5. Organizational culture should be nurturing, towards

development.

6. Effective communication networks should be established.

7. Human resource plans should be flexible and adaptive, so that it

can deal with changing dynamic environment.

8. Attempts should be made to link HRP and corporate level

strategies.

Job Analysis

Meaning and Definition Of Job Analysis

John A Shubin “Job analysis is the methodical compilation and

study of work data in order to define and characterize each occupation

in such a manner as to distinguish it from all others.”

Dale Yoder “Job analysis is the procedure by which the facts with

respect to each job are systematically discovered and noted.”


32/184


21

Scott, Clothier and Spriegel“Job analysis is the process of

critically evaluating the operations, duties and relationship of the job.”

Flippo. “Job analysis is the process of studying and collecting

information relating to the operations and responsibilities of a specific

job.”

Michael J Jucius “Job analysis refers to the process of studying

the operations, duties and organizational aspects of jobs in order to

derive specifications or as they are called by some job descriptions.”

United States Department of Labor “Job analysis is defined as

the process of determining, by observation and study and reporting

pertinent information relating to the nature of a specific job. It is the

determination of the tasks which comprise the job and the skills,

knowledge, abilities and responsibilities required of the worker for

successful performance and which differentiates the job from all others.”

Blum “A job analysis is an accurate study of the various

components of a job. It is concerned not only with an analysis of the

duties and conditions of work, but also with the individual qualifications

of the worker.”

J. D. Hackett “In the process of job analysis, the fundamental,

elements of a job are established and clarified, while simultaneously the

abilities desirable in the worker are known, the abilities that will help

him to perform his function skillfully. Thus, job analysis has two aspects,

one the analysis of duties and conditions of work, and the other, the

analysis of qualities desired in the worker or employee.”

Contents of Job Analysis

Thus job analysis is the process of job study. It provides the

analysis with the basic raw data pertaining to specific jobs. Dale Yoder

has classified Job analysis as:

1. The job identification: Title


33/184


22

2. Features of the job: location, physical setting, supervision,

hazards and discomforts etc.

3. Duties and responsibilities of the workers.

4. Needful equipments and materials.

5. How the job is performed.

6. Qualities required by personnel.

7. Job relationships.

Procedure of Job Analysis

Job analysis is a staff function. It is conducted by a job-analyst of

personnel department. It involves the observation of the job and the

reporting of facts which are observed and which are obtained in

conversation with workers, supervisors, and others. The major steps in

the process of job analysis are as follows:

1. Collection of accurate or realistic Material on Jobs:

It is the first step in job analysis process. Here all the accurate or

factual materials pertaining to job is collected in details. The information

collected is very useful in designing particular Jon in action. Various

methods are employed to collect relevant information on job. The

method includes: Various approaches are utilized in studying a job and

the four currently most popular are

a. Questionnaires

b. narrative descriptions,

c. observations and

d. Interviews.

The information collected mainly constitutes:

(i) Information on physical environment (includes dimensions like

temperature, noise, dirt, comforts and dangers etc.)

(ii) Information on social environment (tem work, individual work,

dual work etc.)


34/184


23

(iii) Information on financial conditions (wages, bonus, incentive

schemes or fringe benefits etc.), and

(iv) Information on physical demands (muscular energy, hours of

work, travel etc.)

(v) Information on intellectual demands (university, technical or

professional degrees and problem solving abilities ),

(vi) Information on skills, experience and personality factors required

on the job.

2. Preparing a draft:

Preparing a draft includes putting all the collected data into a

meaningful form to prepare an outline of the contents of job. It is a

statement showing the details of activities involve in job. Drafting of

information act as a source of reference for future purpose.

3. Identifying and organizing of Job Specification:

On the basis of draft made in the second step, attempts are

made to identify and specify the job. Job specification is the minimum

acceptable qualities required to place a person in the job. Key skills

required to perform a job is the key prerequisite taken into consideration

while preparing job specification.

4. Preparation of detailed Report:

A detailed report of job specification details are prepared to

present before the approval committee. It is then re-corrected on the

basis of suitable suggestions and advises to make it more useful and

informative. The corrected report is then put on for final approval for

action.

5. Approval:

After the final approval of the report it is sent to various

departments for putting it into final action.


35/184


24

Significance or Uses of Job Analysis

Job analysis is very useful in the following context:

1. It helps in manpower planning or human resource planning.

2. It assists the process of recruitment, selection and placement

process in an organization.

3. It is helpful in administering the training and development

programmes in an organization.

4. It helps in the process of job evaluation by determining the

relative worth in job.

5. It provides a benchmark for performance standard, set by the

organization.

6. It helps to study the elements involved in job which ultimately is

useful in job designing process.

7. It ensures health and safety measures to the workers by

eliminating the hazardous work environment like excessive heat,

noise, fumes, dust etc.

8. It provides the detail of job characteristics, which is linked to job

discipline.

Components of Job Analysis

Job Analysis specifically contains (Fig 2.3)

a. Job description and

b. Job specification.

Job Description

According to Edwin B. Fippo “The first and immediate product of

the job analysis is the job description; the document is basically

descriptive in nature and constitutes a record of existing and pertinent

job facts.”


36/184


25

Job Specification

According to Edwin B. Fippo “A job specification is a statement of

minimum acceptable human qualities necessary to perform a job

properly”

According to Dale Yoder “The job specification is a summary

popularly described, thus a specialized job description, emphasizing

personnel requirement and designed especially to facilitate selection and

placement.”

Fig. 2.3 Components of Job Analysis


37/184


26

References

1. Aswathappa. K. (2009). Human Resource Management: Text and

Cases. Tata McGraw hill New Delhi. 5th ed. ISBN No.:978-0-07-

066020-05.

2. Chhabra. T. N. (2010). Human Resource Management.

DhanpatRai& Co. New Delhi. 5th ed. 397. ISBN No.:81-7700-026-

8.

3. David. K. and Newstrom. J. W. (1988). Human Behaviour at

Work. Organizational Behaviour. N.Y. Mcgraw Hill. 8th edition.

4. Decendo. D. A. and Robbins. S. P. (1989). Personal Management.

Prentice Hall of India New Delhi. 79.

5. Fippo. Edwin. B. (1989). Principles of Personnel Management.

McGraw Hill Tokyo. 209.

6. Haslinda. A. (2009). Evolving terms of Human resource

management and Development.The Journal of International

Social Research. 2(9): 180-186.

7. Herry E. and Noon. M. (2003). A Dictionary of Human Resource

Management, Oxford New Delhi. 1st ed. ISBN

No.:9780198296195.

8. Mamoria. C. B. (1998). Personal Management. Himalaya

Publishing House Mumbai.12th edition.

9. Manolescu. A. (2003). Human Resource Management. 4th ed.

The economic publishing house. Bucarest.

10. Milkovich. G. T. and Boudreau. J. W. (1988). Personnel/ Human

Resources Management. 5th ed. Plano TX: Business publication.

11. Pareek. U. And Rao. T. V. (2003). Designing and Managing

Human Resource System. Oxford & IBH Publishing Company,

New Delhi, Ch. 21. 522-549. ISBN No.: 81-204-1610-4 Prahalad.

C.K. and Hamel. G. (1990). The Core Competence of Corporation.

Harvard Business Review. May-June. 79-91.


38/184


27

12. Prasad. L. M. (2005). Business Policy: Strategic Management.

Sultan Chand & Sons. 230. ISBN No.: 81-7014-920-7.

13. Ramasamy. T. (2011). Principles of Management. Himalaya

Publishing House. Mumbai. 141.

14. Rao P. S. (2007). Personnel and Human Resource Management.

Himalaya Publication, Mumbai. 3rd ed., Ch.7, p-114-126.

15. Rao. T. V. (1996). Human Resource Development: Experiences,

Interventions, Strategies. Sage Publication. New Delhi.

16. Rao. P. S. (2003). Personnel and Human Resource Management,

Himalaya Publishing House. Mumbai. 3rd ed. 232.

17. Rao. V. S. P. (2004). Human Resource Management: Text and

Cases. Excel Books. Ch.12, 245-26 2. ISBN No: 81-7446-213-9.

18. Ravichandran. A. (2011). Organisational structure, HR practices

and its outcome: A conceptual model. International Conference

on Technology and Business Management, March 28-30, Delhi.

19. Robbins. S. P. Judge. T. A. and Sanghi. S. (2009). Organizational

Behaviour. Prentice Hall New Delhi. 13th ed. 607. ISBN No.:978-

81-317-2121-6.

20. Terry. L. L. and Michael. D. (1990). Personal /Human Resource

Management. Macmillan New York.134.


39/184

Human Resource Management Selection Process in Organization

28

Chapter-3

Selection Process in Organisation

Samir Kumar Purohit

Introduction:-

In today’s business context Human Resource Management is

playing a very dominant role within organizations. Its aim at developing

all the employees of an organization in a planned manner not only to

acquire and apply their existing capabilities but also their inner

potentials and help in building a climate with strong interpersonal bonds

which helps the organization to achieve its goals. Apart from this,

selection processes are one of the most important sets of methods to

take decisions an organization makes to employ people. All aspects of an

organization’s activities are directed and enacted by the people that

comprise the organization. It involves the creation of climate where

human knowledge, skill, capabilities, and creativity can bloom. It involves

the use of process through which the employees of the organization are

prepared to give their best for the achievement of corporate objectives

and bring optimal effectiveness in their job as well.

The aim of this chapter is to help you explore the meaning and

implications of the concept of selection process and methods. I do not

assume that there is only one way of defining and understanding the

nature of selection process. On the contrary, Selection Process varies

according to the country in which HRM is conducted that provides the

cultural and institutional environment for the selection process in HRM.

Selection Process developed in response to the substantial increase in


40/184


29

competitive pressures American business organizations began

experiencing by the late 1970s as a result of such factors as globalization,

deregulation and rapid technological change. These pressures gave rise

to an enhanced concern on the part of firms to engage in strategic

planning, a process of anticipating future changes in the environmental

conditions (the nature as well as level of the market) and aligning the

various components of the organization in such a way, so as to promote

organizational effectiveness.

Human Resource Management and also personnel management

consist of all the activities undertaken by an enterprise to ensure the

effective utilization of employees towards the attainment of individuals,

group and organizational goals.

An organization’s HRM function focuses on the people side of

management. It consists of practices that help the organization to deal

effectively with the people during the various phases of the employment

cycle, including pre-hire, staffing and post-hire. The pre-hire phase

involving planning practices. The organization must decide what type of

job openings will exist in the upcoming period and determine the

necessary qualifications for performing these jobs. During the hire phase

the organization select its employees. Selection practices including

recruiting applicants, assessing their qualifications and ultimately

selecting those who are deemed to be the most qualified.

In the post-hire phase, the organization develops selection for

effectively managing people once “they come through the door”. These

practices are designed to maximize the performance and satisfaction

levels of employees by providing them with the necessary knowledge

and skills to perform their jobs and by creating conditions that will

energize, direct and facilitate employees efforts towards the meeting the

organization’s objectives.


41/184


30

Meaning of Selection:

Selection is the process of picking up individuals (out of the pool

of job applicants) with requisite qualifications and competence to fill jobs

in the organization. A formal definition of Selection is as under

Selection means a process by which the qualified personnel can

be chosen from the applicants who have offered their services to the

organization for employment. The selection process divides the

candidates for employment into two classes – those who will be offered

employment and those who will be rejected. Thus the selection process

is a negative function because it attempts to eliminate applicants,

leaving only the best to be placed in the organization. In the words of

Dale Yodev, “Selection is the process in which candidates for

employment are divided into two classes- those who are to be offered

and those who are not.”

Definition of Selection: Process of differentiating:-

“Selection is the process of differentiating between applicants in

order to identify and hire those with a greater likelihood of success in a

job.”

Difference between Recruitment and Selection:

Recruitment Selection

1. Recruitment refers to the

process of identifying and

encouraging prospective

employees to apply for jobs.

2. Recruitment is said to be

positive in its approach as it seeks

to attract as many candidates as

possible.

1. Selection is concerned with

picking up the right candidates

from a pool of applicants.

2. Selection on the other hand is

negative in its application in as

much as it seeks to eliminate as

many unqualified applicants as

possible in order to identify the

right candidates.


42/184


31

Selection:

The process of choosing from a group of applicants the individual

best suited for a particular position and for the organization.

Selection Process:

The Application:-

The information requested on an application form may vary

from organization to organization and even by job type within an

organization. Typically, though, the application form should include

sections for the applicant’s name, address, telephone number,

education, military background, work experience and reference

information. There should be a place for the applicant to sign and a

preprinted statement that the applicant’s signature indicates his or her

attestation that everything on the form is true; if not, the candidate can

be released. When it is not prohibited by state law, many organizations

include an employment-at-will statement reminding employees that

either the employer or the employee can terminate the employment

relationship at any time. And finally, the form should include a statement

from the applicants giving permission to have references checked. Many

applicants include resumes along with their applications, and HR can

direct applicants to submit forms either online or in hard copy. Most

large organizations now use automated tracking systems that require

online submission. Automated systems can scan applications and

resumes for keywords, thereby eliminating the time spent by HR in

reviewing documents. Obviously, this saves time in the HR department,

but employers using automated tracking systems must be cautious.

Applicants are becoming more sophisticated in the process and

stuffing their applications and resumes with keywords even when they

are not truly qualified for the open position. Regardless of the methods


43/184


32

used, you may get hundreds of applications for only a few open

positions, particularly in as low economy with high unemployment.

Screening Interview:-

Before moving further into the selection process, many

organizations prefer to screening interview of those applicants that

appear qualified based on information submitted on their resume and

applications. Screening interviews are usually conducted by telephone.

The interviewer asks a few straightforward questions to determine the

candidate’s job qualifications and appropriateness for the open position.

If it is determined that the applicant is not appropriate for the

position, the Interviewer may refer the candidate to another open

position within the organization if there is something available that

matches the applicant’s skills. If there is nothing else available and the

candidate is obviously unqualified for the position, the process ends

there, saving both the candidate and the organization the time and

expense of going further into the selection process.

Selection Tests:-

Selection Test: - Any instrument used to make a decision about a

potential employee.

There are a number methods organizations use to determine if

an applicant has the potential to be successful on the job. Selection tests

are used to identify applicant skills that cannot be determined in an

interview process (Fig. 3.1). Using a variety of testing methods,

applicants are rated on aptitude, personality, abilities, honesty and

motivation. Properly designed selection tests are standardized, reliable

and valid in predicting an applicant’s success on the job.

Standardization: - The uniformity of procedures and conditions related

to administering tests. (R Wayne Mandy)


44/184


33

To equitably compare the performance of several applicants, the

processes used for testing those applicants must be as identical as

possible. The content of the test, the instructions and the time allowed

must be the same for all candidates. For example, when giving a timed

keyboarding test, it would be unfair for one applicant to be tested on a

manual typewriter while the other candidates were tested on

contemporary computer keyboards.

Reliability: - The extent to which a selection tests provides consistent

results. (R. Wayne Mandy)

A test’s reliability should be questioned if it does not generate

consistent results each time it is used. For example if a person scores 125

on an intelligence test one week and scores only 80 on the same test

following week, you should assume the testing instrument is not reliable.

Validity: - The extents to which test measures what it claims to measure.

(R Wayne Mandy)

The skills tested in a selection instrument should be the same

skills used on the job. Therefore, we can assume that higher test scores

will correlate to higher success in job performance. If a specific test

cannot assess the ability to perform the job, it has no usefulness in the

selection process.

For example, for an administrative assistant position that

requires skilled keyboarding for job success, a keyboarding test would be

valid in the selection process. We could assume that a higher score on

the keyboarding test would indicate higher performance on the job.

Requiring the same job applicant to complete a lifting test would not be

valid for the position because the ability to lift specific weights is not a

job requirement and therefore a higher score on lifting would not be a

valid predictor of job success.


45/184


46/184


47/184


36

choice. The downside to team interviews is simply logistics. The larger

the team, the more difficult it is to find a time and a place in everyone’s

busy schedules to make the interview happen. In addition, candidates

are likely to find a panel interview more stressful than an interview by a

single person.

Background Verification and Reference Check:-

Once you have made your selection decision, you must verify the

information provided by the candidate and check the candidate’s

references. Millions of background and reference checks are done on

applicants annually, and unfortunately, much of the information on

application forms and resumes are inaccurate. According to ADP

Screening and Selection Services, 40 percent of applicants lie about their

work histories and educational backgrounds and about 20 percent

present false credentials and licenses. Nationwide, an estimated 30

percent of job applicants make material misrepresentations on their

resumes. Another survey found that 95 percent of college students said

they would lie to get a job and 41 percent said that they had already

done so. One survey of top executives found that 15 percent admitted

falsifying resume information.

Difficult as it may be to check references, you must get accurate

information on your prospective new hire. Unfortunately, past

employers are increasingly reluctant to give references mostly because

they fear defamation lawsuits from disgruntled former employees.

Consequently, many employers strictly limit the information they

provide about former employees. It’s a no-win situation for employers,

though, because they can be sued either way. Withholding negative

information about former employees may offer protection for the

employer from a defamation lawsuit, but it increases its exposure to a


48/184


37

lawsuit based on negligence if the employer withholds information

regarding the volatility of a former employee.

A past employer that fails to warn about an employee’s known

propensity to violence may be guilty of negligent referral, and a potential

employer that fails to do proper reference checks that may have

uncovered the potential risk of a new employee may be guilty of

negligent hiring, if the new employee causes injury to another in the

workplace. It is a reminder to HR that we must diligently ferret out

information on new hires and, at the same time, keep accurate

employment records on current employees so that when asked, we can

provide verifiable and reliable reference information. Because of the

difficulty of obtaining information from past employers, many

organizations conduct criminal background checks, credit checks and

Internet searches to find information on job candidates. In 2006,

according to research from SHRM, 96 percent of employers conducted

background checks on applicants, up from 66 percent only a decade ago.

Though controversial, these background searches are not illegal if the

candidate has given proper permission. Before conducting any

background check on a potential employee, be sure your candidate signs

the proper release forms.

Making the job offer:-

A job offer may be extended by phone, letter or in person—

whatever is customary in the organization. Most commonly, the job offer

is handled by the HR department. At this time, salary and benefits are

discussed and the prospective employee is told of any further conditions

that must be met. If any organization requires a physical examination or

a drug screen, arrangements should be made to complete the process. If

the candidate needs time to think over the job offer, a time should be

established for notification.


49/184


38

The selection of the best person for the job is only the first step

in building an effective management team. Even companies that make

great efforts in the recruitment and selection process often ignores the

need of new managers after they have been hired. The selection process

may include interviews, various tests and the use of assessment centers.

To avoid dissatisfaction and employee turnover, companies must ensure

that new employees are introduced to and integrated with other persons

in the organization.

Correct selection decisions are those where the candidate was

predicted to be successful in advance and prove to be successful on the

job. At times the applicant is predicted to be unsuccessful and, as

expected, performs unsatisfactorily after getting selected. While in the

first case, we the worker is successfully accepted, in the later the worker

is successfully rejected.

Errors arise when we reject a candidate who would have

performed successfully on the job. This is termed as reject error. In

certain situations a worker is accepted ultimately and performs

unsatisfactorily. This is called accept errors.

Both the above errors can be minimized if the system is

impartial, has a degree of objectivity and follows a fairly uniform

standard of assessment. A skilled manager should understand the

benefits of good selection and also should be aware of the cost of poor

selection decision.

Induction

The induction of new staff into their role is the final step of the

recruitment and selection process and the first step in welcoming the

new employee into the Organisation. All new employees should attend

at the Human Resources Department on their first day to provide the

employee with an induction pack.


50/184


39

It is the responsibility of the recruiting manager, or a suitable

nominee, to ensure that the new member of staff is introduced to their

department and, understands their job and where it fits into the

organization. Generally new employees will be allocated a Buddy who

can provide an informal introduction to the Organization and be a

friendly face in the early days of the new employment. The Human

Resources Department and the Learning and Development Manager

provide advice and support to recruiting managers on effective

induction.

For professorial appointments the Chair of the panel should

complete the pro-forma provided by the local Human Resources team

and return this with the other interview papers to the representative

from Human Resources.

In the event that a candidate requests feedback about their

performance in the selection process this should be arranged by the

Chair of the panel, although he or she may delegate this to another

member of the panel where appropriate.

Unsuccessful interview candidates should be dealt with

courteously and sensitively and should as a minimum receive written

notification of the outcome of the selection process.

Apart from the above methods, Selection can also be determined

by means of the following selection steps.

Selection Steps (Methods)


51/184


40

Fig. 3.1 Steps in Selection Process

Selection and Organizational Effectiveness:

In the past decade, there has been a growing interest in

establishing that selection procedures and the human capital attracted

by an organization have an impact on organizational-level outcomes such

as profitability and productivity. Studies have also attempted to show

what combinations of human resource interventions, as well as other

organizational inputs, have such impact. Early approaches that examined

Selection Steps

Applicants Greeted

Preliminary Interview

Application Form Completed

Skill/ Knowledge Testing

Candidate Interviewed

Background and Reference Checks

Short List Screening

Appropriate Candidate is selected

New Employee Induced


52/184


41

the impact of selection decision practices at the organizational level did

so in isolation of other human resource (HR) functions (e.g. Terpstra and

Rozell 1993). These studies were soon replaced by studies looking at the

effect of multiple HR functions (Huselid 1995) and specific combinations

of functions, sometimes thought to represent ‘high-performance work

systems’.

Senior-level personnel usually provide responses to single-item

measures of HR functioning, sometimes about issues of which they could

not be well informed. Questions are often superficial, perhaps resulting

from an effort to keep survey instruments short and maximize return

rates. Wright et al. (2001) point out that these measures cannot possibly

be very reliable; this lack of reliability may be one reason why the

relationship with firm outcomes is often so very low.

Even with the potential limitations of the database on the

relationships between HR functions and firm performance, there seems

to be consensus on several issues. First, it is not productive to consider

HR functions or human capital in isolation of other aspects of the

organization or even of the society in which the organization functions.

Most representative of this position is the work of Lepak and Snell (2002)

who describe configurations of HR activities that are most often

associated with particular types of employment modes (i.e. knowledge-

based, job-based, contract work, and alliance or partnerships). Second,

successful organizations, or systems, must have human capital

(knowledge, skills, and abilities, or KSAs), the social capital (internal and

external relationships), and organizational capital (processes,

technologies, and databases) to be successful. Firms must have the KSAs,

but also develop practices that motivate people. This resource-based

view (Wright et al. 2001) and a more theoretical view of performance,

strategy, and the role of human resources appear to be the direction in

which this area of study is now headed. Finally, Wright et al. (2005)


53/184


42

shows that HR practices are strongly related to future performance as

well as past performance.

The principle underlying typical selection practices is that

individual divergence characteristics will determine who will be of

greatest value to the organization based on their job performance

(Motowidlo 2003). In appropriately designed jobs that take

organizational needs into consideration, employees will improve

organizational effectiveness simply by performing their duties well,

where duties might include citizenship performance and other

supportive behaviors, as well as task performance. Alas, many jobs are

designed imperfectly. Consequently, Ployhart and Schneider (2002)

emphasize the potential need to conduct teamwork analyses or

organizational needs assessments, in addition to traditional job analysis,

to ensure that individuals’ performance will be adding value to an

organization.

From a multilevel perspective, individual work behaviors can

then be divided into those that accomplish individual job tasks and those

that lead to the fulfillment of higher-level needs. Although the First

section of this chapter suggested that selection decisions and general HR

practices must be compatible, this section provides a closer look at how

individuals can be selected to fulfill needs beyond their specific job.

Selection Policy:-

1) Fair selection of applicants:-

A. Educational attainment

B. Expertise

C. Work Experiences

D. Psychological Examination

E. Health Background

F. Previous employment Background Checking


54/184


43

G. Legal age (not below 18 years old)

Selection Principles:-

1. Each employee will be evaluated fairly based on their performance

and ensures objectivity, equal chances during promotion and

internal hiring for higher job category.

2. Re-hiring of former regular employee has been considered,

processing will be the same as the regular procedure of selection and

hiring.

3. Equal opportunities for training, advancement of employees at all

levels.

4. There shall be no preferential treatment or discrimination of

employees for any reason such as age, gender, race, sexual

orientation, marital status, religious belief or disability.

5. Fairness, due-process and justice shall be the basis for treatment to

employee grievance.

6. The organization must commit to provide a healthy and safe

workplace and working conditions to all employees.

Types of Employment tests and Selection Procedures:-

Cognitive tests assess reasoning, memory, perceptual speed and

accuracy, and skills in arithmetic and reading comprehension, as well

as knowledge of a particular function or job;

Physical ability tests measure the physical ability to perform a

particular task or the strength of specific muscle groups, as well as

strength and stamina in general;

Sample job tasks (e.g., performance tests, simulations, work

samples, and realistic job previews) assess performance and aptitude

on particular tasks;


55/184


44

Medical inquiries and physical examinations, including psychological

tests, assess physical or mental health;

Personality tests and integrity tests assess the degree to which a

person has certain traits or dispositions (e.g., dependability,

cooperativeness, safety) or aim to predict the likelihood that a

person will engage in certain conduct (e.g., theft, absenteeism);

Criminal background checks provide information on arrest and

conviction history;

Credit checks provide information on credit and financial history;

Performance appraisals reflect a supervisor’s assessment of an

individual’s performance; and

English proficiency tests determine English fluency.

Employers Best Practices For Testing and Selection:-

Employers should administer tests and other selection procedures

without regard to race, color, national origin, sex, religion, age (40 or

older), or disability.

Employers should ensure that employment tests and other selection

procedures are properly validated for the positions and purposes for

which they are used. The test or selection procedure must be job-

related and its results appropriate for the employer’s purpose. While

a test vendor’s documentation supporting the validity of a test may

be helpful, the employer is still responsible for ensuring that its tests

are valid under UGESP.

If a selection procedure screens out a protected group, the employer

should determine whether there is an equally effective alternative

selection procedure that has less adverse impact and, if so, adopt

the alternative procedure. For example, if the selection procedure is

a test, the employer should determine whether another test would


56/184


45

predict job performance but not disproportionately exclude the

protected group.

To ensure that a test or selection procedure remains predictive of

success in a job, employers should keep abreast of changes in job

requirements and should update the test specifications or selection

procedures accordingly.

Employers should ensure that tests and selection procedures are not

adopted casually by managers who know little about these

processes. A test or selection procedure can be an effective

management tool, but no test or selection procedure should be

implemented without an understanding of its effectiveness and

limitations for the organization, its appropriateness for a specific job,

and whether it can be appropriately administered and scored.

The Competency Approach:-

Typically, decisions on selecting a potential worker are made

primarily with a view to taking on the most appropriate person to do a

particular job in terms of their current or, more commonly, potential

competencies. In recent years this concept has been extended to search

for workers who are ‘flexible’ and able to contribute to additional and/or

changing job roles. This approach contrasts with a more traditional

model which involves first compiling a wide-ranging job description for

the post in question, followed by the use of a person specification, which

in effect forms a checklist along which candidates can be evaluated on

criteria such as knowledge, skills and personal qualities. This traditional

approach, in essence, involves matching characteristics of an ‘ideal’

person to fill a defined job. There is a seductive logic in this apparently

rational approach. However, there are in-built problems in its application

if judgments of an individual’s personality are inherently subjective and


57/184


46

open to error and, furthermore, if these personal characteristics are

suited to present rather than changing circumstances.

The competencies model in contrast, seeks to identify abilities

needed to perform a job well rather than focusing on personal

characteristics such as politeness or assertiveness. Torrington et al (2008,

p 170) identify some potentially important advantages of referring to

competencies in this area noting that:

‘they can be used in an integrated way for selection,

development, appraisal and reward activities; and also that from them

behavioral indicators can be derived against which assessment can take

place.’

Competency-based models are becoming increasingly popular in

graduate selection process where organizations are making decisions on

future potential. Fordham and Stevens (2000) found that managers in

the public sector increasingly viewed traditional job descriptions and

person specifications as archaic, rigid and rarely an accurate reflection of

the requirements of the job.

There is increasing evidence that this popularity is more

widespread. A CIPD report (2007) found that 86 per cent of organizations

surveyed were now using competency-based interviews in some way;

and in another survey, over half of employers polled had started using

them in the past year (William, 2008). It is suggested that the

competency-based model may be a more meaningful way of

underpinning recruitment and selection in the current fast-moving world

of work and can accordingly contribute more effectively to securing high

performance.

Selection and Organizational Culture:-

It is unsurprising that the culture of a particular work

organization will influence selection decisions, with recruiters both

consciously and unconsciously selecting those individuals who will ‘best


58/184


47

fit’ that culture. In some organizations recruitment policy and practice is

derived from their overall strategy which disseminates values into the

recruitment and selection process. Mullins (2007, p 727) provides the

example of Garden Festival Wales, an organization created to run for a

designated and short time-period. This organization’s managers were

hrm-fullbook

Documents