Unit 1

Chapter I
Human Resource Management-An Introduction

Aim
The aim of this chapter is to:

explain the role of human resource management in an organisation
enlist the responsibilities of human resource management (HRM)
elucidate the human relation concept
Objectives
The objectives of this chapter are to:

explain human resource management
explain the responsibilities of human resource management
describe about the revolution of human resource management
Learning outcome
At the end of this chapter, you will be able to:

understand the responsibilities of human resource management
differentiate between personnel management and human resource management
recognise human resource management as a career option
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Human Resource Management
1.1 Introduction
Human Resource Management is the strategic and logical approach of every management system. Human Resource
Management has replaced the Personnel management, as it brings together the most valued asset of the organisation
i.e. the employees of an organisation which contribute to the achievement of the objective of the business. Human
Resource Management (HRM) simply means employing people, developing their competence utilising, maintaining
and compensating their services for getting the job done as per the requirement of organisations.
There are some factors discussed below which may result in success or failure of any organisation

The business and political surroundings that can influence an undesirable thinking in the masses.
Lack of resources that can reduce the productivity.
Incompetency of the employees that can degrade the quality of the product.
Lack of constructive motivation can lower employees involvement in work.
Lack of supervision can lead to inefficiency.
Most important factor is the communication gap that exists between the workers and the management. Such
filtration of communication can result in serious organisational conflicts.
1.2 Responsibilities of Human Resource Management

The proper steps carried out to improve performance, productivity, relation between employees and management.
Let us go through the responsibility of the Human Resource management on by one:
1.2.1 Human Resource Management Goal

Goal of the Human Resource management is to communicate with the people in the organisations.
They have to bring the employees and the management together and improve productivity and efficiency
collectively.
The main goal of Human Resource Management is to use proper human resources, develop their skills and
motivate them for doing efficient work by ensuring higher productivity and producing better quality.
1.2.2 Recruitment and Selection of Candidates

Human Resource Management team has to choose correct candidates for a particular job.
Selection process is carried out by taking interviews of candidates and examines their qualification and
ability.
1.2.3 Training and Development of Employee

Training an individual is carried out by recognising the area where the candidate has to be trained. It is done by
developing the key competence through planning and learning process.
Proper training will enhance the capability of an individual and enable him to perform well in current and in future
job.
1.2.4 Organisational Development

This element helps assuring healthy inter and intra relationships.
Moreover, it helps an employee to work in the organisation and cope up with the changes made in the
organisation.
1.2.5 Career Development of the Employee

This ensures that the employee will stay back with the organisation and it also gives job satisfaction to the
employee.
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1.2.6 Job Design

As per the competence and training given to the individual, management has to decide the job allocation of
candidates.
1.2.7 Performance Management System
The management and the employees communicate with each other and can address their concerns which ensure
smooth functioning of the organisation. Furthermore, rewarding employees gives encouragement to the workers.
1.3 Comparison between Personnel Management and Human Resource Management

1.3.1 Comparison on the basis of Beliefs and Assumption
Following table shows comparison between personnel management and human resource management on basis of
beliefs and assumptions
Dimension
Contract
Personnel Management
Careful description of written Aim to be beyond contract or
contract
else can do
Rules
Importance of planning
Impatience with rule
Guide to management plan action
Mutuality procedures and clear

Business-need
rules
Behavior referent
Norm / Customs and practice
Value/mission
Managerial task vis-a vis Labor
Monitoring
Nurturing
Nature of relations
Pluralist
Unitarist
Conflict
Institutionalised
De-emphasised
Table 1.1 Comparison of personnel management and HRM on the basis of beliefs and assumption
1.3.2 Comparison on the basis of Strategic Aspects
strategic aspects
Dimesion
Key Relations
Labor management
Customer
Initiatives
Piecemeal
Integrated
Corporate Plan
Marginal
Central
Speed of decision
Slow
Fast
Table 1.2 Comparison of personnel management and HRM on the of basis strategic aspects
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1.3.3 Comparison on the basis of Line Management

line management
Dimension
Management Role
Transactional
Transformational leadership
Key managers
Personnel/IR Specialists
General/ Business/ line managers
Communication
Indirect
Direct
Standardisation
High(e.g. parity an issue)
Low(e.g. parity not seen as relevant)
Prized management
Negotiation
Facilitation
Table 1.3 Comparison of personnel management and HRM on the basis of line management
1.3.4 Key Levers
Dimension
Selection
Separate, marginal test
Integrated, key task
Pay
Job evolution(fixed grades)
Performance-related
Conditions
Separately negotiated
Harmonisation
Labor management
Collective bargaining contracts
Toward individual contracts
Thrust of relations with

stewards
Regulated through facilities and

training
Marginalised(with exception of some

bargaining for change models)
Job categories and grade
Many
Few
Communication
Restricted Flow
Increased flow
Job design
Division of the labor
Teamwork
Conflict handling
Reach temporary truces
Manage climate and culture
Training and development
Controlled access to courses
Learning companies
Focus of the attention
Personnel
Wide ranging cultural
For interventions
Procedures
Structural and personnel strategies
Table 1.4 Comparison of personnel management and HRM on the basis of key levers
1.4 Importance of the Human Resource Management

Following points describes the importance of HRM

Lawrence aptly describes the managers job as a human relations job that functions through several major
activities and that human relationship is beginning and the end of the management job.
Human Resource Management doesnt produce any profit or neither can it earn any revenue, but it can have a
hold on the organisation that can improve productivity. Whereas, it can also produce rules and regulations by
which they can motivate workforce to improve their performance.
Human resource is an essential support function.
HRM has to manage money, market, material, machines and men.
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1.5 Role of the Human Resource Management

Following points describes the role of HRM

To enable the management to achieve organisational objectives through its workforce.
To ensure that the organisation fulfills all the government and social obligations.
To assist the organisation in building right number and type of employees to fulfill its goals.
To maintain performance standards and increase productivity through effective job design.
To provide an adequate orientation, training and development program.
To provide performance-related feedback and ensure effective two-way communication.
To utilise people to the fullest capacity and potential.
To create a climate in which employees are encouraged to develop and utilise their skills to the fullest.
To create and maintain a safe and healthy work environment.
To establish and maintain a harmonious employer and employee relationship.
To help the organisation to retain productive employees.
1.6 Human Relation Theory

Human relations management theory encompasses a rich and diverse tradition of models, ideas, techniques and
research findings that often trace their roots back to the Hawthorne Experiments conducted during the late 1920s.

Researchers putting into practice experiments at the Hawthorne plant of Western Electric (in Cicero, IL) placed
two groups of employees doing the similar work into separate rooms.
One group was treated as the control, and the second was exposed to a variety of experimental motivations such
as decreased lighting, rest pauses, increased lighting and so on.
The researchers, F.J. Roethlisberger of Harvard and W.J. Dickson of Western Electric management, predicted
the experiment to guide different levels of the management for the investigational group.
This philosophy was in vogue for the day, where traditional organisation theory conceived the organisational
system as a mechanism that could be influenced or readjusted to influence employees.
To the astonishment of the researchers, both groups increased their performance. Following analysis of these
surprising results led Roethlisberger and Dickson to conclude that the new design was tricky, which allowed
inappropriate factors to enter the design that led to these surprising results.
What happened was that employees in the control and experimental groups were treated as special.
They were given attention by management, separated from other employees, and encouraged to perform.
The basic lesson that emerged from this early research suggested that employees who are given attention by
administration, who are treated as special, and who perceive their work as important can become highly motivated
and thus become more creative.
Employees were not treated as special but rather as expendable cogs in a machine irrespective of their
performance.
The need to motivate the employees to perform better was not part of the decision-making equation at that
point of time.
Needless to say, the results of the Hawthorne Experiments, once the reasons for them were better understood
by managers and academicians, served as a launch pad for panoply of new theories and come up to the
management.
This new way of thinking that gained momentum in the 1930s and 1940s can be broadly labeled Human
Relations Management.
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1.7 Revolution of the Human Resource Management

The revolution of the Human Resource Management is held in the world long back, since from the time of the
Egyptian. Let us discuss revolution of the Human Resource Management from all over the world.

By 1920, psychologists and employment specialists in the United States started tracking the human relations
movement, which viewed workers in terms of their psychology rather than as exchangeable parts.
During the middle of the last century, larger companies, typically those in the United States that emerged after
the Second World War, recruited people from the US Military and were able to apply new selection, training,
leadership, and management development methods.
Similarly, some leading European multinationals, such as Shell and Phillips developed new approaches to
personnel development and drew on similar approaches already used in Civil Service training. Gradually,
this spreads more sophisticated policies and processes that require more central management via a personnel
department composed of specialists and generalist teams.
The role of what became known as Human Resources grew all through the middle of the 20th century. Anxiety
remained between academics who emphasised either soft or hard HR. Those professing so-called soft HR
stressed areas like leadership, cohesion, and loyalty which play important roles in organisational success. Those
promoting hard HR championed more quantitatively rigorous management techniques in the 1960s.
In the later part of the last century, both the title and conventional role of the personnel function was progressively
superseded by the emergence, at least in larger organisations, of strategic human resources management and
sophisticated human resources departments. Initially, this may have involved little more than renaming the
function, but where transformation occurred, it became distinguished by the human resources having a more
significant influence on the organisations strategic direction and gaining board-level representation.
1.8 Human Relation Concept

The Human Relation plays a major role in any organisation. The human resource program represents an attempt to
improve employee morale and motivation through an improved three-way communication and through employee
participation in the decision making processes. Human relation seeks to emphasise employee aspect of work rather
than technical or economic aspects. It seeks to make employment and working condition less impersonal. The human
relation approach emphasises policies and techniques designed to improve employee morale and job satisfaction. It
is believed that this is accompanied by increased employee efficiency and reduction in employee unrest.
1.9 To Understand Human Behavior

It assists the manager to develop a better realisation of how his/her attitude and behavior plays a part in everyday
affair.
It assists him/her to develop a keener sensitivity towards other people.
It helps him to develop an improved understanding of the problem reconciling his/her own interest and capability
with the needs and goals of the organisation of which (s)he is or will be a part.
This enables him/her to anticipate and prevent problems, or at least to resolve more effectively those that cannot
avoid.
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Summary

Human Resource Management is the strategic and logical approach of every management system.
Human Resource Management has replaced the Personnel management, as it brings together the most
valued asset of the organisation i.e. the employees of an organisation which contribute to the achievement of
the objective of the business
Selection process is carried out by taking interviews of candidates and examines their qualification and
ability
Training an individual is carried out by recognising the area where the candidate has to be trained.
Career development ensures that the employee will stay back with the organisation and it also gives job
satisfaction to the employee.
HRM has to manage money, market, material, machines and men.
References

Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing
House.
Bolden, R., Gosling, J., Marturano, A. & Dennison, P., 2003. A Review of Leadership Theory and Competency
Frameworks.
McNamara, C. All About Human Resources and Talent Management [Online] Available at: <http://
managementhelp.org/hr_mgmnt/hr_mgmnt.htm> [Accessed 28 September 2010].
Evolution of Human Resource Management [Online] Available at: http://www.articlesbase.com/training-articles/

evolution-of-human-resource-management-1294285.html> [Accessed 14 September 2012].
2010. Human Resource Management-I Video Lecture Course, Nature and Scope of HRM, [Video Online]
Available at: <http://www.youtube.com/watch?v=Fa8E3tCDIpo&feature=player_embedded> [Accessed 14
September 2012].
2010. Human Resource Management-I Video Lecture Course, Analysing and Designing Job: I, [Video Online]
Available at: <http://www.youtube.com/watch?v=S_1FyWMYBoo&feature=player_embedded> [Accessed 14
September 2012].
Recommended Reading

Suri, R. K. & Chhabra, T.N. Industrial Psychology, Sun India Publications, New Delhi.
Singh, K. & Duggal, B. R. Human Resource Management, Sun India Publications, Delhi.
Chhabra, T. N. Human Resource Management, Dhanpat Rai & Co., Delhi.
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Self Assessment
1. The Human Resource management doesnt produce any profit or neither can it develop any revenue, but it can
have a hold on the organisation that can improve the _____________.
a. productivity
b. process
c. procedure
d. power
2. Which of the following is one of the roles of the HRM?
a. To enable management to achieve organisational objectives through its workforce.
b. To ensure that the organisation fulfills all the government and social obligation.
c. To train an employee for improving communication.
d. To form the workers union.
3. The Human Resource management is the strategic and logical approach of the _________________.
a. organisation
b. institute
c. administration
d. management
4. The Human Resource management has to look after the performance of the employee and __________ them
accordingly.
a. help
b. punish
c. reward
d. compensate
5. Which of the following factor affects an organisation?
a. Poor management
b. Incompetency of the employees that can degrade the quality of the product
c. Lack of the time
d. Lack of the space
6. What are the Responsibilities of the HRM?
a. To achieve profit.
b. To enjoy work.
c. Recruitment and selection of candidate.
d. To earn money.
7. Why human Relation is necessary?
a. To develop good relation among employees and employers
b. For planning strategy
c. To avoid confusion
d. To solve the problem
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8. Role of Human Resource Management is to create and maintain a _____________work environment.

a. tense and disciplined
b. safe and healthy
c. confuse and sad
d. dominating and indiscipline
9. The managers job as a human relations job that function through several major activities and that human
relationship are beginning and the end of the management job. Who said these lines?
a. F.J. Roethlisberger of Harvard
b. Roethlisberger.
c. Dickson
d. Lawrence aptly
10. Assist the manager to develop a better realisation of how his own ______________ everyday affair play a part
in
a. attitude and behavior
b. time and money
c. strategy and planning
d. Power and status.
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Chapter II
Human Resource Management in India
Aim

elucidate the history of the Indias development in human resource management
explain how HRM in India is different from the rest of the world
highlight the scope of human resource management in India
Objectives

elaborate the key factors that have developed the human resource management in India
elucidate the human relation movement in India
explain the concern of the human resource management department
Learning outcome

understand Indias history of human resource management
identify the significance of human resource management in India
recognise the scope of human resource management in India
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2.1 Introduction
The India story for organisation success is one that is deeply rooted in its history and culture. Human Resource holds
a key position in any development process. It is the sum total of our productive effort, guided, managed and executed
through our human resource. India realised the importance of HRM in various organisations and vigorous effort is
to the break the shackles of all economic barriers. Social constraint through the application of HRM concept and
practices has also been realised by India. Nowadays, Human Resource is the only factor that can facilitate effective
use of science and technology. HR development helps to incorporate high level of skills and knowledge. This not
only improves the quality of the product but also reduces the cost of production.
2.2 Concern of the Human Resource Management Department

The Human Resource department has taken some measures, so that it can provide better opportunity for the
employees.

By carrying out job analysis
By providing equal employment opportunities for everyone
By forecasting the human resource necessity
By arranging orientation and training of the employees
By recruitment and Selection
By designing and implementing management and organisational development programs.
2.3 Significance of the Human Resource Department

Following points describe the significance of human resource department

Career management and succession planning
Managing employee relationship
Performance appraisal
Managing employee welfare and social security
Managing change and developing organisation
Industrial relations.
2.4 History of the Human Resource Management in India

In 50s -Workers were not allowed to ask any question but they only had To do their job. That was the time
when worker were treated like salves.
In 60s - Terms like manpower, staff and personnel came into existence. This year changed the employeeemployer relationship. They were treated and served well during this phase.
In Late 70s - People realised that, productivity depends on people.
1940s-1960s - The HR technique was introduced and since then administration was managed by the group
of people.Since then, IR, administrative leave, bonus, retirement and many other facilities were given to the
employees.
In 1970s-1980s regulatory managerial housing, medical leave etc. came into existence.
In 1990s union of the worker were formed.
After that, some other policies and programs were carried out by the union such as:
Productivity through people executive formulating policies; T&D programs.
In 1948 - Indian Institute of Personal Management (IIPM) at Kolkata was started. This institute started the
practice of HRM.
In 1950 - Another institute of management known as National Institute of Labor Management (NILM) at
Mumbai laid the foundation.
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In 1990 - Milestone was achieved by renaming of American Society for Personnel Administration (ASPA) as
the Society for Human Resource Management. This instituted gave new face to the HR management.
2.5 Indian Management is Unique

HRM in Indian organisation is indubitably unique.

There are some points which have favored their own organisation. They are as follows:
Hiring practices
Compensation standards
Benefits
Statutory governance
Performance linked reward
Payouts
The Indian culture is deeply rooted in its society and the collective values in it provide an open collaborative
approach at the workplace.
Hard-work, long working hours, purveyances and the need to earn money impact the HRM policies.
Availability of the educated mass of different caliber and skill allow the country to undertake different nature
of the work.
It includes lower skilled activities such as BPOs (Business Process Outsourcing) and gradually moves up the
value curve to far more advance and complex activities as KPOs (Knowledge Process Outsourcing).
Lower wages with high quality work makes India a lucrative and preferred business destination for many
MNCs.
2.6 Human Relation Movement in India

Events
Kautilya
Author
of Artha
Shastra
Description
Kautilya provides a systematic treatment of management of human resources during 4th century
B.C.
This treatise titled as Artha Shastra.
This describes the logical procedures and principles with respect to labor organisation. Such
as shreni or guild system and cooperative sector.
Kautilya provides an excellent discussion on staffing and personnel management.
This books has following terms that helped in managing the entire HRM process:
Embracing job descriptions
Qualifications for jobs
Selection procedure
Executive development
Incentive systems (Sarasa-saama-daana-bheda-danda-catura or carrot and Stick approach)
and
Performance evaluation.
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Trades based
on caste
The group of society who is engaged in following activities were designated as Brahmins:
Teaching
Sacrifice
State management.
Those specialising in fighting were termed Kshatriyas.
Individuals engaged in the areas of trade, business and agriculture were called Vaishya.
Those devoting themselves in manual work were known as Shudras. Later on, these professions
emerged to be hereditary, the transfer of skills and training from one generation to another were
practiced such as:
Goldsmiths
Weavers
Potters
Blacksmiths
Carpenters
British
Rules Era
During British rule, the Laissez-faire policy was introduced.
From the evidence of the Indigo commission, it has been seen that:
Working conditions were terrible
Living condition were subhuman and
Several abuses prevailed in Indigo plantation.
Several inhuman cruelties caused to the worker during tea plantation.
In addition to this, the Plantation Act of 1863 makes provisions that if the workers failed to
complete their period of contract they should be imprisoned for period not exceeding three
months.
Furthermore, the working conditions in the tea plantations were extremely bad.
The laborers who attempted to run away were subject to imprisonment, whipping and allied
extreme punishment.
The workers were entirely helpless in the face of the organised and powerful European
planters.
The above conditions prevailed till the performance of the Factory Act of 1881.
According to the Act, the workers employed in the factories were allowed a week off day.
As well as, provisions were also made for inspection as well as limiting the hours of work for
women workers to eleven per day.
The act further provided that the minimum age of children for employment should be seven
years.
Furthermore, that the maximum working hours for the children should not exceed seven hours
a day and that too in the dayshift.
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Movement
After First
Labor

Organisation
In 1890, the first labor organisation designated as Bombay Mill Hands Association was
established.
Subsequently, in 1905, the printers Union at Calcutta and in 1907, the Postal Union at Bombay
was established.
The Madras Labor Union was organised thereafter in 1918.
In the same year, the Central Labor Board was established to federate the different unions in
the Bombay city and the All India Trade Union Congress was organised.
It may be noted that the reliable statistics of trade union growth are not available for the period
before the formal implementation of the Indian Trade Unions Act, 1926, a landmark in the
history of industrial relations in this country.
The early thirties witnessed a highly weakened trade union movement.
However, the conditions prevailing five years before as well as during the Second World War
were conducive to the rapid growth of the trade unionism.
Between 1939-40 and 1944-45 the number of registered trade unions increased from 66.6 to
86.5 (i.e., by 29.7 percent).
There was a large scale expansion of the trade union movement after the Second World War
especially after the independence.
As Subramanian observes, there existed fourfold reasons for this rapid growth. These were
as follows:
The cumulative impact of the acute economic distress stemming from war conditions and
the removal of the wartime restrictions on strikes.
The development of three more central labor organisations and the competition among
them.
The labor policy of the Government based on adjudication rather than collective
bargaining.
The growth of the spirit of trade unionism among the workers. Accordingly, during the
period 1947-1960 while, industrial employment rose by 2.8 times.
G r o w t h i n
the industrial
sector

The total claimed union membership also went up by 2.3 times.

In 1960, 45 percent of the total industrial workforce was claimed to be unionised.
Today, the total membership is estimated to be around 4.3 million i.e., 28 percent of total
workforce.
Explicitly, during post independence period, the activities of Personnel Department in different
public and private sectors have multiplied.
According to the provisions of section 49 of the Factories Act, 1948, it became obligatory for
the employers to employ a Welfare Officer in a factory employing 500 or more workers.
Likewise, section 58 of the Mines Act, 1952, empowers the Government to specify employment
of welfare officer/officers.
It does not mean that the functions of Personnel Department are entirely limited to welfare
activities.
Table 2.1 Human relation movement in India
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2.7 Scope of Human Resource Management in India

The scope of HRM is very wide:
Personnel aspect:
This is concerned with following term:

Manpower planning
Recruitment
Selection
Placement
Transfer
Promotion
Layoff and retrenchment
Remuneration
Incentives
Productivity
Welfare aspect
It deals with working conditions and amenities such as:

Canteens
Rest and lunch rooms
Housing
Transport
Medical assistance
Education
Health and safety
Recreation facilities
Industrial relations aspect

This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary,
procedures, settlement of disputes, etc.
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Summary

HRM in India has been impacted both by its own history as well as multinational companies that came and
establish their operations in the country.
The countrys culture has played a critical role in building value for the country globally.
Kautilya Author of Artha Shastra: This treatise describes the logical procedures and principles with respect to
labor organisation. Such as shreni or guild system and cooperative sector.
Trades based on caste: In this people who belong to the special caste and tribe follows the profession from
generation
The caste system and the way it was structured to differentiate between different categories of the jobs remains
a basic frame work for the way work is distributed at the workplace.
The coming of the British to India and the technique of their administration brought immense insights into the
country on how to mange labor work.
References

Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations. Himalaya Publishing
House.
Sharma, A., 2006. Historical Development of HRM in India Final, [Online] Available at: <http://www.slideshare.
net/rajeevgupta/historial-development-of-hrm-in-india-final> [Accessed 28 September 2010].
Ten Hurdles Faced by the HR in India [Online] Available at:-<http://www.chillibreeze.com/articles_various/

hurdles-faced-by-hr-1211.asp> [Accessed 17 September 2012].
Discuss the evolution of Human resource management by drawing References from the Hawthorne Studies.
[pdf] Available at: <http://www.respawngamingcafe.com/mba/Human%20Resource%20Management.pdf>
[Accessed 28 September 2010]
2010. Human Resource Management-I Video Lecture Course, Human Resource Planning - I, [Video Online]
Available at: < http://learnerstv.com/video/Free-video-Lecture-10027-Management.htm> [Accessed 17
September 2012].
2010. Human Resource Management-I Video Lecture Course, Human Resource Planning - II, [Video Online]
Available at: <http://learnerstv.com/video/Free-video-Lecture-10028-Management.htm> [Accessed 17 September
2012].
Recommended Reading

Beardwell, L. & Holden, L., Human Resource Management, Jacrnillan, Delhi.
Frnch, V., The Personnel Management Process, Houghton Co., Boston.
Chhabra, T. N., Human Resource Management, Dhanpat Rai & Co., Delhi.
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Self Assessment
1. Kautilya provide a systematic treatment of management of human resources as early as 4th century B.C. In his
treatise titled_____________.
a. bible
b. artha-shastra
c. ayurdeva
d. vedas
2. From the 14th century B.C. to the later half of the 10th century A.D., the relationship between employer and
employees were marked ______________.
a. by justice and equality
b. by law
c. by punishment
d. by harassment
3. In Varnashram or caste system ,those devoting themselves in manual work were called as____________.
a. Brahmin
b. Goldsmiths
c. Barber
d. Shudras
4. During early British rule, there prevailed a _______________ policy toward the business.
a. Laissez-Faire
b. Non-judgmental
c. Unfair
d. Welfare
5. The Madras Labor Union was organised in_______________.
a. 1918
b. 1981
c. 1891
d. 1819
6. The professional those who transferred their skills to next generation are____________________.
a. Weavers, potters, blacksmiths
b. Contractor and managers
c. Politician and doctors
d. Extremist and union leaders.
7. Between 1939-40 and 1944-45 the number of registered trade unions increased_____________.
a. From 66.6 to 86.5.
b. From 89.9 to 86.5
c. From 66.6 to 70.5
d. From 50.6 to 76.3
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8. Availability of the____________of different caliber of the knowledge and skill allows the country to undertake
different nature of the work.
a. plenty of money
b. educated mass
c. ample of land
d. effective organisation structure
9. Hard-work, long working hours, purveyances and the need to earn money impact the ____________.
a. HRM policies
b. HRM discipline
c. HRM Regulation
d. HRM Rules
10. ____________ covers union-management relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.
a. Industrial Relation Characteristic
b. Industrial Relation Aspects
c. Industrial Relation Programs
d. Industrial Relation Plans
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Chapter III
Human Resource Planning
Aim

explain human resource planning
enlist the objectives and elements of human resource planning
describe the systematic process of recruitment, selection and induction
Objectives

highlight the need and importance of human resource planning
explain the activities in human resource planning
enlist the applications of human resource planning
Learning outcome

understand the concept of human resource management
recognise the role of human resource planning in an organisation
identify human resource planning in the organisation
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3.1 Definition
Human Resource Planning is the process by which an organisation ensures that it has the right number and kind of
people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will
help the organisation achieving its overall objectives.
Definition According to Geisler, Manpower planning is the process which includes forecasting, developing and
controlling by which a firm ensures that it has:

The right number of people
The right kind of people
At the right places
At the right time, doing work for which they are economically most useful
3.1.1 Human Resource Planning

According to the Gordon McBeath, Human Resource Planning is concerned with two things:

Planning of Manpower requirements
Planning of Manpower supplied
3.2 Benefits of HRP

HRP can benefit at both national and company/ unit levels:

At the national level it will be concerned with factors such as population, economic development, provision of
the facilities for educational and geographical mobility and it will be the government responsibility
HRP studies can even be undertaken at the trade associations level for a particular industry
3.3 Uses of HRP

Following are the uses of HRP:

Improve the utilisation of the Human resources
Match human resource related activities and future organisation objectives efficiently
Coordination between various HR programs such an employment equity plan and hiring needs
3.4 Activities Involve in HRP

According to Wickstrom, HRP consists of the following series of activities:

Forecasting future manpower requirements
Make a list of manpower resources
Recruit the correct candidate
Anticipating man power problem
Planning necessary programs for required section like

Candidate selection
Training and development of the candidate
Utilisation of the manpower as per the requirement
Transfer of the employees from one workplace to another
Promotion of the employees according to their experience, their qualification etc.
Time to time motivation of an employee
Whereas, compensation has to be given to the employees wherever any mishaps take place
The above points will ensure that, future manpower requirement are properly met
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3.5 Need for HRP

To meet with the changing needs, manpower planning is must. Every organisation has to plan for human resource
due to following reasons:

The shortage of certain categories of employees and/ or variety of skills.
The rapid changes in the technology, marketing, management, etc., resulting in to the need for new skills and
new categories of the employees.
Changes made in the organisation design and structure affecting manpower demand.
The demographic changes like the changing profile of the workforce in terms of age, sex, education etc.
The government policies in respect to reservation, child labor, working conditions etc.
The labor laws affecting the demand for and supply of labor.
Pressure from trade union, politicians, sons of the soils etc.
Introduction of computer and robots etc.
The involvement of lead time in managing the job with most suitable candidate.
3.6 Process of HRP

The term Human Resource involves human capital that operates an organisation:

The human resource planning process is defined as, a course of action that the human capital takes up for a
methodical achievement of predetermined goals.
The term includes, its management, which primarily involves issues related to the workforce
The Human Resource Planning process, demands the HR manager to first understand the business
requirement.
When the manager comprehends the nature and scope of the business, (s)he will be able to employ those who
will deliver the required performance.
When it comes to engaging the manpower, the manager should have a keen eye for spotting talent.
It ensures that the workforce is competent enough to the meet the assigned targets.
Additionally, the existing talent pool in the workplace should be taken into consideration, so that skilled people
can be employed.
The work of the HR manager is to assess the currently employed workforce and their shortcomings.
Identifying these shortcomings goes a long way in choosing an efficient workforce.
While recruiting the new employees, the HR manager must calculate the expected workload.
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For better understanding refer the block diagram given below:

Block diagram:
Long range
objectives
and plans
Short term,
Goals, Plans,
programs and
budget
Overall
requirements
for human
resources
Inventory of
human
resources
Workforce
requirement
by
occupational
categories,
job, skills
demographic
characteristics
Inventory by
occupational
categories,
job skills,
demographic
characteristics
Net new
Human
Resources
requirements
Needed
Replacements
and Additions
Action
programs for
recruiting
and selecting
needed
personnel
Procedures
for evaluating
effectiveness
of human
resource
planning
Plans for
developing,
upgrading,
transforming
in recruiting
and selecting
needed people.
Fig. 3.1 Block diagram of HRP

3.6.1 Benefits of HRP
Following are the benefits of HRP

At the national Level, it is generally done by the government and cover items like:
Population projections
Program of the economic development
Educational facilities
Occupational distribution and growth
Industrial and geographical mobility of personnel.
At the sector level, it may be done by the government central or state. It may cover manpower requirement of
the
Agricultural
Industrial
Service sector.
At the industrial sector, it may cover manpower forecast for specific industries like:
Engineering
Heavy industries
Consumer goods industries
Public utility industries.
At the level of the individual unit, it may relate to its manpower need for various departments and for various
types of personnel.
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3.7 Human Resource Planning System

HRP fulfils individual, organisational and national goals

According to Sikula, The ultimate mission or purpose is to relate future human resources to future enterprise
needs, so as to maximise the future human resource to future enterprise needs, so as to maximise the future
return on investment in the human resources. In effect, the main purpose is one of matching or fitting employee
abilities to enterprise requirements, with an emphasis on future instead of present arrangements
The objectives may be laid down for short- term estimating the future organisational structure or forecasting
the manpower requirements.
Auditing Human Resources is next step after manpower estimation. This is done by skills inventory
Skill inventory contain data about each employees skills, abilities, work preferences and other item of information
which indicate his overall value to the company
HRP involves job analysis process as well. This step involves job description and job specification
Developing a Human Resource plan is also most important. As in this phase, development and implementation
of the planning are carried out.
3.8 Responsibility of Human Resource Planning Department

Framework for Procurement
Recruitment Programe
Applicant
The Individual Sales

Forecast
Job Analysis
The Individual Sales

Forecast
Job Description
Employee
Requisition
Job Specification
Screening Devices
The Individual
Application Blank
Referance Check
Interviews

Tests
Physical Examination
Medical check
The Organisation
Induction
Fig. 3.2 Flowchart of HRP
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According to Geisler, responsibilities involved in the Human resource planning are as follows:

To assist, council and pressurise the operating management to plan and establish objectives
To collect and summarise data in total organisation term
To ensure consistency with long-range objectives and other element of total business
To monitor and measure performance against the plan
To inform about the current scenario to top management
To provide the research necessary for effective manpower and organisational planning.
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Summary

Human Resource Planning is the process by which an organisation ensures that it has the right number and kind
of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that
will help the organisation achieve its overall objectives.
The human resource planning process is defined as, a course of action that the human capital takes up for a
methodical achievement of predetermined goals.
HRP fulfils individual, organisational and national goals.
Skill inventory contain data about each employees skills, abilities, work preferences and other item of information
which indicate his overall value to the company.
Human Resource Planning involved two things, planning of manpower requirements and planning of manpower
supplied.
HRP is deemed necessary for all organisation.
There is various responsibility of HRP department like assisting, counsel, pressurise the organisation.
References

Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Bandt, A. & Haines, S. G., 2004., Successful Strategic Human Resource Planning. Centre for Strategic
Management.
HUMAN RESOURCE PLANNING Reference Tools [pdf] Available at: <http://www.exec.gov.nl.ca/exec/pss/

publications/HR_Resource_Binder.pdf> [Accessed 18 September 2012].
The Role of Human Resource Development and Management [pdf] Available at: <http://www2.aau.org/wghe/
gender/toolkit/Toolkit-module3.pdf> [Accessed 18 September 2012].
2010. Human Resource Management-I Video Lecture Course, Recruitment and Selection, [Video Online]
2012].
2010. Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal - I, [Video
Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10030-Management.htm> [Accessed 21
September 2012].
Recommended Reading

Evans, P. & Pucik, E., The Global Challenge- Framework for International Human Resource Management, Tata
McGraw-Hill Irwin.
De Cenzo D.A. & Robin, S. P, 1997. Personnel/Human Resource Management, McGraw Hill.
Ashwatappa, K., Human Resource Management, 5th ed., TMH.
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Self Assessment
1. Human Resource Planning is the process by which an organisation ensures that it has the right number and kind
of people, at the right places, at the right time, capable of____________________completing those tasks that
will help the organisation achieve its overall objectives.
a. properly and precisely
b. effectively and efficiently
c. happily and efficiently
d. willingly and effectively
2. Match the following.
Column I
Column II
1. It is generally done by the government and cover item a. At the industry level
like population projections, programme of economic
development, educational facilities, occupational
distribution, and growth, industrial and geographical
mobility of personnel.
2. It may be done by the government-central or state b. At the sector level
and may cover manpower needs of agricultural,
industrial and geographical mobility of personnel
3. It may cover manpower forecast for specific industries, c. At the level of the individual unit
such as engineering, heavy industrial, consumer goods
industries, public utility industries, etc.
4. It may relate to its manpower needs for various d. At the national level
departments and for various types of personnel.
a. 1-d, 2-b, 3-a, 4-c
b. 1-a, 2-b, 3-d, 4-c
c. 1-d, 2-c, 3-a, 4-b
d. 1-c, 2-b, 3-a, 4-d
3. Which of the following statements is true?
a. HRP fulfils individual, organisational and national goals.
b. HRP fulfils only individual goals.
c. HRP fulfils organisational goals.
d. HRP fulfils national goals.
4. Whose postulation is The ultimate mission or purpose is to relate future human resources to future enterprise
needs, so as to maximise the future human resource to future enterprise needs, so as to maximise the future
return on investment in the human resources. In effect, the main purpose is one of matching or fitting employee
abilities to enterprise requirements, with an emphasis on future instead of present arrangements?
a. Gandhi
b. Sikula
c. Rattan TATA
d. Geisler
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5. __________ contain data about each employees skills, abilities, work preferences and other item of information
which indicate his overall value to the company.
a. Skill inventory
b. Skill research
c. Skill recovery
d. Skillful guidance
6. What does job analysis process involves?
a. Job description and job specification
b. Job proof and job skills
c. Job documentation and job assistance
d. Job profile and job description
7. ___________ provide the basic premises on which the manpower planning is built.
a. Forecasting
b. Developing
c. Planning
d. Summarising
8. To____________the operating management to plan and establish objectives.
a. assist, counsel and pressurises
b. forecasting , developing and preparing
c. guiding, assisting and punishing
d. training, interacting and reacting.
9. To _____________against the plan and keep the top management informed about it.
a. provide an inadequate data.
b. provide correct data
c. provide a improper data
d. provide the research necessary data.
10. To _______________in total organisational terms and to the total business-plan.
a. monitor and measure performance
b. measure and manipulate work
c. collect and summarise
d. motivate and guide.
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Chapter IV
Recruitment and Selection
Aim

explain the concept of recruitment and selection
elucidate the complexity of recruitment and selection
explain the process of recruitment and selection
Objectives

explain the general practices that organisations use to recruit and select employees
determine which recruitment and selection practices are most effective
describe how the recruitment and selection practices affect organisational outcomes
Learning outcome

understand the critical role of recruitment
identify appropriate recruitment sources
understand the selection tools and methods
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4.1 Introduction
Better Recruitment and Selection strategies result in improved organisational outcomes. The more effectively
organisations recruit and select candidates, the more likely they will get a satisfying job done from them with
sustain quality.
4.2 Concept of Recruitment and Selection

Recruitment is the process of identifying and attracting potential candidates from within and outside an
organisation. The candidate must be capable of doing allotted work in present as well as in future.
Once candidates are identified, an organisation can begin the selection process.
Before starting the recruitment activity, organisation must consider whether recruitment should be done locally,
nationally or internationally.
The Recruitment process includes the following steps:

Collecting
Measuring and
Evaluating information about candidates qualifications for specified positions.
Organisations use these processes to increase the likelihood of hiring individuals who possess the right skills
and abilities to be successful at their jobs
There are certain steps which have to be carried out in this entire process. Those are as follows:
Manpower Planning
Job analysis
Identification of vacancies
Preparation of budget
Preparation and publication of information
Reception of the application from
Recruit
Select
Induct
We will discuss the above mention point in this chapter in detail.
4.2.1 Manpower Planning

It defines what resources the organisation needs to meet its objective. It must specify the quality of manpower
needed at a particular date in future.
4.2.2 Job Analysis Method
The Job analysis process consists of following:
Job description
It is a statement of the component tasks, duties, objectives and standard of performances expected from the
employee.
Job specification
It is a specification of the skills, knowledge and qualities required to perform the job.
Personnel specification
A reworking of the job specification in terms of the kind of person needed to perform the job.
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4.2.3 Identification of Vacancies

The requirement of the manpower plan
By job requisition from a department, branch or office which has a vacancy.
4.2.4 Preparation of Budget

The company must decide the amount to be spent on recruitment process
The method of recruitment would depend on the time available and budget allocation.
4.2.5 Preparation and Publication of Information

To bring in correct candidates to the organisation, we need to do proper publicity. Hence, it is carried out in following
way:
Advertisement

It is an effective way of seeking recruits.
It must be clearly worded, mention all the requirements and must appear in the right newspapers that are likely
to be read by potential applicants.
Job description and job specification must provide all the information required to draft the advertisement for
respective position.
Internet

It has become popular method of recruiting people.
Many organisations have their own web pages where perspective applicants can obtain data about the
company.
Moreover, the companys other information that gives the applicant idea of scope of the company in the market.
This are like
Product and service
Employment opportunities and
Application procedures.
4.2.6 Reception of Application Form

Once the application forms are received, they must be screened for eligibility criterion. Those forms, which do
not meet the minimum required standards, must be rejected. The minimum criterion are as follows like:
Age
Qualification
Experience
Legal issues
Salary expectation
Lag of certificate
A formal interview must be conducted for the remaining students by properly communicating to them the
following things:
The date
The day
Time of the interview and
The place of the interview.
These candidates should pass through the selection procedure before their final placement.
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4.3 Other Methods of Recruitment

Employment agencies and head hunters:

Recruitment through outside agencies is generally undertaken as follows:

When the company does not have the time or human resources to spend on the process
When the company wishes to maintain confidentiality
When the company feels that they would be able to attract a wider range of people.
Employment agencies and head hunting firms are retained by the organisation to identify the suitable candidates
for their company.
Employment agencies normally recruit at lower and middle management levels whereas headhunter concentrates
their effort on higher-level managerial position.
The recruitment agencies are paid a certain percentage of the incumbents salary as recruitment fees.
There are some other sources as well that can fulfill the requirement. Those are as follows:
4.3.1 Campus Recruitment

Organisations visit campus to recruit for entry-level position
The procedure is to give a brief talk about company to the interested candidates
Then held group discussion
Personnel interview.
4.3.2 Walk-In Interview

On urgent basis, the recruitment may be conducted by walk-in interviews
The date and time is specified in the local newspaper
Potential candidates are asked to report for the interview along with their documents.
4.3.3 Employees Referrals

If the company feels that they can obtain candidate by word of mouth, they place an advertisement on the
companys notice broad stating their requirement
Friends and relatives of present employees are also a good source from which employees may be drawn
When the labor market is very tight, large employers frequently offer their employees bonus or prize for any
referrals that are hired and stay with the company for specific length of time
Some companies keep the record of the former employees whose record was good
Whenever there are new job openings for which they are qualified, then these former employees are informed
This process has a drawback that is known as nepotism which means, when a person of ones community or
caste are employed, who may or may not be fit for the job
Because of this the eligible candidate may lose the opportunity and undeserving candidate gets a job.
4.3.4 Labor Unions

Firms with closed or union shops must look to the union in their recruitment efforts
Disadvantage of a monopolistically controlled labor source are offset, at least particularly, by saving in recruitment
costs
With one-fifth of the labor force organised into union, organised labor constitute an important source of
personnel.
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4.3.5 Indoctrination Seminars

The colleges professors are arranged to discuss the problem of companies and employers
Professors are invited to take part in these seminars
Visit to plants and banquets are arranges so that the participant professors may be favorably impressed
They may later speak well of a company and help it in getting required personnel.
4.3.6 Unconsolidated Application

For position in which large number of candidates are not available from other sources
The companies may gain keeping files of applications received from candidate who make direct enquiries about
possible vacancies on their own or may send unconsolidated applications
The information may be index and filed for future use when there are openings in these jobs.
4.3.7 Nepotism

The Hiring of relatives will be an inevitable component of recruitment programs in family-owned firms
Such a policy does not necessarily coincide with hiring on the basis of merit
But interest and loyalty to the enterprise are offsetting advantage.
4.3.8 Leasing

To adjust to short-term fluctuation in personnel needs
The possibility of leasing personnel by the hour or day should be considered
This practice has been particularly well-developed in the office administration.
The firm not only obtains well-trained and selected personnel but avoids any obligation in pensions, insurance,
and other fringe benefits.
4.3.9 Voluntary Organisations

Voluntary organisation such as private clubs, social organisations might also provide employees
The following resources also can be considered that can give helping hand in recruiting the employees for the
organisation:
Handicaps
Widowed or married women
Old persons
Retried hands
4.3.10 Computer Data Bank

When a company desires a particular type of employee job specifications and requirement are fed into a computer
where they are matched against the resume data stored therein.
The output is a set of resume for individual who meet the requirement. This method is very useful for identifying
candidates for hard-to-fill positions, which call for an unusual combination of skills.
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4.4 Recruitment and Selection Policy

4.4.1 Selection Policy

In order to initiate the procedure for selection, we must satisfy the three preliminary requirements:
There must be the authority to select, which comes from the employment requisition, as developed through
analysis of the work load and work force
We must have a standard of employees with which we can compare prospective employees
This is done by job specification as developed through job analysis
A planned recruitment programme provides us with these applicants.
The selection procedure is essentially a series of methods of securing relevant information about the
applicant
The information obtain can be compared with the job specification and standard of personnel if the applicant
qualifies, he or she is advanced to next step. Thus, the job specification and job applicant are interrelated at
each step in the selection procedure.
4.4.2 Recruitment Policy

After determining the human resource requirement, the recruitment and selection process can begin very often,
recruitment is misunderstood as filling in of vacancies
The real purpose of recruitment is not to fill up a vacancy but to add a person to the staff whom the management
expects to become important in the future scheme of the things
Dale Yoder and others point out: Recruitment is a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting manpower in adequate
number to facilities effective selection of an efficient working force.
In term of the Stahl, "Recruitment is a corner stone of the whole personnel structure".
Sources for recruiting should be periodically checked
For this purpose, the criteria may be the cost per applicant, the applicant/ hiring ratio, tenure, performance
appraisals etc.
Recruiting should take into consideration ethical practices, such as use of truth in hiring i.e. telling an applicant
all about the firm and its position both good and bad so that the candidate can decide whether or not to join the
firm.
A successful and effective, recruitment program necessitates a well-defined recruitment policy, a proper
organisational structure, and procedures for locating sources of manpower, suitable methods, techniques for
utilising these and a constant assessment to achieve improvement.
4.5 Recruitment Practice In India

The different sources for recruitment in India have been classified as below:

Within the organisation
Badli or temporary workers
Employment agencies
Causal callers
Applicants introduced by friends and relatives in the organisation
Advertisement and labor contractors
All public sector enterprises are required to consider candidates sponsored by the employment exchanges
In most cases, confine the selection to these candidates
However, the private sector is not under any such formal obligation
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Under the apprentices Act 1961, young craftsmen having received pre-employment training in industrial training
Institutes have to be employed by specialised industries during training period as a percentage of the total
number of regular employees
Reservation of 25% of vacancies for scheduled castes and scheduled tribes candidates and preferential treatment
of displaced persons is a part of statutory requirement of government and public sector employment in India
The requirement of supervisory personnel in all organised industries is generally by promotion from within the
organisation
Some industries first recruit a number of young persons as management trainees and after 2 or 3 years absorb
them completely. Executives too are mostly promoted from within.
4.6 Selection Technique

Employee Selection is the process of putting the right men on the right job
It is a procedure of matching organisational requirements with the skills and qualifications of people
Effective selection can be done only when there is effective matching
By selecting best candidate for the required job, the organisation will get quality performance of employees
Moreover, organisation will face less of absenteeism and employee turnover problems
By selecting right candidate for the required job, organisation will also save time and money
Proper screening of candidates takes place during selection procedure
All the potential candidates who apply for the given job are tested. But selection must be differentiated from
recruitment, though these are two phases of employment process
Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job
It creates a pool of applicants. It is just sourcing of data, while selection is a negative process as inappropriate
candidates are rejected here.
Recruitment precedes selection in staffing process.
Selection involves choosing the best candidate with best abilities, skills and knowledge for the required job.
4.7 Evaluation and Selection Criteria

The criteria usually can be best summarised in the following categories:

Education
Experience
Physical Characteristics
Personal Characteristics
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4.8 The Selection Process

The Employee selection process takes place in following order:
4.8.1 Preliminary Interviews

It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the
organisation
The skills, academic and family background, competencies and interests of the candidate are examined during
preliminary interview
Preliminary interviews are less formalised and planned than the final interviews
The candidates are given a brief up about the company and the job profile and it is also examined how much
the candidate knows about the company
Preliminary interviews are also called screening interviews.
4.8.2 Application Blanks

The candidates who clear the preliminary interview are required to fill application blank
It contains data record of the candidates such as details about age, qualifications, reason for leaving previous
job, experience etc.
A specimen of a Short Application Form for Unskilled is as follows:

Manual Employees
ENISION GRAPHICS PVT. LTD
BANGLORE-XXX XXX
Date: Name: Address:
Date of Birth:
Single/ Married/Widowed/Divorced: Position Applied for:
Detail of previous jobs, including present one, if still employed:
Name and
Address of
the Employer
Type of Work
Done
To
From
Reason for
Leaving
1
2
3
Table 4.1 Application blanks
Physical Disabilities:
Have you ever worked for this concern before? : Yes/ No
Engaged/ Not Engaged. Department
Due to start..
interviewer..
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4.8.3 Check of References

The use of references is common in most selection procedures
It involves minimum of effort and time/money
The objective is to obtain evaluation of prior employers and professional colleagues, who have known the
candidate in a professional capacity
Checks on references are made by mail or telephone, and occasionally in person, and by using a reference
form
4.8.4 Written Tests

Various written tests are conducted during selection procedure like

Aptitude test
Intelligence test
Reasoning test
Personality test
These tests are used to objectively assess the potential candidate.
They should not be biased.
4.8.5 Employment Interviews

It is a one to one interaction between the interviewer and the potential candidate
It is used to find whether the candidate is best suited for the required job or not. But such interviews consume
time and money both
Moreover the competencies of the candidate cannot be judged
Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should
be there in room. There should be an honest communication between candidate and interviewer.
4.8.6 Medical Examination

Medical tests are conducted to ensure physical fitness of the potential employee
It will decrease chances of employee absenteeism.
4.8.7 Appointment Letter

A reference check is made about the candidate selected and
Then finally he is appointed by giving a formal appointment letter.
4.8.8 Informal Interview

This is the type of interview that is conducted in an informal setting
The interview can be held at the residence of the managing director for the post of a legal consultant
Similarly, many senior level job assignments are finalised during dinner at some hotel or restaurant.
4.8.9 Formal Interview

This is the interview that is conducted most commonly for recruitment of personnel
In such interviews the candidate is called for an interview at a particular location and time
The candidate is required to answer questions asked, based on the outcome of which he is rated for selection.
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4.8.10 Patterned Interview

To maintain a uniform approach there are few interviews where a set pattern of questions are asked
In such patterned interview the choice of person conducting the interview is restricted and the selection criteria
are also limited within a set frame.
4.8.11 Depth Interview

In such an interview, questions are based upon a specific area of the interviewees interest and the person has
to answer in detail
The academic competence and knowledge is tested thoroughly in such type of interviews.
4.8.12 Stress Interview

For the selection of supervisor and executive positions, it is of equal importance to judge the suitability of
individual competence based on stress endurance along with knowledge and intelligence.
Therefore a candidate is required to appear for the stress interview.
In such interviews a person is required to respond to a tress situation and the assessment is done on the basis
of the response.
4.8.13 Group Interview

When we are required to perform a task in a group the selection is done in a group interview and the candidate
along with a group is asked to solve a particular problem.
The performance and behavior is, however, assessed and rated individually.
4.8.14 Panel Interview

For a senior level position selection, a panel of experts selects the candidate
Personality and behavior traits are very important for performing well in such interviews
Interviews, at times, become a hurdle between success and failure for persons just out of college
One has to present ones competence for a particular job within a short period
The candidate is assessed for his/her

Behavior
Mannerism
Attitude
IQ
Stress enduring
Capability
General awareness
Knowledge of the subjects studied and mental frame of mind to take up the position for which (s) he has
applied.
For a young student it is important that (s)he prepares well for crossing this hurdle
(s)He must be ready for the competitive written examinations as well as for the face to face interview.
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4.9 Approval by Manager

In executing the recruitment unit screening functions, the emphasis tends to be more on formal qualifications
and general suitability
When the manager takes over, the emphasis tends to switch toward more specifically job oriented worker
characteristics such as training and relevant past experience.
4.10 Medical Examination

The medical examination is an employment step found in most businesses
It can vary from a very comprehensive examination and matching of an applicants physical capabilities to job
requirements to a simple check of general physical appearance and well-being
In the selection procedure the physical examination has at least three basic objectives:
First, it serves to ascertain the applicants physical capabilities
The second objective of the examination is to protect the company against unwarranted claims under
workerscompensation laws, or against lawsuits for damages
And the final objective is to prevent communicable diseases from entering the organisation.
4.11 Induction

Induction is concerned with introducing or orienting a new employee to the organisation
Organisations could have induction programs of duration of 1-3 days and even up to 1/3/6 months.
Common objectives of an Induction program can be listed as covering:

Overview of the organisation, its history, its heros and important stories in the life of the firm so far like
mergers, acquisitions, JVs, expansion in new countries etc.
Organisation Vision / Mission and Objectives statement, its structure, hierarchy of the top and the senior
management, structure of the teams/divisions, focus on the division the employee/s is/are joining
Overview of the HR policies and processes and introduction to the Facilities team, IT team and other relevant
teams per the location of joining
Handover to the manager and induction at a team level on specificities related to the job and its
responsibilities
Organisations also build processes by which the new employee provides feedback on the on-boarding
experience and use this information to improve the Induction process
In as much as various firms report that over half of their voluntary resignations occur within the first 6
months, proper orientation can do much to reduce this problem and its accompanying costs.
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Summary

Recruitment is the process of searching for prospective employees and stimulating them to apply for the job
in the organisation.
Recruitment or manpower selection process is the first step in the employment of labor.
Sources for recruiting should be periodically evaluated.
Recruitment is the process of identifying and attracting potential candidates from within and outside an
organisation. The candidate must be capable of doing allotted work in present as well as in future.
Organisations could have induction programs of duration of 1-3 days and even up to 1/3/6 months.
A successful and effective recruitment program necessitates a well-defined recruitment policy, a proper
organisational structure, and procedure for locating sources of manpower resources.
References

Rao, P. S., 2010. Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing
House.
Bandt, A. & Haines, S. G., 2004., Successful Strategic Human Resource Planning. Centre for Strategic
Management.
Gusdorf, L. M., Recruitment and Selection: Hiring the Right Person [pdf] Available at: <http://www.shrm.
org/education/hreducation/documents/09-0152%20gusdorf_instructor_notes.pdf> [Accessed 21 September
2012].
French, R. & Rumbles, S., Recruitment and Selection [pdf] Available at: <http://www.cipd.co.uk/NR/
rdonlyres/01F95685-76C9-4C96-B291-3D5CD4DE1BE5/0/9781843982579_sc.pdf> [Accessed 21 September
2012].
2010. Human Resource Management-I Video Lecture Course, Performance Evaluation and Appraisal, [Video
Online] Available at: <http://learnerstv.com/video/Free-video-Lecture-10031-Management.htm> [Accessed 21
September 2012].
2010. Human Resource Management-I Video Lecture Course, Training and Development, [Video Online]
2012].
Recommended Reading

Parweek, U. & Rao T. V., 1999. Designing and Managing Human Resource Systems, Anmol Publishers.
Dessler, G., Human Resource Management, 10th ed., Person Publications.
Patnayak, B., 2005. Human Resource Management, PHI 3IE.
39/uts
Self Assessment
1. Recruitment is the process of ____________________potential candidates from within and outside an
organisation.
a. spotting and grabbing
b. convincing and testing
c. identifying and attracting
d. motivating and spoiling
2. ____________ a specification of the skills, knowledge and qualities required to perform the job.
a. Job specification
b. Job description
c. Job development
d. Job analysis
3. The candidates should pass through the selection procedure before their
a. final placement
b. final result
c. final exam
d. final revision
4. ________ traits are very important for performing well in interviews.
a. Manners and communication
b. Education and attitude
c. Personality and behavior
d. Experience and qualification
5. For the selection of supervisor and executive positions, it is of equal importance to judge the suitability of
individual competence based on along with knowledge and intelligence.
a. stress endurance
b. stress giving
c. stress creating
d. stress increasing
a. Recruitment is considered to be a negative process.
b. Recruitment is not a negative process
c. Recruitment is positive process
d. Recruitment is most important process
a. Selection is not a negative process
b. Selection is a negative process
c. Selection is positive process
d. Selection is effective process
40/uts
8. ___________ creates a pool of applicants.

a. Recruitment
b. Selection
c. Interviewing
d. Inducting
9. Once a determination of human resource requirement, the
a. recruitment and selection
process can begin.
b. advertising and interviewing

c. planning and managing
d. advancing and balancing
a. Recruitment is misunderstood as filling in of vacancies.
b. Recruitment is understood as filling in of vacancies.
c. Recruitment is filling of vacancy.
d. Recruitment is not just filling in vacancy.
41/uts

Unit 1

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Unit 1

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Chapter I

Human Resource Management-An Introduction

explain the role of human resource management in an organisation

enlist the responsibilities of human resource management (HRM)

elucidate the human relation concept

explain human resource management

explain the responsibilities of human resource management

describe about the revolution of human resource management

understand the responsibilities of human resource management

differentiate between personnel management and human resource management

recognise human resource management as a career option

Human Resource Management

Lack of resources that can reduce the productivity.

Lack of constructive motivation can lower employees involvement in work.

Lack of supervision can lead to inefficiency.

1.2 Responsibilities of Human Resource Management

1.2.2 Recruitment and Selection of Candidates

1.2.3 Training and Development of Employee

This element helps assuring healthy inter and intra relationships.

1.2.5 Career Development of the Employee

1.2.6 Job Design

1.3 Comparison between Personnel Management and Human Resource Management

Impatience with rule

Guide to management plan action

Mutuality procedures and clear

Norm / Customs and practice

Managerial task vis-a vis Labor

Human Resource Management

Human Resource Management

1.3.3 Comparison on the basis of Line Management

Human Resource Management

General/ Business/ line managers

High(e.g. parity an issue)

Low(e.g. parity not seen as relevant)

Human Resource Management

Separate, marginal test

Integrated, key task

Job evolution(fixed grades)

Collective bargaining contracts

Toward individual contracts

Thrust of relations with

Regulated through facilities and

Marginalised(with exception of some

Job categories and grade

Division of the labor

Reach temporary truces

Manage climate and culture

Training and development

Controlled access to courses

Focus of the attention

Wide ranging cultural

Structural and personnel strategies

1.4 Importance of the Human Resource Management

Human resource is an essential support function.

HRM has to manage money, market, material, machines and men.

1.5 Role of the Human Resource Management

To enable the management to achieve organisational objectives through its workforce.

To provide an adequate orientation, training and development program.

To provide performance-related feedback and ensure effective two-way communication.

To utilise people to the fullest capacity and potential.

To create and maintain a safe and healthy work environment.

To establish and maintain a harmonious employer and employee relationship.

To help the organisation to retain productive employees.