Module 2: Human Capital Planning and Employee Hiring

Nature of Job analysis, Job Design, Job evaluation, Human Resources Planning, demand
forecasting, HR supply forecasting, Need for and factors influencing HRP, Career planning,
Promotion, transfer, demotion and separation, employee hiring, nature of recruitment, sources
of recruitment internal and external employee selection, process of employee selection, new
recruitment practices, job portals, employee reference , campus recruitment.

Job analysis: Job Analysis is a formal and detailed examination of jobs.

It is a systematic investigation of the tasks, duties, and responsibilities necessary to do
a job.
Nature of Job analysis: job tasks, job duties, job responsibilities.
Job description: is a written statement of what the job holder does how it is done,
under what conditions it is done and why it is done. Eg: job title, job summary, job
activities, working conditions, social environment.
Job specification: summaries the human characteristics needed for satisfactory job
completion.
Uses of Job Analysis

Human resources Planning

Recruitment
Selection
Placement and orientation
Training
Counselling
Employee safety
Performance appraisal
Job design and redesign
Job evaluation

The Process of Job Analysis:

Organizational analysis: overall picture of various jobs in the organization has to be
obtained
Selection of representative positions to be analyzed: keeping the cost and time
constraints in mind.
Collection of job analysis data: collection of data on the characteristics of the job the
required behaviour and personal qualification needed to carry out the job effectively.
Preparation of job description: describing the contents of the job in terms of functions,
duties, responsibilities, operations etc.
Preparation of job specification: is a written statement of personal attributes in terms
of traits, skills, training, and experience needed to carry out the job.

Introduction
Human Resource Planning is a crucial part of Human Resources. It is a kind of budgeting that
is done by a company in order to monitor & maintain employees in the organisation. Rapid
globalisation has also put force to this cause of planning of resources i.e. human capital or
human workforce both in forms of skilled & non- skilled. The competitive environment as
well as the strategic doings of the company like mergers, acquisitions, diversification,
liquidation, joint ventures etc. bring Human Resource Planning into the picture. HRP (Human
Resource Planning) is becoming a vital organizational element for maintaining a competitive
advantage and reducing employee turnover.
Explain the Meaning, definition and Nature of HRP?
Meaning
In simple terms The right people at the right place at the right time is Human Resource
Planning.
Human resources planning is a process that identifies current and future human resources
needs for an organization to achieve its goals. Human resources planning should serve as a
link between human resources management and the overall strategic plan of an organization.
Definition
The process that links the human resource needs of an organization to its strategic plan to
ensure that staffing is sufficient, qualified, and competent enough to achieve the
organization's objectives.
E.W. Vetter viewed human resources planning as a process by which an organisation should
move from its current manpower position to its desired manpower position. Through
planning management, strive to have the right number & right kind of people at the right
place at the right time, doing things which result in both the organisation and the individual
receiving maximum long-run benefit.

Nature

Acquisition of human resource is one of the major tasks in any organization. Today acquiring
a right person is a challenging task but retaining the person in the organization is more
challenging one because for a skilled person the industry is open and any organization prefers
to possess the right mix of people in the organization to perform the organizational tasks and
improve the productivity and profitability.
Explain the Objectives of HRP?
An Organisation should look to follow certain objectives in order to carry out effective HRP
like:
a)
b)
c)
d)

Recruitment & Retaining of human resources which is of required quality & quantity
Foreseeing employee turnover, reducing it & filling up consequent vacancies
Cater to the needs of diversification & expansion plans
Understanding the impact of changing technology on work ,employees & future

human resource requirements

e) Improving skills, standards, discipline, knowledge
f) Assessment of surplus or shortage of human resource & making arrangements to
counter it
g) Maintain stable industry relations structure of organisation
h) Counter imbalances due to unavailability of human resources of right kind & number
i) Estimate cost of human resources to company
Explain the Importance of HRP?
Human resources planning is very important as it helps in determining the future human
resources need of the organization. The effectiveness of human resources planning process
decides the adequacy of available manpower in the organization. In case the process of
human resources planning is not proper it may result in surplus or deficiency of manpower.
1. Future Manpower Needs
Human resource planning ensures that people are available to provide the continued smooth
operation of an organization. It means, human resource planning is regarded as a tool to
assure the future availability of manpower to carry on the organizational activities. It
determines the future needs of manpower in terms of number and kind.
2. Coping with Change

Human resource planning is important to cope with the change associated with the external
environmental factors. It helps assess the current human resources through HR inventory and
adapts it to changing technological, political, socio-cultural, and economic forces.
3. Recruitment of Talented Personnel
Another purpose of HR planning is to recruit and select the most capable personnel to fill job
vacancies. It determines human resource needs, assesses the available HR inventory level and
finally recruit the personnel needed to perform the job.
4. Development of Human Resources
Human resource planning identifies the skill requirements for various levels of jobs. Then it
organizes various training and development campaigns to impart the required skill and ability
in employees to perform the task efficiently and effectively.
5. Proper Utilization of Human Resources
Human resource planning measures that the organization acquires and utilizes the manpower
effectively to achieve objectives. Human resource planning helps in assessing and recruiting
skilled human resource. It focuses on the optimum utilization of human resource to minimize
the overall cost of production.
6. Uncertainty Reduction
This is associated with reducing the impact of uncertainty which are brought by unsudden
changes in processes and procedures of human resource management in the organization.
Discuss the Steps of HRP?
1. Forecasting the Demand for Human resources
2. Preparing manpower inventory/ supply forecasting
3. Determining Manpower gaps
4. Formulating HR Plans
1. Forecasting the demand for Human resources
Most firms estimate how many employees they require in future.

The demand for human talent at various levels is primarily due to External challenges,
economic development, Political, legal, social and technical changes, competition,
Organizational decisions. E.g. If Britannia industries Ltd expects higher demand for
biscuits and bread, the long-term HR plan must take this into consideration.
Forecasting techniques are:
Expert forecasts: In this method, managers estimate future human resource requirements,
using their experiences and judgments to good effect.
Trend analysis: HR needs can be estimated by examining past rates of change can be
projected into the future or employment growth can be estimated by its relationship with a
particular index.
other methods: several mathematical models, with the aid of computers are also used to
forecast HR needs, Eg: regression, optimization models, budget and planning analysis.
2. Preparing Manpower Inventory (supply forecasting)
To find out the size and quality of personnel available within the organization to man for
various positions.
Every organization will have two major sources of supply of manpower
a) INTERNAL LABOUR SUPPLY b) EXTERNAL LABOUR SUPPLY
INTERNAL LABOUR SUPPLY
Supply of labour from within organization. Frequent manpower audits may be carried out
to find out the available talent in terms of skills, performance, and potential.
Forecasting techniques
1. Staffing table

3. Skills inventory

2. Markov analysis

4. Replacement chart

5.

1. Staffing Table

6. It shows the number of employees in each job. It helps to classify the employees on
the basis of age, sex, position, categories, experience, qualification skills etc.A study of the
table indicates whether current employees are properly utilized or not.
7.

2. Markov Analysis

8. This techniques uses historical rates of promotions , transfer and turnover to estimate
future available in the workforce. Based on the past probabilities, one can estimate the no.
of employees who will be in various positions with the organization in future.
9.

3. Skills Inventory

10. A skills inventory is an assessment of the knowledge, skills, abilities experience and
career aspirations of each of the current employees. This record should be updated at least
every 2 years and should include changes such as new skills, additional qualifications,
changed jobs duties etc.
11. 4. Replacement CHART
12. It shows the profile of job holders departments- wise and offers a snapshot of who
will replace whom if there is a job opening
13. INTERNAL LABOUR SUPPLY
14. When the organization grows rapidly, diversifies into newer areas of operations or
when it is not able to find the people internally to fill the vacancies, it has to look into
outside sources.
15. 3. Determining Manpower gaps
16. The existing number of personnel and their skills are compared with the forecasted
manpower needs to determine the quantitative and qualitative gaps in the workforce. A
reconciliation of demand and supply forecasts will give us the no. of people to be
recruited or made red undated (retrenchment) as the case may be. This forms the basis for
preparing the H.R plans.
17. 4. Formulating HR plans
18. Organizations operate in a changing environment. HR requirement also change
continually. HR Plans includes Policies, programmes, strategies (recruitment, selection,
training, promotion, retirement, replacement etc.
19. Brief note on HRD?
20. HRD is a positive concept in human resource management. It aims at overall
development of human resources in order to contribute to the well being of the

employees, organization and the society at large. Where balance sheets show people
on the debit side, HRD seeks to show them as assets on the credit side. HRD aims at
helping people to acquire competencies required to perform all their functions
effectively and make their organization do well.
21. According to Prof. T.V. Rao, HRD is a process by which the employees of an
organization are helped in a continuous and planned way to: 1. acquire or sharpen
capabilities required to perform various functions.2. Develop their general capabilities
as individuals and discover their inner potential.
22. Process of HRD
a)
b)
c)
d)
e)

Forecasting manpower needs based on HRD/ Recruitment based on HRD

Appraisal of Potential/ Appraisal of Performance
Finding the Employees present capabilities & potential
Estimating capabilities to be acquired by employees
Different inputs put in such skills, knowledge, behaviour, Values etc.

23. Explain HRP process in detail with examples?

24.

Human Resource Planning

25. Definition: The ongoing process of systematic planning to achieve optimum use of an
organization's most valuable asset - its human resources.
26. The objective of human resource (HR) planning is to ensure the best fit between
employees and jobs, while avoiding manpower shortages or surpluses.
27. The three key elements of the HR planning process are
1. Forecasting labor demand
2. Analyzing present labor supply
3. Balancing projected labor demand and supply.
28. Objectives and Importance of Human Resource Planning:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Assessing manpower needs for future and making plans for recruitment and selection.
Assessing skill requirement in the future.
Determining training and development needs for the organization.
Determining surplus and shortage of the staff and avoiding unnecessary detention or
dismissal.
Controlling wages and salary costs.
Ensuring optimum use of HR.
Helping organization to cope up with Technological advancements.
Ensuring high labor productivity.
Focus on Career planning of every employee.

10. Taking care of succession planning.

11. Ensure promotion of employees in systematic manner.
12. It involves hiring, development and retention of HR.
29. Human Resource Planning Process:
30. 1. The mission & vision of the organization: The organization should be clear about
its mission & objectives. The manpower planning must be integrated with other
business policies such as profitability, production, sales &development. Any change
in the business objectives would certainly affect the manpower planning. The ultimate
aim of manpower planning should be to relate future human resource to future
enterprise need so as to maximize the future ROI.
31. 2. SWOT Analysis: After organization has fixed the goals & objectives, the next step
is the corporate assessment. The company now begins to analyze its goals, current
strategies, external environment, strengths & weaknesses, opportunities &threat, to
know whether they can be able to achieve with the current human resource. The
SWOT ( Strengths, weakness, opportunities, & threats).
32. The SWOT analysis will give the clear picture about the organization resources such
as capital& worker it will also indicate departmental abilities such as training &
development, marketing, accounting, research and development & management
information system. This SWOT analysis serves as the link between the organization
goals & the way or direction in which the organization should go to meet its
objectives.
33.
34. 3. Man power Forecasting: Forecasting of future manpower requirement is the most
important part of manpower planning. It is done on the basis of production & sales
budgets, workloads analysis, work force analysis, estimated absenteeism & turnover.
The future manpower requirements should be forecasted quantitatively& qualitatively.
There are several factors which need to be looked upon before forecasting.
35. (a) Employment Trend: The manpower planning committee should compare &
analyze the trend of last five year to forecast the manpower requirements.
36. (b) Productivity: Manpower requirements are also influenced by improvement in
productivity. The important three aspects are
37. . Better utilization of existing manpower.
38. . Improvement in technology.
39. . Matching of skills with job requirement.
40. (c) Absenteeism: Absenteeism is a situation when a person fails to come for work
when he is scheduled to work. While estimating demand for manpower the prevailing
rate of absenteeism in the organization should be considered.
41. (d) Expansion & Growth: Expansion & growth plans of the organization should be
carefully analyzed to judge their impact on manpower requirement in future.
42. Forecasting Techniques:

(a) Expert Forecasts: Demand is modified by retirements, terminations, resignations,

deaths and leaves of absence. Past experiences make these occurrences quite
predictable.
(b) Trend analysis: HR needs can be estimated by examining past trends.
43. Eg: 2001-02
Production of units: 5000
44.
2002-03
No of workers
: 100
45.
2003-04
Ratios
: 100: 5000
46.
2003-04
Estimated Production: 8000
47. Number of workers required
: 8000*100/5000=160
48. To proceed systematically HR generally follow three steps:
a) Work Force Analysis:
49.
The average loss of manpower due to leave, retirement, death, transfer,
discharge etc. during the last 5 years may be taken into account.
50.
51.
52.
53.
54.
55.
IN
OUT
56.
Transfers in---------------------------------------------------------->Job Hopping
57.
Transfers out
58.
Retirement
59.
Recruits in------------------------------------------------------------>VRS Scheme
60.

Discharge or
dismissal

61.
62.

Terminations
Promotions in--------------------------------------------------------->Resignations

63.

Retrenchment

64.

Attractions in
other companies etc.

65. Fig: Manpower flows in a company

b) Work Load Analysis:
66.
The need for manpower is also determined on the basis of work-load analysis,
wherein the company tries to calculate the number of persons required for various jobs
with reference to a planned output-after giving weight age to factors such as
absenteeism, idle time etc.
67.
68.
E.g.: Planned output for the year
10000 pieces
69.
Standard hours per piece
3
hours
70.
Planned hours required
30000 hours
71.
Productive hours per person
1000 hours
72.
Number of workers required
30

73.
c) Job Analysis:
74.
Job analysis helps finding out the abilities or skills required to do the job
efficiently. It means a detailed study of jobs to identify the qualifications and experience
required for them.
75.
4. Manpower Plan: After forecasting about the right type & number of people required the
next phase is to plan, how the organization can obtain these people. Programs &
strategies need to developed for recruitment, selection, training, internal transfers,
promotions &appraisal so that the future manpower requirement can be met.
76. Development plans are designed to ensure a continuing supply of trained people to
take over jobs as they fall vacant either by promotion or recruitment or through
training. In this way, shortages or redundancies can be avoided in the long run.
77. Preparing Manpower Inventory is a very important step for the plan to be
implemented successfully.
78. Man Power Inventory: It is the records of staff in a commercial organization. It helps
to find out the size and the quality of the employees presently in the organization at
various positions. Every organization will have two major sources of supply of
manpower: External and Internal.
a) Internal Labor Supply:
1. Staffing Table: It shows the number of employees in each job. It tries to classify
employees on the basis of age, sex, position, category, experience, qualification,
skills etc. A study of the table indicates if the current employees are properly
utilized or not.

79.
80.
2. Markov Analysis: It uses the historical data of promotions, transfers, and turnover
to estimate the future availabilities in the workforce. Based on the past
probabilities one can estimate the number of employees who will be in various
positions with the organization in future.
81. 20032004

89. Store
Managers
90. (n=15)
91.
92.
93.

82. Stor
e
Ma
nag
ers
94.
80%
95.
96.
97.
98.
12

83. Asst.
Store
manag
er

84. Sect
ion
Hea
d

85. Dep
t.
Hed
s

86. Sales
Execu
tive

87. Exit
88.

99.

100.

101.

102.

103.

20%

104.
105.
106.
107.

108.
109.
A
sst. Store
Manager
110.
(n
=36)
111.
112.

131.
S
ection
132.
H
eads
133.
(n
=94)
134.
135.
154.
155.

113.
11%

123.

124.

125.

83%

6%

114.

119.

127.

115.

120.

128.

116.

121.

129.

117.

122.

130.

4
136.

30
137.

2
150.

159.
D

118.

3
126.

141.

145.

138.

142.

146.

151.

139.

143.

147.

152.

140.

144.

148.

153.

11
160.

63
161.

8
166.

14
176.

11%

66%

10%

8%

72 %

149.

171.

2%

15%

16%

epartmen
tal Heads
156.
(n
=288)
157.
158.

181.
182.
S
ales
Executiv
es
183.
(n
=1440)
184.
185.
201.
202.
F
orecasted
Supply
215.

186.

187.

162.

167.

172.

177.

163.

168.

173.

178.

164.

169.

174.

179.

165.

170.

175.

180.

29
188.

207
189.

6
193.

74%

46
197.

20%

190.

194.

198.

6%

191.
192.
86

195.
196.
1066

288

205.

207.

209.

211.

213.

204.
16

206.

208.
92

210.
301

212.
1072

214.
353

41

217.
218.
219.
3. Skills Inventory: It is anss assessment of the knowledge, skills, abilities,
experiences and career aspirations of each of the current employees. It should be
updated atleast every two years.

221.

200.

203.

216.

220.

199.

222.
223.
4. Replacement Chart: It shows the profile job holders department wise and offers a
snapshot of who will replace whom if there is a job opening.
224.

225.
226.
227.
b) External Labor Supply: When the organization grows rapidly and diversifies into
newer areas of operations (merchant banking, capital market operations, mutual funds
etc. in the case of a bank) or when it is not able to find the people internally to fill the
vacancies it has to look into outside sources. To the extent an organization is able to
anticipate its outside recruitment needs and looks into the possible sources of supply
keeping the market trends in mind, its problems in finding the right personnel with
appropriate skills at the required time would become easier.
228.

Important Barometers of Labor supply:

229.

1) Net migration into and out of the area.

230.

2) Education levels of workforce

231.

3) Demographic changes in population.

232.

4) Technological developments and shifts

233.

5) Population Mobility

234.

6) Demand for specific skills

235.

7) National regional unemployment rates

236.

8) Actions of competing employers

237.

9) Government policies, regulations, pressures.

238.

10) Economic Forecasts for the next few years.

239.

11) The attractiveness of an area.

240.

12) The attractiveness of an industry in a particular place.

241.
Determining Manpower gaps: The existing number of personnel and their
skills (from human resources inventory) are compared with the forecasted manpower
needs ( demand forecasting) to determine the quantitative and qualitative gaps in the
workforce. A reconciliation of demand and supply forecasts will give us the number
of people to be recruited or made redundant as the case may be. This forms the basis
for preparing the HR plan . Below Exhibit shows how demand and supply forecasts
can be related over a period of three years.
5. Determining Human Resources Requirements:
242.
243.
1) Number required at the beginning of the year

244.

2) Changes to requirements forecast during the year DEMAND

245.

3) Total requirements at the end of the year (1+2)

246.

4) Number available at the beginning of the year

247.

5) Additions (transfers, promotion) SUPPLY

248.

6) Separations (retirement, wastage, promotions out and other losses).

249.

7) Total available at the end of years ( 4+ 5+ 6)

250.

8) Deficit or surplus ( 3 -7)

251.
9) Losses of those recruited during the year-Reconciliation of the above
manpower needed.
252.

10) Additional numbers needed during the year (8+9)

253.
6. Formulating HR plans: Organizations operate in a changing environment.
Consequently Human resources requirements also change continually. Changes in
product mix, union agreements, competitive actions are some of the important things
that need special attention. The human resource requirements identified along the
procedure outlined in the above box need to be translated into concrete HR plans
backed up by detailed policies programs and strategies (for recruitment, selection.,
training, promotion, retirement, replacement etc)
254.
1. Recruitment plans: Will indicate the number and type of people required
and whom they are needed for, special plans to recruit right people and how they are
to be dealt with via the recruitment program.
255.
2. Redeployment plan: Will indicate the programs for transferring or retraining
existing employees for new jobs.
256.
3.Redundancy plan: Will indicate who is redundant when and where the plans
for retraining where this is possible and plans for golden handshake retrenchment lay
off etc.
257.
4. Training plan: Will indicate the number of trainees or apprentices required
and the programs for recruiting; of training them, existing staff requiring training or
refraining new courses to be developed or changes to be effected in existing courses
258.
5. Productivity plan: Will indicate reasons for employees productivity or
reducing employee costs through work simplification studies, mechanization
productivity, bargaining incentives and profit sharing schemes , job redesign etc.
259.
6. Retention plan: will indicate reasons for employee turnover and show
strategies to avoid wastage through compensation policies , changes in work
requirements and improvement in working conditions.

260.
7. Control points: The entire manpower plan to be subjected to close
monitoring from time to time . Control points be set up to find out deficiencies
periodic updating of manpower inventory in the light of changing circumstances be
undertaken to remove deficiencies and develop future plans.
261.
262.
263.
264.

265.
266.
267.

Effectiveness of Human resource Planning:

1. Objectives: The Hr plan should fit with the overall objectives of the organisation.

2. Top Management support: To meet the changing needs of the organisation, there
should be support of the Top Management.
3. Employee skills Inventory: Upto date employee skill inventory should be maintained
by the org. Tis can be done with in the form of Markov Analysis, skill inventory table
etc.
4. HRIS: Implement computer technology to maintain Human skill inventory.
5. Coordination: Procurement, promotion and retention plans must be integrated
properly.
268.

Recruitment:

269.
Introduction: The human resources are the most important assests of an
organization. The success or failure of an organization is largely depends on the
caliber of the people working therein. In order to achieve the goals or perform the
activities of an organization, therefore we need to recruit people with requisite skills,
qualification and experience. While doing so, we have to keep the present as well as
the future requirements of the organization in mind.
270.

Definition:

271.
Recruitment is the process of locating and encouraging potential applicants to
apply for existing or anticipated job openings. It is actually a linking function, joining
together those with jobs to fill and those seeking jobs.
272.

Nature:

1. Attracting large number of qualified applicants who are ready to take up the jobs if
its offered.
2. Offering enough information for unqualified persons to self-select themselves out (for
eg, the recruitment ad of a foreign bank may invite applications from chartered
accountants who have cleared the CA examination in the first attempt only).
3. The sources of recruitment may be broadly divided into two categories: Internal and
external sources. Both have their own merits and demerits.
4. Recruitment is influenced by a variety of environment factors: economic, social,
technological, political, legal etc.
273.
Recruitment is the process of identifying that the organization needs to employ
someone up to the point at which application forms for the post have arrived at the
organization. Selection then consists of the processes involved in choosing from
applicants a suitable candidate to fill a post. Training consists of a range of processes
involved in making sure that job holders have the right skills, knowledge and attitudes
required to help the organization to achieve its objectives.
274.

Objectives of recruitment:

Support the organization ability to acquire, retain and develop the best talent and
skills.

 Determine present and future manpower requirements of the organization in

coordination with planning and job analysis activities.
Obtain the number and quality of employees that can be selected in order to help the
organization to achieve its goals and objectives.
Create a pool of candidates so that the management can select the right candidate for
the right job from this pool
Attract and encourage more and more candidates to apply in the organization
Increase the pool of candidates at minimum cost.
Acts as a link between the employers and the job seekers
Infuse fresh blood at all levels of the organization
Meet the organization's legal and social obligations regarding the composition of its
workforce.
Increase the effectiveness of various recruiting techniques
275.

Process of recruitment:

1. Finding out and developing the sources where the required number and kind of
employees are / will be available.
2. Developing suitable techniques to attract the desirable candidates and employing the
technique to attract candidates.
3. Stimulating as many candidates as possible and asking them to apply for jobs
irrespective of number of candidates required.
276.
277.

Factors affecting recruitment:

278.

279.

Recruitment Policy:

Refers to any organization is derived from the personnel policy of the same
organization.
however, recruitment policy by itself should take into consideration the
governments reservation policy, policy regarding sons of soil etc, personnel
policies of the other organizations regarding merit, internal sources, social
responsibility in absorbing minority sections, women etc.
280.
Factors should be taken into consideration in formulating recruitment
policy:
Personnel policies of other competing organizations
Organization's personnel policies
Recruitment sources
Recruitment needs
Recruitment cost
Selection criteria and preference etc.
Centralized and decentralized recruitment: Recruitment practices vary from
organization to another.
Centralized based on centralized way , with system and procedures.
Decentralized based on decentralized way, with less system and based on the
jobs of the respective unit.
281.
Sources of recruitment:

282.

Internal recruitment can be used as a technique of motivation

Morale of the employees can be improved
Suitability of the internal candidates can be judged better than the external
candidates as known devils are better than unknown angles
Loyalty, commitment, a sense of belongings and security of the present
employees be enhanced
283.
Employees psychological needs can be met by providing an opportunity for
advancement.
Employees economic needs for promotion, higher income can be satisfied.
Cost of selection can be minimized.
Cost of training, induction, orientation, period of adoptability to the
organization can be reduced.
Trade union can be satisfied
Social responsibility towards employees may be discharged.
Stability of employment can be ensured.
284.
External sources( reasons):
Organization search for external sources for following reasons:
The suitable candidates with skill, knowledge, talent, etc, are generally
available.
Candidates can be selected without any pre-conceived notion or reservations.
Cost of employees can be minimized because employees selected from this
source are generally placed in minimum pay scale.

 Expertise, excellence and experience in other organizations can be easily brought into
the organization.
Human resource mix can be balanced with different backgrounds, experience, skill
etc.
Latest knowledge, skill, innovative or creative talent can also be flowed into the
organization.
Long-run benefit to the organization in the sense that qualitative human resources can
be brought.
285.

Assessment of recruitment Program me (feedback):

For future effectiveness

The purpose of such assessment is to know the degree of suitability of the
sources and techniques in achieving the corporate strategies and objectives.
This helps in monitoring and controlling the recruitment practices.
286.
It also helps in reviewing, updating the manpower plans, recruitment sources
and techniques selected in view of the changes in the internal and external
environment.
287.
288.

Sources of recruitment:

289.
The sources of recruitment may be broadly divided into two categories:
Internal and external sources. Both have their own merits and demerits.
290.
Internal Recruitment: Persons already working in an organization constitute
the internal resources. Retrenched employees, retired employees, dependents of
deceased employees may also constitute the internal sources. Whenever any vacancies
arise, someone from within the organization is upgraded, transferred, promoted or
even demoted.
291.
Recruiting individuals to fill particular posts within a business can be done
either internally by recruitment within the firm.
The advantages of internal recruitment are that:
1. Considerable savings can be made. Individuals with inside knowledge of how a
business operates will need shorter periods of training and time for 'fitting in'.
2. The organization is unlikely to be greatly 'disrupted' by someone who is used to
working with others in the organization.
3. Internal promotion acts as an incentive to all staff to work harder within the
organisation.
4. From the firm's point of view, the strengths and weaknesses of an insider will have
been assessed. There is always a risk attached to employing an outsider who may only
be a success 'on paper'.

The disadvantages of recruiting from within are that:

1. You will have to replace the person who has been promoted
2. An insider may be less likely to make the essential criticisms required to get the
company working more effectively
3. Promotion of one person in a company may upset someone else.
292.
External Recruitment: external sources lie outside an organization. Here the
organization can have the services of: 1. Employees working in other organisations.2.
Job aspirations registered with employment exchange. 3. Students from reputed
educational institutions.3. Candidates referred by Unions, friends, relatives and
existing employees. 4. Candidates responding to the advertisements, issued by
Organisations.5.unsolicited applicants and Walk-ins.
293.
External recruitment makes it possible to draw upon a wider range of talent,
and provides the opportunity to bring new experience and ideas in to the business.
Disadvantages are that it is more costly and the company may end up with someone
who proves to be less effective in practice than they did on paper and in the interview
situation.
There are a number of stages, which can be used to define and set out the nature of
particular jobs for recruitment purposes:
Job analysis is the process of examining jobs in order to identify the key requirements
of each job. A number of important questions need to be explored:
the title of the job
to whom the employee is responsible
for whom the employee is responsible
a simple description of the role and duties of the employee within the organization.
Job analysis is used in order to:
1. Choose employees either from the ranks of your existing staff or from the
recruitment of new staff.
2. Set out the training requirements of a particular job.
3. Provide information which will help in decision making about the type of
equipment and materials to be employed with the job.
4. Identify and profile the experiences of employees in their work tasks (information
which can be used as evidence for staff development and promotion).
5. Identify areas of risk and danger at work.
6. Help in setting rates of pay for job tasks.
Job analysis can be carried out by direct observation of employees at work, by finding
out information from interviewing job holders, or by referring to documents such as
training manuals. Information can be gleaned directly from the person carrying out a
task and/or from their supervisory staff. Some large organizations specifically employ
'job analysts'. In most companies, however, job analysis is expected to be part of the
general skills of a training or personnel officer.
294.

Job description

295.
A job description will set out how a particular employee will fit into the organization.

It will therefore need to set out:

the title of the job
to whom the employee is responsible
for whom the employee is responsible
a simple description of the role and duties of the employee within the organization.
A job description could be used as a job indicator for applicants for a job.
Alternatively, it could be used as a guideline for an employee and/or his or her line
manager as to his or her role and responsibility within the organization.
296.

Job specification.

297.
A job specification goes beyond a mere description - in addition, it highlights the
mental and physical attributes required of the job holder. For example, a job
specification for a trainee manager's post in a retail store included the following:
'Managers at all levels would be expected to show responsibility. The company is
looking for people who are tough and talented. They should have a flair for business;
know how to sell, and to work in a team.'
Job analysis, description, and specification can provide useful information to a
business in addition to serving as recruitment instruments. For example, staff
appraisal is a means of monitoring staff performance and is a feature of promotion in
modern companies. In some companies, for example, employees and their immediate
line managers discuss personal goals and targets for the coming time period (e.g. the
next six months). The appraisal will then involve a review of performance during the
previous six months, and setting new targets. Job details can serve as a useful basis
for establishing dialogue and targets. Job descriptions can be used as reference points
for arbitrating in disputes as to 'who does what' in a business. Selection involves
procedures to identify the most appropriate candidates to fill posts. An effective
selection procedure will therefore take into consideration the following:
keeping the costs of selection down
making sure that the skills and qualities being sought have been identified,
developing a process for identifying them in candidates
making sure that the candidates selected, will want the job, and will stay with the
company.
Keeping the costs of selection down will involve such factors as holding the
interviews in a location, which is accessible to the interviewing panel, and to those
being interviewed. The interviewing panel must have available to them all the
necessary documentations, such as application forms available to study before the
interviews take place. A short list must be made up of suitable candidates, so that the
interviews do not have to take place a second time, with new job advertisements being
placed.
The skills required should have been identified through the process of job analysis,
description and specification. It is important then to identify ways of testing whether
candidates meet these requirements. Testing this out may involve:
interviewing candidates
asking them to get involved in simulated work scenarios
asking them to provide samples of previous work
getting them to fill in personality and intelligence tests
giving them real work simulations to test their abilities.

Methods of recruitment:
1. Internal recruitment:
Promotions and transfer: Promotion involves movement of an employee from a lower
level position to a higher level position to a higher level position accompanied by
changes in duties, responsibilities, status and values.
Job posting : Job rotation: eg: the AV Birla group allows its employees an
opportunities to apply not just for jobs within their own companies, but for jobs in any
company in the Birla group both in India and Abroad.
Employee referrals: using personal contacts to locate job opportunities.
298.

Direct Methods:

1. Campus recruitment: it is a method of recruiting by visiting and participating in

college campuses and their placement centres.
299.
Guidelines for campus recruiting:
Shortlist Campuses
Choose recruiting team carefully
Pay smartly and not highly
Present a clear image
Do not oversell yourself
Get in early
Not everyone fit the bill.
300.

Indirect Methods:

1. Advertisements: in newspaper, trade, professional and technical journals, radio and

television, etc.
301.
1.
2.
3.
4.
5.

Third Party Methods:

Private employment search firms

Employment exchange
Gate hiring and Contractors
Unsolicited applicants and walk ins
Internet recruiting
302.
303.
304.
Skills Recruiters Want
305.
306.
1. Ability to work in a team
2. Analytical and problem solving skills
3. Communications and other soft skills
4. Creativity and other resourcefulness
5. Leadership potential
6. General managerial skills

7. Entrepreneurial Skills.
307.
308.
309.
Transfer:
310.
A transfer is a change in job assignment.
It may involve a promotion or demotion or no change at all in status and
responsibility.
Employees moves from one job to another in the same hierarchy.
311.
312.
Purposes of Transfer:
To meet the organizational requirements.
To satisfy the employees needs.
To utilize employees better.
To make the employees more versatile.
To adjust the workforce.
To provide relief.
To reduce conflicts.
To punish employees.
313.
Types of Transfers:
1. Production transfer: transfers caused due to changes in production.
2. Replacement transfers: transfers caused due to replacement of an employee working
on the same job for a long time.
3. Rotation transfers: transfers initiated to increase the versatility of employees.
4. Shift transfers: transfers of an employee from one shift to another.
5. Remedial transfers: transfers initiated to correct the wrong placements.
6. Penal transfers: transfers initiated as punishment for indisciplanary action of
employees.
314.
Promotions:
Refers to upward movement of an employee from current job to another that is higher
in pay, responsibility and or organizational level.
Bases of promotions:
1. Merit based promotions
2. Seniority based promotions
315.
Demotions:
Is the downward movement of an employee in the organizational hierarchy with lower
status and pay.
Employee suffers considerable emotional and financial loss in the form of lower rank,
power, status, lower pay, poor working conditions.
316.
Employee separations:
It occurs when employees cease to be members of an organization.
The service agreement between the employee and the employer comes to an end and
the employee decides to leave the organization.

317.

Forms of separations:

1.
2.
3.
4.
5.

Resignations
Retirement
Lay off
Retrenchment
Suspension: prohibiting an employee from attending work and performing normal
duties assigned to him.
6. Discharge and dismissal: termination of the services of an employee as a punitive
measure of some misconduct. Dismissal may not be punitive measures but due to
various reasons like carelessness, dishonesty, inefficiency etc.
318.
319.
New recruitment Portals: Face book, LinkedIn, mobile, all social networking
mediaetc.
320.
321.

Selection:

322.
The size of the labour market, the image of a company, the place of
posting, the nature of the job, the compensation package and a host of other factors
influence the manner in which job aspirants are likely to respond to the recruiting
efforts of a company. Recruiting, thus, provides a pool of applicants for selection.
323.
Definition: selection is process of picking individuals who have
relevant qualifications to fill jobs in an organization. The basic purpose is to choose
the individual who can most successfully perform the job from the pool of qualified
candidates.
324.
Purpose: the purpose of selection is to pick up the most suitable
candidates who would best meet the requirements of the job and organization.
325.
The Selection Process: selection is usually a series of hurdles or
steps. Each one must be successfully cleared before the applicant proceeds to the next.
The time and emphasis placed on each step will of course vary from one organization
to another and indeed, from job to job within the same organization.
326.
For example some organization may raise importance to testing, while
others may emphasize interviews and references checks. Similarly a single brief
selection interview might be enough for applicants for lower level positions, while
applicants for managerial jobs might be interviewed by a number of people.
327.

8.Hiring decisions

329.

7.reference checks

328.
Ste
p
8
330.
Ste

331.

6.Medical examination

333.

5.Selection interview

335.

4.Selection test

337.

3.Application Blank

339.

2.Screening interview

341.

1.Reception

p
7
332.
Ste
p
6
334.
Ste
p
5
336.
Ste
p
4
338.
Ste
p
3
340.
Ste
p
2
342.
Ste
p
1

343.
1. Reception: A company known by the people it employs. In order to attract people with
talent, skills and experience, a company has to create a favorable impression on the
applicants right from the stage of reception. If no jobs are available at that point of
time, the applicant may be asked to contact the HR department after a suitable period
of time has elapsed.
2. Screening Interview: A primary interview is generally planned by large organizations
to cut of selection by allowing only eligible candidates to go through the further
stages in selection. A junior executive from the HR department may elicit responses
from applicants on important items determine the suitability of an applicant for a job
such as age, education, experience, pay expectation, aptitude, location choice etc.
Contents of application Blanks:
3. Application blank: application blank or form is one of the most common methods
used
collect information
on various
aspects of themarks)
applicants academic, social,
1. toPersonal
data ( address,
sex, identification
demographic,
and
references.
It is a brief history sheet of an
2. Maritalwork
data related
( Singlebackground
or married,
children,
dependents)
3. Physical
data ( height,
weight,
health
employees
background
usually
containing
thecondition)
following things:
4. Educational Data ( Levels of formal education, marks, distinctions)
344. 5. Employment data (Past experience, promotions, nature of duties, reasons
for leaving previous jobs, salary drawn , etc.)
6. Extra Curricular activities data ( Sports, NSS, NCC, Prizes won etc)
7. References ( names of two or more people who certify the suitability of an
applicant to the advertised position).

345.
346.
347.
348.
349.
350.
351.
352.

Weighted Application Blanks:

353.
To make the application form more job related, some organizations assign
numeric values or weights to responses provided by applicants. Generally, the items
that have a strong relationship to job performance are given high scores. (more
reference: refer: HRM VSRAO book Page number 146).
354.

Usefulness:

355.
Applications blank is a highly useful selection tool, that it serves three
important purposes:
1. It introduces the candidate to the company in a formal way.
2. It helps the company to have a cross comparison of applicants, the company can
screen and reject candidates if they fail to meet the eligibility criteria at this stage
itself.
3. It can serve as a basis for initiating a dialogue at the interview.
356.
357.
358.

Sample application blank: refer page number: 146 VSRAO HRM.

4. Selection Testing: another important decision in the selection process involves

applicant testing and kinds of tests to use. A test is a standardized, objective measure
of a persons behavior, performance or attitude. Over the years, employment tests
have not only gained importance but also a certain amount of inevitability in
employment decisions.
359.

Some of the commonly used employment tests may be stated thus:

1. Intelligence tests: these are mental ability tests. The basic objective of intelligence
tests is to pick up employees who are alert and quick at learning things so that they
can be offered adequate training to improve their skills for the benefit of the
organization.

2. Aptitude tests: aptitude tests measure an individual potential to learn certain skillsclerical, mechanical, mathematical etc. These tests indicate whether or not an
individual has the ability to learn a given job quickly and efficiently.
3. Personality tests: Personality tests are used to measure basic aspects of an applicants
such as motivation, emotional balance, self-confidence, interpersonal behavior,
introversion etc.
4. Achievements tests: these are designed to measure what the applicant can do on the
job currently, i.e. whether the testee actually knows what he or she claims to know. A
typing test shows typing proficiency, a shorthand test measures the testees ability to
take dictation and transcribe, etc. such proficiency tests are also known as work
sampling tests.
5. Simulation tests: Simulation exercise is a test which duplicates many of the activities
and problems an employee faces while at work. Such exercises are commonly used
for hiring managers at various levels in an organization.
6. Assessment Centre: An assessment centre is an extended work sample. It uses
procedures that incorporate group and individual exercises.
7. Graphology tests: it involves using a trained evaluator to examine the lines, loops,
hooks, strokes, curves and flourishes in a persons handwriting to assess the persons
personality and emotional make-up.
8. Polygraph tests: the polygraph records physical changes in the body as the test subject
answers a series of questions. It records fluctuations in respiration, blood pressure and
perspiration on a moving roll of graph paper.
9. Integrity tests: these are designed to measure employees honesty to predict those who
are more likely to steal from an employer or otherwise act in a manner unacceptable
to the organization.
5. Selection Interview: Interview is the Oral examination of candidates for employment.
This is the most essential step in the selection process. Interview gives the recruiter an
opportunity to:
360.

Size up the interviewees agreeableness.

Ask questions that are not covered in tests.
Obtain as much pertinent information as possible
Assess subjective aspects of the candidate facial expressions, appearance,
nervousness and so forth.
Make judgment on interviewees enthusiasm and intelligence.
Give facts to the candidate regarding the company, its policies, programmes, etc. and
promote goodwill towards the company.

361.
Types of Interviews: several types of interview are commonly used
depending on the nature and importance of the position to be filled within an
Organization.

The non-directive Interview or unstructured Interview: in a non-directive

interview the recruiter asks questions as they come to mind. There is no specific

6.

1.
2.
3.
4.
7.

format to be followed. The question can take any direction. They ask open minded
questions and allows the applicant to speak freely with a minimum of interruption.
The directive or structured Interview: in the directive interview, the recruiter uses a
predetermined set of questions that are clearly job related. Since every applicant is
asked the same basic questions, comparison among applicant can be made easily.
The situational Interview: one variation of the structured interview is known as the
situational interview. In this approach, the applicant is confronted with a hypothical
incident and asked how he or she would respond to it. The applicants response is then
evaluated relative to pre- established benchmark standards.
The Behavioral Interview: the behavioral interview focuses on the actual work
incidents in the applicants past. The applicant is supposed to reveal what he or she did
in a given situation, for example how he disciplined an employee who was smoking
inside the factory premises.
Stress Interview: here interviewer attempt to find how applicant would respond to
aggressive, embarrassing, rude, and insulting questions. The whole experience is
meant to see whether the applicant can cope up with highly stress producing anxious
and demanding situations while at work, in a clam and composed manner.
Panel Interview: In a typical panel interview, the applicant meets with three to five
interviewers who take turns asking questions. After the interview, the interviewers
pool their observations to arrive at a consensus about this suitability of the applicant.
362.
363. Explain the stages in Interview Process?
364. Interviewing is an art. It demands a positive frame of mind on the part of the
interviewers. Interviewees must be treated properly so as to leave a good impression
`in their minds. HR experts have identified certain steps to be followed while
conducting interviews.
1. Preparation
2. Reception
3. Information exchange
4. Termination
5. Evaluation
365.
Medical examination: certain jobs require physical qualities like clear vision, acute
hearing, unusually high stamina, tolerance of arduous working conditions, clear tone
etc. medical examination can give the following information:
Whether the applicant is medically suitable for the specific job or not,
Whether the applicant has health problems or psychological attitudes likely to
interfere with work efficiency or future attendance.
Whether the applicant suffers from bad health which should be corrected before he
can work satisfactorily
Whether the applicants physical measurements are in accordance with job
requirements or not.
Reference Checks: candidates are required to give the names of two or three
references in their applicant forms. These references may be from individuals who are
familiar with the candidates academic achievements, or from applicants previous

employer, who is well versed with the applicants job performance, and sometimes
from co-workers.
8. Hiring Decisions: the line manager concerned has to make the final decision nowwhether to select or reject a candidate after soliciting the required information through
different techniques discussed earlier. Line Managers has to take adequate care in
taking the final decision because of economic, behavioral and social implications of
the selection decisions.
366.
367.
368.
369.
370.