UNIT II

HUMAN RESOURCE PLANNING AND EMPLOYEE HIRING

Human resource planning is the process of forecasting an organization's human resource needs
and developing strategies to meet those needs. Employee hiring is a key component of human
resource planning as it involves identifying and attracting the right talent to fill the organization's
open positions.

The process of human resource planning typically involves analyzing the organization's current
workforce, projecting future workforce needs based on business goals and objectives, identifying
skills gaps and determining how to address them, and developing strategies to attract, hire, and
retain employees.

Employee hiring is a critical aspect of human resource planning as it involves identifying the
skills, experience, and qualities required for a particular position, creating job descriptions and
job postings, screening resumes and applications, conducting interviews and assessments, and
ultimately selecting the best candidate for the job.

Effective human resource planning and employee hiring practices can help organizations ensure
that they have the right people in the right positions to achieve their business goals, while also
fostering a positive work environment and retaining top talent.

What is a Job?
A group of homogeneous tasks related by similarity of functions when performed by an
employee in an exchange for pay.A job consists of duties, responsibilities, and tasks
(performance elements) that are
(1) defined and specific, and
(2) can be accomplished, quantified, measured, and rated. From a wider perspective, a job is
synonymous with a role and includes the physical and social aspects of a work environment.
Often, individuals identify themselves with their job or role (foreman, supervisor, engineer, etc.)
and derive motivation from its uniqueness or usefulness.

Job Analysis
Job analysis, contains a simple term called "analysis", which means detailed study or
examination of something (job) in order to understand more about it (job). therefore job analysis
is to understand more about a specific job in order to optimise it. Job analysis is a systematic
process of collecting complete information pertaining to a job. Job analysis is done by job
analyst who is an officer have been trained for it.
Job analysis is a procedure through which you determine the duties and responsibilities, nature of
the jobs and finally to decide qualifications, skills and knowledge to be required for an employee
 to perform particular job. Job analysis helps to understand what tasks are important and how they
are carried on. Job analysis forms basis for later HR activities such as developing effective
training program, selection of employees, setting up of performance standards and assessment of
employees ( performance appraisal)and employee remuneration system or compensation plan.

One of the first industrial-organizational psychologists to introduce job analysis was Morris
Viteles. In 1922, he used job analysis in order to select employees for a trolley car company.

Definitions of Job Analysis

In the words of Dale Yoder. "A Job is a collection of duties, tasks and responsibilities which are
assigned to an individual and which is different from other assignment"
According to Michael J. Jucius, "Job analysis refers to the process of studying the operations,
duties and organisational aspects of jobs in order to derive specification or, as they are called by
some job description"
In the words of Edwin B. Flippo, "Job analysis is the process of studying and collecting
information relating to the operations and responsibilities of a specific job"
In simple words Job analysis is a formal programme which examines the tasks, duties and
responsibilities contained in an individual unit of work.

The intention behind job analysis is to answer questions such as:

▪ ▪ What is the need of the job to exist?
▪ What physical and mental activities does the worker undertake?
▪ When is the job to be performed?
▪ Where is the job to be performed?
▪ How does the job performed by an employee?
▪ What qualities and qualifications are required to perform the job?

Job analysis is a detailed examination of

(1) tasks that make up a job (employee role),
(2) conditions under which an employee performing his/her job, and
(3) what exactly a job requires in terms of aptitudes (potential for achievement), attitudes
(behavior characteristics), knowledge, skills, educational qualifications and the physical working
condition of the employee.
Objectives of Job Analysis
(a) to determine most effective methods for performing a job.
(b) to increase employee job satisfaction.
(c) to identify core areas for giving training to employees and to find out best methods of
training.
(d) development of performance measurement systems, and
(e) to match job-specifications with employee specifications while selection of an employee.
 JOB DESIGN
Job design is a process through which job related data are revealed and the contents as well as
methods of performing different tasks are specified. It plays a key role in bringing organizational
productivity and employee motivation at work.

Therefore, job design is a process by which required and job-related information is gathered to
determine different tasks to be included in the job. The manner in which the work activities are
scheduled can influence the motivational level of employees. Hence it is an essential tool of human
resource management which helps to enhance organizational productivity and challenges at work.

A brief description of steps in job design is as follows:

1. Specification of tasks: This is the first step of job design under which the individual task is
specified. It means different tasks to be included in a job are categorized and specified.

2. Combination of task: After specifying the individual tasks to be included in a job, they are
combined into a group and assigned to individual employee or group for performance.

3. Specification of method: Under this step, different methods of performance of each tasks are
identified and determined.

Importance and Benefits of Job Design

Job design is important for an organization to perform the organizational activities in the most
efficient and effective manner. It provides the required information about the incumbent and also
specifies the way of performing the tasks. Therefore, job design is very important for the
organization due to its benefits as follows:

1. Organizational Design – The job design specifies the contents and procedures of performing the
task in the organization. Hence, it helps in designing organizational structure. The organizational
structure is determined by the job design process. It plays a key role in assessing the need and
requirement of organizational structure. Job design also specifies organizational culture, norms
and values that its members need to follow to achieve organizational goals.

2. Structure of Competent Employee – Job design is a systematic approach of providing job-related

data and information on skills, knowledge and ability of the incumbent to perform the task. On the
basis of the information provided by it, the job description and job specification schedule are
prepared, which helps to the best suited candidate for the job. It provides a milestone to select the
competent employee who is capable of performing the task well in the organization.
3. Motivation and Commitment of Employees – Job design makes the work more interesting and
challenging, which motivates the employees for higher level of performance. The challenging and
interesting job provides better pay for the employees which inspires them for better job
performance. Along with motivation job design also brings high degree of commitment in them
towards organizational objectives. This helps to increase organizational productivity and employee
satisfaction at work.

4. Environmental Adaptation – An organization is operated in a dynamic environment. Hence,

any change in the environmental forces can have direct impact upon organizational performance.
Therefore, a systematic job design process tries to address the change that has occurred in
the organizational environment. The process of job design and job redesign is prepared in such a
way that it adapts the change in the environmental forces.

5. Labor Relations – A well prepared job design brings a harmonious relation between employees
and management. On the other hand, poorly prepared job design creates employee-grievances,
indisciplinary actions, greater employee turnover, greater absenteeism and conflict.

6. Quality of Work Life – A quality of work life is understood as an efficient relationship between
employees and organizational working environment. A properly prepared job design leads
to improvements in quality of work life. With a good design of work schedules, people see a
growing future in organization which ultimately leads to high motivation at work and a positive
change in their thoughts and beliefs. Finally, these changes will have a direct impact upon the
quality of work life.

7. Organizational Productivity – The job design specifies the contents and working procedures of
how the task is performed. This leads to a positive change in job performance and job analysis. As
a result of which, the organizational productivity will be enhanced through efficient work
performance.

Methods of Job Design

 Job design methods seek how to design jobs. Jobs can be designed to range them from very simple
to highly complex ones depending on the skill requirement to perform the job. The well known
methods of job design are as follows:

1. Classical Approach
The classical approach of job design is greatly influenced by the work of F.W Taylor. From his
work, time and motion study, he realized that by bringing a proper match between labor, tools and
tasks it would be possible to increase productivity. Hence under this approach, the job is designed
in the basis of organizational requirements. Its purpose is to simplify the tasks and break them
down into small work units. The primary focus of this approach is planning, standardizing and
improving human effort at work in order to optimize organizational productivity. Different
methods under classical approach are as follows:

1. Work Simplification: It is a process through which the job is broken down into small work units.
2. Job Rotation: It is a process of transferring workers from one job to another or from one work
unit to another without disrupting the flow of work.
3. Job Enlargement: It refers to a process of expanding the job’s duties. It increases a number of
different tasks performed by an individual in a single job.

2. Socio-Technical Approach
This is another important approach of job design in which social and technical aspects of the
organization are considered. Under it, jobs are designed according to individual needs and
organizational requirements. Furthermore, this approach considers both job-related technical
systems as well as accompanying social forces of the job. It means it includes an entire job situation
along with organizational and social factors while designing jobs. This approach leads to
development of self-managed work teams in organization.

The technical and social aspects of job are analyzed in order to create jobs which have supportive
relationship. Moreover, it requires a combined efforts of employees, supervisors, and union
representatives to design and redesign the jobs under this approach. Hence, it is situational
approach as it assesses the technical requirements and social surroundings of the job.

3. Behavioral Approach
Behavioral approach is concerned with behavioral factors such as: autonomy, variety, task identity,
task significance, feedback mechanism etc. It means the above mentioned behavioral factors are
analyzed and considered while designing the jobs under this approach. The different behavioral
methods are as follows:

1. Job Enrichment: It is concerned with the process of putting specialized tasks together so that the
individual who is assigned with the task is responsible to perform the whole task.
2. Job Characteristics: This method states that job characteristics affect the job designing process.
It focuses on job redesign, work structuring, job enrichment, and so on to improve organizational
productivity and quality of work life of employees.
3. Autonomous Team: It is a group of workers in which they solve problems, implement solution
and take full responsibility for outcomes. They are self-directed and self-managed work groups
who perform related or interdependent tasks.
4. Modified Work Schedule: It is a technique of job design through which the working schedules,
timing, work week etc. are rescheduled as per the convenience of the workers.

Factors affecting Job Design

1. Organizational Factors
 Organizational factors that affect job design can be work nature or characteristics, work
flow, organizational practices and ergonomics.

o Work Nature: There are various elements of a job and job design is required to
classify various tasks into a job or a coherent set of jobs. The various tasks may be
planning, executing, monitoring, controlling etc and all these are to be taken into
consideration while designing a job.
o Ergonomics: Ergonomics aims at designing jobs in such a way that the physical
abilities and individual traits of employees are taken into consideration so as to
ensure efficiency and productivity.
o Workflow: Product and service type often determines the sequence of work flow. A
balance is required between various product or service processes and a job design
ensures this.
o Culture: Organizational culture determines the way tasks are carried out at the work
places. Practices are methods or standards laid out for carrying out a certain task.
These practices often affect the job design especially when the practices are not
aligned to the interests of the unions.
2. Environmental Factors

Environmental factors affect the job design to a considerable extent. These factors include
both the internal as well as external factors. They include factors like employee skills and
abilities, their availability, and their socio economic and cultural prospects.

• Employee availability and abilities: Employee skills, abilities and time of availability
play a crucial role while designing of the jobs. The above mentioned factors of
employees who will actually perform the job are taken into consideration. Designing a
job that is more demanding and above their skill set will lead to decreased productivity
and employee satisfaction.

• Socio economic and cultural expectations: Jobs are nowadays becoming more
employee centered rather than process centered. They are therefore designed keeping the
employees into consideration. In addition the literacy level among the employees is also
on the rise. They now demand jobs that are to their liking and competency and which
they can perform the best.

3. Behavioural Factors
 Behavioural factors or human factors are those that pertain to the human need and that need
to be satisfied for ensuring productivity at workplace. They include the elements like
autonomy, diversity, feedback etc. A brief explanation of some is given below:

• Autonomy: Employees should work in an open environment rather than one

that contains fear. It promotes creativity, independence and leads to increased
efficiency.

• Feedback: Feedback should be an integral part of work. Each employee

should receive proper feedback about his work performance.

• Diversity: Repetitive jobs often make work monotonous which leads to

boredom. A job should carry sufficient diversity and variety so that it remains
as interesting with every passing day. Job variety/diversity should be given
due importance while designing a job.

• Use of Skills and abilities: Jobs should be employee rather than process
centered. Though due emphasis needs to be given to the latter but jobs should
be designed in a manner such that an employee is able to make full use of his
abilities and perform the job effectively.

TECHNIQUES OF JOB DESIGN

1. Job Simplification

Job is simplified or specialized. The job is broken down into small parts, and each part is
assigned to an individual.

To be more specific, work simplification is the mechanical pacing of work, repetitive work
processes, working only on one part of a product, predetermining tools and techniques,
restricting employee interaction, and a few skills requirements.

Work simplification is used when jobs are not specialized.

2. Job Rotation

Job rotation involves moving employees from job to job to add variety and reduce bore dome.
When the activity is no longer challenging, the employee would be moved to another job at the
same level that has similar skill requirements.

It reduces boredom and disinterest by diversifying the employees’ activities. Employees with a
wider range of skills give the management more flexibility in scheduling work, adapting to
change, and filling vacancies.

Job rotation means systematically moving workers from one job to another.

When incumbents become bored with routine jobs, job rotation is an answer. Here jobs remain
unchanged, but the incumbents shift from one job to another.

On the positive side, it increases the intrinsic reward potential of a job because of the different
skills and abilities needed to perform it.

Workers become more competent in several jobs, know various jobs, and improve their self-
image and personal growth.

Further, the worker becomes more valuable to the organization. On the negative side, it may not
be enthusiastic, or efficiency may not be more.

Besides, jobs may not improve the relationship between tasks, while activities and objectives
remain unchanged.

Further training costs also rise, and it can also de-motivate intelligent and ambitious trainees who
seek specific responsibilities in their chosen specialties.

3. Job Enlargement

Job enlargement refers to the expansion of the number of different tasks performed by an
employee in a single job.
For example, an auto mechanic undergoes job enlargement when he switches from only
changing the oil to changing oil, greasing, and changing the transmission fluid. Job enlargement
attempts to add somewhat similar tasks to the existing job so that it has more variety and is more
interesting.

Job enlargement means assigning workers additional same-level activities. Job enlargement
changes the jobs to include more and/or different tasks.

It means expanding the number of tasks or duties assigned to a given job. Job enlargement is
naturally opposite to work simplification.

Adding more tasks or duties to a job do not mean new skills and abilities are needed. There is
only horizontal expansion.

It is with the same skills taking additional responsibilities like extending working hours etc. Job
enlargement may involve breaking up the existing work system and redesigning a new work
system.

4. Job Enrichment

Job enrichment involves adding more motivators to a job to make it more rewarding. The job
becomes enriched by giving job-holder more decision-making planning and controlling powers.

In job enrichment, the nature of the job is exciting, challenging, and creative.

Job enrichment is the improvisation of task efficiency and human satisfaction by building into
people’s jobs, specifically, greater scope for personal achievement and recognition, more
challenging and responsible work, and more opportunities for individual advancement and
growth.

An enriched job will have more responsibility, autonomy (vertical enrichment), various tasks
(horizontal enrichment), and growth opportunities.

The employee does more planning and controlling with less supervision but more self-
evaluation.

5. Job Reengineering

Reengineering means redesigning a business process so that small multidisciplinary self-

managing teams get the task done together, all at once.

Reengineering identifies the desired outcome of a system or subsystem and restructures jobs and
even departments to increase performance radically.
Often this is done by eliminating unneeded steps and clustering related responsibilities into one
job or team organized around the process.

HUMAN RESOURCE PLANNING

Human resource is the most important asset of an organisation. Human resources planning are
the important managerial function. It ensures the right type of people, in the right number, at the
right time and place, who are trained and motivated to do the right kind of work at the right time,
there is generally a shortage of suitable persons.

According to E.W. Vetter, human resource planning is “the process by which a management

determines how an organisation should make from its current manpower position to its

desired manpower position.

NEEDS OF HRP

1. Replacement of Persons:

A good number of employees are to be replaced in the undertaking because of retirement, old

age, death etc. So there will be a need to prepare and train persons for taking up vacant jobs in an

enterprise.

2. Labour Turnover:

Labour turnover takes place in all enterprises. However, the degree of labour turnover may vary

from company to company but it cannot be eliminated altogether. There is always a need to
recruit new employees to take up the jobs of those who have left the undertaking.

If the undertaking is able to foresee turnover rate properly then efforts in advance are made to

recruit and train employees so that work does not suffer for want of employees.

3. Expansion Plans:

Whenever there is a proposal to expand or diversify the enterprise, more employees will be
needed to occupy new jobs. In such situations the human resource planning is necessary.
4. Technological Changes:

With research and new inventions, technological changes are coming rapidly. There may be need

to give fresh training to personnel. In addition, there may also be a need to infuse fresh blood

into the enterprise. Human resource planning will be helpful in coping to the new demands of the

enterprise.

5. Assessing Future Requirements:

Human resource planning is also needed to assess whether there is any shortage or surplus

employees in the undertaking. If there is less number of employees than needed, it will badly

affect the work. On the other hand, if more persons are working than needed then it will increase

labour costs, etc. Human resource planning ensures the employment of right employees.

Objectives of Human Resource Planning:

1. Making assessment human resource requirements for future and making plans for recruitment

and selection.

2. Assessing skill needs in future.

3. Determining training and development needs of the enterprise.

4. To assess the surplus or shortage of human resources and avoiding unnecessary dismissals.

5. To minimise imbalances caused due to non-availability of human resources of right kind, right

number in right time and at the right place.

6. Ensuring optimum use of existing human resources in the enterprise.

7. Keeping the enterprise ready to meet with the technological development and modernisation.
8. Controlling wage and salary costs.

9. Ensuring higher labour productivity.

10. Ensuring career planning of every employee of the enterprise and making succession

programmes.

FACTORS INFLUENCING HRP

Internal factors influencing HR planning

The internal environment impacts on the firm’s employment policies.

• The firm’s strategic plan will include a workforce assessment in terms of numbers and
skills.
• As firms grow, they are likely to recruit more employees, although there may be
substitution of labour through automation.
• Changes to the nature of the firm’s operations will affect the types and skill levels of its
workforce, e.g. new international operations.
• Increasing or falling profitability will affect the level of the required workforce and terms
and conditions.
• New management may lead to higher staff turnover.

External factors influencing HR planning

The external environment impacts on the supply of labour available to potential employers.

1. Demographic change influences the supply of labour. Demography is the study of the
size, growth, age and geographical distribution of human populations, e.g.
o increases in the world population
o changes in birth and death rates
o increasing migration
o ageing populations

2. Socio-cultural trends are closely related to demographic changes. For example:

o increased female participation in the workforce
o the desire for a better work–life balance
o more part-time and fixed-term employment
o less loyalty from employers and employees
 3. Technological change has impacted on the required employment skills and the nature of
the employment. For example, new information and communication technologies (ICT)
allow more people to telework (work from home or from a remote location).

4. Labour mobility
o Occupational mobility (movement between occupations) is influenced by the
level of education and training.
o Geographical mobility (movement between locations) is influenced by the
attractiveness of regions in terms of environment, climate, infrastructure,
communications and wage rates.

5. The state of the economy has a significant impact related to the economic cycle. In a
recession, wages fall and labour availability increases. In boom periods, higher wages
boost the number of people willing and able to work.

6. Employment laws and regulations impact on the structure of a workforce, e.g. laws on
maximum working hours.

METHODS OF DEMAND FORECASTING FOR MANPOWER PLANNING

There are several methods that can be used for demand forecasting in manpower planning,
including:

1. Time Series Analysis: This method involves analyzing historical data on workforce demand
and using statistical techniques to forecast future demand based on trends, seasonal patterns, and
other factors.

2. Regression Analysis: Regression analysis involves identifying the relationship between

workforce demand and various factors that influence it, such as business activity, economic
indicators, and industry trends.

3. Delphi Method: This method involves gathering input from a panel of experts on future
workforce demand and then synthesizing their opinions to arrive at a consensus forecast.

4. Bottom-Up Approach: This approach involves forecasting workforce demand at the

individual department or job level and then aggregating those forecasts to arrive at an overall
demand forecast.
5. Top-Down Approach: This approach involves starting with an overall demand forecast and
then allocating that demand to individual departments or jobs based on historical patterns,
business objectives, and other factors.

6. Workforce Analytics: This method involves analyzing data on employee behavior,

performance, and engagement to forecast future demand based on factors such as turnover rates,
absenteeism, and productivity.

EMPLOYEE HIRING

Meaning:
Recruitment is a positive process of searching for prospective employees and stimulating them to

apply for the jobs in the organisation. When more persons apply for jobs then there will be a

scope for recruiting better person

Definition:
According to Edwin B. Flippo, “It is a process of searching for prospective employees and

stimulating and encouraging them to apply for jobs in an organisation.” He further elaborates it,

terming it both negative and positive.

Process of Recruitment:
Recruitment Process Passes through the Following Stages:

(i) Searching out the sources from where required persons will be available for recruitment. If

young managers are to be recruited then institutions imparting instructions in business

administration will be the best source.

(ii) Developing the techniques to attract the suitable candidates. The goodwill and reputation of

an organisation in the market may be one method. The publicity about the company being a

professional employer may also assist in stimulating candidates to apply.

(iii) Using of good techniques to attract prospective candidates. There may be offers of attractive

salaries, proper facilities for development, etc.

(iv) The next stage in this process is to stimulate as many candidates as possible to apply for

jobs. In order to select a best person, there is a need to attract more candidates.

Factors Influencing Recruitment:

All enterprises, big or small, have to engage themselves in recruitment of persons. A number of

factors influence this process.

Some Of The Main Factors Are Being Discussed Below:

1. Size of the Enterprise:

The number of persons to be recruited will depend upon the size of an enterprise. A big
enterprise requires more persons at regular intervals while a small undertaking employs only a

few employees. A big business house will always be in touch with sources of supply and shall try

to attract more and more persons for making a proper selection. It can afford to spend more

amounts in locating prospective candidates. So the size of an enterprise will affect the process of

recruitment.

2. Employment Conditions:

The employment conditions in an economy greatly affect recruitment process. In under-

developed economies, employment opportunities are limited and there is no dearth of

prospective candidates. At the same time suitable candidates may not be available because of

lack of educational and technical facilities. If the availability of persons is more, then selection
from large number becomes easy. On the other hand, if there is a shortage of qualified technical

persons, then it will be difficult to locate suitable persons.

3. Salary Structure and Working Conditions:

The wages offered and working conditions prevailing in an enterprise greatly influence the

availability of personnel. If higher wages are paid as compared to similar concerns, the enterprise

will not face any difficulty in making recruitments. An organisation offering low wages can face

the problem of labour turnover.

The working conditions in an enterprise will determine job satisfaction of employees. An

enterprise offering good working conditions like proper sanitation, lighting, ventilation, etc.

would give more job satisfaction to employees and they may not leave their present job. On the

other hand, if employees leave the jobs due to unsatisfactory working conditions, it will lead to

fresh recruitment of new persons.

4. Rate of Growth:

The growth rate of an enterprise also affects recruitment process. An expanding concern will

require regular employment of new employees. There will also be promotions of existing

employees necessitating the filling up of those vacancies. A stagnant enterprise can recruit

persons only when present incumbent vacates his position on retirement, etc.

METHODS OF RECRUITMENT

1. Direct Method:

In this method, the representatives of the organisation are sent to the potential candidates in the

educational and training institutes. They establish contacts with the candidates seeking jobs.

These representatives work in cooperation with placement cells in the institutions Persons

pursuing management; engineering, medical etc. programmes are mostly picked up in this
manner.

Sometimes, some employer firms establish direct contact with the professors and solicit informa-

tion about students with excellent academic records. Sending the recruiter to the conventions,

seminars, setting up exhibits at fairs and using mobile office to go to the desired centers are some

other methods used to establish direct contact with the job seekers.
2. Indirect Methods:

Indirect methods include advertisements in newspapers, on the radio and television, in

professional journals, technical magazines etc.

This method is useful when:

(i) Organisation does not find suitable candidates to be promoted to fill up the higher posts

(ii) When the organisation wants to reach out to a vast territory, and

(iii) When organisation wants to fill up scientific, professional and technical posts.

The experience suggests that the higher the position to be filled up in the organisation, or the

skill sought by the more sophisticated one, the more widely dispersed advertisement is likely to

be used to reach to many suitable candidates.

Sometimes, many organisations go for what is referred to as blind advertisement in which only

Box No. is given and the identity of the organisation is not disclosed. However, organisations

with regional or national repute do not usually use blind advertisements for obvious reasons.

While placing an advertisement to reach to the potential candidates, the following three

points need to be borne in mind:

1. First, to visualise the type of the applicant one is trying to recruit.

2. Second, to write out a list of the advantages the job will offer

3. Third, to decide where to run the advertisement, i.e., newspaper with local, state, nation-wide

and international reach or circulation.

3. Third Party Methods:

These include the use of private employment agencies, management consultants, professional

bodies/associations, employee referral/recommendations, voluntary organisations, trade unions,

data banks, labour contractors etc., to establish contact with the job- seekers.

Now, a question arises: which particular method is to be used to recruit employees in the

organisation? The answer to it is that it will depend on the policy of the particular firm, the

position of the labour supply, the Government regulations in this regard and agreements with

labour organisations. Notwithstanding, the best recruitment method is to look first within the

organisation.

RECENTS TRENDS IN COMPENSATION

1. Outsourcing:

Under this arrangement, a company may draw the required personnel from the outsourcing
firms or agencies on temporary basis rather than offering them employment. This is also
called leasing of human resources. The outsourcing firms develop their human resource
pools by employing people for them and make available the personnel to various companies
(called clients) as per their needs.

The outsourcing firms get payment for their services to their clients and give salary direct ly
to the personnel. The personnel deputed by the outsourcing agencies with the clients are not
the employees of the clients. They continue to be on the payroll of their employers, i.e., the
outsourcing agencies.

Several outsourcing companies or agencies have come up which supply (or lease) human
resources of various categories to their clients. A company in need of personnel of certain
categories can approach an outsourcing agency and avail the services of its human resources
on lease basis against payment of agreed amount.

The human resources so deputed will report back to the outsourcing agency after their
assignment is over. This system facilitates the organisation to hire security personnel from a
security agency, computer professionals from a computer firm, or accountants from an
accountancy firm.
The advantages of getting human resources through the outsourcing agencies are as
follows:

(i) The companies need not plan for human resources much in advance. They can get human
resources on lease basis from an outsourcing agency.

(ii) The companies are free from industrial relations problems as human resources taken on
lease are not their employees.

(iii) The companies can dispense with this category of employees immediately after the
project or assignment is completed.

2. Poaching or Raiding:

Poaching means employing a competent and experienced person already working with
another reputed company which might be a rival in the industry. A company can attract
talent from another firm by offering attractive pay packages and other terms and conditions.
For instance, several executives of HMT left to join Titan Watches and several pilots of
Indian Airlines left to join private air taxi operators.

There are several other examples where the firms have raided the rival firms to procure key
personnel to enhance their competitive advantage.

Whatever may be the means used to raid rival firms for potential candidates, it is often seen
as an unethical practice and not openly talked about. In fact, raiding has become a challe nge
for the human resource managers of modern organisations because poaching of a key
executive by a rival firm will weaken the competitive strength of the affected firm.

3. E-Recruitment:

Many big organisations use internet as a source of recruitment. They advertise the job
vacancies through the worldwide web (www). The job seekers send their applications or
Curriculum Vitae, i.e., CV, through e-mail using the internet. Alternatively, job seekers
place their CVs in the world wide web/internet, which can be drawn by the prospective
employers depending upon their requirements.

The advantages of e-recruitment are as follows:

(i) Low cost of recruitment per candidate.

(ii) Reduction in time for recruitment.

(iii) Recruitment of right types of people.

(iv) Efficiency in the process of recruitment.

4. Internships:

Internships offered by many industrial enterprises constitute an effective recruiting

technique. Internship usually involves employment during the summer before graduation
from college, specially in some technical courses. This is also known as ‘Summer
Placement’ which requires a prior selection process by the employer. The talented interns
may be offered regular jobs on completion of their internship training.

5. Walk in Interview:

Under this method, the employer can insert a ‘Walk-in’ or ‘Talk-in’ advertisement in a daily
newspaper or in the cyberspace (i.e., online). Those who walk in (i.e., come personally to
the human resource department) or talk in (i.e., contact the human resource department ov er
phone) or write in (i.e., send application through fax or e-mail) are asked to give necessary
details to the recruiter.

However, during the ‘walk-in’ interview, the candidate may be asked to submit a formal
application for the vacant post in the firm. After the interview, the candidate} may be
informed about the selection or rejection decision of the employer.

EMPLOYEE SELECTION

Employee Selection is the process of putting right men on right job. It is a procedure of matching
organizational requirements with the skills and qualifications of people. Effective selection can
be done only when there is effective matching.

By selecting best candidate for the required job, the organization will get quality performance of
employees. Moreover, organization will face less of absenteeism and employee turnover
problems.

By selecting right candidate for the required job, organization 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 the 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.

THE SELECTION PROCESS

• Preliminary Interview

This is a very general and basic interview conducted so as to eliminate the candidates who are
completely unfit to work in the organisation. This leaves the organisation with a pool of
potentially fit employees to fill their vacancies.

• Receiving Applications
Potential employees apply for a job by sending applications to the organisation. The application
gives the interviewers information about the candidates like their bio-data, work experience,
hobbies and interests.

• Screening Applications

Once the applications are received, they are screened by a special screening committee who
choose candidates from the applications to call for an interview. Applicants may be selected on
special criteria like qualifications, work experience etc.

• Employment Tests

Before an organisation decides a suitable job for any individual, they have to gauge their talents
and skills. This is done through various employment tests like intelligence tests, aptitude tests,
proficiency tests, personality tests etc.
• Employment Interview

The next step in the selection process is the employee interview. Employment interviews are
done to identify a candidate’s skill set and ability to work in an organisation in detail. Purpose
of an employment interview is to find out the suitability of the candidate and to give him an
idea about the work profile and what is expected of the potential employee. An employment
interview is critical for the selection of the right people for the right jobs.

• Checking References

The person who gives the reference of a potential employee is also a very important source of
information. The referee can provide info about the person’s capabilities, experience in the
previous companies and leadership and managerial skills. The information provided by the
referee is meant to be kept confidential with the HR department.

• Medical Examination

The medical exam is also a very important step in the selection process. Medical exams help
the employers know if any of the potential candidates are physically and mentally fit to
perform their duties in their jobs. A good system of medical checkups ensures that the
employee standards of health are higher and there are fewer cases of absenteeism, accidents
and employee turnover.

• Final Selection and Appointment Letter

This is the final step in the selection process. After the candidate has successfully passed all
written tests, interviews and medical examination, the employee is sent or emailed an
appointment letter, confirming his selection to the job. The appointment letter contains all the
details of the job like working hours, salary, leave allowance etc. Often, employees are hired on
a conditional basis where they are hired permanently after the employees are satisfied with
their performance.
Importance of the Selection Process

1. Proper selection and placement of employees lead to growth and development of the
company. The company can similarly, only be as good as the capabilities of its employees.

2. The hiring of talented and skilled employees results in the swift achievement of company
goals.

3. Industrial accidents will drastically reduce in numbers when the right technical staff is
employed for the right jobs.

4. When people get jobs they are good at, it creates a sense of satisfaction with them and thus
their work efficiency and quality improves.

5. People who are satisfied with their jobs often tend to have high morale and motivation to
perform better.

TYPES OF SELECTION TESTS

1. Aptitude Test:

This test is commonly used to judge the latest (existing but not yet developed) ability of a
candidate to know new job skills. This will enable to understand whether a candidate is
selected would be having the inclination of mechanical or clerical jobs. The aptitude test
will guide the following forms of like Medicine, Art, Music, Painting or Clerical and many
other activities. This test may lead to mental or intelligence test, mechanical aptitude test or
psychomotor tests.

This test is further subdivided into 4 tests:

(a) Mental or intelligence test – This form of test measures the overall intelligence
activity or IQ (Intelligence Quotient) of a person. It also measures the capacity for
comprehensive reasoning, word fluency, verbal comprehension and other factors like digital
span both forward and backward comprehension. But this test is proved to be dull as a
selection device.

(b) Mechanical Aptitude Test – This test estimates capacity of spatial visualisation,
perceptual accuracy and knowledge of mechanical aspects. This test is useful for selecting
skilled mechanical employees and technicians.

(c) Psychomotor test – This test accounts for abilities like manual dexterity, motorability
and coordination of individuals. It is also used for selection of semiskilled workers, who can
assist the main work force.
(d) Clerical aptitude test – Test look on specific capacities required for office work, which
includes checking and correcting spelling mistakes, copying, typing letters, keeping office
records and files and dispatching of mail from one place to another as an office
administrative requirements.

2. Achievement Test:

This test is conducted when an applicant claims to know some special professional
knowledge. It is useful to understand the quantum of specific knowledge the individual
possesses at the time of an employment needed by the organisation to select experienced
candidate.

This test includes:

(a) Job knowledge test – In this test a candidate is examined for the knowledge he
possesses. For instance, to promote a junior person to a seminar post, e.g., a LDC (Lower
Division Clerk) to UDC (Upper Division Clerk) in an organisation.

(b) Work sample test – A worker is doing his work of moulding section in a workshop of
the company. To find out his capability, the in charge of the section may give him to mould
a hot liquid material into a shape of one inch metal plate. If he succeeds in moulding the
desired shape; he can be rated as an experienced “Sheet Metal Worker.”

3. Situational Test:

This test is used to find out basic characteristics of an individual, viz., value system,
reactions and maturity, etc. A candidate is observed in his real life situation. In this he is
told to involve himself with other candidates to solve a critical situation by bringing out his
ideas.

(a) Group Discussion:

A topic of common interest is given to the group to discuss and to arrive at a conclusion. In
this the candidates’ ability to communicate with others, leadership quality, introducing
valuable ideas, coordinating skill and ability to converse and conclude the subject in a
cordial manner are judged.

(b) Basket Test:

This is another type of situational test conducted through a basket containing different type
of letters, requests, orders, etc., to be analysed by the candidates after going through the
contents of varied documents in the basket.

After studying contents of each appropriate reply is to be made or solution is to be found by

the individuals. In this a candidate’s capability to understand the subject of each paper and
will bring out his perception, conception, investigation and decision making capabilities as a
leader.

4. Interest Test:

It is the state of wanting to know something about or a capacity about a subject arousing in
a person, who is normally non-intellectual in nature. This test-is an inventory of “likes and
dislikes” of a person. The assumption of the test is that there is correlation bet ween the
interest of a person in his job and attaining success.

5. Personality Test:

Personality attributes are considered as important since they effect the entire behavioural
pattern of a person. Personality refers to the impression which an individual forms on
others. They are expressed in such traits like self-confidence, tact, conformity emotions,
control opinion, decisiveness sociability, so on and so forth.

(a) Objective test – Most of the personality tests are objective tests, as they are suitable for
group tests and can be scored objectively.

(b) Projective test – The test projects interpretation of certain ‘stimulus’ situations on
confused form of pictures and figures.

BARRIERS TO EFFECTIVE SELECTION

There are several barriers that can make it challenging for organizations to effectively select the
best candidates for a job. Some of these barriers include:

1. Unconscious bias: Recruiters and hiring managers may unconsciously favor candidates who
look or act like them, resulting in a lack of diversity and missed opportunities to hire the best
candidate.

2. Inadequate job analysis: If a job analysis is not conducted properly, the requirements of the
position may not be fully understood, leading to poor candidate selection.

3. Poorly designed selection processes: Selection processes that are not well-designed or that
lack structure can lead to inconsistent and subjective hiring decisions.

4. Limited candidate pool: A limited pool of candidates can make it difficult to find the right
person for the job, particularly in a tight labor market.

5. Inaccurate or incomplete information: Recruitment materials or job descriptions that are

inaccurate or incomplete can result in candidates who are not a good fit for the job.
6. Lack of proper training: Recruitment personnel or hiring managers who are not properly
trained in effective selection techniques may not be able to identify the best candidates.

7. Legal considerations: Legal considerations, such as discrimination laws and regulations, can
make it difficult to effectively select candidates while staying within legal boundaries.