Recruitment

Philosophy of Recruitment Right man on right job at the right time.

What is Recruitment? Recruitment is the process of searching for prospective employees and stimulating them to apply for the job so that the organization can select the most appropriate people to fill in job needs It differs from Selection. Recruitment is a positive process - building a roster of potentially qualified applicants, selection is a negative process of rejecting/ screening / eliminating to search the most suitable one.

Recruitment policy Corporate goals short/long term Identification of recruitment needs Preferred sources of recruitment Criteria for recruitment Financial implications of recruitment

 Recruitment has two main aims Projection of positive image organization the
organization Attracting & retaining them

Recruitment is the first contract that the organization makes with potential/ prospective employees- A critical function Recruitment is directly related with a number of activities- HR Planning, Employment Planning, Selection, Orientation, Placement, etc.

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Recruiting goals & Priorities

Human Resource Plans Number & type of vacancies Recruiting Philosophy Internal or external sources? Fill vacancies or hire for careers? Commitment to diversity? Marketing orientation to candidates? Ethics in recruiting

Attract large numbers of applicants Attract applicants willing to accept offers Fill vacancies quickly Fill vacancies at minimal cost Hire people who perform well Hire people who will stay with the organization Generate positive public relations Spillover

Recruiting choices and behaviors Plans Timing Methods Sources

 Factors Influencing Recruitment

External Principles of supply & demand Labour- market / unemployment Political/ Legal Considerations Companys image Internal Recruiting Policy (Internal source) Local Citizens (MNCs) / Expatriates Size of the Company Cost Growth of the Organization Less costly + Better knowledge of candidates Enhances employees morale/ commitment Stagnation -

Internal Recruitment

 No fresh blood No cross fertilization

External Recruitment
(+) Benefits of new skills, new talents and new experience to organizations Compliance with reservation policy become easy. Scope for resentment, jealousies and heartburn are avoided. (-) It is costly Chances of creeping in false positive and false negative errors. Adjustment of new employees to the organizational culture takes longer time.

 Recruitment Process
HR Planning Job vacancies (Number, Types etc.) Recruitment Planning Strategy development From where? How ? When? Target/ Applicants Population Searching ActivitiesSelling, Message, Media Application pool (Application Blank) Screening Potential Hires To selection Final Checks Induction

Methods of Recruitment

Direct Method Campus Recruitment Indirect Method Advertisement Third Party Method- employment agencies- public + private

 Sources of Recruitment
Newspaper advertising Search firms Employment agencies Employee referrals Networking College recruiting Internal posting Internet Unsolicited Self application- stray application Through references managers, union leaders, professional Employment- exchange Job/Head Hunters Institute/College- Campus Interviews Advertisement Wants ads- Identifies the job, benefits, org. Blind Ads- No identification of Org.- To apply in Box AIDA A- Attract attention I- Create interest in the job/org. D- Create desire to apply A- action- to apply Walk- Ins, Write- ins & Talk- Ins Radio/ T V / Cinema/ Posters/ Cassettes/ Videos, etc. Competitions- Poaching/ Raiding

Why Recruit on the Internet? Opinion of HR Managers & Headhunters

Access to more candidates Improved ability to target specific audience Cost of placing the job postings Speed Absence of middleman Convenience Distribution of postings Quality of candidates Less paperwork Resume management Quality of service Not presently using the Internet

Recruitment in Multinational Organization

Ethnocentric, where all key positions are filled by

nationals of the parent company. (A typical strategy employed in the earlier stages of a venture) Polycentric, where host country nationals fill all key positions in the subsidiary. Geocentric, where the best people are recruited regardless of nationality e.g. a national of a country in which neither the parent nor subsidiary is based could also be considered. Regiocentric, where decisions will be made on a regional basis (the new subsidiary will be based in one country within this region), with due regard to the key factor for success of the product/ service. For example, if local knowledge is paramount, host country nationals will be recruited, if knowledge of established product is the key factor, parent country nationals are likely to be targeted.

Requirement
Country
The culture of the country in which the subsidiary is based, in particular its perceived toughness. Host government requirements regarding the employment of foreigners and immigration requirements.

Individual
Language competence General international awareness Personal fit with cultural requirements above Requirements for training Degree of technical competence to do the job

 Organizational considerations
Considerable costs of international relocation of the individual and her/his family. High levels of expatriate failure rates discovered to be between 25-40% Opportunities for individuals to develop career paths without international experience.

Selection Processes Selection is a weeding out process- arriving at most suitable candidate by process of rejection- essentially a negative process. Selection follows the recruitment of a pool of job applicants. The selection process involves assessing the applicants to decide who will be hired. Selection is the process by which an enterprise chooses from a list of applicants the person or persons who best meet/s the selection criteria for the position available, considering current environmental conditions.

Typical order in which selection devices are used

Application blank Screening interview Tests More interviews Reference checks Conditional offer Physical examination Hire

Reject some candidates Reject some candidates Reject some candidates Reject some candidates Reject some candidates Offers rejected by some candidates

 Comprehensive application blank Stage I Screening of Application forms/ Curriculum Vitae

(C.V) preliminary application blank comprehensive application blank Stage II- Tests (a) Preliminary Test (b) Performance/Simulation tests / written/ screening
Work Sampling- replica of a job

Assessment- Centers- Line Managers, Qualified

Psychologists, Exercises that stimulate real problemsInterviews, In basket problems solving exercises, G. D. etc.

 b) Psychological Tests Supplement not substitute Intelligence Tests- quick learning, alert, reasoning etc.
Aptitude test a. clerical , mechanical, b. Interest test - individuals activity preference career choosing Personality Tests Emotional Tests etc. Situation Tests- performance + personality- for managerial position- problem solving

C) Physical Test Stage III - Selection & Interviews Types : Preliminary Interviews Final Interviews In depth- interview Stress Interview Unstructured Interview Structured Interview Group interview Panel interview In Trays

 Interview content
Personal qualities Physical health, personality etc. Academic achievements Experience Interpersonal competence (getting along with others) Career orientation (Aspiration, goals Snap judgment Decision on negative impression Pressure to favour Halo effect Strategic faults

Interview Problem

 Requirements
Preparation Reception Soliciting information Core interview Freezing discussion

 What we look when finally dealing the selection of a

candidate A passion for winning A clear ability to deal Strong analytical skill The ability to think innovative Positive orientation towards work The ability to work collaboration with others A drive for continuous self development & a genuine interact in the development of others Decisiveness & assertiveness

Stage IV Checking the reference Checking the antecedents Medical check up

 Placement means posting on the job Probation (a) job fit (b) job mismatch (c ) skill

Placement & Orientation

Orientation is the personnel activity which

deficiency

introduces new employees to the enterprise and to their tasks, superiors, and work groups. Welcome Introduction Integration
Removing fear Creating good impression Providing information Socialization Adjustment

(c ) relieves anxiety makes him feel at home - Rapport with the environment - Lasting impression

Induction programmes
The HR department may initiate the following steps while organizing the induction programme:
Welcome to the organization Explain about the company / History Philosophy Show the location/department where the new recruit will work/ products/ services Give the companys manual to the new recruit

 Provide details about various work groups and the extent of unionism within the company Give details about pay, benefits, holidays, leave, etc. Emphasis on the importance of attendance or punctuality Explain about future training opportunities and career prospect. Clarify doubts, by encouraging the employee to come out with questions Take the employee on a guided tour of buildings, facilities, etc. Hand him over to his supervisor. Safely meaning

INTERNAL MOBILITY
It is internal movement within the organisation. It contains
following internal processes like (i) placement (ii) promotion, (iii) demotion (iv) transfer (v) separation Placement : Placing the new employee to suitable jobstrying him on different jobs, job enlargement, job enrichment, pooled job, independent job, etc. Promotion : Promotion is the upward assignment/ movement of an individual in an organisations hierarchymore responsibility, enhanced status & increased income. Promotion is different than upgradation of a post. In upgradation only increase in wages takes place. Why promotion?
Recognition of a job well done. Retain/Reward an employee Org./ Individual effectiveness Job- satisfaction Loyalty

 PROMOTION POLICY
Ratio of Internal promotion to External recruitment Finalizing promotional channel / LOP Relationship of any disciplinary action to promotion Determining the criteria for promotion- Elibility Periodicity, Appraisal, Interview etc. Seniority Merit Merit vs. Seniority Seniority- cum-merit Time Scale Promotion (based on seniority) Merit Promotion (based on merit) Merit-cum-Seniority (Striking a balance between merit & Seniority) Adhoc promotions or Expediency promotions Need based

Criteria for Promotion

Types of Promotions

 Advantages
Satisfaction & Prestige Recognition & Incentive to better employees Reduces turnover Motivates people

Disadvantages

In breeding/ stagnation Peters Principle Level of Incompetence-

Why Demotion?
Adverse business conditions After accepting promotion an employee request to revert to his old job due to various reasons A mismatch between promotees ability/ interest and the demand of the new job Demotion punishment

Demotion

 Demotion policy
Clear, reasonable & transparent rules for demotion Well communicated Fair, firm & Consistent Periodical Review Transfer: Transfer is lateral movement. It is change in job assignmentMay involve promotion or demotion or administrative requirement or job requirement no reduction in salary, no change in status May be reward, May be punishment. There are two types of transfers (1) Personal transfer or request (2) Companys driven transfer

Transfer
Personal Transfer : Individual driven transfers are those occasioned by the characteristics and desires of the employee, and are primarily in his/her interest. The reasons for this could be many. To correct erroneous placement To relieve the monotony of a job, acquire better working conditions, and join
friends. To provide an outlet from blind alley jobs To avoid interpersonal conflicts To escape an unpleasant work situation

To reduce commuting distance To pursue educational opportunities, self activism To accommodate a dual career problem In the interest of age/health, education of children, housing difficulties, and to joint immobile dependents. A search to creating opportunities To avail of training elsewhere, to facilitate later advancement or promotion Better opportunities for advancement Companys Driven Transfers A company may initiate transfers for the following reasons: Need for temporary adjustment for leave and absence etc. Fluctuation in work requirement Better utility of employee Versatility transfer or job rotation Shift transfer Remedial transfer to correct faulty placement On compassionate ground Panel transfer- punishment/reward

 Employees generally resist Co. driven transfer Suspect victimization by management Unwilling to move to unknown place Painful to leave social groups, friends & relatives Develops interests in work, place etc. and dislikes leaving them Develop Craft consciousness and leaving becomes painful Transfer policy Transfer is a costly affair. There are number of transfer benefits
advanced pay, disturbance allowance, packing- allowance, transport allowance, tranist leave etc. It is risky, also full of IR potential . Policy should answer the following:
Transparency- circumstances in which transfer is made Basis on which transfer is made Principle followed in transfer- seniority, juniority, skill attitude required on the job Details about future job to which transfer is made Assurance about perks and benefits

 Separation : Separation occurs

because of variety of reasons.
Legal separation of Redundancy separation Lay off Retrenchment Golden handshake Outplacement Natural wastage Death Retirement Prolonged sickness Voluntary separation Resignation, due to domestic problems, job hopping

Performance Management

CONCEPT OF COMPENSATION & REWARD

C/R possibly the most critical & strategic area of HRM Employers perspective , Employees perspective,

Concept of compensation,

An organization exists to accomplish specific goals &

objectives hence, hires employees. The individuals hired by the organization have their own needs. One is for money, which enables them to purchase a wide variety of goods & services available in the marketplace. Hence there is a basis for an exchange: the employee offers specific behaviors desired by the organization to meet its goals and objectives in return for money, goods, & / or services. Sale of hands brains soul??

 Compensation emphasizes on fair- days pay for

fair days work. Purely extrinsic A quid pro quo contract All forms of financial returns and tangible services and benefits employees receive as part of employment relationship-

Cash- compensation Base Pay, D. A. Short Term Incentives, Long Term Incentives (Equity Incentives) Benefits Income Protection, Allowance, work/LifeProtecting ones Bonuses (attendance, performance based etc) Shifts, Supplements. Danger money/ Dirt money Immediate focus Trade off between pay & efforts Monetary contract

CONCEPT OF REWARD

Composite of all organizational mechanisms,

and strategies used to finally acknowledge Employees behavior & performance. It includes all forms of compensation, specially nonmonetary, awards & recognition, training opportunities, promotions, assignments, working conditions etc.
Located more in behavioral science It part of broader strategies of enhancing loyalty, motivation & satisfaction Encompasses career opportunities, job- securities, learning opportunities, achievement, recognition

 Economic incentives are becoming rights rather than rewards. So we must acknowledge that insufficient monetary rewards for performance can not be rewards for performance can not be compensated by good human relations. If talent is an organizations most important asset, maximizing that talent is its most critical challenge. The challenge lies in issues relating to developing the skills to motivate people to perform at their best, making work meaningful and rewarding, fostering commitment & innovation, retaining top performers & improving their job performance today & giving them the edge they need to become the leader of tomorrow. More prospective in focus To unleash latent potentials To create sustained commitment Psychological contract Personal recognition can be more motivational than money asserts Bob Nelson, author of 1001 Ways to Reward Employees (Workman Publishing, 1994). You can obtain from your employees any type of performance or behaviour you desire simply by making use of positive reinforcement.

ADVANTAGES OF C & R SYSTEM A MANAGEMENT PERSPECTIVE

Attracting & retaining good performer Improving Individual & Corporate Performance Improving Motivation Clarifying job- role & duties Improving communication Reinforcing management control Identifying developmental opportunities Importance that job deserves (Status, Skill, Responsibility) Encouraging loyalty to the Organization Controlling cost Complying Govt.s Policies/ Laws Maintaining Co.s Image

ORGANISATIONS COMPENSATION POLICY

Business Strategy
To attract, retain, motivate the Right man What org. can afford What talent will be required to meet org. strategic goals

The economy- macro level factors like global

trends, national wage policies- minimum, fair & living wages, legal provisions
Employer employee are having different perspective of compensation. Compensation & reward different concepts Macro National level compensation policy Industry ( micro level compensation policy)

PAY POLICY 1. Motivational strategies Internal Consistency Adams equity theory of motivation Job evaluation to find the worth of the job 2. External Parity Labour Market/Ongoing rates Capacity to pay 3. Organization strategy

 Wage structure Wage/job family

Managerial Technical/supervisory Administrative/clerical (staff) Manual- Highly skilled, skilled, semi skilled, unskilled Basic pay Base pay (fixed pay+ variable pay) Dearness allowance Other allowances & Incentives like bonus etc.

Components of wage structures

Incentive Scheme Schemes where the workers earnings vary in the same proportion as output Schemes where earnings vary less proportionately than output Schemes where earnings vary proportionately more than output Schemes where earnings differ at different levels of output.

 This points to designing appropriate reward programmes

linked to performance. Total reward system Total Reward System has both monitory and nonmonitory components, comprising incentives such as base- pay, variable pay, benefits, an exciting and challenging work environment the opportunity to work with excellent colleagues and leaders and industrial growth opportunity- the concept has been derived from Herzbergs theory of motivation- Hygiene factors + motivators
Direct financial- Base-pay, variable pay, incentives, stock options, Bonus, Merit increases, Spot-rewards, deferredpayment etc. Indirect-financial- Benefits, Perquisites, non-cash-recognition, sabbaticals, Q.W.L-/Clubs, Cos paid holidays, children schooling, home-office, career-counseling etc.

Profit is the most important criteria Scheme may use cash, or share Gain sharing Share office scheme Employees share ownership plan Higher software system offers a platinum stock option no real share transfer, employers receives a cash payment equivalent to the rise in value of national stock Incentive Non cash awards Skill based pay allows employees to program through a range of grade Broadband pay

Compensation system

Indirect compensation

Direct compensation

rotection programs Medical insurance Life insurance Disability income Pension social security

Pay for time not worked Vacations Holidays Sick leave Jury duty

Services & Perquisites Recreational facilities Care Financial planning Low cost or free meals

Base pay

Merit pay

Salary

Incentive pay Bonus Commission Piece rate Profit sharing Stock option Shift differential

Wage

Deferred Pay Savings plan Stock purchase Annuity

Legal aspect of Compensation

Minimum wages act Payment of wages act Equal remuneration act Payment of bonus act Income tax act

Principle of compensation
Equitable compensation systems
Internal equity through job evaluation methods External parity market survey methods Job pricing Pay ranges Broad banding

Wage structure
Wage Differential Fair Wages Committee The degree of skill The strain of work The experience involved The training required The responsibilities undertaken The mental & physical requirements The disagreeableness of the task The hazard attendant on the work, and The fatigue involved. Wage component Basic/ DA + variable pay + fringe benefits

Standard Pay Package

Government Department
Basic DA : 100% to 50% neutralization of dearness HRA : different for different category of cities Delhi 30% of basic CCA : According to city (A class, B Class, C class Conveyance : Different for different slabs of pay

Public sector undertakings

Basic : Rs 4/- per point of price indices DA : According to city (A class, B Class, C class Conveyance : Different for different slabs of pay HRA: 30%, 20 % & 15% of A, B, C category of citied Tiffin Allowance : Rs 30 /- per day Education Allowance : Rs. 125/- per child, subject to maximum of two Electricity Water Allowance; Rs. 150/-

 General
Annual Bonus or ex-gratia LTC/ LLTC Medical self, wife, children, parents, unmarried sister, widow sister Leave Encashment Basic (fixed + variable ) HRA 35 % of basic 45% Education & Hotel Allowance CCA Servant Wages Cost of living Allowance Special pay Annual Bonus Executive commission Medical LTC

Private sector

Note Statutory Elements:

PF (12%- 12%) Pension- as per scheme (legal scheme or developed by company) Statutory Bonus

VARIABLE PAY SCHEME/ PAYMENT BY RESULT

Wages for Fair Days work, for More

Work-wage incentive Linking pay to performance Variable pay

 What is performance related pay?

Financially measurable reward to an individual which is linked directly to individual team, or cos performance. PRP links pay progression to performance and/or comp rating Merit Pay individual incentive bonuses individual discretionary bonuses, team / to prefer bonuses, skilled based payment etc. Merit pay basic salary increase by .. Performance alone (i) incremental system (ii) percentage increase Individual bonuses Senior executives, sales managers production managers - reward for performance subject to assessment after the event. Team /group bonus- designed for group performance CO wide scheme separate, identifiable reward to all or some, depending on cos performance

Types of Variable Pay Plans

Individual Piece rate Sales commissions Bonuses Special recognitions (trips, merchandise) Safety awards Attendance bonuses

Group/ Team Gain sharing Quality improvement Cost reduction

Organization- wide Profit sharing Employee stock options Executive stock options Deferred compensation

Factors for successful Variable Pay Plans

Linked to Organizational objectives Results in Desired behaviors Variable Pay Clear Understandable Plan details
Performance Results Linked To payouts

Sufficient Financial Resources Available

Consistent With organization Culture Clearly Separated From base pay

Clearly communicated

Measurable performance

Current Updated plans

Executive Compensation

Perquisites

Supplemental Benefits

Long- Term Incentives

Annual Bonuses

Executive Salaries

Common Executive Perks

Transportation Company car or car allowance First class air travel Company airplane usage

Financial/Legal Financial planning Tax planning/ tax preparation No or low interest loans Legal counseling

Memberships Country club Health club Luncheon club

Arguments in the Executive Pay debate

Criticisms Boards of Directors give sizable rewards to both high & low performing executives Executives should not get rewards & bonuses for laying off much of the workforce Total compensation packages, especially with the golden parachutes for failure, are out of line. Many people contribute to a companys success, not just the CEO. Others are paid only a fraction of CEOs salaries Executive compensation frequently is not linked to company performance. Counter- Arguments The market for executives is tight. Bidding wars & concern over retention drive compensation packages. Executives are paid for making difficult decisions to benefit companies Sports & entertainment stars earn as much or more for playing games or acting. CEOs earn their money with endless hours, great pressures, and skill sets that few others possess. Measuring executive performance is difficult, and stock prices alone are insufficient.

Emerging Trends
Charles Handy- The new org equation for success is that profit & productivity are best created by half of the workforce, paid twice as well and producing three times as such. This can be achieved through performance linked incentive and reward system. Such a system works on a very simple promise- If you measure it, people will do it. If you measure it & pay for it, people will do it in spades. If what you measure matches corporate goals and strategies, the co. will be successful.

TRAINING &DEVELOPMENT FOR PERFORMANCE IMPROVEMENT

The training function, now popularly called human resource development (HRD), coordinates the provision of training and development experience in organisations Training & Development refers to imparting of specific skills, attitude and knowledge to an employee for improved performance It is any attempt to improve current or future employee performance by increasing an employees ability to perform though learning, usually by changing the employees attitude or increasing his or her skills and knowledge. The need for training and development is determined by the employees performance deficiency, computed as follows:Training & development need= standard performance Actual performance Education, training, development Why training?

Newly recruited employees require training Existing employees require training for higher level job Existing employees requires training Training is required for attitudinal & behavioral changes.

An instructional Systems Design Model

ASSESS NEEDS Assess training needs Organizational analysis Job & task analysis Person analysis Develop training objectives DESIGN & DEVELOP Design & develop training, applying knowledge of learning principles Select training methods Develop detailed content Develop training materials Pilot test training program Train trainer . DELIVER Deliver Training EVALUATE Evaluate training: Were objectives met? Reaction Learning Behavior Results

Methods & Sources of Information for Needs Assessment

Methods of Gathering Data for Needs Assessment Sources of Information Existing records (e.g., output, quality, waste, downtime, complaints, accidents reports, requests for training, exit interviews, performance appraisals, equipment operation manuals, procedures manuals, job descriptions, hiring criteria, personnel files, competency models & profiles) Incumbents Superiors Subordinates Subject matter experts Clients

Search of existing records Individual interviews Group interviews Questionnaires Performance tests Written tests Assessment centers Observation Collection of critical incidents Job analysis Task analysis

 Training need analysis

Org. analysis Job/Task analysis Man analysis Analysis of equipment Manpower analysis Brain storming

On the job training

Method of training
Orientation training Job instruction training Apprentices training Internship Job rotation / job enlargement / job enrichment Coaching

Off the job training

Lectures

Films / computerized / packaged / programmed instruction TVs Discussion / conferencing Case & studies Role Playing Simulations /games Sensitivity training In basket / in tray, method

Different techniques of Training

Ice Breakers games to know each other Leadership Games different styles of leadership Skill Games analytical skill Communication games bias free listening & talking Team- building games collaborative effort Mirroring external Monodrama insight Outward- bound Training- stress, courage Cross cultural training varied culture

Different Instructional Methods for Employee Training

INSTRUCTIONAL METHODS Classroom programs live Workbooks/ manual Videotapes Public seminars CD- ROM computer- based Intranet/organization's internal network Self- study programs (Non computerized) Internet/ WWW Self assessment instruments Role plays Case studies Games/ simulations (not computer based) Audio cassettes Games/ simulations (computer- based) Video conferencing (to group) Satellite/ broadcast TV Teleconferencing (audio only) Outdoor experiential programs Videoconferencing (individual desktops) Virtual reality programs

Contribution of Training
Incrreased productivity Impoved morale Reduced supervision Reduced accidents Increased organizational stability

Evaluation of training Programme:

Questionnaires (feedback forms) Test / Exams Interview Observations Supervisions

Kirkpatricks Four Levels of Training Evaluation

Evaluate Reactions Did the trainees like the program, the trainers, the facilities? Did they think the course was useful? What improvements can they suggest? Evaluate Learning To what extent do trainees have greater knowledge or skill after the training program than they did before? Evaluate Behavior Are trainees behaving differently on the job after training? Are they using skills & knowledge they learned in training? Evaluate Results Is the organization or unit better because of training? Distribute & analyze questionnaires Administer Written tests Performance tests Graded simulations Collect performance data from Superior Peer Client Subordinate Measure Accidents Quality Costs Productivity profits Turnover

 How to make training effective?

Management commitment Comprehensive, continuous & systematic approval Need based training Link T& D with performance Review of training policies/ practices System of evaluation of training effectiveness.