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Q. What are the different sources of recruitment? Explain the merits and demerits of each.

Ans. The sources of recruitment are broadly divided into internal sources and external sources consisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this source for higher level of jobs due to availability of most suitable candidates for jobs relatively or equally to external sources, to meet the trade union demands and due to the policy of the organization to motivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his family members.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives.

External Sources of Recruitment

6 Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned.

1 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants inIndia perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities.

2 Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises inIndia to fill certain types of vacancies through public employment exchanges.

3 Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm.

4 Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required.

5 Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.

6 Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source.

7 Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management.

8 Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.

9 Consult In: the busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants.

What is Employee Retention ?

Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time. Every organization invests time and money to groom a new joinee, make him a corporate ready material and bring him at par with the existing employees. The organization is completely at loss when the employees leave their job once they are fully trained. Employee retention takes into account the various measures taken so that an individual stays in an organization for the maximum period of time.
Why do Employees Leave ?

Research says that most of the employees leave an organization out of frustration and constant friction with their superiors or other team members. In some cases low salary, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees who are really important for the system and are known to be effective contributors. It is the responsibility of the line managers as well as the management to ensure that the employees are satisfied with their roles and responsibilities and the job is offering them a new challenge and learning every day.
How to Retain Employees

10 Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity.

11 Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis.

12 E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet.

13 Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr. 1.

Merits of Internal Sources of Recruitment

Demerits of Internal Sources of Recruitment

Motivates present employees when they are Trade union pressure may not always give the upgraded internally. right candidate for the job. The management may have to consider some concessions. Retrenched workers get an opportunity to work again. Managements gets a chance to postpone promotion due to interpersonal conflicts.

2. 3.

Dependents of the deceased get a job easily Excessive dependence on this source results in in-breeding, discourages flow of new blood into the organization. Morale of employees is improved The organization becomes dull without innovations, new ideas, excellence and expertise.


5. 6.

Loyalty, commitment, security of present employees can be enhanced Cost of recruitment, training, induction, orientation, etc is reduced


Trade unions can be satisfied.

Merits and Demerits of External of Recruitment

Sr. 1. 2. 3.

Merits of External Sources of Recruitment The candidates with skill, knowledge talents etc are generally available. Cost of employees can be minimized. Expertise, excellence and experience in other organizations can be easily brought into the organization. Existing sources will also broaden their personality. Human Resource mix can be balanced Qualitative human resource benefits the organization in the long run. Reduction in time for recruitment Increase in the selection ratio i.e. recruiting more candidates. HR professionals can concentrate on strategic issues.

Demerits of External Sources of Recruitment Campus recruited employees lack work experience. Cost of recruitment is high and there is no confidentiality. Specified vacancies have to be filled by candidates referred by employment exchanges which do not allow other candidates to be eligible.

4. 5. 6. 7. 8. 9.

Employee Selection Process 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 Employee selection Process takes place in following order-

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

2.Application blanks- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc.

3.Written Tests- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased.

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

5.Medical examination- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism.

6.Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.

Hiring employees is just a start to creating a strong work force. Next, you have to keep them. High employee turnover costs business owners in time and productivity. Try these tactics to retain your employees. Offer a competitive benefits package that fits your employees needs. Providing health insurance, life insurance and a retirement-savings plan is essential in retaining employees. But other perks, such as flextime and the option of telecommuting, go a long way to show employees you are willing to accommodate their outside lives. Provide some small perks. Free bagels on Fridays and dry-cleaning pickup and delivery may seem insignificant to you, but if they help employees better manage their lives, theyll appreciate it and may be more likely to stick around. Use contests and incentives to help keep workers motivated and feeling rewarded. Done right, these kinds of programs can keep employees focused and excited about their jobs. Conduct stay interviews. In addition to performing exit interviews to learn why employees are leaving, consider asking longer-tenured employees why they stay. Ask questions such as: Why did you come to work here? Why have you stayed? What would make you leave? And what are your nonnegotiable issues? What about your managers? What would you change or improve? Then use that information to strengthen your employee-retention strategies. Promote from within whenever possible. And give employees a clear path of advancement. Employees will become frustrated and may stop trying if they see no clear future for themselves at your company. Foster employee development. This could be training to learn a new job skill or tuition reimbursement to help further your employees education. Create open communication between employees and management. Hold regular meetings in which employees can offer ideas and ask questions. Have an open-door policy that encourages employees to speak frankly with their managers without fear of repercussion. Get managers involved. Require your managers to spend time coaching employees, helping good performers move to new positions and minimizing poor performance. Communicate your businesss mission. Feeling connected to the organizations goals is one way to keep employees mentally and emotionally tied to your company. Offer financial rewards. Consider offering stock options or other financial awards for employees who meet performance goals and stay for a predetermined time period, say, three or five years. Also, provide meaningful annual raises. Nothing dashes employee enthusiasm more than a paltry raise. If you can afford it, give more to your top performers. Or, if you dont want to be stuck with large permanent increases, create a bonus structure where employees can earn an annual bonus if they meet prespecified performance goals.

Make sure employees know what you expect of them. It may seem basic, but often in small companies, employees have a wide breadth of responsibilities. If they dont know exactly what their jobs entail and what you need from them, they cant perform up to standard, and morale can begin to dip. Hire a human-resources professional. If your company is nearing 100 employees, consider hiring a human-resources director to oversee and streamline your employee structure and processes. Putting one person in charge of managing employee benefits, perks, reviews and related tasks takes a huge load off of you and makes sure employees are treated fairly. HR managers are also more up to date on employment laws and trends. They can set up various programs and perks you may not have known existed.

HR audit

A healthy HR function in an organization is as important as the physical and mental well being of a human body. Typically the basic reason why organizations prefer to conduct an HR audit is to get a clear judgment about the overall status of the organization and also to find out whether certain systems put in place are yielding any results. HR audit also helps companies to figure out any gaps or lapses and the reason for the same. Since every company plans certain systems and targets, an HR audit compares the plans to actual implementation. The concept of HR audit has emerged from the practice of yearly finance and accounting audit, which is mandatory for every company, to be done by external statutory auditors. This audit serves as an examination on a sample basis of practices and systems for identifying problems and ensuring that sound accounting principles are followed. Similarly, an HR audit serves as a means through which an organization can measure the health of its human resource function. Organizations undertake HR audits for many reasons: 1 To ensure effective utilization of human resources. 2 To review compliance with tons of laws and regulations. 3 To instill a sense of confidence in the human resource department that it is well-managed and prepared to meet potential challenges and opportunities. 4 To maintain or enhance the organization's reputation in a community. An audit is a systematic process, which examines the important aspects of the function and its management, and is a means to identify strengths, weaknesses and areas where rectification may be warranted. An audit is done on sampling basis. And in sampling, not every instance or situation can be examined. An HR audit can be used by an organization for multiple purposes. Some of the more common reasons are:

To identify and address HR-related problems. To seek out HR-related opportunities.

To conduct due diligence for mergers and acquisitions. To support initial public offerings.

How an audit is conducted is very often determined by its intended use. For instance, the type of audit used to ascertain HR practices may be significantly different from the type of audit used to support an initial public offering. Although the areas examined may be similar, the process used and the depth of inquiry will vary from the intended outcome. The audit process The HR audit process is conducted in different phases. Each phase is designed to build upon the preceding phase so that the organization will have a very strong overview of the health of the HR function, at the conclusion of the audit. These phases include: Pre-Audit Information: This phase involves the acquiring and review of relevant HR manuals, handbooks, forms, reports and other information. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors. Pre-Audit Self-Assessment: In order to maximize the time spent during subsequent portions of the audit, a pre-audit self-assessment form, if sent to the client can be of use. The selfadministered yes/no questionnaire asks a number of questions about current HR policies and practices. The completion of this self-administered questionnaire allows auditors to identify key areas for focus during the HR audit. On-site Review: This phase involves an on-site visit at the client's facility interviewing staff regarding HR policies and practices. A very in-depth HR audit checklist is completed. Records Review: During the on-site visit, a separate review is conducted of HR records and postings. Employee personnel files are randomly examined as well as compensation, employee claims, disciplinary actions, grievances and other relevant HR related information are checked. Audit Report: The information gathered is used to develop an HR audit report. The audit report categorizes action needs into three separate areas. The areas that are urgent and important (UI), not urgent needs but important (NUI), not urgent but not important needs (NNI)), and important opportunities needs (IO). As a result of this scheme of classification, managements can prioritize their steps. The critical areas The comprehensive HR audit covers all areas of HR management like recruitment practices, training and development, compensation and benefits, employee and union relations, health, safety and security, miscellaneous HR policies and practices-welfare, strategic HR issues, manpower planning/budgeting.

Besides classifying needs in each of the above areas, the HR audit also cites relevant laws, cases and research to support the recommendations. Preparation for an audit Auditor engagement: If external firm carrying out the audit, it is preferable to set terms in writing defining and agreeing on scope .If using internal resource it is better to appoint them formally with clarity on scope and select persons who are non political or those who are not high on hierarchy. Also, if internal persons are auditing there must be training in auditing. Documents, manuals, handbooks, forms and reports auditor must have access to relevant information contained in employee files and other confidential documents of the organization. Auditors must be given unrestricted access to records, once they sign agreement for confidentiality. Data gathering: Completion of a self-assessment questionnaire significantly expedites the audit process and allows for better audit planning. On-site access: The on-site portion of the audit is the most critical. Using audit findings How does an organization use HR audit results? Since the HR audit results are classified, an important aspect is already taken care of. Critical needs should be the first ones to be addressed. Organizations generally have three options for dealing with audit results. * Use the HR audit as a blueprint or action plan for addressing HR needs. * Address as many needs as possible using the organization's internal expertise and resources. * Contract out those need areas where internal expertise and resources are not available or do not fit in the core competencies of the organization. An HR audit is much like an annual health check. It can perform the same function for the organization. An audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its HR functions. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that the government regulations and company policies are being adhered to. The key to an audit is to remember that it is a tool to discover and not to test. There will always be room for improvement in every organization. Where a human resource associate comes and makes sure that your employee files are up to date

Human Resource (Manpower or Personnel) Planning (HRP) involves :1. Forecasting (Estimating) the Manpower requirements and recruitment. 2. Manpower Allocation 3. Manpower Motivation 4. Manpower Development

Steps In Human Resource Planning HRP Process

Post : Gaurav Akrani Date : 4/28/2011 02:36:00 PM IST Comment (1) Labels : Management

HRP is done by the HRD manager. He is supported by the HRD department. He takes following Steps in the process of Human Resource Planning HRP.

1. Review of Organisation's Objectives

The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job's analysis.

2. Estimation of Manpower Requirements

The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply

The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.

4. Comparison of Manpower

The HRD manager then compares the manpower requirements and manpower supply.

5. In case of no difference

If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

6. In case of difference

If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions.

1. Manpower Surplus

If the manpower requirements are less then the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions :1. Termination i.e removal of staff. 2. Lay-off. 3. Voluntary retirement.

2. Manpower Shortage

If the manpower requirements are greater than the manpower supply then there is manpower shortage. During manpower shortage, the HRD manager takes the following actions :1. Promotions 2. Overtime 3. Training to improve quality. 4. Hire staff from outside, etc.

7. Motivation of Manpower

HRP also motivates the employers and managers by providing, financial and non-financial incentives.

8. Monitoring Manpower Requirements

The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation

Job analysis

Job analysis is the formal process of identifying the content of a job in terms activities involved and attributes needed to perform the work and identifies major job requirements. Job analysis was conceptualized by two of the founders of industrial/organizational psychology, Frederick Taylor and Lillian Moller Gilbreth in the early 20th century.[1] Job analyses provide information to organizations which helps to determine which employees are best fit for specific jobs. Industrial/organizational psychologists are often the professionals who perform job analyses. These professionals use either a task-oriented or worker-oriented approach. The task-oriented approach focuses on identifying each individual task involved in performing the job well. The worker-oriented approach focuses on the attributes need in a prospective employee to perform the job successfully. The Occupational Information Network (O*NET) is an online website which provides analyses of a variety of jobs.

One of the main purposes of conducting job analysis is to prepare job descriptions and job specifications which in turn helps hire the right quality of workforce into an organization. The general purpose of job analysis is to document the requirements of a job and the work performed. Job and task analysis is performed as a basis for later improvements, including: definition of a job domain; description of a job; development of performance appraisals, personnel selection, selection systems, promotion criteria, training needs assessment, legal defense of selection processes, and compensation plans.[2] In the fields of human resources (HR) and industrial psychology, job analysis is often used to gather information for use in personnel selection, training, classification, and/or compensation.[3] The field of vocational rehabilitation uses job analysis to determine the physical requirements of a job to determine whether an individual who has suffered some diminished capacity is capable of performing the job with, or without, some accommodation. Professionals developing certification exams use job analysis (often called something slightly different, such as "task analysis" or "work analysis") to determine the elements of the domain which must be sampled in order to create a content valid exam. When a job analysis is conducted for the purpose of valuing the job (i.e., determining the appropriate compensation for incumbents) this is called "job evaluation." Job analysis aims to answer questions such as:

Why does the job 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 worker do the job? What qualifications are needed to perform the job?

What are the working conditions (such as levels of temperature, noise, offensive fumes, light) What machinery or equipment is used in the job? What constitutes successful performance?

How To Conduct a Job Analysis 1. Review the company's documents. 2. Research other job description resources. 3. Interview the staff currently involved with the position. 4. Have employees write job duties. 5. Review materials and reduce to minimum requirements. 6. Have employees evaluate the list. 7. Revise and submit for final approval.

Step One: Review the Company's Documents The first step of a job analysis is to review all of the company's documentation on the job you want to write a new job description for. This includes the prior job description (if available), newspaper advertisements related to the job in question, recruiting brochures, and evaluation forms. These documents will give you a base to work from in generating a new job description.

Step Two: Research Other Job Description Resources The next step is to review other companies' descriptions of similar jobs. You may even want to check out a book containing job descriptions in order to locate standard duties for specific positions like secretary, executive assistant, accountant, clerk, etc. Use these resources to get a few ideas on how to word your job description, and how to generate a list of minimum qualifications.

Step Three: Interview the Staff Currently Involved With the Position After you have a list of duties that are normally associated with the job in question, the next step is to interview the employee, or employees, who is or are currently occupying the position. Ask them what the minimum qualifications that are needed to successfully meet the requirements of the job, what tasks and duties the job normally entails, and any "as needed" duties that this job requires. After interviewing the employee you will also want to interview their supervisor or manager. Ask the manager or supervisor the same questions, and also ask if they expect to add or remove duties or responsibilities to the job in the near future. (i.e. If two jobs are to be combined in a few months then there may be

several new responsibilities added to the job description that the current employee isn't aware of yet. If this is the case, you should also interview the person who occupies the position that will be combined with the original job that you are analyzing.)

Step Four: Have Employees Write Job Duties When you ask the employees to write out the minimum qualifications and duties required to be successful in the position, try to stress the importance of only including "minimum" qualifications and only "essential" duties. For example, the current employee in the Accountant I position has an MBA and a CPA's license. However, the duties required to successfully perform the job really only need the skills developed through a Masters level program in Accounting, Business, Finance, or some other related field. For the purpose of the job description the qualifications listed should only include Master's Degree in Business, Finance, Accounting or a related field. You may also want to include other acceptable combinations of schooling and work experience. For example a masters degree is equal to 5 years work experience and a Bachelor's degree, or 10 year of work experience in a similar field and no higher education.

Step Five: Review Materials and Reduce to Minimum Requirements At this point in the job analysis you should have quite a bit of information about the job you are analyzing. In this step you will want to compile all of the vital information and get rid of any unnecessary information. Also similar or related tasks should be compiled into a single duty title where possible and practical. For example the employee may say stated that their duties include: going to the post office, processing incoming and outgoing mail, and sorting and delivering mail to appropriate offices. The combined duty title for these listed specific duties could be simply "mail processing."

As you go through the list of duties, eliminate duties that are duplicated or that are optional. For example the current employee may cover for another position when an employee is absent because of illness or vacation. However, the notes from the supervisor don't mention this as a required duty for the position so it should be eliminated from your list because the next employee won't be required t take on that responsibility.

When you are done with this step you should have a list of minimum qualifications and duties required to perform the job in question. Step Six: Have Employees Evaluate the List Give the employees occupying the job and their manager a copy of the list that you just generated. Have them review the list to make sure that it covers all of the duties needed, and all of the qualifications needed to perform the job. Have them make notes and return the list with their suggestions to you by a certain date. (Be sure to give them an adequate amount of time to complete their review and get back to, keeping in mind that they have other job related responsibilities to deal with. However, a deadline should be set, to avoid procrastination and to make sure that you get the evaluations back in a timely manner.

Step Seven: Revise and Submit for Final Approval Use the notes from the employees to revise the job description list. When you have the final draft, next meet with the personnel manager for the final approval of the job description list. Once approved you'll be ready to write your official job description.

Career Planning ----- Meaning Features

A career can be defined as a sequence of separate but related work activities that provides continuity, order and meaning in a p erson's life.' Career planning and development is a deliberate process through which a person becomes aware of personal career-related attributes and lifelong series of stages that contribute to his or her career fulfillment. Career planning and development is not a one-shot training programme. It has longer time frame and wider focus. It is an ongoing organised and formalized effort that recognizes people as a viral organisational resource

Features of Career Planning

Based on the interpretation of the definitions in Box 9.1, the following features of career planning have been developed: Career planning normally follows a bottom-up approach in which the process begins <!--[if !supportLists]-->

with the individuals, works upwards, and ends with organizational intervention It is not a one-time affair but an ongoing process by which an employee identifies the needs and also the methods to fulfill those needs on a regular basis. It aims at matching the individual's career goals with the opportunities available. It is a means of achieving employee progression and organizational efficiency and not an end in itself. It is the collective responsibility of both the individual employee and the organization.
It is normally made in a dynamic environment where the changes in the demand for and supply of labour, the characteristics of labour, technology competitive conditions and market strategies are rapid and often radical
OCTAPACE: Openness & Risk Taking: Employees feel free to express their ideas & the organization is willing to take risks & experiment with new ideas & new ways of doing things. The degree of openness of the organization is an important factor in determining the nature of various dimensions of HRD being designed. Confrontation: Employees face the problems & work jointly with others concerned to find its solution. They face the issues squarely without hiding them or avoiding them for fear of hurting each other. Trust: A minimum level of trust may be deemed necessary for the introduction of the performance appraisal system and other elements of HRD. Employees department & groups trust each other & can be relied upon to do whatever they say they will. Authenticity: It is the value underlying trust. It is the willingness of a person to acknowledge the feelings he/she has, and accept himself/herself as well as others who relate to him/her as persons.

Pro-activity: Employees are action oriented, willing to take initiative & show a high degree of proactivity. They anticipate issues and act or respond to the needs of the future. Autonomy: It is the willingness to use power without fear, and helping others to do the same. Employees have some freedom to act independently within the boundaries imposed by their role/job. Collaboration: Collaboration involves working together and using one anothers strength for a common cause. Individuals, instead of solving their problems by themselves, share their concerns with one another and prepare strategies, work out plans of action, and implement them together. Experimenting:Experimenting as a value emphasizes the importance given to innovation and trying out new ways of dealing with problems in the organization. (

A detailed explanation to each of them is given in the document attached. OCTAPACE also represents eight HRD values; The eight HRD values, viz. OCTAPACE values (Openness, Trust, Pro-action, Confrontation, Collaboration, Authenticity, Autonomy, and Experimentation), give a sense of direction to the HRD function. (

HR COMPETENCY TOOLKIT Competencies are the critical knowledge, abilities, skills and personal characteristics necessary for superior performance. They are linked to the specific work performed in a particular business environment but focus strongly on the individual worker. The first step in establishing competencies is to identify the basic competencies needed by the worker. For example, in the HR competency model developed by SHRM and the University of Michigan, the five basic competencies identified were HR delivery, HR technology, personal credibility, business knowledge and strategic contribution. Competencies usually correlate with performance on the job and are used for measurement against well-accepted industry standards. Competencies can also be used to improve individual employee training and development programs, as well as for

development of variable pay systems such as skill-based or competency-based pay plans. This toolkit offers a compilation of resources to help you understand competencies and establish them for your employees.

What Is the Meaning of HR Outsourcing?

HR outsourcing is the delegation of a human resources process or processes to an external HR provider that specializes in this service. This provider takes charge of managing and administering the outsourced services for its client. 1. Identification

Outsourcing is defined as a management pattern that consists of contracting out a particular in-house business process or processes to an external provider or providers. While these processes are purchased from said providers, the ultimate responsibility for the processes still rests with the purchasing company. Outsourcing is an option that's being explored by an increasing number of companies for reasons that include increased efficiency and cost savings. The precise services that are earmarked for outsourcing will depend on the company and/or the outsourcing options available in that particular market.

HR Functions

Human resources management refers to the organizational features designed to deal with all of the issues involving the employees who make up an organization. These key features include hiring, employee compensation, benefits, training and development, safety and wellness, employee performance management vis--vis company standards, evaluation, sanctioning and firing.


Putting these two definitions together, HR outsourcing can be understood to be the part of human resources management that's concerned with having an external HR provider manage a particular process or processes instead of handling it internally. The HR division or group may previously have administered said process or processes for the company but may have decided or have been instructed to outsource it. Conversely, the need for a particular process may have just been discovered or developed and the company may have decided to outsource it instead of administering it in-house.


Companies elect to outsource HR services for several benefits. One reason is the reduced operations costs. Another is increased company efficiencythe company and its resources can be freed up to focus on a smaller number of overall tasks. A third reason is access to HR expertise that may not be available within the company and which the company may not wish to acquire or develop. A fourth reason is for strategic reasons, such as a change in the company's goals and focus.


A company looking to outsource various HR functions must first select an external provider that meets its particular qualification criteria. One deciding factor is the range of HR services the provider can handle, as well as the HR resources it has at its disposal. Another is the provider's reputation in the industry. A third is whether the provider's strategy dovetails with that of the companyfor instance, whether a provider can also work with the company if and when the company undergoes a future strategic realignment.

Recruitment & Selection Audits: Start with this nine-step checklist

As a professional accountant and an executive search professional, I find it strange that organizations undergo their annual financial audit without a thought, yet rarely do they engage in an audit of their human resource practices and, in particular, their recruitment and selection processes. This may be due to the fact that organizations typically do not engage in executive search, recruitment and selection on a daily basis. The process is quickly developed when there is a need to fill a position. Thus, the processes put in place are often rudimentary and, in some cases, may not even meet legislative requirements. While the financial audit process is required by law, an audit of your recruitment process also has substantial value. Just as the financial audit assesses the checks and balances within your financial system, an audit of your recruitment practices can provide you with an evaluation of your processes. Use the following basic questions to undertake a self-evaluation of your recruitment processes: 1. Are your job descriptions up to date? Many organizations do not have any job descriptions, let alone current ones. Hiring to old and outdated job descriptions can lead to misunderstandings and wrongful hires. 2. Is your salary framework equitable and at market rate? If youve ever wondered why you cant attract staff, it might well be that your compensation framework is out of date. When was the last time you checked how your salaries compare to the marketplace? 3. Are you describing your jobs and work environment accurately? Have you defined the unique benefits and challenges of your work environment? Why would

someone want to come and work with you? Are there any details that you can add to paint a clearer picture? 4. Are your candidate search strategies working? Have you identified where your candidates typically come from? Are you advertising in the right places? Are you using a mixture of various search strategies? What is your success rate for each strategy? 5. What screening techniques do you use? What is your system for screening candidates? Do you have a checklist, criteria weighting and other measurements? Who is involved in the process and what are their roles? Is your system successful in screening for top candidates? 6. How would you rate your interview skills? Are you still using those out of date interview questions that seek general rather than specific responses? Are your questions digging deep into the candidates experience and then comparing this to what you need in your organization? 7. What steps are involved in your interview process? Are you selecting and hiring a candidate after only one interview? If so, youre taking a chance. You need to know your candidates better than this. You need to have more people involved and create a step-by-step process that enables you to examine the candidates in more depth. 8. What candidate assessments do you employ? Personality, communication style, emotional intelligence and character assessment tools are widely used to select the best fit for candidates. What tools are you using and are they effective? Do your tools require you to rely on outside assistance or can you develop them in-house? 9. Does your employment agreement protect you? Preparing an employment agreement requires significant thought and careful attention. Is yours up to date? Is the agreement very clear with respect to critical issues such as vacation, intellectual property, work hours, and reporting structures? You will be amazed at what important items are often left out. If you have identified any issue in this brief self-assessment, then you need to seriously think about conducting a professional recruitment and selection audit. The audit professional will examine all of the activities related to your recruitment processes and identify areas of risk, especially with potential legal liabilities and legislative compliance. Neglecting the importance of utilizing legislatively compliant recruitment processes in your organization can cost your organization thousands of dollars. Not only that, your public image and ability to attract new candidates could be severely damaged.

What is the Cost of HR?

As organizations pay close attention to expenses in these uncertain economic times, they're seeking to quantify the total cost of human capital to meet financial targets instead of missing them. Hewitt Associates, a global outsourcing and consulting firm, has developed a proprietary HR activity-based analysis to collect and analyze all costs of delivering human resources to employees.

Hewitt's HR activity-based cost assessment includes an analysis and inventory of HR operating costs (such as labor, materials, and vendors), and capital costs (such as real estate and investments in HR technology or allocations for the HR component of ERP systems). In addition, it provides a distribution of costs across HR activities and within an activity, and identifies the type of work being performed for each activity. "Companies rarely have a comprehensive or accurate view of their HR costs and few, if any, can quantify their total investment in people management practices," said Kirt Davis, Hewitt HR Effectiveness consultant. "Decision makers understand that their ability to make a wise, informed choice depends on the quality of the facts used to make the decision. To reduce costs, employers need to know their current costs. To show a greater return on investment, they need to have a complete picture of their current HR investment." This piece is brought to you by the Information Management editorial staff.

First step towards gaining an employees' commitment, it is aimed at introducing the job and organization to the recruit and him or her to the organization. It involves orientation and training of the employee in the organizational culture, and showing how he or she is interconnected to (and interdependent on) everyone else in the organization. See also orientation.