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HRM Activities undertaken to attract, develop and maintain an effective workforce

within an organization (or ) Edwin Flippo defies HRM as planning, organizing, directing,
controlling of procurement, development, compensation, integration , maintenance and
separation of human resources to the end that individual, organizational and social objectives are
achieved.
Features of HRM or characteristics or nature
1. HRM involves management functions like planning, organizing, directing and controlling.
2. It involves procurement, development, maintenance of human resource
3. It helps to achieve individual, organizational and social objectives
4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication,
economics and sociology.
5. It involves team spirit and team work

1.HRM involves management functions like planning, organizing, directing and controlling.
2. It involves procurement, development, maintenance of human resource
3. It helps to achieve individual, organizational and social objectives
4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication,
economics and sociology.
5. It involves team spirit and team work
Scope of HRM/functions of HRM
The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as
follows
1. Human resources planning :- Human resource planning or HRP refers to a process by which the
company to identify the number of jobs vacant, whether the company has excess staff or shortage of
staff and to deal with this excess or shortage.

2. Job analysis design :- Another important area of HRM is job analysis. Job analysis gives a detailed
explanation about each and every job in the company. Based on this job analysis the company prepares
advertisements.

3. Recruitment and selection :- Based on information collected from job analysis the company prepares
advertisements and publishes them in the news papers. This is recruitment. A number of applications
are received after the advertisement is published, interviews are conducted and the right employee is
selected thus recruitment and selection are yet another important area of HRM.

4. Orientation and induction: - Once the employees have been selected an induction or orientation
program is conducted. This is another important area of HRM. The employees are informed about the
background of the company, explain about the organizational culture and values and work ethics and
introduce to the other employees.

5. Training and development: - Every employee goes under training program which helps him to put up
a better performance on the job. Training program is also conducted for existing staff that have a lot of
experience. This is called refresher training. Training and development is one area were the company
spends a huge amount.
6. Performance appraisal: - Once the employee has put in around 1 year of service, performance
appraisal is conducted that is the HR department checks the performance of the employee. Based on
these appraisal future promotions, incentives, increments in salary are decided.

7. Compensation planning and remuneration: - There are various rules regarding compensation and
other benefits. It is the job of the HR department to look into remuneration and compensation planning.

8. Motivation, welfare, health and safety: - Motivation becomes important to sustain the number of
employees in the company. It is the job of the HR department to look into the different methods of
motivation. Apart from this certain health and safety regulations have to be followed for the benefits of
the employees. This is also handled by the HR department.

9. Industrial relations: - Another important area of HRM is maintaining co-ordinal relations with the
union members. This will help the organization to prevent strikes lockouts and ensure smooth working
in the company.
Significance/importance/need of HRM Significance/importance/need of HRM
HRM becomes significant for business organization due to the following reasons.

1. Objective :- HRM helps a company to achieve its objective from time to time by creating a positive
attitude among workers. Reducing wastage and making maximum use of resources etc.

2. Facilitates professional growth :- Due to proper HR policies employees are trained well and this
makes them ready for future promotions. Their talent can be utilized not only in the company in which
they are currently working but also in other companies which the employees may join in the future.
3. Better relations between union and management :- Healthy HRM practices can help the organization
to maintain co-ordinal relationship with the unions. Union members start realizing that the company is
also interested in the workers and will not go against them therefore chances of going on strike are
greatly reduced.
4. Helps an individual to work in a team/group :- Effective HR practices teach individuals team work
and adjustment. The individuals are now very comfortable while working in team thus team work
improves.

5. Identifies person for the future :- Since employees are constantly trained, they are ready to meet the
job requirements. The company is also able to identify potential employees who can be promoted in the
future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future.
6. Allocating the jobs to the right person :- If proper recruitment and selection methods are followed,
the company will be able to select the right people for the right job. When this happens the number of
people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour
turnover.

7. Improves the economy :- Effective HR practices lead to higher profits and better performance by
companies due to this the company achieves a chance to enter into new business and start new
ventured thus industrial development increases and the economy improves.

Job analysis, Job design, Job evolution

A job is defined as a collection of duties and responsibilities which are given together to
an individual employee. Job analysis is the process of studying and collecting information
relating to operations and responsibilities of a specific job. It can be explained with the help of
the following diagram

As mentioned in the above table job analysis is divided into 2 parts
a) Job description: where the details regarding the job are given.
b) Job specification: where we explain the qualities required by people applying for the job.
Need/importance/purpose/benefits of job analysis
Definition:A job is defined as a collection of duties and responsibilities which are given together to an
individual employee. Job analysis is the process of studying and collecting information relating to
operations and responsibilities of a specific job.

The following are the benefits of job analysis.

1. Organizational structure and design :- Job analysis helps the organization to make suitable changes in
the organizational structure, so that it matches the needs and requirements of the organization. Duties
are either added or deleted from the job.

2. Recruitment and selection :- Job analysis helps to plan for the future human resource. It helps to
recruit and select the right kind of people. It provides information necessary to select the right person.

3. Performance appraisal and training/development :- Based on the job requirements identified in the
job analysis, the company decides a training program. Training is given in those areas which will help to
improve the performance on the job. Similarly when appraisal is conducted we check whether the
employee is able to work in a manner in which we require him to do the job.

4. Job evaluation :- Job evaluation refers to studying in detail the job performance by all individual. The
difficulty levels, skills required and on that basis the salary is fixed. Information regarding qualities
required, skilled levels, difficulty levels are obtained from job analysis.

5. Promotions and transfer :- When we give a promotion to an employee we need to promote him on
the basis of the skill and talent required for the future job. Similarly when we transfer an employee to
another branch the job must be very similar to what he has done before. To take these decisions we
collect information from job analysis.


6. Career path planning :- Many companies have not taken up career planning for their employees. This
is done to prevent the employee from leaving the company. When we plan the future career of the
employee, information will be collected from job analysis. Hence job analysis becomes important or
advantageous.

7. Labour relations :- When companies plan to add extra duties or delete certain duties from a job, they
require the help of job analysis, when this activity is systematically done using job analysis the number
of problems with union members reduce and labour relations improve.
8. Health and safety :- Most companies prepare their own health and safety, plans and programs based
on job analysis. From the job analysis company identifies the risk factor on the job and based on the risk
factor safety equipments are provided.

9. Acceptance of job offer :- When a person is given an offer/appointment letter the duties to be
performed by him are clearly mentioned in it, this information is collected from job analysis, which is
why job analysis becomes important.
Methods of job analysis
Definition: A job is defined as a collection of duties and responsibilities which are given together to an
individual employee. Job analysis is the process of studying and collecting information relating to
operations and responsibilities of a specific job.

1. Personal observation :- In this method the observer actually observes the concerned worker. He
makes a list of all the duties performed by the worker and the qualities required to perform those duties
based on the information collected, job analysis is prepared.

2. Actual performance of the job :- In this method the observer who is in charge of preparing the job
analysis actually does the work himself. This gives him an idea of the skill required, the difficulty level of
the job, the efforts required etc.

3. Interview method :- In this method an interview of the employee is conducted. A group of experts
conduct the interview. They ask questions about the job, skilled levels, and difficulty levels. They
question and cross question and collect information and based on this information job analysis is
prepared.
4. Critical incident method :- In this method the employee is asked to write one or more critical incident
that has taken place on the job. The incident will give an idea about the problem, how it was handled,
qualities required and difficulty levels etc. critical incident method gives an idea about the job and its
importance. (a critical means important and incident means anything which takes place in the job)

5. Questioner method :- In this method a questioner is provided to the employee and they are asked to
answer the questions in it. The questions may be multiple choice questions or open ended questions.
The questions decide how exactly the job analysis will be done. The method is effective because people
would think twice before putting anything in writing.

6. Log records :- Companies can ask employees to maintain log records and job analysis can be done on
the basis of information collected from the log record. A log record is a book in which employees record
/write all the activities performed by them on the job. The records are extensive as well as exhausted in
nature and provide a fair idea about the duties and responsibilities in any job.

7. HRD records :- Records of every employee are maintained by HR department. The record contain
details about educational qualification, name of the job, number of years of experience, duties handled,
any mistakes committed in the past and actions taken, number of promotions received, area of work,
core competency area, etc. based on these records job analysis can be done.
Job design :Job design is the process of
a) Deciding the contents of the job.
b) Deciding methods to carry out the job.
c) Deciding the relationship which exists in the organization.
Job analysis helps to develop job design and job design matches the requirements of the job with the
human qualities required to do the job.

Factors affecting job design: -
There are various factors which affect job design in the company. They can be explained with
the help of diagram. Factors affecting job design is

1. Organizational factors :- Organizational factors to refer to factors inside the organization which affect
job design they are
a) Task characteristics :- Task characteristics refer to features of the job that is depending on the type of
job and the duties involved in it the organization will decide, how the job design must be done. Incase
the company is not in a position to appoint many people; a single job may have many duties and vice
versa.
b) The process or flow of work in the organization :- There is a certain order in which jobs are
performed in the company. Incase the company wishes it could combine similar job and give it to one
person this can be done if all the jobs come one after the other in a sequence.

C) Ergonomics:- Ergonomics refers to matching the job with physical ability and characteristics of the
individual and in providing an office environment which will help the person to complete the jobs faster
and in a comfortable manner.

d) Work practices :- Every organization has different work practices. Although the job may be the same
the method of doing the job differs from company to company. This is called work practice and it affects
job design.

2. Environmental factors :-
Environmental factors which affect job design are as follows,

a) Employee availability and ability :-Certain countries face the problem of lack of skilled labour. They
are not able to get employees with specific education levels for jobs and have to depend on other
countries due to this job design gets affected.

b) Social and cultural expectations :-The social and cultural conditions of every country is different so
when an MNC appoints an Indian it has to take into account like festivals, auspicious time, inauspicious
time, etc. to suit the Indian conditions. This applies to every country and therefore job design will
change accordingly.

3. Behavioral factors :-design is affected by behavioral factors also. These factors are

a) Feedback :- Job design is normally prepared on the basis of job analysis and job analysis requires
employee feedback based on this employee feedback all other activities take place. Many employees
are however not interested in providing a true feedback because of fear and insecurity. This in turn
affects job deign.
b) Autonomy :- Every worker desires a certain level of freedom to his job effectively. This is called
autonomy. Thus when we prepare a job design we must see to it that certain amount of autonomy is
provided to the worker so that he carries his job effectively.
c) Variety :- When the same job is repeated again and again it leads to burden and monotony. This leads
to lack of interest and carelessness on the job. Therefore, while preparing job design certain amount of
variety must be provided to keep the person interested in the job.

Methods of job design

There are various methods in which job design can be carried out. These methods help
to analysis the job, to design the contents of the and to decide how the job must be carried out
these methods are as follows:-
1. Job rotation 2. Job enlargement 3. Job enrichment

1. Job rotation
J ob rotation involves shifting a person from one job to another, so that he is able to understand
and learn what each job involves. The company tracks his performance on every job and decides
whether he can perform the job in an ideal manner. Based on this he is finally given a particular posting.
Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned to the marketing
department whole he learns all the jobs to be performed for marketing at his level in the organization
after this he is shifted to the sales department and to the finance department and so on. He is finally
placed in the department in which he shows the best performance. Job rotation gives an idea about the
jobs to be performed at every level. Once a person is able to understand this he is in a better
understanding of the working of organization.

Advantages of job rotation
1. Avoids monopoly:-Job rotation helps to avoid monopoly of job and enable the employee to learn
new things and therefore enjoy his job
2. Provides an opportunity to broaden ones knowledge :-Due to job rotation the person is able to learn
different job in the organization this broadens his knowledge
3. Avoiding fraudulent practice :- In an organization like bank jobs rotation is undertaken to prevent
employees from doing any kind of fraud i.e. if a person is handling a particular job for a very long time
he will be able to find loopholes in th system and use them for his benefit and indulge ( participate ) in
fraudulent practices job rotation avoids this.
Disadvantages of Job Rotation
1. Frequent interruption :- Job rotation results in frequent interruption of work .A person who is doing a
particular job and get it comfortable suddenly finds himself shifted to another job or department .this
interrupts the work in both the departments

2. Reduces uniformity in quality :- Quality of work done by a trained worker is different from that of a
new worker .when a new worker I shifted or rotated in the department, he takes time to learn the new
job, makes mistakes in the process and affects the quality of the job.

3. Misunderstanding with the union member :- Sometimes job rotation may lead to misunderstanding
with members of the union. The union might think that employees are being harassed and more work is
being taken from them. In reality this is not the case.
2. Job enlargement: Job enlargement is another method of job design when any organization wishes to
adopt proper job design it can opt for job enlargement. Job enlargement involves combining various
activities at the same level in the organization and adding them to the existing job. It increases the scope
of the job. It is also called the horizontal expansion of job activities. Jon enlargement can be explained
with the help of the following example - If Mr. A is working as an executive with a company and is
currently performing 3 activities on his job after job enlargement or through job enlargement we add 4
more activities to the existing job so now Mr. A performs 7 activities on the job. It must be noted that
the new activities which have been added should belong to the same hierarchy level in the organization.
By job enlargement we provide a greater variety of activities to the individual so that we are in a
position to increase the interest of the job and make maximum use of employees skill. Job enlargement
is also essential when policies like VRS are implemented in the company.

Advantages of job enlargement
1.Variety of skills :- Job enlargement helps the organization to improve and increase the skills of the
employee due to organization as well as the individual benefit.
2. Improves earning capacity: - Due to job enlargement the person learns many new activities. When
such people apply for jobs to other companies they can bargain for more salary.
3. Wide range of activities: - Job enlargement provides wide range of activities for employees. Since a
single employee handles multiple activities the company can try and reduce the number of employees.
This reduces the salary bill for the company.

Disadvantages of job enlargement
1.Increases work burden :- Job enlargement increases the work of the employee and not every
company provides incentives and extra salary for extra work. Therefore the efforts of the individual may
remain unrecognized.
2. Increasing frustration of the employee :-In many cases employees end up being frustrated because
increased activities do not result in increased salaries.

3. Problem with union members :-Many union members may misunderstand job enlargement as
exploitation of worker and may take objection to it

3. Job enrichment :-Job enrichment is a term given by Fedric herzberg. According to him a few
motivators are added to a job to make it more rewarding, challenging and interesting. According to
herzberg the motivating factors enrich the job and improve performance.In other words we can say that
job enrichment is a method of adding some motivating factors to an existing job to make it more
interesting. The motivating factors can be

Giving more freedom.
Encouraging participation.
Giving employees the freedom to select the method of working.
Allowing employees to select the place at which they would like to work.
Allowing workers to select the tools that they require on the job.
Allowing workers to decide the layout of plant or office.

Job enrichment gives lot of freedom to the employee but at the same time increases the responsibility.
Some workers are power and responsibility hungry. Job enrichment satisfies the needs of the
employees.

Advantages of job enrichment

1. Interesting and challenging job :-When a certain amount of power is given to employees it makes the
job more challenging for them, we can say that job enrichment is a method of employee empowerment.
2. Improves decision making :-Through job enrichment we can improve the decision making ability of
the employee by asking him to decide on factory layout, method and style of working.
3. Identifies future managerial caliber :- When we provide decision making opportunities to
employees, we can identify which employee is better that other in decision making and mark employees
for future promotion.

Disadvantages of job enlargement
1.Increases work burden :- Job enlargement increases the work of the employee and not every
company provides incentives and extra salary for extra work. Therefore the efforts of the
individual may remain unrecognized.
2. Increasing frustration of the employee :-In many cases employees end up being frustrated
because increased activities do not result in increased salaries.
3. Problem with union members :-Many union members may misunderstand job enlargement
as exploitation of worker and may take objection to it.
Human resource planning/manpower planning
Definition of human resource planning: Human resource planning can be defined as the process of
identifying the number of people required by an organization in terms of quantity and quality. All human
resource management activities start with human resource planning. So we can say that human
resource planning is the principle/primary activity of human resource management. From human
resource planning the organization identifies how many people it has currently and how many people
will be required in future. Based on this information major human resource decisions are taken.

Process of HRP/MP//steps in HRP/MP :Human resource planning can be defined as the process of
identifying the number of people required by an organization in terms of quantity and quality. All human
resource management activities start with human resource planning. So we can say that human
resource planning is the principle/primary activity of human resource management.

1. Personnel requirement forecast :-This is the very first step in HRP process. Here the HRP department
finds out department wise requirements of people for the company. The requirement consists of
number of people required as well as qualification they must posses.

2. Personnel supply forecast :-In this step, HR department finds out how many people are actually
available in the departments of the company.

3. Comparison:-Based on the information collected in the 1st and 2nd step, the HR department makes a
comparison and finds out the difference. Two possibilities arise from this comparison

a) No difference :- It is possible that personnel requirement = personnel supplied. In this case there is no
difference. Hence no change is required.
b) Yes, there is a difference :-There may be difference between supply and requirement. The difference
may be I. Personnel surplus II. Personnel shortage

4. Personnel surplus:-When the supply of personnel is more than the requirement, we have personnel
surplus. We require 100 people, but have 125 people. That is we have a surplus of 25 people.

5. Personnel shortage :-When supply is less than the requirement, we have personnel shortage. We
require 100 people; we have only 75 i.e. we are short of 25 people. In such case the HR department can
adopt methods like Overtime, Recruitment, Sub-contracting to obtain new employees.

Advantages of HRP/need/importance/role/benefits:Human resource planning can be defined as the
process of identifying the number of people required by an organization in terms of quantity and
quality. All human resource management activities start with human resource planning. So we can say
that human resource planning is the principle/primary activity of human resource management. The
process of HRP plays a very important role in the organization. The importance of HRP can be explained
as follows.
1.Anticipating future requirement :-Thru this process of HRP, the company is able to find out how
many people will be required in future. Based on this requirement the company could take further
actions. This method also helps the company to identify the number of jobs which will become vacant in
the near future.

2. Recruitment and selection process :- The recruitment and selection process is a very costly affair for a
company. Many companies spend lakhs of rupees on this process. Therefore recruitment and selection
must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment
and selection are necessary or not.
3. Placement of personnel :-Since the HRP process is conducted for the entire organization, we can
identify the requirements for each and every department. Based on the requirement, we can identify
existing employees and place them on those jobs which are vacant.
4. Performance appraisal :-HRP make performance appraisal more meaningful. Since feedback is
provided in performance appraisal and employee is informed about his future chances in same
company, the employee is motivated to work better. Information for all this is collected from HRP
process.

5. Promotion opportunity :- HRP identifies vacancies in the entire organization including all the
branches of all the company. Therefore when the company implements promotion policy it can
undertake its activities in a very smooth manner.
Limitations of human resource planning :Human resource planning can be defined as the process of
identifying the number of people required by an organization in terms of quantity and quality. All human
resource management activities start with human resource planning. So we can say that human
resource planning is the principle/primary activity of human resource management. Although HRP is a
very advantageous method it has some limitations which can be explained as follows

1. The future is uncertain :-The future in any country is uncertain i.e. there are political, cultural,
technological changes taking place every day. This effects the employment situation. Accordingly the
company may have to appoint or remove people. Therefore HRP can only be a guiding factor. We
cannot rely too much on it and do every action according to it.

2. Conservative attitude of top management:-Much top management adopts a conservative attitude
and is not ready to make changes. The process of HRP.

3. Problem of surplus staff:-HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,.
However when certain employees are removed from company it mostly affects the psyche of the
existing employee, and they start feeling insecure, stressed out and do not believe in the company. This
is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need
not be removed from the company.

4. Time consuming activity :-HRP collects information from all departments, regarding demand and
supply of personnel. This information is collected in detail and each and every job is considered.
Therefore the activity takes up a lot of time.

5. Expensive process :-The solution provided by process of HRP incurs expense. E.g. VRS, overtime, etc.
company has to spend a lot of money in carrying out the activity. Hence we can say the process is
expensive.

Reasons for increased importance for HRP/Factors affecting HRP in the organization: Human
resource planning can be defined as the process of identifying the number of people required by an
organization in terms of quantity and quality. All human resource management activities start with
human resource planning. So we can say that human resource planning is the principle/primary activity
of human resource management.
1. Employment :-HRP is affected by the employment situation in the country i.e. in countries where
there is greater unemployment; there may be more pressure on the company, from government to
appoint more people. Similarly some company may force shortage of skilled labour and they may
have to appoint people from other countries.
2. Technical changes in the society :-Technology changes at a very fast speed and new people having
the required knowledge are required for the company. In some cases, company may retain existing
employees and teach them the new technology and in some cases, the company have to remove
existing people and appoint new.

3. Organizational changes :-Changes take place within the organization from time to time i.e. the
company diversify into new products or close down business in some areas etc. in such cases the HRP
process i.e. appointing or removing people will change according to situation.

4. Demographic changes :-Demographic changes refer to things referring to age, population,
composition of work force etc. A number of people retire every year. A new batch of graduates with
specialization turns out every year. This can change the appointment or the removal in the company.

5. Shortage of skill due to labour turnover :-Industries having high labour turnover rate, the HRP will
change constantly i.e. many new appointments will take place. This also affects the way HRP is
implemented.

6. Multicultural workforce :-Workers from different countries travel to other countries in search of job.
When a company plans its HRP it needs to take into account this factor also.

7. Pressure groups :- Company has to keep in mind certain pleasure. Groups like human rights activist,
woman activist, media etc. as they are very capable for creating problems for the company, when issues
concerning these groups arise, appointment or retrenchment becomes difficult.

Definition of VRS : VRS refers to voluntary retirement scheme, when company faces the problem of
surplus labour, they have to remove the extra workers. This needs to be done to avoid increase in cost.
One of the methods used by the companies is the VRS scheme. Under this scheme people have put in 20
or more number of years of service are given an option to opt for early retirement benefits and some
other amount which is due to them are paid when they leave the company.






Define recruitment
Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs.

Objectives of recruitment

1. It reviews the list of objectives of the company and tries to achieve them by promoting the company
in the minds of public.
2. It forecasts how many people will be required in the company.
3. It enables the company to advertise itself and attract talented people.
4. It provides different opportunities to procure human resource.

Methods of recruitment/sources

Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs
Companies can adopt different methods of recruitment for selecting people in the company. These
methods are

1. Internal sources
2. External sources
The sources can be further explained with the help of following diagram


Internal sources of recruitment :- Internal sources of recruitment refer to obtaining people for job from
inside the company. There are different methods of internal recruitment
1.Promotion :- Companies can give promotion to existing employees. This method of recruitment saves
a lot of time, money and efforts because the company does not have to train the existing employee.
Since the employee has already worked with the company. He is familiar with the working culture and
working style. It is a method of encouraging efficient workers.

2. Departmental examination:-This method is used by government departments to select employees for
higher level posts. The advertisement is put up on the notice board of the department. People who are
interested must send their application to the HR department and appear for the exam. Successful
candidates are given the higher level job. The method ensures proper selection and impartiality.

3. Transfer :-Many companies adopt transfer as a method of recruitment. The idea is to select talented
personnel from other branches of the company and transfer them to branches where there is shortage
of people.


4. Retirement :- Many companies call back personnel who have already retired from the organization.
This is a temporary measure. The method is beneficial because it gives a sense of pride to the retired
when he is called back and helps the organization to reduce recruitment selection and training cost.
5. Internal advertisement :-In this method vacancies in a particular branch are advertised in the notice
board. People who are interested are asked to apply for the job. The method helps in obtaining people
who are ready to shift to another branch of the same company and it is also beneficial to people who
want to shift to another branch.
6. Employee recommendation :- In this method employees are asked to recommend people for jobs.
Since the employee is aware of the working conditions inside the company he will suggest people who
can adjust to the situation. The company is benefited because it will obtain.

Advantages of internal recruitment
1. Internal methods are time saving.
2. No separate induction program is required.
3. The method increases loyalty and reduces labour turnover.
4. This method is less expensive.
Disadvantages of internal recruitment

1. There is no opportunity to get new talent in this method.
2. The method involves selecting people from those available in the company so there is limited scope
for selection.
3. There are chances of biased and partiality.
4. Chances of employee discontent are very high.

External methods/sources of recruitment : External sources of recruitment refer to methods of
recruitment to obtain people from outside the company. These methods are

1. Management consultant:- Management consultant helps the company by providing them with
managerial personnel, when the company is on the lookout for entry level management trainees and
middle level managers. They generally approach management consultants.
2. Employment agencies:-Companies may give a contract to employment agencies that search,
interview and obtain the required number of people. The method can be used to obtain lower level and
middle level staff.
,
3. Campus recruitment:- When companies are in search of fresh graduates or new talent they opt for
campus recruitment. Companies approach colleges, management, technical institutes, make a
presentation about the company and the job and invite applications. Interested candidates who have
applied are made to go through a series of selection test and interview before final selection.

4. News paper advertisement:- This is one of the oldest and most popular methods of recruitment.
Advertisements for the job are given in leading news papers; the details of the job and salary are also
mentioned. Candidates are given a contact address where their applications must be sent and are asked
to send their applications within a specified time limit. The method has maximum reach and most
preferred among all other methods of recruitment.

5. Internet advertisement:-With increasing importance to internet, companies and candidates have
started using the internet as medium of advertisement and search for jobs. There are various job sites
like naukri.com and monster.com etc. candidates can also post their profiles on these sites. This method
is growing in popularity.



6. Walk in interview:- Another method of recruitment which is gaining importance is the walk in
interview method. An advertisement about the location and time of walk in interview is given in the
news paper. Candidates require to directly appearing for the interview and have to bring a copy of their
C.V. with them. This method is very popular among B.P.O and call centers.

Advantages of external recruitment
1. There is influx of new talent in the method.
2. The method encourages more and more competition.
3. There is lesser chance of partiality through this method.
4. If options like campus recruitment have been exercised we get a chance to employ fresh graduates,
thus increasing employment.

Disadvantages of external recruitment
1. The method is costly because it involves recruitment cost, selection, training cost.
2. The method is time consuming.
3. The method reduces loyalty to the company.

Selection: Selection can be defined as process of choosing the right person for the right job.

Process of selection:- The process of selection is different in different companies; however a general
procedure of selection can be framed. This process of selection can be explained with the help of
following diagram

1. Job analysis :-The very first step in the selection procedure is the job analysis. The HR department
prepares the job description and specification for the jobs which are vacant. This gives details for the
jobs which are vacant. This gives details about the name of the job, qualification, qualities required and
work conditions etc.

2. Advertisement :- Based on the information collected in step 1, the HR department prepares an
advertisement and publishes it in a leading news papers. The advertisement conveys details about the
last date for application, the address to which the application must be sent etc.

3. Application blank/form :-Application blank is the application form to be filled by the candidate
when he applies for a job in the company. The application blank collects information consisting of 4
parts- 1) Personal details 2) Educational details 3) Work experience 4) Family background.

4. Written test :-The applications which have been received are screened by the HR department and
those applications which are incomplete are rejected. The other candidates are called for the written
test. Arrangement for the written test is looked after the HR department i.e. question papers, answer
papers, examination centers and hall tickets etc.
5. Interview :-Candidates who have successfully cleared the test are called for an interview. The entire
responsibility for conducting the interview lies with the HR department i.e. they look after the panel of
interviewers, refreshments, informing candidates etc.

6. Medical examination :-The candidates who have successfully cleared the interview are asked to take
a medical exam. This medical exam may be conducted by the organization itself (army). The
organization may have a tie up with the hospital or the candidate may be asked to get a certificate from
his family doctor.

7. Initial job offer :-Candidates who successfully clear the medical exam are given an initial job offer by
the company stating the details regarding salary, terms of employment, employment bond if any etc.
The candidate is given some time to think over the offer and to accept or reject.
,
8. Acceptance/ rejection :-Candidates who are happy with the offer send their acceptance within a
specified time limit to show that they are ready to work with the company.

9. Letter of appointment/final job offer :-Candidates who send their acceptance are given the letter of
appointment. The letter will state the name of the job. The salary and other benefits, number of
medical leaves and casual leaves, details of employment bond if any etc. It will also state the date on
which the employee is required to start duty in the company.

10. Induction :-On the date of joining the employee is introduced to the company and other employees
through am elaborate induction program.

Types of selection test :Different selection test are adopted by different organization depending upon
their requirements. These tests are specialized test which have been scientifically tested and hence they
are also known as scientific test. Different types of test can be explained with the help of following
diagram,
1. Aptitude test :-Aptitude tests are test which assess the potential and ability of a candidate. It enables
to find out whether the candidate is suitable for the job. The job may be managerial technical or clerical.
The different types of aptitude test are

a) Mental ability/mental intelligence test :-This test is used to measure the over all intelligence and
intellectual ability of the candidate to deal with problems. It judges the decision making abilities.

b) Mechanical aptitude test :-This test deals with the ability of the candidate to do mechanical work. It
is used to judge and measure the specialized knowledge and problem solving ability. It is used for
technical and maintenance staff.

c) Psycho motor test :-This test judges the motor skills the hand and eye co-ordination and evaluates
the ability to do jobs lie packing, quality testing, quality inspection etc.

2. Intelligence test :-This test measures the numerical skills and reasoning abilities of the candidates.
Such abilities become important in decision making. The test consists of logical reasoning ability, data
interpretation, comprehension skills and basic language skills.

3. Personality test :- In this test the emotional ability or the emotional quotient is tested. This test
judges the ability to work in a group, inter personal skills, ability to understand and handle conflicts and
judge motivation levels. This test is becoming very popular now days.

4. Performance test :- This test judges and evaluates the acquired knowledge and experience of the
knowledge and experience of the individual and his speed and accuracy in performing a job. It is used to
test performance of typist, data entry operators etc.