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Introduction to HRM

Evolution of HRM
Earlier references: In western countries HRM had its primitive beginning in 1930s. Not much
thought was given on this subject in particular and no written records or documents interesting to
note HRM concepts was available, in ancient philosophies of Greek, Indian and Chinese. This is
not to suggest that industrial establishment and factories system, as it is known today, existed in
ancient Greece, India or china. The philosophy of managing human being, as a concept was
found developed in ancient literatures in general and in Indian philosophy in particular.
Personnel functions: Till 1930s, it was not felt necessary to have a separate discipline of
management called Personnel management. In fact, this job was assigned as part of the factory
manager. Adam Smiths concept of factory was that it consists of three resources, land, labour
and capital. This factory manager is expected to procure,
Process and peddle labour as one of the resources. The first time when such a specialist
person was used; it was to maintain a buffer between employer and employee to meet the
legitimate need of employees. However, it is the employer who decided what is legitimate
need of employees. In fact, the specialist person was more needed to prevent unionization
of employees. This was the case before 1930-s all over the world.
Environmental Influences on HRM: Since 1930s, certain developments took place, which
greatly contributed, to the evolution and growth of Human Resources Management (HRM).
These developments are given below:
Scientific Management
Labour Movements
Government Regulations.
Need for the Study :
Shortage of skills.
Skills and knowledge people are always on short supply. Alternatively they are too costly to hire
from outside. The best alternative is to improve skill and knowledge of existing employees.
Technological Obsolescence.
Growth of technology takes places very fast. This will render current technology obsolete in the
future. There is a great need to upgrade technology. This needs suitable training.
Personal Obsolescence.
At the time recruitment employees possess a certain of knowledge and skill. As time passes
knowledge becomes obsolete, unless it is updated by proper training. This happens because of
changes taking place in product technology, production methods, procurement of better
machines, setting up of modern production lines, introduction of modern method of supervision
and information processing through MIS and EDO..

Organization Obsolescence.
Modern management has introduced a number of innovative steps in functions of management
like planning, organizing, controlling, coordinating and directing. Organization which is
impervious to such changes is bound to fail and become obsolete
Upgrading Ability of Threshold workers.
Public policy provides reservation to disadvantaged sections of the society like handicapped,
minorities and dependents of deceased workers etc. All these are threshold workers having less
than minimum prescribed level of knowledge and skill. They require extensive training to bring
them up to the minimum level of performance standard
Coercive training by government.
In order to provide better employability chances of unemployed youth, certain governments
taken initiative to mobilize resources available at pubic/government and private sectors to
outside candidates. One such example is the Apprentice Training conducted by govt. of India.
A part of expenditure incurred for this by private sectors are reimbursed by government.
Human capital
The latest thinking is to treat employees as human capital. The expenditure involved is training
and developments are now being considered as an investment.
Scope of Human Resource Management
The Scope of HRM is in deed fast. All major activities in the working life of worker from
time of his entry in an organization until he / she leaves, come under the preview of HRM.
Specifically, the activities included are Human Resource planning, Job analysis and design,
Recruitment, Selection, Orientation and placement, Training and development, Performance
appraisal and Job evaluation, employee and executive remuneration and communication,
employee welfare, safety and health, industrial relations and the like.
HRM is becoming a specialized branch giving rise to a number of specialized areas like :
Welfare and Safety
Wages and Salary Administration
Training and Development
Labour Relations

Objectives of the HRM are to secure the following: 1. Industrial peace: This is secured by excellent union management relations, healthy interpersonal relationships, and promoting participative management style and good industrial and
labour relations.
2. Achieve High Productivity: The underlying objective brings to increase the quantity or
volume of the product or service for a given input, productivity improvement programme is
very significant in a competitive environment.
3. Better quality of working life of employees: This involves both intrinsic and extrinsic factors
connected with work.
4. Obtain and sustain competitive advantage through empowerment : continuous improvement
and innovative steps being the two essential ingredients to achieve and sustain competitive
advantage, todays industries
are knowledge based and skill intensive.
5. Cordial relationship between the employer and employees.
6. Personnel research functions.

Human resource is an important corporate asset and the overall performance of company
depends on the way it is put to use. In order to realize company objectives, it is essential to
recruit people with requisite skills, qualification and experience. While doing so we need to keep
present and future requirements of company in mind.
Successful recruitment methods include a thorough analysis of the job and the labour market
conditions. Recruitment is almost central to any management process and failure in recruitment
can create difficulties for any company including an adverse effect on its profitability and
inappropriate levels of staffing or skills. Inadequate recruitment can lead to labour shortages, or
problems in management decision making.
Recruitment is however not just a simple selection process but also requires management
decision making and extensive planning to employ the most suitable manpower. Competition
among business organisations for recruiting the best potential has increased focus on innovation,
and management decision making and the selectors aim to recruit only the best candidates who
would suit the corporate culture, ethics and climate specific to the organisation.
The process of recruitment does not however end with application and selection of the right
people but involves maintaining and retaining the employees chosen. Despite a well drawn plan
on recruitment and selection and involvement of qualified management team, recruitment
processes followed by companies can face significant obstacles in implementation. Theories of
HRM may provide insights on the best approaches to recruitment although companies will have
to use their in house management skills to apply generic theories within specific organizational

Recruitment is defined as, a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient workforce. Edwin
B. Flippo defined recruitment as the process of searching for prospective employees and
stimulating them to apply for jobs in the organization. In simple words recruitment can be
defined as a linking function-joining together those with jobs to fill and those seeking jobs.


The general purpose of recruitment is to provide a pool of potentially qualified job candidates.
Specifically, the purposes and needs are:
Determine the present and future requirements of the organization in conjunction with its
personnel-planning and job-analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing the number of visibly,
under qualified or overqualified job applicants.
Help reduce the probability that job applicants, once recruited and selected, will leave the
organization only after a short period of time.
Begin identifying and preparing potential job applicants who will be appropriate
Induct outsiders with a new perspective to lead the company.
Infuse fresh blood at all levels of the organization.
Develop an organizational culture that attracts competent people to the company.
Search for talent globally and not just within the company.


The following are the 2 important factors affecting Recruitment: 1)

Recruiting policy
Temporary and part-time employees
Recruitment of local citizens
Engagement of the company in HRP
Companys size


Cost of recruitment
Companys growth and expansion

Supply and Demand factors
Unemployment Rate
Labour-market conditions
Political and legal considerations
Social factors
Economic factors
Technological factors


1. Objective theory
1) Assumes applicants use a very rational method for making decisions
2) Thus, the more information you can give them (e.g. salaries, benefits, working condition,
etc), the better applicants weight these factors to arrive at a relative desirability index
2. Subjective theory
1) Assumes applicants are not rational, but respond to social or psychological needs (e.g.
security, achievement, affiliation)
2) Thus, play to these needs by highlighting job security or opportunities for promotion or
collegiality of work group, etc.
3. Critical Contact theory
1) Assumes key attractor is quality of contact with the recruiter or recruiter behavior, e.g.
(promptness, warmth, follow-up calls, sincerity, etc.)
2) Research indicates that more recruiter contact enhances acceptance of offer, also experienced
recruiter (e.g. middle-aged) more successful than young or inexperienced recruiter - may be
especially important when recruiting ethnic minorities, women, etc.

Policies: Recruitment policy of any organization is derived from the personnel policy of the
same organization. However, recruitment policy by itself should take into consideration the
governments reservation policy, policy regarding sons of soil, etc., personnel policies of other
organizations regarding merit, internal sources, social responsibility in absorbing minority
sections, women, etc.

Specific issues which may be addressed in Recruitment Policy:

1) Statement : Nondiscrimination (EEO employer) or particular protected class members that
may be sought for different positions (see also Affirmative Action guidelines)
2) Position description: Adherence to job description (& qualifications) in recruitment &
selection -BFOQs -bonafide occupational qualifications
3) How to handle special personnel in recruitment/selection: e.g. relatives (nepotism)
veterans (any special advancement toward retirement for military experience?), rehires
(special consideration? vacation days or other prior benefits?), part-time or temporary
personnel (special consideration? benefits?)
4) Recruitment budget/expenses: what is covered? Travel, Lodging/meals, Staff travel to
recruit, relocation, expenses, etc.
5) Others:
a. Residency requirement in district?
b. Favors, special considerations related to recruitment? - e.g. get spouse a job?

Organisational inducements are all the positive features and benefits offered by an
organization that serves to attract job applicants to the organisation. Three inducements need
specific mention here, they are: Compensation: Starting salaries, frequency of pay increases, incentives and fringe
benefits can all serve as inducements to potential employees
Career Opportunities: These help the present employees to grow personally and
professionally and also attract good people to the organization. The feeling that the
company takes care of employee career aspirations serves as a powerful inducements to
potential employees.
Image or Reputation: Factors that affect an organisations reputation include its general
treatment of employees, the nature and quality of its products and services and its
participation in worthwhile social endeavors.

Poor image: If the image of the firm is perceived to be low( due to factors like operation
in the declining industry, poor quality products, nepotism etc), the likelihood of attracting
large number of qualified applicants is reduced.
Unattractive jobs: if the job to be filled is not very attractive, most prospective candidates
may turn indifferent and may not even apply. this is specially true of job that is boring,
anxiety producing, devoid of career growth opportunities and generally not reward
performance in a proper way( eg jobs in post office and railways).
Government policy: Government policies often come in the way of recruitment as per the
rules of company or on the basis of merit and seniority. Policies like reservations
(scheduled castes, scheduled tribe etc) have to be observed.
Conservative internal policies: Firms which go for internal recruitments or where labour
unions are very active, face hindrances in recruitment and selection planning.

RECRUITMENT- Relationship with other activities

Recruitment practices vary from one organization to another. Some organizations like
commercial banks resort to centralized recruitment while some organizations like the Indian
Railway resort to decentralized recruitment practices. Personnel department at the central office
performs all the functions of recruitment in case of centralised recruitment and personnel
departments at unit level/zonal level perform all the functions of recruitment concerning to the
jobs of the respective unit or zone.

The sources of recruitment may be broadly divided into two categories: internal sources and
external sources. Both have their own merits and demerits.
Internal Sources:Persons who are already working in an organization constitute the internal sources. Retrenched
employees, retired employees, dependents of deceased employees may also constitute the
internal sources. Whenever any vacancy arises, someone from within the organization is
upgraded, transferred, promoted or even demoted.
External Sources
External sources lie outside an organization. Here the organization can have the services of: (a)
Employees working in other organizations; (b) Jobs aspirants registered with employment
exchanges; (c) Students from reputed educational institutions; (d) Candidates referred by unions,
friends, relatives and existing employees; (e) Candidates forwarded by search firms and
contractors; (f) Candidates responding to the advertisements, issued by the organization; and (g)
Unsolicited applications/ walk-ins.
Merits and Demerits of Recruiting people from within
1) Economical: The cost of recruiting
internal candidates is minimal. No
expenses are incurred on advertising.


Limited Choice: The organization is

forced to select candidates from a
limited pool. It may have to sacrifice
quality and settle down for less
qualified candidates.


3) Reliable: The organization has the

knowledge about suitability of a
candidate for a position. Known devils
are better than unknown angels!

Inbreeding: It discourages entry for

talented people, available outside an
organization. Existing employees may
fail to behave in innovative ways and
inject necessary dynamism to
enterprise activities.


4) Satisfying: A policy of preferring

people from within offers regular
promotional avenues for employees. It
motivates them to work hard and earn
promotions. They will work with
loyalty commitment and enthusiasm.

Inefficiency: Promotions based on

length of service rather than merit,
may prove to be a blessing for
inefficient candidate. They do not
work hard and prove their worth.


Bone of contention: Recruitment

from within may lead to infighting

2) Suitable: The organization can pick the

right candidates having the requisite
skills. The candidate can choose a right
vacancy where their talents can be fully

among employees aspiring for limited,

higher level positions in an
organization. As years roll by, the race
for premium positions may end up in a
bitter race.

The merits and demerits of recruiting candidates from outside an organization may be
stated thus:

Merits and Demerits of External sources of Recruitment

Wide Choice: The organization has the
freedom to select candidates from a large
pool. Persons with requisite qualifications
could be picked up.
Infection of fresh blood: People with
special skills and knowledge could be hired
to stir up the existing employees and pave
the way for innovative ways of working.
Motivational force: It helps in motivating
internal employees to work hard and
compete with external candidates while
seeking career growth. Such a competitive
atmosphere would help an employee to
work to the best of his abilities.
Long term benefits: Talented people could
join the ranks, new ideas could find
meaningful expression, a competitive
atmosphere would compel people to give
out their best and earn rewards, etc.

Expenses: Hiring costs could go up
substantially. Tapping multifarious sources
of recruitment is not an easy task either.
Time consuming: It takes time to
advertise, screen, to test and test and to
select suitable employees. Where suitable
ones are not available, the process has to be
De-motivating: Existing employees who
have put in considerable service may resist
the process of filling up vacancies from
outside. The feeling that their services have
not been recognized by the organization,
forces then to work with less enthusiasm
and motivation.
Uncertainty: There is no guarantee that the
organization, ultimately will be able to hire
the services of suitable candidates. It may
end up hiring someone who does not fit
and who may not be able to adjust in the

new setup.

Internal Methods:
1. Promotions and Transfers
This is a method of filling vacancies from internal resources of the company to achieve
optimum utilization of a staff member's skills and talents. Transfer is the permanent lateral
movement of an employee from one position to another position in the same or another job
class assigned to usually same salary range. Promotion, on the other hand is the permanent
movement of a staff member from a position in one job class to a position in another job
class of increased responsibility or complexity of duties and in a higher salary range.
2. Job Posting
Job Posting is an arrangement in which a firm internally posts a list of open positions (with
their descriptions and requirements) so that the existing employees who wish to move to
different functional areas may apply. It is also known as Job bidding. It helps the qualified
employees working in the organization to scale new heights, instead of looking for better
perspectives outside. It also helps organization to retain its experienced and promising
3. Employee Referrals
It is a recruitment method in which the current employees are encouraged and rewarded for
introducing suitable recruits from among the people they know. The logic behind employee
referral is that it takes one to know one. Benefits of this method are as follows:
Quality Candidates
Cost savings

Faster recruitment cycles

Incentives to current employees
On the other hand it is important for an organization to ensure that nepotism or favoritism
does not happen, and that such aspects do not make inroads into the recruitment process.

External Methods:
External methods of recruitment are again divided into two categories- Direct External
Recruitment and Indirect External Recruitment methods.

Direct External Recruitment Methods

1. Campus Recruitment
In Campus Recruitment, Companies / Corporate visit some of the most important Technical
and Professional Institutes in an attempt to hire young intelligent and smart students at
source. It is common practice for Institutes today to hire a Placement Officer who coordinates
with small, medium and large sized Companies and helps in streamlining the entire Campus
Recruitment procedure.
Benefits of Campus Recruitment
Companies get the opportunity to choose from and select the best talent in a short
span of time.
Companies end up saving a lot of time and efforts that go in advertising vacancies,
screening and eventually selecting applicants for employment.
College students who are just passing out get the opportunity to present themselves to
some of the best companies within their industry of interest. Landing a job offer while
still in college and joining just after graduating is definitely what all students dream
On the negative front, campus recruiting means hiring people with little or no work
Indirect External Recruitment Methods
1. Advertisements
Advertisements are the most common form of external recruitment. They can be found in
many places (local and national newspapers, notice boards, recruitment fairs) and should
include some important information relating to the job (job title, pay package, location, job
description, how to apply-either by CV or application form, etc). Where a business chooses
to advertise will depend on the cost of advertising and the coverage needed i.e. how far away
people will consider applying for the job.
2. Third Party Methods

Walk-ins: Walk-ins is relatively inexpensive, and applicants may be filed and

processed whenever vacancies occur. Walk-ins provide an excellent public relations
opportunity because well-treated applicants are likely to inform others. On the other
hand, walk-ins show up randomly, and there may be no match with available
openings. This is particularly true for jobs requiring specialized skills.

Public and private employment agencies: Public and private employment agencies
are established to match job openings with listings of job applicants. These agencies
also classify and screen applicants. Most agencies administer work-sample tests, such
as typing exams, to applicants.

Gate Hiring and Contractors: The concept of gate hiring is to select people who
approach on their own for employment in the organization. This happens mostly in
the case of unskilled and semi-skilled workers. Gate hiring is quite useful and
convenient method at the initial stage of the organization when large number of such
people may be required by the organization

E-Recruiting: There are many methods used for e-recruitment, some of the important
methods are as follows:
a. Job boards: These are the places where the employers post jobs and search for
candidates. One of the disadvantages is, it is generic in nature.
b. Employer web sites: These sites can be of the company owned sites, or a site
developed by various employers.
c. Professional websites: These are for specific professions, skills and not general
in nature.



Time-lapse data: They show the time lag between the dates of requisition for manpower
supply from a department to the actual date of filling the vacancies in that department.
For example, a company's past experience may indicate that the average number of days
from application to interview is 10, from interview to offer is 7, from offer to acceptance
is 10 and from acceptance to report for work is 15. Therefore, if the company starts the
recruitment and selection process now, it would require 42 days before the new employee
joins its ranks. Armed with this information, the length of the time needed for alternative
sources of recruitment can be ascertained - before pinning hopes on a particular source
that meets the recruitment objectives of the company.

Yield ratios: These ratios indicate the number of leads/ contacts needed to generate a
given number of hires at a point at time. For example, if a company needs 10

management trainees in the next six months, it has to monitor past yield ratios in order to
find out the number of candidates to be contacted for this purpose. On the basis of past
experience, to continue the same example, the company finds that to hire 10 trainees, it
has to extend 20 offers. If the interview-to-offer ratio is 3:2, then 30 interviews must be
conducted. If the invitees to interview ratio is 4:3 then, as many as 40 candidates must be
invited. Lastly, if contacts or leads needed to identify suitable trainees to invite are in 5:1
ratio, then 200 contacts are made

Surveys and studies: Surveys may also be conducted to find out the suitability of a
particular source for certain positions. For example', as pointed out previously, employee
referral has emerged as a popular way of hiring people in the Information Technology
industry in recent times in India. Correlation studies could also be carried out to find out
the relationship between different sources of recruitment and factors of success on the
job. In addition to these, data on employee turnover, grievances, and disciplinary action
would also throw light on the relative strengths of a particular source of recruitment for
different organizational positions. Before finally identifying the sources of recruitment,
the human resource managers must also look into the cost or hiring a candidate. The cost
per hire can be found out by dividing the recruitment cost by the number of candidates

The size of the labour market, the image of the company, the place of posting, the nature
of job, the compensation package and a host of other factors influence the manner of aspirants
are likely to respond to the recruiting efforts of the company. Through the process of recruitment
the company tries to locate prospective employees and encourages them to apply for vacancies at
various levels. Recruiting, thus, provides a pool of applicants for selection.
To select means to choose. Selection is the process of picking individuals who have
relevant qualifications to fill jobs in an organisation. The basic purpose is to choose the
individual who can most successfully perform the job from the pool of qualified candidates.
The purpose of selection is to pick up the most suitable candidate who would meet the
requirements of the job in an organisation best, to find out which job applicant will be successful,
if hired. To meet this goal, the company obtains and assesses information about the applicants in
terms of age, qualifications, skills, experience, etc. the needs of the job are matched with the
profile of candidates. The most suitable person is then picked up after eliminating the unsuitable
applicants through successive stages of selection process. How well an employee is matched to a
job is very important because it is directly affects the amount and quality of employees work.
Any mismatch in this regard can cost an organisation a great deal of money, time and trouble,
especially, in terms of training and operating costs. In course of time, the employee may find the
job distasteful and leave in frustration. He may even circulate negative information about the
company, causing incalculable harm to the company in the long run. Effective election, therefore,
demands constant monitoring of the fit between people the job.

The Process
Selection is usually a series of hurdles or steps. Each one must be successfully cleared
before the applicant proceeds to the next one. The time and emphasis place on each step will
definitely vary from one organisation to another and indeed, from job to job within the same
organisation. The sequence of steps may also vary from job to job and organisation to
organisation. For example some organisations may give more importance to testing while others
give more emphasis to interviews and reference checks. Similarly a single brief selection
interview might be enough for applicants for lower level positions, while applicants for
managerial jobs might be interviewed by a number of people.


1. Reception
A company is known by the people it employs. In order to attract people with talents, skills and
experience a company has to create a favourable impression on the applicants right from the
stage of reception. Whoever meets the applicant initially should be tactful and able to extend
help in a friendly and courteous way. Employment possibilities must be presented honestly and
clearly. If no jobs are available at that point of time, the applicant may be asked to call back the
personnel department after some time.
2. Screening Interview
A preliminary interview is generally planned by large organisations to cut the cost of
selection by allowing only eligible candidates to go through the further stages in selection. A
junior executive from the Personnel Department may elicit responses from the applicants on
important items determining the suitability of an applicant for a job such as age, education,
experience, pay expectations, aptitude, location, choice etc. this courtesy interview as it is often
called helps the department screen out obvious misfits. If the department finds the candidate
suitable, a prescribed application form is given to the applicants to fill and submit.
3.Application Blank
Application blank or form is one of the most common methods used to collect
information on the various aspects of the applicants academic, social, demographic, work related
background and references. It is a brief history sheet of employees background.
Usefulness of Application Blank or Form
Application blank is highly useful selection tool, in that way it serves three important
1. It introduces the candidate to the company in a formal way.
2. It helps the company to have a cross-comparison of the applicants; the company can
screen and reject candidates if they fail to meet the eligibility criteria at this stage itself.
3. It can serve as a basis to initiate a dialogue in the interview.
4.Selection Testing
Selection tests or the employment tests are conducted to assess intelligence, abilities, and
personality trait.
A test is a standardized, objective measure of a persons behaviour, performance or attitude. It is
standardised because the way the tests is carried out, the environment in which the test is
administered and the way the individual scores are calculated- are uniformly applied. It is
objective in that it tries to measure individual differences in a scientific way giving very little
room for individual bias and interpretation. Some of them are
1. Intelligence Tests: These are mental ability tests. They measure the incumbents learning
ability and the ability to understand instructions and make judgements. The basic objective of
such test is to pick up employees who are alert and quick at learning things so that they can
be offered adequate training to improve their skills for the benefit of the organization.

2. Aptitude Test: Aptitude test measure an individuals potential to learn certain skills- clerical,
mechanical, mathematical, etc. These tests indicate whether or not an individual has the
capabilities to learn a given job quickly and efficiently. In order to recruit efficient office
staff, aptitude tests are necessary
3. Personality Test: The definition of personality, methods of measuring personality factors
and the relationship between personality factors and actual job criteria has been the subject of
much discussion. Researchers have also questioned whether applicants answer all the items
truthfully or whether they try to respond in a socially desirable manner. Regardless of these
objections, many people still consider personality as an important component of job success.
4. Simulation Tests: Simulation exercise is a tests which duplicate many of the activities and
problems an employee faces while at work.
5. Graphology Test: Graphology involves using a trained evaluator to examine the lines,
loops, hooks, stokes, curves and flourishes in a persons handwriting to assess the persons
personality and emotional make-up.
Polygraph (Lie-Detector) tests: the polygraph records physical changes in the body as the tests
subject answers a series of questions. It records fluctuations in respiration, blood pressure and
perspiration on a moving roll of graph paper. The polygraph operator forms a judgement as to
whether the subjects response was truthful or deceptive by examining
Tests are useful selection devices in that they uncover qualifications and talents that cant
be detected otherwise. They can be used to predict how well one would perform if one is hired,
why one behaves the way one does, what situational factors influence employee productivity, etc.
Tests also provide unbiased information that can be put to scientific and statistical analysis.
However, tests suffer from sizeable errors of estimate. Most psychological tests also have
one common weakness, that is, we cant use scales which have a known zero point and equal
intervals. An intelligence test, for example starts at an arbitrary point, where a person may not be
able to answer question properly. This does not mean that the person is totally lacking in
intelligence. Likewise, a person who is able to answer all the 10 questions correctly cannot be
called twice as intelligent as the one who was able to answer only 5.
Interview is the oral examination of candidates for employment. This is the most essential step
in the selection process. In this step the interviewer matches the information obtained about the
candidates through various means to the job requirements and to the information obtained
through his own observations during the interview. Interview gives the recruiter an opportunity
To size up the candidate personally;
To ask question that are not covered in the tests;
To make judgments on candidates enthusiasm and intelligence;
To assess subjective aspects of the candidate facial expressions, appearance,
nervousness and so forth;
To give facts to the candidates regarding the company, its policies, etc. and promote
goodwill towards the company.

the biological movements recorded on the paper

Types of interviews:
Several types of interviews are commonly used depending on the nature and importance of the
position to be filled within an organization.
In a non directive interview the recruiter asks questions as they come to mind. There is no
specific format to be followed.
In a patterned interview, the employer follows a pre-determined sequence of questions. Here
the interviewee is given a special form containing questions regarding his technical competence,
personality traits, attitudes, motivation, etc.
In a structured or situational interview, there are fixed job related questions that are presented
to each applicant.
In a panel interview several interviewers question and seek answers from one applicant. The
panel members can ask new and incisive questions based on their expertise and experience and
elicit deeper and more meaningful expertise from candidates.
Interviews can also be designed to create a difficult environment where the applicants
confidence level and the ability to stand erect in difficult situations are put to test. These are
referred to as the stress interview. This is basically an interview in which the applicant is made
uncomfortable by a series of, often, rude, annoying or embarrassing questions.
Steps in interview process:
Interview is an art. It demands a positive frame of mind on part of the interviewers. Interviewers
must be treated properly so as to leave a good impression about the company in their minds. HR
experts have identified certain steps to be followed while conducting interviews:

Establishing the objective of the interview

Receiving the candidates application and resume
Keeping tests score ready, along with interview assessment forms
Selecting the interview method to be followed
Choosing the panel of experts who would interview the candidates
Identifying proper room for environment

The candidate should be properly received and led into the interview room. Start the interview on

State the purpose of the interview, how the qualifications are going to be matched with
skills needed to handle the job.

Begin with open-ended questions where the candidate gets enough freedom to express
Focus on the applicants education, training, work experience, etc. Find unexplained gaps
in applicants past work or college record and elicit facts that are not mentioned in the

Evaluation is done on basis of answers and justification given by the applicant in the interview.
After the selection decision and before the job offer is made, the candidate is required to undergo
a physical fitness test. A job offer is often contingent upon the candidate being declared fit after
the physical examination.
5.REFERENCE CHECKS: Once the interview and medical examination of the candidate is
over, the personnel department will engage in checking references. Candidates are required to
give the names of 2 or 3 references in their application forms. These references may be from the
individuals who are familiar with the candidates academic achievements or from the applicants
previous employer, who is well versed with the applicants job performance and sometimes from
the co-workers.
The line manager has to make the final decision now whether to select or reject a candidate
after soliciting the required information through different techniques discussed earlier. The line
manager has to take adequate care in taking the final decision because of economic, behavioral
and social implications of the selection decisions. A careless decision of rejecting a candidate
would impair the morale of the people and they suspect the selection procedure and the very
basis of selection in a particular organization.
A true understanding between line managers and personnel managers should be
established so as to facilitate good selection decisions. After taking the final decision, the
organization has to intimate this decision to the successful as well as unsuccessful candidates.
The organization sends the appointment order to the successful candidates either immediately or
after sometime depending upon its time schedule.
Interviewing Mistakes:
May have been influenced by cultural noise, snap judgments, halo effect, stereotyping, first
impression etc.


A clear, accurate and up-to-date job description is crucial to ensuring a good person-job fit. It is
worthwhile spending some time making sure that the job description matches the everyday
reality of the job.


Periodically evaluating the effectiveness of your recruitment strategy, such as the type of
sources used for recruiting, can be a useful activity. For instance, a cost-benefit analysis
can be done in terms of the number of applicants referred, interviewed, selected, and
hired. Comparing the effectiveness of applicants hired from various sources in terms of
job performance and absenteeism is also helpful. One could also examine the retention
rates of workers who were hired from different sources
Nagarjuna Fertilizers and Chemicals Limited:
The Company in terms of the Composite Scheme of Arrangement and Amalgamation of
Nagarjuna Fertilizers and Chemicals Limited, Kakinada Fertilizers and Chemicals Limited,
Ikisan Limited and Nagarjuna Oil Refinery Limited has merged into Kakinada Fertilizers
Limited, its wholly owned subsidiary with Registered Office at A/612, Dalamal Tower, 211,
Nariman point, Mumbai-400021.
Accordingly the name of the Company is now Kakinada Fertilizers Limited with effect from
August 1, 2011.
Ikisan Limited a Company involved in agri informatics, information techology, education
services and micro irrigation has also merged into Kakiinada Fertilizers Limited. Website :

The flagship company of the Nagarjuna Group, Nagarjuna Fertilizers and Chemicals Limited is a
leading manufacturer and supplier of plant nutrients in India. Commencing operations in 198687, today our asset base is around Rs. 21 billion. We have the distinction of being the single
largest private sector investment in Southern India. An ISO 9001:2000 certified company, our
operational profits are one of the highest in the industry. We assume market leadership in the
markets we operate.
In terms of the Composite Scheme, the name of the Company has been changed to Nagajuna
Fertilizers and Chemicals Limited w.e.f. August 19 2011.
Our broad portfolio of products and services include:
* Nutrition solutions:
Macro and Micro fertilizers and Farm Management services
* Micro Irrigation solutions
We offer our expertise for the management of chemical process plants, which include Specialist
Services and Total Project Management.

Our operations and offerings have been aligned into three strategic business units:
* Straight Nutrition Business
* Nutrition Solutions Business
* Nagarjuna Management Services
To survive, grow and attain leadership position in our areas of operation it is essential for us to
identify and capitalise on emerging opportunities.
Preparing for the future, proactively, we are addressing the most important aspects of our
Strategy Having a long term vision for the company
Structure To facilitate achieve our strategy
People Aligning related policies with Strategy and Structure. In turn to build the right
capability, attitude and behaviour in employees.
Process To enable employees to work more efficiently and effectively, to have the best in class
internal business processes.
Our endeavour is to unlock the full potential of our people by transforming into a performance
driven organisation that attracts the best talent, nurtures a more productive and results-focused
workforce and implements initiatives, which align people strategies with organisational
The key action areas in this road map are:

Facilitating redefinition of organisation structure to support NFCLs business direction,

goals and priorities.

Evolving a people management philosophy and institutionalising systems and policies

that reflect uniformity, fairness and transparency.

Establishing Best in Class HR systems and processes, in line with organisational


Facilitating creation of a performance based culture with clear linkages to rewards and

Defining the organisation capability framework and assessing organisational people

capability to support NFCLs vision.

The Policies Related to Recruitment and Selection Process Followed

At NFCL the recruitment and selection policy has been named Talent Engagement Policy and
the company will recruit the required human resources through policy.
Talent Engagement Policy:
The company is having a talent engagement policy which describes the approving authority for
recruitment, selection methods followed by the company. Talent engagement form attached as
For all recruitment engagement of talents in the organization, the process shall be initiated
through human potential department (HPD) only. Group HPD is the process owner and shall be
issuing the guidelines on this from time to time.
The recruitment of new associates is based on the vacancies in the approved organization
structure of the company.
For recruitment of any position in the organization, a manpower requisition duly filled in by the
format shown in the annexure-1 has to be sent by the department head. Based on the request, the
HPD will initiate the process.
Position wise approving authority as per the policy:
Type of positions

Approving authorities for recruitment

All replacement positions

All new positions with approved organization
All new positions outside the approved
organization structure

HOD/ Business Head

Director and COO
VC and MD

Objectives of the NFCLs Recruitment and selection policy:

To create sound procedure to appoint employees within the stipulations of the approved

To recruit, select and place competent and suitably skilled people who will contribute to
the achievement of the NFCLs strategic and operational requirements.

To attract talented and motivated people who will achieve and contribute to the NFCLs
continued business success while enjoying long term carrier success.

To recruit and select employees, but also to ensure the full utilization and continued
development of human resources.

To ensure that all recruitment activities are handled according to best practice and
professional guidelines.

To create positive image of the company.

Cadres, Levels, Grades and designations at NFCL:

The company is divided its human resources into:
Management Cadre ( top management, senior management, middle management and jr.
Commercial / technical cadre.
The top management has been graded as NG 8 and the jr. Management has been graded as NG 1.
The commercial and technical staffs have been graded as E 6 to E 1.
The company is having regional and branch offices all over India. Recruitment of its resources
will be done through centralized system .i.e. all the recruitments will be done in its Head Office
only i.e. Hyderabad.
Methods followed by the company for recruiting its human resources:

Internal Job Posting

Employee referral program
Recruitment agency
Relatives of associates
Re-joining of ex-employees

1) Internal job posting:

Whenever there is a job opening in the organization, it would be posted internally for the
associates to apply.
The applications will be short-listed based on the competency required for the position.
The process of inviting and screening resumes of external candidates would also be
carried out parallel to it.
The internal candidates would be screened first for the particular opening, in case no
internal candidate is found suitable for the particular position, the screened resumes of
the external candidates would be used for the recruitment process.

There is no predefined time limit for which the internal vacancy would be posted; the
duration for which the vacancy would be posted would depend on the nature and
criticality of the job.
This policy is applicable to all the full time associates of the company who have
completed one year of service in the organization.

2) Employee Referral Program:

This policy is applicable to all full time associates (except the recruitment related associates of
HPD/ P&A department and concerned Head of the Department) of the company at all locations.
The aim of the program is to make the recruiting process more effective and to create a talent
pool of high potential people in the organization and to identify and engage performing people
known to the company associates for their contribution in the industry.
Employee referral program process:

All the job opportunities with the required job and skill profile will be posted on the
notice boards.

The associates have to forward the CVs of the referral to the recruitment in-charge in
the HPD department of his perusal.

Even if there are no opportunities available, associates can send in referrals, which will
be kept in the recruitment database.

The candidate will be contacted directly if considered appropriate for the position.
HPD/P&A will however not be able to provide the associate a status update, and will
also not be able to share information of the interview details with the refereeing

Reward to employees for referring candidates:

If the referral candidate is selected (except in case of trainees), the concerned associate referring
the candidate will be eligible for a reward money equivalent to 5% of the CTC.(excluding PF,
Superannuation &performance pay) of the referral candidate. The amount will be discussed as
mentioned below:

30% of the reward money will be paid soon after the candidate joins the organization.
In case the candidate leaves the organization before 6 months of his joining, the same
will be removed from the referring associate.
Balance 70% of the amount will be given after the 1st performance review of the
candidate is over and on candidate getting at least GOOD or equivalent rating in the

3) Recruitment agency:

The company is having written agreements with some of the agencies for manpower
Details of the position required, will be intimated to the agency through email/phone by
the HPD.
Based on the required, the agency will send the suitable profiles to HPD.
The agency must guarantee the candidate for at least 3 months, if within 3 months the
candidate resigns the agency must provide alternate source with free of cost.
4) Advertising :
Vacancy advertisement will be given in the reputed national news papers, based on the type of
the vacancy. Generally this method will be used only to recruit the senior management cadre.
5) Relatives of associates:
Relatives of associates can work in the organization, the associate needs to declare in case of
referring a relative for a particular job position.
6) Re-joining of ex-employees:
In general the organization does not encourage joining of ex-employees who have voluntarily left
the organization left the organizations to join back. However, in case an associate possesses
exceptional skills and if the organization feels that by joining, the associate would be adding
tremendous value to the organization, the organization may consider the associate for the
required position upon approval of the VC & MD.

Selection Process at NFCL

Step 1:
The preliminary short-listing of candidates will be made by HPD/ P& A along with
concerned departmental head based on:

Minimum qualification required

Experience except (for fresher)

Step 2:
Once the short-list is completed it will be return to HPD. HPD will inimate all the shortlist candidate by phone or email advising them of their interview date, venue, time etc.
Step 3:
The company is having a full-fledged Talent Engagement Form which should be filled
by all the candidates at the time of interview. This form contains all the details of the

candidate i.e. his/ her family background, qualification, experience details, references,
salary particulars etc.
The short-listed candidates will go through a selection process consists of all/ one
combination of the following based on the need.


GD (in case of campus selection)

Interview panel will consist of:
Functional experts from within/outside the organization
Department/ division head
Representative from HPD/ P & A
Step 4:
After 1st round interview, the interview panel short lists the candidates (if the no. Of
candidates attended are high compare to the available positions) for the final round
Step 5:
HPD will conduct the referral verification of the selected candidate by consulting the
references given by the candidate at the time of the interview. If any complaints received
against the candidate during referral verification, that candidate will be deleted from teh
selected list. If the candidate found good in referral verification also, offer will be sent to
the candidate.
Offer Letters will be sent to the selected candidates by HPD. After getting the letter the
candidate has to confirm his joining and accordingly confirmation must be sent to the
Step 6 (on the day of joining)

On the day of joining the candidates will be sent for Medical checkup, based on the cadre
they have selected.
The candidate must submit the following documents to HPD. HPD will verify these
documents and will be filed in the individual fie of the candidate.

Acceptance of the offer of the appointment duly signed.

Original education certificate along with one photocopy set for file copy( the original
certificates will be return immediately to the associates after verification)

Relieving letter, in original from past employer- if applicable

Last pay-slip, in original from previous employer , if applicable.

Copies of service certificates of previous employers, if applicable.

4 passport size photographs.

All associates are required to open a saving bank account with company nominated bank.
Their salary and other re-imbursement would be credited directly to their bank accounts.

Step 7:
To understand whos who in the organization, functions of various departments and the work
culture and induction programme will be arrange to the new recruitee. The induction
programme of the new employee will be circulated to all the concerned departments. The main
purpose of this program is to get:

Knowledge about the organization ( history and present, vision and values)
Knowledge about his/her job( roles and responsibility)
Knowledge about relevant people
Knowledge about policies, systems and practices of the organization.

Step 8:
Commencement of service:
Service of an associate will start from the day he/she reports to the duty in terms of appointment
Associate who are joined below General Manager level has to be under probationary for 6
months from the date of joining. After successful completion of the probationary period based on
the recommendation of the concerned HOD, associates will be taken in permanent roles.
Fitment of Trainees:
The company recruits various categories of trainees from different educational backgrounds for
pre- defined training period. The company shall have no obligation to regularize the trainee in
the regular roles of the company after completion of the training period. The performance/
progress of the trainee will be evaluated every 3 months during his/ her training.
Other HR policies of the company:
The company is having other HR policies which are formulated for the benefit its associates as
well as the company.
Work life policy: This policy explains the associates working days, time, attendance, dress code,
personnel data, and facilities to the employees at work place.
Working days: All days except 2nd and 4th Saturday, weekly holiday
Working timing:
Types of shifts






field office





Kakinada plant 8:00a.m.4:30p.m

Identity cards are necessary for every employee.

Each day entry in attendance register

Dress code Formal dress for corporate employers

For Kakinada dress codes are-

Men Rs.150/-per set

Women Rs.15/-per blouse

3 uniforms per year

3 pair socks and 1 pair shoes

1 pair gum boots once in four year

Raincoat once in 3 year

Badget, caps,belts once in a year

Employees PF and pension schemes
Group insurance scheme in lien of EDLT

Gratuity (for employees who completed 5 years of continuous service)

Superannuation scheme for management cadres(NG1-NG8)
Long service awards on founders day (28 nov.)
Housing loan facilities(at 5.5% interest, E0-E3(2 lakh), E4-E6(2.75 lakh))
Two wheeler loan(for E0-E6- Rs 35000/-) 3 times in his/her service.
Furniture loan (E0-E6) Rs. 40000/ Group saving linked insurance scheme(E0-E6)
Akshara school Kakinada plant
NEWS club at Kakinada plant
Festival advance for commercial/technical staff (E0-E6)
Baggage insurance (NG1-NG8)
Fidelity guarantee insurance
Health and wellbeing policy:
Medical checkup every year
Annual health checkup for family member at Kakinada plant
Occupational health center at Kakinada plant
Hospitalization scheme for associates of grades E0-E6
Extent of reimbursement self 100%,spouse 80%, dependent 7500/-p.a.
Medicare scheme for management cadres(NG1-NG8)
ESI(Employee state insurance)
Family planning incentives(Rs.1500/-)
Group personal accident policy(for unfortunate event)

Leaves policy: Compulsory paid holidays-9 Days

Types of leaves


Casual leaves

7 days

Sick leaves

11 days

Annual leaves

21 days

Birthday leaves


Maternity leaves

12 weeks(only for 2 children)

Paternity leaves
Family planning leaves

3 days(only for 2 children)



Sick leave bank to avoid loss of pay

Travel policy:
This explains the procedure and guidelines to the employees while travelling on business
General travel rules and procedures stated.
Travel program plan (visiting plan, date, time) should be clear.
Instruction have to be sent to the administration department for approval
Copy of approval travel plan has to be sent to the finance department
Accommodation by administration department
Travel claim: All bills enclosed with travel plan, all expense mentioned in that enclosures, and
send to respective department for further process.
Travel rules for sales field staff:
Regular tour for sales- all expenses incurred will be recovered.
Marketing operation divided into two slabs-slab1 and slab2 according to state wise
Transfer and deputation:
All transfer of associates in the organization.
Intradepartmental transfer
Interdepartmental transfer
From one location to other
Between group of companies

Transfer request by associates

To fill Transfer form
Relocation expenses

Deputation: Transfer from one department to another department.

Learning and development:
Associate potential development: Building individual competition i.e. knowledge, skill,
ADP is a 4 step process; it gives step by step directions


Competency gap analysis

Business requirements


Need analysis & APD plan

Content development


Internal program
External program/seminars/long
term courses

Post program
Pre and Post program
On the job
Return on investment

Resignation is a voluntary separation initiated by associate if he/she is desirous leaving the
service of the organization. All associates are required to give a notice in writing if they wish to
discontinue their employment relationship with the organization. Process, notice period cadre
wise, retirement, termination, death benevolent assistance, final settlement.
Retirement 58 years
Post facilities after retirement are- hospitalization scheme, pension etc
Death benevolent assistance funeral expense i.e. Rs. 3500/Discrimination and harassment policy: Through grievance resolution committee
Technology used: Applicability to information Technology infrastructure available at work

Ease of work

Optimization of performance

Ease of maintenance

Observation made during the study and analysis of the company policy

The company is having all over India branches/area offices. Initial interviews will be
conducted at the area office by the concerned area manager. As the HR Department is
located in the corporate office so all the final interviews & selection will be done at its
corporate office i.e. in Hyderabad.

Sometimes screening will be done by telephonic interview which is conducted by the

HR department in corporate office..

The candidate will be filtered based on merit and experience.

The company is recruiting its manpower through consultancy also. The consultancy will
be selected based on the process used by them before sending the candidate to the

The company is tie up with job portal also. This is helpful for the process
of recruitment in collection of resumes.

The candidate will be selected based on the communication and their presentation at the
time of interview. Subject knowledge is also essential based on type of the vacancy.

The time lag between recruitment and placing will be done within one month.

The company will pay the applicants expenses for attending the interview, based on the

Rejected candidates will be intimated and their profile will be kept in data bank for a
period of 6 month.

1) The recruitment and selection process of company meets the current legal

Strongly Agree



4% 4% 20%
no opinion


strongly disagree


Response Pattern
Strongly Agree
no opinion
strongly disagree



Near about 20% of the respondents are strongly agree with the statement that recruitment and
selection process of company meets the current legal requirements, and 60% are agree only so,
total 80% of the respondent are in favor that the process of recruitment & selection meets the
current legal requirement.

The process of recruitment & selection which is followed by the company is helpful to meet the
companys manpower requirement.

2) Recruitment & Selection Policy of company is clearly stated.


4% 2%


Strongly Agree
no opinion


strongly disagree

Response Pattern
Strongly Agree
no opinion
strongly disagree



The question was raised to know that employees are aware about the companys recruitment &
selection policy or not. Near about 85% are agreed that the recruitment & selection policy is
clearly stated and only 8% are disagree.
So the recruitment & selection policy of company is clearly stated but it requires little bit change.
But the company policy should be updated time to time.


Internal source is better for company

4% 2%


Strongly Agree
no opinion


strongly disagree

Response Pattern
Strongly Agree
no opinion
strongly disagree



As per the respondent response near about 70% are agree with the statement that internal source
is better for company, 22% having no response and 6% are disagree with the statement.
After analysis it is better to get the manpower by internal source as they are aware about that
candidate skill and behavior but sometimes company will not get right candidate.

4) External source is better for company.



Strongly Agree



no opinion
strongly disagree

Response Pattern
Strongly Agree
no opinion
strongly disagree



Near about 55% are disagree with the statement that external source is better for companys
recruitment process and about 34% are in favor of this statement.
From this question respondent are satisfied with the internal source but some are not satisfied
and they preferred external source.

5) I feel scarcity of manpower at my working place.





Strongly Agree


no opinion
strongly disagree

Response Pattern
Strongly Agree
no opinion
strongly disagree



Near about 60% are disagree with this statement, means they are not feeling scarcity of
manpower and Only 20% are agree with this statement.

This shows that HR department fulfills all the requirements of human resource in the
organization as soon as required. But as some are disagree with this statement means the
recruitment process needs change.

6) I feel that the right job is being performed by the deserved person at my
working environment.




Strongly Agree


no opinion
strongly disagree

Response Pattern
Strongly Agree
no opinion
strongly disagree



It is very important for any organization to recruit skilled manpower, to achieve its business
target. The question was raised to know the opinion that right job is performed by right person.
So 60 % are agree and near about 20% are disagree.
This shows company is recruiting right candidate for right job but some respondent are disagree
so selection process need improvement and proper verification of recruitee.

7) The employees competency matches with the job specification.


8% 2%

Strongly Agree
no opinion


strongly disagree

Response Pattern
Strongly Agree
no opinion
strongly disagree



Nearly 45% are agree with this statement and 20% are disagree but surprisingly 40% gave no
opinion this means they are not aware about other competencies,
This interpret ate that companys recruitment process is helpful in getting right candidate for
right job but as per of the some respondent dissatisfaction the recruitment should be more filter.

8) To what extent you are satisfied with the external source (job portals) for
recruitment process.

2% 7%



Strongly Agree
no opinion


strongly disagree

Response Pattern
Strongly Agree
no opinion
strongly disagree



some respondent are satisfied with the external source of recruitment ,It is observed that most of
the candidates are recruited through Reference or other internal source and about 50% have no
opinion the external sources like job portals, consultancies.

9) To what extent you are satisfied with the employees reference for
recruitment process.


Strongly Agree




no opinion
strongly disagree

Response pattern
Strongly Agree
no opinion
strongly disagree



60% of respondent are in favor of the statement that they are satisfied with the employees
referral, this helps in getting known candidates as company knows the skill and behavior of the
recruitee. But near about 35% are disagree with the statement so, recruitment process need good
external sources for recruitment process.

To what extent the selection procedure followed for your recruitment is
suitable to your job.




Strongly Agree


no opinion


strongly disagree

Response pattern
Strongly Agree
no opinion
strongly disagree



Near about 70% of the candidates are satisfied with the selection procedure and this shows right
person is in right job but near about 30 % are not satisfied so this shows that selection process
also needs some changes.