Sub: Human Resource Management Dr. Vinod H.

Kamble

MODULE-I HUMAN RESOURCE MANAGEMENT

____________________________________________________________________________________________
People are an organization’s most important asset. Success of any business is greatly influenced by the caliber and
attitude of the people who work for it. HRM is a process of bringing people and organizations together so that the
goals of each are met. It is an art of procuring, developing and maintaining competent workforce to achieve the
goals of an organization in an effective and efficient manner.

DEFINITION OF HRM
According to Edwin Flippo “HRM is planning, organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and separation of human resource to the end that individual,
organizational and social objectives are accomplished.”

TRADITIONAL V/S STRATEGIC HRM

Points Traditional HRM Strategic HRM
Meaning THRM is a traditional approach of SHRM is the process of aligning the business
managing human resources so as to strategy with the company’s human resource
achieve organizational goals. practices, so as to attain strategic goals of an
organization. In SHRM, the workforce of the
company is managed proactively.
Primary Goal The primary goal of THRM is to The primary goal of SHRM is to increase
complete job on hand. employee productivity.
Quality of In THRM, there is emphasis on In SHRM, there is emphasis on quality of work
Work quantity of work
Retention of No special efforts are made to retain Efforts are made to retain competent employees.
employees competitive employees. Eg. Retention bonus and loyalty programs are
undertaken to retain employees.
Nature of THRM takes reactive decisions relating SHRM takes proactive decisions relating to human
Decisions to human resources. resources.
Nature of HR Generally, HR policies are rigid in HR policies are flexible in nature. HR policies are
policies nature. Once framed, there are hardly any reviewed periodically and changes are made
changes in HR policies. therein.
Selection THRM adopts traditional selection SHRM adopts scientific selection procedures in
procedure. There is less emphasis on selecting employees. Relevant employment tests
relevant employment tests and interviews. and interviews are conducted.
Placement Under THRM, there is lack of emphasis SHRM considers systematic placement of
on systematic placement of employees employees –right persons for right job.
Training THRM places less emphasis on training SHRM places emphasis on training and
and development. Traditional HR development. The HR manager considers that
managers place emphasis on experience training helps to enrich knowledge, and skills for

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of employees. improving efficiency.

Compensation Generally, employees are paid Under SHRM, employees are paid salary/wages.
salary/wages. There is lack of Also, employees are provided with performance
performance based incentives. There is based incentives. Additional incentives are paid in
hardly any emphasis on retention bonus, the form of retention bonus, ESOP etc.
ESOP etc.
Performance Generally, there is lack of emphasis on There is lot of emphasis on performance appraisal
Appraisal performance appraisal. The HR manager of employees. Modern methods of performance
may adopt traditional performance appraisal are undertaken such as assessment
appraisal techniques such as maintaining centres, role analysis, 3600 appraisal etc.
confidential reports.
Promotion Under THRM promotion by seniority is SHRM gives importance to promotion by merit at
followed at all levels. top level and by seniority at lower level.

OBJECTIVES OF HRM

1) Availability of competent manpower: The success of any organization is depend on quality of its employees.
HRM helps to make available competent and dedicated manpower through proper selection, placement,
training, motivation, career development etc. of HR.

2) Effective use of manpower: HRM not only facilitates availability of competent manpower but also makes
effective use of manpower. After selecting the employees, they are placed in the right department. They are
also provided with training and motivation to achieve organizational success.

3) Motivation of manpower: Due to HRM the organization achieves higher performance in terms of market
share and profitability. Some part of profit is used for welfare of employees. Nowadays, in professional firms
employees are rewarded with performance linked incentives which results into motivation among manpower.

4) Morale of employees: Morale refers to mental or emotional state. It is someone’s spirit or attitude. HRM helps
to improve mental and emotional state of employees. Employees work in team which helps to achieve
organizational goals.

5) Career development: HRM facilitates career development of employees by creating right environment within
the organization. Career development can take place by training, motivation, counseling and challenging task
to employees.

6) Competitive advantage: Effective HRM policies make the manpower competent and dedicated. Therefore the
performance of the organization improves which result into competitive advantage for the organization.

7) Corporate image: Effective HRM helps to enhance corporate image of the organization in the minds of
various stakeholders such as customers, employees, shareholders and other members of society.

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8) Working relationships: HRM enables proper defining of authorities and responsibilities for every job.
Objectives are very clear. So the dispute does not take place in the organization and there is better working
relationship between employees and management.

ORGANIZATIONAL STRUCTURE OF HRM

I) HR FRONT OFFICE
a) Client Relationship: This section is responsible for developing and maintaining good rapport and
relationship with the clients. Eg. In an Advertising Agency, there is a need to have excellent client
relationship so that the client is satisfied which would help the firm to get more business from the existing
client. Also, good client relationship would enable the firm to obtain new clients.
b) Meetings and Monitoring Services to Clients: This section is responsible for monitoring the timely
provision of services to the clients. They may also be involved in scheduling meetings with the clients to
discuss relevant issues.

II) HR BACK OFFICE

a) HR Compensation: Compensation refers to the reward given to employees for their labour. It includes
 Monetary form of compensation like salary, bonus, incentives etc.
 Non-monetary form of compensation like certificate, award, hosting for lunch/dinner etc.
b) Record Keeping: This section is responsible for maintaining and updating HR records and files. The HR
records are useful for HR decisions such as promotions, transfers, terminations, retirement related issues
etc.

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c) Legal Requirements: This section is responsible for legal requirements relating to employees. This
section need to have a good knowledge with the various provisions of Acts such as Trade Union Act,
Minimum Wages Act, Workmen Compensation act, Prevention of Sexual Harassment Act etc.
d) Employee’s Grievances: This section is responsible to deal with employees’ grievances. Employee
grievance refers to a written complaint by an employee or a group of employees and claiming unfair
treatment by the management. The employee grievances may be relating to poor working conditions,
disputes relating to the promotion of employees, disciplinary action, transfers, termination etc.
e) Human Resource Planning (HRP): HRP is a primary activity of HRM. HRP is the process by which the
organization ensures that it has the right kind of people at the right time and at the right place. HRM
process involves:
 Review organizational goals
 Forecast HR requirements
 Forecast HR supply
 Comparison of HR requirement and supply and find out deviation (if any).
 Take corrective action, if there is shortage or surplus of manpower

III) HR CENTRES OF EXCELLENCE

a) Acquisition Function:
 Job Analysis: Collecting information related to the operations and responsibilities of a specific job
 Recruitment: It is a process of searching for prospective employees and stimulating them to apply for
jobs in the organization.
 Selection: Choosing the most suitable candidates from those who have applied for the post.

b) Placement: It refers to placing right employees in the right department. Eg. If the candidate has the
knowledge of accountancy, he should be placed in accounts department. Right placement can bring job
satisfaction, motivation and commitment among employees.

c) Training and Development: Training and development refers to the imparting of specific skills, abilities
and knowledge to the employees. It helps to improve employees’ performance. Training can be on-job or
off-job

d) Performance Appraisal: It refers to systematic evaluation of employees’ job related strengths and
weaknesses. Such evaluation is done with respect to certain predetermined criteria such as job knowledge,
quality and quantity of output, co-operation, leadership abilities, versatility etc. Performance appraisal

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helps to identify strengths and weaknesses of the employees. This helps in framing training and
development programs.

e) Promotion: It refers to vertical movement of employee with higher pay and higher position. At higher
level the promotion can be on merit basis. At lower level promotion can be on seniority basis.

f) Career planning and development: Career planning involves deciding on the career goals of the
employees and the route to achieve these. Career development refers to programs designed to match an
individual’s needs, abilities and career goals with opportunities in the organization.

g) Industrial Relations: HRM is concerned with the industrial relations. It includes union-management
relations, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes
etc.
h) Employees Welfare: HRM is responsible for employees’ welfare. Welfare measures include crèche
facilities, canteen facilities, recreation facilities, rest rooms, transport facilities, employee’s group
insurance, and so on. Appropriate welfare facilities motivate the employees and make them committed and
dedicated to their organization.
i) Employees Health and Safety: HRM is concerned with the function of maintenance of manpower. It
involves protecting and promoting health and safety of the employees. For this purpose, the organization
may adopt health and safety measures and provide other fringe benefits such as medical aid. Social
security measures like provident funds, pension, gratuity, maternity benefits, injury or accident
compensation, etc. enhance employee’s well-being.

CHANGING ROLE OF HR MANAGER

1) Employee Empowerment: Employee empowerment refers to giving employees a certain degree of autonomy
and responsibility for decision-making regarding specific organizational tasks. It involves giving them the
responsibility and autonomy to manage their own jobs, set their own objectives and make decisions about
tasks, priorities and deadlines. It increases the employees’ sense of responsibility, enhances their morale and
improves their performance.
Challenges in Employee Empowerment
 No uniformity in decisions

 Breakdown of organizational structure

 Accountability issues

 Training Requirements

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 Lack of experience increases risk

 Risk of Confidentiality

 Attitude/Behaviour of the employees

2) Workforce Diversity: Workforce diversity is one of the biggest challenges for the 21 century managers. It
st

refers to the variety of differences between people in an organization. These differences relate to age, gender,
race, physical abilities, education, marital status, cultural background, religion, experience, skills and so on.
This diversity is reflected in the behaviour of employees. Hence it becomes necessary to understand and
manage it.

Challenges of workforce diversity

 Framing policies for the organization becomes difficult as different groups may have different
expectations.
 Attitudes, goals, approaches etc. of the employees may vary leading to conflicts.
 Diversity may result in confusion, lack of teamwork, and low morale.
 Many employees are not comfortable working with people of a different age, sex, or culture.
 Workforce diversity may lead to absenteeism and higher turnover.
 The organization has to be culturally sensitive as a particular action, decision etc. may not be perceived in
the same manner by different groups in the organization.

3) Attrition: Employee attrition is one of the critical problems faced by an HR manager during these days. In
broad term, attrition is a situation wherein employee leaves the organization due to job dissatisfaction, new
opportunity in the market, retirement etc.
The term ‘employee turnover’ and ‘attrition’ are used interchangeably. However, there is a difference in these
two terms. Turnover is a change in the workforce due to termination, resignation or layoff. On the other hand,
attrition is the gradual reduction in the work force through resignation, retirement and death. The major
difference between the two is that when turnover occurs, the company seeks someone to replace the employee.
In case of attrition, the employer leaves the vacancy unfilled or eliminates that job role.
Some of the reasons for attrition are:
 Inequality in compensation
 Limited career opportunities
 Mismatch of job profile
 Job stress and work-life imbalances
 Odd working hours / early morning – night shifts.

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 Monotony of job
 Organizational instability
 Raises and promotions frozen

4) Downsizing: In today’s competitive business environment, survival has

become very difficult for business organizations. Hence many organizations restructuring of their businesses in
order to reduce their costs of operations and to increase their productivity and efficiency. One of the ways of
organizational restructuring is downsizing.
In the context of HRM, downsizing refers to a process where an organization reduces its workforce in order to
cut the operating costs and improve efficiency. In other words, it means retrenchment of the staff.
Retrenchment is a painful decision which an organization may be compelled to take in order to survive.
However, in order to ensure the morale of the remaining employees is not adversely affected, it becomes
essential to manage downsizing properly.
Causes of Downsizing
 Cost Reduction
 Mergers
 Acquisitions
 Change in Management
 Economic Crisis
 Excessive Workforce
 Automation
 Outsourcing

5) Employee Absenteeism: Absenteeism takes place when employees remain

absent without prior permission from superiors. The absenteeism is employee’s intentional or habitual absence
from work. Excessive absences can lead to decreased productivity and can have a major effect on company
revenues and overall performance.
Absenteeism can be caused due to factors such as:
 Job Dissatisfaction
 High stress
 Ongoing Personal issues
 Depression
 Chronic illness
 Low morale

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 Harassment by co-workers
 Bereavement (Sorrow, grief)
 Lack of motivation

6) Work-Life Balance: A work-life balance refers to an employee’s ability to

maintain a healthy balance between their personal responsibilities, and family life. Work-life balance
encourages employees to divide their time on the basis of priorities and maintain a balance by devoting time to
family, health, vacation etc. along with making a career, business travel etc. It helps to motivate the employees
and increases their loyalty towards the company. It is a responsibility of HR manager to provide proper work-
life balance to the employees.

7) Dealing with Sexual Harassment at workplace: Sexual harassment at

workplace has become one of the biggest challenges before HR managers. Many people across the country
especially women still face sexual harassment in their workplaces.

While there are provisions under the Indian Penal Code (IPC) to address sexual harassment, not all instances of
sexual harassment can be covered in IPC. The sexual harassment cases are barely taken to employers or law
agencies, because women fear adversely affecting their career and work environment, especially when a senior
official is involved.

In 1997, the Supreme Court laid down guidelines in a judgement known as the Vishaka Guidelines. However,
those guidelines were never followed strictly either by the state organizations or by private organizations.
Organizations had a different stand on the guideline, and the need to address the issue at employer level
become extremely important.

In April 2013, the Parliament passed the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, for prevention of sexual harassment of women at the workplace. This Act has stronger
enforcement mechanism. The act imposes certain obligations on all employers, to ensure prevention sexual
harassment at the workplace.

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HUMAN RESOURCE PLANNING (HRP)

HRP or manpower planning is one of the crucial aspects of human resource management. It is the primary activity
of HRM. All HR activities start with HRP. In simple words, HRP is the process of getting the right number of
qualified people into the right job at the right time. From HRP 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.

HRP can be defined as “a process of predetermining future human resources needs and course of action needed to
satisfy those needs to achieve organizational goals.”

HUMAN RESOURCE PLANNING – STEPS

HUMAN RESOURCE PLANNING

HR Requirements Forecast HR Supply Forecast

Difference No Difference

No Action

HR Surplus HR Shortage

Take Action

1) Review of Organizational Objectives: The first step in HRP is to review the organizational objectives. The
objectives to be achieved in various areas such as production, marketing, finance, expansion and sales gives
the idea about the nature and type of work required to be done in the organization.

2) HR Requirement Forecast: The HR manager forecasts human resource requirements in terms of quantity
(number of employees) and quality (knowledge, attitude and skills) to undertake various activities.

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3) HR Supply Forecast: The HR manager forecasts the availability of manpower. The required manpower may
be available within the company, or they may be required to be hired from the labour market.

4) Comparison: The HR manager makes a comparison between HR requirement and HR supply, to find out the
required personnel is available or not.

5) No Difference: when human resource requirements are equal to human resource supply; there is any
difference. Therefore, there is no need to take any action.

6) Difference: The comparison may reveal differences between the human resource requirements and human
resource supply. There may be HR surplus or shortage. Action needs to be taken to deal with this. Eg. If there
is shortage, management may hire, provide overtime etc. If there is surplus, management may terminate, lay
off etc.

7) Motivating the Manpower: It is necessary to motivate employees by providing monetary and non-monetary
incentives. Motivation would enable the employees to put their best efforts to undertake the activities of the
organization.

FACTORS AFFECTING HRP

1) Management Philosophy: Management philosophy is a set of beliefs or rules used by managers to help them
make decisions. The management philosophy largely influences HRP in the organization. Organizations that
follow traditional management philosophy may not place much focus on HRP. However, organizations that
follow professional management philosophy give lot of importance to HRP. Professional management,
periodically compare human resource requirement with human resource supply and find out if any deviation is
there. Accordingly corrective measures are taken.
2) Growth and Expansion of Business: The business undertaking growth and expansion activities such as
introducing new product in the market, entering into new markets, joint venture, takeover, merger etc. requires
additional human resources. Therefore, there is a need for HRP, so as to recruit, select and train additional
manpower required for growth and expansion activity.
3) Quality of Human Resources: Nowadays, the quality of human resources is of utmost important to gain
competitive advantage in the market. The HR manager needs to analyse the quality of existing manpower. If
the existing quality of manpower is not upto the mark, the HRM manager must plan for suitable measures to
improve quality of manpower. Therefore, there is a need for HRP, so as to recruit, select and train quality
human resources in the organization.

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4) Corporate Image: The quality of manpower greatly contributes to enhance corporate image of the
organization. Organizations which enjoy good corporate image need to undertake periodic HRP. This helps in
selecting quality manpower as well as train and motivates them.
5) Competitive Advantage: Globalization has led to intense competition in each and every sector. Therefore,
organizations in various sectors need to be proactive and adopt professionalism to enjoy competitive advantage
by offering better services to their customers. To gain competitive advantage, organizations need to undertake
systematic HRP.
6) Employee’s Expectations: Nowadays, the expectations of competent employees are on the rise. They expect
right placement, adequate compensation package, avenues for promotion, freedom in decision making etc.
Therefore, HR manager need to undertake HRP to know these expectations of the employees and timely fulfill
it.
7) Technological Development: Introduction of new technology may make the existing workers redundant. New
technology may also require to provide training to employees to handle it. So HR manager need to undertake
HRP adapt with technological development.

HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Planning and control of human resources needs a sound information base. For efficient working of the human
resource department effective information system is very important. HRIS is a system (software) designed to
supply information to the human resource management, to help them in managing the people effectively and
efficiently.

HRIS is basically an intersection of HR and Information Technology through HR software. These days, many
organizations are making use of computer technology for implementing HRIS. HRIS is a customized software
solution designed for helping the organizations to automate and manage their HR, payroll, management and
accounting activities. It is computer based application for assembling and processing data related to HRM
function.

HRIS can be defined as “a computerized system that enables human resource managers to gather, organize, store,
update and retrieve the information needed for managing employees.” – Kleynhans.

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Importance of HRIS

1) Human Resource Planning: HRIS is used for human resource planning. It provides information about
organizational requirements of human resources. It also helps to forecast human resource supply. It facilitates
comparison between HR requirements and HR supply. In case of deviations, necessary actions can be taken.
Eg. If there is shortage of manpower, vacancies can be identified and employees can be hired thereon.

2) Human Relations: In any organization, there is a need to have healthy relations between the management and
the employees. HRIS information helps the management to design effective HR policies and to implement
healthy practices so as to develop good human relations throughout the organization.

3) Employee Information: HRIS helps in recording and storing information pertaining to employees such as
their personal details, qualities, skills, qualifications, performance etc. Such information is required in order to
take decisions related to human resources.

4) Recruitment: Information technology enhances many of the recruitment functions such as attracting
applications, pre-screening and processing of applications. Online job advertisements on corporate website,
online CV databases, different forms of electronic applications, applicant management system etc. support
recruitment processes.

5) Training: The HR department is responsible for organizing training session for its employees. Appropriate
training sessions are required on continuous basis to get improved performance of employees. HRIS helps in
maintaining information about the employees such as their skills, strengths, weaknesses etc. Accordingly
training sessions can be organized. Effective HRIS also helps in providing details about theh various training
programs organized, the areas covered in the training, the number of people who were provided the training,
the period for which the training was undertaken and so on.

6) Appraisal and Performance Management: HRIS maintains performance appraisal data of employees such
as the due date of the appraisal, potential for promotion, scores of each performance criteria etc. the textual
information can be combined with the factual data obtained from the HRIS and the combination of information
can be used for taking decisions regarding appraisals, incentives and promotions.

7) Reporting: the use of an HRIS system facilitates reports preparation and presentations. The HRIS provides
accurate and up-to-date information relating to human resources. Thus, the HRIS data can be used by HR
managers to prepare report relating to performance appraisal, compensating competent and loyal employees,
promotion of employees, transfer of employees etc.

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8) Attendance Record Management: HRIS is majorly used to keep the record of attendance of all employees,
their leaves-paid or non-paid, timely reporting etc. In many organizations, there are smart machines which
manage the attendance with a card swipe or a finger print reader. Attendance record is required to maintain
employee discipline as well as to take decisions regarding their promotion, appraisals etc.

9) Payroll Handling: Handling payroll is important task of the HR department. HR executives have to perform
this task every month on individual basis. HRIS provides information about employee attendance, his leaves,
overtime, various deductions and taxes and other aspects which effects his monthly salary and also preparation
of pay slips.

10) Administration of Employee Benefits: Organizations have benefit policies and programs for employees like
perks, special allowances, insurance, profit sharing and retirement benefits. HRIS helps in keeping track of
employees who are taking part in it and are actually eligible for these benefits.

JOB ANALYSIS
It refers to a process of collecting information about a job. The information collected related to the nature of job
and the qualifications and skills required for performing the job. Job Analysis is the starting point of the process of
recruitment and selection.

According to Edwin Flippo, “Job Analysis is the process of studying and collecting information relating to the
operations and responsibility of a specific job.”

There are two aspects of job analysis i.e. Job Description and Job Analysis. The requirements of job are known as
job description and the qualities required from the jobholder are termed as job specification.

Job Description Job Specification

 Job Title  Qualifications
 Job Location  Experience
 Job Summary  Training
 Reporting to  Skills
 Working Conditions  Responsibilities
 Job Duties  Emotional characteristics
 Machines to be used  Sensory Demands
 Hazards

Components of Job Analysis

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I) Job Description: It gives details of the job in respect of job title, duties and responsibilities, location of
the job, working conditions, and other relevant details about the job. It is an overall summary of job
requirements.

According to Edwin Flippo, “Job description is an organized factual statement of the duties and responsibilities
of a specific job. It should tell what is to be done, how it is done and why.”

The content of job description are as under:

1) Job Title: It explains the title of the job. It means, what the particular job is all about is identified.
2) Job Location: It refers to the place where job is to be performed i.e. in which department.
3) Job Summary: It describes the contents of the jobs in terms of activities or tasks to be performed. It is a
statement which explains what the job requires.
4) Duties and Responsibilities: This is an important phase of job description. It describes the duties to be
performed. Responsibilities concerning custody valuables and records, supervision and training of staff etc. are
also described.
5) Machines, Tools and Material: It states the type of machines, tools and material required in the performance
of the job.
6) Working Conditions: It defines working conditions in terms of heat, light, noise level etc. Job hazards are
also mentioned.
7) Nature of Supervision: The nature of supervision on each job is also mentioned. There are certain jobs like
unskilled jobs which require close supervision while other jobs like skilled or supervisory or managerial jobs
require less supervision.
8) Relation to other jobs: It indicates relationship of the job with other jobs of the organization. It also indicates
to whom the job holder has to report and who will report to him.

II) Job Specification: It is a written statement of qualifications, traits, physical and mental characteristics that
an individual must possess to perform the job duties and discharge responsibilities effectively. It is an
overall summary of employee requirements to perform the job effectively.

According to Edwin Flippo, “Job Specification is a statement of minimum acceptable human qualities necessary
to perform a job properly.”

The content of job specification are as under:

1) Physical Characteristics: This includes height, weight, vision, hearing, fitness, health, physical stamina,
capacity to use or operate machines, tools, equipment etc.

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2) Mental Characteristics: This includes general intelligence, memory, judgment, foresight, ability to
concentrate, analytical and logical reasoning, creativity etc.
3) Personal Characteristics: Such as age, gender, education, job experience, personality, communication skills,
leadership qualities, conceptual skills etc.
4) Social and Psychological Characteristics: such as emotional ability, human skills, flexibility, social
adaptability in human relationship etc.

PSYCHOLOGICAL AND BEHAVIOURAL ISSUES IN HRP

1) Compensation Issues: Compensation includes salary, bonus and other incentives. The manager must make an
attempt to motivate employees by providing them monetary and non-monetary incentives. An organization
need to provide individual incentives as well as group incentives. If the employee is provided with individual
incentives, then their team spirit may get affected, and if employee is provided with group incentives, then, the
individual performance of the employee may get affected. Also, the employees may not be satisfied when they
are provided with non-monetary incentives, when they require monetary benefits.
2) Leadership issues: Managers need to be good leaders. To be a good leader, the manager must understand,
lead and guide their subordinates to perform organizational tasks. The manager must possess certain leadership
qualities such as pleasing personality, intelligence, innovative, discipline, patience etc.
3) Training and Development Issues: The managers must identify the right employees for training and
development. A proper training schedule should be prepared and implemented. Hence, the trainees will not
develop a casual approach towards training. Training provided to the employees should be objective. The
employees should not be forced to undergo training program as it may affect their self-confidence.
4) Transfer issues: Transfer involves movement of employees from one department to another or one branch to
another or one area to another. Transfer should take place in the interest of the employer as well as employee.
Transfer should not be forced or else it may have a depressing effect on employees.
5) Promotion issues: Promotion refers to upward movement of employees from present position to higher
position along with increment in pay and responsibilities. Promotion policies should be fair and objective. A
proper decision must be taken regarding promotion on the basis of merit or on the basis of seniority. If
promotion is done on the basis of merit, then the senior employees may feel that their loyalty is not rewarded.
On the other hand, if promotion is done on the basis of seniority, then hardworking employees may feel that
their efforts and performance are not rewarded.
6) Placement issues: Placement refers to fitting the right person at the right job. HR manages must take proper
placement decisions. Proper placement brings job satisfaction to the employees and enhances employee
efficiency.

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7) Issues relating to Performance Appraisal: Performance appraisal refers to evaluating performance of

employees in terms of their strengths and weaknesses. Performance appraisal reports of the employees should
be free from biasness and subjectivity. It should help to consolidate the strengths and correct the weaknesses of
the employees. It should not be mere fault-finding exercise. Nowadays, most of the organizations conduct 360 0
appraisal so that the appraisals are conducted objectively.
8) Career Development issues: Career development refers to deciding career plans of employees and helps them
to achieve them. The employer can plan the career of employees within organization by considering long range
plans for the organization. Career development programme motivates employees and it includes promotion
opportunities, training and development, providing challenging tasks to employees etc.

RECRUITMENT
It is the process of searching candidates for employment and stimulating them to apply for jobs in the organization.
It is the process of bringing together those who are offering jobs and those who are seeking jobs. It is a process
where a pool of prospective employees is created and the management selects the right person for the right job
from this pool. It provides a base for the selection process.

According to Edwin Flippo, “Recruitment is the process of searching for prospective employees and stimulating
them to apply jobs in the organization.”

FACTORS AFFECTING RECRUITMENT PROCESS

A) INTERNAL FACTORS
1) Size of the organization: A multi-divisional organization requires large number of employees. They require a
systematic and effective recruitment process to hire right candidate.
2) Recruitment Policy: Every organization has recruitment policy. As per the recruitment policy, new employees
are hired in an organization. The policy may be related to
 Preference for women workforce
 Preference for internal and external source of recruitment
 Skills of employees for a particular job type
3) Corporate Image: An organization that enjoys good corporate image would be in position to attract best
employees.
4) Hiring Costs: Hiring cost involves advertisement cost, employment test and interview cost, training and
development cost. The organization must consider the recruitment process which will bear a lower cost of
recruitment and hire the most suitable candidate.

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5) Management Philosophy: If the management follows traditional philosophy, then the organization may prefer
to recruit employees within the organization. However, if the management follows, professional philosophy,
the employees may be recruited from external sources, by following a proper selection procedure.

B) EXTERNAL FACTORS
1) Competitors: As the competition intensifies in the market, so the demand for competent employees also
increases. Many a times, the organizations have to change their recruitment policies according to the
recruitment policies adopted by their competitors.
2) Suppliers of Labour: It includes employment exchange, educational institutions (campus recruitment),
consulting firms, and others. They play important role in supplying the right type of employees as required by
the organization. For this purpose the organization must have suitable polices to recruit, select and compensate
the right type of employees.
3) Government Policy: Recruitment policy of the organization may also be affected by the government policies.
As per government policy, certain seats are reserved for backward castes, especially in government
organizations.

ROLE OF RECRUITMENT AGENCIES

Recruitment agencies are search firms that maintain computerized data of qualified applicants and supplies to
employers who are willing to select the prospective employees. The recruitment agencies charge fees for their
services. The role of recruitment agencies is explained as follows:
1) Human Resource Information: Recruitment agencies have a list of human resources seeking for jobs. This
list has all possible information about the applicants. This list is provided by the agencies to the organization.
2) Assists in Human Resource Planning (HRP): Recruitment agencies help in the process of identifying human
resource requirements in terms of quality and quantity. They may help pin forecasting personnel requirements
and personnel supply in an organization.
3) Recruitment: Recruitment agencies enable the organization to determine proper sources of recruitment. The
sources of recruitment includes
 Internal Sources: Internal ads, promotions, recall retired employees, Transfer etc.
 External Sources: Campus recruitment, advertisements, recommendations etc.
4) Testing and Interviewing: Some of the recruitment agencies may undertake testing and interviewing of the
candidates on behalf of the organization. This helps to save a lot of time and efforts of the organization.
5) Placement: Recruitment agency also helps in placing the right employee at the right job. This provides job
satisfaction to the employee.

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6) Performance Appraisal: Sometimes, the recruitment agencies conduct performance appraisal of the
employees on behalf of the organization. The agencies evaluate the performance of employee and convey the
employee strengths and weaknesses to the organization.
7) Training: Recruitment agencies may also conduct training programmes for the employees in order to:
 Impact knowledge
 Develop attitude
 Develop skills
 Develop social behavior

ONLINE SELECTION PROCESS

1) Job Analysis: The 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. Proper job analysis helps to advertise the job
properly with reference to duties, salary, qualifications, experience and so on. Accordingly right candidates
may apply for the job.
2) Advertising the job: Based on job analysis, the HR department publishes advertisement about the job in
media such as newspapers, internet and social media. The advertisement conveys details about the job and the
requirements of candidates.
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 the following:
 Personal details
 Educational qualifications
 Work experience
 Family background
 Reference etc.
4) Online tests: The application which have been received are scrutinized by the HR department and a final list
of candidates for online tests are prepared. The purpose of such tests is to judge the ability, intelligence,
capacity and efficiency of the candidates. The type of test depends upon the nature of job. Some of the tests
include:
 Intelligence test
 Aptitude test
 Personality test
 Performance test
 Stress test

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5) Online Interview: Candidates who have successfully cleared the test are asked for online interview. The
online interview can be conducted through networking sites such as Google meet, Zoom, Skype etc. . The
interviewee can be interviewed by a panel of experts or by a senior executive. The main objectives of
interviewing are:
 To measure the applicant against the specific requirements of the job.
 To find out the suitability of the candidate.
 To seek more information about the candidate.
6) Reference check: Before the final selection, reference check is done of the prospective candidate. The
candidate is asked to give the name and address of the former employer and also of two or three persons
known to the candidate but not related to him. These references help to cross check the information provided
by the candidate.
7) Personal Interview: A few short listed candidates may be asked to give personal interview. In the personal
interview, interviewer personally interacts with the interviewee. In the personal interview the interviewers can
find out whether or not the candidate is seriously interested in the job. At this stage salary and other perks may
be negotiated.
8) Medical examination: The candidates who have successfully cleared the interview are asked to go for
medical examination. The purpose of medical examination is to judge the general health and physical fitness of
the candidate. Candidates who are not physically fit for the job are rejected.
9) Job offer: This is the most crucial and final step in selection process. A wrong selection of a candidate may
affect the goodwill of the organization for several years. A company should make a very important decision to
offer right job to the right person.

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