Notes

20MS3012 HUMAN RESOURCE MANAGEMENT
I MBA (CREDITS 3.:1:0)
MODULE 2: HR Planning, Recruitment & Selection

➢ Human Resource Planning:
➢ Sources, Process, Methods
➢ Job Analysis Process
➢ Job Design Approaches
➢ Job Evaluation Methods
➢ Recruitment
➢ Factors, Methods, Process
➢ Selection
➢ Process , Selection Techniques, Selection Decision, Induction.
By
V. LAWRANCE., M.E., M.B.A., B.G.L., D.L.L., F.I.E.,
Professor in Management Studies
Karunya University
Coimbatore- 641 114
V. Lawrabnce., Professor in Managementb Studies., karunya
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Human Resource Planning
What is planning?
➢Plans are methods for achieving a desired result. Goals or objectives are specific results
you want to achieve.
➢Planning is thus “the process of establishing objectives and courses of action prior to
taking action.”
➢Planning provides a sense of purpose and direction.
➢It is a comprehensive framework for making decisions in advance. It also facilitates the
organizing, leading, and controlling functions of management.
➢Planning also helps identify potential opportunities and threats, and facilitates control. It is
concerned with the end (what is to be done) as well as with means (how it is to be done).
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Human Resource Planning (HRP) : Definition
➢It may be defined as strategy for acquisition, utilization, improvement and preservation of
the human resources of an enterprise.
➢The objective is to provide right personnel for the right work and optimum utilization of
the existing human resources. HRP exists as a part of the planning process of business.
➢This is the activity of the management which is aimed at co-ordinating requirements for
and the availability of different types of employers.The major activities of HRP include:
✓Forecasting (future requirements),

✓Inventorying (present strength),
✓Anticipating (comparison of present and future requirements)
✓Planning (necessary programme to meet future requirements).
Contd…
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Human Resource Planning (HRP)
Human resource planning has been defined by various authorities on this subject as under:
Human resources planning is the process by which management ensures that it has the right
personnel, who are capable of completing those tasks that help the organization reach its
objectives. It involves the forecasting of human resources needs and the projected matching of
individuals with expected vacancies. --International Labour Organization
According to Coleman, "Manpower planning is the process of determining manpower

requirements and the means for meeting those requirements in order to carry out the integrated
plan of the organisation".

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Human resource planning has been defined by various authorities on this subject as under:
According to Jeisler, "Manpower planning is the process including forecasting, developing

and controlling— by which a firm ensures, it has the right number of people and the right
kind of people and at the right places at the right time doing things for which they are
economically most useful“
According to Dale S. Beach, "Human resource planning is a process of determining and

assuring that the organisation will have an adequate number of qualified persons, available at
the proper times, performing jobs which meet the needs of the enterprise and which provide
satisfaction for the individuals involved."

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According to Wickstron, "Human resource planning consists of a series of activities viz.:
➢Forecasting future manpower requirement either in term of mathematical projection of
trends in the economic environment and development in industry or in term of
judgmental estimates based upon the specific future plans of a company.
➢Making an inventory of present manpower resources and assessing the extent to which
these resources are employed optimally.
➢Anticipating manpower problems by projecting present resources into the future and
comparing them with the forecast of requirements to determine their adequacy, both
quantitatively and qualitatively; and
➢Planning the necessary programs of recruitment, selection, training, development,

transfer, promotion, motivation and compensation to ensure that future manpower
requirements are properly V.met.
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Lawrabnce., Professor in Managementb Studies., karunya
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The need and importance of HRP in the organizations
1. Assessing Future Personnel Needs:

2. Foundation for Other HRM Functions:
3. Coping with Change:
4. Investment Perspective:
5. Expansion and Diversification Plans:
6. Employee Turnover:
7. Conformity with Government Guidelines:
8. International Expansion Strategies:
9. Having Highly Talented Manpower Inventory:

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1. Assessing Future Personnel Needs:
➢Whether it is surplus labour or labour shortage, it gives a picture of defective planning

or absence of planning in an organization.
➢A number of organizations, especially public sector units (PSUs) in India are facing the
problem of surplus labour.
➢It is the result of surplus labour that the companies later on offer schemes like Voluntary
Retirement Scheme (VRS) to eliminate surplus staff.
➢Thus, it is better to plan well about employees in advance. Through HRP, one can
ensure the employment of proper number and type of personnel.

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2. Foundation for Other HRM Functions:
➢HRP is the first step in all HRM functions. So, HRP provides the essential information
needed for the other HRM functions like recruitment, selection, training and
development, promotion, etc.
3. Coping with Change:
➢Changes in the business environment like competition, technology, government

guidelines, global market, etc. bring changes in the nature of the job.
➢This means changes in the demand of personnel, content of job, qualification and
experience needed. HRP helps the organization in adjusting to new changes.

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4. Investment Perspective:
➢As a result of change in the mindset of management, investment in human resources is

viewed as a better concept in the long run success of the enterprise.
➢Human assets can increase in value as opposed to physical assets. Thus, HRP is
considered important for the proper planning of future employees.
5. Expansion and Diversification Plans:

➢During the expansion and diversification drives, more employees at various levels are
needed.
➢Through proper HRP, an organization comes to know about the exact requirement of
personnel in future plans.
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6. Employee Turnover:
➢Every organization suffers from the small turnover of labour, sometime or the other. This
is high among young graduates in the private sector.
➢This necessitates again doing manpower planning for further recruiting and hiring.
7. Conformity with Government Guidelines:

➢In order to protect the weaker sections of the society, the Indian Government has
prescribed some norms for organizations to follow.
➢For example, reservations for SC/ST, BC, physically handicapped, ex-servicemen, etc. in
the jobs.
➢While planning for fresh candidates, HR manager takes into consideration all the
Government guidelines.

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8. International Expansion Strategies:
➢International expansion strategies of an organization depend upon HRP. Under
International Human Resource Management (IHRM), HRP becomes more challenging.
➢An organization may want to fill the foreign subsidiary’s key positions from its home
country employees or from host-country or from a third country.
➢All this demands very effective HRP.
9. Having Highly Talented Manpower Inventory:

➢Due to changing business environment, jobs have become more challenging and there is
an increasing need for dynamic and ambitious employees to fill the positions.
➢Efficient HRP is needed for attracting and retaining well qualified, highly skilled and
talented employees.

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Human Resource Planning – Objectives
1. Proper assessment of human resources needs in future.
2. Anticipation of deficient or surplus manpower and taking the corrective action.
3. To create a highly talented workforce in the organization.
4. To protect the weaker sections of the society.
5. To manage the challenges in the organization due to modernization, restructuring and
re-engineering.
6. To facilitate the realization of the organization’s objectives by providing right number
and types of personnel.
7. To reduce the costs associated with personnel by proper planning.
8. To determine the future skill requirements of the organization.
9. To plan careers for individual employee.
10. Providing a better view of HR dimensions to top management.
11. Determining the training and development needs of employees.

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Human Resource Plan – Factors (Sources)
External Factors (Sources):
1. Government Policies – Policies of the government like labour policy, industrial relations
policy, policy towards reserving certain jobs for different communities and sons-of the soil,
etc. affect the HRP.
2. Level of Economic Development – Level of economic development determines the level of
HRD in the country and thereby the supply of human resources in the future in the country.
3. Business Environment – External business environmental factors influence the volume and
mix of production and thereby the future demand for human resources.
4. Level of Technology – Level of technology determines the kind of human resources
required.
5. International Factors – International factors like the demand for resources and supply of
human resources in various countries.
6. Outsourcing – Availability of outsourcing facilities with required skills and knowledge of
people reduces the dependency on HRP and vice-versa.
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V. Lawrabnce., Professor in Managementb Studies., karunya Contd…
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Human Resource Plan – Factors:
Internal Factors (Sources):
1. Company policies and strategies – Company policies and strategies relating to expansion,
diversification, alliances, etc. determines the human resource demand in terms of quality
and quantity.
2. Human resource policies – Human resources policies of the company regarding quality of
human resource, compensation level, quality of work-life, etc., influences human resource
plan.
3. Job analysis – Fundamentally, human resource plan is based on job analysis. Job
description and job specification determines the kind of employees required.
4. Time horizons – Companies with stable competitive environment can plan for the long run
whereas the firms with unstable competitive environment can plan for only short- term
range.
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V. Lawrabnce., Professor in Managementb Studies., karunya Contd….
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Human Resource Plan – Factors:
Internal Factors (Sources):
5. Type and quality of information – Any planning process needs qualitative and accurate
information. This is more so with human resource plan; strategic, organisational and
specific information.
6. Company’s production operations policy – Company’s policy regarding how much to

produce and how much to buy from outside to prepare a final product influence the number
and kind of people required.
7. Trade unions – Influence of trade unions regarding number of working hours per week,
recruitment sources, etc., affect the HRP.

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Human Resource Planning at Different Levels:
1. National level – Generally, government at the centre plan for human resources at the
national level. It forecasts the demand for and supply of human resource, for the entire
nation.
2. Sector level – Manpower requirements for a particular sector like agricultural sector,
industrial sector or tertiary sector are projected based on the government policy, projected
output/operations, etc.
3. Industry level – Manpower needs of a particular industry like cement, textiles, chemical
are predicted taking into account the output/operational level of that particular industry.
4. Unit level – This covers the estimation of human resource needs of an organisation or
company based on its corporate/business plan
Contd…..
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Human Resource Planning at Different Levels:
5. Departmental level – This covers the manpower needs of a particular department in a

company.
6. Job level – Manpower needs of a particular job family within department like Mechanical
Engineer is forecast at this level.
7. Information technology – The impact of information technology on business activities,

human resource requirement and human resource plan is significant. It requires multi
skilled experts, preferably less in number.

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The Human Resource Planning Process

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1. Forecasting the supply of Human Resources:
➢Predicting the availability of current or potential employees with skills, abilities, and
motivation to perform jobs that the organization experts are available
➢Several mechanisms can help managers forecast the supply of Human Resources in
regard to current employees.
➢Organization is likely to be able to draw on considerable historical data about its own
ability to hire and retain employees
➢In addition the organization can collect information about the extent to which people
leave their jobs voluntarily or involuntarily
➢Important element in HR Planning Process is Human Resource Information System

(HRIS)-An Integrated and increasingly automated system for maintaining a database
regarding
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the employees inV.an organization.
Lawrabnce., Professor in Managementb Studies., karunya Contd…
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1. Forecasting the supply of Human Resources:
➢It is also important to forecast the supply of human resources outside the firm that will be
potentially available for it to recruit and hire.
➢Labor Force Trends and Issues:
✓Increasing workforce diversity
✓Gradual increase in average age of the workforce(more productive, retirement age

increased/dropped remain in workforce)
✓Entry of more women into the workforce
✓Improved health and medical care allow people to be productive for longer periods of
their lives.
✓Mandatory retirement ages have been increased or dropped altogether

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2. Forecasting the demand for Human Resources:
➢HR Managers must also develop forecasts about future demand.
➢One Important ingredient in this assessment is the Organization's own growth , stability,
or decline.
➢General demand trends influence the availability of human resources.
➢Employees for jobs in high demand will be more difficult to hire and more expensive
to hire.
➢Students and future employees who track these demand trends often make decisions
about what majors to pursue in college based on their anticipated employability.
➢The planning process and the associated forecasting and supply and demand relative to
labour is important source for the HR manager.
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METHODS OF Human Resource Planning
Human Resource Process requires thinking related to future, which is full of
uncertainty. To plan for the future uncertainties, HR Managers need to use both
Qualitative and Quantitative techniques.
I. Qualitative Techniques:
1. Scenario Planning
2. Critical Incidence Technique
3. Delphi Technique
4. Nominal Group technique
II. Quantitative Techniques:
1. Time Study
2. Work Sampling
3. Ratio Analysis
4. Markov Chain Analysis
5. Regression Analysis

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I.1.Scenario Planning:
➢Scenario planning is making assumptions on what the future is going to be and how your
business environment will change overtime in light of that future.
➢For example, Farmers use scenarios to predict whether the harvest will be good or bad,
depending on the weather. It helps them forecast their sales but also their future
investments.
➢Scenario planning aims to define your critical uncertainties and develop reasonable
scenarios in order to discuss the impacts and the responses to give for each one of them.
➢If you are aware of what could happen, you are more likely to deal with what will
happen.

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I.1.Scenario Planning:
The process to create scenarios is as follows.
1. Identify your driving forces:
➢To begin with, you should discuss what are going to be the big shifts in society,
economics, technology and politics in the future and see how it will affect your company.
2. Identify your critical uncertainties:
➢Once you have identified your driving forces and made it a list, pick up only two (those
that have the most impact on your business).
3.Develop a range of plausible (reasonable) scenarios:
➢Depending on what direction each of the uncertainties will take, you are now able to draw
four possible scenarios for the future.
4.Discuss the implications:
➢During this final step, you should discuss the various implications and impacts of each
scenario and start to reconsider your strategy: set your mission and your goals while
taking into account every scenario.
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I.2.Critical incident technique:
➢Here the respondents are asked open ended questions
➢For Example a job incumbent might be asked: Take me through some incidents in your
work life when you felt extremely happy about the job or please narrate some incidents
when you felt extremely sad about your work.
➢Based on Job incumbents’ narration of the stories, the critical dimensions of the job can
come out.
➢For example, a clerk in the office library may narrate that she felt extremely happy about
her job when her supervisor gave her task for research on how many ways record keeping
can be done and she could present findings in the department meeting.
➢For enriching the job of a record keeper, this critical incident can serve as a input.
➢This method can be used with supplies, and customers as well to understand the critical
issues of the organization V. Lawrabnce., Professor in Managementb Studies., karunya
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I.2.Critical incident technique has the following steps.
1. We start with determining and reviewing the incidents that have taken place during the
course of the job
2. Fact finding which involves gathering information of the incident from the members.
3. The third step is to analyze the facts and the data collected by the interviewer from the
participants and determine the issues
4. The fourth step is to determine possible solutions for the issues that have been identified

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I.2.Advantages of Critical Incident Technique
1. Helps to identify rare events which might be missed by other methods as they focus only
on common events.
2. The technique is cost effective and provides rich information
3. The respondent’s perspective is taken into account
4. The respondents are not forced into any framework
5. Many ways to implement the technique like observation, questionnaires and interviews

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I.2.Disadvantages of Critical Incident Technique
1. Many incidents may go unreported or might not be precise as the reporting of incidents
relies on memory of the respondent.
2. Biasness might creep in towards the incidents that happened recently.
3. The incidents narrated may not be representative of everyday situation that takes place
during the job.

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I. 3.Delphi technique:
➢Delphi technique is based on the principle that forecasts (or decisions) from a structured
group of individuals are more accurate than those from the unstructured group.
➢In the Delphi technique, a panel of relevant people is chosen to address an issue. It
facilitates group decision making.
➢Experts are chosen on the basis of their knowledge of internal factors that might affect a
business (e.g., projected retirement), their knowledge of the general business plans of
the organization, knowledge of the external factors that might affect demand for the
firm’s product and service and hence its internal demand for labor.
➢Experts may range from first-line supervisors to top-level managers. Sometimes,

outside experts are also used.
Contd…
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I. 3. Delphi technique:
➢The main objective of the Delphi technique is to predict future developments in a
given area by integrating the independent opinions of experts.
➢Face-to-face group discussion among the experts is avoided to eliminate criticism and
compromise on good ideas.
➢To avoid these problems, an intermediary is used. The job of the intermediary is to
pool, summarize and then feedback to the experts the information generated
independently by all the other experts during the first round of forecasting.
➢The cycle is then repeated so that the experts are given the opportunity to revise their
forecasts and the reasons behind their revised forecasts.

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I. 3. Delphi technique:
The following are the key characteristics of the Delphi method: the anonymity of the
participants, structuring of information flow, regular feedback and the role of the facilitator.
Guidelines to make the Delphi process most useful:
➢Give the experts enough information to make an informed judgment.
➢Do not require precision.
➢Keep the exercise as simple as possible.
➢Be sure that the classification of employees and other definitions are understood in the
same way by all experts.
➢Enlist top management’s an expert’s support of the Delphi process by showing how good
forecasts will benefit the organization and how they will affect profitability and
workforce productivity.

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3. Delphi technique:
Benefits:
a) Elimination of interpersonal problems among panelists,
b) Efficient use of experts’ time,
c) Adequate time for reflection & analysis by respondents,
d) Diversity & quantity of ideas generated and
e) Accuracy of predictions & forecasts made.
Limitations:
a) The degree of uncertainty is so great that exact and always correct predictions are
impossible, so a high degree of error is to be expected.
b) Future developments are not always predicted correctly by the consensus of the experts.
c) Inability of the experts to make complex forecasts with multiple factors.

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I.4. Nominal Group Technique
The major difference between Delphi Method and Nominal Group Technique (NGT) is that
here experts’ meet face to face.
➢Individuals are brought together & presented with a problem.
➢They develop solutions independently, often writing them on cards.
➢Their ideas are shared with others in a structured format,
➢Brief time is allotted so that questions can be asked – but only for clarification ask the
kinds of questions a unit manager can answer.
➢Group members individually designate their preferences for the best alternatives by
secret ballot.
➢The
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I. 4. Nominal Group Technique
Advantages :
➢There is an opportunity for equal participation by all members. Participation is broad, not
limited to a few powerful members.
➢It allows tighter control of time. Thus, it quickens the decision-making process. It is a
time-saving process.
➢A single member cannot dominate in the decision process. There is little chance of
occurring group thinking.
➢Because of wider participation, members can come up with new ideas.
Disadvantages:
➢Group members are frustrated by the rigidity of the procedure,
➢Gain no feelings of cohesiveness,
➢Do not have the opportunity to benefit from the cross-fertilization of ideas.
➢The success of the nominal technique depends on each member’s capacity.
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II. Quantitative Techniques:
1. Time Study
2. Work Sampling
3. Ratio Analysis
4. Markov Chain Analysis
5. Regression Analysis

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II.1.Time Study:
➢The objective of time study is to establish standard time for jobs.
➢Once standard time gets set workers can no more change the time standard till through
another time study a new time standard gets set.
➢This standard time can further be linked to the workers’ pay.
➢For setting standard time HR professionals need to collaborate with industrial engineers
who have considerable exposure of time study and motion study.

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II.1.Time Study :Steps in making a time study
1. Obtaining and recording all the information available about the job, the operative and the
surrounding conditions, which is likely to affect the carrying out of the work.
2. Recording a complete description of the method, breaking down the operation into
"elements".
3. Examining the detailed breakdown to ensure that the most effective method and motions
are being used, and determining the sample size.
4. Measuring with a timing device (usually a stop-watch) and recording the time taken by the
operative to perform each "element" of the operation.
5. At the same time, assessing the effective speed of working of the operative relative to the
observer's concept of the rate corresponding to standard rating.
6. Extending the observed times to "basic times“
7. Determining the allowances to be made over and above the basic time for the operation.
8. Determining the "standard time" for the operation.
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Example of Time study ALLOWANCE FACTOR
Performance
Activity 1 2 3 4 5 Rating
Task A 7 5 6 28 8 130%
Task B 4 3 4 5 3 90%
Task C 3 2 13 2 3 120%
1. Average Cycle Time

2. Normal Time
Task A 6.5
Task A 8.45
Task B 3.8 Task B 3.42
Task C 2.5 Task C 3
3. Total Normal Time 14.87

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II.2. Work Sampling:
➢Developed by L.Tippet.
➢This method estimates percentage of time an operator spends on different tasks.
➢Knowing the percentage of time spent on various activities, organization can redesign the
work, or make different work allocation for a worker.
➢Like time study here also number of observations required for the work sampling needs
to be determined with statistical sample size estimation.
➢It should be random observations done without interrupting the operator.

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Example of Work Sampling
Activity No of observations
Client Meeting 59
Discussions with client over phone 45
Personal Time 34
Filing, Data Entry 23
Bill processing 19
Idle 40
Total observation 220
Overall he is idle 74 times (40 idle and 34 personal time) which is 33.64% (=74/220).
Management decide underutilized or over utilized
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II.3 RATIO ANALYSIS:
➢RATIO between output & manpower deployed to achieve that output is established at a
given point of time
➢(Eg., revenue per employee, sales vol. per salesperson, service contract per engineer,
units produced per employee, etc.,)
➢Historical ratio between:

✓Some causal factor (sales volume)
✓No. of employees required (number of salesperson)

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Ratio Analysis
Through simple ratio analysis, future prediction of manpower can be done.
Year Sales ('0000) Number of employees Ratio [Sales per employee]
2015 1230 155 7.94
2016 1720 171 10.06
2017 1908 166 11.49
2018 1727 105 16.44
Example of Ratio
V. Lawrabnce., Analysis
Professor in Managementb Studies., karunya
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II.4. REGRESSION ANALYSIS
➢Drawing a statistical comparison of past relationship among variables
✓Statistical relationship between no. of patients (business factor) & employment
✓level of nurses in a nursing home may be useful in forecasting the no. of employees that
will be needed if the no. of patients increases by say 20%
LINEAR REGRESSION ANALYSIS

➢Relationship between two variables which is directly & precisely proportional
✓Production output & manpower are the two variables & the relationship between these
two is plotted on a graph by drawing a “line of best fit”
➢Analysis aims at providing a measure of the extent to which changes in the values of two
variables are correlated with one another

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REGRESSION ANALYSIS
• Drawing a statistical comparison of past relationship among variables
Statistical relationship between no. of patients (business factor) & employment
level of nurses in a nursing home may be useful in forecasting the no. of employees
that will be needed if the no. of patients increases by say 20%
LINEAR REGRESSION ANALYSIS
• Relationship between two variables which is directly & precisely proportional
Production output & manpower are the two variables & the relationship between
these two is plotted on a graph by drawing a “line of best fit”
• Analysis aims at providing a measure of the extent to which changes in the values of two
variables are correlated with one another

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II.5. MARKOV CHAIN ANALYSIS
➢Markov Chain analysis uses transition probability matrix to make future predictions.
➢For preparing the transition probability matrix two time periods need to be chosen.
➢These chosen time periods should be such where business runs in an usual way, and there
are not such external disturbances which can make the business situation unstable.
➢The time gap between these two periods should not be too long, since we are interested to
note the changes that took place in between these two periods, which will serve as a
template for modeling future changes

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Table : Employee Transfer between different levels during a period. (2011/2012)
The Organisation has 4 hierarchical levels. How many employees have moved
from one level to another needs to be ascertained first may be due to – Promotion,
demotion, losses ( death, retirement, terminations)
2011/ 2012 Level 4 Level 3 Level 2 Level 1 Losses Total
Level 4 45 14 2 0 11 72
Level 3 2 22 13 1 7 45
Level 2 0 0 23 9 1 33
Level 1 0 0 0 5 1 6
Total 47in
V. Lawrabnce., Professor 36 38 15 20
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Table : Estimated Transition Probability Matrix
Probability of stay back in level 4 = 45/72=0.63

Probability of stay back in level 3 = 14/72=0.19
2015/ 2016 Level 4 Level 3 Level 2 Level 1 Losses
Level 4 0.63 0.19 0.03 0.00 0.15
Level 3 0.04 0.49 0.29 0.02 0.16
Level 2 0.00 0.00 0.70 0.27 0.03
Level 1 0.00 0.00 0.00 0.83 0.17
V. Lawrabnce., Professor in
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Table 3.5 c. Number of employees in 2017
Levels No of employees
Designation wise no of employees in 2017 – based on
our transition probability matrix we can predict level
Level 4 80
wise what would be the manpower situation in 2018.
Level 3 50
Level 2 38
Table3.5 d. Employee Forecast for 2018
Level 1 8
Levels Level 4 Level 3 Level 2 Level 1 Losses Total
Level 4 50 16 2 0 12 80
Level 3 2 24 14 1 8 50
Level 2 0 0 26 10 1 38
Level 1 0 0 0 7 1 8
V. Lawrabnce., Professor in
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Succession Planning
➢Through performance appraisal system companies generally identify who are the key
performers.
➢Coaching and Mentoring play a vital role in developing the successors.
➢Special assignments are given to managers so that they can quickly pick up key
responsibilities.
➢Identification of successor is made part of the key result area (KRA) of some of the
managers.
➢(For companies like Colgate Palmolive high performers are put in different countries
so that they can get adequate exposure of overall customer demographic and enhance
their relevant skill.)
➢Creating forum so that juniors can debate, discuss, put forth their viewpoints go a long
way in developing worthy successors.

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Succession Planning
Generally companies do not declare the successor much beforehand since:
➢The declaration may kill healthy competitions amongst key performers.
➢Second, the successor will be subject to poaching where competitors may lure the
successor with a better offering.
➢Third, the future is always uncertain.
➢Lastly there is a fear that internal political dynamics of the organization may create
unnecessary pressure for the declared “crown prince”, which will not let the
announced successor to perform at his/her best.

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Succession Planning
➢Axis bank – Mr. Nayak – CEO – pillar of success – no succession plan – mention no name-
RBI suggested splitting CEO – chairman & MD – resisted by Nayak – COO – resigned –
RBI could do nothing – stay as non executive chairman – appoint CEO – but not accepted
by Nayak. No internal so external – Ms. Shikaha SharmA – Nayak recorded dissent by not
voting. Though Nayak brought success failed in succession planning.
➢L&T – Mr. Manibhai Naik – Chairman & MD – age to 70 – another 5 yrs – to address
succession challenges – split – Venkataramanan – CEO & MD – Naik stepped down –
Executive chairman of the company – Shows failure of L&T in addressing succession
challenges.
➢GE Jack Welch – ready – succession planning part of HR strategy – star performers
identified – 3 names before retirement – Jeff Immelt – successor to Jack – James – 3M

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Leadership Pipeline
There are critical skills required at each of the six transitory stages:
✓Passage One (From managing self to managing others)

✓Passage Two (From managing others to managing managers)
✓Passage Three (From managing managers to functional managers)
✓Passage Four (From functional manager to business manager)
✓Passage Five (From business manager to group manager)
✓Passage Six (From Group Manager to Enterprise Manager)

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Leadership Pipeline
1. Passage One (From managing self to managing others)
➢When an employee having sound technical knowledge after few years of work
experience gets a promotion s/he may encounter this stage.
➢Instead of working independently the manager needs to do collaborative work.
➢Skills required for the manager to successfully move from this passage include
meticulous planning of work, assigning work responsibilities to others, motivating
and coaching others (particularly subordinates).

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Leadership Pipeline
2. Passage Two (From managing others to managing managers)
➢This stage is different from the first stage since now it entails managing “managers”
who are colleagues rather than subordinates.
➢Once the manager takes bigger responsibility than the prior stage, now the skills
required would include selecting and managing other potential leaders, measuring
other managers’ progress, making other managers accountable for their work.

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Leadership Pipeline
3. Passage Three (From managing managers to functional managers)
➢This passage requires skill to handle two issues:
1. Working together with other functional mangers, where one functional area
may compete with other functional area for same organizational resources
2. Understanding how one’s own functional area contributes to overall business

strategy. How can this contribution be further enhanced?

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Leadership Pipeline
4. Passage Four (From functional manager to business manager)
➢When a manager is assigned a higher responsibility and moves from one particular
functional area to the task of integrating different functional areas as business
manager then the manager is at passage four.
➢This passage requires knowledge of other functional areas, and ability to handle wider
variety of people, and diversity.
➢Business managers are often assigned the task of keeping balance between short term
and long term goals based on profit, market share, and overall company objectives.

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Leadership Pipeline
Passage Five (From business manager to group manager)
➢When running from one single business the manger moves to handling more businesses,
s/he comes at this passage.
➢This stage requires proficiency in evaluating strategy for capital allocation,

development of other business managers, handling entire portfolio of businesses.
➢At this stage a manager requires much broader outlook than the earlier stages and an
enhanced leadership capability.

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Leadership Pipeline
Passage Six (From Group Manager to Enterprise Manager)
➢This passage requires more values than skill.

➢Managers at this stage should be transitioned into visionary thinkers and should be able
create a team of high achievers to support their vision.

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Job Analysis as a Source of information
Job Analysis:
➢Is the process of gathering and organizing detailed information about various jobs
within the organization so that managers can better understand the process through
which they are performed most effectively
➢Job Analysis is a fundamental block of Planning Process, but also relates to other HRM
Processes
➢Provides fundamental input to the HR manager such as knowledge, skills, and abilities
(KSAs) which are the fundamental requirements necessary to perform a job.
Job Families
➢Are groups of jobs with similar task and KSA requirements.
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The Job Analysis Process
Job Analyst
➢Is the individual who performs job analysis in an organization.
Subject Matter Experts (SMEs):
➢Are individuals presumed to be highly knowledgeable about a job and who provides data
for job analysis.
➢May be an existing job incumbent, supervisor, or other knowledgeable employee.

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Job Analysis and Other Human Resource Functions

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SELECTION:
➢Task, Ability, Skills

➢Assessment
➢Appropriate Plan of Recruitment
➢Selection Techniques – Check Skill Etc
➢ Find Essential Functions Of Job – Effectively Carried Out

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Performance Appraisal
✓Employee Know What To Do Before Being Assessed
Training and Development

✓ Type Of Training & Dev Programs
✓Improve Competencies & Skills
✓Get Performance
Compensation
✓Job Evaluation – Knowledge, Competencies

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Steps in Job Analysis

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JOB ANALYSIS STEPS
Determining Information Needs:
➢Description of the task- Ability-capability- Job Interface With Other Job- Behaviour
Required – Physical Movement – Demand
➢Machine – Tools – Equipment – Work Aid
➢Working Condition –
➢Work Schedules – Financial Non Financial –Personal Requirements

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JOB ANALYSIS STEPS
Method of obtaining information
➢Observations of task and task behaviour
➢Interview – Questionnaire & Check Lists
➢Job Analysts
✓May be a specialist within HRM function or a Consultant hired from the outside
✓ Data obtained by observation
✓Especially useful for unskilled manual jobs
✓Less relevant for jobs involving creative thought and analytic skills
➢SME (Subject Matter Expert)

✓May be existing job incumbents, Supervisors, High Level Managers, Industrial
Engineers or High Performers

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JOB ANALYSIS STEPS
Method of obtaining information:
Occupational Information Network (O*NET)
✓Firms (especially smaller ones) do not actually collect their own job-analysis information
at all. Instead they may get the information from O*NET
✓A database of the Knowledge, Skills and Abilities (KSAs) required for jobs in the U.S.
economy.
✓Currently it has information for more than 1000 occupations
✓ Standard Occupational Classification:

➢Cognitive abilities – oral, reasoning
➢Psychometric abilities – reaction time
➢Physical abilities – strength, stamina
➢Sensory abilities – speech clarity, heat sensitivity

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JOB ANALYSIS STEPS
Method of obtaining information:
Other Information provided by O*Net are as follows.
✓Occupational interest
✓Values
✓Work style- achievement, intelligence
✓Knowledge
✓Skill – write speak
✓Cross functional – negotiation, time mgmt.,
✓Requirement - license
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Specific Job Analysis Techniques
Narrative Job Functional Job

Analysis Analysis
Job Analysis
Fleishman Job Analysis System Position Analysis Questionnaire
Techniques
Task Analysis Management Position Description

Inventory Questionnaire
Critical Incidents Approach

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Job Analysis Techniques
1. Narrative Job Analysis
➢Most Common approach to Job analysis
➢Has one or more SMEs (Subject Matter Experts) prepare a written narrative or text
description of the job.
➢To some extent, the quality of the information depends upon the writing skills of the
job analyst.
➢They are relatively inexpensive
➢Does not require a great deal of training for someone to complete a narrative job
analysis
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Job Analysis Techniques
2. The Fleishman Job-Analysis System
➢Defines abilities as enduring attributes of individuals that account for differences in

performance.
➢Relies on a taxonomy (classification) of abilities that presumably represents all of the

dimensions relevant to work.
➢Each ability followed by a behavioural benchmark
➢Oral, written, ideas, night vision, perception, speech
➢Because of its complexity, it requires Training

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Job AnAlysis Techniques (conT’d)
3. Task Analysis Inventory
➢Is a family of job analysis methods, each with unique characteristics; each focuses on
analyzing all the tasks performed in the focal job.
➢Any given job has more number of tasks. Once a list containing list of tasks for a
particular job, a job analyst evaluates each dimensions such as:
✓ Relative amount of time spent on the task,
✓The frequency,
✓Relative importance,
✓Relative difficulty
➢Often used in Municipal and Country Governments and also in U.S. military.

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4. Functional Job Analysis:
➢Attempts to provide a single job analysis instrument that can be used with a wide variety
of jobs.
➢All the jobs can be described in terms of the Level of involvement with People, data,
things
➢For Example, a General Motors manufacturing site might be said to set up machines(
things), mentor people, and synthesize data.
➢The exact definition of each term is provided to the Job Analyst.
➢One Instrument For All Jobs
➢Not widely used in Private Industries.
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5. Position Analysis Questionnaire (PAQ)
➢Consists of 194 items reflecting work behavior, working conditions, or job

characteristics that are assumed to be generalizable across jobs.
➢The items that makeup PAQ are organized into six items.
1. Information input
2. Mental Process
3. Work output
4. Relationship with other people
5. Job context
6. Other Characteristics
➢Job analysis are asked to determine whether each scale applies to the specific job being
analysed. The analysts rates
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the items
V. Lawrabnce., into
Professor in 6 scales.
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5. Position Analysis Questionnaire (PAQ)……………….Contd…….
➢The analysts rates the items into 6 scales as follows.

1. Extent Of Use
2. Amount Of Time
3. Importance Of The Job
4. Occurrence
5. Applicability
6. Special Code
➢These ratings are then submitted to a centralized location and the computer software
complies a report.
➢Tis feature allows a wide variety jobs to be described in common terms.

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6. Management Position Description Questionnaire (MPDQ)
➢Contains 197 items that analyze how managerial jobs are done in terms of 13
components considered essential to all managerial jobs.
➢The essential components are supervision, staff service, Internal Business control,
Complexity and Stress
➢Can be used to classify managerial positions as well as estimate reasonable

compensation for them.

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7.Critical Incidents Approach
➢Focuses on critical behaviors that distinguish between effective and ineffective

performers.
➢It focuses the Organisation’s attention an aspects of the job that lead to more or
less effective performance

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What Does a Job Description Do?
➢ Lists the tasks, duties, and responsibilities for a particular job.
➢ It specifies the major job elements, provides examples of job tasks, and provides some
indication of their relative importance in the effective conduct of the job.
➢ Focuses on the individual who will perform the job and indicates the knowledge,
abilities, skills, and other characteristics that an individual must have to be able to
perform the job.

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Figure 3.6 Example Job Description and Job
Specification

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Job Redesign
Job Redesign
Job Job Job

rotation enlargement enrichment

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Job redesign
Job rotation :
➢It involves systematically moving employees form one job to another
➢Eg. An employee for a taxi service may work as a Driver on Monday, work as a
dispatcher on Tuesday, and may work on repairs on Wednesday etc
➢The jobs do not change, but instead, the employee moves from job to job
➢Workers who are rotated to a “new” job may be more satisfied at first, but novelty
soon wanes.

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Job redesign
Job Enlargement
➢Increasing the scope of one’s duties and responsibilities. The increase in scope is
quantitative in nature and not qualitative and at the same level.
➢Job enlargement is a horizontal restructuring method that aims at increase in the
workforce flexibility and at the same time reducing monotony that may creep up over a
period of time.
➢ It is also known as horizontal loading in that the responsibilities increase at the same
level and not vertically.
➢Job enlargement requires appropriate training especially on time and people
management. Task related training is not required much since the person is already
aware of the same or doing it for some time
Advantages:
✓Reduced Monotony
✓Increased Work Flexibility
✓No Skills Training Required
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Job redesign
Job enrichment
➢It is a management concept that involves redesigning jobs so that they're more
challenging to the employee and have less repetitive work.
➢To improve employee motivation and productivity, jobs should be modified to increase
the motivators present for the employee.
✓Reduce repetitive work.
✓Increase the employee's feelings of recognition and achievement.
✓Provide opportunities for employee advancement (as in promotions into jobs requiring
more skills).
✓Provide opportunities for employee growth (as in, an increase in skills and knowledge
without a job promotion). V. Lawrabnce., Professor in Managementb Studies., karunya
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Employee Empowerment
➢Employee empowerment means giving employees a certain degree of autonomy and

responsibility for decision-making regarding their specific organizational tasks.
➢Empowerment is the process of giving employees in the organisation the power,

authority, responsibility, resources, freedom to take decisions and solve work related
problems. In order to take such initiatives and decisions, they are given adequate
authority and resources.
➢This allocation of authority is not based on the concept of “delegation” based

relationship. In empowerment it is a “trust based relationship”, which is established
between management and employees.
➢It is a continuous process.

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Job evaluation
Position: A position is a group of tasks assigned to one individual.
Job: It is a group of positions that are similar as to kind and level of work.
Job Analysis: It is the process of studying and collecting information relating to the
operations and responsibilities of a specific job.
Motion study: It is one of the ways of studying job. It is a process of analyzing a job to
find the easiest, most effective, and most economical method of doing it.
Job description: It is an organized, factual statement of the duties and responsibilities of

a specific job.
Job specification: It is a statement of the minimum acceptable human qualities necessary

to perform a job properly..
V. Lawrance., Professor in Management Studies
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Job evaluation
Evaluation:
It is a data reduction process that involves the collection of large amounts of data which are
analyzed and synthesized into an overall judgment of worth or merit. The implication here is
that the judgment of worth can be supported by the data
Job Evaluation:
It is a systematic and orderly process of determining the worth of a job in relation to other
jobs. The objective of this process is to determine the correct rate of pay. It is therefore not
the same as job analysis. Rather it follows the job analysis process, which provides the basic
data to be evaluated.

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Job evaluation

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Job evaluation
Scott, Clothier and Priegel defines job evaluation as “the operation of evaluating a
particular job in relation to other jobs either within or outside the organization”.
According to the International Labour Organization (ILO), “job evaluation is an

attempt to determine and compare the demands which the normal performance of a
particular job makes on normal workers, without taking into account the individual
abilities or performance of the workers concerned”.
The British Institute of Management defines “job evaluation as the process of analysis
and assessment of jobs to ascertain reliably their negative worth using the assessment as
the basis for a balanced wages structure”.

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Job evaluation

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Job evaluation
The objectives of job evaluation
1. Establish a standard procedure for determining the relative worth of each job in an
organization;
2. Ensure equitable wage for a job and reasonable wage differentials between different jobs in a
hierarchical organization;
3. Determine the rate of pay for each job which is fair and equitable with relation to other jobs
in the plant, community or industry;
4. Eliminate wage inequalities;
5. Use as a basis for fixing incentives and different bonus plans;
6. Promote a fair and accurate consideration of all employees for advancement and transfer;
7. Provide information for work organization, employees‟ selection, placement, training and
other similar purposes;
8. Provide a benchmark for making career planning for the employees in the organization and;
9. Ensure that like wages are paid to all qualified employees for like work.

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Job evaluation
Principles of job evaluation:
1. Rate the job and the jobber. Each element should be rated on the basis of what the job
itself requires;
2. The elements selected for rating purposes should be easily explainable in terms and a
few in numbers as will cover the necessary requisites for every job without any
overlapping;
3. The elements should be clearly defined and properly selected;
4. Maximum co-operation can be obtained from employees when they themselves have
an opportunity to discuss job ratings and;
5. Too many occupational wages should not be established. It would be unwise to adopt
an occupational wage for each total of point values.

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Job evaluation
Job Evaluation Process
1.Job Description - The position supervisor assigns duties and writes the job description.
2.Approval - The competent authority reviews job descriptions and approve if he satisfies.
3.Review- Human Resources reviews the job description as submitted with the supervisor prior
to evaluation by the Job Evaluation Committee
4. Evaluation - The Job Evaluation Committee (JEC) is a multi-member committee, the

members of which are appointed by the Staff Salary Administration Committee (SSAC),
representing employees throughout organization. Members of JEC receive in-depth training on
job evaluation and utilize a consistently applied point system for the evaluations.
5. Confirmation - SSAC confirms all job evaluations and titles recommended by JEC.
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Job evaluation
Methods of Job Evaluation – Non-Analytical and Analytical Methods
The methods of job evaluation can broadly be classified as:
1. Non-analytical methods, and
2. Analytical methods.
Method # 1. Non-Analytical:
➢These methods are traditional and simple.
➢They consider all the jobs available, compare them, and then rank them. In complex
organisations, they cannot be used.
➢They can be used in such cases where the jobs are distinctly different and not similar.
i. Ranking method
ii. Job classification method. (Job Grading Method)

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Job evaluation
Methods of Job Evaluation – Non-Analytical and Analytical Methods
Method # 2. Analytical:
➢Under these methods, the jobs are broken down into different tasks.
➢Different factors such as – skill, responsibility, education level, and so on, are assessed
for each job.
➢The comparison of factor by factor, sometimes, allocating points or monetary sums for
each factor is made for meaningful interpretation.
➢two types of analytical methods:
i. Factor comparison method, and

ii. Points rating method.

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Advantages of job evaluation
1. Helps in developing a equitable and consistent wage and salary structure based on the relative
worth of jobs in an organization.
2. Helps in minimizing conflict between labour unions and management and, in turn, helps in
promoting harmonious relations between them.
3. Job evaluation simplifies wage administration by establishing uniformity in wage rates.
4. It provides a logical basis for wage negotiations and collective bargaining.
5. In the case new jobs, job evaluation facilitates spotting them into the existing wage and salary
structure.
6. It provides the realistic basis for determination of wages.
7. The information generated by job evaluation may also be used for improvement of selection,
transfer and promotion procedures on the basis of comparative job requirements.
8. It helps in rating all these jobs and determining the wages and salary and also removing
ambiguity in them.
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Job evaluation
Limitations/Drawbacks of job evaluation
1. Job evaluation is susceptible because of human error and subjective judgement. .
2. There is a variation between wages fixated through job evaluation and market forces.
3. When job evaluation is applied for the first time in an organization, it creates doubts in the
minds of workers whose jobs are evaluated and trade unions that it may do away with
collective bargaining for fixing wage rates.
4. Job evaluation methods being lacking in scientific basis are often looked upon as
suspicious about the efficacy of methods of job evaluation.
5. Job evaluation is a time-consuming process requiring specialised technical personnel to
undertake it and, thus, is likely to be costly also.
6. Job evaluation is not found suitable for establishing the relative worth of the managerial
jobs which are skill-oriented. But, these skills cannot be measured in quantitative terms.
7. Given the changes in job contents and work conditions, frequent evaluation of jobs is
essential. This is not always so easy and simple.
8. Job evaluation leads to frequent and substantial changes in wage and salary structures.
This, in turn, creates financial burden on organization.
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Recruiting
Definition :
➢The process of developing a pool of qualified applicants who are interested in working
for the organization and from which the organization might reasonably select the best
individual or individuals to hire for employment.
Purpose and Importance :

➢Recruitment is essential for filling up vacancies that may arise time to time due to
transfer, resignation, termination or death of existing employees.
➢To fill up existing employees’ critical skill gaps organizations may need to recruit.
➢Implicit costs of wrong hire include dissatisfied customers, poor quality of product and
service, low productivity, low employee morale of existing employees, and threat to
company’s overall image.
➢Negligence hiring can put organizations under legal threat.
➢By ensuring legal compliance (through hiring ethnic minority, women, disabled, and
aged individuals) organizations help to achieve broader goal of providing social justice.

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Factors Governing Recruitment
Internal Factors Influencing Recruitment
1. Company’s Size – Organizations with big size usually find it easier to recruit
compared to small organizations.
2. Cost- Organizations can reduce this cost by ensuring high retention of existing
employees.
3. Outsourcing – Non-core activities of organizations are nowadays getting outsourced

to specialized external agencies.
4. Future expansion plans- When organizations have future expansion plans, either in
the existing or new markets then recruitment from outside becomes essential.
Prof. V. Lawrance., Dept. of Mangement

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Factors Governing Recruitment
External Factors Influencing Recruitment
1. Company’s image – Company’s image plays a vital role in attracting potential
candidates.
2. Labor Market Condition–When there is surplus manpower available for a particular

skill set then a simple walk-in ad in the newspaper may help originations to fill up vacant
positions.
3. Legal provisions in the country- Government time to time announces how much
percentage of vacancies should belong to ethnic minorities (SC/STs/ physically Challenged
individuals).
4. Competitors-When competitors give better offers to existing or potential employees, then

this may force companies to have a relook at their existing recruitment policy.
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Organizational and Individual Goals in Recruiting
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Prof. V. Lawrance., Dept. of Mangement Studies, Karunya University
Sources for Recruiting
• Internal Recruiting
• Looking inside the organization
• Job posting
• Supervisory recommendations
• External recruiting
• Looking to sources outside
the organization
for prospective
employees
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Advantages and Disadvantages of Internal and External Recruiting
Ripple Effect : When an employee is promoted or transferred, it automatically creates a job vacancy. If this
vacancy is filled through internal recruitment, a second vacancy arises, which in turn may be filled through
internal recruitment leading to a further vacancy. In other words, the promotion can create a ripple effect
throughout the organization, which only comes to a halt when a vacancy is filled through external recruitment.
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External Recruiting Methods
Word-of-mouth
Advertisements Employment agencies
Electronic
College placement offices
recruiting
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Word-of-Mouth:
➢The Organization simply informs current employees that positions are available and
encourages them to refer friends, family friends , or neighbors for those jobs.
➢This method is in-excpensive
Advertisements:
➢Advertisements on websites and in newspapers and related publications are also
popular methods of External recruiting
➢Attracts somewhat fewer qualified applications than do some other methods.
College Placement Offices:
➢Most larger Organisations visit college campuses every year to interview graduates
for jobs within the organization.
➢Advantage for the organization is that it can specify qualifications such as major,
grade point average and so on.
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Electronic Recruiting- Advantages:

• Cost effective
• Time saver
• Reaches a large number of applicants
Employment Agencies
• Public employment agencies
• Private employment agencies
• Executive search firms
Internships: A Mixed Model
• A form of temporary employment
• Intern must be a good fit
• Hiring an intern is a form of internal and external recruiting
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Realistic Job Preview Benefits
✓Helps ensure that job seekers understand the actual nature of jobs available to them.
✓Provides job applicants with an opportunity to observe others performing the work.
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Steps in the Selection Process
The recruiting process
Gather information about

pool of qualified applicants
Evaluate the qualifications of

each applicant
Make decisions about

employment offers
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The Selection Process
Selection Process:
➢Is concerned with identifying the best candidate or candidates for jobs from among
the pool of qualified applicants developed during the recruiting process.
Basic Selection Criteria:

➢Education and Experience
➢Skills and abilities
➢Personal Characteristics --- Big Five Personality Tests
➢Hiring for “fit” --- Fit for a specific job based on KSA ( Knowledge, Skill and
Abilities)
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Big Five Personality Traits
Neuroticism
Openness to
Extraversion
experience
Agreeableness Conscientiousness
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Big Five Personality Traits
Openness - People who like to learn new things and enjoy new experiences usually score high
in openness. Openness includes traits like being insightful and imaginative and having a wide
variety of interests.
Conscientiousness - People that have a high degree of conscientiousness are reliable and
prompt. Traits include being organized, methodic, and thorough. – (Faithfulness/Honesty)
Extraversion - Extraverts get their energy from interacting with others, while introverts get
their energy from within themselves. Extraversion includes the traits of energetic, talkative, and
assertive.
Agreeableness - These individuals are friendly, cooperative, and compassionate. People with
low agreeableness may be more distant. Traits include being kind, affectionate, and sympathetic.
Neuroticism - This dimension relates to one’s emotional stability and degree of negative
emotions. People that score high on neuroticism often experience emotional instability and
negative emotions. Traits include being moody and tense.
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Personality Trait – The Big Five Factors
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Popular selection techniques
1. Application and Background Checks

2. Employment Tests
3. Work Simulations
4. Personal Interviews
5. Other Selection Techniques
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Sample Selection
System
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1. Applications and background checks
➢A first step in most selection is to ask applicants to complete an employment application or
Application Blank
➢An Employment Application asks individuals for various facts and information pertaining
to their personal background.
➢Commonly asked questions include details such as name, educational background, personal
career goals and experience. All Questions on an employment application must relate to an
individual’s ability to perform a job
➢Application blanks, when used in typical selection systems, provide a quick and
inexpensive mechanism for gathering several kinds of objective information about an
individual and information of a type that can be easily verified.
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Employment Applications
Types of employment
applications
Biodata
Weighted application
application
20-04-2021 131
Weighted application blank
➢Weighted Application Blank Relies on statistical techniques to determine the relative

importance of various personal factors for predicting a person’s ability to perform a job
effectively.
➢Using the information gathered from current high and low performers in the organization,
it is often possible to determine whether specific levels of education, experience and so on
gathered on the application blank are related to a person’s ability to perform a job
effectively.
20-04-2021 132
Bio data application blank
➢Focuses on the same type of information found in a regular application, but it also goes into
more complex and detailed assessments about the background
➢For example in addition to asking about an applicant’s college major, a bio-data

application might ask question about which applicant enjoyed most and why a particular
field of study was chosen.
➢As with weighted application blanks, responses to these questions are then studied to see if
they differentiate between employees who have done well and those who have done poorly
on the job.
➢The information is then used to predict their application blanks.
20-04-2021 133
Sample Employment
Application
20-04-2021 134
Sample Employment
Application
(conT’d)
20-04-2021 135
2. Employment tests
Employment Tests :
Measure the characteristics of an individual, such as personality, intelligence, or aptitude.
1. Cognitive ability tests
2. Psychomotor ability tests
3. Personality Tests (Measure traits, or tendencies to act, that are relatively unchanging
in a person)
a) Self-report inventory
b) Projective technique
4. Integrity Test
20-04-2021 136
2. Employment tests
1. Cognitive ability tests:
➢Cognitive ability tests measure a candidate’s general mental capacity which is strongly
correlated to job performance.
➢These kinds of tests are much more accurate predictors of job performance than
interviews or experience.
➢Workable uses a General Aptitude Test (GAT) which measures logical, verbal and
numerical reasoning.
➢Limitations
✓As with any cognitive ability test, practice can improve test takers’ scores.
✓Also, cognitive ability tests are vulnerable to racial and ethnic differences, posing a
discrimination risk.
✓Use multiple evaluation methods and don’t base hiring decisions on these tests
alone. Just use the results as a guide.
20-04-2021 137
2. Employment tests
2. Psychomotor Test
➢Psychomotor Test are used for determining the precision, coordination, control and
reaction time for candidates in the hiring process.
➢It not only assesses the mechanical performance of the candidate but also their ability to
understand and follow instructions and perform motor responses.
➢This kind of tests are widely used for deciding the best candidate for surgeons or pilots
etc. The test measures the candidate’s reaction time, multitasking capacity and
coordinating abilities.
➢The evaluator rates the candidate’s performance against a predefined benchmark. This is
standardized for all applicants.
Example: In a manufacturing facility, a candidate is placed in a high speed assembly line.

They are asked to perform a task for a certain time period. This gives the employer an idea of
the efficiency
20-04-2021 and fastness of the employee.
138
2. Employment tests
2. Psychomotor Test …………………Contd…..
Factors affecting Psychomotor Tests:
1. Job role: The tests are created in accordance with the jobs demand. It asses the key physical
attributes required to perform the job related tasks successfully.
2. Job pressure: Pressure related to ache (pain related) job role may be different and that has
to be kept in mind while designing the tests
3. Decision making: The degree of instant decision making is a key factor of psychomotor
assessments
4. Real time job environment: The tests are most accurate when conducted in a real time
simulated environment, as that is when the motor reflex are best judged.
5. Standardizing the evaluation criteria: For proper assessment of candidates, a checklist of all
major criteria are created and every candidate is judged based on the same
20-04-2021 139
2. Employment test
3. a. Self-report inventory
➢It is a type of psychological test in which a person fills out a survey or questionnaire
with or without the help of an investigator.
➢Self-report inventories often ask direct questions about personal interests, values,
symptoms, behaviors, and traits or personality types.
➢Inventories are different from tests in that there is no objectively correct answer;
responses are based on opinions and subjective perceptions.
➢Most self-report inventories are brief and can be taken or administered within five to 15
minutes, although some, such as the Minnesota Multiphasic Personality Inventory
(MMPI), can take several hours to fully complete.
➢They are popular because they can be inexpensive to give and to score, and their scores
can oftenProf.show
20-04-2021 good
V. Lawrance., reliability.
Dept. of Mangement Studies, Karunya University
140
2. Employment test
3.a) Self-report inventory …………………..Contd…
➢There are three major approaches to developing self-report inventories: theory-guided,
factor analysis, and criterion-keyed.
1. Theory-guided inventories are constructed around a theory of personality or a

prototype of a construct.
2. Factor analysis uses statistical methods to organize groups of related items into
subscales.
3. Criterion-keyed inventories include questions that have been shown to statistically

discriminate between a comparison group and a criterion group, such as people with
clinical diagnoses of depression versus a control group.
20-04-2021 141
2. Employment test
3. a.) Self-report inventory ……………………. Contd…
Advantages:
➢Many self-report inventories can be completed very quickly, often in as little as 15
minutes. This type of questionnaire is an affordable option for researchers faced with
tight budgets.
➢The results of self-report inventories are generally much more reliable and valid than
projective tests. Scoring of the tests a standardized and based on norms that have been
previously established.
Disadvantages:
➢The MMPI takes approximately 3 hours to complete. In some cases, test respondents
may simply lose interest and not answer questions accurately.
➢Additionally, people are sometimes not the best judges of their own behavior.
➢Some individuals may try to hide their own feelings, thoughts, and attitudes
20-04-2021 142
2. Employment test
3. b) Projective test
➢It is a type of personality test in which you offer responses to ambiguous scenes, words,
or images.
➢The goal of such tests is to uncover the hidden conflicts or emotions that you project onto
the test with the hope that these issues can then be addressed through psychotherapy or
other appropriate treatments.
➢Projective tests are intended to uncover feelings, desires, and conflicts that are hidden
from conscious awareness.
➢By interpreting responses to ambiguous cues, psychoanalysts hope to uncover

unconscious feelings that might be causing problems in a person's life.
➢Despite controversy over their use, projective tests remain quite popular and are
extensively used in both clinical and forensic settings.
20-04-2021 143
2. Employment test
3. b) Projective test ……………………Contd….
Limitations
➢The respondent's answers can be heavily influenced by the examiner's attitudes or the
test setting.
➢Scoring projective tests is highly subjective, so interpretations of answers can vary

dramatically from one examiner to the next.
➢Projective tests that do not have standard grading scales tend to lack both validity and
reliability.
20-04-2021 144
2. employmenT TesTs (conT’d)
4. Integrity Tests: (or Honesty Test)
➢The honesty or integrity of individuals can be tested via pre-employment screening from
employers.
➢Employers may administer personnel selection tests within the scope of background
checks that are used to assess the likelihood that behavior.
➢Integrity tests are administered to assess whether the honesty of the potential candidate is
acceptable in respect to theft and counterproductive work behavior. These tests may
weigh in on the final personnel decisions
➢Integrity testing for employment selection became popular during the 1980s.
20-04-2021 145
3. Work simulations
1. Job Simulation
➢Job simulations are employment tests that ask candidates to perform tasks that they
would perform on the job.
➢Applicants complete tasks that are similar to tasks they would complete when actually
working in the position on a day to day basis.
➢For example, for a secretary position, a job simulation might involve typing a
passage and completing forms accurately. For a waitress position, a simulation
may involve taking a fake customer’s order correctly, or processing a check.
➢Job simulations can also evaluate interpersonal skills, such as resolving an agitated
customer’s complaint.
➢By using job simulations, employers can evaluate whether a job candidate can do the
job, rather than guess based on interview answers and personality questionnaires.
20-04-2021 146
3. Work simulations
1. Job Simulation………………………………. Contd…..
Advantages:
➢Higher predictive validity: If a candidate scores well on a job simulation, they are more
likely to perform the job well.
➢Better applicant insight into the job role: Job applicants are exposed to the tasks they will
perform and can determine whether they would enjoy the work.
➢Fairness: Because simulations are job-related, job applicants can immediately understand
the relationship of the test to the job and perceive the evaluation process as more fair than
other employment tests.
Disadvantages:
➢Costs: An in-person job simulation requires raters, a space to conduct the simulation and a
scheduling program to give everyone time to complete the simulations.
➢Time: Job simulations can be time-consuming to develop and administer.
20-04-2021 147
3. Work simulations
2. In-basket test:
➢It is a test used by companies or governments in hiring and promoting employees.

➢During the test, job applicants receive a number of mails, telephone calls, documents
and memos.
➢They then have a limited period of time to set priorities, organize their working
schedule accordingly and respond to mail and phone calls.
➢It also helps in acquainting employees about their job where a number of problems are
kept in the "in basket "(usually kept on the desk of the employee). The worker has to
look at the problems which could also be complaints from different employees and
simultaneously deal with those problems. As the employee solves these problem,
he/she transfers them to the "out-basket".
➢In-basket exercises are often part of assessment centers that are comprehensive multi-
day assessments involving a variety of simulation exercises and tests, typically used to
identify management talent.
20-04-2021 148
4. Personal Interviews
A selection technique that uses a face-to-face conversation between the job

applicant and a representative of the organization as part of the selection
process.
20-04-2021 149
4. personAl inTerviews (conT’d)
Types of Interviews
Structured Semi-structured Unstructured

employment employment employment Situational interview
interview interview interview
20-04-2021 150
4. personal interviews
1. STRUCTURED INTERVIEW
➢It is a type of interview in which the interviewer asks a particular set of predetermined
questions.
➢In structured interviews, questions are planned and created in advance, which means that
all candidates are asked the same questions in the same order.
➢Structured interviews are also known as: Standardized interviews, Patterned interviews,
Planned interviews, Formal interviews
Advantages of structured interview
➢Since in structured interviews all the candidates are asked the same questions, it’s easy
to compare their answers and hire the right job candidate. You can evaluate candidates in
a most objective and fair way, which also makes structured interviews more legally
defensible.
Disadvantages of structured interview
➢On the other hand, structured interviews are harder and more complicated to develop.
You have to write them, test them and make sure interviewers stick to them.
➢You also risk your interview questions leaking out, which means future candidates can
come prepared
20-04-2021 . Dept. of Mangement Studies, Karunya University
Prof. V. Lawrance.,
151
2. UNSTRUCTURED INTERVIEW
➢It is a type of interview in which the interviewer asks questions which are not prepared in
advance.
➢In unstructured interviews, questions arise spontaneously in a free-flowing conversation,
which means that different candidates are asked different questions.
➢Unstructured interviews are also known as: Informal interviews, Casual interviews, Free-
flowing interviews
Advantages of unstructured interviews
➢The main advantage of an unstructured interview is their personalized approach. This is
especially useful when you compare candidates who are equally qualified or for jobs
where their personality and communication skills are crucial.
➢Because it allows a free-flowing conversation, they seem much more casual and help
candidates relax and feel more comfortable during the interview.
Disadvantages of unstructured interviews
➢Since in unstructured interviews different candidates are asked different questions, it’s
harder to compare their answers and evaluate candidates equally and objectively.
20-04-2021
152
3. SEMI-STRUCTURED INTERVIEW
➢It is a type of interview in which the interviewer asks only a few predetermined questions
while the rest of the questions are not planned in advance.
➢In semi-structured interviews, some questions are predetermined and asked all candidates,
while others arise spontaneously in a free-flowing conversation.
➢Semi-structured interviews are also known as: Moderately structured interviews, Hybrid
interviews, Combined interviews
Advantages of semi-structured interviews
➢Since semi-structured interviews combine both the structured and unstructured interview
styles, they can offer the best form both worlds.
➢They can secure objective comparison of candidates, but at the same time provide a more
personalized and spontaneous approach that allows exploration of interesting points in
specific candidate’s resume.
Disadvantages of unstructured interviews
➢Compared with structured interviews, semi-structured interviews are less objective and
legally harder to defend.
20-04-2021
153
4. SITUATIONAL INTERVIEW
➢In this, job-seekers are asked to respond to a specific situation they may face on the job.
➢These types of questions are designed to draw out more of your analytical and problem-
solving skills as well as how you handle problems with short notice and minimal
preparation.
➢Situational interviews are similar to behavioral interviews except while behavioral focus
on a past experience situational interviews focus on a hypothetical situation.
✓For example in a behavioral interview the interviewer might start a question with
"Tell me about a time you had to deal with..." In a situational interview the
interviewer asks "How would you handle..."
➢The key to preparation and success in situational interviews is simply to review your past
work experiences and review the steps you took to resolve problems and make
corrections.
➢You should also have short stories of some of these past experiences so you can also
incorporate them into your answers to show that you have experience handling similar
situation
20-04-2021
154
4. Personal Interview - errors
Types of Interview Errors
First impression Contrast

Similarity errors Non-relevancy errors
errors errors
20-04-2021 155
4. Personal Interview - errors
1. First Impression Error
Example Late comer cause interviewer to make a negative judgement
2. Contrast Error:
The next person interviewed may suffer or benefit of previous candidate performance
3. Similarity Errors:
Occur when the interviewer is unduly influenced by the fact that the interviewee is similar
to the interviewer in one or more important ways- Eg. Same Home Town
4. Non-relevancy Errors:
The interviewer may be inappropriately influenced by an individual’s posture, dress, and
appearance
20-04-2021
156
5. Other selection techniques
1.References and Recommendations
2.Assessment Centers
1. References and Recommendations:
➢Job applicant is usually asked to provide either letters of recommendation or the names
and addresses of individuals who may be contacted to write such letters
➢Organization can use this information as a basis for accessing a person’s past experiences
and work history.
➢However, Often of little value
20-04-2021
157
5. Other selection techniques
2. Assessment Centers:
➢It is for selection of Managers or to promote managers to higher level.
➢The individuals to be assessed are brought together in a single place such as the
company’s training head quarters or conference facility in a Hotel
➢Schedule lasts two to three days and involves 10 to 15 individuals
➢These individuals may undergo experimental exercises, Group Deciosin making, case
analysis, individual employment tests
➢Current manages oversee the assessment and serve as evaluators.
➢Each evaluator provides an in depth evaluation of each attendee and makes an overall
evaluation about the person’s suitability for promotion.
20-04-2021
158
Competitive Advantage through Selection
➢Strategic Management has argued that resources which are rare, valuable, inimitable and
non-substitutable give long term competitive advantage to organization- Human capital in
general has all these critical characteristics.
➢Individual's knowledge, skill, and attitude contribute to a great extent in sustaining

corporate culture and competitiveness.
➢By choosing the right kind of human resource organizations can ensure long term
sustainability.
➢Research suggests good fit between strategic skills of executives and organizational
strategy ensures high rate of return.

20-04-2021 159
Selection Errors
False Positives
• Applicants who are predicted to be successful and are hired but ultimately fail.
False Negatives
• Applicants who are predicted to fail and are not hired, but had they been hired,
they would have been successful.
20-04-2021 160
Selection Errors
20-04-2021 161
Orientation, Induction, Onboarding and Placement
Orientation:
➢Provides an overview to newly hired employees about organizational history, mission,
rules and procedures.
➢Orientation is one day (first day) activity, and may include simple things as telling
employees where to park the car or duration of lunch time.
Onboarding:
➢It is about helping new employees develop right attitude.
➢At least first 90 days of integrating new hire into the new organization can be referred
as on boarding.
➢Starts even much before an employee formally joins the organization; it begins just
after an employee gets the offer letter and continues much beyond three months period
20-04-2021 162
Induction Training :
➢Induction is process focused, whereas onboarding is a much broader term and includes
complete acclimatization of employees and engaging them within the organization.
➢Induction Training may impart varying degree of knowledge ranging from generic
material to very specific aspects of the job, internal and external contact points,
workplace policies and procedures.

20-04-2021 163
For effective onboarding organizations may include the following:
✓Training employees using videos/lectures for letting them know company's history,
values, culture
✓Handing over existing organizational chart, relevant contact details
✓Sharing policy and procedural documents.
✓Mentoring/Coaching of employees who can offer advice and provide support for
understanding organization’s culture
✓Conducting meeting with new employees for clarifications of any rule or
procedure
✓Team building exercises, special luncheons between new and existing employees
✓Rotating assignments if the job permits that.
Placement :
➢It involves actual posting of an employee to a particular job with a specific rank
and responsibility.
20-04-2021 164
THANK YOU

20-04-2021 165
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20MS3012 HUMAN RESOURCE MANAGEMENT

I MBA (CREDITS 3.:1:0)

MODULE 2: HR Planning, Recruitment & Selection

➢Planning provides a sense of purpose and direction.

✓Forecasting (future requirements),

According to Coleman, "Manpower planning is the process of determining manpower

V. Lawrabnce., Professor in Managementb Studies., karunya

Human Resource Planning (HRP)

According to Jeisler, "Manpower planning is the process including forecasting, developing

According to Dale S. Beach, "Human resource planning is a process of determining and

V. Lawrabnce., Professor in Managementb Studies., karunya

➢Planning the necessary programs of recruitment, selection, training, development,

1. Assessing Future Personnel Needs:

V. Lawrabnce., Professor in Managementb Studies., karunya

➢Whether it is surplus labour or labour shortage, it gives a picture of defective planning

V. Lawrabnce., Professor in Managementb Studies., karunya

3. Coping with Change:

➢Changes in the business environment like competition, technology, government

V. Lawrabnce., Professor in Managementb Studies., karunya

➢As a result of change in the mindset of management, investment in human resources is

5. Expansion and Diversification Plans:

7. Conformity with Government Guidelines:

V. Lawrabnce., Professor in Managementb Studies., karunya

9. Having Highly Talented Manpower Inventory:

V. Lawrabnce., Professor in Managementb Studies., karunya

V. Lawrabnce., Professor in Managementb Studies., karunya

6. Company’s production operations policy – Company’s policy regarding how much to

V. Lawrabnce., Professor in Managementb Studies., karunya

5. Departmental level – This covers the manpower needs of a particular department in a

7. Information technology – The impact of information technology on business activities,

V. Lawrabnce., Professor in Managementb Studies., karunya

V. Lawrabnce., Professor in Managementb Studies., karunya

➢Important element in HR Planning Process is Human Resource Information System

✓Gradual increase in average age of the workforce(more productive, retirement age

✓Entry of more women into the workforce

✓Mandatory retirement ages have been increased or dropped altogether

➢General demand trends influence the availability of human resources.

V. Lawrabnce., Professor in Managementb Studies., karunya

V. Lawrabnce., Professor in Managementb Studies., karunya

V. Lawrabnce., Professor in Managementb Studies., karunya

2. The technique is cost effective and provides rich information

3. The respondent’s perspective is taken into account

4. The respondents are not forced into any framework

V. Lawrabnce., Professor in Managementb Studies., karunya

2. Biasness might creep in towards the incidents that happened recently.

V. Lawrabnce., Professor in Managementb Studies., karunya

➢Experts may range from first-line supervisors to top-level managers. Sometimes,

V. Lawrabnce., Professor in Managementb Studies., karunya

V. Lawrabnce., Professor in Managementb Studies., karunya

V. Lawrabnce., Professor in Managementb Studies., karunya

➢They develop solutions independently, often writing them on cards.

➢Their ideas are shared with others in a structured format,

V. Lawrabnce., Professor in Managementb Studies., karunya

➢The objective of time study is to establish standard time for jobs.

➢This standard time can further be linked to the workers’ pay.

V. Lawrabnce., Professor in Managementb Studies., karunya

1. Average Cycle Time

Task B 3.8 Task B 3.42

Task C 2.5 Task C 3

3. Total Normal Time 14.87

➢This method estimates percentage of time an operator spends on different tasks.

➢It should be random observations done without interrupting the operator.