BPC2 31

STRATEGIC HUMAN RESOURCE MANAGEMENT

CHAPTER 5. STRATEGIC HUMAN RESOURCE

Strategic Human Resource Management
Introduction:

• Employee resourcing is concerned with the range of methods and approaches used by
employers in resourcing their organizations in such a way as to enable them to meet ther
key goals.
• It therefore involves:

1. Staffing (recruitment, selection and dismissal),

2. Performance (appraisal and management of performance),
3. Administration (policy development, procedural development, documentation)
4. Change Management
HUMAN CAPITAL: DEFINITION AND THEORY

• Human capital is the skill, talent, and productivity that employees bring to a company.
• Coined by University of Chicago economist Theodore Schultz in 1964, the term refers to
capital produced by investing in knowledge.
• Human capital is largely responsible for innovation, which can also be a tremendous
competitive advantage for companies.
Two Kinds of Human Capital:
1. Specific Human Capital – refers to knowledge and skills that few find useful and are
willing to pay for.
2. General Human Capital – refers to knowledge and skills that many employers find
useful.
Example. Knowing accounting, knowing how to transplant a heart, or knowing to design a bridge.

• Employment is essentially the purchase and sale of human capital. Employees own
their talents, skills and time, and sell these assets to companies in return for money.
• Market rates are not the thing that establishes the value of skills and knowledge, but
personal connections, prestigious schooling, and character can also influence the value
of one’s human capital.
• Human capital tends to migrate in global economies, most often from poor places to
richer places. Some economists argue that this ‘brain drain’ makes poor places poorer
and rich places richer.
• On the other hand, the essence of human capital theory is that investments are made in
human resources so as to improve their productivity and therefore their earnings,
however cost are incurred in the expectation of these future benefits.
• An investment in human capital can be made either by people in themselves. (University
degree or OJT).
 • For this, Human Capital Theory is essentially an extension of the idea of physical capital.

Talent Management
1. Develop clear job descriptions to know the skills, abilities, and experience needed from a
new employee.
2. Select appropriate employees who have superior potential and fit the organization’s
culture with an appropriate selection process.
3. Negotiate requirements and accomplishment-based performance standards, outcomes,
and measures within a performance development planning system.
4. Provide effective employee onboarding and ongoing training and development
opportunities that reflect both the employee’s and the organization’s needs.
5. Provide on-going coaching, monitoring, and feedback so the employee feels valued and
important.
6. Conduct quarterly performance development planning discussions that focus on the
employee’s interest for career development.
7. Design effective compensation and recognition systems that reward people for their
contributions. Even if all of the rest of your employment processes are employee-
oriented, people still work for money. Employers of choice aim to pay above market for
talented employees.
8. Provide promotional and career development opportunities for employees within a
system that includes career paths, succession planning, and on-the-job training
opportunities.
9. Hold exit interviews to understand why a valued employee decided to leave the
organization. If the reasons provide information about company systems that you can
improve, make the changes that will better retain talented employees.

What attracts employees to work at certain places?

1. Great Pay
2. The Job
3. Creative benefits and rewards
4. Fun and safe working environment
5. The organization’s excellent reputation
6. Cooperative and helpful colleagues
7. Understanding Managers
Employee Retention
1. Innovative compensation and benefits package
2. Effective rewards and recognition
3. Career development and opportunities
4. Addressing employee needs
5. Flexible but strict requirements
6. Defined role of corporate culture
Effective Reward Practices Strategy:
1. Align employee reward strategies with business strategy.
2. Focus on rewards that matter to employees.
3. Prioritize effective program delivery.
Strategies for Effective Succession Planning:
1. Measure for the three C’s of fitness
2. Implement tools for development
3. Involve talent in the planning
4. Cast a wider net in a bigger ocean
• Every owner, business, and situation is unique. There is no such thing as one-size-fits -all
succession planning. However effective succession plants share enough elements to suggest
basic steps that can be adapted to meet the needs of a given business or owner.
Basic Steps to Meet the Needs of a Business or Owner.
1. Consider the various constituents
2. Identify the main characteristics a successor should posses
3. Determine how to find those most likely to fit the established criteria.
4. Ensure a rigorous and inclusive selection process
5. Make a decision.
6. Communicate the decision companywide
7. Ensure periodic review of the plan’s components and ultimate succession decision
8. Address ownership succession
9. Provide for emergencies
TALENT AUDITS
• Talent Audit – is a systematic management and / or leadership review, which aims to
measure, align and develop talent against current and future business needs.
• The audit generates rich, detailed information on both organizational and individual capabilities
to execute strategic imperatives.
These imperatives may include:

• driving growth,
• entering new markets,
• transforming organizational culture, or
• integrating a new acquisition.
• A talent audit can be a powerful tool for business leaders to understand an organization’ s
capability to change and develop.
1. Take a whole person approach - behavioral and technical competencies.
2. Create a thorough understanding of talent capacity and potentials through assessment
process.
3. Use the results to build both individual and group.
4. Compare assessment results to relevant external comparison groups (ex. peer)
• Use the insights from assessments to refine key people processes to attract and build talent.
(Recruitment and performance management)

CHAPTER 6. EMPLOYEE RESOURCING

EMPLOYEE RESOURCING
Introduction:
• Employee resourcing is concerned with the range of methods and approaches used by
employers in resourcing their organizations in such a way as to enable them to meet their key
goals.
• It therefore involves staffing recruitment, selection, retention and dismissal), performance
(appraisal and management of performance), administration (policy development, procedural
development, documentation) and change management
HUMAN CAPITAL: DEFINITION
• Human capital is the skill, talent, and productivity that employees bring to a company.
• The term refers to capital produced by investing in knowledge. (Theodore Schultz)
• Accordingly, companies are usually very interested in investing in and acquiring human capital.
• They do this via recruiting new employees, training existing employees, and ensuring that the
relationships between employees and their managers are positive.
Kinds of Human Capital:
1. Specific human capital - refers to knowledge and skills that few find useful and are
willing to pay for.
Example: knowing how to operate a proprietary machine that is owned and operated by
Company XYZ might be a skill that only company XYZ is willing to pay for.
2. General human capital - refers to knowledge and skills that many employers find
useful.
Example: knowledge in accounting, Heart transplant, or design a bridge.
Employment is essentially the purchase and sale of human capital.

• Employees sell their time, skills and expertise to companies in return for money.
• Market rates of employees depends on the value of skills and knowledge.
• Factors affecting human capital: personal connections, prestigious school, and character
• Migration of the human capital in global economies creates ‘brain drain’.
• The Human Capital Theory: human capital is an extension of physical capital.
• Example: new plants and equipment are purchased today in order to increase productive
capacity and obtaining greater returns later
• Investments made in human resources means cost
• An investment in human capital can be made either by people in themselves (example:
university degree, OJT).
Talent Management
• Talent management includes the following activities and work processes:
1. Develop clear job descriptions
2. Select appropriate employees - potential and fit
3. Negotiate requirements and accomplishment
4. Provide onboarding and ongoing training and development
5. Provide on-going coaching, monitoring, and feedback
6. Conduct quarterly performance development
7. Design effective compensation and recognition systems
8. Provide promotional and career development opportunities
9. Hold exit interviews
What attracts employees to work at certain places?
1. Great pay
2. The job itself
3. Creative benefits and rewards
4. Fun and safe working environment
5. Cooperative and helpful colleagues
6. The organization’s excellent reputation
7. Understanding Managers
Effective Retention Plan:
1. Innovative compensation and benefits package
2. Effective rewards and
3. Career development and opportunities
4. An employee needs
5. Flexible but strict requirements
6. Defined role of corporate culture
Implementation To Have an Effective Reward Strategy:
1. Align employee reward strategies with business strategy
2. Focus on rewards that matter to employees
3. Prioritize effective program delivery
How to get the most out of a talent audit:
1. Take a whole person approach by including both behavioral and technical
competencies.
2. Create a thorough understanding of talent capacity and potential through an objective
assessment process.
3. Use the results to build both individual and group
 4. Compare assessment results to relevant external comparison groups
5. Use the insights from assessment and external benchmarks to refine key people
processes

CHAPTER 7. COMPETENCY BASED MNGT

COMPENTENCY BASED HRM
Introduction
• Competency-based Management - is an approach to human resource management that
integrates and examines all human resource management activities against competencies.
• Competencies - describe a range of activities undertaken to achieve successful job
performance.
• Competency models answer the following questions about jobs:
1. What skills, knowledge, and characteristics are required to perform the job?
2. What behaviors have the most direct impact on job performance?
DIFFERENT TYPES OF COMPETENCIES
1. Behavioral Competencies (soft skills) – Behavioral competencies define behavioral
expectation required to deliver results under
Example: team working, communication, leadership and decision making.
2. Technical Competencies (functional competencies) technical or operational in nature –
are job – specific competencies that drive proven high – performance, quality results for
a given position.
Examples: data analysis, programming, and risk analysis.
Choosing the right competencies allows employers to:
1. Plan how they will organize and develop their workforce.
2. Determine which job classes best fit their business needs.
3. Recruit and select the employees.
4. Manage and train employees effectively.
5. Develop staff to fill future vacancies.
COVERAGE AND CONTENT OF COMPETENCY FRAMEWORK
• A competency framework – is a structure that sets out and defines each individual
competency required by individuals working in an organization or part of an organization.
• Generally, the framework will consist of a number of competencies, which can be generically
applied to a broad number of roles within the organization or sector.
Importance of Competencies:
• An organization that neglect to define an expected standard of performance will be one where
judgement of good, bad or excellent will be highly subjective.
• Without a common understanding of good, bad and excellent, judgement cannot be fair and
development priorities are difficult to agree upon.
• Used for the review, evaluation and development of organizations, projects and individuals.
• Employer’s competency framework usually contains no more than twelve competencies. The
most widely used competencies by employers are:
1. Competencies Dealing with People
2. Competencies Dealing with Business
3. Self– Management Competencies
1. Competencies Dealing with People:

• Establishing Focus
• Providing Motivation Support
• Fostering Teamwork
• Empowering Others
• Managing Change
• Developing Others
• Managing Performance
• Attention to Communication
• Oral Communication
• Written Communication
• Persuasive Communication
• Interpersonal Awareness
• Influencing Others
• Building Collaborative Relationships
• Customer Orientation
2. Competencies Dealing with Business

• Diagnostic Information Gathering

• Analytical Thinking
• Forward Thinking
• Conceptual Thinking
• Strategic Thinking
• Technical Expertise
• Initiative
 • Entrepreneurial Orientation
• Fostering Innovation
• Results Orientation
• Thoroughness
• Decisiveness
3. Self-Management Competencies

• Self Confidence
• Stress Management
• Personal Credibility
• Flexibility
DEVELOPING COMPETENCY FRAMEWORK
• The following principles are critical:
1. Involve the people doing the work - to understand a role fully, you have to go to the
person doing the job
2. Communicate - People tend to get nervous about performance issues. The more you
communicate in advance, the easier your implementation will be.
3. Use relevant competencies - irrelevant competencies makes people a hard time relating
to the framework
4. Create a competency framework team – aim diversity, include people from all areas of
your business
5. Collect Information - the main part of the framework: interview, job descriptions;
regulatory and other compliance issues, business plans strategies and objectives;
customer and supplier needs.
BUILD THE FRAMEWORK
1. Group the statements - Ask the team members to read through the behavior
statements and group them into files: manual skills, decision-making, judgement skills,
and interpersonal skills.
2. Create subgroups - Break down each of the larger files into subcategories of related
behaviors.
3. Refine the subgroups for each of the larger categories.
4. Identify and name the competencies - identify a specific competency to represent each
of the smaller subgroups of behaviors.
IMPLEMENT
1. Link to business objectives
2. Reward the competencies
3. Provide coaching and training
4. Make the framework as simple as possible
5. Communicate
The process of creating a competency framework is challenging but it can be so effectively and
link on what people do to the overall aims of the business then there can be a really positive
impact on the performance of the business as a whole.
APPLICATIONS OF COMPETENCY FRAMEWORK
1. In Job descriptions - explain the duties, working conditions, and other aspect of the job,
2. In Recruitment, Assessment, and selection-
3. In Employee Performance Management – show level of knowledge and skill mastery to
successfully perform job duties.
4. In Training and Development - allow supervisors to choose and prioritize training
courses and other learning opportunities for employees
5. In Career and Workforce Planning - organizational structure, recruitment strategies,
training budgets and development plans, job assignments and individual performance
plans.
6. In Compensation - these are often represented in the class specifications as knowledge
and abilities.

CHAPTER 8. JOBS AND ROLES

JOB AND ROLES
JOBS AND ROLE ANALYSIS
• Job analysis – is a process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job.
- is the foundation of all assessment and selection decisions.
- it is simply a process of collecting information about a job.
• The process of job analysis results in two sets of data which are recorded separately for
references:
1. Job description and
2. Job specification
Job Analysis data is used to:
1. Establish and document competencies required for a job;
2.Identify the job-relatedness of the tasks and competencies needed to successfully perform the
job; and
3. Provide a source of legal defensibility of assessment and selection procedures.
4. Job requirements,
5. Training needs
6. Position classification grade levels
7. Promotions and performance appraisals.
Steps in Job Analysis:
1. Collecting and recording job information.
2. Checking the job information for accuracy.
3. Writing job description based on the information.
4. Using the information to determine the skills, abilities and knowledge that are required on the
job.
5. Updating the information from time to time.
Role
• A role is an asset of expectations people have about the behavior of person in a position.
• A position holder may perform three types of roles in day-to-day life:
namely:
▫ 1. expected role - is what other people expect from a person
2. perceived role - is how the individual thinks he should behave to fulfill the expected
role.
3. actual role - enacted role or the actual role is the way the person actually behaves in
an organization.
Steps in Role Analysis:
1. Identify the objectives of the department and its functions
2. The role incumbent is asked to state his key performance areas and his understanding
of the roles to be played by him.
3. Other role partners (boss, subordinate, peers, etc.) are asked to state their expectations
from the role incumbent.
4. The incumbent’s role is clarified and expressed in black and white (called role
description) after integrating the diverse viewpoints expressed by various role partners.
SKILLS ANALYSIS
• There are two types of skills which job applicants must acquire, and which employers seek:
1. Professional or technical skills- specific skills which required by a person’s career
field, acquired through study and career- related work experience.
2. Employability skills- transferable skills which are common to all work roles and work
places, acquired through study and career- related work experience, but also through a
range of work and other life experiences such as extra- curricular activities and travel.
• There are several ways of improving one’s skills such as:
1. Study program-
2. Work experience- internships and other activities such as volunteering and part
3. Targeted skills training-
- accredited certificates and diplomas
- short courses
- professional development activities/skills set
COMPETENCY ANALYSIS
• Competency analysis is simply defined as an analysis of the competencies of a given
company.
• These actions that a company performs better than most are referred to as core
competencies.
• Core competencies have three characteristic that distinguish them from noncore
competencies.
1. relevant
2. difficult to imitate - unique product
3. have a broad application - does not focus on smaller, niche markets
• Competency analysis is a powerful tool used to gauge the knowledge, skills and process
capability required for accompany to be able to offer its products or services.
• While competency analysis is generally used in production environments, this type of analysis
can form a basis for various practices within the company and can be completed at a product,
project or company level.
JOB DESIGN AND ENRICHMENT
• Job design is a work arrangement (or rearrangement) aimed at reducing or overcoming job
dissatisfaction and employee alienation arising from repetitive and mechanistic tasks.
• Hackman and Oldham identified five factors of job design that typically contribute to people’s
enjoyment of a job:
1. Skill Variety- Increasing the number of skills that individuals use while performing work.
2. Task Identify- Enabling people to perform a job from start to finish.
3. Task Significance- Providing work that has a direct impact on the organization or its
4. stakeholders.
5. Anatomy- Increasing the degree of decision making, and the freedom to choose how
and when work is done.
6. Feedback- Increasing the amount of recognition for doing a job well and communicate
the results of people’s work.
Benefits of Job Design
1. Employee Input - Employees have the option to vary tasks as per their personal and
social needs, habits and circumstances in the workplace.
2. Training- Training is an integral part of job design. To be aware of what their job
demands and how it is to be done.
3. Work/Rest Schedules- defining the number of hours an individual has to spend in his/her
job.
4. Adjustments- A good job designs allows for adjustments for physically demanding jobs
by minimizing the energy spent doing the job and by aligning the manpower
requirements for the same.
• Job design is a continuous and ever evolving process that is aimed at helping employees
make adjustments with the changes in the workplace. The end goal is reducing dissatisfaction,
enhancing motivation and employee engagement at the workplace.
Factors Affecting Job Design
• 1. Proper scope of job- If the scope is narrow (less), then the job will not be challenging, the
manager will not get satisfaction after completing an easy job. If the scope of the job is very
wide, then the manager will not be able to handle it properly. This will cause stress, frustration
and loss of control. Therefore, scope of the job must be balanced and proper.
• 2. Full-time challenging of the job- The job should be challenging that it takes up the full-time
and effort of the manager. The service of the manager must be fully utilized. If not, the manager
will have a lot of free time and use this to interfere in the work of his subordinates. This will
cause problems and conflicts because subordinates do not like unnecessary interference from
their superiors.
• 3. Managerial skills- All managers do not have equal skills. So, jobs should be designed after
considering the skills of the manager. A manager having a high level of skill should be given
very challenging jobs while a manager having a low level of skill should be given fewer
challenging jobs. Jobs must be made flexible so that it can be change according to the skills of
the manager.
• 4. Organization’s requirements- Jobs must be designed according to the requirements of the
organization. We cannot use the same job design for all organizations.
• 5. Individual likes and dislikes- Some people like to work alone while some people prefer to
work in groups. Some people want to do only planning and decision making while other people
like to implement these plans and decision.
• 6. Organizational structure - Individual jobs must fit into the organization’s structure.
• 7. Technology- An organization having a high level of technology will have different job
designs compared to an organization having a low level of technology.
Job Design Strategies
1. JOB SIMPLIFICATION
2. JOB ROTATION
3. JOB ENLARGEMENT
4. JOB ENRICHMENT
5. JOB DESCRIPTION
6. JOB SPECIFICATION
• 1. JOB SIMPLIFICATION - is a design method whereby jobs are divided into smaller
components and subsequently assigned to workers as whole jobs. Simplification of work
requires that jobs be broken down into their smallest units and then analyzed.
• 2. JOB ROTATION - refers to the movement of an employee from one job to another. Jobs
themselves are not actually change; only the employee is rotated among various jobs.
• 3. JOB ENLARGEMENT- expands job horizontally. It increases job scope, that is, it increases
the number of different operations required in a job and the frequency with which the job cycle is
repeated. It reduces boredom and monotony by providing the employee more variety of tasks in
the job
• 4. Job enrichment - involves adding motivation factors to jobs, it is a vertical expansion of the
job by adding more responsibility and freedom to do it. It increases job depth, which refers to the
degree of control employees have over their work. It can improved the quality of work output,
employee motivation, and satisfaction.
• 5. Job description - It gives information about the scope of job activities, major responsibilities
and positioning of the job in the organization. This information gives the worker, analyst, and
supervisor with a clear idea of what the worker must do to meet the demand of the job.
• 6. Job specification is written statement of qualifications, traits, physical and mental
characteristics that an individual must possess to perform the job duties and discharge
responsibilities effectively.
• Usually this information includes:
1. Physical specifications
2. Mental specifications
3. Emotional and social specifications
4. Behavioral Specifications-

CHAPTER 9. RECRUITMENT
RECRUITMENT STRATEGIES

• HR professionals must have a recruiting plan before posting any job description.
• The plan should outline where the job announcements will be posted and how the
management of candidate materials, such as résumés, will occur. Part of the plan should
also include the expected cost of recruitment.
• Recruiting should be done in a variety of sources to ensure diversity.
• In countries with high unemployment, applications are flooding for one job. In an up
economy, you may not receive many applications and should consider using a variety of
sources.
• Example of Recruitment technique:
• Southwest Airlines are known for their innovative recruitment methods. Southwest looks
for “the right kind of people” and are less focused on the skills than on the personality of
the individual (Carey, 2011).
• When Southwest recruits, it looks for positive team players that match the underdog,
quirky company culture. Applicants are observed in group interviews, and those who
exhibit encouragement for their fellow applicants are usually those who continue with the
recruitment process
Recruiters
• Recruiters are excellent at networking and usually attend many events where possible
candidates will be present. Recruiters keep a constant pipeline of possible candidates in case a
position should arise that would be a good match.
1. Executive search firm. - These companies are focused on high-level positions, such as
management and CEO roles. They typically charge 10–20 percent of the first-year
salary, so they can be quite expensive. However, they do much of the upfront work,
sending candidates who meet the qualifications.
2. Temporary recruitment or staffing firm - Suppose your receptionist is going on
medical leave and you need to hire somebody to replace him, but you don’t want a long-
term hire. You can utilize the services of a temporary recruitment firm to send you
qualified candidates who are willing to work shorter contracts.
3. Corporate recruiter - This type of recruiter may be focused on a specific area, such as
technical recruiting. Corporate recruiters work for the organization and function as a part
of the HR team.
4. Contingent recruiter - is paid only when the recruiter starts working, which is often the
case with temporary recruitment or staffing firms.
5. The retained recruiter gets paid up front (in full or a portion of the fee) to perform a
specific search for a company.
• While the HR professional, when using recruiters, may not be responsible for the details of
managing the search process, but still responsible for managing the process and the recruiters.
The job analysis, job description, and job specifications still need to be developed and
candidates will still need to be interviewed.
Recruitment Sources
1. Campus recruiting - can be an effective way of recruiting for entry- level positions. This
type of recruiting may require considerable effort in developing relationships with college
campuses.
2. Professional association - Posting announcements on their websites can be an
effective way of targeting for a specific job.
3. Company website - for job postings, as well as other websites such as Monster and
CareerBuilder.
4. Social media - Usage of websites such as Twitter and Facebook can get the word out
about a specific job opening or give information about the company.
5. Job Fairs is another option. Some organizations have specific job fairs for their
company. Others may attend industry or job-specific fairs to recruit specific individuals.
6. SIGs, or special/specific interest groups - are usually very specialized includes a
discussion board for posting of job announcements.
7. Employee referrals - usually incentives are offered to the employee for referring people
they know. However, diversity can be an issue, as can nepotism.
Four Internal Factors of Recruitment
• For the internal mechanism of the organization, some of the internal factors that affect
recruitment are as follows:
 1. Size of the organization - The recruitment process is affected by the size of the
organization to a large extent. Experience suggests that larger organizations recruit
more candidates than small ones.
• Large organizations find recruitment less problematic than small organizations.
2. Recruiting Policy - The recruitment policy of the firm also affects the recruitment
process. This policy concerns candidates outside the organization, whereas others want
to recruit from internal sources.

3. Image of the organization - The image or goodwill of the organization also affects
recruitment. Organizations having a good image can attract potential and competent
candidates to a large extent.
• Good public relations, rendering public services, etc., help enhance the organization’s image
and reputation.
4. Image of job - Jobs had a good image in terms of better remuneration, working
conditions, promotion, career development opportunities, etc. can attract potential and
qualified candidates to a large extent.

5 External Factors of Recruitment

• External factors concern the environmental changes in the organization’s external
environment.
1. Demographic factors - population regarding age, sex, occupation, religion,
composition, ethnicity, etc. Demographic factors have a profound influence on the
recruitment process.
2. Labor market - The labor market constitutes the force of demand and supply of labor of
particular importance.
• For instance, the recruitment process evolves if the demand for a particular skill is high relative
to its supply. Contrary to it, if the supply is more than the demand, the recruitment process will
be easier.
3. Unemployment situations - The unemployment rate of a particular area is yet another
influencing factor in the recruitment process. If the unemployment rate is high, the
recruitment process will be simpler and vice versa.
4. The social and political environment - The forces of the social and political
environment also influence recruitment policy.
• Ex. government policies and regulations
5. Legal considerations - Legal considerations concerning employment provision for
underprivileged castes will positively impact the organization’s recruitment policy.
HR Challenges in Recruitment
 1. Adaptability to globalization - The HR professionals are expected and required to
keep in tune with the changing times, i.e., the changes occurring across the globe. HR
should maintain the timeliness of the process.
2. Lack of motivation - Recruitment is considered to be a thankless job. Even if the
organization achieves results, the HR department or professionals are not thanked for
recruiting the right employees and performers.
3. Process analysis - The immediacy and speed of the recruitment process are the main
concerns of HR recruitment. The process should be flexible, adaptive, and responsive to
the immediate requirements.
• The recruitment process should also be cost-effective.
4. Strategic prioritization - The emerging new systems are both an opportunity and a
challenge for HR professionals.
• Therefore, reviewing staffing needs and prioritizing the tasks to meet the changes in the
market has become a challenge for recruitment professionals.
5. Technological changes - The decision to strategy development relates to the methods
used in recruitment and selection. The available technology mainly influences this
decision.
6. Sources of recruitment
• A. internal sources (present employees, employee referrals, former employees, and previous
applicants)
• B. external sources (trade associations, advertisements, employment exchanges, campus
recruitment, walk-ins and write-ins, consultants, radio and television, competitors and E-
recruiting, etc.)
7. Competition in the market - Rival firms can be a source of recruitment.
• Popularly called poaching or raiding, this method involves identifying the right people in the
rival companies, offering them better terms, and luring them away.
• To reduce costs, organizations look into labor markets likely to offer the required job to
seekers.

CHAPTER 10. SELECTION

SELECTION STRATEGIES
Introduction:
• Once you have developed your recruitment plan and the recruited people you can begin the
selection process.
• The selection process refers to the steps involved in choosing people who have the right
qualifications to fill a current or future job opening.
• Usually, managers and supervisors will be ultimately responsible for the hiring of individuals,
but the role of human resource management (HRM) is to define and guide managers in this
process
• The time involved in the hiring process to review résumés, weight the applications, and
interview the best candidates takes time, costs money.
• The selection process is expensive. There are costs in testing the candidates.
• Because of the high cost, it is important to hire the right person from the beginning and ensure
a fair selection process.

Eight Steps in the Selection Process

• Initial Screening
• Completion of the Application Form
• Employment Tests
• Job Interview
• Conditional Job Offer
• Background Investigation
• Medical/Physical Examination
• Permanent Job Offer

Important Aspects of the Selection Process

1. Criteria development - All individuals involved in the hiring process should be properly
trained on the steps for interviewing, including developing criteria, reviewing résumés,
developing interview questions, and weighting the candidates.
• Criteria development means determining which sources of information will be used and how
those sources will be scored during the interview.
2. Application and résumé review. - Once the criteria have been developed, applications
can be reviewed.
3. Interview - After the HR manager and/or manager have determined which applications
meet the minimum criteria, he or she must select those people to be interviewed. If
 there’s no enough time to conduct it with many candidates, is it sometimes narrowed
with a phone interview.
4. Test administration - Any number of tests may be administered before a hiring decision
is made. These include drug tests, physical tests, personality tests, and cognitive tests.
Some organizations also perform reference checks, credit report checks, and
background checks.
• Employee selection is done after all test are through.
5. Making the offer - The last step in the selection process is to offer a position to the
chosen candidate. Offer via e-mail or letter is more formal and the usual part of this
process. Compensation and benefits will be defined in an offer.