HRM Prof. Lina S.

Patil

Unit 2 -Process of procurement

Human resources planning

● Concept –

Human resource planning is when organizations determine the staffing support they need
to meet business needs and customer demands. Panning is the most important and primary
function of management. It is a process of selecting the organizational objectives and
taking actions to achieve those objectives. The
planning of human resources is a major managerial responsibility. It is important because
human resources provide a firm with a competitive advantage. In the age of competition,
firms are focusing their attention on employee knowledge and skills.

Human resources are going to occupy the central stage of human activities, especially in
industry and business. Given its importance in organizational 1effectiveness, separate HRP
departments have been set up in most important business organizations.

● Definition of Human Resource Planning.

● Robbins (2001) -“the process by which an organization ensures that it has the right
number and kinds of people at the right places, at the right time, capable of effectively and
efficiently completing those tasks that will help the fulfill organization’s overall
objectives.”

● Coleman Bruce (1997)- HRP is the process of determining human resources

HRM Prof. Lina S. Patil

requirements and meeting those requirements to carry out the integrated plan of the
organization.

● Evanceivich (1999)- Human resource is an asset; it is an asset that appreciates and

grows over time

● HRP consists of the following elements:

● Establishing and recognizing future job requirements,

● Identifying deficiency in terms of quantity,
● Identifying deficiency in terms of quality and specification,

● Developing the available workforce, and

● Ensuring the effective utilization of the workforce.
● Identifying the sources of the right type of man,

Need of Human Resource Planning:

The need is realized for the following reasons:

Despite growing unemployment, there has been shortage of human resources with,
required skills, qualification and capabilities to carry on works.

A large no. of employees, who retire, die, leave organizations, or become incapacitated
because of physical or mental ailments, need to be replaced by the new employees.

.HRP is also essential in the face of marked rise in workforce turnover which is
unavoidable & even beneficial. Voluntary quits, discharges, marriages, promotions
&fluctuations in business are the examples of factors leading to warkforce turnover in
HRM Prof. Lina S. Patil

organizations.

Technological changes &globalization usher in change in the method of products

&distribution of production as well services in mgmt. techniques. These changes also
require a change in the skills of employees, as well as change in the no. of employees
required.

HRP is also needed in order to meet the needs of expansion and diversification
programmes of an organization.

The need for HRP is also felt in order to identify areas of Surplus personnel or areas in
which there is shortage of personnel. Then, in case of surplus personnel, it can be
redeployed in other areas of organization. Conversely, in case of shortage of personnel,it
can be made good by downsizing the work force

Characteristics of Human Resource Planning

1. Future-Oriented -Human resource planning is prepared to assess the future

requirement of the workforce in the organization. It helps identify the size and
composition of resources for future purposes.

2. Continuous process - resource planning is a continuous process. The human resource

planning prepared today may not be applicable for the future due to the ever changing
external forces of the environment. Hence, to address such changing factors, human
resource planning needs to be revised and updated continuously

3. Optimum Utilization of Human Resources - resource planning focuses on optimum

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utilization of resources in the organization. It checks how employees are utilized

productively. It also identifies employees’ existing capabilities and future potentialities to
perform the work.

4. Right kind and numbers -Human resource planning determines the right number and
kind of people at the right time and right place who can perform the required jobs.

5. Determination of Demand and Supply-Human resource planning is determining the

demand for and supply of human resources in the organization. Then a match between
demand and supply estimates the optimum level of human resources.

6. Environmental Influence-Environmental changes influence human resource planning;

hence, it is updated as per the change occupied in the external environment.

7. Related to Corporate Plan-Human resource planning is an integral part of the overall

corporate plan of the organization. It can be formulated at strategic, tactical, and
operational levels.
8. A Part of the Human Resource Management System-As a part of the total human
resource management system, human resource planning is regarded as a component or
element of HRM concerned with the acquisition and assessment of the workforce. It
serves as a foundation for the management of human resources effectively and efficient

● Benefits of Human Resource Planning

1. Nature of Human Resources

A) First, for higher skills, a very long time is required for workers to achieve full
productivity.
B)
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C) a person generally achieves higher productivity the longer he is on the job.

D) a person’s mental satisfaction affects his productivity.

E) investment in human beings belongs to the individual who may take his skills where he
goes

2. Supply of Skilled Manpower-Talented and skilled human resources have become

scarce resources and are always in short supply. Human resources planning is necessary
for the long-run survival of the business firm.

3. Rapid Technological Change- The direction of technological change has decreased

jobs for unskilled workers but has increased the demand for new skills. Technological
change makes re-training a must for many current jobholders.

4. Cost of Recruitment and Hiring-Highly skilled personnel are in short supply, and it
is very costly to hire and maintain them.Recruitment and training costs, pensions, gratuity,
provident funds, and other fringe benefits raise the costs of hiring a new worker.

5. Increased Mobility-Increased mobility of human resources has created a problem for

management to retain qualified employees. Proper workforce planning will reduce the rate
of turnover

6. Reduction of Wastage-A proper workforce policy will reduce the wastage rate. It is
also referred to as labor turnover.

7. Resources as Corporate Assets-Staffing planning stresses the value of human

resources as corporate assets. Management has learned that if it neglects the individual, he
HRM Prof. Lina S. Patil

is not likely to develop into the kind of performer that the firm wants.

8. Size the Firm-Interest in human resources planning is increasing because the size of
the organization is continually increasing.Staffing planning helps the company have the
workforce it needs to achieve its objectives.

9. Profitability-In a profit system, the basic motivation for human resources planning,
like all other firm activities, would be its contribution to profitability. The fact that
employee productivity is a major factor in profitability has stimulated interest in the
incentive systems to motivate the worker.
10. Management Development-Proper human resources planning can ensure the
development of managers through proper training program.

● Factors that affect Human Resource Planning

1. Employment-HRP is affected by the employment situation in a country. In countries

where there is greater unemployment, there may be more pressure on the government to
appoint more people. Similarly, some companies may have a shortage of skilled labor, and
they may have to appoint people from other companies.

2. changes in society-Technology changes quickly, and new people having the required
knowledge are required for the company.

3. Organizational changes-Changes take place within the organization from time to

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time.

4. Economic factors-How much money is available for salaries, training, and equipment
is the most immediate concern in human resource planning. However, external economics
plays an equally critical role.

5. Social factors-Social factors may influence the organization’s HR planning. There is a

clear discrepancy of one social group. It’s a good idea to build in ways of opening up new
opportunities.

6. Technological factors-New technology brings new skill requirements, so companies

always need to be aware of proficiencies and training needs when planning human
resources.

7. Legal factors-Employment law is the most significant sector of the legal system that
affects human resource planning, it changes all the time. HR managers must keep
themselves up to date and have an employment law specialist available to consult if
necessary.
8. Environmental factors-Environmental factors might include where the business is
located about finding sufficient appropriate staff. A simple example of environmental
factor affecting human resource planning is the consideration of how the employees get to
work safely during extreme weather.

9. Labor market-When one talks about labor supply, the following deserve due
consideration: the size, age, gender, and educational composition of the population, the
demand for goods and services in the country, the nature of production technology, and
the employability of the people.
HRM Prof. Lina S. Patil

● Environmental

HR managers rarely have the privilege of operating in a stable and predictable

environment. Political, social and economic changes affect all organisations Personnel
planners deal with environmental uncertainties by carefully formulating recruitment,
selection, and training and development policies and programmes. Balancing mechanisms
are built into the HRM programme through succession planning, promotion channels,
layoffs, flexitime, job sharing, retirement, VRS and other personnel related arrangements
● Organisational Objectives and Policies :-

HR plans need to be based on organisational objectives. In practice, this implies that the
objectives of the HR plan must be derived from organisational objectives. Specific
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requirements in terms of number and characteristics of employees should be derived from

the organisational objectives.
As was stated in the previous chapter, organisational objectives are defined by the top
management and the role of HRP is to subserve the overall objectives by ensuring
availability and utilisation of human resources.
Once the organisational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objectives with regard to HR utilisation in
the organisation. In developing these objectives, specific policies need to be formulated to
address the following ques- tions:15
1. Are vacancies to be filled by promotions from within or hiring from outside?
2. How do the training and development objectives interface with the HRP objectives?
3. What union constraints are encountered in HRP and what policies are needed to handle
these constraints?
4. How to enrich employee's job? Should the routine and boring jobs continue or be
eliminated?
5. How to downsize the organisation to make it more competitive?
6. To what extent production and operations be automated and what can be done about
those displaced?
7. How to ensure continuous availability of adaptive and flexible workforce?
● HR Demand / Needs Forecast :-

Demand forecasting is the process of estimating the future quantity and quality of people
required. The basis of the forecast must be the annual budget and long-term corporate plan,
translated into activity levels for cach function and department. In a manufacturing
company, the sales budget would be translated into a production plan giving the number
and type of products to be produced in cach period. From this information, the number of
hours to be worked by each skilled category to make the quota for each period, would be
computed." Once the hours are available, determining the quality and quantity of personnel
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will be the logical step.

Demand forecasting must consider several factors both external as well as internal. Among
the external factors are competition (foreign and domestic), economic climate, laws and
regulatory bodies, changes in technology, and social factors. Internal factors include budget
constraints, production levels, new products and services, organisational structure, and
employee separations. Demand forecasting is common among organizations, though they
may not do personnel-supply forecasting
● HR supply Forecast

HR Supply Forecast Personnel demand analysis provides the manager with the means of
estimating the number and kind of employees that will be required. The next logical step
for the management is to determine whether it will be able the required number of
personnel and the sources for such procurement. This information is provided by supply
forecasting, also called bench forecasting. Supply forecasting measures the number of
people likely to be avail- able from within and outside an organisation, after making
allowance for absenteeism, internal movements and promotions, wastage and changes in
hours, and other conditions of work.
Just as there are valid reasons why companies make demand forecast. there are enough
arguments for supply forecast. In fact, fewer organizations estimate HR supplies than
demand. Reasons for supply forecast are that it:
i ) helps quantify number of people and positions expected to be available in future to help
the organisation realise its plans and meet its objectives;
(ii) helps clarify likely staff mixes that will exist in the future:
(iii) asseSs existing staffing levels in different parts of the organisation;
(iv) prevents shortage of people where and when they are most needed, and
(v) monitors expected future compliance with legal requirements of job reservations.
The supply analysis covers:
1. Existing human resources,
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2. Internal sources of supply, and

3. External sources of supply

● HR Programming

Once an organisation's personnel demand and supply are forecast, the two must be
reconciled or buf- anced in order that vacancies can be filled by the right employees at the
right time. HR programming. the third step in the planning process (see Fig. 4.4), therefore,
assumes greater importance.
● HR plan Implementation

HR Plan Implementation Implementation requires converting an HR plan into action. A

scries of action programmes are initiated as a part of HR plan implementation. Some such
programmes are recruitment; selection and placement; training and development; retraining
and redeployment; the retention plan; the redundance plan; and the succession plan. All
these actions will be covered in detail in subsequent chapters. In this context, a brief note of
cach is given (see also Fig. 4.8).
● Control and Evaluation of Programme :-

Control and evaluation represents the fifth and the final phase in the HRP process (see Fig.
4.4). The HR plan should include budgets, targets and standards. It should also clarify
responsibilities for implementation and control, and establish reporting procedures which
will enable achievements to be monitored against the plan. These may simply report on the
numbers employed against establishment (identifying both those who are in post and those
who are in pipe line) and on the numbers recruited against the recruitment targets.33 But
they should also report employment costs against budget, and trends in wastage and
employment ratios.
HRM Prof. Lina S. Patil

● Recruitment, Selection and Placement

After the job vacancies are known, efforts must be made to identify sources and search for
suitable candidates. The selection programme should be professionally designed and,
among other considerations, special care must be taken to ensure compliance with the
reservation policies of the govermment. Usually, companies hire for specific job openings.
However, some companies hire a group of quali- fied individuals (management trainees, for
example), not for specific jobs. In these cases, the groups of trainces move through a
variety of assignments, over a year or two, and then they are placed on specific jobs. An
effort is made to match individual job preferences and qualifications with organisa- tional
needs. Employees are hired when there are job vacancies. However, employers should
consider other alter- natives to hiring additional full-time employees. For instance,
employers might encourage employees nearing retirement age to continue working by
building an increment in the pension formula to reward

● Requirements for Effective HRP Successful HR planning requires:

● HR personnel understand the HR planning process,

● Top management is supportive,
● The communications between HR staff and line management are healthy,

● Barriers to HRP

Human Resource Planners face significant barriers while formulating an HRP. The major
barriers are elaborated below:

1) HR practitioners are perceived as experts in handling personnel matters, but are not
experts in managing business. The personnel plan conceived and formulated by the HR
practitioners when enmeshed with organizational plan, might make the overall strategic
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plan of the organization ineffective.

2) HR information often is incompatible with other information used in strategy

formulation. Strategic planning efforts have long been oriented towards financial
forecasting, often to the exclusion of other types of information. Financial forecasting
takes precedence over HRP.
HRM Prof. Lina S. Patil

3) Conflict may exist between short term and long term HR needs. For example, there
can be a conflict between the pressure to get the work done on time and long term needs,
such as preparing people for assuming greater responsibilities. Many managers are of the
belief that HR needs can be met immediately because skills are available on the market as
long as wages and salaries are competitive. Therefore, long times plans are not required,
short planning are only needed.

4) There is conflict between quantitative and qualitative approaches to HRP. Some people
view HRP as a number game designed to track the flow of people across the department.
Others take a qualitative approach and focus on individual employee concerns such as
promotion and career development. Best result can be achieved if there is a balance
between the quantitative and qualitative approaches.

5) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly

an HR department function. Successful planning needs a co-ordinated effort on the part of
operating managers and HR personnel.

2.2. Recruitment:

Concept-

human resource planning should identify human resource needs. Once these needs are
identified, HR managers can do something to meet them.A company’s growth is measured
according to its profits and losses. The cost of unnecessary hiring and/or hiring the wrong
person can be detrimental to a company’s bottom line. Before engaging in the recruitment
process, management should clearly understand the company’s operational requirements,
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projected revenues, and business goals and then determine the types of skills and
competencies required to meet those needs. Successful human resource planning should
identify human resource needs, as mentioned earlier. The next step is the acquisition
function of human resource management. Recruitment is the first stage of the acquisition
function.
HRM Prof. Lina S. Patil

Keith Davis, -“Recruitment is the process of finding and attracting capable applicants for
employment. The process begins when recruits are sought and ends when their
applications are submitted.”

Mart and T. Telsang, -“Recruitment is the generating of applications or applicants

for a specific position.”

Decenzo and S. P. Robbins- “Recruitment is the process discovering the potential for
actual or anticipated organizational vacancies.”

The result is a pool of qualified applicants from which new employees are selected. The
purpose of recruitment is to locate sources of the workforce to meet job requirements and
job specifications.

Recruitment is a two-way street. Both the recruiter and the recruiter have a right to choose
each other.

Purpose of Recruitment-

● Attract and encourage more and more candidates to apply to the organization.
● Create a talent pool of candidates to enable the selection of the best candidates for the
organization.
● Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activity.
● Recruitment is the process that links the employers with the employees.
● Increase the pool of job candidates at minimum cost.
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● Help increase the success rate of the selection process by decreasing the number of
visibly underqualified or overqualified job applicants.
● Help reduce the probability that job applicants, once recruited and selected, will leave
the organization only after a short period of time.
● Meet the organization’s legal and social obligations regarding the composition of its
workforce.
● Begin identifying and preparing potential job applicants who will be
appropriate candidates.
HRM Prof. Lina S. Patil

● Increase organization and individual effectiveness of various recruiting

techniques and sources for all types of job applicants.

● Factors affecting on Recruitment-

The recruitment function of the organizations is affected and governed by a mix of various
internal and external forces. The internal forces are the factors that the organization can
control.

And the external factors are those factors that the organization cannot control. The internal
and external forces affecting the recruitment function of an organization are:

Internal Factors of Recruitment

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.

Recruiting Policy-The recruitment policy of the firm also affects the recruitment process.
This policy concerns candidates from outside the organization, whereas others want to
recruit from internal sources.

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.
HRM Prof. Lina S. Patil

Image of job- Jobs had a good image in terms of better remuneration, working conditions,
promotion, career development opportunity, etc. can attract potential and qualified
candidates to a large extent.

External Factors of Recruitment-

HRM Prof. Lina S. Patil

Demographic factors-Demography is studying the human population in terms of age,

sex, occupation, religion, composition, ethnicity, etc. The demographic factors have a
profound influence on the recruitment process.

Labor market-The labor market constitutes the force of demand and supply of labor of
particular importance.For instance, if demand for a particular skill is high relative to its
supply, the recruitment process evolves more. Contrary to it, if the supply is more than
demand, the recruitment process will be easier.

Unemployment situations-The unemployment rate of a particular area is yet another

influencing factor of the recruitment process. If the unemployment rate is high, the
recruitment process will be simpler and vice versa.

The social and political environment-The forces of the social and political environment
also influence recruitment policy.For instance, the change in government can directly
impact the company’s recruitment policy due to a change in government rules and
regulations.

Legal considerations-Legal considerations concerning employment provision for

underprivileged castes will positively impact the organization’s recruitment policy.

● Sources of Recruitment-

There are basically two sources of supply from where potential employees can be drawn.
These are internal sources and external sources. Internal sources indicate recruiting
qualified people from within the organization itself (from the present working force).
HRM Prof. Lina S. Patil

When reference is made to the number of employees already employed by the

organization, we speak of the internal supply.

Whenever any vacancy occurs, someone from within the organization is upgraded,
promoted, or transferred to another department also goes into the category of an internal
source of recruitment.
External recruitment is concerned with generating a pool of qualified candidates through
external sources of employment.

The external sources of recruitment include – employment at the factory gate,

advertisements, employment exchanges, employment agencies, educational institutes,
labor contractors, recommendations, etc.

Advantages and disadvantages are associated with promoting from within the organization
and hiring outside the organization to fill openings.

Internal sources-

Transfers The employees are transferred from one dept. to another according to their
efficiency, experience and the need of an other

Promotions: The employees are promoted from one dept. to another with more benefits
more responsibities

Demotion: Employees are generally been punished or negatively motivated as per their
poor performance.

Retired /Retrenched Employees: in case of shortages, even retired are retrenched

HRM Prof. Lina S. Patil

employees, even from other establishments, can be selected for probable recruitments
w.r.t. their skills, competencies & educational background. if the employees are from
same organization then it will save their grooming/induction time since they know the
organization culture already.

External source-

Press Advertisement: vacancies or probable vacancies are generally been advertise in

newspaper s/journals/trade magazines, since it has got wide circulations it will be read by
World at large.

Educational Institutes:Various management institutes, Eng. colleges and some other

college are good sources of getting well qualified fresher’s Many a times the institutes or a
college provide facilities for campus selection and hence generally such recruitments are
Called as campus recruitments.

Placement agencies/Outsourcing: Many consulting firms are engaged in the placement

work. They perform recruitment work on behalf of their client organization for well
qualified personnel's, for a fees. This is also known as Recruitment Process Outsourcing
(RPO)

Employment Exchanges: Govt. establishes public employment exchanges throughout the

country which provides jab information to job seekers and help employers in identifying
suitable candidates. These are the major sources of recruitment now-a-days.

Labor Contractors & Recruitment at factory Gate: Unskilled workers may be

recruited at the factory gate or though the Labor Contractors. These may be employed
HRM Prof. Lina S. Patil

whenever a permanent worker 1s absent. More efficient among these may be recruited to
fill Permanent vacancies too.

Employee Referrals: Many organizations have structured system where the current
employees of the organization can refer their friends and relatives for some position in
their organization, Also, the office bearers of trade unions are often aware of the suitability
of candidates. Recruitment Management can inquire these leaders for suitable jobs. In
some organizations these are these are formal agreements to give priority in recruitment to
the candidates recommended by the trade union.

Unsolicited applicant: Many job seekers vsit the office of well-known companies on
their own. Such callers are considered nuisance to the daily work routine of the enterprise.
But can help in creating the talent pool or the database of the probable candidates for the
organization

▪ Process of Recruitment:

The process of Recruitment comprises of Locating. identifying & Attracting the capable
applicants for jobs available in the organization. Hence accordingly the process comprises
of following steps:

1.Recruitment Planning. 2.Strategy Development, 3.Searching

4.Screening& Evaluation, 5.Selection & Induction.

1. Recruitment Planning: The first step involved in the recruitment process is planning
Here, planning involves to draft a comprehensive job specification for the vacant position,
outlining its major and minor responsibilities; the skills, experience and qualifications
needed; grade and level of pay; starting date; whether temporary or permanent; and
HRM Prof. Lina S. Patil

mention of special conditions, if any, attached to the job to be filled.

2. Strategy Development: Once it is known how many with what qualifications of

candidates are required, the next step involved in this regard is to devise a suitable strategy
for recruiting the candidates in the organization. The strategic considerations to be
considered may include issues like- whether to prepare the required candidates themselves
or hire it from outside, what type of recruitment method to be used, what geographical
area be considered for searching the candidates, which source of recruitment to be
practiced & what sequence of activities to be followed.

3. Searching: This step involves attracting job seekers to the organization. There are
broadly 2 sources used to attract candidates. These are: Internal, and External Sources

4. Screening & Evaluation: screening: Though some view screening as the starting point
of selection, normally it as an integral part of recruitment. The reason being the selection
process starts only after the application. Job specification is invaluable in screening.
Applications are against the qualification, knowledge, skills, abilities, interest &
experience mentioned in the job specification. Those who do not qualify are straightway
eliminated from the selection process. The techniques used for screening candidates vary
depending on the source of supply & method used for recruiting. Preliminary applications,
de-selection tests & screening interviews are common techniques.

Evaluation: Given the considerable cost involved in the recruitment process its control is,
therefore, imperative. The costs generally incurred in a recruitment process includes. 1.
Salary of recruiters; 2.Cost of time spent for preparing job
analysis, advertisement, etc. 3. Administrative expense 4.Cost of outsourcing or overtime
while vacancies remain unfilled, and candidates.
HRM Prof. Lina S. Patil

2.3 SELECTION

● Concept-
Selection is the process of choosing from a group of applicants those individuals best a
particular position, Most managers recognize that employee selection is one of their most
difficult, and most important, business decisions. The basic purpose is to choose the
individual who can most successful perform the job, from the pool of qualified candidates,
this process involves making Judgment -not about the applicant, but about the fit between
the applicant and the job by considering knowledge, skills, and abilities and other
characteristics required to perform the job Selection procedures are not carried out through
standard pattern and steps in this. Process can vary from organization to organization some
steps performed and considered important by one organization can by other organization.
To met this goal, the company obtains and assesses information about the applicants in
terms of age, qualifications, skills, experience, etc. of the job are matched with the profile
of Candidates. The mast suitable person is then picked up after eliminating the less
suitable applicants through successive stages of the selection process.

● Selection process

Steps in Selection Process

1. Initial Screening

The selection process often begins with an initial screening of applicants to remove
individuals who obviously do not meet the position requirements.

At this stage, a few straight forward questions are asked. An applicant may obviously be
unqualified to fill the advertised position, but be well qualified to work in other open
HRM Prof. Lina S. Patil

positions.
The Purpose of Screening is to decrease the number of applicants being considered for
selection. Personal Resume presented with the job application is considered a source of
information that can be used for the initial screening process.

2. Completion of the Application Form-Application Blank is a formal record of an

individual’s application for employment. The next step in the selection process may
involve having the prospective employee complete an application for employment.This
may be as brief as requiring only an applicant’s name, address, and telephone number. In
general terms, the application form gives a job- performance-related synopsis of
applicants’ life, skills and accomplishments.The specific type of information may vary
from firm to firm and even by job type within an organization.

3. Employment Tests-Personnel testing is a valuable way to measure individual

characteristics. Hundreds of tests have been developed to measure various dimensions of
behavior. The tests measure mental abilities, knowledge, physical abilities, personality,
interest, temperament, and other attitudes and behaviors.Evidence suggests that the use of
tests is becoming more prevalent for assessing an applicant’s qualifications and potential
for success.

4. Interview Planning-Interview planning is essential to effective employment

interviews. The physical location of the interview should be both pleasant and private,
providing for a minimum of interruptions. The interviewer should possess a pleasant
personality, empathy and the ability to listen and communicate effectively. He or she
should become familiar with the applicant’s qualifications by reviewing the data collected
from other selection tools. In
HRM Prof. Lina S. Patil

preparing for the interview, a job profile should be developed based on the job
description.

5. Conditional Job Offer-Conditional job offer means a tentative job offer that becomes
permanent after certain conditions are met. If a job applicant has passed each step of the
selection process so far, a conditional job offer is usually made. IN essence, the
conditional job offer implies that if everything checks out – such as passing a certain
medical, physical or substance abuse test – the conditional nature of the job offer will be
removed and the offer will be permanent.
6. Background Investigation-Background Investigation is intended to verify that
information on the application form is correct and accurate. This step is used to check the
accuracy of application form through former employers and references. Verification of
education and legal status to work, credit history and criminal record are also made.
Personal reference checks may provide additional insight into the information furnished
by the applicant and allow verification of its accuracy. Past behavior is the best predictor
of future behavior. It is important to gain as much information as possible about past
behavior to understand what kinds of behavior one can expect in the future.

7. Medical/Physical Examination- After the decision has been made to extend a job
offer, the next phase of the selection process involves the completion of a
medical/physical examination. This is an examination to determine an applicant’s physical
fitness for essential job performance.

8. Permanent Job Offer-Individuals who perform successfully in the preceding steps are
now considered eligible to receive the employment offer. The actual hiring decision
should be made by the manager in the department where the vacancy exists.
HRM Prof. Lina S. Patil

● Selection test-
1. Ability tests:
2. Aptitude test
3. Intelligence test:
4. Interest Test:
5. Personality Test:
6. Projective Test:
7. General knowledge Test:
8. Perception Test:

● Barrier of selection:-
The main objective of selection is to hire people having Competence and
commitment, This objective is often defeated because of certain barriers. The
impediments which check effectiveness of selection are-Perception, Fairness, Validity,
Reliability, and Pressure,
Perception:
Our inability to understand others accurately is probably the most fundamental barrier to
selecting right candidate. Selection demands an individual or a group to assess and
compare the respective competencies of others, with the aim of Choosing the right
persons for the jobs. But our views are highly personalized. We all perceive the world
differently Our limited perceptual ability is obviously a stumbling block to the objective
and rational selection of people.

Fairness:

in selection requires that no individual should be discriminated against on the basis of

HRM Prof. Lina S. Patil

religion, region, race or gender. But the low number of women and other less privileged
sections of society in the middle and Senior management positions and open
discrimination on the basis of age in job advertisements and in the selection process
would suggest that all the efforts to minimize inequity have not been very effective.

Validity:

Validity, as explained earlier, is a test that helps predict job performance of an incumbent.
A test that has been validated can differentiate between the employees who can perform
well and those who will not. However, a validated test does not predict job success
accurately, It can only increase possibility of success.

Reliability:

reliable method is one which will produce consistent results when repeated in similar
situations. Like a validated test, a reliable test may fall to predict jo performance with
precision.

Pressure:

Pressure is brought on the selectors by politicians, bureaucrats, relatives, and peers to

select particular candidate. Candidates selected because of compulsions are obviously not
the right ones. Appointments to public sector undertakings generally take place under
such pressure.

2.4 PLACEMENT –

Concept-

Placement is a process of assigning a specific job to each of the selected candidates. It

involves assigning a specific rank and responsibility to an individual. It implies
requirements of a job with the qualifications of the candidate.
HRM Prof. Lina S. Patil

The significance of placement as follows:

1. It improves emplayee morale

2. It helps in reducing employee

turnover. 3.it help reducing absenteeism.
4. it helps in reducing accident rates.

5. It avoids misfit between the candidate and the job.

6. It helps the candidate to work as per the predetermined objectives of the

organization

▪ Problems in Placement:- Placement Is a crucial task. Placement needs a clear-cut

match between the employees' skills, knowledge, value systems,
aptitude and attitude to the job description and job specification. Though the HR manager
takes all possible precautions;

some problems in placement crop up. These problems include:

a) Job expectations/description:-Sometimes the expectations from the employee are

more than the employee's abilities or skills. Then the HR manager finds the mismatch
between the job and the employee.

b) Employee Expectations:- An Employees expectation from the job is the main

source for the problems in placement. if the employee expects high salary, independent
and challenging work and the job offers low salary, dependent and routine work, the
employee finds himself misfit to the job.

c) Social and Psychological Factors: The social and psychological factors involved in
team work or group formation sometimes results in mismatch
HRM Prof. Lina S. Patil

d) Changes in Organizational structure: The business strategies like mergers,

acquisitions, downsizing, delayering etc. result in changes in organizational structure and
thereby changes in the jobs. These changes result in misfit between the employee and the
job.
e) Change in Technology: The technological changes bring many radical changes in job
description & specification and thus result in mismatch between the job & employee.

● 2.5 induction /Orientation-

● Concept-
Once an employee is selected and placed on an appropriate job, the process of
Familiarizing him with the job and the organization is known as induction. Thus, we
can

say that- induction is the process of receiving and welcoming an employee when he first
joins the company and giving him basic information he needs to settle down quickly and
happily and stars work.

● Objectives of induction
Removes fears: A newcomer steps into an organization as a stranger. He is new to the
people, workplace & work environment. He not very sure about what he is supposed to
do. Induction helps a new employee overcome such fear. It assists the new employee in
knowing more about:
1. The job, its content, policies, rules & regulation
2. The people with whom he is supposed to interact.
3. The terms and conditions of employment
HRM Prof. Lina S. Patil

Creates a good impression: Another purpose of induction is to make the newcomer

feel at home and develop a sense of pride in the organization. Induction helps him to:
1.Adjust and adopt to new demands of the job. 2.Get
along with people.
Through induction, a new recruit is able to see more clearly as to what he is supposed to
do,how good the colleagues are, how important is the job, etc. He can pose questions and
seek clarifications on issues relating to his job it’s a positive step, in the sense; it leaves a
good impression about the company and the people in the minds of new recruits.They
begin to take pride in their work and are more committed to their jobs.

Act as a valuable source of information: Induction serves as a valuable source of

information to new recruits even through employee manuals/handbook. Informal
discussions with colleagues may also clear the fog surroundings on certain issues. The
basic purpose of Induction is to communicate specific job requirements to the employee,
put him at ease and make him feel confident about his abilities.

● Steps In Induction: -They are Suggested following steps in the induction programme:

1. welcome to the organization.

2. Explain about the company

3. show the location/department where the new recruit will work.

4. Give the company's manual to the new recruit.

5. Provide details about various work groups and the extent of unionism in
company.
HRM Prof. Lina S. Patil

6. Give details about pay, benefits, holidays, leave, etc. Emphasize the importance of
attendance or punctuality

7. Explain about future training opportunities and career prospects.

8. take the employee on a guided tour of buildings, facilities, etc. Hand him over to his
Supervisor.

● Problems of induction /Orientation:- An orientation progamme can go wrong for a

number of reasons. The HR department should try to avoid such errors. Some of them are:
▪Supervisor who is entrusted with the job is not trained or is too busy.
▪Employee is overwhelmed with too much information in a short time.
▪Employee overloaded with forms to complete.
▪Employee is given only martial tasks that discourage job interest and company
loyalty.
▪Employee is asked to perform tasks where there are high chances of failure that could
needlessly discouraged the employee
▪Employee is pushed into the job with a sketchy orientation under the mistaken
belief that ‘trial by fire' is the best orientation
▪Employee is forced to fill in the gaps between a broad orientation by the HR
department and a narrow, orientation at the departmental level.
▪Employee is thrown into action too soon
▪Employee's mistakes can damage the company
▪Employee may develop wrong perceptions because of short period spent on each Job.
HRM Prof. Lina S. Patil

● Topics of Induction Programme:-There are certain topics expected to be covered up

during the induction program of an employees, the general topics may be summarized as
below

Introductions

▪To Supervisors
▪To co-workers
▪To trainers
▪To Managers/Higher authorities where to report.

Organizational issues

▪Employees' title and department

▪Probationary period
▪Company policies and rules
▪History of company
▪Names and titles of key executives
▪Products/services offered
▪Layout of physical facilities
▪Overview of production process
▪Disciplinary procedures
▪Employees' handbook Safety steps

Job duties
▪Job location
▪Job tasks and Job objectives
▪Job safety needs
▪Relationship with other jobs
HRM Prof. Lina S. Patil

Employee benefits
▪Pay scales, pay days
▪Vacations, holidays
▪Rest pauses
▪Training avenues
▪Insurance, medical, recreation, retirement benefits
▪Counselling

● 2.6 concept
Promotion-

Promotion is vertical movement of an employee within the organization. In other word,

promotion refers to the upward movement of an employee from one job to another higher
one, with increase in salary, status and responsibilities.
Promotion may be temporary or permanent, depending upon the needs of the
organization. There can be dry promotion also where an employee is assigned to a higher
level job without increase in pay An example of dry promotion is a University Professor
made Head of the Department with no increase in salary. Promotion has an in-built
motivational value as it elevates the authority. power and status of an employee.
Within an organization. it is considered good personnel policy to fill vacancies in a
higher job through promotions from within because such promotions provide an
inducement and motivation to the employees and also remove feelings of stagnation-and
frustration

Demotion- Demotions just the opposite of promotion. It is the downward movement of an

HRM Prof. Lina S. Patil

employee in the organizational hierarchy with lower rank/status and pay. According to D.S.
Beach, "Demotion is the assignment of an individual to a job of
lower rank and pay usually involving lower level of difficulty and responsibility".
Demotion affects the status, pride, career and income of the employee. Research studies
'report that an employee who is demoted suffers from more severe jolt than it does when
Junior employee supersedes him/her. It is used as measure in case of serious oreaches of
duty on the part of an employee. It is often a preliminary to a dismissal. Since demotion
causes an insult and emotional jolts, it should be, therefore, used very tactfully and only in
case of absolute necessity.

TRANSFER- A transfer refers to lateral movement of employees within the same grade,
from one job to another. According to Filippo, a transfer is a change in the job
(accompanied by. A change in the place of the job) of a employee without a change in
responsibilities or remuneration. Transfer differs from promotion in the sense that the latter
involves a change of job involving increase in salary. Authority, status and responsibility,
while all these remain unchanged/stagnant in the case of former. Also, transfers are
frequent and regular whereas promotions are infrequent, if not irregular.
● Layoff
Layoff implies denial of employment to the employees for reasons beyond the control d
employer. Breakdown of machinery, seasonal fluctuations in demand, shortage of power
raw materials, etc. are the examples of reasons leading to lay off. According to Section 2
(KKK) of the Industrial Disputes Act, 1947, lay off is defined as "the failure, refusal or
inability of an employer, on account of shortage of coal, power or raw materials or
accumulation of stocks or breakdown of machinery or by any other reason, to give
employment to a workman whose name appears on the muster rolls of his industrial
establishment and who has not been retrenched". It is important to note that the employee-
HRM Prof. Lina S. Patil

employer relationship does not come to an end but is suspended for some time Layoff may
be temporary. In seasonal Industries like mines, sugar, etc., lay off occurs routinely. Layoff
also may occur for an indefinite time. When layoff becomes a permanent one, it is called
'retrenchment'.
 HRM Prof. Lina S. Patil

What is rightsizing? Definition and meaning

Rightsizing is the process of a company restructuring or reorganizing itself by reducing its

workforce, cost-cutting, or rearranging its upper management. The aim is to streamline the
business so that it can make a profit more effectively. Technically, the term means adapting the
company to market conditions, which in theory could also mean increasing the workforce.

Downsizing Concept
Downsizing literally means reducing the size of the organisation in order to cut costs, hive off
unprofitable operations and improve operational efficiency. In fact, it is a restructuring process to
meet the challenges of the environment. In the context of human resource management,
downsizing involves elimination of certain jobs with a view to cut pay bill and improves work
efficiency.

A business enterprise may reduce the staff which is in excess of its current requirements by
initiating voluntary retirement scheme (VRS).

Downsizing involves organisational restructuring which results in decreasing the size of the
organisation leading to a flat organisation structure so as to respond more readily to the pace of
environmental changes. In many cases, downsizing involves reducing the size of the organisation
through pruning of workforce.

Jobs are redesigned to merge duplicate operations and eliminate redundant jobs to decrease the
pay bill. Downsizing as a strategy has been adopted throughout the world to achieve operational
economies and increase efficiency to be able to survive and grow in the wake of uncertain
environment and cut-throat competition.
HRM Prof. Lina S. Patil

VRS Management
VRS stands for voluntary retirement scheme, whereby an employee is offered to
voluntarily retire from services before the retirement date. The scheme allows companies to
reduce the strength of employees. It can be implemented by both the public and private
sectors. VRS is also known as 'Golden Handshake

How does VRS work

VRS applies to employees who have completed 10 years of service or are above the age of
40 years. It applies to workers, executives of companies and/or to an authority of a co-
operative society (except company/co-operative society directors). As per the rules,
voluntary retirement scheme should result in an overall reduction in the existing strength of
employees and the vacancy cannot be filled up. PSUs have to obtain prior approval of the
government before offering voluntary retirement. Firms can frame different schemes,
however, they must conform to the guidelines under section 2BA of the Income-Tax Rules.
One of the pertinent rules clearly states that retiring employee must not be employed in
another firm belonging to the same management

How did voluntary retirement scheme come about in India?

Indian labour laws do not allow direct retrenchment of employees under a union.
According to the Industrial Disputes Act, 1947, employers cannot reduce excess staff by
retrenchment. In fact, any plans of retrenchment and reduction of staff and workforce are
subjected to strong opposition by trade unions. So, VRS was introduced as an alternative
legal solution to solve this problem.