UNIT-II

Course Name: BCOMH

Semester Number: V
Subject Code: BCOMH-502
Subject Name: Human Resource Management
Faculty Name: Himanshu Upadhyay
Designation: Assistant Professor

Unit-II-BCOMH-502-Human Resource Management

 Selection

Opening Vignettes

FAKE CVS - A HEADACHE FOR IT AND BPO MAJORS

The problem of 'fake CVs' seems to be getting bigger for the Indian IT industry.
Hyderabad based IT major Satyam Computers is learnt to have terminated the services
of at least 500 people in the past year because they had fudged their documents.
When contacted Satyam VP-HR Mukund Menon told ET, ‘It is true that we have asked
about 500 people to leave after finding fabricated documents in their applications.
However, this is not in one shot but over a period of one year or so’. "He added that
there was no particular region or institute from where these candidates came and that it's
happened in all our locations." However, Satyam hasn't filed any cases or taken legal
action against the terminated candidates.
According to Mr. Menon, the company has been doing background checks on all
candidates who joined Satyam for the last 12-18 months and engaged a verification
agency for the purpose. The process is generally done within 15-21 days from when an
offer letter is given. "In case there is any discrepancy, we give seven days’ time to the
candidate to clarify things and then do a re-verification. Based on the findings, we
terminate their services. In most cases, the candidates have confessed to fudging the
documents."
Most of the incidents were in the lower level of employees-mostly in the 2–4-year
experience level and some in the 4–8-year bracket. Mr. Menon said the fudgings were
basically in the degree certificates/ technical qualification or work experience. Asked if
there was a solution to this increasing problem for the Indian IT industry, he says that
Nasscom's skills registry was the way out but it is a long-term answer.
In another instance recently, HSBCs BPO unit in Hyderabad has also reportedly sacked
a few employees for giving fake CVs while joining the company. A bank spokesperson
declined to comment when contacted. IT companies in the last couple of years have been
quietly terminating the employment of people who have been found to have fabricated
their documents. These include big IT majors like IBM India, Infosys and TCS.
However, in March last year, Wipro Technologies not just fired some employees for
faking their CVs but also filed police complaints against several recruitment agencies in
Andhra Pradesh and Chennai for helping those employees falsify CV information.
Experts say that manipulation of resumes, especially in collaboration with recruitment
firms and sometimes with HR-related employees of IT companies, is assuming alarming
proportions in the country. A KPMG study, India Fraud Survey Report 2006, which
covered over a thousand organizations across India, said 15-24% of CVS in India are
fake and one out of three CVs misrepresent facts. The study found that the IT, financial,
entertainment and telecom sectors face the highest risk.

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 Meaning of Selection

Human resource selection is the process of choosing qualified individuals who are
available to fill positions in an organization. In the ideal personnel situation, selection is
the process of picking individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. Selection is the process
of differentiating between applicants in order to identify and hire those with a greater
likelihood of success in a job. It involves a careful screening and testing of candidates
who have put in their applications for any job in the enterprise. The purpose of selection
is to pick up the right person for every job.
It can be conceptualized in terms of either choosing the fit candidates, or rejecting the
unfit candidates, or a combination of both. Selection involves both because it picks up the
fits and rejects the unfits. In fact, in Indian context, there are more candidates who are
rejected than those who are selected in most of the selection processes. Therefore,
sometimes, it is called a negative process in contrast to positive programme of
recruitment.
Definitions of Selection

According to Dale Yoder, “Selection is the process in which candidates for employment
are divided into two classes-those who are to be offered employment and those who are
not”.

According to Thomas Stone, “Selection is the process of differentiating between

applicants in order to identify (and hire) those with a greater likelihood of success in a
job”.

According to Michael Jucius, “The selection procedure is the system of functions and
devices adopted in a given company for the purpose of ascertaining whether or not
candidates possess the qualifications called for by a specific job or for progression
through a series of jobs.”

According to Keith Davis, “Selection is the process by which an organization chooses

from a list of screened applicants, the person or persons who best meet the selection
criteria for the position available.”

Thus, the selection process is a tool in the hands of management to differentiate between
the qualified and unqualified applicants by applying various techniques such as
interviews, tests etc. The cost incurred in recruiting and selecting any new employee is
expensive. The cost of selecting people who are inadequate performers or who leave the
organisation before contributing to profits proves a major cost of doing business.

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 Need for Scientific Selection
The scientific selection policy is given importance due to these reasons:
1. Right job for the Right Person: Scientific selection policy helps to find the right
man for the right job. It also helps to find the right job for the right person.
2. Reduces Labour Absenteeism and Turnover: Labour absenteeism refers to the
employees remaining absent from regular duty (work). Labour turnover refers to
the employees leaving the company. Scientific selection policy helps to reduce
both labour absenteeism and labour turnover. This is because it helps to select the
right candidates for the right jobs. These candidates get job satisfaction, and they
have a high morale. So, they will not remain absent, and they will not leave the
company.
3. Reduces wastages, damages and accidents: The scientific selection policy
results in the selection of qualified and interested employees. These employees
will be very careful while handling machines and materials. This will reduce
wastage, damages and accidents.
4. Reduces Training and Supervision Costs: The scientific selection policy results
in the selection of qualified and interested employees. These employees require
less training and supervision. This will reduce the training and supervision cost.
5. Improves Goodwill of the Company: Scientific selection policy results in the
selection of interested employees. These employees will maintain very good
relations with the shareholders, customers, public etc. This will improve the
goodwill of the company.
6. High Morale: The employees who are selected through scientific selection policy
do get job satisfaction. This will increase their morale. High morale brings many
benefits to the company.

Selection Process

Selection is a long process, commencing from the preliminary interview of the applicants
and ending with the contract of employment. Figure 1.1 shows a generalized selection
process. In practice, the process differs among organizations and between two different
jobs within the same company. Selection procedure for senior managers will be long-
drawn and rigorous, but it is simple and short while hiring shop-floor workers.
Environmental Factors Affecting Selection
Selection is influenced by several factors. More prominent among them are supply and
demand of specific skills in the labour market, unemployment rate, labour-market
conditions, legal and political considerations, company's image, company's policy, HRP,
and cost of hiring. The last four constitute the internal environment and the remaining
form the external environment of the selection process.

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 Figure 1.1: Selection Process

1. Preliminary Interview
The applications received from job seekers would be subject to scrutiny so as to eliminate
unqualified applicants. This is usually followed by a preliminary interview the purpose of
which is more or less the same as scrutiny of applications, that is, elimination of
unqualified applications. Scrutiny enables the HR specialists to eliminate unqualified job
seekers based on the information supplied in their application forms. Preliminary
interview, on the other hand, helps reject misfits for reasons, which did not appear in the
application forms. Besides, preliminary interview, often called ‘courtesy interview’, is a
good public relations exercise.

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 2. Selection Tests
Job seekers who pass the screening and the preliminary interview are called for tests.
Different types of tests may be administered, depending on the job and the company.
Generally, tests are used to determine the applicant's ability, aptitude and personality.
a) Ability tests: Ability tests OR achievement tests assist in determining how well
an individual can perform tasks related to the job. An excellent illustration of this
is the typing test given to a prospective employee for a secretarial job.
b) Aptitude test: An aptitude test help determine a person's potential to learn in a
given area. An example of such a test is the General Management Aptitude
Test (GMAT) which many business students take prior to gaining admission to a
graduate business school programme.
c) Personality tests: Personality tests are given to measure a prospective employee's
motivation to function in a particular working environment. There are various
tests designed to assess a candidate's personality.
The Bernsenter Personality Inventory, for example, measures one's self-
sufficiency, neurotic tendency, sociability, introversion and extroversion, locus of
control, and self-confidence.
The Thematic Apperception Test (TAT) assesses an individual's achievement
and motivational levels. Other personality tests, such as the California
Psychological Inventory (CPI), the Thurstone Temperament Survey (TTS),
Minnesota Multiphasic Personality (MMPI), and Guilford-Zimmerman
Temperament Survey, have been designed to assess specific personality traits.
d) Interest tests: Interest tests are used to measure an individual's activity
preferences. These tests are particularly useful for students considering many
careers or employees deciding upon career changes.
e) Graphology test: Graphology test is designed to analyze the handwriting of an
individual. It has been said that an individual's handwriting can suggest the degree
of energy, inhibitions and spontaneity, as well disclose the idiosyncracies, and
elements of balance and control. For example, big letters and emphasis on
capital letters indicate a tendency towards domination and competitiveness. A
slant to the right, moderate pressure and good legibility shows leadership
potential. Employers usually consult graphologists to supplement their usual
personnel recruitment procedures.
f) Polygraph tests: Polygraph tests (polygraph is a lie detector) are designed to
ensure accuracy of the information given in the applications. Department stores,
banks, treasury offices and jewellery shops-that is those highly vulnerable to theft
or swindling-may find polygraph tests useful.
g) Medical tests: Medical tests reveal physical fitness of a candidate. With the
development of technology, medical tests have become diversified. Drug tests
help measure the presence of illegal or performance-affecting drugs. Genetic

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 screening identifies genetic predispositions to specific medical problems.
Medical servicing helps measure and monitor a candidate's physical resilience
upon exposure to hazardous chemicals.

Choosing Tests

Tests must be chosen based on the criteria of reliability, validity, objectivity and
standardization.
i. Reliability: Reliability refers to standardization of the procedure of administering
and scoring the test results. A person who takes a test one day and makes a certain
score should be able to take the same the next day or the next week and make
more or less the same score. An individual's intelligence, for example, is generally
a stable characteristic. So, if we administer an intelligence test, a person who
scores 110 in March would score close to 110 if tested in July. Tests which
produce wide variations in results serve little purpose in selection.
ii. Validity: Validity is a test which helps predict whether a person will be
successful in a given job. A test that has been validated can be helpful in
differentiating between prospective employees who will be able to perform the
job well and those who will not. Naturally, no test will be 100 per cent accurate in
predicting job success. A validated test increases possibility of success.
iii. Objectivity: When two or more people can interpret the results of the same test
and derive the same conclusion(s), the test is said to be objective. Otherwise, the
test evaluators' subjective opinions may render the test useless. Subjectivity of
this kind nullifies the purpose of objectivity and is the reason why some tests are
not valid.
iv. Standardization: A test that is standardized is administered under standard
conditions to a large group of persons who are representatives of the individuals
for whom it is intended. The purpose of standardization is to obtain norms or
standards, so that a specific test score can be meaningful when compared to other
scores in the group. When a test is standardized, it is administered to a large
number of people who are performing similar tasks.

3. Employment Interview

The next step in the selection process is employment interview. An interview is

conducted at the beginning and at the end of the selection process.
Interview is a formal, in-depth conversation conducted to evaluate the applicant's
acceptability. It is considered to be an excellent selection device. Its popularity stems
from its flexibility. Interview can be adapted to unskilled, skilled, managerial and

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professional employees. It allows a two-way exchange of information, the interviewers
learn about the applicant, and the applicant learns about the employer.
However, interviews do have shortcomings. Absence of reliability is one limitation. No
two interviewers offer similar scoring after interviewing an applicant. Lack of validity is
another limitation. This is because, few departments use standardized questions upon
which validation studies can be conducted. Finally, biases of interviewers may cloud the
objectivity of interviews.
The employment interview can be (i) one-to-one (ii) sequential, or (iii) panel.
a. In the one-to-one interview, there are only two participants; the interviewer and
the interviewee. This can be the same as the preliminary interview.
b. The sequential interview takes the one-to-one a step further and involves a series
of interviews, usually utilizing the strength and knowledge base of each
interviewer, so that each interviewer can ask questions in relation to his or her
subject area of each candidate, as the candidate moves from room to room.
c. The panel interview consists of two or more interviewers. Any panel interview is
less intimate and more formal than the one-to-one, but if handled and organized
well, it can provide a wealth of information. If not handled carefully, the panel
interview can make the candidate feel ill at ease and confused about whose
question to answer and whom to address. Interviewers themselves are likely to
experience nightmare, not knowing who will ask which question and in what
order.
Objectives of Interviews

Interview has at least three objectives:

i. It helps in obtaining additional information from the applicant;
ii. It facilitates giving general information to the applicant such as company policies,
job, products manufactured and the like; and
iii. It helps in building the company's image among the applicants.

Types of Interviews

Interviews can be of different types. The usual types are structured, unstructured, mixed,
behavioural and stress-producing.
a) Structured interview: In a structured interview, the interviewer uses a preset
standardized questions which are put to all the interviewees. This interview is also
called 'guided' or 'patterned' interview. It is useful for valid results, especially
when dealing with large number of applicants.
b) Unstructured interview: In an unstructured interview, also known as 'unguided'
or 'unpatterned' interview, the interview is largely unplanned and the interviewee
does most of the talking. It is useful when the interviewer tries to probe personal

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 details of the candidate to analyze why they are not right for the job. Unguided
interview is advantageous in as much as it leads to a friendly conversation
between the interviewer and the interviewee and in the process, the latter reveals
more of his or her desires and problems. But the unpatterned interview lacks
uniformity and, worse, this approach may overlook key areas of the applicant's
skills or background.
c) Mixed interview: In practice, a blend of structured and unstructured questions is
used by the interviewer while interviewing the job seekers. This approach is
called the mixed interview. The structured questions provide a base of
information that allows comparisons between candidates. But the unstructured
questions make the interview more conventional and permits greater insights into
the unique differences between applicants.
d) Behavioural interview: Behavioural interviewing focuses on a problem or a
hypothetical situation that the applicant is expected to solve. Often, these are
hypothetical situations, and the applicant is asked what she/he would do in the
given circumstances. This interview technique has a limited scope. It is useful for
stressful jobs, such as handling complaints. It primarily reveals the applicant's
ability to solve the types of problem presented. Validity is more likely if the
hypothetical situations match those found on the jobs. When the job involves
much stress, stress interview attempts to learn how the applicant will respond to
the pressure. This technique is more relevant in jobs involving stress, for example,
in the police force. Since stressful situations are usually only a part of the job, this
technique should be used along with other approaches.
There are other types of interviews, for example counselling, merit-rating,
grievance, and exit interviews. These are mainly non-employment interviews.

4. Reference and Background Checks

Many employers request names, addresses, and telephone numbers or references for the
purpose of verifying information and, perhaps, gaining additional background
information on an applicant. Although listed on the application form, references are not
usually checked until an applicant has successfully reached the fourth stage of a
sequential selection process. When the labour market is very tight, firms sometimes hire
applicants before checking references.
Previous employers, known public figures, university professors, neighbours or friends
can act as references. Previous employers are preferable because they are already aware
of the applicant's performance. But, the problem with this reference is the tendency on
the part of the previous employers to over-rate the applicant's performance just to get rid
of the person.
Companies normally seek letters of reference or telephone references. The latter is
advantageous because of its accuracy and low cost. The telephone reference also has the

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advantage of soliciting immediate, relatively candid comments, and attitudes can
sometimes be inferred from hesitations and inflections in speech.
Reference checks serve two important purposes.
a) One purpose is to gain insight about the potential employee from the people who
have had previous experience with him or her. This is a good practice considering
the fact that between 20 to 25 per cent of job applicants there is at least one
fraudster.
b) The second purpose for reference checks is to assess the potential success of a
prospect. Who else can give an objective assessment of an individual than his or
her previous employer or a person known to him or her?
But one should guard against the following while considering to employ a prospect:
i. The prospect is likely to approach those persons who would speak well about
him or her.
ii. People may write favourably about the candidate in order to get rid of him or
her.
iii. People may not divulge the truth about a candidate, lest it might damage or
ruin his or her career.
5. Selection Decision
After obtaining information through the preceding steps, selection decision; the most
critical of all the steps-must be made. The other stages in the selection process have been
used to narrow the number of candidates. The final decision has to be made from the pool
of individuals who pass the tests, interviews and reference checks.
The final decision indeed becomes a daunting task when there are a large number of job-
seekers lined up for final selection. The views of the line manager will be generally
considered in the final selection because it is he/she who is responsible for the
performance of the new employee. The HR manager plays a crucial role in the final
selection.
6. Physical Examination
After the selection decision and before the job after offer is made, the candidate is
required to undergo a physical fitness test. A job offer is, often, contingent upon the
candidate being declared fit after the physical examination. The results of the medical
fitness test are recorded in a statement and are preserved in the personnel records.
There are several objectives behind a physical test.
i. Obviously, one reason for a physical test is to detect if the individual carries any
infectious diseases.
ii. Second, the test assists in determining whether an applicant is physically fit to
perform the work.

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 iii. Third, the physical examination information may be used to determine if there are
certain physical capabilities which differentiate successful and less successful
employees.
iv. Fourth, medical check-up protects applicants with health defects from
undertaking work that could be detrimental to themselves or might otherwise
endanger the employer's property,
v. Finally, such an examination will protect the employer from workers'
compensation claims that are not valid because the injuries or illnesses were
present when the employee was hired.

7. Job Offer
The next step in the selection process is job offer to those applicants who have crossed all
the previous hurdles. Job offer is made through a letter of appointment. Such a letter
generally contains a date by which the appointee must report on duty. The appointee must
be given reasonable time for reporting. This is particularly necessary when he or she is
already in employment, in which case the appointee is required to obtain a relieving
certificate from the previous employer. Again, a new job may require movement to
another city which means considerable preparation and movement of property.
The company may also want the individual to delay the date of reporting on duty. If the
new employee's first job upon joining the company is to go on training, the firm may
request that the individual delays joining the company until perhaps a week before such
training begins. Naturally, this practice cannot be abused, especially if the individual is
unemployed and does not have sufficient finances.
Decency demands that the rejected applicants be informed about their non-selection.
Their applications may be preserved for future use, if any. It needs no emphasis that the
applications of selected candidates must also be preserved for future references.

8. Contracts of Employment
After the job offer has been made and the candidates accept the offer, certain documents
need to be executed by the employer and the candidate. One such document is the
attestation form. This form contains certain vital details about the candidate which are
authenticated and attested by him/her. Attestation form will be a valid record for future
reference.
There is also a need for preparing a contract of employment. The basic information that
should be included in a written contract of employment will vary according to the level of
the job, but the following checklist sets out the typical headings:
i. Job title.

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 ii. Duties, including a phrase such as "The employee will perform such duties and
will be responsible to such a person, as the company may from time to time
direct".
iii. Date when continuous employment starts and the basis for calculating service.
iv. Rate of pay, allowances, overtime and shift rates, method of payments.
v. Hours of work including lunch break and overtime and shift arrangements.
vi. Holiday arrangements.
vii. Sickness
viii. Length of notice due to and from employee.
ix. Grievance procedure (or reference to it).
x. Disciplinary procedure (or any reference to it).
xi. Work rules (or any reference to them).
xii. Arrangements for terminating employment.
xiii. Arrangements for union membership (if applicable).
xiv. Special terms relating to rights to patents and designs, confidential information
and restraints on trade after termination of employment.
xv. Employer's right to vary terms of the contract subject to proper notification being
given.

9. Evaluation of Selection Programme

The broad test of the effectiveness of the selection process is the quality of the personnel
hired. A firm must have competent and committed personnel. The selection process, if
properly done, will ensure availability of such employees. How to evaluate the
effectiveness of a selection programme? A periodic audit is the answer. Audit must be
conducted by people who work independent of the HR department.

Difference between Recruitment and Selection

Recruitment and selection are both famous terms related to the hiring process.
Recruitment is a process which entails searching for candidates, and selection is a process
of picking the candidates from the shortlisted ones. Let’s find out more differences
between recruitment and selection.

Sr. Basis for Recruitment Section

No. Distinction
1 Meaning Recruitment is an activity of Selection refers to the process of
searching candidates and selecting the suitable candidates
encouraging them to apply for it. and offering them job.
2 Approach Approach under recruitment is Approach under selection is

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 positive as it attracts the people negative as it involves rejection
towards the organization. of candidates at every stage of
it.
3 Objective Initiating large number of Picking up the most suitable
candidates to apply for the candidates and eliminating the
vacant posts. rest.
4 Sequence It takes place before the It takes place after recruitment.
selection.
5 Economical/ It is an economical process. It is an expensive process.
expensive
6 Contractual It involves the communication of It creates contractual relation
relation vacancies. No contractual
between employer and
relation is established. employee.
7 Simple/ Recruitment is a simple process. Selection is a very complex and
Complex complicated process.
8 Time It requires less time since it It is more time consuming as
consumption merely involves just identifying each and every candidate has to
vacancies and advertising them. be tested on various aspects
before selecting the candidates.

Unit-II-BCOMH-502-Human Resource Management