MASTERS OF BUSINESS

ADMINISTRATION PROGRAM

Strategic Human Resource

Management

MBA 522

1
 CHAPTER ONE: Nature and Scope of Human
Resource Management

Learning Objectives
 HRM functions and Objectives
 HRM and Environmental Scanning
 Integrating HR-strategy with Business
strategy

Advanced Organizational Behavior (MBA 711) 2

Compiled by: Haile Y.
 What is Human Resource Management?
• Before giving an answer to this question, it would be better to define
"management" it self. The reason to this is that human resource
management belongs to the broader field of study and practice
known as management.
• Management can be defined as the process of reaching
organizational goals by working with and through people and other
resources.
• Organizational resources can be grouped into four major categories:
Human resources
Financial resources
Physical resources
Information resources
• Human resources are among the fundamental resources available to
any organization
Advanced Organizational Behavior (MBA 711) 3
Cont…
 Therefore, HRM can be defined as the utilization of human
resources to achieve organizational objectives.
 In defining and studying human resources management some points
need to be emphasized:
◦ Human resources management is concerned with the people
dimension of the organizational management.
◦ Human resource management is a pervasive activity, meaning a
universal activity in any type of organization : government,
business, education, health, defense, recreation, etc.
◦ The human resource is said to be the most important ( or critical)
element in an organization since people make the decisions
concerning all other organizational resources.
 Thus, getting and keeping good people is critical to the success of
every organization, whether profit or non-profit, public or private.
Cont…
 Basically, it has been said, managers get things done
through the efforts of others, which basically requires
effective human resource management (Monday & Noe,
1990).
 A human resource manager is an individual who
normally acts in an advisory, or "staff", capacity,
working with other managers to help them deal with
human resource matters.
 Some writers in the field and other management people
may use such names as "personnel", "personnel
management", "manpower management", and
"employee relations" to say the same thing: human
resource management.
Major Functions of HRM
 Human resource management functions are the set of activities
performed in utilizing human resources for better achievement of
organizational objectives. Following are the major elements
(Mondy & Noe, 1990).
◦ Human Resource Planning
◦ Job Analysis
◦ Recruitment
◦ Selection
◦ Orientation
◦ Training and Development
◦ Remuneration/Reward
◦ Performance Appraisal
◦ Safety and Health
◦ Promotions, Transfer, Demotions and Separations
◦ Integration and Maintainace of Employee Relations
◦ Human Resource Research
 Human Resource Planning
Human resource planning (HRP) is the process of
systematically reviewing human resource requirements to
ensure that the required numbers of employees, with the
required skills, are available when they are needed. HRP is
the process of matching the internal and external supply of
people with job openings
 Recruitment

Recruitment is the process of attracting individuals in

sufficient numbers and encouraging them to apply for jobs
with the organization.
 Selection

Selection is the process of choosing from a group of

applicants the individuals best suited for a particular
position.
 Orientation/Induction/Socialization/
Orientation is the formal process of familiarizing new
employees with the organization, their job, and their work unit.
 Training and Development
Training and development aim to increase employee's ability
to contribute to organizational effectiveness. Training is a
process designed to maintain or improve performance (and
skills) in the present job. Development is a programe designed
to develop skills necessary for future work activities.
 Remuneration/Reward Administration
Reward administration refers to the administration of every
type of reward that individuals receive in return for their
services.
 Performance Appraisal

Performance evaluation is a formal system of periodic

review and evaluation of an individual's job performance.
 Safety and Health

Safety involves protecting employees from injuries caused

by work-related accidents. Health refers to the employees
freedom from illness and their general physical and mental
well-being.
 Promotions, transfers, demotions and separations

Promotions, transfers, demotions, and separations reflect

an employee's value to the organization. High performers
may be promoted or transferred to help them develop their
skills, while low performers may be demoted, transferred
to less important positions, or even separated
 Integration and Maintenance of Employee
Relations
Employee relations is the interactions between the
employer (represented by management) and the
work-force (represented by trade unions) (Beech &
McKenna, 1995). The objective is whose objective
is to create an atmosphere of trust, respect, and
cooperation.
 Human Resource Research
HRM and Environment Scanning
 Many interrelated environmental factors affect
human resource management. Such factors are part
of either the organization's external environment or
its internal environment.
 The organization has little, if any, control over how
the external environment affects management of its
human resources.
 These factors impose influences of varying degrees
on the organization from outside its boundaries.
 The environment of an organization consists of the
conditions, circumstances, and influences that affect
the organization's ability to achieve its objectives.
Integrating HR-strategy with Business
strategy
 Strategic HRM
Strategic HRM is about the integration of HRM strategies
into corporate strategies. They focus is on alignment of the
organisation’s HR practices, policies and programmes with
corporate and strategic business unit plans (Greer, 1995).
It is believed that integration between HRM and business
strategy contributes to effective management of human
resources, improvement in organisational performance and
finally the success of a particular business (Holbeche,
1999; Schuler and Jackson, 1999).
It can also help organisations achieve competitive
advantage by creating unique HRM systems that cannot be
imitated by others (Barney, 1991; Huselid et al., 1997).
Cont…
 Golden and Ramanujam (1985) identified four possible types of
linkages between business strategy and the HRM functions /
department of an organisation/:
 Administrative linkage. In such conditions there is no real linkage
between business strategy and HRM. It represents the scenario
where there is no HR department looks after the HR function of
the firm. The HR unit is relegated here to a paper-processing role.
 One-way linkage. Where HRM comes into play only at the
implementation stage of the strategy.
 Two-way linkage. Is more of a reciprocal situation where HRM is
not only involved at the implementation stage but also at the
corporate strategy formation stage.
 Integrative linkage. Where HRM has equal involvement with
other organisational functional areas for business development.
Linking organisational strategy and HRM
strategy: Theoretical developments
 The Matching Model (the hard fit)
The hard fit of HRM was developed by Fombrun et al.’s
(1984), which emphasises a ‘tight fit’ between
organisational strategy, organisational structure and
HRM system. The organisational strategy is pre-
eminent; both organisation structure and HRM are
dependent on the organisation strategy. The main aim of
the matching model is therefore to develop an
appropriate ‘human resource system’ that will
characterise those HRM strategies that contribute to the
most efficient implementation of business strategies.
The matching model of HRM has been criticised for a
number of reasons.
Cont…
 It is thought to be too prescriptive by nature,
mainly because its assumptions are strongly
unitarist (Budhwar and Debrah, 2001). As the
model emphasises a ‘tight fit’ between
organisational strategy and HR strategies, it
completely ignores the interest of employees, and
hence considers HRM as a passive, reactive and
implementation function.
 Indeed, the very idea of ‘tight fit’ makes the
organisation inflexible, incapable of adapting to
required changes and hence ‘misfitted’ to today’s
dynamic business environment.
Cont…
 The Harvard Model (the soft fit)
Also known as the soft model was first articulated by
Beer et al. (1984). Compared to the matching model,
this model is termed ‘soft’ HRM. It stresses the ‘human’
aspect of HRM and is more concerned with the
employer–employee relationship. The model highlights
the interests of different stakeholders in the organisation
(such as shareholders, management, employee groups,
government, community and unions) and how their
interests are related to the objectives of management.
It also recognises the influence of situational factors
(such as the labour market) on HRM policy choices.
Cont…
 The model allows for analysis of these outcomes at
both the organisational and societal level. As this
model acknowledges the role of societal outcomes,
it can provide a useful basis for comparative
analysis of HRM. However, this model has been
criticised for not explaining the complex
relationship between strategic management and
HRM (Guest, 1991).
 The matching model and the Harvard analytical
framework represent two very different emphases,
the former being closer to the strategic management
literature, the latter to the human relations tradition.
Matching business strategy and HRM
 Porter’s generic business strategies and HRM
Michael Porter (1980; 1985) identified three possible
generic strategies for competitive advantage in business:
◦ Cost leadership (when the organisation minimize its
prices by producing a product or service at less
expense than its competitors);
◦ Innovation (when the organisation is able to be a
unique producer); and
◦ Quality (when the organisation is delivering high-
quality goods and services to customers).
 Considering the above strategies a number of HRM
combinations can be adopted by firms to support
Porter’s model of business strategies
Cont…
In this regard, Schuler (1989) proposes
corresponding HRM philosophies of:
◦ Accumulation: careful selection of good
candidates based on personality rather
technical fit,
◦ Utilization: selection of individuals on the
basis of technical fit, and
◦ Facilitation: the ability of employees to work
together in collaborative situations.
Therefore:
 Firms following a quality strategy will require a
combination of accumulation and facilitation
HRM philosophies in order to acquire, maintain
and retain core competencies;
 Firms pursuing a cost-reduction strategy will
require a utilisation HRM philosophy and will
emphasise short-run relationships, minimise
training and development and highlight external
pay comparability; and
 Firms following an innovation strategy will
require a facilitation HRM philosophy so as to
bring out the best out of existing staff (Schuler
and Jackson, 1987).
 CHAPTER TWO
Human Resource Planning & Job Analysis
I. Nature of HRP
 Human resource planning is the process of systematically
reviewing human resource requirements to ensure that the
required number of employees, with the required skills, are
available when they are needed (Mondy & Noe, 1990). It is
a means of deciding the number and type of personnel that
organization needs now and in the future.
 HRP translates the organization's objectives into the number
of employees required to meet those objectives. Without
clear-cut planning estimation of human resource need is
reduced to mere guesswork.
 To ensure that people are available to provide the continued
smooth development, organizations engage in human
resource planning.
The Importance of Human Resource Planning
 Organizations are composed of financial, material and
human resources. Of these human resource represents
one of the organization's most valuable assets.
 Its supply of personnel must be sufficient to ensure the
healthy operation of the organization. Human resource
planning, according to Chatterjee (1995), therefore:
◦ assumes a crucial role in the future success or failure of an
organization.
◦ enables a manager to predict his/her manpower requirements,
to determine the deployment of personnel and to control wage
and salary costs.
◦ provides management information about the existing strength
and weaknesses of the people in the organization.
◦ assesses the kinds of skills required to be developed as well as
recruited.
◦ estimates human resource requirements over a specified time
frame in relation to the organization's goals.
◦ Provides an indication of the lead-time that is available to
evolve new strategies in selecting and training the required
additional manpower or reducing the strength of the
workforce.
 The Human Resource Planning Process

 Planning for human resource should be tied in with overall

long-term organizational plan. In other words, after
organizational strategic plans have been formulated,
human resource planning can be undertaken. Strategic
plans are reduced to specific quantitative and qualitative
human resource plans (Mondy & Noe, 1990).
 This being as it is, most organizations identify short term
and long-term human resource needs by examining their
strategic plan.
 The human resource planning has two components. These
are requirements and availability. Forecasting human
resource requirements involves determining the type and
number of people needed in an organization.
 These projections will reflect various factors, such as
development plans in government organizations where as
production plans in business firms. Forecasting human
resource availability involves identifying both the internal
sources and external sources.
 It is important here to not that one of the major objectives of
human resource planning is to enable the organization not be
understaffed or overstaffed. Thus, it is the responsibility of
the management to compare requirements and availability to
determine whether there will be a surplus or shortage of
employees.
 If a surplus is projected, then, the organization must use
different employee reduction methods, such as early
retirements, restricted hiring, dismissal, etc.
 On the other hand, if shortage is predicted, the organization
must obtain the right type and number of people from the
labor market through recruitment and selection.
 Although there is no universally accepted set of procedures
for undertaking human resource planning process, there is
a general agreement upon the major processes and contents
of human resource planning as illustrated below.
1. Organizational Goals and Plans
 Human resource planning is a part of the strategic planning
for the entire organization. Moreover, to be relevant, a
human resource planning process should be clearly tied to the
organization's strategic goals (Mondy & Noe, 1990).
2. Assess Current Human Resource Situation
 The second phase of the planning process is the preparation
of an inventory of human resource within the organization.
This is often called human resource inventory or a manpower
information system.
 The inventory consists of up-to-date information concerning
each employee's knowledge, skills and abilities.
 It enables management to assess the type and number of
employees available in the organization.
3. Human Resource Forecast
 Human resource forecasts are attempts to predict an organization's
future demand for employees (Werther & Davis, 1996). It is a
determination of the demand for employees for given time periods
in the future such as one, three and five years.
 The demand forecast is an estimate of types and numbers of
personnel the organization will require in the future. It is
derived from goals and plans.
 The forecast also requires the preparation of an estimate of the
supply of people who will be available for the selected time
period. The supply is composed of two main parts. There are:
◦ an estimate of the numbers and types of personnel presently on the
payroll.
◦ The portion which must be recruited externally.
 Human Resource Forecasting Techniques.
 Forecasting technique range from judgment to
sophisticated quantitative models. Some of the
techniques available are qualitative and quantitative in
nature. The most commonly used techniques of
forecasting are:
◦ Judgment and Experience
◦ Bottom-up Approach
◦ Work Standard Data
◦ Zero-Base Forecasting
 Judgment and Experience
 This method is based on the estimates made by people
like executives or experts who are very familiar with the
entire nature of the jobs in the organization. It is
appropriate for short-range forecasts. The manager and
heads of various units of the organization make
estimates of future human resource requirements by
judgmentally converting information on future
organizational activities into numbers and types of
personnel needed. For example, these activities in
public organization may include services to be provided,
population to be served, projects to be completed, etc.
 Bottom-up Approach
 In bottom-up approach, managers from various levels are
asked to contribute to employment forecasting. It has the
advantage of drawing many managers into the process and
giving them a sense that they are participating in one of the
importance activities of the organization. Here, unit
managers send their employment needs forecasting proposals
to the top management who compare these with the plan and
finalize them. According to Mondy and Noe (1990), human
resource forecasting is often most effective when managers
periodically project their human resource needs, comparing
their current and anticipated levels, and giving the human
resource department adequate lead time to explore internal
and external source.
 Work Standard Data
 Another means of forecasting human resource requirements
is to use work measurement standard. This is a means of
determining the relationship between tasks and the number
of employees needed to perform the tasks. In this case many
organizations have established data for man-hours or unit
times to perform tasks. According to Chatterjee (1995), the
technique is useful only in cases where the volume of work
can be satisfactorily quantified, total production and
activities in terms of clear units are estimated and the
number of man hours required to perform/ produce each unit
is carefully calculated.
 The total projected units of work for the organization are
translated into man-hours or man-days and the number and
type of employees by using the pre-established time
standards. However, work standard technique cannot be
applied for estimating professional personnel requirements.
 Zero-Base Forecasting
 The zero-base forecasting approach uses the
organization's current level of employment as the starting
point for determining future staffing needs (Mondy &
Noe, 1990). Whenever vacancies exist due to retirement,
layoff, death, or resignation, the vacant positions are not
immediately filled. Instead, personnel requirement
analysis is made to determine whether the organization
can justify filling them. The same procedure is followed
when organizations create new positions. Zero-base
human resource forecasting, therefore, requires
management at different levels to thorough study and
analysis their human resource needs
 Key Predictive Factors
 The core element of the "key predictive factors" method
is to identify one major indicator with which total human
resource requirement correlates highly. For example,
one of the useful predictors of academic staff
employment levels in the Sheger College is the number
of students to be served.
 Moreover, to identify predictor variables, the manpower
planning office of business organization must examine
several variables such as sales volume, units produced,
or number of customers served to find which variable or
variables provides a good correlation between the
number and type of employees needed.
 Implementation Programs
 After the optimal alternative for addressing the
organization's human resource issues has been chosen, it
is translated into operational programs with specific plans,
target dates, schedules, and resource commitments
(Mondy & Noe, 1990). The implementation phase of the
human resource planning requires translating the plan
into action. For example, if a shortage of accountants in
Region 5 has been forecasted and if the plans reveal, both
recruitment plus upgrading of the present accounting
talent, then both recruitment and training programs will
have to be strengthened and expanded. The following are
the major implementation actions.
 II. Job Analysis
 Job analysis is the systematic process of determining the skills,
duties and knowledge required for performing jobs in an
organization (Mondy & Noe, 1990). It is an important human
resource techniques and is also a method that enable to obtain
information regarding jobs available in the organization.
 The major purpose of job analysis is to provide answers to the
following six important questions ( Mondy & Noe, 1990).
◦ What physical and mental tasks does the worker accomplish?
◦ When is the job to be completed?
◦ Where is the job to be accomplished?
◦ How does the worker do the job?
◦ Why is the job done?
◦ What qualifications are needed to perform the job?
 The job facts are gathered, analyzed and recorded with respect to
the job as it exists.
 Moreover, job analysis is conducted after the job has been
designed, the necessary training has been given to the
employees to perform job.
 According to Mondy & Noe, 1990, job analysis is
performed on three different accessions. These are:
◦ It is done when the organization is founded and a job
analysis program is initiated for the first time.
◦ It is performed when new jobs are created
◦ It is used when jobs are changed significantly as a result
of new technology, methods, procedures, or systems.
 In most cases, job analysis is carried out because of
changes in the nature of jobs.
 It is used to prepare both job descriptions and job
specifications. The job description is a written
statement that explains the title, duties,
responsibilities, working conditions, and other
aspects of a specified job. Job specification, on
the other hand, describes the skill, knowledge,
work experiences required to perform the job.
(Milkovich & Bourdean, 1991)
 In addition, performance standards are
developed from job information and then actual
employee performance is measured.
 Human resource activities, such as recruitment and
selection largely depend on job information.
 Job specification information, such as the knowledge,
skills and abilities an employee need to perform a
task is crucial in identifying human resource training
and development requirements.
 Information obtained from job analysis is also
important in identifying safety and health
considerations.
 Management relies on job description to consider
promotion, transfer, or demotion, on the basis of
comparison of talent.
 Ingeneral, job studies are undertaken in order
to:-
◦ improvement in work methods,
◦ reduction in errors,
◦ elimination of handling unnecessary materials and
duplication of effort,
◦ reduction in fatigue
◦ increased employee commitment and
responsibility and
◦ consequently to improve the performance of the
employee
 Job analysis information provides the base for
human resource information system.
 Methods used to conduct job analysis are different,
this is because organizational needs and resources
for conducting job analysis differ. However, some
of the most common methods of obtaining
information for job analysis are:
◦ Questionnaires
◦ Interviews
◦ Observation
◦ Employee Log
◦ Combination of Methods
III. Job Design
 Job design is the process of determining the
specific tasks to be performed, the methods used in
performing these tasks, and how the job relates to
other work in the organization.
 It specifies how the job is to be done and how
workers can be satisfied doing the job.
 According to Werther and Davis (1996), the design
of a job reflects the organizational, environmental,
and behavioral demands placed on it.
 Job designers need to consider these elements and
try to create jobs that are productive.
 Elements of Job Design
1. Organizational Elements
 Organizational elements of job design includes:

◦ Mechanistic approach
◦ Work flow
◦ Work practices
◦ Ergonomics
2. Environmental Elements
 Environmental elements of job design are concerned
with ability and availability of potential employees
and their social expectations
 The level of technology and the type of work in an
organization should not exceed the abilities of the
organization's workforce.
3. Behavioral Elements
 Job designers needs to consider behavioral elements
to provide a work environment that helps satisfy
individual needs.
 Any job can be described in terms of five core
dimensions. These are:
◦ Skill variety. The extent to which the job requires a
variety of activities, skills, and talents to carry out
the work.
◦ Task identity. The extent to which the job allows its
employees to complete whole tasks rather than just
parts of tasks.
◦ Task significance. The extent to which the job can
be regarded as important to others inside and
 ◦ Autonomy. The extent, to which the job provides
freedom to plan, schedules and decides about work
procedures.
◦ Feedback. The extent to which the job allows its
employees to obtain clear and direct knowledge about
how well they perform.
 Further more, there are factors that play a vital role in job
design or redesign. These are:
◦ Technology
◦ Economic factors
◦ Laws and Government Regulations
◦ Union pressures
◦ Employees potential
◦ Management philosophy
 Techniques of Job Redesign

 The major purpose of job design and redesign is

to improve employee performance. There are
many methods of enhancing jobs through job
design/redesign.
 The following represent the more viable
techniques of job redesign.
◦ Job rotation
◦ Job enlargement
◦ Job enrichment
 Job Rotation
 This technique refers to the movement of employees
from one job to another. It is important to bear in
mind that jobs themselves are not actually changed
only the employees are rotated. Rotation breaks the
monotony of highly specialized work by calling on
different skills and abilities. The organization benefits
because workers become competent in several jobs
rather than one.
◦ Learning and developing new skill
◦ helps the worker's self-image
◦ provides personal growth, and
◦ makes the worker more valuable to the organization
On the other hand, job rotation is not without its
drawbacks. The main drawbacks are:
◦ Apart from costs involved in the movement of
personnel, productivity inevitably drops in the initial
phase of a worker's taking on a new job.
◦ Job rotations also create disruptions. Members of
work groups have to adjust to the new employees as
much as he/she to them.
◦ Job rotation is a weak solution to jobs that score low
on motivation potential. Critics point out that this
approach involves nothing more than having people
performing several boring and monotonous jobs.
 Job Enlargement
 Job enlargement is a technique used to expand the
number of related tasks in a job. In other words, it
increases job scope.
 Job enlargement gives greater variety in job content
and thereby helps to relieve monotony in repetitive
jobs. For example, instead of knowing how to operate
only one particular machine, a worker is taught to
operate two or even three with the same level of
responsibility. Here, through job enlargement,
management can reduces monotony, and increase job
satisfaction by creating task variety.
 Job Enrichment
 Job enrichment is a technique is which employees
are given autonomy to set their own work pace,
design their own work methods, participate in
making decisions affecting their work units, and
evaluate their accomplishments.
 It refers to basic changes in the content of the job and
increasing the level of responsibility, autonomy, and
control. It is a means of expanding jobs vertically.
Job enrichment, add more planning and control
responsibilities. These additions to the job, in-turn,
can lead to increased motivation.
 Job enrichment efforts should be based on the
following principles:
◦ Increase job demands: Changes the levels of difficulty
and responsibility of the job.
◦ Increase Worker's accountability: Allowing more worker
control and authority over the work, while retaining the
manager's ultimate accountability.
◦ Providing Work Scheduling freedom: Within limits,
allowing workers to schedule their own work.
◦ Providing feedback: making timely periodic reports on
performance directly to the worker.
◦ Providing New Learning experience: Creating
opportunities for new personal experiences and growth.
 Recruitment and Selection
 The achievement of organizational objectives largely
depends on effective utilization of human resources.
In today's highly competitive market, the selection of
the right person, in terms of quality and quantity, have
far-reaching implications for any organization.
Hence, the maintenance of staffing system becomes
the important management functions.
 Staffing refers to the process of attracting, selecting,
and placing of employee in the position. It begins
with job analysis. In addition to its other roles in
human resource management, job analysis has a role
in staffing by specifying the requirements of job,
which helps identify the kind of candidates required
for vacant positions
 Chapter 3
Recruitment and Selection
 Recruitment is the process of attracting
individuals on a timely basis, in sufficient
numbers and with appropriate qualifications, and
encouraging them to apply for jobs with an
organization.
 As can be seen in the figure below, the
groundwork for successful recruiting effort lies on
human resource planning and job analysis
information.
 Sources of Recruitment
 The objective of recruitment is to provide a sufficient
group of qualified candidates for employment. In
order to realize this recruitment objective,
organizations make use two sources of recruitment.
These are internal and external sources.
 Internal Recruitment
 Internal employees are a major source for vacant
positions in an organization. This usually takes the
form of employee promotion or transfer within an
organization. Internal recruiting improves the
probability of a good selection, since all the necessary
information on employ's performance and behavior is
readily available.
 Advantages.

◦ It can be a motivating factor for employees, since; it lets

them know that hard work can lead to better jobs.
◦ Internal candidates do not need the extensive
familiarization with organizational policies.
◦ Internal recruiting efforts are much less expensive than
external efforts
 Drawbacks

◦ 'Inbreeding' is a drawback. The employee tends to

demonstrate on the job only what he/she has learned in the
organization
◦ Inadequacy of supply would also arise since fewer people
would be available to choose from as opposed to external
◦ Recruiting friends/ relatives of present employees may
often create unnecessary tensions and charges of
favoritism
 External Recruitment
 When vacant positions can not be filled internally, the
desired employees must be attract from a number of
external sources. In other words, at times, a firm must
look beyond itself to find employees, particularly
when expanding its workforce. The following
circumstances require external recruitment:
◦ to fill entry- level jobs;
◦ to acquire skills not possessed by current employees,
and
◦ to obtain employees with different backgrounds to
provide new ideas
 External
recruiting can offer many advantages.
Among the advantages of external recruiting
are:
◦ Outside people can often bring new and innovative
ideas to the workplace.
◦ New recruit is less susceptible to conformity
pressures and other negative group phenomenal that
adversely affect employee morale and productivity.
◦ It is less expensive to hire a well-trained specialist
or professional from outside the organization than
to train and develop existing personnel.
 Methods of recruitment
 Depending on the type educational qualifications desired,
individuals may be attracted from a member of external
sources
◦ Job posting (for promotion and transfer)
◦ High schools, colleges and universities
◦ Direct applicants (Walk-ins and Write-ins)
◦ Employee Referrals
◦ Employment Agencies (Commercial or public job centers)
◦ Advertising (Newspapers and Mainstream medias)
◦ Company websites
◦ Social media
 Alternatives to Recruitment
 Recruitment is not always the best method to fill vacant
positions in an organization. Recruitment and selection are
not only time consuming activities but also expensive.
Therefore, an organization should carefully consider all
viable alternatives before involving in recruitment
functions.
 The total cost of permanent employees is usually high. To
minimize costs and maintain flexibility as work volume
varies, most organizations make use of temporary
employees. Alternatives to recruitment include:
◦ overtime,
◦ temporary employees,
◦ subcontracting and
◦ employee leasing.
V. Selection
 Selection is the process of choosing from a group
of applicants the individual best suited for a
particular position. The purpose of selection is to
identify the recruits that most likely help the
organization in achieving its objectives.
 Selection is affected by, and also affects other
human resource management activities, such as
◦ Job analysis
◦ Human resource planning
◦ Recruitment
◦ Training
◦ Career management
◦ Compensation
◦ Labor union
 The selection process
 Although the sequence of steps may differ from one
organization to another, the process ends in
acquiring the right person for the right job.
 The selection process as shown below is a series of
specific steps through which job candidates pass.
◦ Preliminary reception of applicants
◦ Selection tests
◦ Selection interview
◦ Reference and background checks
◦ Hiring decisions
◦ Medical examinations
◦ Employed individuals
1. Preliminary Reception of Applications
 Selection process often starts with preliminary
reception of applications. At this stage, the job seekers
may visit the organization in person or send job
application letter. The organization then examines the
applications to check whether there is a match between
the applicants' qualification and the vacant position.
 Although the information requested on application
forms vary from one job type to another and even from
organization to organization, it generally contains
sections for personal data, job interest, education and
training and work-related history. Those applicants
who best satisfy the selection criteria will be selected
for selection tests.
2. Selection Tests
 Selection tests are instruments that enable
organizations to assess the match between the
prospective employees and the requirement of job
opening. They enable the management to make
rational hiring decision. On the other hand, ability and
motivation to perform a task determine employee job
performance. Selection tests, therefore, may accurately
predict an applicant's ability to perform the job, but be
less successful in indicating the extent to which the
individual will want to perform it.
 There are various kinds of tests. Of which performance
tests, simulations of performance and paper-and-pencil
tests will very briefly be discussed below.
 Performance Tests
 A performance test is an experience that involves
actually doing a sample of the work the job involves
in a controlled situation.
 Performance Simulations
 The simulation is not direct performance of part of
the job, but it comes close to that through
simulation. For example, drivers may have learned
to drive by performing first on simulation machines.
 Paper-and-Pencil Tests
 The paper-and-pencil tests are designed to measure
general intelligence and aptitudes. Intelligence and
mental ability tests attempt to sample intellectual
and mental development or skills. Examples of
paper-and-pencil tests include math test for a
bookkeeper.
 Characteristics of Selection Tests
 Well-designed and properly administered tests have
the following characteristics. These are:
◦ Standardization
◦ Objectivity
◦ Norms
◦ Reliability
◦ Validity
 Standardization
 This refers to the uniformity of the procedures and
conditions related to administering tests. In order to
compare test results of candidates, it is important to
ensure uniform conditions
 Objectivity
 Objectivity in testing is achieved when everyone
scoring a test obtains the same results . The job
candidates taking objective tests either choose the
best answer or do not. Multiple-choice questions
and true-false questions are examples of objective
test.
 Norms
 A norm provides a frame of reference for comparing
an applicant's performance with that of others. It
indicates the distribution of many scores obtained by
people similar to the applicant being tested.
 Reliability
 The term reliability refers to the extent to which a test
provides dependable or consistent results. Reliability
data reveal the degree of confidence that can be
placed in a test. If a test has low reliability, its
validity as a predictor will also be low.
 Validity
 In personnel measurement, the term validity refers to
how well a test measures what it is supposed to
measure. In other words, validity means that test
scores relate significantly to job performance or to
another job-relevant criterion.
3. Selection Interview
 Interview is a formal conversation conducted to
assess the suitability of candidate for a particular
job. The interviewer seeks to answer three broad
questions. These are:-
◦ Can the applicant do the job?
◦ Will the applicant do the job?
◦ How does the applicant compare with others
who are being considered for the job?
 Interviews are the most common selection
technique. The selection interview is especially
significant because the applicants who reach this
stage are the most promising candidates
 The specific content to be used in selection interviews
varies from organization to organization and the level of
the job. However, the following general topics appeal
consistently in interviews:
◦ Academic Achievement, Occupational Experience, Personal
Qualities, Interpersonal Competence and Career Orientation
 Thereare different interview types. Organizations may
use one or more of the interview types to select the best
among applicants. In general, interview types that are
used are:-
◦ Structured interview
◦ Unstructured interview
◦ Mixed interview
◦ Behavioral interviewing
◦ Stress interview
 Structured Interview
 Structured or directive interview depends on a
predetermined set of job-related questions. List of
questions is prepared before the interview begins
and the interviewer does not allowed to deviate
from it. In this type of interview, interviewers
should follow a structured, systematic interview
procedure in order to obtain the information
necessary to evaluate the candidate fairly and
objectively. The interviewers use a standardized
evaluation form to note the candidate's responses to
the questions.
 Unstructured Interview
 The unstructured interview consists of open-ended
questions such as:
◦ What do you believe are your primary strengths and main weaknesses?
◦ How will our organization benefit by having you as an employee?
 In this type of interview, the interviewer can prepare
questions while the interview is in progress. The
overriding advantage of the unstructured type is the
freedom it allows the interviewer to adapt to the situation
and to the changing stream of applicants. Unfortunately,
this method, which also is called non-directive
interviewing, lacks the reliability of structured interview
because each applicant is asked a different series of
questions. Even worse, this approach may overlook key
areas of the applicant's skills or background.
4. References and Background Checks
 Is the applicant a good, reliable worker? Are the job
accomplishments, titles, educational background, and
other facts on the resume' or application true? What
type of person is the applicant? Most important, what
information is relevant to matching the applicant and
the job?
 In order to provide answer to these questions,
organizations use references and background
investigation. Checking references and investigating
the candidate's background history are important tools
that enable organizations to determine whether past
work experience is related to qualification required for
the new job. Moreover, candidates may also be
required to submit recommendation letters.
5. Hiring Decision
 After obtaining and evaluating information about the finalists,
the manager must take the most critical step of all: making
the actual hiring decision. Manager's decision to select those
individuals best suited for employment must be based on
reliable and valid information.
 Moreover, since the success of any organization largely
depends on employee performance, the manager before
making the final employment decision must:
◦ be familiar the job requirements.
◦ organize a forum with the selection committee or human
resource department, whereby the entire selection process
is reviewed.
◦ be convinced that rational decision is made at every stage
of the selection process.
6. Medical Examination
 After the hiring secession has been made, the next
process of selection involves a medical examination
for the successful candidate. In most cases, a job
offer is conditional upon presentation of a medical
certificate that testifies the applicant is both mentally
and physically capable of performing the job in
question. If there is no disqualifying medical
problems during the examination, the candidate can
now be employed and be given a letter of
employment.
7. Employed the individual
 Probationary Period
 Many organizations use a probationary period to
check the employee's ability and motivation to
work. This may be either a substitute for or a
supplement to, the use of interview and/or tests.
If an individual is found to be productive during
the probation period, the management will
confirm for the permanent.
 Environmental Factors Affecting the Selection
Process
 The following environmental factors can affect the
selection process.
 Legal Considerations
 Legislation, executive orders and court decisions have had a
major impact on selection.
 Speed of Decision Making
 The time available to make the selection decision can have
a major effect on selection process. An organization may
only conduct an interview to fill a vacant position if a
certain department can not operate unless that particular
position is immediately filled. On the other hand, speed
may not be crucial to select a deputy dean of a college.
Here a careful attention need to be devoted to study the
application, intensive reference and background checking
and time for the interview.
 Organizational Hierarchy
 Different techniques to selection are required for filling
job openings at different levels in the organization. For
instance, consider the variations in hiring a Head of
Finance and Administration Department and in hiring a
person to fill a secretarial position. Extensive
reference and background checks and in-depth
interviewing needs to be carried out to verify the
character and capabilities of the applicant for a high-
level position. However, an applicant for a secretarial
position would most likely take only a word processing
test and perhaps have a short selection interview.
 Application Pool
 The number of available people to be recruited from the labor
market for a particular job can affect the selection process. If
there are many candidates as compared to the number of
people to be hired, the selection process can be complicated
and takes a long period of time. On the contrary, if there is
only two candidates for one vacant position, the selected
process is relatively easy and it also takes a short duration.
 Type of Organization
 The public, private or not-for-profit sectors of the economy
for which people are to be hired can also affect the selection
process. A government in the public sector is heavily service
oriented. Civil servants are hired with regard to how they can
help accomplish service goals. In business organizations
selection process largely depends on how employees are able
and motivated in achieving the organization's profit
objectives.
VI. Orientation/Induction/Socialization
 Once suitable applicants have been selected to join the
organization, it is desirable to integrate them into the
organization and the job to which they are responsible.
Helping new employees fit in, i.e. designing orientation
program is one of the functions of human resource
department. Orientation, therefore, is a formal program
of indoctrination to introduce new employees to their
job responsibilities, organizational policies, co-
workers, and work environment .
 The orientation program is composed of two elements.
The first involves general topics of interest to most
employees which includes organizational issues and
employee benefits, and job-related issues of concern
only to specific jobholders
 “Organizational issues” like history of the
organization, names and titles of key executives,
organization policies and rules, and "employee
benefits" like salary scales, training and education
benefits, retirement, vacations and other similar
fringe benefits are explained by the human
resource department.
 On the other hand, the employee's immediate boss
presents “job-related matters” such as the job and
its objectives, tasks, safety requirements, and the
like.
 Purposes of Orientation
 Orientation serves a number of purposes if
effectively done. In general, the orientation
process is similar to what sociologists call
socialization. The major purposes of orientation
(Holt, 1993) are as follows:
 It develops realistic job expectation.
 It impervious productivity
 It saves time and effort
 It improves employment stability
 It reduces conflict