Human Resource Management

Module 2
 Topics Covered

Recruitment
Selection
Performance Appraisal
STAFFING
STAFFING
 STAFFING PROCESS
MAN POWER
PLANNING

SEPERATIONS JOB ANALYSIS

EMPLOYMENT
RECRUITMENT
DECISIONS

PERFORMANCE
APPRAISAL SELECTION

TRAINING & INDUCTION &

DEVELOPEMENT ORIENTATION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION
Merits of Internal Recruitment Demerits of Internal Recruitment
RECRUITMENT AND SELECTION
Motivates employees by providing Limits the pool of talent to existing
growth and promotion opportunities employees only
Improves employee morale and job Leads to inbreeding of ideas and lack
satisfaction of innovation
Reduces recruitment & training
May create unhealthy competition
costs
Faster and easier selection process Creates vacancies at lower levels
Better knowledge of candidates’
May result in favoritism or bias
strengths and weaknesses
Enhances loyalty and reduces Not suitable when specialized skills
employee turnover are required
Requires less orientation and Internal conflicts may arise among
induction training employees
Improves career planning and Promoted employees may not perform
succession planning well in new roles
Builds a sense of belonging and
Restricts diversity in workforce
organizational commitment
Encourages employees to improve
Causes stagnation if overused
performance
Merits of External Recruitment
RECRUITMENT Demerits
AND of External Recruitment
SELECTION
Brings fresh talent, ideas, and new
High cost of recruitment and selection
perspectives
Wider pool of candidates to choose from Time-consuming recruitment process
Helps in acquiring specialized skills and Longer induction and training period
expertise required
Encourages innovation and creativity Low morale among existing employees
Improves organizational competitiveness Risk of selecting unsuitable candidates
Helps in filling higher-level or technical Lack of knowledge about organizational
positions culture
Increases diversity in the workforce Possibility of higher employee turnover
Avoids internal conflicts among
Adjustment problems for new employees
employees

Suitable for rapid expansion of the Creates feelings of insecurity among

organization current staff
Prevents stagnation within the Confidential organizational information
organization may be exposed
SELECTION – MEANING
SELECTION – MEANING
SELECTION – MEANING
Type of Selection SELECTION – MEANING
Meaning / Purpose Example
Test
Measures general mental
Aptitude test for
ability such as reasoning,
Intelligence Test management trainees to
problem-solving, and learning
assess logical reasoning
ability
Assesses potential to learn Numerical aptitude test for
Aptitude Test
skills required for a job bank clerks
Achievement Measures existing job-related Accounting test for an
Test knowledge or skills accounts executive
Evaluates personality traits
Big Five personality test for
Personality Test like confidence, leadership,
sales managers
emotional stability
Identifies areas of interest and Vocational interest test for
Interest Test
preferences related to careers career counseling
Test assessing employee
Measures attitudes toward
Attitude Test attitude toward customer
work, authority, or teamwork
service
Type of Selection
Meaning / Purpose – MEANING
SELECTION Example
Test
Scientifically designed tests to Online psychometric
Psychometric
measure mental capabilities assessment used by IT
Test
and behavioral style companies
Situational Choosing best response to
Assesses decision-making in
Judgment Test a customer complaint
job-related situations
(SJT) scenario
Trade Test / Skill Evaluates practical skills Typing test for a data entry
Test related to a specific trade operator
Medical / Checks physical fitness and Vision and stamina test for
Physical Test health standards police recruitment
Detects substance abuse to Drug screening for airline
Drug Test
ensure workplace safety pilots
Emotional Measures ability to
EI assessment for HR
Intelligence (EI) understand and manage
professionals
Test emotions
Examines ability to perform Simulated emergency task
Stress Test
under pressure for air traffic controllers
Integrity / Assesses honesty, ethics, and Integrity test for cash-
Honesty Test reliability handling jobs
 BARRIERS IN EFFECTIVE
SELECTION SELECTION
– MEANING
Barrier Explanation Example
Lack of clear job description
Inadequate Job Hiring a marketing executive without
and job specification leads to
Analysis defining digital marketing skills
wrong candidate selection
Personal likes, dislikes,
Bias and Interviewer prefers candidates from
gender, caste, or regional bias
Prejudice the same state or college
influence decisions
Candidate speaks confidently, so
One positive trait influences
Halo Effect interviewer ignores lack of technical
overall judgment
skills
Rejecting a candidate due to
One negative trait
Horn Effect nervousness despite strong
overshadows other abilities
qualifications
Leniency or Interviewers rate candidates All candidates rated “excellent”
Strictness too easily or too harshly regardless of performance
Unstructured or irrelevant
Poor Interview Asking personal questions unrelated
questions reduce selection
Techniques to job role
accuracy
Quick hiring decisions due to Hiring staff hurriedly during festive
Time Pressure
urgency compromise quality sales season
Lack of Trained Interviewers lack skills to Line managers conducting
Interviewers assess candidates objectively interviews without HR training
 BARRIERS IN EFFECTIVE
SELECTION SELECTION
– MEANING
Barrier Explanation Example
Faulty Selection Tests not valid or reliable for Using IQ test for a sales job instead
Tests the job of aptitude or personality test
Ignoring potential and skills
Overemphasis Rejecting fresh MBA graduates
while focusing only on
on Experience despite strong analytical skills
experience
Inadequate
Failure to verify credentials Fake experience certificates not
Background
leads to wrong hiring checked
Verification
External Influence of referrals, Selecting a relative of a senior
Pressures favoritism, or political pressure manager
Poor Job expectations not clearly Candidate joins expecting field work
Communication communicated to candidates but assigned office role
Budget limitations restrict Skipping assessment centers to
Cost Constraints
proper selection methods save costs
High Applicant Large number of applicants Mass recruitment drives in IT
Volume makes screening difficult companies
 BARRIERS IN EFFECTIVE
SELECTION SELECTION
– MEANING
Type of Bias Meaning (Point) Example

One positive trait influences entire Good communication leads to

Halo effect
decision selection despite low skills

One negative trait dominates Poor dressing style leads to

Horn effect
judgement rejection
Preference for candidates similar Candidate from same college is
Similarity bias
to interviewer selected
Male candidate preferred for
Gender bias Preference based on gender
technical role
Older applicant rejected for sales
Age bias Discrimination based on age
job

Racial / cultural bias Bias based on culture or language Accent affects hiring decision

Judging based on group Assuming women are weak in

Stereotyping
assumptions finance roles
Early judgement affects final Initial confidence outweighs poor
First impression bias
decision answers
Seeking information to support Interviewer focuses only on
Confirmation bias
pre-judgement expected answers

Decision based on personal Friendly candidate selected over

Personal liking bias
preference competent one
PERFORMANCE APPRAISAL – Meaning
 PERFORMANCE
Importance ExplanationAPPRAISAL – IMPORTANCE
Example
Identifies strengths and A sales executive improves closing
Improves performance
weaknesses skills after appraisal feedback

Helps decide pay raise and High-performing employee receives

Basis for rewards
incentives annual bonus

Training needs An employee is sent for

Highlights skill gaps
identification communication skills training
“Best Performer” award increases
Employee motivation Recognition boosts morale
enthusiasm
Supports promotions and Team leader promoted to manager
Career planning
growth role
Encourages feedback and Manager discusses goals during
Better communication
discussion appraisal meeting
Objective HR
Reduces bias in decisions Promotion based on appraisal scores
decisions
Links individual goals with Employee targets aligned with
Goal alignment
company goals organizational KPIs
Organizational Identifies system or process Repeated low ratings reveal need for
improvement issues process change
Provides formal
Legal documentation Appraisal reports used in
performance records
Technique Description
PERFORMANCE APPRAISAL – IMPORTANCE
Supervisor writes a detailed description of employee performance,
Traditional Essay Method
strengths, and weaknesses.
Employees are ranked from best to worst based on overall
Straight Ranking Method
performance.
Paired Comparison Each employee is compared with every other employee to determine
Method relative performance.
Employees are rated in categories such as excellent, good, average,
Grading Method
or poor.
Employees are evaluated based on specific traits (e.g.,
Graphic Rating Scale
communication, teamwork) using a rating scale.
A list of statements is given, and the evaluator marks those that
Checklist Method
describe the employee’s performance.
Focuses on recording significant positive or negative behaviors of
Critical Incident Method
employees.
Behaviorally Anchored Combines rating scales with specific behavioral examples for accurate
Rating Scale (BARS) evaluation.
Management by Employees are evaluated based on achievement of predefined goals
Objectives (MBO) and objectives.
Performance feedback is collected from multiple sources such as
360-Degree Feedback
peers, subordinates, and supervisors.
Assessment Center Employees are evaluated through simulations, role plays, and
Method exercises.
Employees assess their own performance and identify strengths and
Self-Appraisal Method
weaknesses.
Type of Perf. Appraisal
PERFORMANCE Focus APPRAISAL – IMPORTANCE
Example
Manager rates employee as
Traditional appraisal Overall evaluation by supervisor
“Excellent” or “Good”
Employees ranked from best to Sales staff ranked based on
Ranking method
worst monthly sales
Each employee compared with Employee A compared with B,
Paired comparison
others C, and D
Employees placed in fixed 10% excellent, 20% good, 70%
Forced distribution
categories average
Graphic rating scale Rates traits on a scale Punctuality rated from 1 to 5

Checklist method Yes/No statements about behavior “Completes work on time” – Yes
Records important good/bad Praising an employee for
Critical incident method
behaviors handling a crisis
Management by Appraisal based on goal Manager meets 90% of set
Objectives (MBO) achievement targets
Input from manager, peers,
360-degree appraisal Feedback from multiple sources
subordinates, customers
Employee evaluates own Employee submits self-review
Self-appraisal
performance form
Peer appraisal Colleagues evaluate performance Team members rate cooperation
Used mainly in government Annual confidential report (ACR)
Confidential report
organizations in public sector
Prerequisite Key Point APPRAISAL –
PERFORMANCE Example
IMPORTANCE
Performance criteria must Sales target of ₹10 lakh per
Clear job standards
be well defined quarter
Objective appraisal Free from bias and Rating based on KPIs, not
system favoritism personal liking
Evaluators should be Manager trained to avoid halo
Trained appraisers
properly trained effect
Continuous feedback, not Monthly performance review
Regular feedback
one-time meetings
Employee Employees should be Employee sets goals jointly with
participation involved manager
Proper Accurate performance Attendance and performance
documentation records reports maintained
Uniform appraisal Same system for all Common appraisal form across
process employees departments
Top management Strong backing from HR policy approved by senior
support leadership management
Appraisal process should Employee knows rating criteria
Transparency
be open in advance
Appraisal connected to Increment based on appraisal
Link with rewards
outcomes score
 PERFORMANCE
Type of Bias Meaning (Point)APPRAISAL – IMPORTANCE
Example
One good trait influences Good communication leads to high
Halo effect
overall rating ratings in all areas
One negative trait affects Poor punctuality results in low
Horn effect
entire appraisal overall rating
Rater gives higher ratings to Manager rates all employees as
Leniency bias
everyone “Excellent”
Manager rates most employees as
Severity bias Rater gives very low ratings
“Poor”
Central
All employees rated average Everyone rated as “Satisfactory”
tendency
Recent performance is Last month’s success affects annual
Recency bias
overemphasized rating
Comparison with others Average employee rated low after
Contrast bias
instead of standards top performer
Ratings influenced by
Personal bias Friend gets higher appraisal score
likes/dislikes
Male employee rated higher for
Gender bias Gender-based discrimination
same work
Preference for similar Manager favors employees from
Similarity bias
background or traits same college
360 Degree Performance Appraisal – Meaning
Author Definition
360-degree appraisal is a system where feedback about an
employee’s performance is collected from multiple sources
T. V. Rao
including superiors, peers, subordinates, and sometimes
customers.
It is a performance appraisal method that gathers
Gary Dessler evaluations from all individuals who interact with the
employee, providing a comprehensive view of performance.
360-degree feedback is a process where employees receive
Stephen P.
confidential and anonymous feedback from the people who
Robbins
work around them to improve performance.
360-degree feedback is a multi-source assessment
approach where feedback is obtained from a range of
CIPD
stakeholders to provide a holistic evaluation of an
individual’s performance.
It is a performance appraisal system in which feedback is
David A. obtained from various sources including supervisors, peers,
Decenzo subordinates, and customers to enhance employee
development.
360 Degree Performance Appraisal – Features
Feature Description
Feedback is collected from multiple sources such as
Multi-Source Feedback
superiors, peers, subordinates, and sometimes customers.
Comprehensive Provides a holistic view of employee performance rather
Evaluation than relying on a single evaluator.
Responses (especially from peers and subordinates) are
Anonymity of Feedback
usually kept anonymous to ensure honesty.
Emphasizes employee growth, skill improvement, and
Focus on Development
personal development.
Improved Self- Helps employees understand their strengths and
Awareness weaknesses from different perspectives.
Reduces bias as feedback is gathered from multiple
Balanced Assessment
viewpoints.
Promotes better communication and collaboration among
Encourages Teamwork
team members.
Uses standardized questionnaires or rating scales for
Structured Process
evaluation.
Feedback-Oriented Focuses more on constructive feedback rather than just
Approach evaluation.
Supports Organizational Helps in improving overall performance and organizational
Development effectiveness.
360 Degree Performance Appraisal – Importance
Importance Description
Provides a complete view of employee performance by
Holistic Evaluation
collecting feedback from multiple sources.
Improves Self- Helps employees understand their strengths and
Awareness weaknesses from different perspectives.
Minimizes personal bias as evaluation is not dependent on
Reduces Bias
a single supervisor.
Enhances Encourages open communication and feedback within the
Communication organization.
Supports Employee Identifies training and development needs for skill
Development improvement.
Builds collaboration and better interpersonal relationships
Encourages Teamwork
among employees.
Continuous feedback helps employees improve their
Improves Performance
efficiency and productivity.
Assists management in making informed decisions
Better Decision Making
regarding promotions, rewards, and training.
Increases Employees become more responsible knowing they are
Accountability evaluated from multiple sources.
Aligns with Helps in aligning individual performance with
Organizational Goals organizational objectives.
 360 Degree Performance Appraisal – Process
Phase Step Key Activities
Define the purpose (development vs. pay raise), select
Goal Setting &
Preparation the evaluation criteria (competencies), and choose or
Tool Selection
build the survey platform.
The employee and manager select a diverse group of
Choosing
Selection "raters" (peers, subordinates, clients). Typically 8–12
Raters
people to ensure anonymity.
Questionnaires are sent out. Participants rate the
Survey
Distribution employee’s behaviors and skills, usually on a Likert scale,
Administration
and provide open-ended comments.
The employee completes the same survey for themselves
Self- Employee
to identify gaps between their self-perception and how
Assessment Evaluation
others see them.
The system aggregates the data into a report. Individual
Data
Analysis responses are anonymized (except for the supervisor's) to
Processing
encourage honesty.
A facilitator or manager meets with the employee to
The Review
Feedback discuss the results, highlighting strengths and "blind
Meeting
spots."
Based on the feedback, a personalized Professional
Development Action Planning Development Plan (PDP) is created to address specific
areas for growth.
360 Degree Performance Appraisal – Pros & Cons
Pros (Advantages) Cons (Limitations)
Provides comprehensive Feedback may be biased or
evaluation from multiple sources. influenced by personal relationships.
Improves self-awareness among Can create confusion due to
employees. conflicting feedback.
Time-consuming and complex to
Reduces single-rater bias.
administer.
Encourages open communication Requires proper training to interpret
and transparency. feedback correctly.
Helps in employee development May lead to misuse or manipulation
and training needs identification. of feedback.
Promotes teamwork and Employees may feel threatened or
collaboration. uncomfortable.
Provides balanced and fair Maintaining anonymity can be
assessment. difficult.
Useful for performance
improvement and decision- Implementation cost can be high.
making.
360 Degree Performance Appraisal – Challenges
Challenge Description
Bias in Feedback Personal relationships, favoritism, or conflicts may influence ratings.
Employees may hesitate to give truthful feedback due to fear of
Lack of Honesty
consequences.
Conflicting Opinions Different raters may provide inconsistent or contradictory feedback.
Collecting, analyzing, and reporting feedback from multiple sources
Time-Consuming Process
takes time.
High Cost of
Requires investment in tools, training, and administration.
Implementation
Raters may not be skilled in giving constructive and objective
Lack of Proper Training
feedback.
Resistance from Some employees may feel uncomfortable or threatened by multi-
Employees source evaluation.
Difficulty in Maintaining
Ensuring confidentiality of feedback providers can be challenging.
Anonymity
Data Overload Large amounts of feedback can be difficult to interpret effectively.
Misinterpretation of
Employees may misunderstand feedback, leading to demotivation.
Feedback
Focus on Personal Rather Feedback may sometimes become subjective rather than
Than Professional Aspects performance-based.
Without proper action plans, the appraisal process may not lead to
Lack of Follow-Up
improvement.