UNIT I

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

The importance of Human Resources - Objectives of Human Resource Management - Human

Resource Policies - Role of Human Resource Manager (9)

1.1. INTRODUCTION TO HRM

Human resource management is the strategic approach to nurturing and supporting

employees and ensuring a positive workplace environment. Its functions vary acting different
businesses and industries, but typically include recruitment, compensation and benefits, training
and development, and employee relations.

What is Human Resource Management?

 Human Resource Management (HRM) is a collective term for all the formal systems created
to help in managing employees and other stakeholders within a company.
 Human resource management is tasked with three main functions, namely, the recruitment
and compensation of employees, and designating work.
 Ideally, the role of HRM is to find the best way to increase the productivity of an organization
through its employees. Despite the ever-increasing rate of change in the corporate world, the
HRM role is not likely to change in a significant way.
 Until recently, a company's HR department was categorized in the lower rungs. This is
surprising considering the crucial role that this department plays in replenishing and
nourishing an organization's resources.

1.1.1. DEFINITION OF HUMAN RESOURCE MANAGEMENT (HRM)

 Human resource management is organizing, coordinating, and managing employees within

an organization to carry out an organization's mission, vision, and goals.
 This includes recruiting, hiring, training, compensating, retaining, and motivating employees
 HRM staff also develops and enforces policies and procedures that help ensure employee
safety.
 The HRM team manages adherence to federal and state laws that may work to employees
private information and ensure their physical safety and mental and emotional well-being
 Organizations of varying sizes and industries rely on HRM to keep business run smoothly and
efficiently

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1.1.2. PRINCIPLES OF HUMAN RESOURCE MANAGEMENT

The HR department has transformed significantly from the task-oriented nature

administration it used to be in the 1980s. It is now viewed as a strategy-focused extension every firm
The HR department thrives on specific principles, as highlighted below:

1. Commitment
One aspect that the HR department tries to deal with is job security. To guarantee je security,
many employees know that they need to show commitment to the company and their job duties. The
HR management comes in to put measures in place that ensure that staffing levels correspond to the
company's needs and that, in the process, assure employees of their long-term positions within the
organization. The firm demonstrates its long-term commitment to the workers by providing regular
training, performance evaluations, and goal-setting activities.

2. Competence
Competence is one of the core principles that support a company's growth and development.
It is also an aspect that affects employees' job satisfaction and how the company benefits society.
The success of a firm depends on the competency of its employees. The HRM department tries to
sustain workforce competency by providing training opportunities. It also schedules orientation
programs, which provide avenues to enlighten new employees on a company's mission and
objectives. Training and orientation are essential in improving employees' skills, knowledge, and
competency
The benefit of having a competent workforce is that it leads to the production of safe and
reliable products and services that consumers can rely on. In the absence of a high level of
competence, a company will be susceptible to lawsuits and legal claims resulting from the products
and services that it renders.

1.1.3. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

1. Employee Recruitment
Recruitment is the process of identifying talent gaps in a company and finding the right
people to fill the roles.
There are four stages in the employee recruitment process
Job analysis
This involves defining the various aspects of a job through job description and specification.
Through job description, the HRM department identifies the tasks required for a specific job while
the latter defines the requirements an individual needs to fulfill that job.
Sourcing
This encompasses the different techniques a company employs to attract potential candidates
to fill a given position. This can be achieved through internal and external advertisements

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Screening and selection
This is the process of evaluating the candidates who apply for the job. The evaluation is
performed to determine the skills, qualifications, competency, and job-related experience that
potential candidates bring to the table.
Selection of the right candidates
Once the best candidate has been selected, the next process that follows is onboarding. This
is simply helping the new recruits become productive members of the company.

2. Employee Orientation
Another core function of human resource management is employee orientation. Also known
as onboarding, it is the process of teaching new recruits the necessary skills, knowledge, and
behaviors so that they can transition to the new company effectively. Employee orientation is a
broad process conducted by the HR department, and it's done through different methods, including
lectures, meetings, videos, mentoring, and team -building exercises. The main objective of the
orientation is to provide new recruits with adequate information regarding the company's targets,
rules, policies, and activities.

3. Employee Development
Employee development refers to all the efforts for improving personal, team, and
organizational effectiveness. One aspect the human resource department tackles is talent
development. This involves aligning the employees' skills with the company's needs. In addition to
hiring, training, and orienting employees, HRM should also improve their career opportunities.
Essentially, it is more economical to improve a company's current workforce than to hire new
employees in the future. So, employee development is a trade-off through which human resource
management saves money by avoiding the potential costs of hiring new employees.

1.1.4. PURPOSE OF HUMAN RESOURCE MANAGEMENT (HRM)

Companies use HRM to invest in employees to boost job satisfaction and improve employee
performance. The methodology behind HRM recognizes the value employees bring to an
organization, also known as human capital. Investing in employees and strategically supporting their
needs can improve job satisfaction and, therefore, greater success in their role within an
organization. Employees who are well trained, competent, valued, and supported by their employers
will likely have the skills and motivation necessary to carry out the organization’s goals. This might
look like tuition reimbursement programs, on-the-job training, or mentorships within an
organization that can help employees develop their talents and boost productivity
HRM aims to create a highly skilled workforce and boost confidence and competence so tha t
employees are motivated to contribute
HRM has a strong focus on company culture and job satisfaction. Much of what motivates
employees comes from the culture in which they work. Building and maintaining company culture
can be challenging to measure and quantify, but it's an important function of HRM to retain and
recruit employees. HRM also protects employees. Human resource (HR) professionals manage legal
documents, policies, and regulations, identify what applies to their organization, and find effective

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ways to educate employees and enforce company policy. HRM aims to be an ally or partner to
employees. HRM emphasizes employee development while protecting employees from
discrimination, workplace hazards, and unfair compensation.

1.1.5. ELEMENTS OF HUMAN RESOURCE MANAGEMENT (HRM)

HRM includes recruiting new hires, evaluating employee performance, ensuring fair
compensation and benefits, training employees and supporting education and development, and
protecting the health and safety of all employees. These are critical cornerstones of the work of HRM
professionals. From crafting a job posting to providing continuing education options, HRM functions
at all stages of an employee's journey with an organization. To be an effective HRM professional, a
mix of personal and technical skills like recruitment strategies, creating compensation plans, and
communication and team building.

a. Recruitment
An effective recruitment process is at the foundation of HRM. If you can recruit good talent,
you can build on their skills and invest in employees for years to come as they add value to the
organization. Equally important is company culture. Some common recruiting tools HRM may use
include job aggregators like Indeed or Simply Hired, video interviewing, or even social media sites
like LinkedIn.

b. Evaluation and performance management

HRM uses data to track employee performance to ensure a highly trained and capable
workforce. The data compiled can also be used to change staff training methods, implement a merit-
based system for raises, and more. HRM professionals use formal measures like performance
reviews and informal methods like interviews or surveys.

c. Compensation
Compensation can mean salary, commission, benefits, time off, and other non-monetary
benefits. HRM looks to the industry standard to set salary rates, commission rates, and benefits. This
ensures fairness and allows for a consistent company standard. Some organizations may use
performance reviews to adjust an employee's salary, among other measures.

d. Employee development and learning

Engaged employees are effective employees. HRM understands the importance of a
workforce that is challenged but also supported. Most employees want opportunities for
advancement and to feel competent and valued in what they bring to an organization.
Part of HRM is providing these learning opportunities to employees. This might include
tuition reimbursement programs, on-the-job training options, conferences, conventions, or
certification programs. Aside from individual learning, HRM can also use employee development and
learning to help employees adapt to organizational changes, such as system upgrades, technology
shifts, and new policies.

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e. Employee health and safety
The safety and well-being of an organization's employees are critically important aspects of
HRM. Employee health and safety covers a lot, such as safety against harassment, discrimination, or
bullying in the workplace. It can mean physical safety that would involve building fire code
compliance. It can also mean adherence to labor laws that protect an employee's rights in the
workplace.
Safety in the workplace means cyber security or safeguarding an employee's personal
information. A lot goes into protecting all aspects of employees' health and safety, and it is the job of
HRM professionals to ensure that protection.
A few ways HRM professionals may go about this is by installing security cameras, enforcing
internet usage rules, implementing a zero-tolerance policy, or creating restricted access areas.

f. Payroll specialist
Payroll specialists gather employee information, ensure its accuracy, and administer
compensation based on hours worked. This role usually works with a team of other payroll
specialists and other departments to approve expenses manage budgets, and process payroll. A
degree in accounting or experience in payroll or accounting is common.

g. Training and development manager

A training and development manager, who may also be called a training coordinator, oversees
employment training and implements training initiatives to build employee competence. Other
responsibilities of this role may include communicating an organization's mission statement or
company values and creating training programs. Training coordinators typically hold a bachelor's
degree and relevant certifications, and have experience in HR.

1.2. IMPORTANCE OF HUMAN RESOURCES

A human resource department is also in charge of keeping employees safe, healthy, and
satisfied. With proper IIR management, workplace policies keep up with necessary protective
measures and implementation and provide solutions to issues between team members, avoiding risk
for the company and its employees. The simplest human resource description would be to say it's
the department of a company or organization that handles the relationship between employees and
leadership. Human resource management (HRM) is the sector of HR that oversees these
departments HR covers a number of positions, responsibilities, and aspects of company efficiency
and staff well-being and each area of human resources requires strong leadership from an
experienced manager.
Some of the most important responsibilities within the HRM department include:

a. Hiring and Training New Employees

An HR professional holding a management position is often in charge of recruiting hiring and
training new employees. This means the HR team is responsible for finding candidates who meet the
necessary qualifications for specified positions and fully vetting a company's hires.

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 Human resource managers are also expected to embrace and promote diversity among staff,
orient team members to their new work environment, and ensure healthy interactions between
employees and organizational leadership.
But what does a human resource manager do exactly when it comes to hiring and training?
Some of the most common tasks for this type of HR manager may include:
 Conducting interviews and reading resumes
 Performing background checks on applicants
 Overseeing or leading training procedures
 Implementing new training techniques
 Writing job descriptions, posting job listings, and recruiting potential candidates
 Making a good impression on behalf of the company (HR is usually the first department
candidates will meet)
The bottom line-An HR professional is often the face of the company for potential new employees.
Recruitment, hiring, and training policies are supervised and improved upon with the help of HR
managers.

b. Keeping Employees Safe and Happy

A human resource department is also in charge of keeping employees safe, healthy, and
satisfied. With proper HR management, workplace policies keep up with necessary protective
measures and implementation and provide solutions to issues between team members, avoiding risk
for the company and its employees.
Daily duties for an HR manager who specializes in employee relations may include:
 Creating workplace safety policies
 Ensuring the organization follows federal and state occupational laws
 Addressing employee concerns and complaints
 Preventing and dismantling harassment or discrimination in the workplace
 Managing employee relationships
 Facilitating communication between leadership and employees
The bottom line HR managers are in charge of many duties, but employee well-being should
always remain a top priority. As a human resource manager, spend a lot of time speaking to
employees, listening to concerns, and managing workplace relationships. The main goal of a
successful, strategic HRM should be to ensure the staff feels safe, respected, and heard at all times.

c. Managing Company Risk

The HR department works with organizational leadership to help manage risk and
compliance. Human resource managers should be well-versed in business law, ethics, statistics, and
problem-solving in order to help manage their company's risk.
As an HR manager, may be put in charge of the following risk management responsibilities.
 Analyzing statistical risk using company data
 Addressing and preventing potential lawsuits
 Supervising firing practices
 Properly training other managers

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  Implementing diversity and Title IX training
 Protecting the organization's data and upholding privacy for sensitive information
 Vetting new hires and improving hiring procedures
The bottom line Human resource management is intended to protect the company and its
employees. As a risk management specialist, help manage company's risk in a manner that involve
statistical analysis, knowledge of business law, and overall improvement of company policies and
practices.

d. Paying Employees and Negotiating Benefits

Even employees who love their jobs wouldn't do them if they weren't getting paid One of HR's
primary roles is managing payment and benefits for an organization's staff. Proper management of
compensation, time off, and insurance is what keeps employee satisfaction high. As a human
resource manager, in charge of distributing, communicating, and improving compensation and
benefits packages.
Responsibilities within this department may include:
 Negotiating insurance packages with vendors
 Communicating benefits to new hires
 Keeping track of payroll
 Organizing employee paperwork (for payment and taxes)
 Creating 401k and pension plans
 Managing vacation time, paid time off, and sick days
 Sorting out raises and bonuses for staff
This is perhaps one of the most vital parts of HR management, since many candidates choose
their place of employment based on salary and benefits.
As a manager, the opportunity to develop these packages and improve employee benefits as
the company grows.
The bottom line Human resource managers are often put in charge of employee
compensation and benefits. Proper leadership within the HR department will involve negotiating
insurance plans, making sure payments go out on time, and improving and developing employee
benefits packages.

e. Strategic Management
HR improves the company's bottom line with its knowledge of how human capital affects
organizational success. Leaders with expertise in HR strategic management participate in corporate
decision-making that underlies current staffing assessments and projections for future workforce
needs based on business demand.

f. Wages and Salaries

HR compensation specialists develop realistic compensation structures that set company
wages competitive with other businesses in the area, in the same industry or companies competing
for employees with similar skills. They conduct extensive wage and salary surveys to maintain
compensation costs in line with the organization's current financial status and projected revenue.

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g. Analyzing Benefits
Benefits specialists can reduce the company's costs associated with turnover, attrition and
hiring replacement workers. They are important to the organization because they have the skills and
expertise necessary to negotiate group benefit packages for employees, within the organization's
budget and consistent with economic conditions. They also are familiar with employee benefits most
likely to attract and retain workers. This can reduce the company's costs associated with turnover,
attrition and hiring replacement workers.

h. Safety and Risk Management

Employers have an obligation to provide safe working conditions. Workplace safety and risk
management specialists from the HR area manage compliance with U.S. Occupational Safety and
Health Administration regulations through maintaining accurate work logs and records, and
developing programs that reduce the number of workplace injuries and fatalities. Workplace safety
specialists also engage employees in promoting awareness and safe handling of dangerous
equipment and hazardous chemicals.

i. Minimizing Liability Issues

HR employee relations specialists minimize the organization's exposure and liability related
to allegations of unfair employment practices. They identify, investigate and resolve workplace
issues that, left unattended, could spiral out of control and embroil the organization in legal matters
pertaining to federal and state anti-discrimination and harassment laws.

j. Training and Development

HR training and development specialists coordinate new employee orientation, an essential
step in forging a strong employer-employee relationship. The training and development area of HR
also provides training that supports the company's fair employment practices and employee
development to prepare aspiring leaders for supervisory and management roles.

k. Employee Satisfaction
Employee relations specialists in HR help the organization achieve high performance, morale
and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-
employee relationship. They administer employee opinion surveys, conduct focus groups and seek
employee input regarding job satisfaction and ways the employer can sustain good working
relationships.

l. Recruitment and Onboarding

HR recruiters manage the employment process from screening resumes to scheduling
interviews to processing new employees. Typically, they determine the most effective methods for
recruiting applicants, including assessing which applicant tracking systems are best suited for the
organization's needs.

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m. Hiring Processes
HR professionals work closely with hiring managers to effect good hiring decisions, according
to the organization's workforce needs. They provide guidance to managers who aren't familiar with
HR or standard hiring processes to ensure that the company extends offers to suitable candidates.

n. Maintaining Compliance
HR workers ensure that the organization complies with federal state employment laws They
complete paperwork necessary for documenting that the company's employees are eligible to work
in the U.S. They also monitor compliance with applicable laws for organizations that receive federal
or state government contracts, through maintaining applicant flow logs, written affirmative action
plans and disparate impact analyses.

1.2.1. OBJECTIVES OF HRM

Some of the objectives of HRM include accomplishing organizational goals, work culture,
training and development, employee motivation, empowering employees, and team coordination.
Objectives of HR acquisition are planning, recruiting, selecting the most efficient individuals,
orientation, and placement.

The main objectives of human resource management are:

 Accomplishing Organizational Goals

 Enhancing Positive Work Culture
 Training and Development
 Employee Motivation
 Team Coordination

a. Accomplishing Organizational Goals

One of the main aims is to fulfil the company's goals. For an effective and efficient HRM, it is
important to utilize human resources to accomplish the company's requirements and objectives.
In order to be successful in achieving organizational objectives, HR needs an efficient plan
and implementation.

b. Enhancing Positive Work Culture

When it is about managing human resources efficiently and following goals, employees and
the environment in which they work are important factors. The HR managers must be active in
creating strategies to facilitate enhanced work culture.

c. Training and Development

With effective training and offering future opportunities, employees are more organized and
they feel comfortable and safe. Effective employment is greatly associated with training practices.
Therefore, offering such opportunities will be a good step for the management of the workforce.

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d. Employee Motivation
A major aim of HR is to keep things in the correct direction and keep diversions and negativity
away. In order for this to happen the employees must be encouraged and motivated the whole time.

e. Empowering Employees
In order to motivate employees, there is nothing better than workforce empowerment. This
can be done with the help of tools such as a portal of employee self-service that will also save HR
efforts also.

f. Team coordination
Another main objective of Human Resource Management is to ensure efficient team
integration. Human resources should provide a tool that facilitates easier communication and makes
coordination smoother.

ii. Functional objectives of Human Resource Management

HRM functional objectives refer to the specific goals and tasks that human resource
management aims to achieve in order to effectively manage an organization's workforce in all
departments.

Typically, there are four functional objectives of the HRM:

1. Recruitment and selection
2. Training and development
3. Performance management
4. Employee relations
On the other hand, non-functional objectives of HRM refer to the broader goals of human
resource management that are not directly related to managing the workforce. These objectives may
include improving organizational culture, promoting diversity and inclusion, and ensuring
compliance with legal and ethical standards.

iii. Human Resource Acquisition

One of the functions of human resource management includes setting acquisition objectives.
Human resource acquisition involves the hiring of individuals to help a company achieve its goals. It
comprises the activities from HR planning to placement.

a. HR planning
The objective is to plan for a suitable HR policy in the company and attempt to formulate it.

b. Recruiting
The objective is to attract, hire and retain skilled individuals and it is the most fundamental
function of human resources. There are numerous components such as creating job descriptions,
interviewing people, making offers, and negotiating salaries.

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c. Selecting the most efficient individuals
Another most significant objective is to acquire efficient employees from various sources. Not
just that, selecting human resources is also a vital element of HRM.

d. Orientation
This is a preliminary step in the process of new employee integration.
The main objectives are:
 To win employee commitment
 Lower the anxiety level
 Support in understanding the expectation of the company
 And communicate what he/she anticipates from the job and the company.

e. Placement
The objective here is to properly guide the employee so that he/she is motivated to perform
their tasks.

HR Acquisition objectives are;

Human resource management is the administration of human resources.
 Human resource management mainly denotes managing employees and recognizing their
needs to maintain an optimistic work culture,
 The co objective of HRM (Human Resource Management) is to effectively manage an
organization's workforce to achieve its strategic goals and objectives
 Some of the objectives of HRM include accomplishing organizational goals, work culture,
training and development, employee motivation, empowering employees, and team
coordination.
 Objectives of HR acquisition are planning, recruiting, and selecting the most efficient
individuals, orientation, and placement.
 A functional objective is to uphold the contribution of different departments to support
the organization in achieving its objectives.

1.3. HUMAN RESOURCE POLICIES

Human resources policies are guidelines for hiring, work processes, compensation, leave,
training, promotion, work environments, termination and other important functions. HR policies
also outline how an organization will treat its people and property.
HR policies add structure and provide consistency in employment and workforce matters.
Examples include:
• Ensuring fair and adequate compensation for all employees.
 Addressing employee grievances and problems and appropriate ways to address
them.
 Training employees so their skills meet organizational needs.
 Providing the framework to address personnel issues.

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 Before establishing HR policies in organization, first be aware of any regional laws relating to
employee policies. Some may require employers to communicate workplace information to
employees in writing. In the absence of specific stipulations such as this one, employers should
implement policies that fill in the gaps, such as a policy that communicates company expectations
and benefits.
The contents of your organization's handbook will depend on a number of factors, including
the organization's size, location, and industry. There are several policies that all organizations should
include in their handbook, some of which are outlined first. However, depending on business, may
also need to include any number of the listed "trending" company policies for employee handbook.

1. At-Will Employment Policy

This policy reiterates that both an employer and employee can terminate the employment
relationship at any time and for any reason, providing said reason is lawful. Aim to prominently
display this statement in the beginning of employee handbook.

2. Anti-Harassment and Non-Discrimination Policy

These policies prohibit harassment and discrimination from taking place in the workplace.
These are always governed by federal, state, and local provisions, so it is important to review the
applicable laws and account for all the appropriate protections when stipulating this policy.

3. Sexual Harassment Policy

Especially in the modern workplace, sexual harassment is a high-profile concern. Informing
and educating employees through an up-to-date sexual harassment policy is critical, and some
regions may even require that organization have one in place.
Safeguard company by clearly communicating zero-tolerance guidelines for unwanted,
unwelcome, or inappropriate sexual comments or actions.

4. Employment Classifications Policy

It is an HR best practice to clearly define employment classifications. This can include full-
time, part-time, exempt, or non-exempt. These can dictate their eligibility for benefits and overtime
pay, so it should be a principal policy to clearly stipulate all employee classifications.

5. Leave and Time-Off Benefits Policy

These policies should address your organization's rules and procedures regarding holidays,
vacation, sick, and all other types of time off benefits. It should also cover leave required by law, such
as voting leave, family leave, and domestic violence leave. Review regional laws to ensure all leave
requirements are included in HR policies.

6. Meal and Break Periods Policy

A clear policy on meal and break periods ensures employees are well-informed on the
frequency and duration of said breaks, as well as any additional rules or restrictions relating to them.
Regional laws may stipulate specifications relating to lactation breaks, rest periods, and meal
periods, so ensure policies align with those.

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7. Timekeeping and Pay Policy
A timekeeping policy keeps employees informed of the appropriate method for recording
their time worked, as well as the importance of accurately recording their time.
Policies on pay periods communicate the frequency of paydays to employees, the methods
available for receiving payment, and any special procedures that may take place should a payday fall
on a holiday or when the employee is absent from work.

8. Safety and Health Policy

These policies describe the safety and emergency procedures of the workplace and require
employees to report any work-related injuries immediately.
There are several regulations under the Occupational Health and Safety Act that require
employers to have specific policies in place if certain workplace hazards exist. For example, if certain
chemicals are present in the workplace, a company should have a hazard communication program
as part of their health and safety policy.

9. Employee Conduct, Attendance, and Punctuality Policy

Attendance policies clearly communicate when employees must be ready to work, stipulating
their scheduled start time each day and providing procedures for informing their supervisors of
unscheduled absences or late arrivals.

1.3.1. KEY ELEMENTS FOR HR POLICIES

Although the specifics of each organization's HR policies may differ, they should all be derived
from employment best practices and regulations. HR policies should be transparent and universally
applied to all employees.
Key elements include purpose, procedures, who needs to follow the guidelines, as well as any
definitions of terms used.
Important elements include:
 Guidelines for supervisors and managers
 Organizational goals and values
 Systems to regularly review changes that may affect employees
 Context for various programs and benefits, such as professional development and onboarding
programs
 Clear steps to implement policies

HR policies are just one component of your overall workforce plan and HR strategy for employee
management. So, what are HR strategies and policies? The HR strategy is overall goal for how to
manage workforce and help them grow while also boosting company performance. And the policy is
how to implement that strategy. Policies should be kept in employee handbook and stored for easy
access for employees, managers and HR team. A human resource management system (HRMS) can
help not only store the appropriate policies and procedures, but also implement some of them.
For example, an HRMS can automate time off and scheduling functions.

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1.3.2. ADVANTAGES OF HR POLICIES

Creating and implementing HR policies can reduce liability. Since they're meant to ensure
employee-related practices are consistent and fair across the organization, well- written policies will
offer leaders guidance based on compliance requirements.
For instance, HR policies should help managers fairly interpret company guidelines and apply
uniform treatment to all employees, regardless of age, gender, race or sexual orientation. If issues do
occur, there will be policies in place to address the concerns.
By clearly listing policies, when problems do occur, you're able to act promptly and save time
by not repeatedly analyzing ways to solve similar issues. Additionally, legally required to
communicate some of this information. And formalizing a policy and then helping employees
understand where to find things like the leave policy makes navigating requests like time off easier
for the employer and employee. Plainly listing policies encourages employee engagement and helps
them better understand how to navigate key moments in their career growth, such as onboarding,
promotions and off boarding. Specific policies may vary by industry.
But whether working in retail, manufacturing or the restaurant business, employee
engagement and retention is vital, and HR policies help lay the groundwork for success.

1.3.3. HR POLICIES & COMPLIANCE

HR policies need to be compliant with local, state and federal regulations, especially for
companies with at least 50 employees. Even company has fewer than 50 workers, HR policies can
help organization be proactive about shaping company culture and encourage efficiency.

a. Federal & State Laws Compliance

HR department should make sure company follows federal employment regulations, such as
the Family Medical Leave Act (FMLA), EEO-1 reporting for federal contracts and employer-shared
responsibility as it pertains to the Affordable Care Act (ACA).

b. City & County Laws Compliance

Organizations also need to maintain compliance with local and state regulations.
For example, there may be local minimum wage laws or anti-bias rules should be aware of
when crafting HR policies.

c. HR Policies for Employee Handbooks

Along with local, state and federal policies, need to address factors that are relevant to the
type and size of company, as well as how to communicate the guidelines in a transparent manner. It
is also important to have a process to record an employee's acknowledgement and understanding of
HR policies. Here are 20 policies to consider for employee handbook that follow some of those
policies, along with commonly accepted and best business practices.

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1. Recruiting and Hiring Policies
Pre-hire policies include forms like new position requisition forms, referrals and evaluation
forms. Formalize the onboarding process, which includes tax forms like the W-4. Consider
standardizing the interviewing, selection and contract or offer letter processes.

2. At-Will Employment
State at the beginning of the employee handbook if employees are at-will, which means either
the employee or the employer can end the employment at any time, as long as the reason is lawful.
Check local and state regulations for at-will employment guidelines.

3. Conduct Policies
The goal of employee conduct policies is to keep the workplace environment safe and
comfortable for all. These include sexual harassment, alcohol and anti-discrimination policies.

4. Employment Classification
Common classifications include full time, part time, exempt and non-exempt employees.
These classifications help dictate eligibility for employee benefits and overtime pay.

5. Non-Discrimination and Anti-Harassment

Carefully craft your non-discrimination and anti-harassment policies with review of local,
state and federal laws, as the regulations may change depending on location. Include the processes
to follow if issues should arise along with what constitutes harassment and discrimination.

6. Safety Policies
Help employees understand safety and emergency procedures. It's important that any work-
related injury is reported quickly, so share with employees how to report workplace accidents. Look
for industry-specific safety policies may need to implement to comply with regulations under the
Occupational Safety and Health Act. For example, the use of heavy machinery or hazardous
chemicals.

7. Reasonable Accommodation
If employees with disabilities or sincerely held religious beliefs request it, may be legally
required to provide reasonable accommodation. State and federal laws may apply, so be sure to
understand what's legally required and then document and communicate the policies on how
employees can submit requests and what accommodation will be made. Even if employees don't
submit the request in writing, be sure to document each request and any action taken.

8. Disciplinary Termination Policies

These can span different types of policies, such as rules for attendance and anti- harassment,
and need to cover reasons for disciplinary action that may result in termination. These policies
should also include how disciplinary actions will escalate, such as going from verbal to written
warnings.

15
9. Compensation Policies
Compensation policies should cover employee benefits and payroll frequency. It should also
include how employees are paid (i.e., direct deposit) and any secondary benefits, such as education
reimbursements.
10. Workplace Attire Policies
Appropriate workplace attire should be described in detail. Instead of using generic language
like "professional attire," be specific. And include information about different environments in
workplace. For instance, have a lab, include what type of safety goggles need to be worn for
compliance reasons, or what attire teachers can wear on sports day.

11. Attendance Policies

Clearly outline for employees when they are expected to be at work and what to do if they
have an unscheduled or scheduled absence or are late for work. Don't forget to include how to record
time worked and break policies.

12. Referral Program Policies

If have a referral policy, include it in employee handbook. List how any referral rewards are
provided and any stipulations, like if the new hire has to stay employed for a specific time frame
before the reward is given.

13. Expense Policies

If reimburse for expenses, outline what is reimbursable, the maximum amount and the
procedures to request reimbursement.

14. Leave Policies

Share with employees how to request time off. And list policies for sick leave, vacation time,
maternity and paternity leave, and any company-recognized holidays.

15. Sexual Harassment

Sexual harassment needs to be taken seriously. Keep policies up to date and clearly
communicate zero-tolerance guidelines as it relates to any inappropriate or unwelcome sexual
actions or comments.

16. Bereavement Policies

Bereavement policies can be included in general leave policy section or as a separate entry
for compassionate leave. Detail the time off provided and how to make a request, including what to
do if employees need to take a longer leave of absence.

17. Local and State Laws

Employment law will vary by location. Understand what local and state laws require and
include any variation in employee handbook. For example, there may be differing wage and overtime
laws, leave requirements or record keeping regulations.

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18. Meals and Break Periods
Be clear about any meal and break period rules, including how long they can last and how
many breaks employees can take. Some breaks may be required, but even if it's not a legal
requirement, listing your break policy is a best practice.

19. Using Company Property

Include documentation and procedures for the process of using company property such as
equipment or tools. Incorporate things like the condition equipment should be in when returned, as
well consequences if items are either damaged or not returned.

20. Resignation or Exit Policies

Make clear how employees should leave the company when they are ready to exit. Include
information on how to hand in their resignation, the desired notice time and exit interview policies.
Also, list reasons for involuntary terminations.

1.3.4. TRENDING HR POLICIES

1. Weapons in the Workplace Policy (or Zero Tolerance for Workplace Violence)
Employers have an obligation to protect employees from all forms of workplace violence,
including physical violence, harassment, intimidation, and even disruption. Addressing weapons and
violence policies can be combined into general harassment or safety policies or can be
communicated on their own.
Some questions to address in a weapon in the workplace policy include:
 What conduct are aiming to prohibit?
 What items are considered weapons?
 What disciplinary measures do want in place?
Weapons in the workplace policy should comply with regional laws, including posting
requirements and privacy laws, should list specific examples of prohibited violent conduct, and
should explain responsibilities under workplace violence-prevention plan.

2. Remote Workers Policy

Many modern workplaces are allowing more and more of their employees to work remotely
from home, or some other location outside the main office. However, not all jobs and employees are
well-suited for remote work, so it is important to clarify organization's position on remote work
itself.
Questions to address in a remote worker policy include:
 Who is eligible for remote work?
 Are there any limitations on remote work?
 How will monitor remote workers?
Remote workers' policy should comply with any regional laws, should have a specific time
and pay policy for remote workers, and should stipulate right to end the ability to work remotely at
any time.
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3. Bring Own Device (BOD) Policy
As more employees begin to use their own devices for business, including phones, laptops,
and tablets, privacy and security matters need to be taken into consideration. There are also
concerns of any personal devices being lost or stolen. A policy relating to the use of personal devices
should be a part of any modern workplace.
Questions to address in a BOD policy include:
 What personal devices will allow employees to use?
 How will monitor personal devices?
 What limitations or security features will require?
Personal device policy should comply with any applicable regional laws, establish a
procedure for end of employment, and include any applicable risks or liabilities associated with the
use of personal devices for business matters.

4. Social Media Policy

A social media policy can be what protects company's reputation, both online and Deyond.
Despite its relatively modern nature, still draft this policy to withstand scrutiny from regional labor
relations board.
Questions to address in a social media policy for the workplace includes
 Do need a policy for both business and personal social media use?
 What guidelines need to be established?
 How will control social media use at work?
Social media policy should also list the store confidential information that should never be shared
on social media and explain the disciplinary measures for social media policy violations.

5. Drug and Alcohol Policy

Due to the expanding laws legalizing marijuana use, drug and alcohol policies are becoming
more and more relevant to the modern workplace. Aim to keep in mind any regional laws relating to
specific substances when drafting this policy.
Questions to address in a drug and alcohol in the workplace policy include:
 What substances will be prohibited?
 What testing procedures do want in place?
 What are disciplinary measures for policy violations?

6. Updated Confidentiality Policy

Broader policies that require employees to keep all information confidential are no longer
effective. Due to the changing nature of how information gets shared, it is important to be specific in
confidentiality policies, excluding any items that a labor board may not deem private, such as wages
and working conditions.
Questions to address in a confidentiality policy include:
 What are organizations needs to remain confidential?
 What confidentiality parameters do want to set?

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  What are the consequences of violating this policy?
Confidentiality policy should provide specific examples of the confidential material in
question, list employee obligations (e.g., not discussing confidential information over unsecured
networks), and comply with any applicable regional laws. Current events and changes in the
business landscape mean HR policies are not static. Addressing workplace trends can help on top of
best practices and protect organization in a dynamic environment.
Policies will change as business develops, and they should support overall human capital
management efforts to help employees grow in their careers while keeping business nimble and
adaptive. What are the most important HR policies? It will change based on company, the location
the industry, the size and what most helps employees. There are many that are legally mandated,
and some policies are simply common and standard to include. Regardless, it's important to adjust
as business situations alter.
Consider including these six trending HR policies in employee handbook:

Social media policy

Creating and enforcing social media policies can protect the reputation of company. Need
policies for company accounts, as well as policies for employees' personal social media profiles.
Include what disciplinary measures will be taken for policy violations.

Remote work policy

As workforces become increasingly mobile, help employees understand what expect of them.
Include which employees are eligible for remote work, what limitations there are and how
monitoring their work.

Weapons in the workplace policy (or zero tolerance for workplace violence)
Organizations should address additional violence policies, such as weapons, what items are
considered weapons and behavior that's prohibited and any disciplinary measures that will be taken
for policy violations.

Updated confidentiality policy

Be specific about which work-related items are confidential. Don't include items such as
compensation and working conditions because those aren't considered private.

Drug and alcohol policy

Expanding laws regarding the legalization of marijuana in some areas means organizations
need to address how usage is addressed in the workplace. Keep in mind all local, state and federal
laws regarding substance use when drafting the policy.

Bring your own device (BYOD) policy

If employees use personal devices for work reasons, draft policies for privacy and security
measures, as well as any monitoring that needs to occur.

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1.3.5. SUPPORTING HR POLICIES WITH HR SOFTWARE

Using HR software is an efficient and convenient way to keep the records you need to draft,
implement and monitor HR policies. For instance, onboarding new employees or reimbursing
employees may require workers to submit forms. HR software can make it more efficient by
digitizing those forms and housing all documentation and records in one place. This data can then
be used to track, assess and analyze whether policies are adhered to and decide what changes need
to be made.
Organizations need effective and clear HR policies to establish order and to create a positive
work environment. HR issues will come up and require leaders to address them, so having policies
in place will alleviate the burden of having to assess how to address the same types of issues over
and over again. Clearly communicating policies benefits both the employer and the employee.

1.3.6. FUNCTIONS OF HR POLICIES

Human Resource (HR) policies are meant to provide frameworks for an organization, within
which consistent decisions can be made, and through which equity in the way people are treated can
be promoted. The implementation of strong HR policies can help an organization demonstrate, both
internally and externally, that it meets the requirements for diversity, ethics, and training required
in today's workplace, and meets its commitments regarding regulation and corporate governance of
employees.
HR policies set out obligations, standards of behavior and document disciplinary procedures
(among many other things). Their specific function can vary widely, including but not limited to:
 Providing clear communication between an organization and its employees regarding
their condition of employment.
 Forming a basis for treating all employees fairly and equally.
 Setting and managing employee expectations.
 Establishing guidelines for supervisors and managers.
 Forming a basis for developing the employee handbook.
 Communicating the organization's goals and values.
 Creating a basis for regularly reviewing possible changes that affect employees.
 Providing a "how-to' on how to apply policies across all levels of an organization.
 Forming a context for various programs, such as supervisor training programs and
employee onboarding and orientation programs.
 Ensuring all policies are aligned to legal requirements and best practices.
 Creating a common and healthy working environment.
 Giving a clear picture of career growth in the organization.

1.3.7. IMPORTANT TO HR POLICIES

Defined HR policies in the workplace should be a principal objective for any Human Resource
department. In 2018 Small Business Compliance Survey conducted by Comply, it was found that

20
while 84% of businesses offered employee handbooks and formal written policies, and 85%
required its employees to acknowledge receipt of these policies, there were some essential policies
not stipulated clearly within the workplace.
For example, 56% of these small businesses did not have a formal weapons policy in the
workplace, and 47% did not have a social media policy. Modern workplaces should not have
employee manuals that only cover a handful of the key issues in the workplace. With the constantly
changing and modernizing the workplace, HR policies should be able to reflect the shifts that are
occurring.
The importance of keeping current, ethical, and effective HR policies can be outlined as follows:
 HR policies ensure every employee of an organization is looked after, their needs are
respected, and proper benefits are made available to them for their work.
 HR policies help to address complaints, problems, and grievances of employees, and outline
how to solve them appropriately.
 They help protect employees from the ramifications of colleagues' poor behavior and even
from the organization itself.
 They help to train and develop employees who are consistent with the needs of the
organization.
 They help employees receive adequate and fair compensation.
 They help to maintain discipline in the workplace, and
 They provide paid vacations and holidays to eligible employees.

1.4. HUMAN RESOURCES MANAGER

An HR manager oversees an entire HR department or portion of an HR department,

depending on the company's size. This role manages the hiring of staff, implementing policies,
overseeing payroll and benefits, and advising managers or other supervisors from other
departments.
Qualifications typically include a bachelor's degree in human resources or a related field,
experience in HR, and possibly certifications.

Benefits manager
Benefits managers oversee the payroll department, ensuring all functions related to
compensation and benefits are carried out and accurate. This job ensures employees are paidbased
on an organization's pay structure, and benefits are granted per employee contracts. As a benefits
and compensation manager, also meet with other departments to discuss financial matters.
Qualifications typically include a bachelor's degree in accounting or related field, experience in
payroll or management, and possibly certifications depending on your employer.

Leading: Human Resource Management and Leadership

Get ready for the Future of Work. Leading people and organizations to adapt, compete and
succeed in a complex, global environment.

21
Skills build
Strategic Thinking, Human Resources (HR), Visionary leadership, Organizational design,
Value Chain, Organizational leadership, Organizational alignment, Change planning, Motivation,
Diversity and Inclusion, Communication, Staff Management, Leadership Development, Leadership,
Brand Management

1.4.1. ROLE OF HUMAN RESOURCES MANAGER

The Human Resource Manager will lead and direct the routine functions of the Human
Resources (HR) department including hiring and interviewing staff, administering pay, benefits, and
leave, and enforcing company policies and practices.

Supervisory Responsibilities
 Recruits, interviews, hire, and trains new staff in the department.
 Oversees the daily workflow of the department.
 Provides constructive and timely performance evaluations.
 Handles discipline and termination of employees in accordance with company policy.

Duties/Responsibilities

 Partners with the leadership team to understand and execute the organization's human
resource and talent strategy particularly as it relates to current and future talent needs,
recruiting, retention, and succession planning.
 Provides support and guidance to HR generalists, management, and other staff when
complex, specialized, and sensitive questions and issues arise; may be required to administer
and execute routine tasks in delicate circumstances such as providing reasonable
accommodations, investigating allegations of wrongdoing, and terminations.
 Manages the talent acquisition process, which may include recruitment, interviewing, and
hiring of qualified job applicants, particularly for managerial, exempt, and professional roles;
collaborates with departmental managers to understand skills and competencies required
for openings.
 Analyzes trends in compensation and benefits; researches and proposes competitive base
and incentive pay programs to ensure the organization attracts and retains top talent.
 Creates learning and development programs and initiatives that provide internal
development opportunities for employees.
 Oversees employee disciplinary meetings, terminations, and investigations.
 Maintains compliance with federal, state, and local employment laws and regulations and
recommended best practices; reviews policies and practices to maintain compliance
 Maintains knowledge of trends, best practices, regulatory changes, and nev technologies in
human resources, talent management, and employment law.
 Performs other duties as assigned.

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Required Skills/Abilities
 Excellent verbal and written communication skills.
 Excellent interpersonal, negotiation, and conflict resolution skills.
 Excellent organizational skills and attention to detail.
 Strong analytical and problem-solving skills.
 Ability to prioritize tasks and to delegate them when appropriate.
 Ability to act with integrity, professionalism, and confidentiality.
 Thorough knowledge of employment-related laws and regulations.
 Proficient with Microsoft Office Suite or related software.
 Proficiency with or the ability to quickly learn the organizations HRIS and talent management
systems.

Education and Experience

 Bachelor's degree in Human Resources, Business Administration, or related field required.
 A minimum of three years of human resource management experience preferred.
 SHRM-CP or SHRM-SCP highly desired.

Physical Requirements
 Prolonged periods of sitting at a desk and working on a computer.
 Must be able to lift 15 pounds at times.
 Must be able to access and navigate each department at the organization's facilities.

1.4.2. RESPONSIBILITIES OF AN HR MANAGER

An HR manager's job description should include the following obligations.

However, while an HR manager's daily duties will vary from company to company, the
following are the responsibilities of an HR manager:
 Create and put into action HR initiatives and strategies that are in line with the overall
business plan.
 Improve ties between management and employees by responding to requests, grievances, or
other issues.
 Control the hiring and hiring process.
 Support present and future company demands through growing, involving, inspiring, and
preserving human capital.
 Create and keep track of the organization's overall HR strategies, methods, tactics, and
procedures.
 Cultivate a supportive workplace.
 Managing and maintaining a setup that promotes optimum performance.
 Maintain the benefits and pay schedule.
 Analyze the training requirements for a programme and keep an eye on it.
 Report to management and use HR indicators to assist in decision-making
 Always maintain legal compliance while managing human resources.

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 UNIT II
HUMAN RESOURCE PLANNING

Importance of Human Resource Planning - Internal and External Resources of Human Sources
- Recruitment - Selection - Socialization. (9)

2.1. HUMAN RESOURCE PLANNING

Human resource planning (HRP) is the continuous process of systematic planning to achieve
optimum use of an organization's most valuable asset-quality employees. Human resources planning
ensure the best fit between employees and jobs while avoiding manpower shortages or surpluses.

Definition
Human resource planning is a technique company uses to balance its flow of employees and
prevent situations such as team member shortages or surpluses. This also ensures that the business
has the right people with the appropriate skills and ability to build a strong workforce.

2.1.1. USES OF HUMAN RESOURCE PLANNING (HRP)

Human resource planning allows companies to plan ahead so they can maintain a steady
supply of skilled employees. The process is used to help companies evaluate their needs and to plan
ahead to meet those needs. Human resource planning needs to be flexible enough to meet short-term
staffing challenges while adapting to changing conditions in the business environment over the
longer term. HRP starts by assessing and auditing the current capacity of human resources.
Here, identifying a company's skill set and targeting the skills a company needs enables it to
strategically reach business goals and be equipped for future challenges. To remain competitive,
businesses may need advanced skills or to upskill their employees as the market environment
evolves and changes. To retain employees and remain competitive, HRP often looks at organizational
design, employee motivation, succession planning, and increasing return on investment overall.

2.1.2. CHALLENGES OF HUMAN RESOURCE PLANNING (HRP)

The challenges to HRP include forces that are always changing. These include employees
getting sick, getting promoted, going on vacation, or leaving for another job. HRP ensure getting sick
getting promoted workers and jobs, avoiding shortages and surpluses in the employee pool.
To help prevent future roadblocks and satisfy their objectives, HR managers have to make
plans to do the following:

 Find and attract skilled employees.

 Select, train, and reward the best candidates.
 Cope with absences and deal with conflicts.

24
  Promote employees or let some of them go.

Investing in HRP is one of the most important decisions a company can make. After all, a company
is only as good as its employees, and a high level of employee engagement can be essential for a
company's success. If a company has the best employees and the best practices in place, it can mean
the difference between sluggishness and productivity, helping to lead a company to profitability.

2.1.3. STEPS TO HUMAN RESOURCE PLANNING (HRP)

There are four general, broad steps involved in the human resource planning process. Each
step needs to be taken in sequence in order to arrive at the end goal, which is to develop a strategy
that enables the company to successfully find and retain enough qualified employees to meet the
company's needs.

a. Analyzing labor supply

The first step of human resource planning is to identify the company's current human
resources supply. In this step, the HR department studies the strength of the organization based on
the number of employees, their skills, qualifications, positions, benefits, and performance levels.

b. Forecasting labor demand

The second step requires the company to outline the future of its workforce. Here, the HR
department can consider certain issues like promotions, retirements, layoffs, and transfers anything
that factor into the future needs of a company. The HR department can also look at external
conditions impacting labor demand, such as new technology that might increase or decrease the
need for workers.

c. Balancing labor demand with supply

The third step in the HRP process is forecasting the employment demand. HR creates a gap
analysis that lays out specific needs to narrow the supply of the company's labor versus future
demand.
This analysis will often generate a series of questions, such as:

 Should employees learn new skills?

 Does the company need more managers?
 Do all employees play to their strengths in their current roles?

d. Developing and implementing a plan

The answers to questions from the gap analysis help HR determine how to proceed, which is
the final phase of the HRP process. HR must now take practical steps to integrate its plan with the
rest of the company. The department needs a budget, the ability to implement the plan, and a
collaborative effort with all departments to execute that plan.

25
2.1.4. PROCESS OF HUMAN RESOURCE PLANNING

Forecasting the organization's demand for and supply of human resources is done through the
planning process.

Choosing the Goals

Determining the goals for which the process will be carried out is the first step in every cycle.
For example, to choose the correct number of people for the right job, it is essential to identify
the goal for which workforce planning is to be done.

Examine the present personnel supply

Use the data saved about the staff's expertise, competency, abilities, etc., to carry out a specific
job. Additionally, it is possible to predict future openings to plan for the workforce from internal
(inside the current employees) and external (hiring applicants from outside) sources.

Estimating Demand and Supply

After maintaining an inventory of skilled employees, the next stage is to match anticipated
future demand for employees with the organization's current supply of resources.

Action plan
Once the staffing shortfalls have been assessed, an employment or action plan should be
created. If there is a shortfall, the company may pursue recruitment, training, or interdepartmental
transfer plans; if there is a surplus, the company may pursue voluntary retirement plans,
redeployment, transfer, or layoffs.

Training and Development

Training is provided for both current personnel and new hires, as both groups must
periodically upgrade their skill sets.

2.1.5. FACTORS OF HUMAN RESOURCE PLANNING

Various internal and external influences influence the planning of human resources. Some of
them are:

Organizational type
The Organizational type impacts Human Resource strategy. Two factors the nature of the
company and the ownership structure-can be used to determine the kind of organization.

Organizational approach to planning

Different businesses use various methods for overall planning. These strategies can be
divided into proactive or reactive and informal or formal. In an aggressive approach, a company
projects the future and bases its strategic choices on that projection.

26
Organizational development cycle
Organizations go through several stages of development: birth, childhood, adolescence,
middle age, and old age. At every step of the growth cycle, organizational goals and strategic
priorities impact human resource planning.

Time horizon
Planning for human resources has a time horizon. More ambiguity exists in Human Resource
formulation as the time horizon gets longer. This is because it is incredibly challenging and
occasionally even impossible to foresee the future environment accurately when it is unpredictable.

Information type and quality

Since information is used to develop Human Resource plans, the effectiveness of human
resource planning work depends on the quality and type of information.
Example, suppose a garments firm ABC Ltd needs help with the supply of staff. First, it will
analyze the organization's goals and departmental needs. After this, it will examine the collection
available to the organization and plan to fill the vacant positions. Continuous training is the last but
not minor step of this process. Timely feedback from management and employees ensures the
effectiveness of the staffing position.

2.1.6. ADVANTAGES AND DISADVANTAGES OF HUMAN RESOURCE PLANNING

The advantages and disadvantages of the planning process can be understood in the following
ways.
The advantages of such planning are:

Building Abilities
Workers will work more effectively thanks to such planning. In addition, businesses will grow
professionally with the present employees instead of depending on independent contractors if they
provide the education and training required to develop skills and improve capacity.

Enhancing Retention
Employee retention is higher if they demonstrate appreciation by spending time and money
to provide them with the resources they need to advance.
In addition, it will make their employees more excited and let them know they appreciate
their contribution and length of service,

Predictability
The market environment, the state of the economy, and supply chain difficulties present
enough daily uncertainty for the company. By adding an extra layer of certainty to scheduling,
staffing, and managing ongoing workload, putting thought and planning into providing employees
with what they require to perform a good job and remain firm over time helps allevinate some of
this determinism.

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Disadvantages
Disadvantages of such planning are:

Expensive
Training and putting money into employees is expensive. Therefore, planning may reduce the
bottom line in the near term before it enhances profits, whether spending on specialized training or
taking employee time away from jobs that are more likely to increase incoming income immediately.

Unpredictability
There is no assurance that the employee's train will remain with the firm sufficiently to
realize the advantages of investment, even if planning for human resources can offer the business a
better degree of stability through improving personnel capabilities.

Illusionary
Planning for human resources can improve the workforce's ability to do their roles. Still, it
can prepare them to carry out outdated tasks as businesses and industries develop. As a result, they
can experience a false sense of safety and not respond to situations quickly enough.

2.1.7. DIFFERENCE BETWEEN HUMAN RESOURCE MANAGEMENT AND HUMAN RESOURCE

PLANNING

The strategic and cohesive approach to managing people in an organization or company in a

way that gives them a competitive advantage is known as human resource management. While later
is the procedure used by management to decide how to move an organization from its existing
personnel position to its target staffing position.

Some of the fundamental difference between them is:

Basis Human Resource Management Human Resource Planning

Method Conventional Contemporary

Nature of function Routine Strategic

Primarily on routine tasks like Treat the organization’s workforce as
Focus Hiring paying, training, and valuable resource that should be
maintaining employee harmony utilized, respected, and conserved.

2.1.8. MANPOWER PLANNING VS HUMAN RESOURCE PLANNING

Manpower planning is the strategy for acquiring, utilizing, improving, and preserving an
organization's human resources. While human resource planning is a continuous process that a

28
business uses to systematically plan for the future of its human resources to fill open positions with
qualified candidates.

Human resource planning and workforce planning are very different in the following manner.
1. In human resource planning, managers are concerned with motivating employees, a process
in which cost, numbers, control, and systems mix and play a role. Regarding workforce
planning, executives are concerned with the quantitative aspects of forecasting availability,
demand matching, and management, which include people.
2. Manpower planning was once thought of as a strategy for securing the company's human
resources, which involved hiring the proper quantity of people with the necessary skills at
the correct time. The primary objective was to match up the supply and demand of labor.
3. Demand is the term used to describe the organization's present and future needs for human
resources. At the same time, supply is the extent to which the current workforce may satisfy
those needs internally and externally.

2.1.9. OBJECTIVES OF HUMAN RESOURCE PLANNING

 Adapting to rapid technology changes

 Powering product innovation
 Adjusting to a more globalized economy
 Preparing for generational and cultural shifts
 Anticipating job and skill changes
 Facilitating growth
 Improving business operations
 Mitigating risk
 Preventing talent shortage or surplus
 Complying with local, state, and federal regulations
 Implementing a successful onboarding process.

2.1.10. FEATURES OF HUMAN RESOURCE PLANNING

1. Well Defined Objectives

Enterprise's objectives and goals in its strategic planning and operating planning may form
the objectives of human resource planning. Human resource needs are planned on the basis of
company's goals. Besides, human resource planning has its own objectives like developing human
resources, updating technical expertise, career planning of individual executives and people,
ensuring better commitment of people and so on.

2. Determining Human Resource Reeds

Human resource plan must incorporate the human resource needs of the enterprise. The
thinking will have to be done in advance so that the persons are available at a time when they are

29
required. For this purpose, an enterprise will have to undertake recruiting, selecting and training
process also.

3. Keeping Manpower Inventory

It includes the inventory of present manpower in the organisation. The executive should
know the persons who will be available to him for undertaking higher responsibilities in the near
future.

4. Adjusting Demand and Supply

Manpower needs have to be planned well in advance as suitable persons are available in
future. If sufficient persons will not be available in future then efforts should be. made to start
recruitment process well in advance. The demand and supply of personnel should be planned in
advance.

5. Creating Proper Work Environment

Besides estimating and employing personnel, human resource planning also ensures that
working conditions are created. Employees should like to work in the organisation and they should
get proper job satisfaction.

2.1.11. CRUCIAL OF HUMAN RESOURCES PLANNING

a. It fulfills the needs of a dynamic environment

With growing globalization and an observable cultural shift in the environment, a company
encounters many dynamic needs. Human resource planning helps evaluate these needs and make a
plan of action accordingly to fulfill them, ahead of time.

b. It helps to adapt to technology changes

With ever-evolving technology, it is imperative for a company to evolve alongside it. An HR
plan manages and distributes its employees across various technology groups, and ensures growth

c. It ensures the growth of small firms:

For a small firm to grow in the 21st Century's cut-throat environment, it is instrumental for
them to plan and balance team member needs and company functioning (such as recruitment,
compensation, etc).

2.1.12. CHALLENGES OF HUMAN RESOURCE PLANNING

i. Handling absences and grievances

The team member network is dynamic in nature. Employees taking maternity leave, going on
vacation, getting promoted, quitting the company, etc. are just some of the examples in which the
workforce is subject to change. Coping with these changes and making adequate compensation isn't
always easy

30
ii. Training employees
With the adaptation of new and upcoming technology, training employees to use has become
a humongous task. It is Human resource planning that helps identify the employees who require
training and provides the same

2.2. IMPORTANCE OF HUMAN RESOURCE PLANNING

Human resource planning is the subsystem in total organizational planning. Organizational

planning includes managerial activities that set the company's objective for the future and
determines the appropriate means for achieving those objectives.

Following are the importance of human resource planning:

1. Future Personnel Needs

2. Part of Strategic Planning
3. Creating Highly Talented Personnel
4. International Strategies
5. Foundation for Personnel Functions
6. Increasing Investments in Human Resources
7. Resistance to Change
8. Uniting the Viewpoint of Line and Staff Managers
9. Succession Planning
10. Other Benefits
a. Future Personnel Needs
Human resource planning is significant because it helps to determine the future personnel
needs of the organization. If an organization is facing the problem of either surplus or deficiency in
staff strength, then it is the result of the absence of effective Human Resource Planning. All public
sector enterprises find themselves overstaffed now as they never had any planning for personnel
requirements and went on a recruitment spree till the late 1980s. The problem of excess staff has
become such a prominent problem that many private sector units are resorting to VRS's 'voluntary
retirement scheme'. The excess of labor problem would have been there if the organization had a
good HRP system. An effective HR Planning system will also enable the organization to have good
succession planning.

b. Part of Strategic Planning

Human Resource Planning has become an integral part of strategic planning. HR Planning
provides inputs in the strategy formulation process in terms of deciding whether the organization
has got the right kind of human resources to carry out the given strategy. Human Resource Planning
is also necessary during the implementation stage in the form of deciding to make resource
allocation decisions related to organization structure, process, and human resources. In some
organizations, HRP plays a significant role as strategic planning and HR issues are perceived as
inherent in business management.

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c. Creating Highly Talented Personnel
Even though India has a great pool of educated unemployed, it is the discretion of the HR
manager that will enable the company to recruit the right person with the right skills for the
organization. Even the existing staff hope the job so frequently that organization faces a frequent
shortage of manpower. Manpower planning in the form of skill development is required to help the
organization in dealing with this problem of skilled manpower shortage.

d. International Strategies
An international expansion strategy of an organization is facilitated to a great extent by HRP.
The HR department's ability to fill key jobs with foreign nationals and reassignment of employees
from within or across national borders is a major challenge that is being faced by international
business. With the growing trend toward global operation, the need for HRP will as well be the need
to integrate HRP more closely with the organization's strategic plans. Without effective HRP and
subsequent attention to employee recruitment, selection, placement, and development, career
planning, the growing competition for foreign executives may lead to expensive and strategically
descriptive turnover among key decision makers.

e. Foundation for Personnel Functions

HRP provides essential information for designing and implementing personnel functions
such as recruitment, selection, training and development, and personnel movements like transfers,
promotions, and layoffs.

f. Increasing Investments in Human Resources

Organizations are making increasing investments in human resource development
compelling the increased need for HRP. Organizations are realizing that human assets can increase
in value more than physical assets. An employee who gradually develop his/her skills and abilities
becomes a valuable asset to the organization.
Organizations can make investments in their personnel either through direct training o job
assignment and the rupee value of such a trained, flexible, motivated productivity workforce is
difficult to determine. Top officials have started acknowledging that the quality of the workforce is
responsible for both the short-term and long-term performance of the organization.

g. Resistance to Change
Employees are always reluctant whenever they hear about change and even about jo rotation.
Organizations cannot shift one employee from one department to another witho any specific
planning. Even for carrying out job rotation (shifting one employee from or department to another),
there is a need to plan well ahead and match the skills required ar existing skills of the employees.

h. Uniting the Viewpoint of Line and Staff Managers

HRP helps to unite the viewpoints of line and staff managers. Though HRP is initiate and
executed by the corporate staff, it requires the input and cooperation of all manage within an
organization. Each department manager knows about the issues faced by b department more than

32
anyone else. So communication between HR staff and line manage is essential for the success of HR
Planning and development.

I. Succession Planning
Human Resource Planning prepares people for future challenges. The 'stars' are pick up,
trained, assessed, and assisted continuously so that when the time comes such train employees can
quickly take the responsibilities and position of their boss or seniors as a when the situation arrives.

J. Other Benefits
These are other benefits of human resource planning:
1. HRP helps in judging the effectiveness of manpower policies and programs of management.
2. It develops awareness of the effective utilization of human resources for the overall
development of the organization.
3. It facilitates the selection and training of employees with adequate knowledge, experience, and
aptitudes so as to carry on and achieve the organizational objectives.
4. HRP encourages the company to review and modify its human resource policies and practices
and to examine the way of utilizing the human resources for better utilization.
5. It reviews the skills and capabilities of existing.
6. It anticipates and adapts to industry developments.
7. It allows the company to stay competitive.
8. It ensures the company's long-term growth.

2.3. INTERNAL AND EXTERNAL RESOURCES OF HUMAN SOURCES

There are two main sources of recruitment, Internal sources and External Sources, Internal
sources of recruitment includes Transfers, Internal Advertisements, Promotions etc and External
Sources includes Management Consultants, Public advertisements, Recommendations, Deputation
personnel etc.

a. Internal influences on HRM objectives

Corporate objectives
E.g. an objective of cost minimization results in the need for redundancies, delayering or other
restructuring

Operational strategies
E.g. introduction of new IT or other systems and processes may require new staff training,
fewer staff

Marketing strategies
E.g. new product development and entry into a new market may require changes to
organizational structure and recruitment of a new sales team

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Financial strategies
E.g. a decision to reduce costs by outsourcing training would result in changes to training
programs

b. External influences on HRM objectives

Market changes
E.g. a loss of market share to a competitor may require a change in divisional management or
job losses to improve competitiveness

Economic changes
[Link] in the level of unemployment and the labour market will affect the supply of
available people and their pay rates

Technological changes
E.g. the rapid growth of social networking may require changes to the way the business
communicates with employees and customers

Social changes
[Link] growing number of single-person households is increasing demand from employees
for flexible working options

Political & legal changes

E.g. legislation on areas such as maximum working time and other employment rights
impacts directly on workforce planning and remuneration

2.4. RECRUITMENT

Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring and
onboarding employees. In other words, it involves everything from the identification of a staffing
need to filling it. Depending on the size of an organization, recruitment is the responsibility of a range
of workers.

What is recruiting in HRM?

Human Resource Management, otherwise known as HRM or HR for short, is the function of
people management within an organization. HR is responsible for facilitating the overall goals of the
organization through effective administration of human capital focusing on employees as the
company's most important asset. Recruitment is the first step in building an organization's human
capital. At a high level, the goals are to locate and hire the best candidates, on time, and on budget.

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2.4.1. TYPES OF RECRUITING
There are several types of recruiting.

a. Internal Recruiting
Internal recruiting involves filling vacancies with existing employees from within an
organization.

b. Retained Recruiting
When organization hire a recruiting firm, there are several ways to do so; retained recruiting
is a common one. When an organization retains a recruiting firm to fill a vacancy. they pay an upfront
fee to fill the position.
The firm is responsible for finding candidates until the position is filled. The organization also
agrees to work exclusively with the firm. Companies cannot, in other words, hire multiple recruiting
firms to fill the same position.

c. Contingency Recruiting
Like retained recruiting, contingency recruiting requires an outside firm. Unlike retained
recruiting, there is no upfront fee with contingency. Instead, the recruitment company receives
payment only when the clients they represent are hired by an organization.

d. Staffing Recruiting
Staffing recruiters work for staffing agencies. Staffing recruiting matches qualified applicants
with qualified job openings. Moreover, staffing agencies typically focus on short- term or temporary
employment positions.

e. Outplacement Recruiting
Outplacement is typically an employer-sponsored benefit which helps former employees
transition into new jobs. Outplacement recruiting is designed to provide displaced employees with
the resources to find new positions or careers.

f. Reverse Recruiting
Refers to the process whereby an employee is encouraged to seek employment with a
different organization that offers a better fit for their skill set.

2.4.2. EFFECTIVE RECRUITING

Recruitment is a nuanced process that requires extensive research, thorough procedures, and
finesse in order to produce high-quality hires with regularity. With that in mind, here are out top-
three tips for effective recruitment:

Look internally before externally

There's a good chance the best candidate for position is already working for organization.
Internal candidates are already familiar with and contributing to corporate culture and goals. Given

35
their past success within organization, it is reasonable to expect they will continue to excel in a new
position.

Reach out to "passive" candidates

There is a good chance ideal candidate is not actively looking for a new job and will not
respond to job board ad. Why? Because they're likely already employed elsewhere. After all, why
wouldn't competitors also want to employ ideal candidate?
Therefore, effective recruiting requires to look outside of applicant pool for top talent.
Encouraging staff to attend industry conferences and participate in professional
organizations; developing relationships with local university business schools (or other relevant
departments); searching social media sites (i.e. LinkedIn) for strong resumes from candidates who
might not be actively looking for a new job; and encouraging employees to refer people they know
or are connected to are all important mechanisms through which to expand recruitment network.

Hire the sure thing

According to two authors and experts, hire the person who is already excelling doing the exact
job in industry. Past success, in other words, is the best indicator of future success.

2.4.3. RECRUITMENT PROCESS

Recruitment or Hiring is the process of searching and attracting the right candidates for
hiring them for vacant jobs in an organization.
There are two sources of recruitment, internal sources and external sources. Recruitment
refers to the process of searching for potential employees and influencing them to work for their
organization.
The purpose of the recruitment process is to find talented and qualified individuals for the
growth and development of their organization. It is part of the human resource management (HRM)
department.

Meaning of Recruitment Process

Edwin B. Flippo defined the recruitment process 'Recruitment is the process of searching the
candidates for employment and stimulating them to apply for jobs in the organization.
In the words of Dale S. Beach 'Recruitment is the development and maintenance of adequate
manpower resources. It involves the creation of a pool of available labor upon whom the
organization can draw when it needs additional employees. The recruitment process leads to a
collection of candidates for any vacancies an organization might have.

[Link]. What does recruitment involve? [STEPS]

While the recruitment process is unique to each organization, there are 15 essential steps of
the hiring process.
 Identify the hiring need
 Devise a recruitment plan

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  Write a job description
 Advertise the position
 Recruit the position
 Review applications
 Phone Interview/Initial Screening
 Interviews
 Applicant Assessment
 Background Check
 Decision
 Reference Check
 Job offer
 Hiring
 Onboarding

2.4.4. SOURCES OF RECRUITMENT

There are many sources of recruiting potential employees but all of them can be grouped into
two categories, namely.

[Link]. Internal Sources of Recruitment

Internal sources of recruitment consist of employees who are already on the payroll of a firm.
It also includes former employees who have returned to work for the organization. Recruitment from

37
internal sources is done to fill up vacancies through promotion, re-hiring and transferring employees
within the company.

[Link]. Advantages of Internal Sources of Recruitment

 Selecting and transferring existing employees is a simpler process.

 The managers are aware of the talents and abilities of already existing employees.
 Internal recruitment serves as a tool to boost the morale of employees as internal hiring
creates job and promotion opportunities for existing employees.
 Internal hiring promotes a feeling of loyalty amongst the employees.
 Existing employees are already aware of the company's working methods and don't take a
long time to adjust to new positions.

However, there is a potential drawback to the internal recruitment process. It can lead to
stagnation in the company's workforce. No introduction of new employees or fresh ideas. Often
employees who are not suitable for a higher position are given promotions just because they have
been at the organization for a long time, not because of their skills and qualifications.

[Link]. Characteristics of Internal Sources of Recruitment

 Quick process.
 Cheaper than the external recruitment process.
 Works as a tool of motivation for the staff.
 The company's choice is limited to existing employees of the company.
 Hiring fresh employees is a lost prospect.

2.4.5. EXTERNAL SOURCES OF RECRUITMENT

External sources of recruitment refer to the sources that lie outside or exist external to the
organization.

[Link]. SOURCES OF EXTERNAL RECRUITMENT

1. People joining an organization, specifically through recommendations.

2. Employment agencies (e.g. [Link]) or employment exchanges.
3. Advertising
4. Institutes like colleges and vocational schools (e.g. campus selection)
5. Contractors
6. Hiring unskilled labor
7. List of applications
8. Temporary workers.

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 Encouraging existing employees to recommend suitable candidates can thus lead to the hiring
of the right individuals for the right jobs. A higher level of teamwork and synchronization among
employees would, therefore, be achieved. However, it might also lead to employees picking their
close friends and family members who are unfit for the jobs. Thus, talented individuals might lose
out on good opportunities. Whereas, external recruitment provides a wider collection of potential
employees with the necessary skillset. It has proven to be a successful recruitment process when
hiring for managerial and technical positions.

2.4.6. CHARACTERISTICS OF EXTERNAL SOURCES

 Long and time-consuming process.

 It is an expensive process.
 When external people are given opportunities over them, then existing workers lose
morale
 Hiring new employees can lead to the introduction of new blood and thus the introduction
of a new set of skills and ideas.

2.4.7. STEPS IN RECRUITMENT

The steps are;

1. Identify the hiring needs
2. Prepare job descriptions
3. Devise recruitment strategy
4. Screen and shortlist candidates
5. Conduct interviews
6. Evaluate and make the offer
7. Onboard the new employee

Step 1: Identify the hiring needs

What are existing hiring needs? May be an employee just left or a new job position just
opened. Once identify the vacancies that exist, then define the job specifications such as skills,
knowledge, experience, etc.
Determine hiring needs by checking;
 Any gaps in performance, skills or proficiencies that need to fill
 A sudden increase in workload that team cannot seem to handle
 Any employees who will be leaving the company soon
At Creately, utilize an org chart that lists the current employees and their skills. This helps us
see at a glance what skills exist within our company and what skills need going forward.

Step 2: Prepare job descriptions

Once know the skills, knowledge and experience gaps need to fill, define the job role,
responsibilities and duties.

39
 A complete job description helps know what to look for in potential candidates. It also serves
as a checklist for candidates to tick before they decide they are suitable for the role and apply- which
means, more relevant candidates.
The elements that should be included in a job description are;
 Title
 Responsibilities
 Necessary qualifications and skills
 Compensation, benefits, and perks
 Location
Here's a neat little trick we follow at Creately prior to writing the job description -the extra
mile to create a candidate persona.
Similar to the buyer persona, the job candidate persona is a semi-fictional portrayal of an
ideal candidate for the position hiring for.
Creating a candidate persona helps identify what candidate is looking for, how and where to
find them. And it gives the opportunity to
 Write more relevant job descriptions, job application forms, emails, training material, etc.)
 Identify the best-recruiting channels
 Create high-quality and personalized content to attract relevant candidates
 Understand the candidate requirements of stakeholders
 Update and reuse in the future

Step 3: Devise your recruitment strategy

This is where decide how to attract and retain the ideal candidates. Here, consider whether
find a possible candidate from within the company itself or whether need to hire from outside.
Strategy need to consider;
 The geographical area targeting
 The method of recruitment (employee referrals, social media, video interviews, etc.)
 Creating relevant job ads
 Channels for posting job ads (social media networks, job boards, company websites,
etc.)
And it would come in handy to have outlined the entire recruitment process in the shape of a
flowchart.
This helped us keep the process well-organized, keep the entire hiring team on the same page,
make sure that we stick to the plan and skip no important step.
Recruitment Process Flowchart (Click on the template to edit it online)

Step 4: Screen and shortlist candidates

Recruitment strategy was a huge success and have accumulated a sky-high pile of application.
What's next??
Here are the steps we follow when we face this exact challenge
 First, we sort through the applications to find the ones with minimum qualifications

40
  Then separate resumes with the preferred credentials. Here consider the applicant's
experiences, certifications, domain and technical competencies, and skills.
 Those candidates who have the minimum qualifications and the required credentials
will be shortlisted.
 If there are any concerns regarding their application, make a note so we can get it
clarified during the interview.

Step 5: Interview Process

After the application form or the job advert, this is where potential candidate will come in
direct contact. So, it's time to make a good impression on them as a potential employer.
And this is where need to be concerned about candidate experience the most.
To make it easy for both our team and the candidate, have visualized the interview process.
It's clear and helps remove any confusion.

Step 6: Make the offer

This is the time to check with the candidate's references. And if everything checks out, make
the offer.
However, there's a chance that the first promising candidate have selected might not accept
it. In which case, need to be prepared to extend the offer to the second best or third best candidate.

Step 7: Employee Onboarding

Then comes employee onboarding. This is where make the new employee settle in. This does
not only include showing the new person around the office and introducing them to others.

2.5. SELECTION

Selection is a process of identifying and hiring the applicants for filling the vacancies in an
organization. Employee selection is a process of matching organization's requirements with the
skills and the qualifications of individuals.
The selection of a right applicant for a vacant position will be an asset to the organization,
which will be helping the organization in reaching its objectives.

Definition of Selection in HRM

Selection is the process by which candidates for employment are divided into two classes
those who will be offered employment and those who will be not. By Dale Yoder
David Decenzo defined it as, "Selection is a managerial decision-making process to predict
which job applicants will be successful if hired."
According to Thomas H. 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."

41
 Employee selection is a process of putting a right applicant on a right job. Selection of an
employee is a process of choosing the applicants, who have the qualifications to fill the vacant job in
an organization.
Selection is a process of identifying and hiring the applicants for filling the vacancies in an
organization.
Employee selection is a process of matching organization's requirements with the skills and
the qualifications of individuals.
A good selection process will ensure that the organization gets the right set of employees with
the right attitude.

2.5.1. DIFFERENCE BETWEEN RECRUITMENT AND SELECTION

These are some points of difference between recruitment and selection:

[Link]. Recruitment Selection

The process of recruitment begins The process of selection ends with the
1 with the creation of an applicant poolselection of the number of candidates for
from different sources. the job.
The main aim of recruitment is It attempts to eliminate applicants in
2 gathering as many applicants as various stages and ends up with a smaller
possible for jobs in an organisation. number of required candidates.
3 It is a positive activity. It is a negative activity.
It is a difficult activity as the selection of a
It is comparatively easy as the
suitable candidate requires specialized
4 creation of an applicant pool does
knowledge and skills for choosing the
not demand any special skills.
best possible candidate.
It is a searching function wherein
It is a screening function as it checks the
prospective candidates are searched
5 suitability of the candidates for the jobs
for the jobs which are offered in the
offered.
organisation.

Both recruitment and selection work hand in hand and both play a vital role in the overall
growth of an organization.

2.5.2. IMPORTANCE OF SELECTION

Selection is an important process because hiring good resources can help increase the overall
performance of the organization. In contrast, if there is bad hire with a bad selection process, then
the work will be affected and the cost incurred for replacing that bad resource will be high.
The purpose of selection is to choose the most suitable candidate, who can meet the
requirements of the jobs in an organization, who will be a successful applicant. For meeting the goals
of the organization, it is important to evaluate various attributes of each candidate such as their
qualifications, skills, experiences, overall attitude, etc.

42
 In this process, the most suitable candidate is picked after the elimination of the candidates,
who are not suitable for the vacant job.
The organization has to follow a proper selection process or procedure, as a huge amount of
money is spent for hiring a right candidate for a position. If a selection is wrong, then the cost
incurred in induction and training the wrong candidate will be a huge loss to the employer in terms
of money, effort, and also time.
Hence, selection is very important and the process should be perfect for the betterment of the
organization.

2.5.3. ADVANTAGES OF SELECTION

A good selection process offers the following advantages;

 It is cost-effective and reduces a lot of time and effort.
 It helps avoid any biasing while recruiting the right candidate.
 It helps eliminate the candidates who are lacking in knowledge, ability, and
proficiency.
 It provides a guideline to evaluate the candidates further through strict verification
and reference-checking.
 It helps in comparing the different candidates in terms of their capabilities, knowledge,
skills, experience, work attitude, etc.
A good selection process helps in selecting the best candidate for the requirement of a vacant
position in an organization.

2.5.4. SELECTION PROCESS AND STEPS

The selection process of the organisation depends on the various jobs and their nature and
requirements. A good selection process should be able to distinguish applicants who are most
suitable from those who are not suitable.
The following are the steps in a selection process:
1. Employment Application Form, Blanks
2. Selection Test
3. Selection Interview
4. Reference Checks
5. Physical Examination
6. Job Offer

1. Employment Application Form, Blanks

An organisation collects application forms from applicants to collect extremely useful
information from them in a very short span of time. It is useful in determining the suitability of the
applicants and helps in predicting their job performance if they are chosen. The application form
should be prepared with careful consideration and should be reviewed regularly.
Generally, an application form collects basic information such as name, father's name, date of
birth, age, gender, marital status etc. It also collects information about the educational qualifications,

43
courses completed, major subjects, year of passing, percentage, rank and name of an educational
institution.
It may also collect information about work experience and previous positions held by the
candidate, the nature and benefits of the job and the reason for leaving it. Through the application
form, the organisation may also collect details about participation in extracurricular activities.
Further, names and addresses of a few references that have knowledge about the candidate
can also be collected.

2. Selection Test
As there are differences in the abilities, aptitudes, interests and traits of candidates, it is
important that these differences are measured for selecting the most suitable candidate. For this,
various types of selection tests are used. According to Cronbach, "A test is a systematic procedure
for comparing the behavior of two or more persons." One of the most common methods to test the
candidate is by using the psychological test. Psychological tests help the Human Resource Managers
to select and place employees and determine the most suitable career plan for them. They also help
them to assess their job performance as well as act as an aid in counseling employees in conflicting
situations.
The following are the major types of psychological tests:
1. Ability Test
2. Intelligence Test
3. Aptitude Test
4. Achievement Test
5. Personality Tests
6. Interest Test
7. Honesty and Integrity Test

3. Selection Interview
A selection interview is conducted to collect information that has not been collected during
the other stages of the selection process. Depending upon the nature of the job, one or more
interviews may be conducted.
In simple terms, an interview is an activity where thorough face to face conversation and
information are collected to determine whether the candidate is suitable for the job or not.

The following are the main objectives of the interview:

1. It is a way in which gaps in information are filled that are left during the previous
stages of the selection process.
2. It establishes direct and personal contact with the applicant so that information
obtained could be verified.
3. It creates two-way communication as there is a mutual exchange of information
between the candidate and the organisation.
4. It provides a platform for the organisation to create goodwill in the labour market by
offering good hospitality, courtesy and personal care to applicants.

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Types of Interviews
The following are the major types of interviews:
1. Structured Interview
2. Unstructured Interview or Open-ended interview
3. In-depth Interview
4. Stress Interview
5. Panel Interview

4. Reference Checks
When the candidates fill out the application forms, the candidates are requested to fill in the
names of at least two references who can be contacted by the organisation to cross-check the
information provided by the candidate. Normally, these names are of the people who know the
candidate.
They may be friends, relatives, previous employees, faculty of the institute where the
candidate has studied or any other prominent persons who are familiar with the candidate.

5. Physical Examination
Physical examination is undertaken with the aim of ensuring that the selected candidates
meet the physical requirements of the job. It also safeguards the organisation from hiring people
with pre-existing ailments. But this step depends on the general organisation practices as some
organisations in India insist on comprehensive medical tests while others do not insist on such tests.

6. Job Offer
It is the last step in the process of selection. Here the candidate is informed about their
provisional selection. A job offer that specifies the terms and conditions of employment is issued to
the candidates who have successfully cleared the interview and the physical examination.
Once a positive response is received from the candidate, the process of integrating the
candidate into the organisation is initiated and his conversion from a possible candidate to an
employee begins.
The acceptance or rejection of a job offer is influenced by the following factors:
1. Alternative job opportunities are available.
2. Nature and extent of supervision, work schedule and nature of the coworkers. 3.
Pay and benefits, opportunities for advancement in career, the reputation of the
company as a workplace.
3. Recruitment activities, such as how the candidate is recruited and how information
is conveyed to the candidate.

2.5.5. NEED FOR SELECTION

Selection, being the most crucial phase of human resource management, should systematic
and scientific, based on certain pre-determined criteria. Traditional methods selection, though may
provide base for judging the suitability of a candidate, do not provide satisfactory fit between the
candidates and jobs.

45
 Therefore, there is a need for developing scientific methods for selection. A scientific method
uses well-established, reliable, and valid tools for selection.
These tools are based on a fit among three categories of variables:
1. Candidate's own personality predispositions and characteristics such as need pattern
tolerance for ambiguity, locus of control, work ethic, values, abilities, and skills;
2. Characteristics of the job such as the amount of challenge it offers, the skills used,
performing the job, and the like
3. Characteristics of facilitating structures at the workplace such as work layout, reward
systems, extent of training and development facilities offered, and organization
culture and values.
The need for a fit between the candidate and other variables arises to ensure the following
features in the selection:

1. To Reduce Margin of Errors

No matter whatever method of selection is used, some margin of errors will always prevail.
Scientific selection tries to reduce this margin though it cannot remove it complete at selecting those
who will, by and large, perform well in the organization and reject those who will not. However, in
doing so, some errors invariably occur.
Based on the combination of two criteria candidates may be divided into four categories:
performance criteria and selection criteria

A- refers to those who were not selected on the selection criteria cut-off but who have been
successful had they been selected. This error is known as false negative.
B- refers to those who were rejected; had they been selected; their performance would no
have been positive. In this case, there is no error and the situation is known as true negative.
C- refers to those who have been selected and whose performance would be positive. The
situation is true positive; there is no error.
D- refers to those who have been selected on the selection cut-off criteria but their
performance is not positive. This error is known as false positive.

Scientific selection aims at increasing the size of rectangles B and C and, consequently,
decreasing the size of rectangles A and D by using proper tools and techniques of selection.

2. To Minimize Cost of Personnel

A wrong selection results in enormous cost to the organization as well as to the society. For
the organization, cost of a wrong selection is in two forms.
First, it will have to pay higher remuneration to the person wrongly selected in comparison
to his contributions to the organization thereby affecting organizational effectiveness adversely.
Second, selection of a wrong person has a telling effect on the morale of existing personnel in
the organization.
It may send a wrong signal and the personnel may feel that nepotism is the way of life in the
organization. From the social point of view, a wrong selection means the wastage of precious human
resources of the society. By scientific selection, such costs can be minimized.

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3. To Meet Environmental Requirements
No organization operates in isolation but it operates in the context of a given set of
environmental factors. Therefore, it has to abide by socio-cultural norms and one of the norms is
that every organization will treat all people fairly. This applies in the context of employment of
people.
In fact, our Constitution has very clearly laid down the guiding principles for opportunity in
public employment for all citizens that:
"There shall be equality of opportunity for all citizens in matters relating to employment or
opportunity to any office under the State (Article 16-1). No citizen shall, on grounds only of religion,
race, caste, sex, descent, place of birth, residence or any of them, be ineligible for or discriminated
against in respect of employment or office under the State (Article 16-2)."
Though these are applicable to the employment in Government agencies, these are equally
true for other organizations too as a matter of their social responsibility. An organization may
enhance its prestige by fair and equitable solution which demands a fit between the candidates, jobs,
and organization. This can be achieved to a great extent by scientific selection.

2.5.6. IMPORTANT QUALITIES OF SELECTION INSTRUMENT (VALIDITY AND RELIABILITY)

Once the criteria or objectives of selection have been decided, one should look for an
instrument that can be used to discriminate and distinguish between candidates possessing those
characteristics and those who do not. In other words, an instrument, e.g., a test, an interview, or a
certificate of high educational qualification could be used to make selection if its administration yield
different results for different candidates. This instrument or th device is called selection device.

A chosen selection instrument must have two very important qualities:

1. It should be valid and
2. It should be reliable.

1. Validity
A valid selection device would be one that when administered on a group of candidate
generates results that are related well with the specific criteria or objectives of selection.
Example - If the criterion of selection of a hotel manager is his/her ability to work win room
boys, then we can use a behavioral test to select a hotel manager only if behavior test scores of a
group of hotel managers are correlated well with their measured ability work with the room boys.
If a hotel's objective is to select a manager with aptitude to work with room boys, the
obviously it cannot use a meter stick to make the choice as there is no proven relation between the
height of a manager and his/her ability to work with room boys!
In the context of strategic selection, the issue of validity assumes special significance. This is
because many of the strategy-related skill requirements for a key manager are base on inadequate
analysis and incomplete information. Many a time these requirements an presented based on what
worked in another organization and/or in another time in the same organization without
considering their current relevance.

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 As a result many a time, some of the strategy-related selection objectives that are used for
making selection may turn out to be faulty at a later date. It is because of such doubts a potential faux
pass that some authors and practicing managers believe that there is no need for a strategic selection
at all or at least in the entry career stages of managers.
Human quality and characteristics are flexible and adaptable enough to meet any future
requirements provided one is committed to the organization and the organizational environment is
supportive enough to take the trouble.

2. Reliability
Through the process of selection, the selection committee members try to assess those
qualities and characteristics of a candidate that are normally not visible from the objective
information provided by him/her. Many of these qualities and characteristics are intangible in
nature and their assessments are open to varying degree of subjective errors.
Naturally, the application of a device may yield results that depend on other extraneous
factors, e.g., who administered it, at what time it was administered, or how it w2 administered.
Unless an instrument gives results that are stable both over time and over different
administrators, it cannot be very useful and acceptable to an organization.
Sometimes, the use of an installment of low reliability may invite legal sanction for being
unfair and discriminatory.
Thus, the reliability of a selection device is another important characteristic which indicates
consistency in results from its application on the same group of candidates at different times or from
the administration by different administrators on the same group of candidates.

2.5.7. FACTORS AFFECTING THE PROCESS OF SELECTION

A number of factors affect the process of selection as Yoder has rightly observed "recruitment
is positive process where as selection is negative."
The important factors affecting the process of selection are given below:

1. Profile Matching Factor

The most important factor that affects on selection is profile of the candidate and job
specification. The profile of the candidate should match with job specification. For this purpose,
scores secured by the candidates in various tests are taken as a standard and success or failure of
the candidate is decided at each stage of selection. Scores secured in the test, performance in the
interview are taken to match the candidate bio-data with the job specification.

2. Organizational and Social Environmental Factor

Organizational and Social factors also influence the selection process. Candidates who are
able and efficient may fail to work in a type of organization located in a place which is not conducive
to work. For some candidates' hot environment may be problem for others cool environmen t may
be hardship.
Therefore, while selecting the candidates, the prevailing environment, the capacity and
suitability of the candidate to work in that environment should also be considered.

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3. Successive Hurdles
There are number of hurdles in the process of selection which a candidate has to pass through
successfully to get an appointment. These hurdles may be interview, test, group discussion,
reference enquiry etc. All these hurdles influence on the selection process and need to be considered
at the time of selection.

4. Multiple Co-Relations
Multiple co-relations are yet another factor that influences on the process of selection.
Multiple co-relation means relation between two or more factors. It is based on the assumption that
deficiency in one aspect can be counter balanced by an excess amount of another. A candidate who
is poor in communication may be extra-ordinary good in book keeping and accounting. Now multiple
co-relation factors may be applied and candidate may be selected.

2.5.8. PROCESS OF GETTING POTENTIAL EMPLOYEES

Recruitment has been described as the process of getting potential employees wellness to
apply for a Job or Jobs in the organization. If recruitment is successful several candidates will apply
and out of these, the more suitable candidates may be selected. But selection is not an easier process.
It is a problem of man to the job. Thus, selection involves choosing of individuals who possess the
necessary skill, abilities and personality to fill specific jobs in the organization.
Therefore, a well devised selection procedure is of great significance for the organization. The
purpose of selection process is to determine whether a candidate is suitable for employment in the
organization or not. To select means to choose. Selection is a process by which the qualified
personnel can be chosen from the applicants by obtaining and assessing pertinent information about
them. It is the process in which candidates for employment are divided into two classes - those who
will be offered employment and those who will not (i.e. those who will be rejected).
Since more candidates may be turned away than hired, selection is frequently described as a
negative process, in contrast with the positive programme of recruitment".
Thus, unlike recruitment, selection is a negative process as it seeks to eliminate the least
promising candidates and to discover those that appear most likely to succeed. This process
essentially aims at matching the applicants with the job requirements and picking up the most
suitable candidates. The choices are made by elimination of the unsuitable candidates at successive
stages of the selection process.
The following significance can be obtained by the organization if selection is made carefully:

i. Unsuitable and unqualified persons can be weeded out.

ii. Suitable persons are selected means decreasing the level of absenteeism and labour
turn over.
iii. Good selection increases the efficiency of the organization.
iv. Good selection reduces the wastage of time, energy and money by selecting the
suitable candidates.

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 v. Sound selection of executives can build up the strong managerial structure of the
enterprise.
vi. Proper selection is very helpful in building up a suitable workforce.
vii. The productivity of the organization can be improved by good selection.

2.5.9. SELECTION PROCESS INVOLVES CHOOSING BETWEEN APPLICANTS FOR JOBS AND
ELIMINATING UNSUITABLE APPLICANTS

Selection involves choosing between applicants for jobs, eliminating unsuitable applicants.
Selection of applicants depends on the basis of educational qualifications, skills, experience and
aptitude of the applicant which suits the best for job description.
To select the best candidate, intensive research for the job should be conducted in order to
determine the attributes needed for the job and by the applicant.
In other words, an effective selection policy must assert, "why and what" aspects of
organizational objectives. Selection is the process of choosing the best of those recruited. It can be a
negative process as it rejects a large number of applicants to identify the few who are suitable for
the job. It is an important function as no organisation can achieve its goals without selecting the right
candidate. After the receipt of appropriate number of applications through various sources of
recruitment selection process starts. It is concerned with securing relevant information about the
applicants.
The purpose of the selection process is to determine whether a candidate is suitable for
employment in the organization or not. All persons who have applied may not be suitable. Moreover,
the number of applicants will be much more than the positions vacant. It becomes all the more
important to scrutinize applicants properly so that those who are found unsuitable at first instance
should not be called for tests or interviews. This will save time and money of the enterprises as well
as the candidates.
The procedure to be followed for selecting an employee may be different for various jobs. If
the job is not very important than a simple procedure may be followed. For employing unskilled
workers, personnel manager may select them after a brief interview. If skilled and unskilled persons
are to be selected then foremen may interview them and also test their experience by asking them
to work on jobs. When the position to be filled is important than a number of steps may be followed
before a person is finally selected.
The selection process also serves the purpose of selling the organization to the candidate.
During the selection process, the candidates come in continuous contact with the organization
through its representatives. While the candidate is being evaluated, he tries to assess the company
and its culture, apart from the job. So, the representatives of the company have to take care to project
the company in the best possible way. The job is also to be sold to the candidate.
However, providing wrong information and incorrect details might back fire as an unsuitable
candidate might give his acceptance and eventually get hired. It is the responsibility of the selectors
to balance the two purposes of selecting the candidate and creating a good image of the organization
and the job for the candidate. Stress interviews and other similar selection procedure cannot appeal
to a candidate and might put him off.

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 More and more organizations are trying to simplify and modify their selection procedures so
as to ensure the right selection without antagonizing the candidate. It is a fact that the organization
needs a right candidate as much as a candidate needs the right job.

Following points should be considered for selection of candidates:

(i) There should be sufficient number of applicants.

(ii) There should be free flow of communication as to understand each better.
(iii) The method of selection should be sound.
(iv) Some standards should be fixed by which applicants could be rated
(v) Authority should be competent and expert on that particular field to select right
candidate.

2.5.10. SELECTION TESTS

Selection tests are of various types. Some of them have been discussed below, may use one or
more of such tests depending upon the kind of job for which they selecting the candidates.

1. Ability/Achievement/Trade Tests
The ability tests measure how well the Tests candidate can perform the tasks particular job.
In other words, it is a proficiency test of a candidate.
Ability test may also be called achievement tests or trade tests. The composition of suc tests
shall differ from job to job however all such tests shall be directed at confirming candidate regarding
his/her ability.

2. Aptitude Tests
All apples are not ripe when they are plucked. Similarly, all candidates do not come w prior
experience or proven track-record of their abilities. In such cases aptitude tests proves be very
effective.
Aptitude tests attempt to find out the latent potential of a candidate towards a particular job,
not only in terms of performing it in the future but also learning the same.

Aptitude test comes in various types

a. Intelligence Tests
These tests try to measure the overall intelligence of the person to do the job and s various
problems that he/she might encounter while doing the job.
i. Verbal Ability Tests - These tests measure spelling, grammar, ability to understand
analogies and follow detailed written instructions.
ii. Numeric Ability Tests - These tests measure basic arithmetic, number sequence simple
mathematics, and numerical critical reasoning questions.
iii. Abstract Reasoning Tests - These measure and identify the underlying logic of pattern and
then determine the solution.

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 iv. Spatial Ability Tests - This measure ability to imagine shapes in two dimensions or to
visualize three-dimensional objects presented as two-dimensional pictures.
v. Data Checking Tests - These measure how the speed and accuracy with which one can
detect errors in data.

b. Mechanical Aptitude Tests

They measure orientation of a person to perform a mechanical job.

c. Skill Tests
Such tests attempt to determine whether the skill of the person in doing a particular job is at
compilation (just acquired skill) or at automaticity (expertise) level.

3. Situation Tests
Situational tests are thought to be very effective in selection process as they exhibit a
candidate's ability to think, ideate, his/her decision-making ability and many-a-times a reflection of
their attitude and approach. In situation tests candidates are given scenarios that are close to real-
life ones and then tested on how they react to the same.

Some examples of situation tests are:

a) Role Plays In 'role plays' a group of candidates are provided a situation, usually a problem,
which they have to enact and find solutions for the same.
b) Group Discussion A group of candidates are provided a topic on which they are supposed to
discuss, explore multiple perspectives and comment. In the process they are expected to
develop solution or possible alternatives.
c) In-basket Exercises A candidate is given a series of tasks that he/she has to complete in a fixed
period of time, for example, issuing a warning letter, memo, writing to supplier, commenting
on a new policy by the company, reviewing requests by some employees, etc. The speed and
proficiency with which a candidate deals with each of such items in the basket are recorded
and the data is used in selection process.

4. Interest Tests
A candidate's interest towards a particular career or occupation may a times be tested by the
employers, since a genuine interest is seen as a precursor to someone doing a good job.
The more common career interest tests include:
a) SDS - Self Directed Search, also known as SCII Strong-Campbell Interest Inventory this is
based in part on John L. Holland's six personality types (also known as the Holland Codes).
b) Sll-Strong Interest Inventory. Based on the Holland Codes this test typically takes about 25
minutes to complete. It is widely used in for educational guidance in relation to career choice.
c) The Career Key - A career interest test, also based on the Holland Codes.
The ONET Interest Profiler (IP) is a self-assessment career exploration tool that can help
clients discover the type of work activities and occupations that they would like and find exciting.

52
5. Tests
Personality Tested a certain set of personality traits for example a sales person must be
extewart, preprices, a BPO executive must be type B to avoid early burnout etc. Some employers use
personality test to ensure a better candidate-job fitment.

6. General Awareness Test

A candidate knowledge about the general economic, social, political and legal environment
may be tested at times by the employers.

7. Projective Tests
These tests are designed to test the interpretation that a candidate makes about photos or
pictures that he or she is confronted with. It is a type Personality test designed to let a person
respond to ambiguous stimuli, presumably revealing hidden emotions and internal conflicts
Unlike an "objective test" in which responses are analyzed according to a universal standard
(for example, a multiple choice exam), the responses to a projective test are content analyzed for
meaning rather than being based on Pre-suppositions about meaning. There are a number of
different types of projective tests.

Some of the best-known projective tests are:

a. The Rorschach Inkblot Test

The Rorschach Inkblot was one of the first projective tests, and continues to be one of the
best-known. Developed by Swiss psychiatrist Hermann Rorschach in 1921, the test consists of 10
different cards that depict an ambiguous inkblot. The participant is shown one card at a time and
asked to describe what he or she sees in the image.
The responses are recorded verbatim by the tester. Gestures, tone of voice, and other
reactions are also noted. The results of the test can vary depending on which scoring system the
examiner uses, of which many different systems exist.

b. The Thematic Apperception Test (TAT)

In the Thematic Apperception Test, an individual is asked to look at a series of ambiguous
scenes. The participant is then asked to tell a story describing the scene, including what is happening,
how the characters are feeling and how the story will end. The examiner then scores the test based
on the needs, motivations and anxieties of the main character as well as how the story eventually
turns out.

8. Graphology Test
Graphology test is essentially a test of a person's handwriting. The term graphology was first
used by a Frenchman Michon in 1875 and has been derived from the Greek words 'grapho' meaning
'I write' and 'logos' meaning 'theory". Graphology test can tell a lot about the person his emotions,
his ego, his idiosyncrasies, his attitude, perception etc.
The choice of selection test/tests to be employed by the employer in the selection process
shall depend upon need, applicability, feasibility and cost to be incurred in administering a test.

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2.5.11. STEPS FOLLOWED WHILE SELECTING ITS EMPLOYEES

There is no standardized selection procedure to be used in all organizations or for all jobs.
The steps or procedure differ from job to job or even position to position and firm to firm. These
steps are series of successive hurdles or barriers which an applicant must cross. These are designed
to eliminate an un-qualified and un-desirable candidate from the selection process.
However, the following steps are generally followed by the organizations while selecting its
employees:
1. Scrutiny of application
2. Preliminary Interview
3. Application Blank
4. Selection Test and Group Discussion
5. Interview
6. Medical Examination
7. Checking References
8. Final Approval, Placement and Induction.

1. Scrutiny of Applications
The first and foremost step in the process of selection is receipt of applications and scrutiny
or screening of applications received just to ensure that applicants possess requisite qualification
and fulfill all the conditions required and whether application is complete in all respect etc.
Incomplete applications are kept out of the list and applications complete in all respect and
applicants who fulfill all the conditions are called for preliminary interview.

2. Preliminary Interview
Preliminary interview is generally conducted by a junior executive or assistant of the
personnel department. Preliminary interview is conducted to know about the candidate, his or her
qualification, skill knowledge, experience salary expected etc., and also to give information about the
company, nature of the job, method of performing job etc.
Preliminary interview saves time and effort of company and candidates as it helps to
determine whether job to be offered suits to the candidates and candidate is fit to do a job. Due to
overage, physical unfitness, lack of required education and experience, some of the job seekers may
be unsuitable. Therefore, to test the suitability and employability of the candidate preliminary
interview is conducted.

3. Application Blank
Those who have crossed the hurdle of preliminary interview will be given application blank.
It is a device of collecting information from the candidates. Generally big firms we different printed
application forms for different job that will be issued to the candidates for collecting information.
Generally, application blank or form contains the following information:
i. Name, address, telephone number etc.
ii. Personal information like age, sex, marital status, place of birth etc.

54
 iii. Education and family background.
iv. Physical characteristics like height, weight etc.
v. Extracurricular activities like games and sports, hobbies, membership of professional bodies,
personal achievements like prizes won, medals received etc.
vi. Experience in different organizations if any and salary drawn and salary expected etc.

4. Selection Test
Use of tests in the process of selection of an employee has become very much common now.
Standardized tests are available in order to judge the attitude, behavior, ability, interest and aptitude
of the candidates. For this purpose, aptitude test, intelligence test, skill test, knowledge test,
personality test, interest test etc., are conducted depending upon the nature and type of job.
Tests help in understanding the abilities and weakness of the candidates and are helpful in
matching the job with candidates. Test is one of the best devices for selecting the candidates when
applicants are in large number. Thus, tests help to reduce bias in selection by serving as a
supplementary screening device.

Group Discussion
Group discussion is a device or means of judging the leadership ability and social traits of
candidates. In this technique, candidates are brought together and small group consisting of 5 to 8
members is formed and problem is given for discussion. The group has to analyse, discuss and find
solution for the given problem. The selection panel will observe their discussion and even guide the
group. The initiative, leadership qualities, behavior and judgment of every member can be judged on
the basis of their participation and co-operation given in the discussion.
Thus, group discussion is a useful device for selecting a candidate when job requires co-
operation of several persons and involves group effort.

5. Interview
Interview is a widely and commonly used technique of selecting an employee in almost all the
organizations Though test of the steps is not followed by all the organizations interview is
compulsorily conducted by all the organizations before selecting its employees. It is a conversation
between two persons which involves a personal, observational and face to face appraisal of
candidates for employment.
Depending upon the nature of the job, different types of interviews are conducted. Interview
may be formal interview, informal interview, structured or unstructured using depth interview,
group interview, stress interview, panel interview etc.
Interview helps to cross-check the information collected through application and test helps
to judge whether candidate is really suitable for the post for which he has whether the candidate
really possesses all the qualities claimed in the application
Thus, interview is a tool through which information about the candidate is collected
information about the company is given and suitability of the candidate for a particular job is judged

55
6. Medical Examination
Those who have successfully completed the above process of selection are just to medical
examination by the medical officers appointed or recognized by the company. Physical fitness of the
candidate is checked through medical examination. The main objective of conducting medical
examination is to scones that candidate is physically fit to handle the job and to offer his services.
Those who are physically unfit to handle the job or those who are physically handicapped or those
who are suffering from contagious diseases are kept out of the list and ass out finally selected and
those who are physically fit are only selected to perform the job

7. Checking References
Checking reference is another important step in the process of selection. Here reference given
by the candidate in their application but their status is shocked by the organization before offering
the job. Generally, applicant is asked to mention in his application form the names and addresses of
at least two persons who knows well.
The organization contacts such person through email or telephone and collects the
information about the candidate who has applied for the job. The information so collected is kept
confidential and is useful in judging de behavior and character of the candidates However,
information supplied by the referees is not fully reliable as they may be based or favorable to the
candidates

8. Final Approval, Placement and Induction

If a candidate qualifies in the process of selection, he is finally selected and an appointment
letter may be given to him mentioning the post for which he is selected, terms of appointment, pay
scales, the date by which the candidate should join etc. Initial appointment will be on temporary
basis.. On successful completion of his probationary period of one or two years, employee will be
confirmed in the job on permanent basis. When candidate joins the organization by giving joining
report, the personnel manager receives him and places him in a job for which he is selected and
introduces him to the company, his job and colleagues.

2.5.12. TRADITIONAL METHODS FOR PERSONNEL SELECTION:

Selection of personnel has been in practice since long though criteria and principles used
were not systematic. The history of personnel selection suggests that formerly stereotyped
impressions of personality and characteristics were used as a basis for selection such as soldiers in
the army to be selected from families whose members used to be in the army, administrators to be
selected from families whose members were in the administrative service, and so on.
The nineteenth century, particularly, saw the growth of some 'pseudo-scientific methods like
phrenology, physiognomy, and graphology for personnel selection. Let us have a brief look at these
and the way they used to contribute to find a right person.

1. Phrenology
One of the most popular techniques for personnel selection during nineteenth century was
phrenology which is concerned with identification of mental faculties supposed to be located in

56
various parts of the skull and investigable by feeling the bumps on the outside of the head Based on
these bumps, the mental faculties and propensities of a person like combativeness, sentiment,
perception, conduct, character, etc. were used to be judged.
However, the users of this technique could not explain how these bumps were related with
the personality dispositions of a person. In the context of the present-day, personnel selection
process, phrenology does not have any role. Indeed, it has been rightly observed by someone that
"the bumps on a man's skull tell more about his wife's character than his own."

2. Physiognomy
Physiognomy is the art of judging character from appearance specially the face. It i based on
the assumption that face is an index of mind. In nineteenth century, Lavate published 'Essays on
Physiognomy' which suggested a definite correlation between facial features and psychological
functions and behaviour.
He indicated the facial features to be reflective of personality traits and characteristics For
example, thin lips indicated determination, broad jaws indicated tenacity, and so o However, and
various studies have negated such a correlation.

3. Graphology
Graphology is the art of estimating a person's character, etc. from his handwriting. It wz used
by Chinese in eleventh century to predict personality characteristics based on handwriting. Outside
China, it was used by a French priest, Jean-Hippolyte, in 1830. Since then, this concept travelled to
other parts of the World.
Graphology draws its basics from the theory of space symbolism, which suggests that a
person uses a blank sheet of paper in exactly the same way as he uses three-dimensional space For
instance, an individual who uses every inch of the paper will normally explore every nook and corner
of a new room he himself finds in.
Extending the analogy to handwriting, graphologists contend that the way in which an
individual's script uses space reflects his interactions with others in real space and, thus, provides a
clue to his personality. Graphology looks at slant, speed, spacing, pressure, clarity, size, length of
upper extensions, and length of lower loops of script to gauge one's personality. Occasional writings
by different graphologists indicating the relationship between the type of handwriting of a person
and his personality. However, such a relationship has not been confirmed as yet. Therefore, its use
is not significant in personnel selection. Some companies insist that application forms should be in
the candidate's own handwriting, and sometimes, with a paragraph about himself. However, the
purpose is not to associate candidate's handwriting with his personality but to seek additional
information about himself not covered by the structured application form.
In jobs that require good handwriting, graphology can play its role. In other jobs, it does not
have much scope though good handwriting may create better impression about the candidate.
Besides these, there may be some other non-scientific methods for personnel selection such as
physical features-height, weight, family background, caste, etc. However, none of the traditional
methods meets the requirements of selection process.

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2.5.13. IMPORTANT FUNCTION OF THE MANAGEMENT (WITH BENEFITS OF SELECTION)

The quality of personnel working in the organisation determines its success. Selection is an
important function of the management.
Following points explain the benefits of selection in detail:

1. Procurement of Skilled Employees

In the process of selection, only desirable candidates are hired and others are denied the
opportunity. Therefore, in selection, the suitable candidates who are fit for the job are selected from
the prospective employees.

2. Reduction in the Cost of Training

When, through selection, proper candidates are selected, the cost of training is reduce The
Where those the selected qualified personnel have better grasping power and they ca understand
the techniques of work better and more quickly.

3. Solution to Personnel Problems

Personnel problems are reduced in the organisation when proper selection of personnel
made. Labour relations improve and workers become more satisfied with their work. Many
problems like labour turnover, absenteeism and monotony are not experienced in organisation.
Some of the other benefits of selection process are:
i. Selection helps in appointing competent employees who perform better at work.
ii. If suitable employees are selected, rate of industrial accidents also reduces.
iii. It helps in building up the contented workforce for the organisation.

2.5.14. TYPES OF ERRORS (SELECTION ERRORS AND OMISSION ERRORS)

Statistically speaking the error can either be systematic or random in nature; where
systematic error shall mean those caused by faults in the system or the process where random errors
would be more related to the usage of the selection tools.
However, as we just observed, in selection the two main types of errors could be 'selection
errors' and 'omission error'.

1. Selection Errors
Selection errors are those resulting from hiring a 'wrong person'. In such cases success in
predicted and failure results. The costs of such errors include the costs of loss (indicating the period
for which the wrong-hire worked), cost of training and cost of re-hire, re-training etc.

2. Omission Errors
Omission errors are those resulting from letting a right person' go and not hiring him/her
The costs of such errors shall primarily be computed on lost opportunity. However it may be
impossible to properly estimate the total loss.

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Other Errors
Besides attrition and non-availability of skilled human resource, the problem of wrong hires
confronts most of the organizations. Wrong hires always mean a wasted cost to the company. It is
estimated that the cost of hiring a wrong candidate is always 24 times more than hiring an average
candidate. One way to ensure 'correctness' in hiring is to have reliable and robust selection tools.

2.5.15. RECENT TRENDS EMERGING IN SELECTION TECHNIQUES

New trends have been emerging in selection techniques along with other areas of human
resource management.
The recent trends in selection include
i. Selection by invitation,
ii. Leasing and
iii. 360° selection programme.

1. Selection by Invitation
Management observes the performance of key executives of competitors. If the performance
of the key executives is excellent or the key executives are change agents, the management invites
such executives to join the organisation by offering attractive salary and benefits.
Thus, the significant performance of the executives forms the basis for selecting them by
invitation.

2. Leasing
Presently, the organisations need to employ specialists to take-up the highly skilled jobs.
In fact, the changes in technology demand highly skilled employees. It would be very difficult
for small organisations to employ skilled employees as they demand high pay. Added to this, such
employees may not have enough work.
These factors enabled the consultancy organisations to employ experts and depute these
employees to the needy companies on lease. These consultancy organisations are principal
employers and the needy organisations draw the required employees from the pool on lease and pay
the agreed fee to the consultancy firms. The consultancy firms pay the salary to the employees.
This type of arrangement is beneficial to the consultants, employees on lease and the
industrial organisations. The business organisations can utilize the services of the experts with less
cost. The employees get high pay and benefits. The leasing company derives surplus from its charges
and fees.

3. 360° Selection Programme

Normally, superiors administer the selection tests and interviews. They judge the fit tween the
job and the candidate. But the employee skills, knowledge and performance fact not only superiors
but also subordinates and the employees of the same level.
Hence, the organisations started involving the subordinates and the employees of the me level in
administering the employment tests and interviews. This type of selection programme is called 360°
selection programme.

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2.6. SOCIALIZATION

Socialization is the process through which individuals learn and internalize the norms, values,
beliefs, and behaviors necessary to function effectively in society. It helps individuals understand
their social roles and develop their identity within the culture they are part of.

2.6.1 Socialization in Human Resource Management (HRM)

 Socialization is a critical aspect of Human Resource Management (HRM), playing a vital role
in integrating new employees into the organization. In the HRM context, socialization refers
to the structured process through which newcomers learn the organizational culture, values,
expected behaviors, and social knowledge necessary to become effective members of the
organization. It ensures that new hires not only understand their job roles but also adapt to
the company's environment, work practices, and unwritten norms.
 The socialization process begins from the moment an individual accepts an offer and
continues through orientation programs, mentoring, training, and daily interactions. Effective
socialization helps reduce uncertainty, lowers anxiety, and enhances job satisfaction among
employees. It fosters alignment between the individual's expectations and the organization's
realities, thereby increasing the likelihood of job retention and commitment.
 There are generally three stages of organizational socialization:
 Pre-arrival Stage: Before joining, individuals form expectations about the organization based
on interviews, websites, and social networks.
 Encounter Stage: Upon joining, employees experience the real organizational culture and
reconcile it with their expectations.
 Metamorphosis Stage: Over time, employees adjust their behavior and attitudes to align with
organizational values, becoming fully integrated members.
 From an HRM perspective, structured socialization programs such as onboarding, orientation
sessions, mentoring, team-building activities, and performance feedback are essential. These
practices not only speed up the integration process but also reduce turnover, improve
productivity, and enhance employee engagement.
 In conclusion, socialization in HRM is not merely about introducing job tasks but is a strategic
tool to embed employees within the organizational culture, ensuring smooth transitions, and
fostering long-term loyalty and effectiveness.

2.6.2 Practical Example: Socialization Process at Infosys (IT Company)

When a new software engineer joins Infosys, the company follows a structured socialization process:

Pre-arrival Stage:

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  The candidate, after accepting the offer, is given access to the Infosys Pre-Joining Portal,
where they learn about company culture, values, policies, and expectations. This prepares
them mentally for the transition.

Encounter Stage (Onboarding):

 On joining, the employee attends a formal orientation program, known as the 'Infy
Onboarding Week.'
 They meet their HR partner, team leader, and peers.
 They are introduced to company policies, workplace ethics, diversity and inclusion
policies, and work etiquette.
 They receive initial assignments and projects.

Training & Mentoring:

 The new hires undergo intensive technical training at Infosys' Global Education Center.
 They are assigned mentors and buddies to help them navigate the first few months.
 They are encouraged to participate in team-building activities and social events.

Metamorphosis Stage:
 Over time, the employee adapts to Infosys' work culture, starts contributing to projects,
and takes part in organizational initiatives like Hackathons, CSR programs, etc.

Full Social Integration:

 The employee becomes an active, engaged, and productive team member, aligning with
Infosys' values like 'Customer First,' 'Continuous Learning,' and 'Integrity.'
 This real-world example shows how Infosys uses formal and informal socialization
practices to transform a new hire into a fully engaged and integrated employee.

2.6.3 Purposes of Socialization

Socialization formats are unique to every business organization. However, following are some of
basic purposes of socialization.

1. The Employment Situation

From the business organization’s viewpoint, the fundamental aim is to have new employee
become productive as rapidly as possible. Therefore at an early point in time, particular information
about doing the job may be provided.

2. Business Organization’s Policies & Rules

Within organization, each job must be done viewing the constraints & guidelines given by
policies & rules. In order to permit smooth transition to workplace, employees must have
understanding of these.

3. Compensation & Benefits

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 In getting information about the reward system, employees will have a special interest.
Although this information is generally given during the selection & recruitment process, a re-
examine of the information is suitable during socialization.

4. Corporate Culture
Corporate culture relates to everything from the manner employee talk to the manner they
dress.

5. Team Membership
Before a new employee is hired, the willingness and ability of that employee is likely to
ascertain. In socialization, the significance of getting worthy member of the business organization
team may be emphasized.

6. Employee Development
Employees should know properly what is required by the business organization for progress
in the job or through promotion.

7. Dealing with Change

In order to survive in their jobs, employees at all levels must learn to properly deal with
alteration. To continually develop and expand their skills is the best way individuals can prepare for
change.

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