1.
Selection Process (Mid-term)
In the past, selection was often thought to be an easy decision. Decisions were based on the subjective likes
or dislikes of the boss. Selection tools were designed to aid this gut reaction. Today, selection is viewed as much more
than simply relying on intuition.
The selection decision is usually perceived as a series of steps through which applicants pass. At each step,
more applicants are screened out by the organization, or more applicants accept other job offers and drop from the
list of applicants.
There are six steps in selection process. Step 1: Preliminary Screening, Step 2: Employment Interview, Step
3: Employment Tests, Step 4: Reference Checks and Recommendations, Step 5: Selection Decision, Step 6: Physical
Examinations
Step 1: Preliminary Screening
The most common first step in any selection process usually involves asking an applicant to complete an
online or paper application form. Application blanks, as these are typically referred to, vary in length and
sophistication. Nearly all application blanks ask for enough information to determine whether the individual is
minimally qualified for the position. In this way, the application blank can eliminate the need for subsequent
interviews to gather this information.
A potentially useful supplement to the traditional application blank is the biographical information blank
(BIB) which is used to collect “biodata” from job applicants.
Another variation of the traditional application blank, the weighted application blank, is systematically
scored by comparing high and low performers based on known characteristics at the time of application. Each
applicant’s scores are totaled, and the applicant with the highest score is considered the preferred choice.
Step 2: Employment Interview
Two strategies for making the most out of an interview are (1) structuring the interview to be reliable and
valid, and (2) training managers to use the best available interviewing techniques
Types of Interviews
Employment interviews vary along at least two important dimensions: how structured the interview is and
whether it focuses on historical information about the applicant or attempts to place the applicant in hypothetical
situations to assess how she or he might respond in the future. An unstructured interview has no predetermined
script or protocol. Typically, the interviewer does not have a scoring protocol either. During the structured interview,
the interviewer has a standardized list of questions to ask of all applicants. These questions should have been
generated with the aid of a thorough job analysis in order to identify specific types of information sought during the
interview.
The behavioral description interview (BDI), asks applicants to relate actual incidents from their past relevant
work experience to the job for which they are applying. BDIs are based on the assumption that the past is the best
predictor of the future.
The situational interview (SI) also seeks to identify whether an applicant possesses relevant job knowledge
and motivation, but it achieves this goal in a different manner.
Training for Interviewing
Despite recent optimism about the validity of employment interviews, many questions about their
effectiveness remain unanswered. For years, there have been significant concerns that interviewers may differ
considerably in their accuracy, and the potential for bias always exists, since the interview relies so heavily on
personal judgments.
Step 3: Employment Tests
A technique that some organizations use to aid their selection decisions is the employment test. An
employment test is a mechanism (either a paper-and-pencil/online test or a simulation exercise) that attempts to
measure certain characteristics of individuals. These characteristics range from aptitudes, such as manual dexterity,
to intelligence to personality.
Job Sample Performance Tests
A job sample performance test requires the applicant to actually do a sample of the work that the job
involves in a controlled situation.
Step 4: Reference Checks and Recommendations
If you have ever applied for a job, you were probably asked to provide a list of people whom the organization
could contact to get information about you. These references might have been work-related, or they might have
been personal. In either case, to the extent that you could, you provided the organization with a list of people who
you believed would generally speak favorably about you..
Step 5: Selection Decision
There are two major approaches used by organizations to arrive at the selection decision: the multiple-
hurdle approach and compensatory model.
The multiple-hurdle approach is the process of reaching a selection decision by requiring job candidates to
meet basic minimum requirements on each stage of the process.
Alternatively, organizations can use a compensatory model in which the selection decision is based on a
process in which a very high score on one of the selection tests (e.g., work sample) can make up for a low score on
another test (e.g., interview). [A company hiring a sales manager uses a compensatory model. If a candidate has
excellent communication skills and a strong network but less experience, their strengths can balance out the weaker
area, allowing them to still qualify for the role.]
Step 6: Physical Examinations
Physical examinations can be used to screen out unqualified individuals but generally should be required only
after a conditional offer of employment has been made. oowever, if an organization is going to use such
examinations, all individuals who are conditionally offered employment should be required to have one. These
requirements do not mean that an organization must hire an individual with a disability if that person cannot
perform the essential functions of the job. They do, however, help protect the rights of individuals with disabilities
who are qualified.
A Note on Drug Testing
Perhaps no other selection practice elicits a more emotional reaction than an organizational drug-testing
program.
oowever, the best guess is that most good-faith drug testing programs will be legally acceptable if the
organization has taken steps to: • Inform all job applicants of the organization’s drug-testing screening program. •
Establish a high-quality control testing procedure with a reliable testing laboratory. • Perform any drug tests in a
professional, nonthreatening manner. • Keep all results confidential.
2. Methods of Recruiting
Once an organization has decided it needs additional or replacement employees, it is faced with the decision
of how to generate the necessary applications. The organization can look to sources internal to the company and, if
necessary, to sources external to the company. Most organizations have to use both internal and external sources to
generate a sufficient number of applicants. Whenever there is an inadequate supply of labor and skills inside the
organization, it must effectively "get its message across" to external candidates.
Internal Recruiting
Job Posting
Organizations can make effective use of skills inventories for identifying internal applicants for job vacancies,
It is difficult, however, for oR managers to be aware of all current employees who might be interested in the vacancy.
In the past, job posting was little more than the use of bulletin boards and company publications for advertising job
openings. Today, however, job posting has become one of the more innovative recruiting techniques being used by
organizations.
Internal Moonlighting and Employee Referrals
If there is a short-term shortage, or if no great amount of additional work is necessary, the organization can
use internal moonlighting. It could offer to pay bonuses of various types to people not on a time payroll to attract
workers into wanting to take on a "second" job.
External Recruiting
When an organization has exhausted its internal supply of applicants, it must turn to external sources to
supplement its workforce. Research indicates that walk-ins provide an important external source of applicants. As
labor shortages increase, organizations are becoming more proactive in their recruitment efforts.
Media Advertisements
Organizations advertise to acquire recruits. Various media are used, the most common traditional form being
help-wanted ads in daily newspapers. Organizations also advertise for people in trade and professional publications.
Other media used are billboards, subway and bus cards, pop-up ads on the Internet, radio, and television.
E-recruiting
E recruiting uses digital platforms like job portals, social media, and AI tools to attract, assess, and hire
candidates, making recruitment faster, cost-effective, and more efficient.
Recruiting and Social Networking Sites
Many organizations from colleges to companies are experimenting with the use of social networking sites like
Facebook, Twitter, and LinkedIn to recruit applicants.
Employment agencies and Executive search firm
Employment agencies recruit candidates for various roles, while executive search firms specialize in hiring
top-level executives for leadership positions
Special-Events Recruiting
When the supply of employees available is not large or when the organization is new or not well known,
some organizations have successfully used special events to attract potential employees.
Summer Internships
Another approach to recruiting and getting specialized work done that has been tried by organizations is to
hire students as interns during the summer or part-time during the school year.
College Recruiting
College recruiting is costly and time-consuming but helps organizations bridge the skills gap by identifying
talented employees for future needs. The college recruiting process is similar in some ways to other recruiting.
oowever, in college recruiting, the organization sends an employee, usually called a recruiter, to a cam-pus to
interview candidates and describe the organization to them.
The Effective College Recruiter
Various people influence the applicant during the process of choosing a job: peers, family, spouse, friends,
and professors. The recruiter plays a key role as a filter and representative of the organization, shaping applicants'
perceptions and attracting the right talent.
**Note – In order to put relevant applied answer, read the theory thoroughly **
3. JD/JS
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Training and Development Methods
On-the-Job Training
The employee is placed into the real work situation and shown the job and the tricks of the trade by an experienced
employee or the supervisor.
On-the-Job Training for Managers
On-the-job management training is the preferred type from many points of view, especially because of its
relevance and immediate transferability to the job. There are three widely used approaches to training managers on
the job. These programs are not mutually exclusive; often they are run simultaneously.
Coaching and Counseling
One of the best and most frequently used methods of training new managers is for effective managers to
teach them. The coach-superior sets a good example of what a manager does. oe or she also answers questions and
explains why things are done the way they are.
Transitory Anticipatory Experiences
Another approach to management training is to provide transitory experiences. Once it has been determined
that a person will be promoted to a specific job, provision is made for a short period before the promotion in which
she or he learns the new job, performing some new duties while still performing most of the old ones.
Transfers and Rotation
In another on-the-job approach, trainees are rotated through a series of jobs to broaden their managerial
experience. Advocates of rotation and transfer contend that this approach broadens the manager’s background,
accelerates the promotion of highly competent individuals, introduces more new ideas into the organization, and
increases the effectiveness of the organization.
Off-the-Job Training
Organizations with the biggest training programs often use off-the-job training. The training directors
indicated that if knowledge was the objective, it would be best to use programmed instruction. On the other hand, if
the training was intended to improve problem-solving skills, then it would be better to use the case method of
training
Lecture-Discussion Approach
The method allows the trainers’ message to be given in many locations and to be repeated as often as needed for the
benefit of the trainees.
Computers
The advantages for training include allowing trainees to learn at their own pace, to study areas that need
improvement, and—depending on availability of personal computers—flexibility. Virtual reality (VR) is a computer-
based technology that enables users to learn in a three-dimensional environment.
The Digital Marketing Manager at Yoma Bank will receive on-the-job training, including guidance from experienced
professionals to understand the bank’s marketing strategies. They will also rotate through different teams, such as
SEO, paid media, and analytics, to gain hands-on experience in all key areas. This approach helps them adapt quickly
and work effectively across departments.
Additionally, they will take part in off-the-job training, such as workshops on SEO, SEM, and digital advertising to
sharpen their skills. Training in tools like Google Analytics and AI-driven marketing platforms will help them make
data-driven decisions. Case studies on successful campaigns and leadership development programs will also prepare
them for strategic planning and team management.
4. Compensation
Financial compensation is either direct or indirect. Direct financial compensation consists of the pay an
employee receives in the form of wages, salaries, bonuses, or commissions. Indirect financial compensation, or
benefits, consists of all financial rewards that are not included in direct financial compensation.
Pay and Employees’ Satisfaction
Satisfaction is an evaluative term that describes an attitude of liking or disliking. Pay satisfaction, therefore,
refers to an employee’s liking for or dislike of the employer’s compensation package, including pay and benefits. And
although it seems logical to assume that employees derive satisfaction from being paid well or getting desired
benefits or services, this is a very subjective conclusion. In fact, the sheer complexity of reward systems made up of
numerous components like base pay, bonuses, benefits, and services makes it even more difficult to research
employees’ satisfaction. The clearest indication of satisfaction may be patterns of absenteeism and turnover.
The distinction between the amount employees receive and the amount they think others are receiving is
the immediate cause. If they believe the two amounts are equal, pay satisfaction results. The feedback loop between
the employee’s perception and fairness and subsequent work behavior leads to fluctuations in output. Expectancy
theory can also be used to get employees to motivate themselves, on the basis of what they want and how they can
get it. For example, if employees know that working harder will result in a higher bonus, they will be motivated to
put in more effort. Research conducted by Simons found which components of the pay system will lead to
satisfaction differed by type of workers: Industrial workers preferred interesting jobs more than high pay; hotel
workers preferred high wages above everything else.
Relative deprivation theory suggests that pay dissatisfaction is a function of six important judgments: (1) a
discrepancy between what employees want and what they receive; (2) a discrepancy between a comparison
outcome and what they get; (3) past expectations of receiving more rewards; (4) low expectations for the future; (5)
a feeling of deserving or being entitled to more than they are getting; and (6) a feeling that they are not personally
responsible for poor results. For instance, if an employee finds out that a co-worker with the same job is paid
more, they may feel dissatisfied even if their pay is decent.
oerzberg’s hygiene theory adds another twist. oe proposed that the opposite of job satisfaction is not
dissatisfaction but just the absence of satisfaction. Nor is the absence of dissatisfaction necessarily positive
satisfaction. When applying his theory to pay, he reached the conclusion that pay simply prevents workers from
being demotivated. While a high salary won’t necessarily make employees happy, not paying them well enough
will lead to dissatisfaction.
Pay and Employees’ Productivity
High performance requires much more than motivation. Ability, adequate equipment, good physical working
conditions, effective leadership and management, health, safety, and other conditions all help raise performance
levels. But employees’ motivation to work harder and better is obviously an important factor. A number of studies
indicate that if pay is tied to performance, the employee produces a higher quality and quantity of work.
Early evidence linking pay and performance is found in the Code of Hammurabi, written in the 18th century
b.c., which documents the use of a minimum wage, a fixed wage, and incentive rewards. Traveling merchants were
paid on the basis of a strong performance incentive—unless investors received double profits, these merchants
weren’t paid. oowever, during the Middle Ages it was “common knowledge” that workers would be productive only
as long as they needed to be, perhaps working three days a week and spending the other four celebrating. The dawn
of industrialism found capitalists seeking a way to use rewards to encourage productivity: the incentive wage.
Incentive wages were supported by early economists on the basis of the “hungry man” theory. Since a
hungry worker would want to earn money to buy food, wages should be kept at the subsistence level so that
workers would be motivated to be highly productive.
Adam Smith (1776) modified this to develop the “economic man” theory. For example, a worker might push
themselves to work harder when they realize that a higher salary will allow them to afford more goods and
services. Instead of physiological needs, money became the motivator for work. The more money each individual
made, the harder he or she would work; output would increase as wages rose. Thus the basis of the modern wage
incentive plan was set.
Frederick W. Taylor built on Smith’s theory, urging managers to learn to design jobs properly and then link
pay directly to measurable productivity. Variations of Taylor’s incentive pay are still in widespread use.
Not everyone agrees with this—some researchers argue that if you tie pay to performance, you will destroy
the intrinsic rewards a person gets from doing the job well. Intrinsic rewards are powerful motivators too, but
research on them has been limited to only a few studies. The importance of money to employees varies among
individuals. If the organization claims to have an incentive pay system, and in fact pays for seniority, the motivation
effects of pay will be lost. The key to making compensation systems more effective is to be sure that they are directly
connected to expected behaviors.
Research on the relationship between pay and employees’ satisfaction and between pay and productivity
continues, but with contradictory results. It still can be concluded, however, that pay is an important outcome to
employees. Studying pay, performance, productivity, and job satisfaction is especially important because of their link
to employees’ subsequent behaviors, including absenteeism and turnover, union organizing, and assumption of
responsibility.
5. Strategic Challenges Facing HRM – Page 48
Strategic Challenges Facing HRM include technology, diversity, Caliber of the workforce, organizational
Restructuring and Downsizing and Contingent Workers.
Technology
The much heralded “information age” has arrived swiftly. Its arrival has impacted jobs, the way business is
conducted, and the need for more knowledge workers. The trends of the technology revolution are recognizable as
the following:
1. Growth in knowledge needs - World trade is growing over three times faster in knowledge-intensive goods
and services such as biomedicine, robotics, and engineering.
2. Shift in human competencies - Some predict that by 2015 almost all net employment growth will be in
knowledge workers.
3. Global market connection - Technology is dissolving borders and creating an interconnected marketplace.
4. Business streamlining - Easy-to-use communication, electronic mail, electronic conferencing, and databases
are creating instantaneous dissemination of data to make better decisions to geographically dispersed
workers.
5. Rapid response - Technology permits quick communications, which allows faster decision making. In Tokyo,
Coca-Cola automatically informs distributors when inventory is low.
6. Quicker innovation - Teams of marketing, engineering, and production personnel working in parallel with
computer-provided files, data, and information develop products faster.
7. Quality improvement - The concept of building quality into the entire process of making, marketing, and
servicing is enhanced by computer monitoring systems and through robotics.
8. Telecommuting - Today, with increased computer and telecommunications technology, there is a move for
many to work from their homes, or engage in what is referred to as telework or telecommuting.
oRM must adapt to the rise of knowledge workers and the increased use of technology. This includes recruiting
talent in tech-heavy sectors, providing training for advanced communication tools, and enabling telecommuting.
Technology also allows oR to streamline operations, improve decision-making, and enhance employee
collaboration.
Diversity: Building a Competitive Workforce
There is no doubt that the American workforce is changing in dramatic ways. For instance, In the past, most
business owners were men, but today, more women are starting their own companies.
The changing look, age, and needs of the workforce have resulted in more concern about child care, e l der
care, and training in understanding diversity. oigh-quality day care has made it easier for women to raise a family and
also begin a productive career. Unfortunately, however, although the need for child care is obvious, only about 5 or 6
percent of employers provide day care assistance.
An increasing number of empirically based studies are illustrating that diversity-friendly strategies can have a
significant impact on end results, such as being considered socially responsible and earning a favorable return on the
products and services provided to consumers.
oR must focus on creating an inclusive workforce by addressing diverse needs, such as child care and elder
care. Implementing diversity-friendly strategies, like offering flexible work arrangements, can help attract diverse
talent, improve company culture, and enhance business outcomes.
Caliber of the Workforce
Recruiting and developing skilled labor is important for any company concerned about competitiveness,
productivity, quality, and managing a diverse workforce effectively. The mismatch between jobs and applicants—
high-skill job demands and the lack of qualifications among job applicants is documented in a list of reports and
statistics. Since a growing number of jobs will require more education and higher levels of language, math, and
reasoning skills than current ones, oRM practitioners and specialists will have to communicate this to educators,
parents, and community leaders.
The skill gap must be faced not only by oRM. In fact, the entire society will have to face the consequences of
not having the workforce needed to compete in the global economy. Strategic planning to reduce the skills gap in a
firm’s workforce, however, is a serious issue facing oRM.
To close the skills gap, oR must partner with educational institutions to ensure curricula align with job market
demands. Upskilling current employees through training programs is also essential for staying competitive in a rapidly
evolving job market.
Organizational Restructuring and Downsizing
The endless stream of headlines and news stories about restructuring and downsizing could fill page after
page. A few facts about downsizing:
1. About half of all firms downsizing end up with at least as many employees within a few years’ time.
2. Downsizing in manufacturing is nothing new and has been occurring since 1967. Manufacturing is only about
15 percent of the downsizing story. Retailing and services have been upsizing considerably for the past
decade.
3. Downsizing is positively correlated with the degree of foreign competition in a sector. A logical proposition is
that downsizing does encourage firms to reduce their costs.
4. Downsizing firms tend to increase their profits in the short run but not their productivity.
5. Downsizing commonly leads to lower compensation/wages within the downsizing firm.
Restructuring means changing the reporting and authority relationships within a firm. Downsizing is a term
used to designate a reduction in a company’s workforce. Downsizing has a human face in that people are laid off,
friends and colleagues are given new job responsibilities, and feelings of trust and job security are threatened. The
emotional impact of being laid off or of having a colleague laid off can result in stress related health problems.
oR must manage downsizing with care, balancing short-term profits with long-term productivity. Clear
communication and support programs for affected employees are vital, as well as strategies to maintain morale and
productivity post-downsizing.
Contingent Workers
There are permanent or full-time employees and another category, referred to as contingent workers. The
category of contingent employees includes temporaries, part-timers, contract, or leased workers (out sources).
Contingent employees are becoming a widespread part of the staffing mix of firms. Part-timers (as the term implies)
put in fewer hours than full-time employees. The part-time employee usually receives fewer fringe benefits and often
has a flexible work schedule. A 20-hour workweek or less is often the regular schedule of a part-timer.
With the rise of contingent workers, oR must manage flexible work arrangements and ensure proper
integration into the company culture. Offering competitive benefits and clear expectations for contingent workers
can help maintain productivity and engagement across all employee types