PROCUREMENT

The objective of the present lesson is to impart knowledge of various techniques through
which requirement of Man Power can be fulfilled. In Other words knowing the methods of
appointing “RIGHT KIND OF HUMAN RESOURCE FOR RIGHT JOB” is the objective of
the lesson.
Right Man Power is the greatest asset of any organisation. Hence maximum emphasis has
been laid on the explanation of various methods/sources of recruitment, selection, placement,
induction, socialisation, orientation [Link] this unit
As already explained selecting “Right Man for the Right job” is the key of success of any
organisation. It is the men of innovative, creative and constructive bent of mind who
ultimately prove to be the asset of the organisation as they innovate some tool, plant,
machine, process or raw material for production which leads to the minimisation of cost of
production, wastage and maximises the productivity of workers and thereby multiplies the
profitability of the firm.
Sources of Procurement
Following are the two main sources of supply of manpower
1. Internal Sources
2. External Sources
Internal sources - In the present work force on the role of the company from among whom
some of employees found suitable for handling the responsibilities of higher position may be
promoted to the post fallen vacant or from transferring some such competent persons from
other units of the company where they are in excess,is Procurement Function.
But as the internal source may not be able to fulfil the entire vacancies the external sources
are taped.
1. Candidates having completed their education recently and are in the search of job.
2. Candidates with requisite skill experience and expertise who are in the look of better job
opportunities employed on some other companies presently on lower scale.
3. Those who have resigned from some other companies or retrenched or laid off
(temporarily un-employed) by some other companies and are in search of job.
4. Those who have been compulsorily retired from some companies in the name V.R.S.
(voluntary retired from service) due to automation/new technique introduced in the company)
but are quite experienced and still capable of performing if given opportunity.
5. Those young/energetic personnel who have completed their minimum bond-period in some
company and are in the look of better job opportunities.
6. Those who have been removed from service by some foreign companies due to
recession/depression in their economy as in recent past many software Indian engineers were
removed from U.S.A./U.K.
7. Those who have been turned un-employed due to closes of some company but are quite
capable of working.
Other potential sources of external sources include:-
8. Employment Exchanges
9. Placement agencies like [Link], A.F. Ferguan Associates, Datamatic Staffing Service
Ltd., Personnel search service, ABC Consultant etc.
[Link]/PGDM/BBA students doing their summer internship in different companies.
11. Campus selection from different management and computer engineering Institutions for
example [Link]./[Link]./Engineering Colleges/Institutes vocational/ professional courses.
12. Business Academies/Institutes setup by various companies like B.I.T., X.L.R.I., I.I.M.
Lal Bahadur Shashtri Institute of Management etc.
13. Various Universities, Colleges, Institutes imparting technical. vocational training
Institutes both/in public and private sectors.
14. Internet/Websites of different placement agencies.
15. Advertisement published in various Newspapers, periodicals employment News Job
search etc.
Meaning
Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or
works from an external source, often via a tendering or competitive bidding process.

Procurement Function of Personnel Management

Procurement is first operational function of Human resource or personnel management.
Procurement is subjected to procuring and employing people who fits the position and have
necessary skill set, mind set, attitude and knowledge.

Procurement Functions
 Job analysis
 Manpower planning
 Recruitment
 Selection
 Placement
 Induction
 Internal mobility
HUMAN RESOURCE PLANNING
 Human resource planning (HRP) is the continuous process of systematic planning
ahead to achieve optimum use of an organization's most valuable asset—quality
employees.
 It ensures the best fit between employees and jobs while avoiding manpower
shortages or surpluses.
 HRP is an important investment for any business as it allows companies to remain
both productive and profitable.
 It 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.
 It is a process of balancing the people’s supply, including the present and prospective
employees with the potential job openings in the organisation in a given a period of
time.
 It is the system of the organisation to ensure the availability of right number of
people, right kind of people, at right time and right place to attain the organisational
objectives.
 HRP is also known as manpower planning, personnel planning or workforce planning.
Understanding Human Resource Planning
Human resource planning allows companies to plan ahead so they can maintain a steady
supply of skilled employees. That's why it is also referred to as workforce planning. The
process is used to help companies evaluate their needs and to plan ahead to meet those needs.
Definition
According to E.W. Vetter, human resource planning is “the process by which a management
determines how an organisation should make from its current manpower position to its
desired manpower position.
Dale S. Beach has defined it as “a process of determining and assuring that the organisation
will have an adequate number of qualified persons available at the proper times, performing
jobs which meet the needs of the enterprise and which provide satisfaction for the individuals
involved.”
Features of Human Resource Planning:

From the study of various definitions, the following features of human resource planning can

be derived:

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 needs:

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 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.

Objectives of human resource planning

Employee planning is a process used to establish the goals of workers’ roles and to develop
appropriate strategies to achieve the goals of the organization with key objectives of human
resource management.

1. Employee recruitment
When a company hires new employees, it is often the human resource managers who are
responsible for interviewing new applicants to ensure they meet the company’s requirements.
One of the main objectives for human resource managers is to find the right person with the
most well-mannered skills and experience needed for the organization.

Experienced workers will complete the task for the shortest money with the goal of
maximizing profits. Furthermore, finding the best-fit staff is part of the organization’s future
plans and goals and objectives of human resource management.

2. Administrative Manual
Human resources staff are responsible for developing manuals and guides for managers and
managers to follow, whether they are manual training or safety guides for corporate objective
and human resource planning.

One of the main goals of the human resources department is to create guides and manuals that
not only hold true over the years but also provide a designed approach to getting things done
in a given organization. These administrative guides give the company control over how
employees perform.

3. Equality and validity

Another major purpose of the human resources department in planning is to create plans,
regulations that meet local and statewide laws in a given industry. For example, a human
resources department of a food service company must comply with local, state, and federal
laws and regulations to preserve food products and services while preparing administrative
manuals for employees and managers.
4. Systematic human resource plan
Conduct a systematic human resource plan in the sense that it is organized and managed on
the basis of perceived reality with objectives of strategic human resource planning

Identify future opportunities and dangers, which, combined with other important information,
will provide an organization the basis for making better decisions at the present time to
exploit opportunities and avoid risks.
5. Design the desired future and identify ways to achieve it
Although small, each company must review the plan regularly to determine who needs the
talent or who may be able to take on new responsibilities within the organization.

6. Tips for daily planning

Planning is the key to success in professional life. It is about anticipating, visualizing, and
preparing for your challenges that will affect your day-to-day needs and the development of
your work. Planning and not dying in the pursuit is a daunting task that sounds simple, but it
must be combined with reality enough to be effective. Follow these tips from Business Study
Notes and learn how to organize.

7. Meet the organizational needs

Human resources are related to the future needs of the organization in order to recover the
greatest investment in human resources

Pair or adjust employee skills to the needs of the organization, emphasizing the future rather
than the present with strategic human resource management objectives

8. Visualize your big tasks in small pieces

If you are going to do big things, you have to treat them in a special way, like mini-projects.
Follow some practical ideas like breaking them down and sharing them wisely in two days.

9. Organize and study your agenda

Study your agenda in search of great “time-outs” such as meetings, visits, layouts, and some
work. Do not underestimate the time that can snatch you away and thus set realistic
expectations for the future with strategic objectives of hrm.

Factors

Various factors affect human resource planning .These factors can be classified as follows:

1) External Factors:

External factors are those factors which externally influence the [Link] include:
*Legislative Provisions:

Various Provisions relating to the Labour laws, reservations in recruitment, and policies
initiated by the Government, etc. affects HRP

*Level of Economic Development:

Level of human resource development in the country is determined by the level of economic
development. This helps to determine the future supply of human resources.

*Business Environment:

The environment in which the business operates comprise of the external and internal factors
which influence the business. These kinds of environmental factors have an impact on the
total volume of production mix and accordingly the supplies of human resources in the future
are also influenced.

*Technological Advancements:

Technology can be defined as the phenomenon of applying knowledge practically which may
give rise to new inventions. The type of human resources required is also influenced by the
level of technology.

*Global Influences:

Factors which have worldwide impact on the aspects like the supply and demand of
manpower in various regions of the world also influence HRP.

2) Internal Factors:

These are the factors which influence the HRP internally. These factors are summarised as
follows:

*Firm’s Plans and Guidelines:

The company’s strategy for the growth, expansion or diversification dictates the need for
human resources in terms of quantity and quality within the organisation.

*Rules and Regulations for Human Resources:

The specified rules and regulations for the human resources within the organisation regarding
the skills required, the amount of compensation, provisions for the workforce, etc. ,affect
HRP.

*Job Analysis:

It is a comprehensive study of a particular job will reference to the skills required to

accomplish a particular task. The comprehensive study of job helps to determine the type of
skills required in the persons to be recruited within the firm

*Perspective of Timeframe:

HRP of the organisation varies from company to company according to the environment in
which it is operating. If the environment is relatively stable, the company can go for long-
term planning but if the environment in which the company operates is highly dynamic, it is
recommended for the company to opt short-term planning.

*Reliability and credibility of Information:

The effective planning is based on the accurate data about related factors. In every
organisation, HRP is based on the data relating to the factors like capital budget,
organisational structure, level of technology, functional area objectives, job analysis, sources
of recruitment, recruitment plans, etc.

*Policies regarding the operational and production system of Firm:

HRP of a firm is also based on the company’s decision regarding the quantity of goods to be
produced or to be purchased from the market. It decides the number of persons required for
the production of the same within the system.

*Trade Unions:

Various measures taken by the trade unions to safeguard the employees’ interest will have an
impact on the HRP. The decisions regarding working hours, sources for recruitment , etc.,
have an impact on the HRP.

*Phases of Organisational Lifecycle:

Different phases of the organisational lifecycle will have due impact on the HRP of the firm.
In growth stage of the frim, additional recruitment of employees will be required to cope up
with growing demand whereas at the same time in declining stage, employees will be
retrenched to cut the costs. In both the cases, human resource planning is very important.
Process of HRP

Steps to Human Resource Planning

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.
Analysing 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.
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 factors 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.
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?
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.
Importance of Human Resource Planning

After the need for HRP, it is apt to discuss the importance of it. A few are mentioned below.

 It gives the company the right kind of workforce at the right time frame and in right
figures.
 In striking a balance between demand-for and supply-of resources, HRP helps in the
optimum usage of resources and also in reducing the labor cost.
 Cautiously forecasting the future helps to supervise manpower in a better way, thus
pitfalls can be avoided.
 It helps the organization to develop a succession plan for all its employees. In this way,
it creates a way for internal promotions.
 It compels the organization to evaluate the weaknesses and strengths of personnel
thereby making the management to take remedial measures.
 The organization as a whole is benefited when it comes to increase in productivity,
profit, skills, etc., thus giving an edge over its competitors.

LIMITATIONS OF HRP

HRP is not always successful, there are some limitations of HRP which are as follows:

Inaccuracy of forecast:

HRP is dependent on the future prediction of supply and demand of human resources. Hence,
the efficiency of HR planning is based on the correctness of forecasts. In case, the forecast is
in accurate, then the HRP will also not be completely accurate.

Identity Crisis:

Sometimes, managers and the human resource experts in the organisation are unable to
clearly understand the entire process of HRP. Due to this, there exists a problem of identity
[Link] planning cannot be effective until the experts have a clear understanding of
objectives.

Requires Active Involvement of the Top Management:

Top management should be an integral part for the manpower planning. If the top
management does not play an active role, the essential resources and assistance required for
the effective human resource planning cannot be gained in the organisation.

Employee Resistance:

Usually trade unions oppose the manpower planning as they think that it will increase the
burden of work on the employees and govern them by the means of productivity bargaining.
Moreover, according to unions, it will increase unemployment of the unskilled labours.

Technical Issues:
Effective HRP is not an instantaneous task. It takes time to be gradually accepted. Newer
technologies have to be adapted, so as to be in the competition. Occasionally, difficult
technologies are vigorously introduced, because competitors are also using them. This cannot
be fruitful unless HR personnel identify training needs, and it is the HRP which identifies the
employees who are in need of training.

Weak Information System:

Development of successful HRP is based on the credibility of information system. In Indian

industries, the information system is still not well developed. Hence, precise and reliable data
cannot be collected for effective HRP.

Uncertainties:

HRP is not wise to depend entirely on the generalised data collected about the manpower.
Seasonal jobs, absent employees, technological issues are the factors which hamper the
manpower planning.

Costly and Lengthy Activity:

HRP is a costly and time taking activity. There is chance that organisations may not adopt the
system as it will increase the cost burden on the organisation.

Loss of Balance Focus:

Usually focus is given to quantifiable fact of HR planning, i.e, number of individual s leaving
or joining the organisation. Qualitative part is neglected which includes development of
career, self-esteem, and planning skill levels, etc. such uneven focus impacts the efficiency of
HRP.

HR Forecasting

Forecasting—whether it’s business forecasting, human resources forecasting, or financial

forecasting—is the process of using data, insights, analytics, and experience to make
predictions and preparations to meet a specific business need. According to the Institute of
Business Forecasting and Planning,
“whether you realize it or not, virtually every business decision and process is based on a
forecast.”
Human resources or HR forecasting is an important activity for growing businesses. To be
successful, growth-oriented businesses should periodically assess short- and long-term
staffing needs based on projected sales, new product launches, market expansion, as well as
other factors that might affect labor needs. An HR forecast should include the number of
workers needed, the type of skills required to fill any gaps, and any costs or administrative
tasks that will be required to increase or downsize your workforce.
Find out what growth-oriented businesses need to know about HR forecasting and practical
steps you can take to ensure your business is ready to scale the size of its workforce to meet
changing market conditions.
The basics of human resource forecasting
Just as a business plans for financial growth, it’s also important to plan for the growth of a
workforce.
HR forecasting is the process of predicting demand and supply—whether it’s the number of
employees or types of skills that are needed and available to get the job done.
Basic forecasting techniques include:
 Yearly sales or production projections.
 Quantitative assessments, using mathematical calculations, that examine how many
employees are needed and when.
 Qualitative assessments, based on judgment, that determine culture-fit and skill
qualifications or desired personal and professional qualities.
Existing businesses that have been operating for several years can also conduct a trend
analysis to create a staffing plan for the future.
A trend analysis allows business leaders to examine the relationship between past and future
staffing needs using an operational index metric. Newer businesses are advised to use a ratio
analysis to forecast staffing needs. Using this technique, business leaders examine causal
factors such as sales volume to predict staffing needs.
Benefits of HR forecasting
To drive business growth and success, you need the right talent behind you. HR forecasting
enables your business to determine skill requirements, evaluate demand, assess labor supply,
understand workforce needs, and develop a strategy to meet your goals and growth
objectives. In addition to effectively balancing labor demand and supply, HR forecasting
emboldens your business to:

Develop effective budgets - By determining your workforce requirements, you also put your
business in a better position to forecast costs. To meet your business goals, you may need to
hire seasonal workers or increase salary levels to retain top talent. Benefits costs may
increase as well. HR forecasting provides insight into those predicted workforce expenses so
you can accurately plan for overall human capital costs.
Make more detailed workforce predictions - Beyond helping your business meet evolving
needs for new skills, production, and productivity, HR forecasting also emboldens you to
gain deeper insight into your workforce. HR forecasting and analysis helps you predict
turnover related to retirement or market competition. It can also help you analyze how
business strategy changes will impact your workforce including production of a new product,
change in target audience, or the introduction of new employment or manufacturing
regulations.
Forecast HR needs regularly –
Business conditions are constantly changing, which means your workforce is too. To
effectively meet your HR needs, it’s important to review talent requirements on an ongoing
basis. For example:
If your business manufactures a product, labor needs will change as sales rise and fall. Your
business may see seasonal demand for that product, or other changes in consumer demand. In
this case, HR and sales forecasting should work together to identify sales spikes or declines
that will affect production and labor needs. Analyzing these forecasts regularly can minimize
the risk your business might fall behind on production and order fulfillment, produce too
much inventory, or pay a bloated workforce.

HR Demand forecast
Demand forecasting is the process of estimating the future quantity and quality of people
required. The basis of the forecast must be the annual budget and long-term corporate plan,
translated into activity levels for each function and department.
In a manufacturing company, the sales budget would be translated into a production plan
giving the number and type of products to be produced in each period. From this information,
the number of hours to be worked by each skilled category to make the quota for each period,
would be computed. Once the hours are available, determining the quality and quantity of
personnel will be the logical step.
Demand forecasting must consider several factors—
both external as well as internal.
Among the external factors are competition (foreign and domestic), economic climate, laws
and regulatory bodies, changes in technology, and social factors.
Internal factors include budget constraints, production levels, new products and services,
organisational structure, and employee separations. Demand forecasting is common among
organisations, though they may not do personnel-supply forecasting
Demand forecasting is the process of estimating the quantity and quality of people required to
meet future needs of the organisation.
There are several good reasons to conduct demand forecasting.
It can help:
(i) quantify the jobs necessary for producing a given number of goods, or offering a
given amount of services;
(ii) determine what staff-mix is desirable in the future;
(iii) assess appropriate staffing levels in different parts of the organisation so as to avoid
unnecessary costs;
(iv) prevent shortages of people where and when they are needed most; and
(v) monitor compliance with legal requirements with regard to reservation of jobs.
Forecasting Techniques
Forecasting techniques vary from simple to sophisticated ones. Before describing each
technique, it may be stated that organisations generally follow more than one technique.
The techniques are:
1. Managerial judgement
2. Ratio-trend analysis
3. Regression analysis
4. Work study techniques
5. Delphi technique
6. Flow models
7. Others

Managerial Judgement
This technique is very simple. In this, managers sit together, discuss and arrive at a figure
which would be the future demand for labour. The technique may involve a ‘bottom-up’ or a
‘top-down’ approach. In the first, line managers submit their departmental proposals to top
managers who arrive at the company forecasts. In the ‘top-down’ approach, top managers
prepare company and departmental forecasts. These forecasts are reviewed with departmental
heads and agreed upon. Neither of these approaches is accurate—a combination of the two
could yield positive results. In the ‘bottom-up’ and ‘top-down’ approaches, departmental
heads are provided with broad guidelines. Armed with such guidelines, and in consultation
with the HRP section in the HRM department, departmental managers can prepare forecasts
for their respective departments. Simultaneously, top HR managers prepare company
forecasts. A committee comprising departmental managers and HR managers will review the
two sets of forecasts, arrive at unanimity, which is then presented to top managers for their
approval. this technique is used in smaller organisations or in those companies where
sufficient data-base is not available.
Ratio-trend Analysis
This is the quickest forecasting technique. Ratio trend analysis involves studying past ratios
and forecasting future ratios making some allowances for changes in the organisation or its
methods
Regression Analysis
This is similar to ratio-trend analysis in that forecast is based on the relationship between
sales volume and employee size. However, regression analysis is more statistically
sophisticated. A firm first draws a diagram depicting the relationship between sales and
workforce size. It then calculates regression line—a line that cuts right through the center of
the points on the diagram. By observing the regression line, one can find out number of
employees required at each volume of sales
Work-study Techniques
Work-study techniques can be used when it is possible to apply work measurement to
calculate the length of operations and the amount of labour required. The starting point in a
manufacturing company is the production budget, prepared in terms of volumes of saleable
products for the company as a whole, or volumes of output for individual departments. The
budgets of productive hours are then compiled using standard hours for direct labour. The
standard hours per unit of output are then multiplied by the planned volume of units to be
produced to give the total number of planned hours for the period. This is then divided by the
number of actual working hours for an
individual operator to show the number of operators required. Allowance will have to be
made for absenteeism and idle time.
Work-study techniques for direct workers can be combined with ratiotrend analysis to
forecast for indirect workers, establishing the ratio between the two categories. The same
logic can be extended to any other category of employees.
Delphi Technique
It is Named after the ancient Greek Oracle at the city of Delphi, the Delphi technique is a
method of forecasting personnel needs. It solicits estimates of personnel needs from a group
of experts, usually managers. The HRP experts act as intermediaries, summarise the various
responses and report the findings back to the experts. The experts are surveyed again after
they receive this feedback. Summaries and surveys are repeated until the experts’ opinions
begin to agree. The agreement reached is the forecast of the personnel needs. The
distinguishing feature of the Delphi technique is the absence of interaction among experts
Flow Models
Flow models are very frequently associated with forecasting personnel needs. The simplest
one is called the Markov model. In this technique, the forecasters will:
1. Determine the time that should be covered. Shorter lengths of time are generally more
accurate than longer ones. However, the time horizon depends on the length of the HR plan
which, in turn, is determined by the strategic plan of the organisation.
2. Establish categories, also called states, to which employees can be assigned. These
categories must not overlap and must take into account every possible category to which an
individual can be assigned. The number of states can neither be too large nor too small.
3. Count annual movements (also called ‘flows’) among states for several time periods. These
states are defined as absorbing (gains or losses to the company) or non-absorbing (change in
position levels or employment status). Losses include death or disability, absences,
resignations and retirements. Gains include hiring, rehiring, transfer and movement by
position level.
4. Estimate the probability of transitions from one state to another based on past trends.
Demand is a function of replacing those who make a transition. There are alternatives to the
simple Markov model. One, called the semiMarkov, takes into account not just the category
but also the tenure of individuals in each category. After all, likelihood of movement
increases with tenure. Another method is called the vacancy model, which predicts
probabilities of movement and number of vacancies. While the semi-Markov model helps
estimate movement among those whose situations and tenure are similar, the vacancy model
produces the best results for an organisation. Markov analysis is advantageous because it
makes sense to decision makers. They can easily understand its underlying assumptions.
They are, therefore, likely to accept results.
The disadvantages include:
(i) heavy reliance on past-oriented data, which may not be accurate in periods of
turbulent change, and
(ii) accuracy in forecasts about individuals is sacrificed to achieve accuracy across
groups.

Other Forecasting Techniques

New venture analysis will be useful when new ventures contemplate employment planning.
This technique requires planners to estimate HR needs in line with companies that perform
similar operations.
For example, a petroleum company that plans to open a coal mine can estimate its future
employment needs by determining employment levels of other coal mines. As in other fields,
mathematical models are used in human need forecasting too.
As stated earlier, organisations follow more than one technique for forecasting their peoples’
needs. L&T, for example, follows ‘bottom-up’ of management judgement and work-study
techniques for demand forecasting. Forecasting process in L&T begins during November of
every year. The department heads prepare their personnel estimates (based on details of
production budget supplied to them) and submit the estimates to the respective personnel
managers (L&T has 11 plants in our country). The personnel heads will review the estimates
with the departmental heads and will send final reports to the Mumbai office where a
centralised HR department is located. Estimates are reviewed by the HR department and final
figures are made known to those personnel managers who initiate steps to hire the required
number of people in the following year. The forecast is made for a quinquennium, but is
broken down to yearly requirements.
JOB ANALYSIS
* In order to achieve effective HRP, the duties involved and the skills required for performing
all the jobs in an organisation have to be taken care of. This knowledge is gained through the
analysis of work, popularly called job analysis.
*job analysis, it is useful to understand the meaning of job itself.
*Jobs can take the form of wage employment, self-employment, and farming. They can be
formal or informal.
“Jobs are the cornerstone of economic and social development. Infact, development happens
through jobs. People work their way out of poverty and hardship through better livelihoods.
Economies grow as people get better at what they do, as they move from farms to firms, and
as more productive jobs are created and less productive ones disappear. Societies flourish as
jobs bring together people from different ethnic and social backgrounds and nurture a sense
of opportunity. Jobs are thus transformational—they can transform what we earn, what we
do, and even who we are.
A synonym for job is work. Work is understood as physical and mental activity that is carried
out at a particular place and time, according to instructions, in return for money.
If the house-wife herself mopps and mows, it is not work, as she is not doing that for money.
But, if a servant is appointed and paid money for doing the household chores, it becomes
work.
Job analysis is the process of collecting job related information. Such information helps
in the preparation of job description and job specification.
Job analysis refers to the process of collecting information about a job. It involves collection
of information that should include knowledge, skill and ability (KSA) the incumbent should
possess to discharge a job effectively.
Knowledge may be understood as the extent to which the job holder is familiar with his or
her job.
Skill refers to the specific capability to operate a machine/system.
This also includes information about the use of tools, equipment and machinery. Abilities
refer to the physical and mental capacities needed to perform tasks not requiring the use of
tools, equipment or machiner
Types of Information to be Collected by Job Analysis
Work Activities
• Job-oriented activities (description of the work activities performed, expressed in “job”
terms, usually indicating what is accomplished, such as galvanising, weaving, cleaning, and
so on; sometimes such activity descriptions also indicate how, why and when a worker
performs an activity; usually the activities are those involving active human participation, but
in certain instances they may characterise machine or system functions).
• Work activities/processes.
• Procedures used.
• Activity records (such as films).
• Personal accountability/responsibility.
Worker-Oriented Activities
• Human behaviours performed in work (such as sensing, decision making, performing
physical actions or communicating).
• Elemental motions (such as those used in time and motion studies).
• Personal job demands (human expenditures involved in work, such as energy expenditure).
Machines, Tools, Equipment, and Work Aids Used
• Computers (hardware and software).
• Safety equipment (goggles and groves).
• Office tools (pone, fax, and books).
Job-Related Tangibles and Intangibles
• Materials processed.
• Products made.
• Knowledge dealt with or applied (such as law or chemistry).
• Services rendered (such as laundering or repairing).
Work Performance
• Work measurements (i.e., time taken)
. • Work standards.
• Error analysis.
• Other aspects.
Job Context
• Physical working conditions
• Work schedule.
• Organised context.
• Social context.
• Incentives (financial and non-financial).
Personal Requirements
• Job-related knowledge and/or skills (such as education, training, or work experience
required).
• Personal attributes (such as aptitudes, physical characteristics, personality, interests
required).
BENEFITS OF JOB ANALYSIS:

job analysis has its impact on all functions of HRM. Job analysis, if properly done, will
enhance the effectiveness of all HR activities.
Specifically, job analysis benefits an organisation in the following ways:
• Laying the foundation for human resource planning.
• Laying the foundation for employee hiring
• Laying the foundation for training and development.
• Laying the foundation for performance appraisal.
• Laying the foundation for salary and wage fixation.
• Laying the foundation for safety and wealth

PROCESS OF JOB ANALYSIS

What is important is that there should be fit between job demands (job description) and
abilities required to discharge the tasks (job specification). Any mismatch is likely to result in
job dissatisfaction that carries dysfunctional consequences like low productivity, absenteeism
and turnover.

Job analysis is useful for several purposes, such as personnel planning, performance
appraisal and the like.
The process of job analysis results in two sets of data:
(i) Job description,
 Job description, indicates what all a job involves— tasks and responsibilities taged on
to a job, job title, duties, machines, tools and equipment, working conditions and
hazards form part of job description.

(ii) Job specification

The capabilities that the job-holder should possess form part of job specification.
Education, experience, training, judgement, skills, communication skills and the like
are a part of job specification.

*strategic Choices

With regard to job analysis, an organisation is required to make atleast five choices:
1. The extent of employee involvement in job analysis.
2. The level of details of the analysis.
3. Timing and frequency of analysis.
4. Past-oriented versus future-oriented job analysis.
5. Sources of job data.

*Employee Involvement

As was stated above, job analysis involves collecting job-related information-duties,

responsibilities, skills and knowledge required to perform the jobs. It may be stated that in
job analysis, information about a job is collected and not about the incumbent, however, the
job holder is consulted. Employees are often asked to supply vital information about the
contents of job, given their familiarity with it.
To what extent employees need to be involved is a debatable point. Too much involvement
may result in bias in favour of a job, as the employee is likely to inflate the duties and
responsibilities of his jobs, just to make it appear more important than it actually is. On the
other hand, if employees are not involved or only minimally involved, they tend to become
suspicious about the motives behind the job analysis. Besides, lack of involvement from
employees may lead to inaccurate and incomplete information. The extent to which
employees are involved depends upon the needs of both the organisation and the employees.
However, the organisation may also be concerned about the employees’ reactions to having
their jobs analysed. In order to prevent employee dissatisfaction, uncertainty and anxiety,
firms should communicate the reasons for conducting the job analysis and keep the
employees informed about the job-analysis process.

When and How Often

Another strategic choice relates to the timing and frequency of conducting job analysis. Job
analysis is generally conducted when
(i) an organisation is newly established and the job analysis is initiated for the first time;
(ii) a new job is created in an established company;
(iii) a job is changed significantly due to change in technology, methods, procedures or
systems;
(iv) the organisation is contemplating a new remuneration plan; or
(v) the employees or managers feel that there exist certain inequities between job
demands and the remuneration it carries.

*Information Gathering

This step involves decisions on three issues, viz;

1. What type of data is to be collected?
2. What methods are to be employed for data collection?
3. Who should collect the data? So far as the type of data to be collected is concerned, it may
be stated that all details about the job need to be collected.
The type of data, however, depends on the end use of the information, as also on the time
and budget constraints.

Information processing
Once the job information has been collected, it needs to be processed, so that it would be
useful in various personnel functions. Specifically, job-related data would be useful to
prepare job description and job specification

Job Description

Job description implies objective listing of the job title, tasks, duties and responsibilities
involved in a job. Job specification, on the other hand, involves listing of employee
qualifications, skills and abilities. These specifications are needed to do the job satisfactorily.
Often, practitioners make no distinction between job description and job specification. The
two terms are used interchangeably.
Job Description

Job description is prepared on the basis of data collected through job analysis. Job description is a
functional description of the contents what the job entails. It is a narration of the contents of a job. It is
a description of the activities and duties to be performed in a job, the relationship of the job with other
jobs, the equipment and tools involved, the nature of supervision, working conditions and hazards of
the job and so on. All major categories of jobs need to be spelled out in clear and comprehensive
manner to determine the qualifications and skills required to perform a job. Thus, job description
differentiates one job from the other. In sum, job description is a written statement of what a job
holder does, how it is done, and why it is done.

Purposes of Job Description.

Job description is done for fulfilling the following purposes:

 Grading and classification of jobs
 Placement and Orientation of new employees
 Promotions and transfers
 Outlining for career path
 Developing work standards
 Counselling of employees
 Delimitation of authority

Job Specification

While job description focuses on the job, job specification focuses on the person i.e, the job holder.
Job specification is a statement of the minimum levels of qualifications, skills, physical and other
abilities, experience, judgement and attributes required for performing job effectively. In other words,
it is a statement of the minimum acceptable qualifications that an incumbent must possess to perform
a given job. It sets forth the knowledge, skills and abilities required to do the job effectively. Job
specification specifies the physical, psychological, personal, social and behavioural characteristics of
the job holders.

Usages of Job Specification:

The uses of job specification include:
 Personnel planning
 Performance appraisal
 Hiring
 Tranining and development
 Job evaluation and compensation Job Analysis and Design
 Health and safety
 Employee discipline
 Work scheduling
 Career planning

METHODS OF COLLECTING

The methods of collecting job-related data are—

(i) observational method,
(ii) interviews,
(iii) questionnaire,
(iv) checklists,
(v) technical conferences, and
(vi) Diary

Observation

In this method, the job analyst carefully observes the job holder at work and records what he
or she does, how he or she does, and how much time is needed for completion of a given task.
This method has both positive as well as negative sides. On the positive side, the method is
simple, and the data collected are accurate because of direct observation. On the flip side, it
may be told that the method is time consuming and inapplicable to jobs which involve high
proportions of unobservable mental activities and those which do not have complete and
easily observable job cycles. The analyst needs to be trained to carefully observe and record
the competence of a job incumbent. And training means additional cost. Considering all
these, the observation method may be used for analysing repetitive, short-cycle, unskilled and
semi-skilled jobs. Better results will be available when the observation method is used along
with other method(s) of job analysis.
Interview
In this, the analyst interviews the job holder and his/her supervisor to elicit information about
the job. Usually, a structured interview form is used to record the information. During the
interview, the analyst must make judgements about the information to be included and its
degree of importance. The interview method is time consuming. The time problem will be
compounded if the interviewer talks with two or more employees doing the same job.
Furthermore, professional and managerial jobs are more complicated to analyse and usually
require a longer interview. Then, there is the problem of bias. Bias on the part of the analyst
and the job holder may cloud the accuracy and objectivity of the data obtained. The interview
method has one positive feature, that is, it involves talking to the job holders who are in a
good position to describe what they do, as well as the qualifications needed to perform their
duties in a competent manner. The effectiveness of the interview method depends on the
interviewer and on the ability of the job holder to make meaningful responses.

Questionnaire

Job holders fill in the given structured questionnaires, which are then approved by their
supervisors. The filled-in questionnaires offer enough data on jobs. Standard questionnaires
are available or they may be prepared for the purpose by the analysts. Standard or prepared,
questionnaires should contain the following basic information:
1. The job title of the job holder;
2. The job title of the job holder’s manager or supervisor;
3. The job titles and numbers of the staff reporting to the job holder (best recorded by means
of an organisation chart);
4. A brief description (one or two sentences) of the overall role or purpose of the job;
5. A list of the main tasks or duties that the job holder has to carry out; as appropriate, these
should specify the resources controlled, the equipment used, the contracts made and the
frequency with which the tasks are carried out.
Checklists
A checklist is similar to a questionnaire, but the response sheet contains fewer subjective
judgements and tends to be either-yes-or-no variety. Checklists can cover as many as 100
activities and job holders tick only those tasks that are included in their jobs. 13 Preparation
of a checklist is a challenging job. The specialists who prepare the list must collect all
relevant information about the job concerned. Such information can be obtained by asking
supervisors, industrial engineers, and others familiar with the work. When a checklist has
been prepared for a job, it is sent to the job holder. The job holder is asked to check all listed
tasks that he/she performs and indicate the amount of time spent on each task as well as the
training and experience required to be proficient in each task. He/she may also be asked to
write any additional tasks he/she performs which is not stated in the checklist. The checklist,
thus answered, will be the basis for tabulating job-related data. One advantage of the
checklist method is that it is useful in large firms that have a large number of people assigned
to one particular job. Also, this technique is amenable to tabulation and recording on
electronic dataprocessing equipment. The technique, however, is costly and, hence, not
suitable for small firms.

Technical Conference Method

In this method, services of supervisors who possess extensive knowledge about a job are
used. It is from these experts that details about the job are obtained. Here, a conference of
supervisors is used. The analyst initiates discussion which provides details about jobs.
Though a good method of data collection, this method lacks accuracy because the actual job
holders are not involved in collecting information.

Diary Method

This method requires the job holders to record in detail their activities each day. If done
faithfully, this technique is accurate and eliminates errors caused by memory lapses the job
holder makes while answering questionnaires and checklists. This method, however, is time
consuming because the recording of tasks may have to be spread over a number of days. It
also engages considerable time of a production worker. No wonder, the diary method is not
used much in practice.
The methods described above are not to be viewed as mutually exclusive. None of them is
universally superior. The best results can be obtained by a combination of these methods.

PROBLEMS WITH JOB ANALYSIS

Certain problems crop up while conducting job analysis.

The major ones are described below:

Support from Top Management

In most cases, top management support is missing. The top management should make it clear
to all employees that their full and honest participation is extremely important for the process.
This message is, often, not communicated.

Single Means and Source

This relates to the defect in the process of job analysis. There are many proven methods and
sources of collecting data. All too often, analysts rely on only one of the methods when a
combination of two methods might provide a better data.

No Training or Motivation

This also relates to the defect in the job-analysis process. Job holders are a great source of
information about the job. But they are not trained or motivated to generate quality data for
job analysis. Further, job holders are rarely made aware of the importance of the data, and are
never rewarded for providing accurate data.

Activities may be Distorted

Where training and preparedness do not exist, job holders tend to submit distorted data, either
intentionally or inadvertently. For example, employees are likely to speed up, if they know
they are being watched.
JOB DESIGN
The logical sequence to job analysis is job design. Job analysis, as was explained earlier,
provides job-related data as well as the skills and knowledge expected of the incumbent to
discharge the job.
Job design, then, involves conscious efforts to organise tasks, duties, and responsibilities into
a unit of work to achieve certain objectives.
Thus, job design involves three steps:
1. The specification of individual tasks,
2. The specification of the method(s) of performing each task, and
3. The combination of tasks into specific jobs to be assigned to individuals.
Job design involves conscious efforts to organise tasks, duties and responsibilities into a
unit of work to achieve certain objectives. Job design follows job analysis.
The key to successful job design lies in balancing the requirements of the organisation and
the job holder.
What is job design?
job analysis provides job-related data as well as the skills and knowledge required for the
incumbent to perform the job. A better job performance also requires deciding on sequence of
job contents. This is called ‘job design’.
Job design is a logical sequence to job analysis. In other words, job design involves
specifying the contents of a job, the work methods used in its performance and how the job
relates to other jobs in the organisation.

FACTORS AFFECTING JOB DESIGN

Job design is not an exclusive one. It affects and is also affected by various factors.

All the factors that affect job design are broadly classified into three categories:
1. Organisational factors
2. Environmental factors
3. Behavioural factors.

Organisational Factors
The various factors under organisational factors include task features, work flow,
ergonomics, work practices, etc.
A brief description of these follows:

Task Features:

A job design involves a number of tasks performed by a group of workers. Further, each task
consists of three internal features, namely, (i) planning, (ii) executing, and (iii) controlling.
An ideal job design needs to integrate all these three features of tasks to be performed.
Work Flow:
The very nature of a product influences the sequences of jobs, i.e., work flow. In order to
perform work in an effective and efficient manner, the tasks involved in a job need to be
sequenced and balanced. Consider the car as a product. The frame of a car needs to be built
before the fenders, and similarly the doors will be built later . Thus, once the sequence of
tasks are determined, then the balance between tasks is established.

Ergonomics:

Ergonomics refers to designing and shaping job in such a manner so as to strike a fit between
the job and the job holder. In other words, jobs are designed in such a way to match job
requirements with worker’s physical abilities to perform a job effectively.

Work Practices:

Practice means a set way of doing work based on tradition or collective wishes of workers.
While designing jobs, these work practices need to be taken into consideration. Evidences are
available to state that ignoring work practices can result in undesirable consequences.
F.W. Taylor 16 determined work practices by time and motion study. Such determinations
requires repeated observations. However, the accuracy of the determined work practice is
subject to distortions depending on the competence of the observer and deviations from the
normal work cycle. Another limitation of this method is its applicability only when
production is underway

Environmental Factors

Environmental factors include social and cultural expectations, and employee ability and
availability. These are discussed one by one.

Social and Cultural Expectations:

Gone are days when workers were ready to do any job under any working conditions. But,
with increase in their literacy, education, knowledge, awareness, etc. have raised their
expectations from the jobs. In view of this, jobs for them need to be designed accordingly. It
is due to this reason that the job design now is characterised by the feautres like work hours,
rest breaks, vaocations, religious beliefs, etc. Disregarding these social expectations can
create dissatisfaction, low motivation, high turnover and low quality of working life.

Employee Ability and Availability:

The various task elements should be included in accordance with the employee abilities and
capabilities. Incorporating job elements beyond the employee abilitiy will be causing
mismatch between the job and the job holder. Therefore, due consideration should be given to
employee ability while determining job design. Henry Ford did follow it. He made job design
simple and requiring little training for assembly line considering that most potential workers
lacked any automobile-making experience.

Behavioural Factors
Behavioural factors are based on the premise that people are influenced to work to satisfy
their needs. Higher the need, more one finds job challanging. One’s behaviour at work is
governed by certain factors as discussed below:

Autonomy:

Autonomy means freedom to control one’s actions/responses to the environment. Research

studies report that jobs that give autonomy to workers also increase sense of responsibility
and self esteem. On the contrary, absence or lack of autonomy can cause workers apathy to
jobs and, in turn, low and poor performance.

Use of Abilities:

Workers perform jobs effectively that offer them opportunity to make use of their abilities.
Workers find such jobs as interesting and challanging. Feedback: Job design shuld be
determined in such a way that workers receive meaningful feedback about what they did.
Feedback helps workers improve their performance.

Variety:

Lack of variety, or say, doing the same work, causes boredom which, in turn, leads to
fatigue. Fatigue causes mistakes and accidents. But, by incorporating elements of variety in
the job, boredom, fatigue and mistakes can be avoided and the job can be done in an effective
and efficient manner.

METHODS/TECHNIQUES OF JOB DESIGN

How to design jobs?

Jobs can be designed to range from very simple to highly complex depending on the use of
the worker’s skill
1. Work Simplification
2. Job Rotation
3. Job Enrichment
4. Job Enlargement
Work Simplification

Under this method, the job is simplified by breaking it down into small sub-parts. Then, each
part of the job is assigned to a worker who does the same task over and over again. This
enables the worker to gain proficiency and deftness in doing the repetitive task. This
increases worker’s productivity, on the one hand, and, in turn, profits, on the other. The
training costs of so simplified jobs are virtually nil because very low level of skill is required
to do these simplified jobs. However, due to the repetitive job, workers feel boredom. They
tend to remain absent frequently. Boredom also leads to mistakes and accidents. On the
whole, the quality and quantity of output gets adversely affected. Thus, the company may not
always reap the benefits of task specialization due to work simplification.

Job Rotation

One solution to boredom, as seen in work simplification, is job rotation’. Job rotation implies
the moving of employees from job to job without any change in the job. In case of job
rotation, an employee performs different jobs, but of the same nature.
The advantages of job rotation are:
(i) It removes boredom
(ii) It broadens employee’s knowledge and skill.
(iii) Employees become competent in several jobs rather than only one.
However, job rotation suffers from certain disadvantages also.
(i) Frequent shifting of employees across the jobs causes interruption in the job routine.
(ii) Employees may feel alienated when they are rotated from job to job.
(iii) The employees who look for more challanging assignments may still feel frustrated.

Job Enlargement
Job enlargement involves adding more tasks to a job. This is a horizontal expansion in a job.
By adding more tasks to job, job enlargement expands job scope and gives variety of tasks to
the job holder. For example, a mail-sorter’s job could be enlarged to include physically
delivering the mail to the various departments in the organization. Job enlargement reduces
boredom and monotony by providing the employee more variety of tasks in the job. Thus, it
helps increase interest in work and Job Analysis and Design efficiency by expanding the
scope of job, workers found benefits such as more satisfaction, enhanced customer service,
and less errors. It is said that job enlargement removes boredom and contributes to employee
motivation. However, the same is not validated in practice. Even with job enlargement, the
job could become boring to employee after a time especially when the job was already
monotonous . That’s why Frederick Herzberg tempted to say that job enlargement is simply
“adding zero to zero”, meaning that “One set of boring tasks (zero) is simply added to
another set of boring tasks (zero)”. That is very poossibly the reasons why job enlargement is
usually resisted by employees.

Job Enrichment
Another approach to designing motivating jobs is job enrichment. Reasons for job enrichment
being installed are varied. As seen earlier, the excessive job specialisation (through job
rotation) have been dehumanising the work by making the worker’s job routine, repetitive
and removing all challenges from it. As such, human capabilities are not being fully utilised
under such conditions and it is creating frustration among the workers and alienating them
from their jobs. Moreover, workers today are better educated and higher paid. Job enrichment
involves adding motivating factors to job.
Thus, job enrichment is a vertical expansion of a job by adding more responsibility and
freedom to do it. Fredrick Herzberg describe job enrichment as that type of improvement in
the context of the job which may give a worker more of a challenge, more of a complete task,
more responsibility, more opportunity for growth, and more chance to contribute his ideas.
Job enrichment increases job depth, which refers to the degree of control employees have
over their work. Job enrichment can improve the quality of work output, employee
motivation, and satisfaction.

There is no single way of enriching a job.

The technology and the circumstances dictate which techniques or combination of techniques
could be appropriate.

Some of the important techniques followed for enriching job are:

1. Increasing responsibilities of the employees by adding variety of tasks.
2. Assigning the employee a complete natural unit of work i.e., reducing task specialisation.
3. Allowing the employee to set his own standards.
4. Making the employee directly perform for his work.
5. Encouraging the participation of employees in planning work, innovating new techniques
and reviewing new results.
6. Introducing new and more difficult and challenging tasks not previously assinged to and
handled by the employee.
7. Removing some controls from while ensuring that individuals are clearly accountable for
achieving standards.
8. Allowing the employee to make crisis decision in problem situations rather than relying on
the boss.

RECRUITMENT
Recruitment is the generating of applications or applicants for specific positions to be filled
up in the organisation.
It is a process of searching for and obtaining applicants for jobs so that the right people in
right number can be selected.
In the words of Werther and Davis, “Recruitment is the process of finding and attracting
capable applicants for employment. The process begins when new recruits are sought
and ends when their applications are submitted. The result is a pool of applicants from
which new employees are selected”.

FACTORS AFFECTING RECRUITMENT

There are a number of factors that affect recruitment.
These are broadly classified into two categories:
1. Internal Factors
2. External Factors
Internal Factors
The internal factors also called endogenous factors are the factors within the organisation that
affect recruiting personnel in the organisation. Some of these are mentioned here.
[Link] Factors:

As demographic factors are intimately related to human beings, i.e., employees, these
have profound influence on recruitment process. Demographic factors include sex,
age, literacy, economic status etc.

[Link] Policy:

The recruiting policy of the organisation i.e., recruiting from internal sources (from
own employees) and from external sources (from outside the organisation) also
affects recruitment process. Generally, recruiting through internal sourcing is
preferred, because own employees know the organisation and they can well fit into
the organisation’s culture.

3. Image of Organisation:
Image of organisation is another internal factor having its influence on the recruitment
process of the organisation. Good image of the organisation earned by a number of
overt and covert actions by management, helps attract potential and competent
candidates. Managerial actions like good public relations, rendering public services
like building roads, public parks, hospitals and schools help earn image or goodwill
 for the organisation. That is why blue chip companies attract large number of
applications.

[Link] of Job:
Just as image of organisation affects recruitment, so does the image of a job also.
Better remuneration and working conditions are considered the characteristics of good
image of a job. Besides, promotion and career development policies of organisation
also attract potential candidates.
External Factors
Like internal factors, there are some factors external to organisation which have their
influence on recruitment process.
Some of these are given below:

1. Size of the Organisation:

The size of an organisation affects the recruitment process. Experience suggests that
larger organisations find recruitment less problematic than organisations with smaller
in size.

[Link] Market:
Labour market conditions i.e., supply and demand of labour is of particular
importance in affecting recruitment process. For example, if the demand for a specific
skill is high relative to its supply, recruiting employees will involve more efforts. On
the contrary if supply is more than demand for a particular skill, recruitment will be
relatively easier. In this context, the observation made by I I PM 5 in regard to labour
market in India is worth citing: “The most striking feature in the Indian Labour
market is the apparent abundance of labour – yet the ‘right type’ of labour is not too
easy to find”.
2. Unemployment Situation:

The rate of unemployment is yet another external factor having its influence on the
recruitment process. When the unemployment rate in a given area is high, the
recruitment process tends to be simpler. The reason is not difficult to seek. The
number of applicants is expectedly very high which makes easier to attract the best
qualified applicants. The reverse is also true. With a low rate of unemployment,
recruiting process tends to become difficult.

3. Labour Laws:

There are several labour laws and regulations passed by the Central and State
Governments that govern different types of employment. These cover working
conditions, compensation, retirement benefits, and safety and health of employees in
 industrial undertakings. Child Labour (Prohibition and Regulation) Act, 1986, for
example, prohibits employment of children in certain employments. Similarly, several
other acts such as Employment Exchange (Compulsory Notification of Vacancies)
Act, 1959, the Apprentices Act, 1961; the Factory Act, 1948 and the Mines Act, 1952
deal with recruitment.

4. Legal Considerations:

Another external factor is legal considerations with regard to employment.

Reservation of jobs for the scheduled castes, scheduled tribes, and other backward
classes (OBCs) is the popular example of such legal consideration. The Supreme
Court of India has given its verdict in favour of 50 per cent of jobs and seats. This is
so in case of admissions in the educational institutions also.

SOURCES OF RECRUITMENT
The various sources of recruitment are classified into two broad categories, namely:
1. Internal sources
2. External sources

Internal Sources

Present Employees:

Promotions and transfers from among the present employees can be a good source of
recruitment. Promotion implies upgrading of an employee to a higher position carrying
higher status, pay and responsibilities. Promotion from among the present employees is
advantageous because the employees promoted are well acquainted with the organisational
culture, they get motivated, and it is cheaper also. Promotion from among present employees
also reduces the requirement for job training . However, the disadvantage lies in limiting the
choice to a few people and denying hiring of outsiders who may be better qualified and
skilled. Furthermore, promotion from among present employees also results in inbreeding
which creates frustration among those not promoted.

Transfer refers to shifting an employee from one job to another without any change in the
position/post, status and responsibilities. The need for transfer is felt to provide employees a
broader and varied base which is considered necessary for promotions. Job rotation, as
discussed in the previous chapter, involves transfer of employees from one job to another on
the lateral basis.

Former Employees:
Former employees is another source of applicants for vacancies to be filled up in the
organisation. Retired or retrenched employees may be interested to come back to the
company to work on a part-time basis. Similarly, some former employees who left the
organisation for any reason, may again be interested to come back to work. This source has
the advantage of hiring people whose performance is already known to the organisation.

Employee Referrals:
This is yet another internal source of recruitment. The existing employees refer their family
members, friends and relatives to the company as potential candidates for the vacancies to be
filled up in the organisation. This source serves as one of the most effective methods of
recruiting people in the organisation because employees refer to those potential candidates
who meet the company requirements known to them from their own experience. The referred
individuals are expected to be similar in type in terms of race and sex, for example, to those
who are already working in the organisation.

Previous Applicants:

This is considered as internal source in the sense that applications from the potential
candidates are already lying with the organisation. Sometimes, the organisations contact
through mail or messenger these applicants to fill up the vacancies particularly for unskilled
or semiskilled jobs.

Internal Source

Let us try to evaluate the internal source of recruitment. Obviously, it can be done in terms of
its advantages and disadvantages.
The same are spelled out as follows:

Advantages :
The advantages of the internal source of recruitment include the following:
1. Familiarity with own Employees: The organisation has more knowledge and familiarity
with the strengths and weaknesses of its own employees than of strange and unknown
outsiders.
2. Better Use of the Talent: The policy of internal recruitment also provides an opportunity to
the organisation to make a better use of the talents internally available and to develop them
further and further.
3. Economical Recruitment: In case of internal recruitment, the organisation does not need to
spend much money, time and effort to locate and attract the potential candidates. Thus,
internal recruitment proves to be economical, or say, inexpensive.
4. Improves Morale: This method makes employees sure that they would be preferred over
the outsiders as and when vacancies will be filled up in their organisation.
5. A Motivator: The promotion through internal recruitment serves as a source of motivation
for employees to improve their career and income. The employees feel that organisation is a
place where they can build up their life-long career. Besides, internal recruitment also serves
as a means of attracting and retaining competent employees in the organisation.

Disadvantages:

The main drawbacks associated with internal recruitment are as follows:

1. Limited Choice: Internal recruitment limits its choice to the talent available within the
orgnisation. Thus, it denies the tapping of talent available in the vast labour market outside
the organisation. Moreover, internal recruitment serves as a means for “inbreedng”, which is
never healthy for the future of the organisation.
2. Discourages Competition:
In this system, the internal candidates are protected from competition by not giving
opportunity to otherwise competent candidates from outside the organisation. This, in turn,
develops a tendency among the employees to take promotion without showing extra
performance.
3. Stagnation of Skills: With the feeling that internal candidates will surely get promoted,
their skill in the long run may become stagnant or obsolete. If so, the productivity and
efficiency of the organisation, in turn, decreases.
4. Creates Conflicts: Conflicts and controversies surface among the internal candidates,
whether or not they deserve promotion.

External Sources
External sources of recruitment lie outside the organisation. These outnumber internal
sources. The main ones are listed as follows:
1. Employment Exchanges:
The National Commission on Labour (1969) observed in its report that in the pre-
Independance era, the main source of labour was rural areas surrounding the industries .
Immediately after Indpendence, National Employment Service was established to bring
employers and job seekers together. In response to it, the compulsory Notification of
Vacancies Act of 1959 (commonly called Employment Exchange Act) was instituted which
became operative in 1960. Under Sectin 4 of the Act, it is obligatory for all industrial
establishments having 25 workers or more, to notify the nearest employment exchange of
vacancies(with certain exceptions) in them, before they are filled. The main functions of
these employment exchanges with their branches in most cities are registration of job seekers
and their placement in the notified vacancies. It is obligatory for the employer to inform the
outcome of selection within 15 days to the employment exchange. Employment exchanges
are particularly useful in recruiting blue-collar, white-collar and technical workers. A study
conducted by Gopalji on 31organisations throughtout the country also revealed that
recruitment through employment exchanges was most preferred for clerical personnel i.e.,
white-collar jobs.
2. Employment Agencies:
In addition to the government agancies, there are a number of private employment agencies
who register candidates for employment and furnish a list of suitable candidates from their
data bank as and when sought by the prospective employers. ABC Consultants, Datamatics,
Ferguson Associates, S B Billimoria, etc. are the popular private employment agencies in our
country. Generally, these agencies select personnel for supervisory and higher levels. The
main function of these agencies is to invite applications and short list the suitable candidates
for the organisation. Of course, the final decision on selection is taken by the representatives
of the organisation. At best, the representatives of the employment agencies may also sit on
the panel for final selection of the candidates. The employer organisations derive several
advantages through this source. For example, this method proves cheaper than the one
organisations recruiting themselves. The time saved in this method can be better utilized
elsewhere by the organisation. As the organisatonal identity remains unknown to the job
seekers, it, thus, avoids receiving letters and attempts to influence. However, there is always a
risk of loosing out in screening process done by the agencies, some applicants whom the
representatives of the organisation would have liked to meet and select.
3. Advertisement:
Advertisement is perhaps the most widely used method for generating many applications.
This is because its reach is very high. This method of recruitment can be used for jobs like
clerical, technical and managerial. The higher the position in the organisation, the more
specialized the skills, or the shorter the supply of that resource in the labour market, the more
widely dispersed the advertisements is likely to be. For example, the search for a top
executive might include advertisements in a national daily like ‘The Hindu’.
4. Professional Associations:
Very often, recruitment for certain professional and technical positions is made through
professional associations also called ‘headhunters’. Institute of Engineers, Indian Medical
Association, All Indian Management Association, etc., provide placement services for their
members. For this, the professonal assocations prepare either list of job seekers or publish or
sponsor journals or magazines containing advertisements for their members. The professional
associations are particularly useful for attracting highly skilled and professional personnel.
However, in India, this is not a very common practice and those few that provide such kind of
service have not been able to generating a large number of applications.
5. Campus Recruitment:
This is another source of recruitment. Though campus recruitment is a common phenomenon
particularly in the American organisations, it has made its mark rather recently. Of late, some
organisations such as HLL, HCL, L &T, Citi Bank, ANZ Grindlays, Motorola, Reliance etc. ,
in India have started visiting educational and training institutes/campuses for recruitment
purposes. Examples of such campuses are the Indian Institutes of Management, Indian
Institutes of Technology and the University Departments of Business Management. For this
purpose, many institutes have regular placement cells/offices to serve as liaison between the
employers and the [Link] Central University has one Deputy Director (Training and
Placement) for the purposes of campus recruitment and placement. The method of campus
recruitement offers certain advantages to the employer organisations. First, the most of the
candidates are available at one place; Second, the interviews are arranged at short notice;
Third, the teaching faculty is also met; and Fourth, it gives them opportunity to sell the
organisation to a large student body who would be graduating subsequently. However, the
disadvantages of this type of recruitment are that organisations have to limit their selection to
only “entry” positions and they interview the candidates who have similar education and
experience, if at all.
6. Deputation:
Another source of recruitment is deputation, i.e., sending an employee to another organisation
for a short duration of two to three years. This method of recruitment is practiced, in a pretty
manner, in the Govertnment Departments and public sector organisations. useful because it
provides ready expertise and the organisation does not have to incur the initial cost of
induction and training. However, the disadvantage associated with deputation is that the
deputation period of two/three years is not long enough for the deputed employee to prove
his/her mettle, on the one hand, and develop commitment with the organisation to become
part of it, on the other.
[Link]-of-Mouth:
Some organisations in India also practice the ‘word-of-mouth’ method of recruitment. In this
method, the word is passed around the possible vacancies or openings in the organisation.
Another form of word-of-mouth method of recruitment is “employee-pinching” i.e., the
employees working in another organisation are offered an attractive offer by the rival
organisations. This method is economic, both in terms of time and money. Some
organisations maintain a file of the applications and bio-data sent by job-seekers. These files
serve as very handy as and when there is vacancy in the organisation. The advantage of this
method is no cost involved in recruitment. However, the drawbacks of this method of
recruitment are non-availability of the candidate when needed and the choice of candidates is
restricted to a too small number.
8. Raiding or Poaching:
Raiding or poaching is another method of recruitment whereby the rival firms by offering
better terms and conditions, try to attract qualified employees to join them. This raiding is a
common feature in the Indian organisations. For example, several executives of HMT left to
join Titan Watch Company, so also exodus of pilots from the Indian Airlines to join private
air taxi operators. Whatever may be the means used to raid rival firms for potential
candidates, it is often seen as an unethical practice and not openly talked about. In fact,
raiding has become a challenge for the human resource manager. Besides these,, walk-ins,
contractors, radio and televisons.

METHODS OF RECRUITMENT:
Recruitment methods refer to the means by which an organisation reaches to the potenetial
job seekers. In other words, these are ways of establishing contacts with the potential
[Link] is important to mention that the recruitment methods are different from the
sources of recruitment. The major line of distinction between the two is that while the former
is the means of establishing links with the prospective candidates, the latter is location where
the prospective employees are available.
Dunn and Stephen have broadly classified methods of recruitment into three categories.
These are:
1. Direct Method
2. Indirect Method
3. Third Party Method.
A brief description of these follows in seriatim.

Direct Method:
In this method, the representatives of the organisation are sent to the portential candidates in
the educational and training institutes. They establish contacts with the candidates seeking
jobs. These representatives work in cooperation with placement cells in the institutions.
Persons pursuing managment, engineering, medical etc. programmes are mostly picked up in
this manner. Sometimes, some employer firms establish direct contact with the professors and
solicit information about students with excellent academic records. Sending the recruiter to
the conventions, seminars, setting up exhibits at fairs and using mobile office to go to the
desired centres are some other methods used to establish direct contact with the job seekers.
Indirect Methods:
Indirect methods include advertisements in news papers, on the radio and television, in
professional journals, technical magazines etc.
This method is useful when
(i) organisation does not find suitable candidates to be promoted to fill up the higher
posts
(ii) when the organisation wants to reach out to a vast territory, and
(iii) when organisation wants to fill up scientific, professional and technical posts.
The experience suggests that the higher the position to be filled up in the organisation, or the
skill sought by the more sophisticated one, the more widely dispersed advertisement is likely
to be used to reach to many suitable candidates. Sometimes, many organisations go for what
is referred to as blind advertisement in which only Box No. is given and the identity of the
organisation is not disclosed. However, organisations with regional or national repute do not
usually use blind advertisements for obvious reasons.
While placing an advertisement to reach to the potential candidates, the following three
points need to be borne in mind:
 First, to visualise the type of the applicant one is trying to recruit.
 Second, to write out a list of the advnatages the job will offer.
 Third, to decide where to run the advertisement, i.e., newspaper with local, state, nation-
wide and international reach or circulation.
Third Party Methods:
These include the use of private employment agencies, management consultants, professional
bodies/associations, employee referral/recommendations, voluntary organisations, trade
unions, data banks, labour contractors etc., to establish contact with the jobseekers.
Now, a question arises: which particular method is to be used to recruit employees in the
organisation? The answer to it is that it will depend on the policy of the particular firm, the
position of the labour supply, the Government regulations in this regard and agreements with
labour organisations. Notwithstanding, the best recruitment method is to look first within the
organisation.
SELECTION
Selection starts where recruitment ends.
Selection follows recruitment.
Selection is hiring the best candidate from the pool of applications. It refers to the process of
offering jobs to one or more applicants/candidates from the applications received through
recruitment.
David and Robbins have defined selection as a “managerial decision-making process as to
predict which job applicants will be successful if hired”
According to Yoder1 , “Selection is the process by which candidates for employment are
divided into class — those who will be offered employment and those who will not”.
Selection Differs from Recruitment
Recruitment and selection are often considered as synonymous and are used interchangeably.
They are the two sides of the same coin, there exists a fine distinction between the two.

SELECTION METHODS:
There is no single universally accepted selection process followed by all organisations. The
selection process is likely to vary from organisation to organisation depending upon the
nature of jobs and organisation.
Not with standing, following are the steps involved in a standard selection process:
[Link] Interview
2. Application Blank
3. Selection Tests
4. Selection Interview
5. Reference Checks
6. Physical Examination
7. Final Selection

Preliminary Interview
Preliminary interview follows screening . Like screening, the purpose of the preliminary
interview is to eliminate unsuitable or unqualified candidates from the selection process. In
screening unqualified candidates are eliminated on the basis of information given in the
application form, whereas preliminary interview rejects misfits for reasons, which did not
appear in the application forms. Due care needs to be taken to ensure that the weeding out
process does not lead to the elimination of desirable candidates. Obviously, preliminary
interviews should be conducted by someone who inspires confidence, who is genuinely
interested in people and whose judgement in the adjudging of applicants is fairly reliable.
Besides, the interviewer should be courteous, kind and receptive. He/she should not appear
brusque or impatient. That is precisely the reason, preliminary interview is also called
‘courtesy interview’.
Application blank
It is the commonest device for getting information from a prospective candidate. Almost all
organisations require job seekers to fill up an application. This serves as a personal record of
the candidate bearing personal history profile, detailed personal activities, skills and
accomplishments. Accordingly, the following data is generally called on from the applicant
through application blank:
(a) Biographical Information:
It includes name, father’s name, age, sex, nationality, height, marital status,
identification mark and number of dependents.
(b) Educational Information:
These cover candidate’s academic qualification, courses, year of passing, subjects
offered, percentage of marks, division, names of the educational institutions, training
acquired, scholarship, etc.
(c) Work Experience:
 It includes positions held, name of the employer, nature of job, salary, duration of
various assignments, reasons for leaving the present job, membership of professional
bodies, etc.
(d) Salary:
It refers to the minimum salary accetable and minimum joining period required.
(e) Extra Curricular Information:
It covers information like participation in games, level of participation, prizes won.
dramas, debates, NSS, NCC, hobbies, etc.
(f) References:
It includes the names of (two or three) referees who know the character, work and
abilities of the candidate. However, empirical evidences report a very slight
relationship between references and performance measures. Besides inaccurate facts,
this can also be attributed to the referee’s inability to assess and describe the
candidate, and his limited knowledge about him.

The questions inserted in the question blank should be valid. Superfluous questions
should be avoided. The information supplied by the candidate in the application blank
should be authentic and verifiable. In case of false information given, the selection of
the candidate, if selected, should stand cancelled
Selection Tests
Individuals differ in many respects including job-related abilities and skills. In order to select
a right person for the job, individual differences in terms of abilities and skills need to be
adequately and accurately measured for comparison. This is done through a device called
‘selection test’. Selection test is a device that uncovers the information about the candidate
which are not known through application blank and interview. In this way, selection test is an
adjunct to a selection method.
selection Test is defined differently by different writers and psychologists. Some define test
as “an objective and standardised measure of a sample behaviour.”
It is considered standardised because the procedure of administering the test, the
environment in which the test is conducted, and method of calculating individual score are
uniformly applied. It is called objective because test measures the individual differences in
terms of their abilities and skilled following an unbiased and scientific method avoiding
interference of human factors.
Selection Interview
The next step in the selection process is ‘employment interview’. Interview is the widely used
selection method. It is a face-to-face interaction between interviewee and interviewer. If
handled carefully, it can be a powerful technique in having accurate information of the
interviewee otherwise unavailable. At the same time, if the interview is not handled carefully,
it can be a source of bias, restricting or distorting the flow of communication.
Refrence Checks
The reference check as yet another step in the selection process is the selection process is
used for the purpose of verifying information and also obtaining additional feedback on an
application. The candidate is asked to supply two-three names of persons i.e., referees who
know him/her personally. Previous employers, University Professors, neighbours and friends
can act as references. However, references are treated as a mere formality and are hardly used
to influence selection decisions.
The obvious reasons are:
1. References are normally those who speak well about the candidate.
2. Referee employer may give favourable opinion about the candidate to get rid of them.
3. Sometimes referee either does not know much about the candidate or does not want to
divulge the truth about the candidate because it might adversely affect the selection or
promotion of the concerned candidate.
Physical Examination
The last tool used in the selection process is physical examination. The main purpose of
condducting physical or medical examination is to have proper matching of job requirement
with the Human Resource Management physical ability of the candidate. Among various
objectives of a physical test, the major ones are to detect if the individual is carrying any
infectious diseases, to identify health defects of an individual for undertaking certain works
detrimental to his/her health and to protect companies from employees filing compensation
claims for injuries and accidents caused by pre-existing ailments.
Final Selection
The last step in the selection process is the final selection of the candidate for a job. The
candidates who have cleared all the above hurdles are finally selected and a letter of job offer
is issued to them. The job offer i.e., appointement letter contains the details like pay-scale,
allowances and other terms and conditions of the job. It also contains when and whom he
should report for joining the duty. When he/she reports for joining, he/she needs to be placed
in a particular section or division and introduced to the job and organisation.
INDUCTION
Induction is welcoming a new employee to the organisation. In other words, it is a well orchestrated
event to socialise the new entrant with the people and the work environment in a particular
organisation.
According to Michael Armstrong , “Induction is the process of receiving and welcoming an employee
when he first joins a company and giving him basic information he needs to settle down quickly and
happily and start work”.
Induction is, therefore, the process of welcoming, indoctrination and socialisation of new employee
to his/her job and organisation.

OBJECTIVES:
When a new entrant joins an organisation, he/she is an utter stranger to the co-workers, workplace
and work environment. As such, he/she may feel insecure, shy and nervous. The first few days may
be all anxious and disturbing ones for the new entrant. Particularly when a new entrant comes from
rural area, he/she finds himself/herself completely at sea in an industrial town and city. Then,
induction helps reduce such anxities and dispels doubts and nervousness from the mind of the new
entrant.
Therefore, an induction programme is designed to achieve the following objectives:
1. To reduce the initial anxiety all new entrants feel when they join a new job in a new organisation.
2. To familiarize the new employees with the job, people, work-place, work environment and the
organisation .
3. To facilitate outsider - insider transition in an integrated manner.
4. To reduce exploitation by the unscrupulous co-workers.
5. To reduce the cultural shock faced in the new organisation.
Benefits of Induction Programme :
A formal induction programme may provide the following benefits to the new comer and the
organisation
1. A well-designed induction programme reduces anxiety, nervousness, absenteeism and employee
turnover.
2. Induction helps minimize the reality or cultural shock new employees undergo on joining a new
organisation.
3. Effective induction also helps integrate the new employees into the organisation and fosters the
feeling of belongingness to the new organisation.
4. Induction also binds the newcomer and the present employees in a team.
Phases of Induction Programme
A carefully designed induction programme consists of the following three phases:
1. General Induction
2. Specific Induction
3. Follow-up Induction
General Induction:
This first phase of induction is conducted by the HR department. The focus of the induction is to
expose the new entrant to the organisation by explaining him the mission, objectives, history and
philosophy of the organisation. The new employee is also briefed about his service conditions, pay
and perks, promotion procudure, personnel policies and grievance handling mechanism practised in
the organiosation. This phase of induction inculcates pride for the employee to work in the
organisation. The period of induction, depending on the organisation, may vary from a few days to
few weeks.
Specific Induction:
This induction is given by the new employee’s supervisor. The focus is on the overall exposition of
the new employee to his job. Accordingly, the employee is introduced to the job, shown place of
work and around the premises, introduced to his co-workers and briefed about the procedures and
methods, custom and routines, rules and regulations regarding his job. This training/ induction helps
the new employee adjust with his work environment. The induction may last for few weeks or even
months.
Follow-up Induction:
 The main objective of the follow-up induction is to verify whether the new employee is getting
himself adjusted with the work and organisation or not . This induction is given by the employee’s
supervisor or a qualified specialist on industrial psychology. While giving induction training, the
employee’s suggestions on adequacy or otherwise of the already conducted induction programmes
and on any other related aspects, if any, are duly taken into consideration to make the induction
more and more effective. Such feedback can also be used to assess the requirements of guidance
and counselling for the new entrants. The duration of follow-up induction may vary from some
weeks to few months.
EFFECTIVENESS OF INDUCTION
1. Receiving New Employees:
The new employees need to be duly received by the organisation. This inculcates a feeling in
the new entrants that they are required in the organisation. Such a feeling serves as a corner
stone to be interested to integrate into the organisation.
2. Determining the New Employees’ Need for Information:
The central element that guides the designing of an induction programme is to decide first
“What do the new employees need to know now?” Many a times, the new employees are
given information which are not immediately required but the required one is not given.
Such information lack tends to make the new comer confused about the job and the
organisation. Therefore, it is important to decide the vital information a new entrant needs
to receive on his joining the organisation.
3. Determining How to Present the Information:
Having being decided what information employees wants, the next important thing to be
decided is how to present the same to the new employees. Obviously, the required
information needs to be presented to the new employees in the right form and manner to
have its maximum impact on the employees.
4. Delivering Induction Training by the Right Instructor:
Much of the effectiveness of an induction programme depends on who conducts the
induction training. This is because induction training cannot be given by anyone, but by the
right instructor/trainer only. Possession of the required skill, knowledge and attitude are
considered to be the requisites of a right instructor. Therefore, the induction programme
needs to be conducted by the right trainer only. If required the trainer be given induction
training before he/she conducts the induction training for the new entrants to the
organisation.
5. Evaluating the Induction Programme:
Like all other training programmes, whether or not an induction programme is effective is
determined by evaluating the programme.