HRM Unit 1

HRM is a process of bringing people & organization together so that the goals of each are met. It is
the part of the management process which is concerned with the management of human resources
in an organization & tries to secure best from the people by winning their wholehearted co-
operation. In short, it may be defined as the art of procurement, developing and maintaining
competent workforce to achieve the goals of an organization in an effective and efficient manner.
French Wendell, defines ―Human resource management as the recruitment, selection,
development, utilization, compensation and motivation of human resources by the organization.
According to Edwin Flippo: HRM is planning, organizing, directing, controlling of procurement,
development, compensation, integration, maintenance & separation of human resources to the end
so that individual, organizational & social objectives are achieved. HRM is the organizational function
that deals with issues related to people such as compensation, hiring, management, organization
development, safety, wellness benefits, employee motivation, communication, administration
&training. HRM is the process of attracting developing & maintaining a talented & energetic
workforce to support organizational mission, objectives & strategies.

Nature of HRM

The nature of the human resource management has been highlighted in its following features :

1. Inherent Part of Management: Human resource management is inherent in the process of

management. This function is performed by all the managers throughout the organization rather that
by the personnel department only. If a manager is to get the best of his people, he must undertake
the basic responsibility of selecting people who will work under him.

2. Pervasive Function: Human Resource Management is a pervasive function of management. It is

performed by all managers at various levels in the organization. It is not a responsibility that a
manager can leave completely to someone else. However, he may secure advice and help in
managing people from experts who have special competence in personnel management and
industrial relations.

3. Basic to all Functional Areas: Human Resource Management permeates all the functional area of
management such as production management, financial management, and marketing management.
That is every manager from top to bottom, working in any department has to perform the personnel
functions.

4. People Centered: Human Resource Management is people centered and is relevant in all types of
organizations. It is concerned with all categories of personnel from top to the bottom of the
organization. The broad classification of personnel in an industrial enterprise may be as follows: (i)
Blue-collar workers (i.e. those working on machines and engaged in loading, unloading etc.) and
white-collar workers (i.e. clerical employees), (ii) Managerial and non-managerial personnel, (iii)
Professionals (such as Chartered Accountant, Company Secretary, Lawyer, etc.) and nonprofessional
personnel.

5. Personnel Activities or Functions: Human Resource Management involves several functions

concerned with the management of people at work. It includes manpower planning, employment,
placement, training, appraisal and compensation of employees. For the performance of these
activities efficiently, a separate department known as Personnel Department is created in most of the
organizations.
6. Continuous Process: Human Resource Management is not a one shot‘ function. It must be
performed continuously if the organizational objectives are to be achieved smoothly.

7. Based on Human Relations: Human Resource Management is concerned with the motivation of
human resources in the organization. The human beings can ‘t be dealt with like physical factors of
production. Every person has different needs, perceptions and expectations. The managers should
give due attention to these factors. They require human relations skills to deal with the people at
work. Human relations skills are also required in training performance appraisal, transfer and
promotion of subordinates.

SCOPE OF HRM

The Scope of Human Resource management into the following aspects

1. The Personnel Aspect

This aspect of HRM is concerned with the manpower planning, recruitment, selection, placement,
induction, transfer, promotion, demotion, termination, training & development, layoff &
retrenchment, wage & salary administration, incentives, productivity etc.

2. The Welfare Aspect: -

The welfare aspect is concerned with working conditions & amenities such as canteens, crèches, rest
rooms, lunch rooms, housing, transport, education, medical help, health & safety, washing facilities
recreation & cultural activities etc.

3. The Industrial Aspect: -

This aspect is concerned with employees. It includes union management relations, joint consultation,
negotiating collective bargaining, grievance handling, disciplinary actions, settlement of industrial
disputes etc.

Objectives of HRM

(i) To ensure effective utilisation of human resources, all other organisational resources will be
efficiently utilised by the human resources.

(ii) To establish and maintain an adequate organisational structure of relationship among all the
members of an organisation by dividing of organisation tasks into functions, positions and jobs, and
by defining clearly the responsibility, accountability, authority for each job and its relation with other
jobs in the organisation.

(iii) To generate maximum development of human resources within the organisation by offering
opportunities for advancement to employees through training and education.

(iv) To ensure respect for human beings by providing various services and welfare facilities to the
personnel.

(v) To ensure reconciliation of individual/group goals with those of the organisation in such a manner
that the personnel feel a sense of commitment and loyalty towards it.

(vi) To identify and satisfy the needs of individuals by offering various monetary and non-monetary
rewards.

Importance of HRM
1. Importance for the Organisation: -

HRM is important for the organisation to the following:

• Good human resource practices help in attracting & retaining the best people in the
organisation.
• In order to make use of latest technology the appointment of right type of persons is
essential. The right people can be fitted into new jobs properly only if the management
performs its HR function satisfactorily.
• Globalisation has increased the size of the organisation who employ thousands of employees
in different countries. The performance of the company depends upon the qualities of the
people employed. This has further increased the importance of HRM
• HR planning alerts the organisation to the types of people it will need in the short , medium
& long run.
• HR development is essential for meeting the challenges of future. The importance of HRM
has increased because of the shortage of really managerial talent in the country.

2. Importance for the employees

• HRM stress on the motivation of employees by providing them various financial & non-
financial incentives.
• Right organisational climate is also stressed upon so that the employees can contribute their
maximum to the achievement of the organisational objectives.
• Effective management of HR promotes team wok & team spirit among employees.
• It offers excellent growth opportunities to people who have the potential to rise.
• It also encourages people to work with diligence & commitment.

3. Importance for the society: -

Good HR efforts lead to productivity gains (ration of output to input) to the society, since it enables
the managers to reduce costs, save scarce resources, enhance profits & offer better pay, benefits &
working conditions to employees.

Functions of HRM

The main functions of human resource management are classified into two categories:

(a) Managerial Functions and (b) Operative Functions

(a) Managerial Functions

Following are the managerial functions of Human Resources Management.

1. Planning: The planning function of human resource department pertains to the steps taken in
determining in advance personnel requirements, personnel programmes, policies etc. After
determining how many and what type of people are required, a personnel manager has to devise
ways and means to motivate them.

2. Organisation: Under organisation, the human resource manager has to organize the operative
functions by designing structure of relationship among jobs, personnel and physical factors in such a
way so as to have maximum contribution towards organisational objectives. In this way a personnel
manager performs following functions:

(a) preparation of task force;

(b) allocation of work to individuals;

(c) integration of the efforts of the task force;

(d) coordination of work of individual with that of the department.

3. Directing: Directing is concerned with initiation of organized action and stimulating the people to
work. The personnel manager directs the activities of people of the organisation to get its function
performed properly. A personnel manager guides and motivates the staff of the organisation to
follow the path laid down in advance.

4. Controlling: It provides basic data for establishing standards, makes job analysis and performance
appraisal, etc. All these techniques assist in effective control of the qualities, time and efforts of
workers.

(b) Operative Functions: The following are the Operative Functions of Human Resource Management

1) Procurement or employment function:

Employment is concerned with securing & employing the right kind and proper number of people
required to accomplish the organizational objective. It consists of the following activities:

a. Job Analysis: It is the process of studying in detail the operations and responsibilities involved in a
job.

b. HR Planning

c. Recruitment

d. Selection

e. Placement

f. Induction or orientation

g. Transfer, Promotion & Demotion

h. Discharge & Separation

2) Development Function: It is the process of improving, molding & changing the skill knowledge,
creativity, attitude, values, commitments etc. of employees so that they can perform the present and
future jobs more effectively. It includes:

a. Performance appraisal and potential appraisal

b. Training

c. Management Development: It is the process of developing managerial talent through appropriate

programmes.

d. Career Planning and Development: It involves planning the career of employees and implementing
career plans so as to fulfil the career aspiration of employees.

3) Compensation Function: It is the process of providing adequate equitable & fair remuneration to
the employees. It includes:

a. Job Evaluation: It is the process of determining the relative worth of a job.

b. Wage & salary administration: It implies developing and operating a suitable wage and salary
programme.

c. Bonus& incentives

d. Fringe Benefits: These are the various extra benefits provided to employees in addition to the
compensation paid in the form of salary or wage. Ex. Recreation facilities, Education facility to
children etc.

e. Social Security Measures: Ex. Medical benefits, sick benefits, maternity benefits etc.

4) Integration Function: It is the process of integrating the goals of an organization with employees
goals through various employee-oriented programmes. It includes

a) grievances handling,

b) Instituting proper disciplinary measures,

c) Employee participation

d) Communications

e) Counseling

f) Collective Bargaining

g) Discipline

h) Conflict Management

i) Quality of Work Life

j) Industrial Relations

5) Maintenance: It is concerned with the perpetuating a willing and able workforce. It involves
protecting and promoting the physical and mental health of employee. It includes –

a. Health and Safety

b. Medical Services

c. Protection and Security

d. Social Security

e. Compliance with Labour Laws

f. Employee Benefits and Services

g. Personnel Research

h. Personnel Records.

HR MANAGER

A person who headed with HRM department. Or A person who is charge of the department that
deals with the employment, training, support, records etc, of company.
Role of HR Manager

1. The conscience role: - the conscience role is that of humanitarian who reminds the management
of its morals & obligations to its employees.

2. The Counsellor: - employees who are dissatisfied with the present job approach the personnel
manager for counselling. In addition, employees facing various problems like marital, health,
children’s education/marriage, mental, physical & career problems.

3. The Mediator: - as a Mediator, the Personnel Manager plays the role of peace maker. He settles
the disputes between employees & the management. He acts as a liaison & communication link
between both of them.

4. The spokesman: - he is a frequent spokesman for or representative of the company.

5. The Problem Solver: - he acts as a problem solver with respect to the issues that involve human
resources management & overall long range organisational planning.

6. The Change Agent: - he acts as a change agent & introduces change in various existing
programmes.

EVOLUTION OF HRM

The evolution of the concept of Human Resource Management is presented below

• Period before industrial revolution – The society was primarily an agriculture economy with
limited production. Number of specialized crafts was limited and was usually carried out
within a village or community with apprentices assisting the master craftsmen.
Communication channel was limited.
• Period of industrial revolution (1750 to 1850) – Industrial revolution marked the conversion
of economy from agriculture based to industry based. Modernization and increased means if
communication gave way to industrial setup. A department was set up to look into workers
wages, welfare and other related issues. This led to emergence of personnel management
with the major task as

– Worker’s wages and salaries

– Worker’s record maintenance

– Worker’s housing facilities and health care

An important event in industrial revolution was growth of Labour Union (1790) – The works working
in the industries or factories were subjected to long working hours and very less wages. With
growing unrest, workers across the world started protest and this led to the establishment of Labour
unions. To deal with labour issues at one end and management at the other Personnel Management
department had to be capable of politics and diplomacy, thus the industrial relation department
emerged.

• Post Industrial revolution – The term Human resource Management saw a major evolution
after 1850. Various studies were released and many experiments were conducted during
this period which gave HRM altogether a new meaning and importance. A brief overview of
major theories release during this period is presented below
➢ Frederick W. Taylor gave principles of scientific management (1857 to 1911) led to
the evolution of scientific human resource management approach which was involved in

– Worker’s training

– Maintaining wage uniformity

– Focus on attaining better productivity.

➢ Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940).

– Observations and findings of Hawthrone experiment shifted the focus of Human resource from
increasing worker’s productivity to increasing worker’s efficiency through greater work satisfaction.

➢ Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of needs
(1954) – These studies and observations led to the transition from the administrative and
passive Personnel Management approach to a more dynamic Human Resource Management
approach which considered workers as a valuable resource.

As a result of these principles and studies, Human resource management became increasingly line
management function, linked to core business operations. Some of the major activities of HR
department are listed as

1. Recruitment and selection of skilled workforce.

2. Motivation and employee benefits

3. Training and development of workforce

4. Performance related salaries and appraisals.

Challenges of HRM

1. Recruitment and Selection

One of the major challenges faced by human resource managers is recruitment and selection. As
technology advances, new HR management tools and techniques are developed. As a result, HR
professionals find it challenging to find a suitable candidate who fits job requirements and adapt to
technological changes. They will have to make some changes in their recruitment methods, including
offering new training services to ensure quality results.

2. Leadership Development

Leadership development is another one of the biggest challenges for HR in 2022. You see, it is crucial
that you nurture employees with leadership skills and help them advance their careers. This is a
strategic initiative that should be handled carefully to retain the best employees. In addition, HR
professionals must ensure they provide essential tools and structures to select and develop future
leaders of their organizations.

3. Managing a Diverse Workforce

Hiring a diverse workforce means that you bring onboard employees with a broader range of skills
and different experiences that can maximize productivity. However, managing such workers is one of
the HR challenges in many organizations. For instance, handling frequent disagreements and
encouraging effective communication between a diverse workforce with different backgrounds can
leave other employees feeling neglected. In this regard, HR professionals must develop an
organizational culture through various team-building activities.
4. Compliance with Employment Laws

Employment laws keep changing, and it is upto the HR professionals to stay abreast with the latest
laws to avoid audits and lawsuits that could affect your business performance. Employment laws are
regulations that assist in effective hiring, employee management, and workplace safety.

5. Engaging Employees

Besides talent acquisition challenges, HR departments struggle to keep their workforce engaged and
maximize productivity. You see, as your business grows, you will also alter its structure, work plan,
and even internal processes. Getting your workers to adapt to this change require effective
communication. Let them know the benefits of the changes and why their input is crucial in taking
the business to a higher level. Consider having frequent meetings and let them know about recent
developments. Regular feedback is also essential to identify areas that need extra attention.

6. Compensation and Benefits

Structuring employee compensation and benefits is another emerging challenges of HRM.

Businesses have to keep up with their competitors to retain the best talent. This can cause a strain on
small businesses that are yet to generate the same revenue large organizations do. In this regard, HR
managers with small payroll budgets should consider employee rewards programs for the best-
performing individuals. Incentive programs can also be a solution to low salaries and employee
benefits.

7. Trade Union Demands

Some trade unions have unrealistic demands that contribute to human resource management
challenges. Therefore, you need to be skillful in handling trade unions that oppose your company’s
policies and procedures. This is so that you can easily reach an agreement that benefits both parties.

8. Retaining the Best Talent

This is one of the most common challenges of HRM faced by organizations. With employers
competing for the best employees, retaining them requires a structured onboarding plan. Remember
that employee turnover can be costly and have an adverse effect on your business growth. To
maintain the best talent, you should also create a conducive work environment, provide room for
career development, and motivate them to perform better.

9. Maintaining Workers’ Health and Safety at Workplace

HR professionals must ensure that the workplace is conducive enough to accommodate employees
without affecting their health. For instance, if there are types of machinery that require skills to
operate, let the employees know the dangers of using them. Their health should also be a priority
since healthy and safe workers will keep your business running and growing. Workload and stress
levels are also other human resource management issues and challenges that can be handled by
allocating tasks equally and planning for activities that help manage stress.

10. Organizational Data and Integrity Management

Businesses are becoming more digitized, using electronic devices to manage various tasks. However,
while they enjoy the benefits of the advancing technology, their data are at risk of leaking into the
wrong hands. These challenges for HR people make HR professionals struggle to secure their
companies’ data and maintain their integrity. Therefore, you need to ensure the data security
department is on its toes to secure data. Also, consider communicating with your employees about
data security best practices such as the use of passwords, phishing emails, desktop rules, etc.

Ethical Issues in HRM

The following are some of the major ethical challenges an organization faces in ethical management-

1. Harming Some While Benefitting Others

HR managers do much of the screening while the hiring process is still on. By its very nature,
screening leaves some people out and permits others to move forward. In short, the ones left out
will be affected by not getting the job, no matter how much they need it. HR managers can neglect
the emotionalism of such situations by adhering strictly to the skill sets and other needs of the
position, but there will always be a gray area where HR managers may scale how much each
applicant wants and needs the job.

2. Equal Opportunity

The HR managers must regularly monitor the company's hiring practices to make sure there is no
discrimination in the hiring process based on ethnicity, sexual orientation, race, religion and
disability. However, simply abiding with Equal Employment Opportunity Commission (EEOC)
guidelines does not guarantee ethical behavior. For example, if an HR manager recommends a
candidate in order to fill a quota, that decision is unethical, because it will remove other applicants
that may be more qualified.

3. Privacy

Privacy is always a sensitive matter for an HR manager. Though a company culture may be friendly
and open and motivates employees to freely discuss personal details and lifestyles, the HR manager
has an ethical obligation to keep such matters private. This specifically comes into play when the
competing company calls for a reference on an employee. To remain ethical, HR managers must
abide with the job-related details and leave out knowledge of an employee's personal life.

4. Compensation and Skills

HR managers can suggest compensation. While these recommendations may be based on a salary
range for each position, ethical dilemmas arise when it comes to compensating employees
differently for the same skills. For example, a highly sought-after executive may be able to negotiate a
higher salary than someone who has been with the company for several years. This can become an
ethical problem when the lower-paid employee learns of the discrepancy and questions whether it is
based on characteristics such as gender and race. Human resources departments must handle a host
of ethical and legal issues from the regulations of the EEOC to the principles and practices of
organizations such as the Human Resource Management Institute.

5. Labor Costs

HR must cope with conflicting needs to keep labor costs as low as possible and to invite fair wages.
Ethics come into action when HR must select between outsourcing labor to countries with lower
wages and harsh living conditions and paying competitive wages. While there is nothing illegal about
outsourcing labor, this issue has the potential to build a public relations problem if consumers object
to using underpaid workers to save money.

6. Opportunity for New Skills

If the HR department selects who gets training, it can run into ethical issues. As training is a chance
for development and broadened opportunities, employees who are left out of training may debate
that they are not being given equal opportunities in the workplace.

7. Fair Hiring and Justified Termination

Hiring and termination decisions must be made without regard to ethnicity, race, gender, sexual
preference or religious beliefs. HR must take precautions to eliminate any bias from the hiring and
firing process by making sure such actions adhere to strict business criteria.

8. Fair Working Conditions

Companies are basically expected to provide fair working conditions for their employees in the
business environment, but being answerable for employee treatment typically means higher labor
costs and resource utilization. Fair pay and benefits for work are more obvious factors of a fair
workplace. Another important factor is provision of a non-discriminatory work environment, which
again may have costs engaged for diversity management and training.

By now it’s pretty clear that while working in an organization, we come across people with different
backgrounds, cultural beliefs and we need to respect their beliefs. In case an employee feels left out
due to some problem, it may not work in the favor of the organization.

Difference between Personnel Management and HRM

Personnel Management is a part of management that deals with the recruitment, hiring, staffing,
development, and compensation of the workforce and their relation with the organization to achieve
the organizational objectives. Whereas, Human resources management (HRM) is a management
function concerned with hiring, motivating and maintaining people in an organization. It focuses on
people in organizations.
Difference between traditional and strategic HRM

1. Rigid vs. flexible HR policies

In Traditional Human Resource Management, the human resource is managed in a thorough and
structured manner following rules and regulation very strictly. The HR policies are uniform, rigid and
structured and followed by all whatever be the situation of the business / employees.

In Strategic HRM the focus is on achieving goals of the business organization. The HR strategies are
framed in such a way so as to direct employees’ efforts towards the goals of an organization. Hence
the HR strategies are flexible.

2. Reactive vs. proactive

In traditional HRM the process of HRM is reactive in nature. This means that the HR department
responds to a change in the environment thus losing on time. This affects the competitiveness of the
organization and may result into losses.

On the other hand, SHRM is a proactive management function. Here with effective environment
scanning process in place the HR department can see well in advance the changes / challenges /
opportunities that are coming their way and adapt / change well before time to take advantage of /
be prepared for the new situation. Example: the subprime mortgage crisis of 2007 or the recent
Covid-19 pandemic

3. Fragmented vs. integrated approach

The traditional HRM strategies relies strictly on applying management principles and believing in
management principles for managing people and the HR department. It does not integrate its HR
strategies with the other department goals or the goals of the business organization. It follows a
fragmented approach.

As against this, SHRM follows an integrated approach, which involves lining up of business strategy
with the company’s HR practices.

4. Conforming vs. partnership

In traditional human resource management, the HR department has to work withing the scope of
various employment laws, labour laws, factory act etc. It is imperative to maintain good employee
relations to ensure peace and profitability.

SHRM has a broader approach. It partners with employees to achieve internal goals such as profit
maximization, value innovation, becoming market leaders and external goals of pollution control,
becoming the highest employer, community service, CSR projects etc. SHRM focuses on a
partnership with internal and external constituent groups.

5. Short term vs. long term goals

THRM policies are rigid, structured, fragmented and do not succeed when there are changes in the
business environment over a long-term period. If you do not adapt, you perish! THRM policies and
practices support only short-term business goals and outcomes.

Since SHRM are flexible, aligned and integrated with business strategies and goals they adapt to
changes in business environment and are catalyst to success. SHRM supports long-term goals and
results of business.
6. Transactional vs. transformational leadership style

THRM is reactive in nature. The human resource manager plays the role of change follower, i.e.
he/she responds to change, hence pursues transactional leadership style. (do what is told of him to
do.)

SHRM is proactive in nature. Changes and adapts before time as they can see what is coming… The
human resource manager is a change leader, i.e. an initiator of change, thus seeks transformational
leadership style. (innovates and leads change)

7. Capital & products vs. people & knowledge

In THRM MONEY and MATERIAL are important. The primary element in HRM is capital and products.

In SHRM QUALITY OF HR is important. People and their knowledge are the building blocks of SHRM

8. Cost centric vs. Investment centric

THRM considers salary, wages, incentives, training, facilities, perks etc. as an expense. A cost to
company. A conventional or traditional HRM is cost centric.

SHRM is investment centric. The money spent on human resource is considered as an investment in
improving the quality of HR the benefit of which will be reaped by the company in the long run.

9. Stringent control vs. Empathy & Leniency

In THRM, the HR is strictly monitored and controlled. As against this, in strategic human resource
management, no such control is imposed, rather the rules for managing manpower is empathetic
and lenient. This means that the HR department is kind and open to accommodate the problems and
issues faced by HR to win their confidence and loyalty. The focus is on partnering with the HR to
achieve individual, team, department and organizational goals.

10. Division of labour & specialization vs. Cross training & teams

THRM believes in HR specializing in a particular task, skill and remaining in the same process for a
lifetime. Individuals are given targets which they have to achieve. Division of labour and
specialization can be found in the job design.

In SHRM HR are trained in different tasks and skills other than the one assigned to them. HR HAS TO
BE OPEN TO LEARNING NEW KNOWLEDGE, SKILL AND TASKS. Targets are given to the team to
achieve and members contribute to team targets. Flexibility and cross-training aids in creation of
teams for crisis management. In strategic human resource management flexibility, cross-training and
teams can be found in the job design

New Trends in HRM

1. Remote Work Policies and Practices: The COVID-19 pandemic accelerated the adoption of remote
work arrangements. HRM has been adapting to manage remote teams effectively, including policies
for remote work, virtual onboarding, performance management, and employee engagement
strategies tailored to remote settings.

2. Focus on Employee Well-being: Employers increasingly recognize the importance of employee

well-being for productivity and retention. HRM trends include initiatives such as mental health
support, flexible work hours, wellness programs, and initiatives to combat burnout.
3. Data-driven HR: HR departments are leveraging data analytics tools to make more informed
decisions about talent acquisition, performance management, training, and development. Predictive
analytics and artificial intelligence are being used to forecast workforce trends and identify potential
issues before they arise.

4.Diversity, Equity, and Inclusion (DEI): Organizations are placing a stronger emphasis on creating
diverse and inclusive workplaces. HRM practices include implementing DEI training, revising
recruitment strategies to attract diverse talent, and establishing inclusive policies and practices.

5. Agile HR: Agile methodologies, borrowed from software development, are being applied to HR
processes to increase flexibility, responsiveness, and collaboration within HR teams. This approach
enables HR departments to adapt quickly to changing business needs and market conditions.

6. Continuous Learning and Development: HRM is focusing on creating a culture of continuous

learning and development to upskill and reskill employees. This includes personalized learning
pathways, mentorship programs, and investments in online learning platforms.

7. Remote Recruitment and Onboarding: With remote work becoming more common, HR
departments are adapting their recruitment and onboarding processes accordingly. This includes
virtual interviews, virtual job fairs, and the development of digital onboarding materials and training
programs.

8. Emphasis on Employer Branding: In a competitive job market, organizations are investing in their
employer brand to attract and retain top talent. HRM strategies include showcasing company culture,
values, and employee experiences through employer branding initiatives and social media.

9. Flexible Work Arrangements: Beyond remote work, HRM is exploring other flexible work
arrangements such as compressed workweeks, job sharing, and flexible scheduling to accommodate
diverse employee needs and preferences.

10. Environmental, Social, and Governance (ESG) Initiatives: Companies are increasingly
incorporating ESG considerations into their HRM practices, including environmental sustainability
efforts, social responsibility initiatives, and governance policies related to ethical conduct and
transparency.

These trends reflect the evolving nature of HRM as it adapts to changes in technology, demographics,
and societal expectations. The landscape of HRM is constantly evolving, and new trends may emerge
over time.

HRM Unit 2

Job Analysis

Job analysis is the process of gathering and analyzing information about the content and the human
requirements of jobs, as well as, the context in which jobs are performed. This process is used to
determine placement of jobs. Job analysis in Human Resource Management (HRM) is very crucial. It
involves systematically gathering and analyzing information about job roles and responsibilities
within an organization. Job analysis helps develop job descriptions, determine job specifications, set
performance standards, and establish training and development programs.

Process of Job Analysis

A. Defining the Objectives:

Before embarking on a job analysis, it is essential to define the objectives clearly. Determine why the
analysis is being conducted, whether it is for staffing, performance management, training, or any
other HR function. Identifying the purpose will guide the entire process.

B. Preparing for Job Analysis

Preparation is crucial to ensure a practical job analysis. This step involves gathering relevant
information such as job descriptions, organizational charts, and employee performance records.
Identifying key stakeholders and applying them in the process is also essential.

C. Performing the Job Analysis

The job analysis begins with data collection. Various methods, such as interviews, questionnaires,
observation, and job performance data analysis, can be employed. Job analysis in HRM aims to
identify a particular job’s tasks, duties, and responsibilities. It also includes analyzing the skills,
qualifications, and competencies required to perform the job effectively.

D. Designing Job Descriptions and Job Specifications

It creates job descriptions and specifications once the data is collected. A job description provides a
comprehensive job overview, including the title, job summary, duties, responsibilities, and reporting
relationships. On the other hand, job specifications outline the qualifications, skills, and experience
required.

E. Controlling Job Descriptions and Job Specifications

Job descriptions and specifications should be periodically reviewed and updated to ensure their
accuracy and relevance. Changes in the organization, technology, or job requirements may
necessitate revisions. Organizations can effectively manage their human resources by maintaining
up-to-date job descriptions and specifications.

Importance of Job Analysis

Job analysis is vital in various HRM functions. Let’s explore the significance of job analysis in the
following areas:

1. Recruitment and Selection: Job analysis helps identify the qualifications and skills required for a
particular job. This information facilitates the recruitment and selection process by ensuring that
suitable candidates are hired.

2. Training and Development: Job analysis provides insights into the skills and knowledge needed to
perform a job effectively. This helps in designing training programs that address specific job-related
competencies.

3. Performance Appraisal: Clear job descriptions and specifications derived from job analysis serve as
the basis for evaluating employee performance.

4. Career Planning: Job analysis helps individuals understand the requirements and expectations of
various organizational jobs. This knowledge aids in career planning and development.

5. Job Design: Job analysis helps design jobs that are meaningful, challenging, and aligned with
organizational objectives.

Problems of Job Analysis

Despite its benefits, job analysis can also present specific challenges:

1. Subjectivity: The data collected through job analysis methods may be influenced by individual
perspectives, leading to subjective interpretations.

2. Time and Resource Intensive: A comprehensive job analysis requires significant time and
resources, especially in large organizations.

3. Resistance to Change: Employees may resist job roles and responsibilities changes resulting from
job analysis findings, leading to potential resistance or dissatisfaction.

Job description and Job specification:

Job Analysis is a primary tool to collect job-related data. The process results in collecting and
recording two data sets including job description and job specification. Any job vacancy cannot be
filled until and unless HR manager has these two sets of data. It is necessary to define them
accurately in order to fit the right person at the right place and at the right time. This helps both
employer and employee understand what exactly needs to be delivered and how. Both job
description and job specification are essential parts of job analysis information. Writing them clearly
and accurately helps organization and workers cope with many challenges while onboard.

Job Description

Job description includes basic job-related data that is useful to advertise a specific job and attract a
pool of talent. It includes information such as job title, job location, reporting to and of employees,
job summary, nature and objectives of a job, tasks and duties to be performed, working conditions,
machines, tools and equipment to be used by a prospective worker and hazards involved in it.

Purpose of Job Description

The main purpose of job description is to collect job-related data in order to advertise for a
particular job. It helps in attracting, targeting, recruiting and selecting the right candidate for the
right job.

It is done to determine what needs to be delivered in a particular job. It clarifies what employees
are supposed to do if selected for that particular job opening.

It gives recruiting staff a clear view what kind of candidate is required by a particular department or
division to perform a specific task or job.

It also clarifies who will report to whom.

Job Specification

Also known as employee specifications, a job specification is a written statement of educational

qualifications, specific qualities, level of experience, physical, emotional, technical and
communication skills required to perform a job, responsibilities involved in a job and other unusual
sensory demands. It also includes general health, mental health, intelligence, aptitude, memory,
judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics, manners and
creativity, etc.

Purpose of Job Specification

Described on the basis of job description, job specification helps candidates analyze whether are
eligible to apply for a particular job vacancy or not.
 It helps recruiting team of an organization understand what level of qualifications, qualities and set
of characteristics should be present in a candidate to make him or her eligible for the job opening.

Job Specification gives detailed information about any job including job responsibilities, desired
technical and physical skills, conversational ability and much more.

It helps in selecting the most appropriate candidate for a particular job.

Job description and job specification are two integral parts of job analysis. They define a job fully and
guide both employer and employee on how to go about the whole process of recruitment and
selection. Both data sets are extremely relevant for creating a right fit between job and talent,
evaluate performance and analyze training needs and measuring the worth of a particular job.

Job Design

Job design is next to job analysis. Job design involves systematic attempts to organize tasks, duties
and responsibilities into a unit of work to achieve certain objectives. Job design integrates the work
content and qualifications required for each job that meets the needs of employee and the
organization. Job design makes the job highly specialized and well-designed jobs are important in
attracting and retaining a motivated work force.

According to Michael Armstrong, “Job Design is the process of deciding on the contents of a job in
terms of its duties and responsibilities, on the methods to be used in carrying out the job, in terms of
techniques, systems and procedures, and on the relationships that should exist between the job
holder and his superior subordinates and colleagues.” Job Design is affected by two categories of
factors:

Organizational Factors: The organizational factors that affect job design are characteristics of task,
work flow, ergonomics and work practices.

● Characteristic of task: Each task consists of 3 elements, namely, planning, executing and
controlling. Job design involves the assembly of a number of tasks into a job or a group of jobs. A job
may require an employee to perform a variety of connected task. All these characteristics of jobs are
taken into consideration for job design.

● Workflow: The flow of work in an organization is strongly influenced by the nature of the product.
This product usually suggests the sequence and balance between jobs if the work is to be completed
efficiently.

● Ergonomics: Ergonomics is concerned with the designing and shaping of jobs as per the physical
abilities and characteristics of individuals so that they can perform their jobs effectively.

● Work Practices: Work practices are the set methods of performing work. This can affect the job
design as there is little flexibility in designing the job especially if the work practices are approved by
employee unions.

Environmental Factors: Environmental factors affect job design. Environmental factors include
employee abilities & availability and Social & Cultural expectations.

● Employee Abilities & Availability: Abilities and availability of people plays an important role while
designing jobs. Due attention needs to be given to the employee who will actually perform the job.
● Social And Cultural Expectations: Jobs should be designed keeping the employees in mind. Due to
increase in literacy rate and knowledge, employees are now more aware and only perform jobs that
are to their liking and match their profile.

● Behavioral Factors: Behavioral factors are related to human needs and they need to be satisfied
properly. Behavioral elements include the following:

● Feedback: Employee should be given proper feedback about his job performance. This will enable
the employee to improve his performance and complete the job in a proper manner.

● Autonomy: Employee should be given proper autonomy required to perform the work. The
absence of autonomy may lead to poor performance on the part of employees.

● Use of Abilities: The job should be designed in such a manner that an employee will be able to use
his abilities fully and perform the job effectively.

● Variety: Absence of variety in the job assigned may lead to boredom. Adequatescope to variety
factor should be given while designing a job.

METHODS OF JOB DESIGN [Also read class notes for this topic]

Job Simplification: In the job simplification technique, the job is simplified or specialized. A given job
is divided into small sub-parts and each part is assigned to one individual employee. Job
simplification is introduced when job designers feel that the jobs are not specialized enough.

Job Rotation: Job rotation implies systematic movement of employees from one job to the other. Job
remains unchanged but employees performing them shift from one job to the other. With job
rotation, an employee is given an opportunity to perform different jobs, which enriches his skills,
experience and ability to perform different jobs. It is the process of preparing employees at a lower
level to replace someone at the next higher level. It is generally done for the designations that are
crucial for the effective and efficient functioning of the organization. By this to some extent boredom
is reduced. However, for this people interest is primary importance. By this they can also learn new
things, new techniques, and new ways of doing better work. It may also happen that over a period of
time they will be finding a job for which they are better suitable. They can also contribute in a better
way to achieve the goals of the organization. This aspect of job rotation can be seen widely applied in
Retail scenario, where end user or consumer is in direct presence all through. This has for large
extent reduced boredom, reduced irregularities due to familiarity, acquired new skills & assuming
new & varied responsibilities. In other words, it will lead to better job satisfaction, which is the
ultimate goal for better contribution.

Job Enlargement: Job enlargement means expanding the scope of the job. Many tasks and duties are
aggregated and assigned to a single job. It is opposite to job simplification. Job enlargement is an
extension of Job rotation, exposing the people to several jobs without changing the job duties to be
performed. He is taken off the boring job for a while & is allowed to take up a related task & so on.
Monotony is relieved temporarily. Critics are of the opinion that this approach involves nothing more
than having to perform several boring jobs rather than one. Job enlargement is to expand in several
tasks than just to do one single task. It is also the horizontal expansion of a job. It involves the
addition of tasks at the same level of skill and responsibility. It is done to keep workers from getting
bored. This would also be considered multi-tasking by which one person would do several persons
jobs, saving the company money and man hours that normally would be paid to additional workers.
Small companies may not have as many opportunities for promotions, so they try to motivate
employees through job enlargement. For example, when I worked at a restaurant. I would bus the
tables, wash the dishes, and run food upstairs. If they had just one person doing each job on the
same night, it would cost the management three times the money. This adds more functions;
increases variety of tasks & this is short lived. It cannot enrich the human content of job. The
ultimate answer is Job Enrichment.

Job Enrichment: Job enrichment means making the job rich in its contents so that an employee will
get more satisfaction while performing that job. It upgrades the responsibility, scope and challenge.
A vast majority of the jobs are repetitive & monotonous in nature. This results in reducing the
motivational content& human element of the job with repercussions on performance. The central
focus of job enrichment is giving people more control over their work (lack of control is a key cause
of stress, and therefore of unhappiness.) Where possible, allow them to take on tasks that are
typically done by supervisors. This means that they have more influence over planning, executing,
and evaluating the jobs they do. In enriched jobs, people complete activities with increased freedom,
independence, and responsibility. They also receive plenty of feedback, so that they can assess and
correct their own performance.

Job Enrichment tries to embellish the job with factors of motivation: Achievement –Recognition –
Increased Responsibilities – Self Involvement – Opportunities for Growth – Advancement – Increased
Competence. Job Enrichment is concerned with redesigning the job to include a variety of work
content; that gives the person more autonomy & responsibility for planning, directing & controlling
his own performance & provide opportunity for personal growth & meaningful work experience. Job
Enrichment also for decentralization of decision-making rights to individual over areas that directly
affect his task functions.

The emphasis is on the result of efforts rather than the procedure to carry out the work, thus making
the job result oriented. This also results in motivation, satisfaction in believing oneself to be
personally accountable for results & being able to know how satisfactory one’s efforts are. By Job
Enrichment, condition or state of human capabilities which were not fully utilized & creation of
frustration among the individual is removed to the extent possible.

Recruitment

Recruitment is a process of identifying, screening, shortlisting and hiring potential resource for filling
up the vacant positions in an organization. It is a core function of Human Resource Management.
Recruitment is the process of choosing the right person for the right position and at the right time.
Recruitment also refers to the process of attracting, selecting, and appointing potential candidates to
meet the organization’s resource requirements.

Sources of Recruitment

Recruitment is performed to attract potential employees with the necessary qualifications and skills
in the adequate number for the positions available in the organization. It searches available people
for the job and invites them to apply for the job. The process of recruitment precedes the process of
selection of the right candidate for the given positions in the organization. Recruitment seeks to
attract suitable applicants to apply for available jobs.

The recruitment process involved the following activities:

1. Identify different sources of labour supply for which applications of prospective employees may be
obtained.

2. Evaluate the validity of different sources.

3. Choose the most suitable source or sources.

4. Contact the chosen sources of recruitment to secure applications.

5. Attract and motivate prospective candidates to apply for vacant jobs.

6. An organization can recruit employees from within or from outside.

Therefore, the various recruitment sources available to an organization may be broadly divided into
two categories: internal and external sources.

Internal Sources

Internal recruitment consists of two main resources that are transfers and promotions.

1. Transfers: Transfer refers to the moving of an employee from one job to another, one department
to another, or from one shift to another without any significant change in a person’s responsibility,
status, or pay. In some cases, it may bring about some changes in responsibilities, or working
conditions, but it cannot result in a change in the salary of the employee. Transfer can help fill
vacancies with employees from departments that are over-staffed. It is the horizontal movement of
employees. If employees are insufficient in one branch or department, it can be filled through
transfer. It is also important in avoiding termination and helping solve the employee’s problems.
During the transfer, it should be kept in mind that the employee who is transferred to another job is
capable of performing it. Transfer also helps the employees learn about different jobs as well.

2. Promotions: In most business organizations, there is a practice of promoting the employees from a
lower level to a higher position. It is the movement of employees from a lower level to fill in the
vacancy of a higher authority. Promotions influence the employees greatly as a promotion at one
level leads to a chain of promotions in the levels lower than it.

Merits of Internal Sources

Internal recruitment or filling vacancies within the organization have the following advantages.

1. Higher Motivation level: Internal recruitment may help the employees to boost their performance.
Promotions at a higher level lead to a chain of promotions at the lower levels. This also increases
their status and pay, and motivates the employees to improve their performance. This increases their
motivation and commitment to the organization. The employees, thus remain loyal and satisfied with
the organization.

2. Simple Process: Internal recruitment makes the process of selection and placement simple. The
working of the employees can be evaluated in a better way. This type of recruitment is better as the
employees know about the organization well.

3. Develops future managers: Transfer is a method through which employees are trained for higher
jobs. The people who are transferred within the organization do not need induction or orientation
training.

4. No over or under staffing: Another benefit of transfers is that the organization can shift employees
from one department to another where there is a shortage.

5. Economical: The process of internal recruitment is cheaper in comparison with external sources.

Demerits of Internal Sources

The limitations of internal sources are as follows:

1. Lack of fresh talent: The internal sources reduce the opportunity of getting fresh talents.
Therefore, being completely dependent on internal sources can give rise to the danger of inbreeding
by not letting new people join the organization.

2. Decrease in enthusiasm level: The employees tend to become lazy because they know that they
will be promoted.

3. Low productivity: The productivity of the organization may get hampered due to the frequent
transfer of employees.

4. Lack of competition: The employees may lose their motivation and spirit of competition as there is
no competition from the outside world.

5. Limited choice: All the organizations cannot fill in all their vacancies through internal sources of
recruitment, especially new organizations.

External Sources

Since the filling up of all the vacancies in an organization is not possible through internal sources,
there are several external forces for various positions. There might be a possibility that there are not
sufficient men or that they do not fulfil the eligibility criteria for the job. The external sources of
recruitment provide a vast range of choices and the introduction of fresh talents to the organization.
The most used external sources are as follows-

1. Direct Recruitment: Under the process of direct recruitment, a notice is placed outside on the
notice board of the organization. The notice contains all the details of the job available. The people
who are interested gather outside the premises of the organization on the specified date and time,
and selection is done then and there. This method of direct recruitment is usually used for finding
candidates for unskilled or semi-skilled jobs. Such people are paid wages daily and are referred to as
casual workers or ‘badli’ workers. This type of recruitment is economical, as it does not require any
form of advertising and thus, a lot of money is saved. It can be really helpful in situations when there
is a rush of work or when the permanent workers are off-duty.

2. Casual Callers: A lot of business organizations keep a record of uninvited job applicants in their
offices. These candidates can be of benefit to the organization. Such a list of job-seekers can be
evaluated, and used for filling up vacancies as required. This type of recruitment can decrease the
price of recruiting the workforce.

3. Advertisement: When a wide choice is required, advertisement is the frequently used method.
Advertisements can be done through newspapers or trade or professional journals. A lot of senior
positions in the industry as well as commerce are filled through advertisement. The benefit of
advertisement is that a lot more detail about the organization and the job can be provided. It helps
the management of the organization select from a larger range of candidates. Advertisements given
in leading newspapers can bring in a lot of responses, but most of the time they are from candidates
who are not quite suitable.

4. Employment Exchange: Government-run employment exchanges are considered a good source of

recruitment for both skilled as well as unskilled jobs. In a few cases, the organizations are necessarily
required to notify the employment exchange of vacancies available. Therefore, employment
exchange work as a link between the job-seekers and the employers by matching the personnel
demand and supply. But a lot of times, the records of employment exchange are not quite suitable,
as they might not meet up the expectations of the job.

5. Placement agencies and Management consultants: Private agencies and professional bodies
appear to be doing considerable work in technical and professional fields. Placement agencies help
provide nationwide service by matching personnel demand and supply. These kinds of agencies
evaluate the bio-data of several candidates and provide suitable names to their clients. These types
of agencies are useful where large-scale screening is necessary and they charge fees for such
services. These professional agencies attract higher-level executives by providing the right kind of
offers. Management consultancy firms facilitate the organizations to recruit technical, professional,
and managerial personnel. They especially deal in middle and top-level executive placements. These
firms manage huge sets of data people with different qualifications and skills, and also advertise jobs
in the place of their clients to recruit the right person for the right job.

6. Campus Recruitment: Recruitments are also done through colleges and institutions of
management and technology. These have become a significant source of recruitment for technical,
professional, and managerial jobs. Several huge organizations keep close contact with universities,
vocational schools, and management institutes to recruit qualified candidates for different kinds of
jobs. Educational institutions are a widespread and normal practice for businesses for recruitment.

7. Recommendations of Employees: A lot of times, the present employees, or their friends or

relatives may introduce applicants. This might be a good source of recruitment. Also, the background
detail of the candidates are well known, so it is easier to select them. Some kind of introductory
screening takes place because the employees working there know the company as well as the
candidates, and therefore, would try to satisfy both of them.

8. Labour Contractors: Labour contractors are helpful as they keep close contact with labourers and
in providing the necessary amount of unskilled workers in a short period. The labour contractors are
themselves employees of the organization and perform the work of recruiting labourers whenever
necessary. But if the same employee of the organization who is the labour contractor chooses to
leave the organization, the labourers hired by him will also leave.

9. Advertising on Television: Proving advertisements on television is now becoming much more

popular these days. It is attracting the attention of a large number of people. Also, whenever there is
a vacancy, the job details and required skills regarding the job are posted along with the profile of the
organization.

10. Web Publishing: The most common source of recruitment nowadays is the Internet. People can
apply as well as post jobs through websites that are specially designed for this purpose. These
websites are frequently visited by both candidates or job-seekers and organizations in search of
required employees.

Merits of External Sources

Following are the advantages of the external sources of recruitment:

1. Qualified Personnel: With the help of external sources of recruitment, the management can get
skilled and trained candidates who are qualified for that particular job which is vacant in the
organization.
2. Wider Choice: When advertisements regarding vacancies are made widely, several applicants from
outside the organization apply. Therefore, the management has a wide variety of choices.

3. Fresh Talent: Sometimes, the present employees in the organization may not be enough or able to
fulfil the requirements of the organization. Therefore, external sources are very useful in bringing
new and fresh talents to the organization.

4. Competitive Spirit: If an organization utilizes external sources, the existing employees will have to
compete with outsiders. They will be motivated to work harder to perform better.

Demerits of External Sources

Following are the disadvantages of the external sources of recruitment:

1. Dissatisfaction among existing staff: External recruitment may result in dissatisfaction and
frustration among present employees. The employees may feel deprived of their chance to get a
promotion.

2. Lengthy process: Recruitment from external sources follow long procedures and thus, can be time-
taking. The organizations have to evaluate and give notice about any vacancy available, and then wait
for the applications to be processed.

3. Costly process: The process of recruitment through external sources can be quite expensive.
Advertisement and evaluation of applications for selection can be costly as a lot of money has to be
spent.

Recruitment Process

The recruitment process is a systematic approach used by organizations to attract, identify, and hire
qualified candidates for job vacancies within the organization. It typically involves several stages and
can vary in complexity depending on the organization's size, industry, and specific needs. Below are
the key stages typically involved in the recruitment process:

1. Identifying Job Vacancy: The recruitment process begins with identifying the need to fill a job
vacancy within the organization. This may arise due to new positions being created, existing
employees leaving, or organizational restructuring.

2. Job Analysis and Job Description: Before initiating the recruitment process, it's essential to conduct
a job analysis to understand the duties, responsibilities, qualifications, and skills required for the
vacant position. This analysis helps in creating a detailed job description outlining the job's
requirements and expectations.

3. Recruitment Strategy Development: Based on the job analysis and job description, the
organization develops a recruitment strategy outlining how and where to attract potential
candidates. This may include internal recruitment, external recruitment through job boards, social
media, professional networks, recruitment agencies, or campus recruitment events.

4. Advertising the Job Vacancy: The organization advertises the job vacancy using various channels
identified in the recruitment strategy. This may involve posting job postings on the company's
website, job boards, social media platforms, or advertising in newspapers and industry publications.
5. Receiving and Screening Applications: Once the job vacancy is advertised, the organization starts
receiving applications from interested candidates. The recruitment team or hiring manager screens
the applications to shortlist candidates who meet the required qualifications and skills outlined in the
job description.

6. Conducting Interviews: Shortlisted candidates are invited to participate in interviews to assess

their suitability for the position further. Interviews may be conducted in multiple rounds and can
involve various formats such as one-on-one interviews, panel interviews, competency-based
interviews, or technical assessments.

7. Selection and Offer: After conducting interviews and evaluating candidates, the organization
selects the most suitable candidate for the job. A job offer is extended to the selected candidate,
outlining details such as compensation, benefits, start date, and any other relevant terms and
conditions of employment.

8. Background Checks and References: Before finalizing the hiring process, the organization may
conduct background checks, including criminal background checks, employment verification, and
reference checks, to verify the candidate's credentials and suitability for the position.

9. Onboarding: Once the candidate accepts the job offer, the onboarding process begins, which
involves integrating the new employee into the organization, providing orientation, training, and
necessary resources to ensure a smooth transition into the new role.

10. Evaluation and Continuous Improvement: After the recruitment process is complete, the
organization evaluates the effectiveness of its recruitment strategies and processes. Feedback from
hiring managers, candidates, and other stakeholders is collected to identify areas for improvement
and refine the recruitment process for future vacancies.

By following a well-defined recruitment process, organizations can effectively attract, identify, and
hire the best talent to meet their business objectives and maintain a competitive edge in the
marketplace.

Selection

Selection refers to the process of choosing the most suitable candidate from a pool of job applicants
to fill a vacant position within an organization. It involves assessing candidates' qualifications, skills,
experience, and other relevant factors to determine their fit for the job and the organization's
culture. The selection process aims to identify individuals who possess the necessary competencies
and attributes to perform the job effectively and contribute to the organization's success.

David and Robbins said, “Selection process is a managerial decision-making process to predict which
job applicants will be successful if hired.”

The process of selection is critical because the organization’s overall performance can be enhanced
by the hiring of high-quality resources. Because of poor hiring practices, new hires can harm the
work being done, and the cost of replacing them is high. The goal of the process of selection is to
identify the most qualified candidates for open positions within a company. Many factors, such as a
candidate’s qualifications, experiences, skills, and overall attitude should be considered to ensure
that the right person is hired for the job.

Process

1. Preliminary Interview
Once a requirement is posted, a company may receive hundreds of thousands of applications. In a
granular pre-process, the preliminary interview is conducted to weed out all candidates who do not
meet the essential eligibility criteria – educational qualifications, required skill sets, proven
certifications, and experience. Candidates may also be assessed based on their background and level
of interest. Some companies employ innovative techniques to bring the right candidates to the table
right from the get-go. For example, Uber deployed “Code on the road,” an in-app coding game that
took candidates straight to the next stage of the selection process if they passed the challenge!
Gamifying recruitment selection is among the latest trends in HRM.

2. Receiving Applications

Once candidates pass the preliminary interview, organizations must aim to standardize the
application process. Here, candidates must fill out a standard application form that collects bio-data,
qualification, experience, background, and educational information. The application could gather a
broader understanding of the candidate, such as hobbies and interests. A comprehensive application
form will come in handy during the final selection process when decisions are to be made between
similar candidates.

3. Screening Applications

This stage includes shortlisting potential candidates from the pool of applicants who applied. The
screening committee constitutes various team leads, department members, inter-department
associates, and coordinators who would be working closely with the selected candidates. Screening
can include multiple criteria, including educational prowess, relevancy in terms of experience, etc.
The interview details and requirements are shared with potential candidates via a call or email.

4. Preliminary Tests

Preliminary tests are an essential part of the job selection process. They assess the aptitude, IQ,
emotional intelligence, proficiency, and personality of candidates. While some organizations hold
these tests remotely, many prefer to arrange a test venue generally within organizational premises.
Should they be held at the premises, the candidates are informed of the itinerary.

5. Employment Interview

The selection interview is the crux of the entire process. It could be defined as an in-person
conversation that puts candidates on their feet. This step signals how well he/she fits into the
company ethos. During this stage, companies provide a detailed brief of the job profile, including the
roles and responsibilities that the candidate is expected to shoulder. Likewise, the candidate is
encouraged to share his/her concerns or queries with the employer. The employment interview itself
may be divided into several rounds, including group discussions and other activities. In-person
interviews allow employers to judge the candidate’s calibre, personality, teamwork, and leadership
skills.

6. Checking References

Although in-person interviews provide a fair idea about the candidate, contacting references allows
employers to verify their understanding. Through discussions with references who vouch for the
candidates’ professionalism and work ethics, they may discover other qualities about him/her. For
this stage of the recruitment process in HRM, organizations may reach out to previous employers or
the concerned educational institutions.

7. Medical Examination
Although not strictly followed, medical examinations are slowly becoming commonplace among
organizations today. Modern companies are viewing medical fitness (both mental and physical) as a
cost function. A healthy employee would require fewer sick leaves and handle stress relatively
quickly, allowing greater productivity in dynamic, fast-paced environments. Some employers view
this matter seriously and consider this a preliminary phase during the screening stage.

8. Final Selection

The last phase of the selection process is to cross the t’s and dot the i’s; candidates who have
successfully qualified through all rounds of the recruitment and selection in HRM receive an
offer/appointment letter from the organization. More often than not, candidates receive a temporary
position with an assurance of permanency on completion of the probation period. The appointment
letter typically includes all such details, including salary and company policies. Candidates may also
be asked to sign an NDA (Non-Disclosure Agreement) that ensures the protection of company data.

Selection Test

1. Achievement Tests:

Achievement tests measure the job knowledge of the applicants in the areas such as marketing,
HR and economics. When an applicant claims to know something, an achievement test is given
to measure how well he/she knows it. It is for this reason that achievement tests are also known
as proficiency tests or performance tests. Achievement tests are a refinement of the work
sample technique and are used to measure what the applicant actually can do and what tasks
he/she can perform right now. Adaptability tests, abstract rea-soning tests, Stanford-Binet Scales,
Miller Analogies Test and Purdue test for machinists and machine operators are some of the
examples of such tests.

Trade tests are the most common type of achievement tests given, for example, in a typing test,
matter to be typed is provided to the candidate and the time taken by the candidate in typing that
matter as also the errors made by him/her are noted down, and thus his/her proficiency in typing is
measured. Similar tests are available in shorthand, calculating machines, operating calculators,
simple mechani-cal equipment, dictating and transcribing apparatus.

2. Aptitude Tests:

Aptitude tests are also known as potential ability tests and specific cognitive tests and are used to
measure the latent ability of a candidate to learn a given job if he/she is given the required training.
Aptitude tests have special significance where the new recruit has little or very less experience along
the lines of the job opening. Specific aptitude tests have to be designed for jobs that require
mechanical, clerical, musical, academic, linguistic, motor capacities and abilities. Bennett Test of
Mechanical Comprehension and the Stenquist Mechanical Aptitude Test are some of the examples of
popular mechanical aptitude tests. Aptitude tests for clerical jobs lay emphasis mainly on arithmetic,
handwriting, spellings, vocabulary, checking and so on. Aptitude tests help in detecting peculiarities
or defects in the applicant’s sensory or intellectual capacity.

3. Interest Tests:

Interest in a job or task contributes to success on the job. A person interested in his/her job is likely
to do better than one who is indifferent or uninterested. Interest tests have been designed to
discover a person’s field of interest and to identify the kind of work that will satisfy him/her. They are
in a sense inventories of the likes and dislikes of the people of some occupations. Although the
interest tests have been mostly standardised, some organisations have devel-oped tests to suit their
own requirements, especially when there is a continuing demand for a large number of new
personnel for a single job. Such developed tests are also known as ‘Tailor- made Tests’. Most widely
used interest scales are ‘Kuder Preference Record’, ‘Strong Vocational Interest Blank’, mechanical
reasoning tests and so on.

4. Personality Tests:

These tests aim at measuring the basic make-up or characteristics of an individual. They assess
his/her introversion motivation, emotional reactions, emotional matu-rity, stability, mood, value
system, ability to adjust, interpersonal relations, self-image, self- confidence, ambition, tact,
optimism, decisiveness, sociability, objectivity, patience, fear, distrust, suspicion, judgement,
dominance, impulsiveness, integrity, stability and so on. Industrial psychologists usually emphasise
the ‘big five’ personality dimensions as they apply to personnel testing.

Theses dimensions are as follows:

i. Extraversion (sociable, active, energy, zeal and so on)

ii. Emotional stability/neurolism (poor conditions, adjustment, insecurity, hostility, anxiety and so on)

iii. Agreeableness (trust, caring, gentle and so on)

iv. Conscientiousness (achievement and dependability)

v. Openness to experience (imaginative, unconventional, autonomous).

These are normally conducted for selecting supervisors and higher executives. These are pen and
paper tests.

Tests are also divided into the following three categories:

1. Objective tests – These tests measure neurotic tendencies, self-sufficiency, dominance,

sub-mission and self-control.

2. Projective tests – The candidate is asked to project his/her own interpretation into certain
standard stimulus situations. The way he/she responds to these stimuli depends on his/her own
values, motives and personality (e.g., Rorschach Blot Test and Thematic Apperception Test).

3. Situation tests – These tests measure the applicant’s reaction when he/she is placed in a pecu-liar
situation. Normally, in a leaderless group, problem is posed and solution is to be found out. A
situation test requires the examinees to respond to situations representative of jobs. Video-based
simulation is a situational test in which an examinee responds to video simula-tions of a realistic job
situation.

5. Intelligence Tests:

These tests aim at measuring the general level of intelligence of the appli-cant. This is done by
measuring the IQ of the applicant. In addition to this, they also measure a range of abilities such as
numerical ability, vocabulary, memory and verbal fluency. However, intelligence is usually measured
with individually administered tests such as the Wechsler Adult Intelligence Scale, Wonderlic
Personnel Test, Stanford-Binet Test, California Test of Mental Maturity (Adult Level), Kaufman
Adolescent and Adult Intelligence Test, Minnesota Paper Form Board Test (MPFB), Comprehensive
Test of Verbal Intelligence, Wide Range Intelligence Test and Slosson Intelligence Test.

Selection Test guidelines

a. Validation

Tests have become quite common means for determining the suitability of candidates for
employment. The assumption in using tests is that those who score above the cut-off point are
suitable for employment while those scoring below this point are unsuitable for employment. This
assumption is valid only when tests themselves have validity. Validity of a test is the degree to which
its prediction is supported by evidence, that is, higher scorers are better job performers. Validation is
the process of ensuring validity in a test. Validity of a test is necessary because of two reasons-

First, validity in a test is necessary to improve selection decisions. If the test is not valid, decisions
based on the test are no better than decisions without it.

Second, validity in a test ensures equity, that is, all applicants have been judged on fair basis; there is
no unfair discrimination against any candidate or group of candidates. There are three types of
validity that must be ensured in tests- content validity, construct validity, and criterion-related
validity.

1. Content Validity:
Content validity is the degree to which a test measures the knowledge, skills, and abilities
used on the job. All candidates for that job are given the same test so that applicants can be
properly compared. A simple example of a content-valid test is a typing test.

Such a test can approximate the work to be done on the job; the applicants can be given a
typical sample of typing, and their performance can be evaluated on that sample. Assuming
that the work on the test constitutes an accurate sample of work on the job, the test is
content valid.

2. Construct Validity:
Construct validity is the degree to which a test measures a particular trait related to
successful performance on the job. A trait is usually abstract in nature such as intelligence or
emotion, and is called construct. Unlike content validity, construct validity is quite complex
and difficult because it deals with abstract.

3. Criterion-Related Validity:
Criterion-related validity is the degree to which a particular test accurately predicts the level
of performance or important elements of work behaviour. This validity shows the
relationship between some predictor (say, test score) and a criterion of job success (say,
production output, managerial effectiveness, etc.). The relationship between predictor and
criterion is worked out in the form of validity coefficient which can vary, theoretically, from
+1.0 to -1.0, with former showing the highest positive coefficient and latter showing the
highest negative coefficient. The stronger the positive relationship, the more valid is the test.

4. Predictive Validity:
Predictive validity is the degree to which there is a relationship between test score and some
future desirable behaviour on the job. Predictive validity validates a test by using prospective
 applicants as a study group. The test is administered with its unknown validity on all
prospective candidates. At this level, the candidates are selected for employment on the
basis of some previously used selection criteria. However, their test scores are kept as a safe
record. After a lapse of some time, usually a year or so, these employees are evaluated on
the basis of their actual job performance. The evaluation scores are compared with test
scores of each employee to judge the relationship between test as a predictor and actual job
performance as a criterion. If the coefficient is high, the test is considered as valid. If the
coefficient is low, the test is worked out again. Though this method is costly and time-
consuming, it is preferable as it demonstrates relationship between the predictor and
criterion on actual basis.

5. Concurrent Validity:
An alternative to predictive validity is concurrent validity which is the degree to which a test
score is related to job behaviour measure that is available at the same time. Concurrent
validation method validates a test using the present employees as the subjects. Test scores
are immediately compared with the actual performance data of the employees to find out
the relationship between the predictor and criterion. If the relationship coefficient is high, it
shows that the test is valid. However, the concurrent validity leaves many questions to be
answered. It has been challenged on the premise that the present employees know the job
already and that a learning process takes time. Only considering the time and resources
saved, a well-conducted concurrent validity may be preferable to predictive validity. The
above two validation methods provide a means of obtaining validation information taking
small samples either of applicants or of present employees in a particular job. As such, they
may not reflect the diversity of future employees. To some extent, synthetic validity is the
right choice.
6. Synthetic Validity:
Synthetic validity involves taking parts of several similar jobs rather than one job to validate a
test. Thus, validity evidence is obtained by relating predictor scores to the same job
dimension across several jobs, combining the employees into a larger sample. For example, a
typing ability test might be validated against typing performance not only for typing clerks
but other personnel involved in typing work in an organization.

b. Reliability

Apart from validity, tests must have reliability, that is, they must have consistency in
measurement whatever they measure. This implies that an applicant’s performance on any given test
should produce same score each time the test is administered to him. If an applicant scores
significantly different on the same test at two points of time, the test cannot be considered reliable.
Reliability of a test has implications in measuring a person’s personality traits which do not change
with time and not in knowledge and skills which change with time. To measure reliability of a test,
test-retest method, alternative form method, and split halves method can be applied.

1. Test-Retest Method:
In test-retest method, a test is administered to an individual at two different time
periods and the scores obtained are compared. If the scores at two points of time are
similar, the test is said to be reliable.

2. Alternative Form Method:

 In alternative form method, two similar forms of a test are administered to an individual.
Their scores are recorded and compared to each other. If the two scores are similar, the
test is treated as reliable.

3. Split Halves Method:

In this method, a test is divided into two similar and equal parts. The scores of both the
parts are compared. If scores of both the parts are similar, the test is treated as reliable.
This method measures the internal consistency of the test.

c. Standardization

d. Competent Person

e. Objectivity

f. Imprecise

g. Weightage

Interview

1. Structured Interview − In this type, the interview is designed and detailed in advance. A structured
interview is pre-planned, accurate, and consistent in hiring the candidates.

2. Unstructured Interview − This type of interview is an unplanned one, where the interview
questionnaire is not prepared. Here, the effectiveness of the interview is very less and there is a
tremendous waste of time and effort of both the interviewer and the interviewee.

3. Group Interview − In this type of interview, all the candidates or a group of candidates are
interviewed together. Group interviews are conducted to save time when there is a large number of
applications for a few job vacancies. A topic will be given to discuss among the candidates and the
interviewer judges the innovativeness and behavior of each candidate in the group.

4. Depth Interview − Depth interview is a semi-structured interview, where the candidates have to
give a detailed information about their education background, work experience, special interests,
etc. And the interviewer takes a depth interview and tries in finding the expertise of the candidate.

5. Stress Interview − Stress interviews are conducted to discover how a candidate behaves in
stressful conditions. In this type of interview, the interviewer will come to know whether the
candidate can handle the demands of a complex job. The candidate who maintains his composure
during a stress interview is normally the right person to handle a stressful job.

6. Individual Interview − In an individual interview, the interview takes place one-on-one i.e., there
will be a verbal and a visual interaction between two people, an interviewer and a candidate. This is
a two-way communication interview, which helps in finding the right candidate for a vacant job
position.

7. Informal Interview − Such interviews are conducted in an informal way, i.e., the interview will be
fixed without any written communication and can be arranged at any place. There is no procedure of
asking questions in this type of interview, hence it will be a friendly kind of interview.
8. Formal Interview − A formal interview held in a formal way, i.e., the candidate will be intimated
about the interview well in advance and the interviewer plans and prepares questions for the
interview. This is also called as a planned interview.

9. Panel Interview − Panel interview, as the name indicates, is being conducted by a group of people.
In this type of interview, three to five members of the selection committee will be asking questions
to the candidates on different aspects. The final decision will be taken by all the members of the
panel collectively.

Placement and Induction

PLACEMENT

Meaning: - Placement is the actual posting of the candidate for the specific job. It involves the
assigning of specific rank & responsibility to that candidate.

Acc. to Pigors & Myers “Placement is the determination of the job to which an accepted candidate is
to be assigned & the work of that job. It is the match of what the supervisor has reason to think he
can do with what the job demands”.

The following principles are required to be observed while making placement of an employee:

(i) Job requirement – Man should be placed on the job according to the requirement of the job
rather than qualification and requirement of the man.

(ii) Qualification – The job offered should match with the qualification possessed by an employee.

(iii) Information – All the information relating to the job should be given to the employees along with
the prevailing working conditions. They should also be made known that they have to pay penalty for
wrong doing.

(iv) Loyalty and Co-operation – Every effort should be made to develop a sense of loyalty and co-
operation in employees to make them understand their responsibilities

Process of Placement

1: Collection of Data

The very first step in the process of employee placement is gathering employee data to identify the
skills, qualifications, and abilities of the existing workforce.

2: Evaluation

After data gathering of employees is completed, the next step comes into the picture which is
evaluating employee competencies to define what kind of job every employee fits best.

3: Allocation/Placing

This step deals with the activity of allocating employees to relevant and best-finding Jobs.

4: Control

The last step in employee placement is controlling. In this step monitoring and measuring the
performance of employees at their workplaces is done.

Importance of Placement in hrm

Placement in hrm is important for the following reasons:

1) Reduces Labour Turnover and Absenteeism

A proper placement of employee results reduces absenteeism and employee turnover leads to better
utilisation of machines, equipment and materials and thus, keeps the employee satisfied.

2) Improves Efficiency of Employee

Proper placement enhances employee efficiency, leading to better results, effective interpersonal
relationships, high morale, consistent attendance, and a reduction in mistakes.

3) Gives Motivation

Proper placement keeps the employee motivated by matching their skills to requirements and better
motivation results in better performance.

4) Keeps Employees Satisfied

The purpose of placement is to fit square pegs into square holes so that the efficiency of work is high
and the employees get personal satisfaction. When assigning jobs to new employees, it’s important
to consider both the organization’s requirements and the needs of the employees.

5) Improves Employee Morale

Proper placement helps to improve employee morale. If a candidate adapts to the job and continues
to perform as expected, it might mean that the candidate is properly placed.

Limitations of Placement in hrm

Placement in hrm is an important task within an organisation. It needs a clear-cut match between
the employees’ knowledge, skills, values, aptitude, and attitude with the job specification and job
description. Though the HR Manager takes all possible precautions some problems in appointments
crop up. These problems are as follows:

1) Job Expectations/Description

Sometimes, the expectations from the employee are more than his skills or abilities. Then the HR
manager finds the mismatch between the employee and the job.

2) Change in Technology

The technological changes bring radical changes in job descriptions and specifications. These changes
result in a mismatch between the job and the employee.

3) Social and Psychological Factors

The social and psychological factors involved in teamwork or group formation sometimes result in
mismatch.

4) Employee Expectations

Employees’ expectations from the job are the main source of the problems in placement. If the
employee expects a high salary, independent and challenging work but the job provides a low salary
and involves dependent, routine tasks, the employee may feel incompatible with the job.

5) Changes in Organisational Structure

The business’s grand strategies like mergers, acquisitions, downsizing, de-layering, etc., result in
changes in organizational structure and thereby changes in the jobs. These changes result in misfits
between the employee and the job.

6) Nature of Job

One of the challenges associated with placement is that we tend to look at the individual rather than
considering the requirements of the job. Often, the individual does not work independently of
others. Whether the employee works independently of others or is dependent depends on the type
of job.

Induction

Induction, also known as orientation, is a process of making the new employee familiar with the
work environment and the fellow employees. The new employee can be inducted into the
organisation by introducing his job, fellow workers, supervisors and his subordinates. He should be
oriented to the new organisation and its policies, rules and regulations.

Induction is a socialising process by which the organisation tries to make the new employee as its
agent for the achievement of its aims and objectives while the new individual employee seeks to
make the organisation an agency to achieve his personal goals. Induction makes the new employee
feel at home and helps him to adjust with the new environment in the organisation.

According to Edwin B. Flippo, “Induction is the welcoming process to make the new employee feel at
home and generate in him a feeling of belongingness to the organisation”

Objectives

The objectives of Induction are as follows:

1. To welcome the new employee, relieve his anxieties, and make him feel at home.

2. To develop a rapport between the company and the new employee and make him feel part of the
organisation as quickly as possible.

3. To inspire the new employee with a good attitude toward the company and his job.

4. To acquaint new employees with company goals, history, management traditions, policies,
departments, divisions, products, and physical layouts.

5. To communicate to new employees what is expected of them, their responsibilities, and how they
should handle themselves.

6. To present the basic information the employee wants to know: rules and regulations, benefits,
payday, procedures, and general practices.

7. To encourage the new employee to have an inquiring mind, show him how to learn, and assist him
toward ‘a discipline effort in developing additional knowledge.

8. To provide basic skills, terms, and knowledge of the business world and help the new employee in
human relations.

Need/Importance

1. Reducing Anxiety of New Employees – An employee’s first impression is the last impressions. If a
new employee is made to feel welcome and comfortable in the new environment, particularly by his
immediate superior and co-workers his anxiety would reduce and he would have the positive
attitude towards the organisation and his job.

2. Reducing Reality Shock – Every employee has some expectations when he joins his new job and
when these expectations do not match with the real situation, the employee experiences a reality
shock. An effective orientation programme helps in reducing these reality shocks by providing more
real expectations to the new employees.

3. Reduces Employee Turnover – If a new employee gets the impression of being unwanted or
ineffective he may react to these feelings by resigning. Turnover is generally high during this initial
period and the effective orientation in this phase can reduce this costly reaction.

4. Accommodating Employees – The orientation programme helps the new employees to

accommodate with the existing employees by developing the understanding on the various aspects
relating to the job with which the new employee is expected to confront.

5. Familiarizing the New Employees – Good orientation saves time because the employee would
become familiar with his work, supervisor, and coworkers. Explaining the functioning of the
organisation and the department during orientation will save the colleagues’ valuable time later in
explaining the job.

6. Developing Realistic Expectations – Effective orientation develops realistic expectations by letting

the employee know what is expected from him in terms of values, attitudes, work procedures, norms
of behaviour and dress code. All organisations have their own set of values, beliefs, code of conduct
which expects-their employee to follow. If the new employee learns and imbibes these during
orientation it would be much easier for him to incorporate them in his work values.

7. Increases Enthusiasm – Through effective orientation the newcomer is made aware of his job and
how his job fits with the total organisation; how he can contribute to the organisational effectiveness
and to whom he may look for in case of any problem. This creates more loyalty and enthusiasm in
the mind of the newcomer.

Limitations/ Problems

Following are the problems in the way of effective induction:

1. Lack of Training – The supervisor or immediate boss who provides the orientation to the new
comer may not be trained about the methods of orientation or sometime the supervisor may not
have the enough time to orient the new comer.

2. Large Information – The new comer is at once provided with the lot of information about the
mission, vision, goals, objectives, organisational structure, departments, duties, responsibilities etc.
that it becomes difficult for him to understand all such at once.

3. Administrative Work – When an employee joins the firm he has to fulfil many administrative
formalities and at the same time he is provided the orientation which increases the pressure in the
new comer.

4. Initial Jobs – At the initial stage employee is only provided with the manual jobs that discourages
job interest and company loyalty. So, the initial jobs to the new comer influence to a great extent the
interest of the employee in the organisation.
5. Trial and Error Induction – Employee is provided with the sketchy induction under the mistaken
belief that trial-and-error method is the best method of induction. This leads to the increase in
confusions and complexities in the mind of the new comer.

6. Balance in the Different Levels of Orientation – The new comer is forced to balance between the
broad orientation by the HR department and narrow orientation at the department level.