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CH-2
HUMAN RESOURCE PLANNING
[25%]

CONTE

2.1 Human Resource Planning: Process, Forecasting demand & supply, Skill
inventories.
2.2 Brief Idea of HRIS (Human Resource Information System),
2.3 successions planning,
2.4 Job analysis – Uses, methods, Job description & Job specifications.
2.5 Recruitment, Selection & Orientation: internal & external sources,

e-recruitment, selection process, orientation process.

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2.1 Human Resource Planning: Process, Forecasting demand & supply,
Skillinventories.
HRP is an integral part of the overall planning of any business unit. No business can prosper in the
absence of sincere efforts of personnel is fact that requires no further explanation.
Human resource planning is the most important managerial function of an organization. It ensures
three main things:
 It ensures adequate supply of human resources.
 It ensures proper quality of human resources.
 It ensures effective utilization of human resources.
Human resource planning must be directed towards clear and well-defined objectives. Human
resource plan must ensure that it has the right number of people and the right kind of people at the
right time doing work for which they are economically most suitable. Human resource planning
should pave the way for an effective motivational process.
HRP or MPP is essentially concerned with the process of estimating and projecting the supply and
demand for different categories of personnel in the organization for the years to come.

According to A. R. Smith, “Human Resource planning involves the projection of manpower

demand, the projection of manpower supply, and action to bring supply and demand into balance at
a desirable level.

According to Geisler, “HRP is the process including forecasting, developing and controlling by
which a firm ensures that it has the right number of people and right kind of people, at the right
places, at the right time doing work for which they are economically most useful.”

Objectives of HRP
 To ensure optimum use of existing human resources.
 To forecast future requirements for human resources.
 To provide control measures to ensure that necessary human resources are available as and when
required.
 To link HRP with organizational planning.
 To assess the surplus and shortage of human resources.
 To anticipate the impact of technology on jobs and human resources.
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 To determine levels of recruitment and training
 To estimate the cost of human resources and housing needs of employees.
 To provide a basis for management development programmes.
 To meet the needs of expansion and diversification programmes.

Characteristics:
 HRP is a forward looking function, and continuous process.
 It is subject to revision as per the changing needs.
 It is an integral part of overall organizational objectives.
 It focuses on providing right number of qualified people at any time required.
 Man power plan is prepared for both long and short term.

Process of HRM

Step: 1 Environmental Scanning:

It refers to the systematic monitoring of the external forces influencing the organization.
Manager monitor several forces but the following are pertinent for HRP:
• Economic factors, including general and regional conditions.
• Technological changes, including robotics and automation.
• Demographic changes, including age, composition and literacy.
• Political and legislative issues, including laws and administrative rulings.

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By scanning the environment for change that will affect an organisation, managers can anticipate
their impact and make adjustments early.

Step: 2 Organizational objectives and Policies

HR plans need to be based on organisational objectives. In practice, this implies that the objectives
of the HR plan must be derived from organisational objectives.
 Organisational objectives are defined by the top management and the role of HRP is to
sub servethe overall objectives by ensuring availability and utilization of human resources.
 Once the organisational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objectives with regard to HR utilization in
the organisation.
In developing these objectives, specific policies need to be formulated to address the following
questions:
 Are vacancies to be filled by promotions from within or hiring from outside?
 How do the training and development objectives interface with the HRP objectives?
 How to enrich employee’s job? Should the routine and boring jobs continue or be eliminated?
 How to ensure continuous availability of adaptive and flexible workforce.

Step: 3 HR Demand Forecast

Demand forecasting is the process of estimating the future quantity and quality of people required.
The basis of the forecast must be annual budget and long term corporate plan, translated into activity
levels for each function and department.
 Demand forecasting must consider several factors-both external as well as internal. Among
external factors are competition, economic climate, laws and regulatory bodies, changes in
technology and social factors.
 Internal factors include budget constraints, production levels, new products and services,
organisational structure and employee separation.
There are several good reasons to conduct demand forecasting.
It can help:
(1) quantity the jobs necessary for producing a given number of goods, or offering a given amount
of services,
(2) determine what staff-mix is desirable in the future,
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(3) assess appropriate staffing levels in different parts of the organization so as to avoid unnecessary
costs,
(4) Prevent shortage of people where and when they are needed most,

(5) monitor compliance with legal requirements with regard to reservation of jobs.

Forecasting the manpower demand can be possible by way of following techniques of demand
forecasting.
1) Managerial Judgment
2) Ratio-trend Analysis
3) Regression Analysis
4) Work study techniques
5) Delphi techniques
6) Flow Models

Managerial Judgement:
This method is easy to use as well as less time consuming. In point of analysis it is also said as
“simple to understand”.
 In this method for forecasting future human resource need of an organization, either
“Bottom up” or “top down” approach is applied.
 In “Bottom up” approach, line managers prepare departmental requirements for human
resource and then submit such departmental proposal of human resource to the managers
for their review and consideration.
Whereas in “top down” approach, the top managers prepare the departmental forecasts which are
then reviewed with departmental heads for their consideration.
Both approaches cannot provide 100% accurate and positive results because forecasts based on such
approaches may suffer from subjectivity. So, experts suggest that a combination of both approaches
can give positive results if applied efficiently.
“Management judgment” method is proper utilized only for small business organisation.

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Ratio-trend Analysis
This is the quickest forecasting technique. Ration trend analysis involves studying past ratios and
forecasting future ratios making some allowances for changes in the organisation or its methods.
 The technique involves studying past ratios, say between the number of workers and sales
in an organisation and forecasting future ratios, making some allowances for changes in the
organisationor its method.
 Demand for manpower/human resources is also estimated on the basis of ratio of
production level and number of workers available. This ratio will be used to estimate
demand of human resources.

Example: how an analysis of actual and forecast ratios, between the number of routine proposals to
be processed by an insurance company’s underwriting department and the number of underwriters
employed could be used to forecast future requirement.
Year Ratio
Production Inspector Inspector: Production
Actual -3 1500 150 1:10
-2 1800 180 1:10
Last Year 2000 180 1:11
Next Year 2200 200 1:11
Forecast +2 2500 210 1:12
+3 2750 230 1:12

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Regression Analysis
This is similar to ratio-trend analysis in that forecast is based on the relationship between sales
volume and employee size. However, regression analysis is more statistically sophisticated.
 A firm first draw a diagram depicting the relationship between sales and workforce size.
 It then calculates regression line- a line that cuts right through the center of the points on
the diagram.
 By observing the regression line, one can find out number of employees required at each
volume of sales.

Work study Technique

Work study method can be used in the following situations:
1) When it is possible to measure work
2) When it is possible to set standards
3) Where job methods do not change frequently.
In work study method, the length of operations and the amount of labour required are to be
measured.
Work study” method can be well explained by way of following example:
Planned output for next year 30,000 units
Standard hours per unit 4

Planned hours for the year 1, 20,000

Productive hours per man
(Allowing normal overtime,
Absenteeism and idle time) 2000
Number workers required
(1, 20,000 /2000) 60

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From the above example, we can say that the number of workers required doing thegiven
work/job.
Delphi technique
“Delphi” method is named after the ancient greek oracle at the city of Delphi.

This is a method offorecasting manpower needs.

 It solicits estimates of personnel needs from a group of experts, usually managers.
 This technique takes into consideration human resources requirements given by a group of
experts i.e. mangers.
The human resource experts collect the manpower needs, summaries the various responses and
prepare a report. This process is continued until all experts agree on estimated human resources
requirement.
Limitations of this technique:
It is extremely time consuming and hence, not appropriate to apply when a speedy decision is
demanded.
It is more complex technique. In short it is not easy to adopt.

Flow model
Flow models are very frequently associated with forecasting personnel needs. The simplest one is
called the Markov model.
 Determine the time that should be covered. Shorter lengths of time are generally more accurate
than longer ones. However, the time horizon depends on the length of the HR plan which, in
turn, is determined by the strategic plan of the organization.
 Establish categories, also called states, to which employees can be assigned. These categories
must not overlap and must take into account every possible category to which an individual can
be assigned. The number of states can neither be too large nor too small.
 Count annual movements (also called ‘flows’) among states for several time periods. These
states are defined as absorbing (gains or losses to the company) or non-absorbing (change in
position levels or employment status). Losses include death or disability, absences, resignations
and retirements. Gains include hiring, rehiring, transfer and movement by position level.

 Estimate the probability of transitions from one state to another based on past trends. Demand
is a function of replacing those who make a transition.

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Step: 4 HR Supply forecast
Determine whether the HR department will be able to procure the required number of personnel.
Specifically, supply forecast measures the number of people likely to be available from within and
outside an organisation.
After estimating manpower demand it is necessary to turn to manpower supply.
i. Internal Supply
ii. External supply
I. Internal Supply
With the help of competent HR Audits. HR planners can make the analysis of internal analysis.
Followings are methods to forecast internal supply of manpower.

Management inventory:
HR audits summaries each employee’s skills and abilities. In short analysis of present employees
can be greatly facilitated by HR audits.
 The audits of manager are called “management Inventories” whereas the audits of non
managersare called “Skill inventories”.
 Management inventories include following data of manager.
 Work History, strength and weaknesses, career goals, personal data, promotional potential.
Skills Inventory:
An inventory of skills is also undertaken along with manpower inventory.
 This will show the skill and capability of the employees at all levels of organisation. It is
an inventory not only of business skill, but that of technical skill and some other relevant
qualificationalso.
 It will help to take correct decisions as to which plans of expansion would be feasible.
 The company can have reliable information of whether the skill that the implementation of
new plans requires is a available to it to the full extent.
Conditions of work and absenteeism:
Changes in work conditions such as normal weekly working hours, length and timings of holidays,
overtime policies, retirement policy, shift systems, policy for employing part time workers etc
should be needed to examine.

If an employee does not come to attend his duties when he is scheduled to do so, it is called
absenteeism.

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High rate of absenteeism disrupts the time schedule of production and sale.
Therefore, management must look into the causes of high rate of absenteeism and try to remove
them as far as possible.
Labour turnover:
Appointing new employees in place of those who leave the organisation is referred to as labour
turnover.
 Labour turnover is caused by resignations, retirement or death of some of the existing
employees. The management has to keep in mind the extent of labour turnover thus caused.
 Through this method of measurement is not completely reliable, it is useful for inter-firm
comparison.
This method does not help us to know how many workers have remained continuously with the firm
during the year as a whole.
II. External supply
The manager in charge of manpower planning has to arrange for the supply of labour to meet fully
with the firms requirements of labour.
 If adequate labour is not available from internal sources, the manager must try to tap the
externalsources.
 This search may be wide enough to cover the labour market in the country as a whole or it
may be limited to local market only.
Step: 5 HR Plan Implementation
Implementation requires converting an HR plan into action. A series of action programmes are
initiated as a part of HR plan implementation.
Some such programmes are recruitment, selection and placement, training & development,
retraining and redeployment, the retention plan, the redundance plan and succession plan.
Step: 6 Control & Evaluation
Control and evaluation represents the fifth and final phase in the HRP Process.
The HR plan should include budgets, targets and standards.
It should also clarify responsibilities for implementation and control, and establish reporting
procedures which will enable achievements to be monitored against the plan.
These may simply report on the numbers employed against establishment and on the numbers
required against the recruitment targets.

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2.2 Brief Idea of HRIS (Human Resource Information System)
HRIS DEFINED
Human Resource Information Systems (HRIS) is a process that utilizes the information technology
for the effective management of human resource functions and applications. It is a computerized
system typically comprising a data base or inter related data base that track employees and their
employment specific information.
It can be briefly defined as integrated systems used to gather, store and analyze information
regarding an organizations human resources.
HRIS – Why it is needed?
HRIS provide human resource professionals with opportunities to enhance their contribution to the
strategic direction of the firm, First by automating and devolving many routine human resource task
to the line management, HRIS provides human resource professionals with the time needed to direct
their attention towards more business critical and strategic level tasks, such as leadership
development and talent management.
Other incentives for HRIS implementation are mentioned as following.
* Formulation of policies and programs related to human resource.
* Facilitating decision making in areas like promotion, transfer, nomination, setting
employees provident funds, retirement, gratuity, leave travel concession and earned leave
compensation.
* Supplying data and submitting returns to government and other statutory agencies.
* Collecting appropriate data and converting them to information and knowledge for
improved timeless and quality of decision making.
* Producing a greater number of varieties of accurate and real time human resource related
reports.
* Increase competitiveness by Reengineering human resource processes and functions.
* Improving employee satisfaction by delivering human resource services more quickly and
accurately.
* Provides a comprehensive information picture as a single, integrated data base; this enables
organizations to provide structural connectivity across units and activities and to increase
the speed of information transactions.
 Benefits for human resource department includes:
* Possession of single data base of all employees in the company with all necessary

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information and opportunities of different reports.
* Elimination of paper forms that are much slower and with higher probability of
errors.
* The ability to update data bases in real time, on the basis of all changes, which is
of extreme importance to regionally diversified companies.
*Minimize errors that are caused by human factor.
* Improved management system in accordance with the legislation.
* Elimination or reduction of redundancy in the system.
* Standardization of business processes.
Benefits for employees:
* Saves time (Time management)
* The possibility of independent access to data, which often means working in one
software window.
* 24/7 data availability.
* Increasing staff morale.
* Automatic tracking and reminder to business obligations and events.
* Encouraging employees to make decisions and initiatives on the basis of
information obtained in the HRIS system.
* The ability to attend internal training courses via the web and the development of
personal skills and knowledge.

2.3 Succession planning

Succession planning is a process whereby an organization ensures that employees are recruited
and developed to fill each key role within the company.
Succession planning is a process of ensuring a suitable supply of successors for current and future
key jobs.
 It is an essential activity that focuses on planning and managing the career of individuals to
optimize their needs and aspirations.
 A succession of persons to fill key positions over time is essential for the survival and
success of an organisation.
 The purpose of succession planning is to identify and develop people to replace current
incumbents in key positions in cases of resignation, retirement, promotions, growth,
expansion and creation of new positions.

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 Succession by people from within provides opportunitiesto employees for progress in their
careers.
Need of Succession Planning:
 Ensures Business Continuity: Succession planning ensures business continuity. It means the
organization does not cease to exist when the key positions become vacant due to sudden death,
resignation or retirement.

 Develops Potential Employees: Succession planning is important for grooming and developing
competency of the next possible successor. The right training helps the potential successor to
improve his strengths and overcome weaknesses. It also prepares him for various duties,
challenges that he might face in future if he fills up the position.
 Identifies Next Successor: The process helps to identify next possible successor in advance.
Identification of successor in advance (before retirement/resignation/death of person on the key
position) helps the organization to plan for future. Every business organization must invest in
identifying the next successor for the organization.
 Smooth Functioning: Succession planning ensures smooth functioning of the organization.
There is supply of competent and skilled employees to take up the role or responsibility of key
manager whenever the need arises. Hence, temporary or sudden absence of key manager does
not halt the activities of the organization.
 Reduces Cost of the Organization: With succession planning, the demand for human resources
is met within the organization. It lowers the cost of organization as the time, money, energy
required to recruit employee from external source is saved.
 Corporate Image: Organization invests in identifying and grooming employees. It also
provides varied growth opportunities within the organization. This increases job satisfaction of
employees, which results in increased performance and productivity. This ultimately improves
image of the organization in market and attracts competent workforce towards the organization.

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

Features of succession planning

 Systematic Process: Succession planning is the systematic process of defining future
management requirements and identifying candidates who best meet the requirements.
 Supply of Labour: Succession planning ensures supply of labour within the organization for
future staffing needs. With succession planning the skills and abilities of current manpower are
assessed to see which future positions they may take within the organization when other
employees leave their positions.
 Used for Higher Level Organizational Positions: Succession planning is typically used for
higher level organizational positions such as executive level positions. Like if a company
predicts that its CEO will retire in near future, the organization may begin looking months or
even years in advance to determine which current employee might be capable of taking over the
position of CEO.
 Internal Selection: Succession planning makes use of internal selection as opposed to hiring
employees from outside the organization. With internal selection, the organization becomes
aware of current employee skills and abilities and therefore is often better able to predict future
performance than when hiring from outside.

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2.4 Job analysis – Uses, methods, Job description & Job

specifications.

 Job analysis:
A job is a position or a group of positions involving the same tasks, duties and responsibilities which
are regularly assigned to individual employees.
For Example, typing can be described as a job. To operate a milling machine is also a job. It is true
that one or many persons may be employed in the same job.
 Job analysis is a procedure by which the facts with respect to each job are systematically
studied. It is sometime called job study also.
 Thus, job analysis is the study of what a job is, in what sequence it is performed and what
qualifications are required in an employee to perform it successfully.
Job analysis is the complete study of the job embodying every known and determinable factor
including
(1) the duties and responsibilities involved in its performance,
(2) the conditions under which performance is carried on
(3) the nature of the task
(4) the qualifications required in the worker, and
(5) the conditions of employment such as pay, hours, opportunities and privileges.
Job Description summaries in a systematic order the facts revealed by the job analysis. It describes
the work performed, the responsibilities involved, the skill or training required, the conditions under
which the job is done, and the type of personnel required for the job.
Job specification is a product of job analysis and job description. It is a written record of the
personal characteristics required in an individual worker for doing a given job.

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Job Evaluation is the process of evaluating a particular job in relation to other jobs either within or
without the organisation. In other words, it is the study of the job’s worth in relation to other jobs
for the purpose of establishing scientific wage rate differentials on the basis of the job requirements.

Definition of Job Analysis

According to Date Yoder, “job analysis is the procedure by which facts with respect to each job
are systematically discovered and noted”
According to John A. Shubin, “job analysis is the methodical compilation and study of work data
in order to define and characterize each occupation in such a manner as to distinguish it from all
others.
Types of job Analysis
From the viewpoint of the purpose, there are two types of job analysis
I) Single Purpose Job Analysis: if the data relationship to a job is collected and studied with a
specific single purpose in mind, then it is known as a single purpose job analysis.
II) Multipurpose job Analysis: if the data relating to a job is studied to serve more than one
purpose, it is called multipurpose job analysis.
For Example: Better selection, better training, more effective controls etc may be the objects of
job analysis.

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PROCESS OF JOB ANALYSIS

Organisational Analysis

Organizing Job Analysis Programme

Deciding the uses of job Analysis

information

Selecting Representative jobs for Analysis

Understand job Design

Collection of Data

Developing a job Description

Preparing a job Specification

Step: 1 Organisational Analysis

First of all an overall view of various jobs in the organisation is obtained. This is required to judge
the linkages between jobs and the organisational goals, interrelationships among jobs and the
contribution of various jobs to effectiveness of the organisation.
 For this purpose background information is collected in the form of organisation charts,
class specification, work flow charts, etc.
 Organisation charts show the relation of the jobs in the organisation. Class specification
describes the general requirements of the job family. Work flows charts indicate the flow of
activities involved in a job.
Step: 2 Organizing Job Analysis Programme
It is necessary to plan and organize the programme of job analysis. The company must decide who
will be in charge of the programme and must assign responsibilities.

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A budget and a time scheduleshould be developed.
Step: 3 deciding the uses of job Analysis information
It has been stated above that information generated by job analysis can be utilized for practically all
functions of human resource management.
Step: 4 Selecting Representative jobs for analysis
It would be highly time consuming and costly to analyze all the jobs.
 It is, therefore desirable to select a representative sample of jobs for the purpose of detailed
analysis. Priorities of various jobs needing analysis can also be determined.
Step: 5 Understand job design
The job analyst should obtain information concerning the current design of the representative job.
For this purpose, current job description and job specification, procedure manual, system flow
charts, etc can be studied.
Step: 6 Collection of data
In this step data on the characteristics of the jobs and qualifications and behaviour required to do
the job effectively is collected.

 Data may be collected from the employees who actually perform the job, or from their
supervisors from outsiders called trade job analysis appointed to watch employees
performing the job.
Several alternative methods of collecting job information are available and may be used. Like,
Questionnaire method, interview method, observation method.

Step: 7 developing a job description

The information collected in the previous step is used in preparing a job description. This is a written
statement that describes in brief the tasks, duties and responsibilities which need to be discharged
for effective job performance.
Step: 8 preparing a job specification
The last step in job analysis is to prepare a job specification or employee specification. This is
written statement which specifies the personal attributes in terms of education, training, experience
and aptitude required to perform the job.

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Methods of Job Analysis

1 Observation Method: In this method the job analyst observes the employees work and records
all the tasks that are performed and also those that are not performed. This may seem to be an easy
method of job analysis, but it is the most difficult one. The main reason being that every person has
a different way of observing things, which might involve personal bias, likes and dislikes which will
not give the desired results.
Nevertheless, it is desirable to focus on a few priority areas in which the job analysis information is
to be used.
These areas can be decided on the basis of the needs, priorities and constraints of the particular
organisation.

1 Interview Method: In this method the manpower is interviewed. The employee under this method
comes up with different ideas towards their working style, problems faced by them and
uncertainties or insecurities faced by them. It helps the organization in knowing exactly what the
employees are thinking about their jobs. This helps in minimizing errors as not only one employee
is interviewed, but everyone in the organization is interviewed.
2 Questionnaire Method: This is another common method of Job Analysis, which uses a
questionnaire to be filled by the employees. Care should be taken while framing questions for this,
because this method also suffers from bias by the superiors. It is always better if the staff is
communicated in a better way to make them understand that the data collected is for their own good.
Here different types of questionnaires are prepared for different grades which is also time
consuming.
3 Checklists: The checklist method of job data collection differs from the questionnaire method in
the sense that it contains a few subjective questions in the form of yes or no. The job holder is asked
to tick the questions that are related to his/her job. Checklist can be prepared on the basis of job
information obtained from various sources such as supervisors, industrial engineers, and other
people who are familiar with the particular job.
Once the checklist is prepared, it is then sent, to the job holder to check all the tasks listed in the list
he/she performs. He/she is also asked to mention the amount of time spent on each task by him/her
and the type of training and experience required to do each task. Information contained in checklist
is, then, tabulated to obtain the job-related data.Like questionnaire method, the checklist method is
suitable in the large organisations wherein a large number of workers are assigned one particular
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job. Since the method is costly and, therefore, is not suitable for small organisations.
4 Critical Incidents: This method is based on the job holder’s past experiences on the job. They
are asked to recapitulate and describe the past incidents related to their jobs. The incidents so
reported by the job holders are, then, classified into various categories and analysed in detail. Yes,
the job analyst requires a high degree of skill to analyse the incidents appropriately described by the
job holders. However, this method is also time-consuming one.

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Job description and job specification

What is Job Description?
A job description is the detailed job information in a written format stating the role, responsibilities,
duties, job title, job location, etc. It is
usually prepared by the human resource
manager to invite applications from the
prospective candidates to fill up the vacant
job position.
Components: A job description consists of
all the relevant information about a
particular position or post in a company. It
includes the following:

 Job Title is the name of the post

vacant
 Job Location is the branch of the company where the candidate will be posted after selection.
 Role refers to the arena of work and how the responsibilities are to be fulfilled, defined by
the company.
 Responsibilities and Duties is a list of various job-related activities which the candidate is
supposed to perform and take account of his actions.
 Salary is the pay scale which the company is ready to offer for that particular job. It may or
may not be negotiable.
 Incentives refer to commission and remuneration associated with the targets achieved.
 Allowances are the other benefits and expenses which the company pays on behalf of the
candidate.

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What is Job Specification?

A job specification is the written declaration of the attributes, skills, knowledge, educational
qualification and experience which a person must possess to perform a particular job. After
preparing a job description, the manager analyzes the necessary abilities and attributes needed for
accomplishing the task and thus drafts a job specification.

Components:

 Educational Qualification defines the specific requirement regarding academic knowledge

of a person. It includes his school education, graduate, post-graduation and other such
qualifications of which he holds degree or mark sheet.
 Skills Required refers to the particular set of special abilities which are essential for the proper
execution of the given tasks. The company may or may not ask for the certificate of training
in such skills from the candidates.
 Experience is the information of all the past and present employment or association of the
candidate, including the name of the company, post, duration, salary package, job profile, etc.

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Difference between Job Description & Job Specification

Job Description Job Specification

Job Description is all about the job Job specification is all about the attributes
which the management is looking for in the
right candidate.
Job description refers to all about the tasks and Job specification refers to the level of skills and
responsibilities expected to be performed. experiences that a candidate must have to be
selected for the job.
Job description cannot be called as “employee Job specification can be called as “employee
specification” because it is all about job. specification” because this is what the
organization is looking for in the employees
selected for the job.
Job description describes the work performed, Job specification refers to only one portion of
the responsibilities involved, the skill or training the job description the portion that outlines the
required, the conditions under which the job is personal requirements of the employees such as
done and the type of personnel required for the age, experience, special skills and other
job. qualification.
Job description summaries in a systematic order Job specification is a product of job analysis and
the facts revealed by the job analysis. job description.

2.5 Recruitment, Selection & Orientation: internal & external sources, e-

recruitment, selection process, orientation process.
 Meaning & Definiton of Recruitment:
Recruitment is the process of seeking and attracting the right kind of people to apply for a job in an
organisation. Recruitment is the process of selecting the most suitable candidate for a specific job
requirement.

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According to Flippo, “Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organisation.”

Objective of Recruitment:
 Determine the present and future requirements of the firm in conjunction with its personnel
planning and job analysis activities.
 Increase the pool of job candidates at minimum cost.
 Help reduce the probability that job applicants, once recruited and selected, will leave the
organisation only after a short period of time. 
 Increase organisational and individual effectiveness in the short term and long term.
 Evaluate the effectiveness of various recruiting techniques and sources for all types of job
applicants.
 Attracts highly qualified and competent people.
 Help the firm create more culturally diverse work force.
Sources of Recruitment
There are two sources of recruitment i.e., Internal and External sources.
(I) Internal Sources:
Best employees can be found within the organisation. When a vacancy arises in the organisation, it
may be given to an employee who is already on the pay-roll. Internal sources include promotion,
transfer and in certain cases demotion. When a higher post is given to a deserving employee, it
motivates all other employees of the organisation to work hard. The employees can be informed of
such a vacancy by internal advertisement.
Previous Applicants: To fill up the immediate openings, calling up or emailing the candidates who
have previously applied to the organisation is the cheapest and quickest source of recruitment.
Present Employees: The recruiter can exercise promotion (to a higher position) or transfer (inter-
department or inter-branch transfer) of the current employees instead of recruiting the new
employees.
Employee Referrals: Sometimes, the organisation hires the candidates referred by the existing
employees assuming that such candidates are more trustworthy and reliable.
Former Employees: Some organisations provide for an option of re-joining to its ex-employees.
They even consider the retired employees who are willing to give their full time or part-time services
to the organisation.

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(II) External Sources of Recruitment
External sources of recruitment signify the hiring of those employees who have never been
associated with the organisation before. The organisation needs to include new and fresh talent to
become successful and to survive in the competition. Large organisations mostly depend on external
sources of recruitment.
Following are the various external sources through which the organisation acquire new resources:
Advertisements: The organisation advertises the job openings in the newspaper, media, company’s
bulletin, social networking sites (Facebook, LinkedIn, Twitter), job portals, etc.
Campus Recruitment: The organisation collaborates with the educational institutes and colleges
to hire their students for the available job vacancies, by conducting the recruitment process in the
respective college campus.
E-Recruitment: The organisation uses the web-based software as a source of recruitment involving
electronic screening of candidates, online skill test, online profile checks and interviews on video-
conferencing.
Employment Exchange: The organisation gets itself registered with the employment exchange, i.e.
a government-affiliated agency who have a database of many prospective candidates. These
candidates register with such employment exchanges in search of better job opportunities.
Outsourcing Consultancies: Some private consultancies are professionally working to recruit
employees on behalf of the organisation. The organisation hires such consultants on a commission
basis to acquire the desired human resource.
Walk-ins and Write-ins: The organisations without any effort, get random applications when the
job seekers submit their CV. Either by visiting the organisation, posting the letter with CV or mailing
the CV on the company’s mail id.
Contractors: The organisation hires a contractor who provides casual workers temporarily,
especially for a particular project, and such workers have no existence in the company’s records.
Acquisition and Mergers: At the time of the company’s merger or acquisition of another company;
it has to lay off some of its employees as well as recruit new talents. The company structure changes
drastically.
Professional Associations: Professional associations facilitates the organisation to fill in the vacant
position by advertising it in their journal or magazines. It also offers job opportunities to the highly
educated, skilled or experienced resources who are experts in their fields and hold a membership
with such associations.

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E-Recruitment:
Organizations advertise the job vacancies through the world wide web or send the information
directly to the most competent people through e-mail.
 E-recruitment manages job descriptions and job vacancies, search for candidates and the
interview process. It is also referred to as an applicant-tracking system, this is a web based
application that enables the electronic handling of organizational employment needs.
 E-recruitment carry out:
Storage of applicants details.
Retrieval and modification of those details.
Matching CV to job specifications and short listings.
Link with internet recruitment process. (Mail)
Management reports, analysis of response to media etc.

 Selection
In simple words, selection is hiring the best candidate from the pool of applicants.
In other words, we can say that selection is the process of picking the appropriate candidates from
the pool of job applications to fill various jobs in the organisation.
According to Koontz, “selection is the process of choosing from among the candidates from within
the organisation or from the outside, the most suitable person for the current positions or for the
future position.”
According to David and Robbins, “Selection is managerial decision making process to predict
which job applicants will be successful if hired.

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PROCESS OF SELECTION

Preliminary Interview

Selection Tests

Employment Interview

Reference and Background Check

Selection Decisions

Physical Examination

Job offer

Employment contract

Evaluation

Step: 1 Preliminary Interview:

It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down
by the organization.
The skills, academic and family background, competencies and interests of the candidate are
examined during preliminary interview. Preliminary interviews are less formalized and planned than
the final interviews.
The candidates are given a brief up about the company and the job profile, and it is also examined
how much the candidate knows about the company. Preliminary interviews are also called screening
interviews.
Step: 2 Selection Test:
Recruiting personnel is a long and expensive process. It is very important that a company gets it
right, if the company hires someone that turns out to be unsuitable then it costs time, money and
potential new clients.
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There are several types of tests in selection:

(A) Ability test: Assists in determining how well an individual can perform task related to the
job.

(B) Aptitude test: Help determine a person’s potential to learn in a given area.
(C) Personality test: to measure a prospective employees motivation to function in a particular
working environment.
(D) Interest test: to measure an individual’s activity preferences.
(E) Graphology test: to predict success or failure through one’s handwriting.
(F) Medical test: To determine physical fitness of a candidate.
(G) Genetic test: To identify genetic predispositions to specific medical problems
Step: 3 Employment Interview:
It is a one to one interaction between the interviewer and the potential candidate. It is used to find
whether the candidate is best suited for the required job or not. But such interviews consume time
and money both.
Moreover the competencies of the candidate cannot be judged. Such interviews may be biased at
times. Such interviews should be conducted properly. No distractions should be there in room. There
should be an honest communication between candidate and interviewer.
Different types of interviews:
One-to-one interviews: this is the most common type of interview. The one-to-one interview the
candidate for employment meets directly with the interviewer.
Sequential interview: in the group interview style will be interviewing.
Simultaneously with two or three other candidates all waiting for the same position.
Takes the one-to-one a step further and involves a series of interviews, usually utilizing the strength
and knowledge base of each interviewer. So that interviewer can ask question in relation to his or
her subject area of each candidate, as the candidate moves from room to room.
Panel interview: A panel interview involves three or more members of the hiring organisation
meeting simultaneously with the person being considered for the position.
This interview style is most common in academia or when hiring a senior level corporate executive.
Unstructured interviews: unplanned, non-directed, uncontrolled, unformatted, bilateral
communications and flexible. They require skills in questioning and probing.
Structured interviews: Pre-planned, interviewer directed, standardized, pre-formatted and
inflexible. They have a full structure and use highly-designed, closed questions.
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Stress interview: is a series of harsh and rapid fire questions intended to upset the applicant.
Step: 4 References and Background Check:
Many employers request names, addresses and telephone numbers or reference for the purpose of
verifying information and gain additional background information about applicant.
The main purposes of it are:
 To gain insight about the potential employee from people who have had experience with them.

 To assess the potential success of a prospect

Step: 5 Selection Decisions:
Selection decision the most critical of all the steps-must is made. The other stages in the selection
process have been used to narrow the number of candidates.
The final decision has to make from the pool of individual who pass the tests, interviews and
reference checks.
The view of the line manager will be generally considered in the final selection because it is he/she
who is responsible for the performance of the new employees.
The HR manager plays a crucial role in the final selection.
Step: 6 Physical Examination:
After selection decision and before the job after offer is made, the candidate is required to undergo
a physical fitness test.
A job offer is, often, contingent upon the candidate being declared fit after the physical examination.
One reason for a physical test is to detect if the individual carries any infectious diseases. Second,
the tests assist in determining whether an applicant is physically fit to perform the work.
Such an examination will protect the employer from workers compensation claims that are not valid
because the injuries or illnesses were present when the employee was hired.
Step: 7 Job offer:
The job offers to for those applications that have crossed all the previous hurdles.
It is made through a letter of appointments. The letter contains a date of appointment on which he
has to join his duty.
Step: 8 Employment contract:
The job offer has been made and the candidate accepts the offer, certain documents need to be
executed by the employer and the candidate.
The basic information in this contract is:
 Job title

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 Duties and responsibilities
 Rate of pay
 Date of starting job
 Hours of work
 Holiday arrangements
 Disciplinary procedure
 Work rules
Step: 9 Evaluations:
The broad test of the effectiveness of the selection process is the quality of the personnel hired.

A firm must have competent and committed personnel.The selection process, if properly done, will
ensure availability of such employees. Audit must be conducted by people who work independent
of the HR department. Audit of the selection programme include: analysis of the programme, how
well is the programme implemented? Feedback, analysis of results.
 Orientation:
Induction, also called orientation is designed to provide a new employee with the information he or
she needs to function comfortably and effectively in the organization. It is a planned introduction of
new hires to their jobs, their peers and the company.

Typically, orientation conveys three types of information –

(i) general information about the daily work routine;
(ii) a review of the firm’s history, founding fathers, objectives, operations and products or
services, as well as how the employee’s job contributes to the organization’s needs; and
(iii) a detailed presentation, perhaps, in a brochure, of the organization’s policies, work rules
and employee benefits.
Once an employee is selected and placed on an appropriate job, the process of familiarizing him
with the job and the organization is known as induction.

Orientation is the process of receiving and welcoming an employee when he first joins the companyand
giving him basic information he needs to settle down quickly and happily and starts wo

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Objectives of Orientation
 To help the new comer to overcome his shyness and overcome his shyness nervousness in
meeting new people in a new environment.
 To give new comer necessary information such as location of a café, rest period etc.
 To build new employee confidence in the organization.
 It helps in reducing labour turnover and absenteeism.
 It reduces confusion and develops healthy relations in the organization.
 To ensure that the new comer do not form false impression and negative attitude towards the
organization.
Contents of Orientation Programme
 Brief history and operations of the company.
 The company’s organization structure.
 Policies and procedure of the company.
 Products and services of the company.
 Location of department and employee facilities.
 Safety measure.
 Grievances procedures.
 Benefits and services of employee.

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