Introduction to Human Resource Management

Every business unit needs human resource (manpower) for the conduct of different business activities. In fact, no organisation can exist or operate efficiently without the support of human resource. Such human resource includes top level managers, executives, supervisors and other subordinate / lower level staff / employees. A business organisation has to estimate its future manpower needs and adjust its manpower planning and development programmes accordingly. This is called 'staffing' function of management. Human resource management is also described as personnel management or manpower management. According to Edwin Flippo, "Personnel Management is the planning, organising, directing and controlling of the procurement, development, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and social goals".

Meaning of Human Resource

In an industrial unit, large numbers of persons are employed in order to conduct various operations and activities. This is treated as human resource or manpower employed. A business unit needs material resources as well as human resource for the conduct of various activities. Of all the "M"s in management (such as Materials, Machines, Methods and Money) the most important "M" stands for Men i.e., manpower working in the organisation. It is through manpower/employees that all other ingredients of an enterprise-money, machines, materials, marketing, etc., are managed. In brief, Human Resource (HR) constitutes the most important and the most productive resource of an industrial / business unit.

It is rightly said that "machines are important in the production process but the man behind the machines is more important". He transforms the lifeless factors of production into useful products. Human resource (HR) is an important asset of a business unit. Well-trained, loyal and efficient team of workers brings success and stability to a business unit. This suggests the importance of human resource in business. People and the organisation in which they work are inter-related and interdependent. organisation moves towards prosperity only by using its available human resource purposefully. Similarly, employees get various monetary and other benefits through the prosperity of their organisation.

Managerial Function
The human resource manager is a part of the organizational management. So he must perform the basic managerial functions of planning, organizing, directing and controlling in relation to his department. 1. Planning: planning is necessary to determine the goals of the organization and lay down policies and procedures to reach the goal. For a human resource manager, planning means the determination of personnel programs that will contribute to the goals of the enterprise i.e anticipating vacancies, planning job requirements, job description and determination of the source of recruitment. It involves three steps: A supply and demand forecast for each job category is made. This steps requires knowledge of both labor market conditions and the strategic posture and goals of the organization.

Net shortage and excess of personnel by job category are projected for a specific time horizon. Plans are developed to eliminate the forecast shortages and excess of particular categories of human resources. 2. Organizing: once the HR manager has established the objectives and developed the plans and programs to reach them, he must design ad develop organization structure to carry out the various operations. The organization structure basically includes the following: Grouping of personnel activity logically into functions or positions. Assignment of different functions to different individuals Delegation of authority according to the tasks assigned and responsibilities involved Co-ordination of activities of different individuals. 3. Directing: it involves encouraging people to work willingly and effectively for the goals of enterprise. In other words, the direction function is meant to guide and motivate the people to accomplish the personnel programmes. The personnel manager can motivate the employees in an organization through career planning, salary administration, ensuring employee morale, developing cordial relationships and provision of safety requirements and welfare of employees. 4. Controlling is concerned with the regulation of the activities in accordance with the plans, which in turn have been formulated on the basis of the objectives of the organization. it involves the observation and comparison of results with the standards and correction of deviation that may occur.

Operative Function
1. Employment: the first operative function of an organization is the employment of proper kind and number of persons necessary to achieve the objectives of the organization. This includes recruitment, selection and placement etc. of the personnel. Before these processes are performed, it is better to determine the manpower requirements both in terms of number and quality of the personnel. 2. Development: it is the follow-up of the employment function. It is the process of enhancing the skills, capabilities and knowledge of employees for doing a particular job. Development is done through the various training programs. Training process helps in the development of employees and moulds the thinking of employees and leads to quality performance of employees. It is continuous and never ending in nature. 3. Compensation: it is concerned with the determination of adequate and equitable remuneration of the employees in the organization for their contribution to the organizational goals. The personnel can be compensated through monetary as well as non monetary rewards.

4. Maintenance: employee must be provided with the good working condition so that they may like their work and work place and maintain their efficiency. This includes measures taken for health, safety and comfort of workforce. The various and physical and social well being of the employees are also taken care of like provision of cafeteria, rest rooms, counseling, group insurance, education for children of employees, recreational facilities. 5. Motivation: sometimes employee does not contribute towards the organizational goals as much as they can. This is due to lack of motivation. The HR manager helps in various departmental managers to design a system of financial and non financial rewards to motivate the employees. 6. Personnel records: the personnel department maintains the records of the employees working in the enterprise. It keeps full records of their training and development, achievements, transfer, promotion etc. it also preserves many other records relating to the behavior of personnel like absenteeism and labour turnover and the personnel programs and policies of the organization. 7. Separation: since the first function of the HR management is employment, it is logical that last should be the separation and return of that person to the society. The personnel manager has to ensure the release of retirement benefits to the retiring person in time.

Advisory Function
1. To top management: HR manager advises the top management in formulation and evaluation of personnel programs, policies and procedures. 2. To departmental heads: he also offers advice to the heads of various departments on matters such as manpower planning, job analysis and design, recruitment and selection, placement, training and performance appraisal.

Role of Human Resource Manager

1. Policy Formulation: it is one of the important tasks of a human resource manager. It is with a view to overcome problems of recurring nature, or to prevent anticipated problems in the area of HRM that policies are framed. HR policies intended to communicate the basic ground rules on which organization functions to avoid the discrimination, inconsistence and confusion. The HR manager helps the top management in the formulation of policies on wage and salary administration, transfer, appraisal, welfare activities, personnel records and statistics, working environment etc. 2. Advisory role: line managers are generally confronted with problems in their day to day operations. This may include grievance over distribution of overtime work, annual

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increase in pay, transfer, promotion, disciplinary action and so on. In all such matters, the personnel manager can offer useful advice because he is familiar with personnel policies and practices, labour agreement, labour laws etc. Linking pin role: the human resource manager attempts to achieve and maintain good industrial relations in the organization. He is responsible for setting up of various committees on discipline, labour welfare, safety, grievance etc. he lays down the grievance procedure to redress the grievance of the employees. He gives the authentic information to the trade union leaders to the higher management. He also conveys the views of the trade union leaders to the higher management, thus, he acts as a linking pin between the management and the workers. Representative role: the HR manager generally acts as a spokesperson of the top management or representative of the company and communicates the management policies and decisions that affect people in the organization. It is because he has better understanding and overall picture of the companys operations. Sometimes, he also acts as workers representative to put forward their problems to management. Decision-making role: HR manager formulates and designs, objectives, policies and programmes of human resource management. For instance, he decides about the contents and duration of training programs for various categories of workers and executives. Mediator role: HR manager also acts as a mediator in the events of conflicts between the employees or groups of employees, superior and subordinate and even between management and employees. Thus he is responsible for industrial peace and harmony in the organization. Leadership role: he also provides leadership and guidance to the workers and their groups. He ensures effective communication in the organization and influences the workers for extending their cooperation in the extending the organizational objective. Welfare role: HR manager acts as a welfare officer in the organization. He is concerned with the like provision of cafeteria, rest rooms, counseling, group insurance, education for children of employees, recreational facilities.

Human Resource Development

Human Resource Development (HRD) means to develop available manpower through suitable methods such as training, promotions, transfers and opportunities for career development. HRD programmes create a team of well-trained, efficient and capable managers and subordinates. Such team constitutes an important asset of an enterprise. One organisation is different from another mainly because of the people (employees) working therein. According to Peter F. Druker, "the prosperity, if not the survival of any business depends on the performance

of its managers of tomorrow." The human resource should be nurtured and used for the benefit of the organisation. Human Resource Development (HRD) is the domain that performs core function in an organization for the advancement of personal & professional skills, knowledge and abilities of employees. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development. Organizations have many opportunities for human resources or employee development, both within and outside of the workplace. Human Resource Development can be both formal as well as casual ranging from classroom training sessions & college courses, and an organizational scheduled change effort; to casual mentoring of subordinates by their superiors. Organizations that intend to grow and sophisticate utilize an extensive portion of their resources in Human Resource Development. Human resource development is directed towards changing an organization and everyone associated with it from within, in order to gain advantage over its competitors and ultimately achieving great amount of success. It also caters the need for employee talent & Skill development within an organization. Career, Talent and Skill Development are important components of Human Resource Development. To equip employees, alongside technical skills that are required to perform specific tasks, with soft skills such as leadership, communication, time management and so on and so forth actually enhances the performances of these individuals ultimately benefiting the organization in the long run. Human Resource Development includes: 1. 2. 3. 4. 5. Employee training Employee career development Performance management and development Key employee identification Organization development.

1. Employee training Training of employees takes place after orientation takes place. Training is the process of enhancing the skills, capabilities and knowledge of employees for doing a particular job. Training process moulds the thinking of employees and leads to quality performance of employees. It is continuous and never ending in nature. Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well. Training is given on four basic grounds: 1. New candidates who join an organization are given training. This training familiarize them with the organizational mission, vision, rules and regulations and the working conditions. 2. The existing employees are trained to refresh and enhance their knowledge. 3. If any updations and amendments take place in technology, training is given to cope up with those changes. For instance, purchasing a new equipment, changes in technique of production, computer implantment. The employees are trained about use of new equipments and work methods. 4. When promotion and career growth becomes important. Training is given so that employees are prepared to share the responsibilities of the higher level job. 2. Employee career development In simple terms it means 'Providing employees an opportunity to grow', especially to those employees who deliver performance. Growth means, to an employee, one or more of the following:
1. 2. 3. 4. 5. Climbing up the ladder in the organizational hierarchy. On-going increase in remuneration. Acquiring higher level skills & competencies. Occupying higher level Job positions. Having an opportunity to avail of some exclusive benefits (perks & privileges).

Career development is not a mere management responsibility. It is a composite organizational process which involves people, addresses their ambitions, assigns them roles & responsibilities commensurate with their potential, evaluates their performance, and creates Job positions to accommodate growth ambitions of employees. In the career development cycle, a number of actions have to take place at different levels as outlined below:

3. Performance management and development

Performance Development is a tool for rewarding, encouraging, supporting and developing all employees. Organisations use many different terms to describe performance development, including performance management and performance appraisal (to name a few). Performance development aims to develop, maintain and improve your skills, knowledge and job performance in order to achieve individual career goals and contribute to the achievement of team and organizations business goals. Performance Development is an ongoing cyclical process, which provides time and a structure for you and your manager/supervisor to:

Discuss how you are going in your job Exchange feedback Clarify how your work contributes to the goals of the Health Service Decide together what you both need to do in order to optimize the effectiveness of your work Identify and plan for any areas/issues needing support Discuss and plan for your development needs.

4. Organization development Organizational development deals with improving a companys performance and individual development of its employees. Each organization should be viewed as a coherent system composed of separate parts. Organizational development as a process includes methodologies and achievements in strategic planning, organizational design, and leadership development, coaching, diversity and balance between work and life. The term organizational development identifies the stages through which organizations go in the process of their development. You could say that organizational development is the way organizations change, evolve. This understanding is based on the assumption that organizations, just like human beings, have cycles of development, each characterized by its specific problems, crises and ways to overcome them.

5. Key employee identification

An employee with a major ownership and/or decision-making role in the business. Key employees are usually highly compensated. They may also receive special benefits as an incentive both to join the company and to stay with the company. It is very important to identify the key employee so as to get various benefits out of that employee in order to achieve the organizations objective.

Role of Human Resource Development

Develops the human resource of the company continuously for better performance to meet objectives. Develops constructive mind and overall personality of each employee Develop each individual capability to perform the present job and to handle future likely roles. Develop and maintain high motivation level of employees. Provides suitable need based training programs Prepare newly inducted staff to perform their work with high level of competency and excellence. Meet social obligations of industry to contribute towards the excellence of technical and management education. Promote a culture of creativity, innovation, human development, respect and dignity. Achieve excellence in every aspect of working life. Create environment for the trainees conducive to their character building.

Human Resource Planning or Manpower planning

It is the first managerial function of human resource management. According to Decenzo and Robbins, Human resource planning is the process by which an organization ensures that it has the right number of people, right kind of people at the right place, right time, capable of effectively and efficiently completing those tasks that will help the organization achieve the overall objective. Human resource planning is the two phased process by which the management can project the future manpower requirements and develop suitable action plans to accommodate the implications of the projection. Thus human resource planning is the process of developing and determine the objectives, policies and programmes that will procure, develop and utilize human resources so as to achieve the goals of the organizations. Human Resource Planning has to be a systems approach and is carried out in a set procedure. Objectives of Manpower / HR Planning 1. To ensure optimum utilisation of human resources currently employed in the Organisation. 2. To determine the future manpower requirements of the Organisation as per the need for renovations, modernisation, expansion and growth programmes. 3. To determine the recruitment level. 4. To ensure that necessary human resources are available as and when required.

5. To assess future accommodation requirements. 6. To design the basis for management development programmes so as to develop the required talents among the employees selected. Need for HRP 1. Meeting manpower needs: Every Organisation needs adequate and properly qualified staff for the conduct of regular business activities. Imaginative HRP is needed in order to meet the growing and changing human resource needs of an organisation. 2. Replacement of manpower: The existing manpower in an Organisation is affected due to various reasons such as retirement and removal of employees and labour turnover. HRP is needed to estimate the shortfall in the manpower requirement and also for making suitable arrangements for the recruitment and appointment of new staff. 3. Meeting growing manpower needs: The expansion or modernisation programme may be undertaken by the enterprise. Manpower planning is needed in order to forecast and meet additional manpower requirement due to expansion and growth needs through recruitment and suitable training programmes. 4. Meeting challenges of technological environment: HRP is helpful in effective use of technological progress. To meet the challenge of new technology existing employees need to be retrained and new employees may be recruited. 5. Coping with change: HRP enables an enterprise to cope with changes in competitive forces, markets, products, and technology and government regulations. Such changes generate changes in job content, skill, number and type of personals. 6. Increasing investment in HR: An employee who picks up skills and abilities becomes a valuable resource because an organisation makes investments in its manpower either through direct training or job assignments. 7. Adjusting manpower requirements: A situation may develop in; an organisation when there will be surplus staff in one department and shortage of staff in some other department. Transfers and promotions are made for meeting such situations. 8. Recruitment and selection of employees: HRP suggests the type of manpower required in an organisation with necessary details. This facilitates recruitment and selection of suitable personnel for jobs in the Organisation. Introduction of appropriate selection tests and procedures is also possible as per the manpower requirements. 9. Placement of manpower: HRP is needed as it facilitates placement of newly selected persons in different departments as per the qualifications and also as per the need of different departments. Surplus or shortage of manpower is avoided and this ensures optimum utilisation of available manpower. 10. Training of manpower: HRP is helpful in selection and training activities. It ensures that adequate numbers of persons are trained to fill up the future vacancies in the Organisation.

Steps in Manpower Planning

The various steps in manpower planning are: 1. 2. 3. 4. Analyzing the current manpower inventory Making future manpower forecasts Developing employment programmes Design training programmes

1. Analysing the current manpower inventory- It is very important to evaluate the present manpower status before making a forecast for future manpower planning. To evaluate the present manpower status a department by department analysis and a job-role by job-role analysis is conducted to arrive at the required manpower versus the available manpower. This is accumulated across the organization at different levels and departments. The final report will consolidate and state the required manpower versus the available manpower in terms of the quantitative analysis. Another analysis on the qualitative side conducted similarly shows the competencies required versus competencies available for each of the job roles. This provides the present manpower inventory. There may be excess or deficit or in extremely few cases just the right number quantitatively. Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted Type of organization Number of departments Number and quantity of such departments Employees in these work units

2. Making future manpower forecasts Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows: I. II. III. Expert Forecasts: This includes formal expert surveys, informal decisions and the Delphi technique. Trend Analysis: Manpower needs can be seen through the past practice of the firm or organization keeping the principle year as a basis and a central tendency of measure Work Load Evaluation: This depends on the nature of the work load in a branch, department, or a division in a firm or organization.

IV. V.

Work Force Evaluation: As production and the time duration are to be kept in mind, allotments have to be made for getting the total manpower requirements. Other Methods: A few mathematical models with the help of computers are also used to forecast manpower needs.

3. Developing employment programmes Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization and selection is the process of obtaining and using information about job applicants in order to determine who should be hired for long- or short term positions. Selection involves a series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. When the appropriate candidate is selected, he is placed in the organization. 4. Design training programmes These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers. A training calendar is designed to ensure competencies of existing staff are enhanced to meet the future manpower forecasts. Additional training programs may be designed when organizations are diversifying or expanding. Training programs may be designed to train existing resources on the latest improvements and advancements in technology or the related business subject. Training is provided to improve the knowledge, skill and capability of the employee.

Job analysis
Job analysis is a process of determining which characteristics are necessary for satisfactory job performance and analyzing the environmental conditions in which the job is performed. It analyzes the work content of job & job content of work. The process of job analysis leads to development of two documents viz., job description and job specification. Job description indicates the tasks and responsibilities, job title, duties, machines, tools and equipment, working conditions and occupational hazards that form part of the job whereas job specification comprises of the capabilities required to perform job, education, experience, training, judgmental skills, communication skills and personal skills required to perform the job effectively. Components of Job Analysis

Job Description:
Job description is a broad, general, and written statement of a specific job, based on the findings of a job analysis. It generally includes duties, purpose, responsibilities, scope, and working conditions of a job along with the jobs title, and the name or designation of the person to whom the employee reports. Job description usually forms the basis of job specification. The following information is common in most of the job descriptions. Job title: title of the job and other identifying information such as wages, salaries, other benefits

Summary: summary is written in one or two lines that describes what outputs are expected from job incumbents. Equipment: a clear statement of tools, equipment and other information required to perform job effectively. Environment: a clear description of the working conditions of the job, the location and other characteristics of work environment such as hazards, noise, temperature, cleanliness etc. Activities: a description about the job duties, responsibilities, and expected behaviour on the job. A description of social interactions associated with the job such as the size of work group, interpersonal interaction on the job is made.

Job analyst writes job description in consultations with the workers and supervisors. After writing draft job description, comments and criticism are invited to improve its content. Final draft is then prepared. Job description is written either by making personal observation or using questionnaire to collect relevant information from supervisors and workers. Job description should be reviewed from time to time.

Job Specifications:
It also known as man or employee specifications is prepared on the basis of job specification. It specifies the qualities required in a job incumbent for the effective performance of the job. Basic contents of a job specification are as follows: Personal characteristics such as education, job experience, age, sex, and extra cocurricular activities. Physical characteristics such as height, weight, chest, vision, hearing, health, voice poise, and hand and foot coordination, (for specific positions only). Mental characteristics such as general intelligence, memory, judgment, foresight, ability to concentrate, etc. Social and psychological characteristics such as emotional ability, flexibility, manners, drive, conversational ability, interpersonal ability, attitude, values, creativity etc. Various contents of a job specification can be prescribed in three terms: Essential qualities which a person must possess; Desirable qualities which a person may possess; and contra-indicators which are likely to become a handicap to successful job performance

Job evaluation
It is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many ways:

Reduction in inequalities in salary structure - It is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. Specialization - Because of division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation. Helps in selection of employees - The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees. Harmonious relationship between employees and manager - Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized. Standardization - The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure.

Job Design
The term job design refers to the way the tasks are combined to form a complete job. 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.

Techniques of Job Design

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. 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. This also helps in reducing the boredom by doin same job. They can also contribute in a better way to achieve the goals of the organization. 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. 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. 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. 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.

Section B Recruitment and Selection

Recruitment
Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. In the recruitment process, the available vacancies are given wide publicity and suitable candidates are encouraged to submit applications so as to have a pool of eligible candidates for scientific selection. In recruitment, information is collected from interested candidates. For this different source of recruitment such as newspaper advertisement, employment exchanges, internal promotions, etc., are used. In the recruitment, a pool of eligible and interested candidates is created for the selection of most suitable candidates. Recruitment represents the first contact that a company makes with potential employees. Recruitment is a positive function in which publicity is given to the jobs available in the organisation and interested candidates (qualified job applicants) are encouraged to submit applications for the purpose of selection.

Definition of Recruitment: According to Edwin Flippo, "Recruitment is the process of

searching for prospective employees and stimulating them to apply for jobs in the Organisation."

Need for Recruitment: The need for recruitment may be due to the following reasons /
situations :a. Vacancies : due to promotions, transfers, retirement, termination, permanent disability, death and labour turnover. b. Creation of new vacancies : due to growth, expansion and diversification of business activities of an enterprise. In addition, new vacancies are possible due to job respecification.

Sources for recruitment

The various sources for recruitment can be grouped onto the following two categories:

 Internal source: there are two important internal sources of recruitment, namely, transfers and promotions. Transfer: it involves the shifting of an employee from one job to another, from one department to another or from one shift to another. Transfer is a good source of filling vacancies with employees from overstaffed departments or shifts. At the time of transfer, it should be ensured that the employee to be transferred to another job is capable of performing it. In fact, transfer does not involve any drastic change in the responsibilities, pay and status of the employees in learning different jobs. Promotion: It leads to shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay. Many companies follow the practice of filling higher jobs by promoting employees who are considered fit for such positions. Filling vacancies in higher jobs from within the organization has the benefit of motivating the existing employees. It has the great psychological impact over the employees because a promotion at the higher level may lead to promotions at lower level within the organization. External sources: Every enterprise has to tap external sources for various positions. Running enterprise has to recruit employees from outside for filling the positions whose specifications cannot be met by the present employees and for meeting the additional requirements of manpower. The following external sources of recruitment are commonly used by the bog enterprise:

Direct recruitment: an important source of recruitment is direct recruitment by placing a notice on notice board of the enterprise specifying the details of the jobs available. It is also known as recruitment at factory gate. The practice of direct recruitment is generally followed for filling casual vacancies requiring unskilled workers. Such workers are known as casual or badly workers and they are paid remuneration on daily wages. This is a very cheap method as it does not involve any cost of advertising vacancies. Casual callers or unsolicited applications: The organizations which are regarded as a good employers draw a steady stream of unsolicited application in their offices. This serves as a valuable source of manpower. If adequate attention is paid to maintain pending application folders for various jobs, the personnel department may find the unsolicited applications useful in filling vacancies whenever they arise. It avoide the cost of recruiting workforce from other sources. Media advertisements: This medium is widely used for recruitment of all categories of personnel. Though quite costly, it provides a wide choice as it attracts large number of candidates from all over the country. The qualities and qualifications expected from the candidates are usually mentioned in the advertisement. Employment agencies: Employment exchange run by the government are recognized as good source of recruitment for unskilled, semiskilled and skilled operative jobs. In some cases compulsory notifications of vacancies to the employment exchange is required by law. Thus employment exchange brings the job giver in contact with the job seekers. However in the technical and professional area, private agencies and professional bodies appear to be doing most of the work. Management consultants or head hunters: These helps organization to recruit technical, professional and managerial personnel. They specialize in middle and top level executive placement. They maintain database of persons with different qualifications and skills and even advertise the jobs on behalf of their clients to recruit right type of personnel. A few examples of headhunters are: ABC consultants, Godmans international, mantec consultant etc. Educational institutions and campus placement: Jobs in commerce and industry have become technical and complex to the point where college degrees or diplomas are widely required. Thus the organizations maintain a close liaison with the universities, vocational institutes and management institutes for recruitment to various jobs. It is also called campus recruitment. Reputed industrial houses which require management trainees send their official to campuses of various management institutes for picking up talented candidates doing MBA. Recommendations or referrals: application introduced by friends, relatives may prove to be a good source of recruitment. In fact, many employers prefer to take such persons because something about that background is known. When a present employee or business friend recommend someone for a job, a kind of preliminary screening is done and a person is placed on a job.

Labour contractors: These are an important source of recruitment in some industries in India. Workers are intrudes through labour contractors who themselves are employees of the organization. The disadvantage of this system is that if contractor leaves the organization, all the workers employed through him will also leave. Recruitment through labour contracts are banned in public sector however this practice is still common in carious construction industries. Telecasting: the practice of telecasting the vacant post over T.V. (Doordarshan and other channels) is gaining importance these days. Special programme like job watch, youth pulse, employment news etc have become quite popular in recruitment for various types of jobs. The detailed requirements of the job and the qualities required to do it are publicized along with the profile of the organization where vacancy exists.

Comparison of internal and external sources: Internal source

1. It is a quick process. It involves search of candidates from within the organization 2. This process is cheaper. It does not involve any cost of contracting the external sources. 3. The existing staff motivated to improve their performance. 4. Choice of candidates is limited. The scope of fresh talent is diminished Internal sources help in saving time of officials responsible for recruitment.

External source
1. It is lengthy process. It involves finding candidates from outside the organization 2. This process is costly as vacancies have to be notified in newspapers etc. 3. the workers feel dissatisfied if external source are used 4. The business can hope for talented candidates from outside. This means infusion of new blood and new ideas into the enterprise 5. External sources of recruitment are timeconsuming.

Selection
Selection is next to recruitment. It is the process of choosing the most suitable candidates (Properly qualified and competent) out of many interested candidates. It is a process of selecting the best and rejecting the rest. In this selection process, interested applicants are differentiated in order to identify those with a greater likelihood of success in a job. Such candidates are selected and appointed. Selection is a negative function as it relates to elimination of unsuitable candidates. 'Right man for the right job' is the basic principle in selection. Selection of suitable candidates is a responsible type of work as selection of unsuitable persons for jobs creates new problems before the business unit. Selection is the process of obtaining and using information about job applicants in order to determine who should be hired for long- or short term positions. Selection involves a series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.

Recruitment Vs Selection

Basis Meaning

Recruitment It is the process of searching candidates for vacant jobs and making them apply for the same. It is a positive process Its aim is to attract more and more candidates for vacant jobs The firm notifies the vacancies through various sources and distributes application forms to candidates No contractual relations is created

Selection It is the process of selection of right types of candidates and offering them jobs It is a negative process Its aim is to reject the unsuitable candidates and pick up the most suitable people for the vacant job The firm asks the candidates to pass through a number of stages such as filling of forms, employment test, interview, medical exams etc. It leads to contract of service between the employer and the employee

Nature Aim

Procedure

Contract of service

Selection Procedure
The selection procedure varies from organization to organization and even from department to department in an organization according to the kinds of the jobs to be filled. The number of steps in the procedure and the sequence of the steps also vary. Every organization will design a selection procedure that suits its requirements. However, the main steps or stages that could be incorporated in the selection procedure are as under:

1. Preliminary Interview: A preliminary interview either in person or by phone, in which a company representative determines whether you have the basic qualifications to warrant a subsequent interview. It generally brief and does the job of eliminating the totally unsuitable candidates. The preliminary interview offer advantages not only to the organization, but also to the applicant. If an applicant is eliminated at this stage, the organization will be saved from the expenses of processing him through the remaining steps of the selection procedure and unsuitable candidate will be saved from passing through the long procedure. Preliminary interview may takes place across the counter at organizations employment office. It may consist of a short exchange of information with respect to the organizations interest in hiring and the candidates enquiry. 2. Receiving applications: In this step, applications with necessary details are collected from interested candidates. Some companies give advertisement in the press and ask interested candidates to submit applications on a prescribed form. It makes the processing of applications very easy since there is uniformity of filling the data in the application form. 3. Screening of application: After the last date fixed for the receipt of applications, officer from the personnel department starts the scrutiny of applications received. Incomplete

applications are normally rejected. Applicants, who do not possess required qualifications, experience, etc., are also rejected. Along with this, the certificates, testimonials and references are checked. 4. Employment Tests: After the scrutiny of applications, a final list of candidates for written tests is prepared. The purpose of such tests is to judge the knowledge of the candidate and also to find out his :a. Intelligence, b. Aptitude, c. Capacity, d. Interests and e. Suitability for a specific job. Trade test is particularly necessary in the case of technical jobs such as junior engineer, computer engineer and research assistant and so on. At present, such test is given in the case of all types of jobs. For example, written tests are used by Banks and public sector organisations for selection purpose. The various tests used for the selection procedure are: Intelligence test: Intelligence test is useful for judging the intelligence of a candidate. According to the industrial psychologist, "General intelligence is the capacity of a person for comprehension and logical reasoning." Previously only the passing certificates of certain examinations were universally accepted as evidence of intelligence. After long experience, employees discovered that such certificates were not always very reliable as they indicate only paper qualifications. Fortunately for them, two French psychologists. Simon and Binet had developed in 1916 suitable Intelligence Tests to measure general intelligence. According to these tests, intelligence of a person or his intelligence quotient (I.Q.) can be measured by his performance in the test. Vocational aptitude test: Vocational aptitude has been defined as "the capacity or latent ability of an individual to learn a job, given the necessary training." It has been claimed that vocational aptitude is as important and perhaps more important than general intelligence for success on a job. It is, therefore necessary to ascertain the vocational aptitude of a candidate before final selection. Interests test: it identify patterns of interests, that is, areas in which the individual shows special concern, fascination and involvement. These tests will suggest what types of jobs may be satisfying to the employees. They help the individual in selecting occupation of their interest. Trade test: Trade test is necessary and useful in the case of jobs which involve technical work. For example, a stenographer or a typist should be given suitable test in order to judge his ability to take dictation or type. Similar trade tests can be given to welders,

machine operators and so on. Workers can be given such tests in order to find out their capacities for the type of job for which they are being considered. Personality test: Personnel managers have come across many individuals with the necessary intelligence and the vocational aptitude, and yet did not prove successful in the jobs for which they are selected. Industrial psychologists felt that they might not have a suitable personality or temperament and began to develop tests to measure personality traits. Protective test is one such test. Its essential feature is that it induces a candidate to reveal his inner or real personality.

5. Employment Interview: The candidates who have shown reasonably good performance in the written examination and psychological tests are called for personal interview. Interview technique is used extensively for the selection of managerial posts. This interview is conducted by one interviewer or by a group of interviewers including top officers of the company and other professional experts. The candidate is asked various questions about his qualifications, experience, family background and performance in the written test and psychological tests by the interviewers during the course of the interview. In this final interview, an attempt is made to judge overall personality of the candidate. The selection committee notes the plus and minus points of every candidate and selects the best candidates for appointment by applying certain uniform norms. Here, 'short-listing of candidates' is done for final selection as per the need of the organisation. The final selection depends partly on the performance of the candidate in the tests and also on the performance in the personal interview. Structured or planned interview: In this type of interview, the interviewer is looking for information in a particular area of interest to the company. The interviewer has a list of specific interviewing questions, prepared in advance. These questions focus on the experience, skills and personality the "ideal candidate would possess. Unstructured interviews: They are not formatted step by step, but may revolve around some key questions to sense a candidates qualifications. These types of interviews are generally probing in a nature, with successive questions formulated in response to statements and responses by the candidate. Many of the questions are open-ended and progress along the topics that surface during the interview (some anticipated, some not anticipated).This format generally progresses like a casual conversation. It is considered less reliable than a structured interview due to the lack of specific and sequential questioning that pinpoints explicit behavioral traits and skills in question. Preliminary or background interview: this type of interview is conducted when the history of the candidate has to be known in terms of his experience, education, health, interests, likes, dislikes etc. It is more or less like the preliminary interview. Stress Interview: In this situation, the interviewer will intentionally try to upset the applicant to see how they react under pressure. Uncomfortable questions may be asked

or the applicant may be interrupted while speaking. The entire interview is not generally conducted in this format: it is normally incorporated into one of the other categories. This type of interview may be used more commonly in high-stress jobs. Group interview: it is an interview of number of applicants in dealing with each other in a group. Reaction of the applicants in dealing with each other can be seen by the interviewers. It is used where it is essential to know how the candidate behave in a group.

6. Reference Check: A reference is potentially an important source of information about a candidates ability and personality if he holds a responsible position in some organization or has been the boss or employer of the candidate. Prior to final selection, the prospective employer normally makes an investigation on the reference supplied by the candidateand undertakes more or less a thorough search into the candidates past employment, education, reputation, financial condition, police record etc. The candidate is required to give at least two references which may be :a. Educational, b. Social and c. Employment. 7. Medical Examination: The purpose of medical examination is to judge the general health and physical fitness of the candidate. Candidates who are not physically fit for the specific job are rejected even when they show good performance in the tests and personal interview. Medical test is taken in the case of all candidates before appointment. In case of certain jobs, the test is of a general nature. However, medical examination has special importance in armed forces. The physical examination should disclose the physical characteristics of individual that are significant from the standpoint of his efficient performance of the job he may be assigned. 8. Final Selection for Appointment: The selection procedure comes to an end when the final appointment letter is sent to the candidate with a request to join the organisation on a particular date. This means the 'job is offered to the selected candidate' and he is asked to join the organisation within a specific time limit.