Pom Reviewer (L5-L6) PDF

# Lesson 5: Concept of Organizing Function ## Overview Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. During the organizing process, managers coordinate employees, resources, policies, and procedures to f...

# Lesson 5: Concept of Organizing Function ## Overview Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. During the organizing process, managers coordinate employees, resources, policies, and procedures to facilitate the goals identified in the plan. ## Learning Outcomes After successful completion of this lesson, you should be able to: - Discuss the nature of organizations - Distinguish the various types of organization structures - Apply organization theories in solving business cases - Identify the different elements of delegation - Differentiate formal from informal organization ## Course Materials The next function of management follows planning and it is about organizing. It's about using the plan to bring together the physical, financial and other available resources and use them to achieve the organizational goal. If your task were to increase sales, you would look at the plan and determine how to divide the resources you have in order to put your plan in place. The marketing campaign would be handed out to Becky and you would provide them with the financial resources available and needed to give birth to the campaign. You would also need to ensure the team has access to the customer files in order to utilize vital information. You'd then direct Danny and his team to calculate the possible reductions you can make, help them have the resources to determine which products are best to discount and so on. ## Nature of Organizing Organizing involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization. During the organizing process, managers coordinate employees, resources, policies, and procedures to facilitate the goals identified in the plan. - **Identification of Activities** Important component of also organizing the activities of enterprises depend on its nature and size - **Grouping of Activities** Involves creating departments and section for specific work such as production, marketing, finance, human resources etc. - **Accumulation of Resources** Availability of needed resources facilitate for uniform and smooth performance of the enterprises - **Defining Hierarchy of Positions** It is formed in the basic degree of responsibility and accountability and clarifies roles of everyone from top to the subordinate level - **Assignment of Jobs** Each work is assigned to different individuals based on their skills, and ability and experience - **Establishing Authority and Responsibility Relationship** For the systemic functioning of managerial function, it is essential to establish authority and responsibility relationship of all the employees from top level to subordinate level - **Evaluation of Performance** It is helpful to meet determined objectives within time defined ## Organizing Levels and Span of Management Organizational levels exist because there is a limit to the number of persons a manager can supervise effectively, even though this limit varies depending on situations. The term "span of control" or "span of management" is defines "the number of subordinates who are working under one manager." ## Different Types of Organizational Structure - **Functional Structure** is one of the most common organizational structures. Under this structure, the organization groups employees according to a specialized or similar set of roles or task. - **Divisional Structure** is a type of organizational structure that groups each organizational function into a division. Each division contains all the necessary resources and functions within it to support that product line or geography (for example, its own finance, IT, and marketing departments). - **Matrix Management** is an organizational structure in which some individuals report to more than one supervisor or leader, relationships described as solid line or dotted line reporting. ## Organization Theories and Application - **Classical Theories** It focuses on the structure of the Organization. Proponents; Max Weber, Frederick Taylor & Henry Fayol. - **Neo-Classical** Employees is treated as human beings and their needs were emphasize. - **Systems Approach** System Theorist believe that all organization components are interrelated, Hence Changes in one component may affect all the other components. Proponent: Ludwig von Bertalaffy also known as the Father of System Theory. - **Contingency Models** is an organizational theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent (dependent) upon the internal and external situation. A contingent leader effectively applies their own style of leadership to the right situation. Fred Fiedler's contingency model focused on a contingency model of leadership in organizations. This model contains the relationship between leadership style and the favorable-ness of the situation. Fielder developed a metric to measure a leader's style called the Least Preferred Co-worker. The test consists of 16-22 items they are to rate on a scale of one to eight as they think of a co-worker, they had the most difficulty working with. A high score indicates the test taker is relational in style and a low score indicates the test taker is more task orientated in style. Situational favorable-ness was described by Fiedler in terms of three empirically derived dimensions: - **Leader-member relationship** - high if the leader is generally accepted and respected by followers - **Degree of task structure** - high if the task is very structured - **Leader's position power** high if a great deal of authority and power are formally attributed to the leader's position ## Formal Structure Its formal structure is primarily concerned with the relationship between authority and subordinate. Typical organization chart illustrates the formal structure at work in a company or part of a company. The hierarchical organization begins at the top with the most senior leader and then cascades down to the subordinate managers and then subordinate employees below those managers, and there are job titles, financial obligations and clear lines of authority for each box on the organization chart. ## Informal Structure Its informal structure is typically developed around social or project groups. Because they are based on camaraderie there is often a more immediate response from individuals. This saves people time and effort, thus making it easier to work with in informal structures. ## Three (3) Elements of Delegation 1. **Responsibility** is the obligation of a subordinate to properly perform the assigned duty. When a superior assign a job to his subordinate it becomes the responsibility of the subordinate to complete that job. This means that the word responsibility comes into play only after the job has been assigned. Thus, to assign job can be called to assign responsibility. Responsibility Features: - Responsibility can be assigned to some other person. - The essence of responsibility is to be dutiful. - It gets originated because of superior-subordinate relationship. 2. **Authority** means the power to take decisions. Decision can be related to the use of resources, and to do or not to do something. Authority Feature: - Authority can be assigned (delegated) to some other person. - It is related to the post (with the change of post, even authorities change). - It makes implementation of decisions possible. - Authority is the key to a managerial job because a post without authority cannot be a managerial post. 3. **Accountability** -means the answerability of the subordinate to his superior for his work performance. In other words, when a superior assigns job / work or the responsibility to his subordinates, simultaneously he gives authority to them which makes workers (subordinates) accountable to their superior for the work- performance. Accountability Features: - Accountability cannot be delegated to some other person. - It is only towards the delegators. - Its base is senior-subordinate relationship. - It originates because of delegation of authority. ## Art of Delegation ### What to delegate and to whom Divide work into meaningful tasks and then allocate them to specialists or people who will benefit from the experience. ### Allocate the work This is the hardest and most important stage of delegation and generally involves several issues: - The subordinate must understand why the work needs to be done. - Where the applicable the manager should set specific performance standards for output, time, cost, and quality, and report the subordinate in the process. - Goals for output, time, cost of the completed job should be agreed upon. Furthermore, sub goals the manager should involve the subordinate. - The subordinate must be given authority and control over certain resources and people, while the manager can delegate tasks or assign responsibility and authority for them. - Decisions to achieve agreed results. - Even though the manager can delegate tasks, control responsibility must be owned by them. The subordinate will always be held accountable for the tasks his subordinates perform. ## Monitoring Performance A manager should constantly monitor progress against standards and sub-goals. Recognition must be given for task accomplishment and preventative or corrective action should be taken when required. Feedback helps maintain and enhance employee performance. You control and be aware of the results of the work you delegate. Tasks are delegated as part of a developmental program the manager should ensure that the subordinate receives proper training and guidance! ## Benefits of Successful Delegation - Motivating subordinates by giving them a sense of growth and development - Providing subordinates with the opportunity for growth and development - Allowing the manager more time for relevant managerial activities such as planning and communication - Reducing time taken to make decisions - Facilitation the controlling and understanding between a manager and his subordinate - Allowing decision making to take place close to the point of action where the detail is known. ## Obstacles to Successful Delegation - There are several possible reasons which hold managers back from delegating. The reasons are: - Fear that subordinates will do a better job and get the recognition. - Fear that the subordinate won't be able to do the job properly. - The fear of losing control over activities and tasks for which he is accountable. - A feeling that it is important for him to be seen doing the work rather than purely managing. - Preference for doing the work itself as opposed to managing people. ## Formal and Informal Organization **ORGANIZATION**- is a collection of people who work together to attain specified objectives. There are two types of organization structure, that can be formal organization and informal organization. ### Formal Organization An organization is said to be formal when the two or more than two persons come together to accomplish a common objective, and they follow a formal relationship, rules, and policies are established for compliance, and there exists a system of authority. It should be noted that official association has certain like rationality, impersonality, and uniqueness. ### Features - Power hierarchy - Specificity in distribution of labor duties - A large amount of working documentation - Collectivism - Top-down communication - Specified procedures for replacing inefficient wage earners - Duration of functioning - Independence from the participation of specific persons ## Three (3) Types of Formal Organization - **Coercive systems** are characterized by forced membership and exercising control by force. Their bright instances include prison, psychiatric clinics, boarding schools, military units. The joining of new participants is authorized by a higher power in the person of the chief or director. Such institutions are inherent puissance ladder, strict discipline, and compliance with stated rules. Everyday life is quite monotonous; some workers of team wear overalls, which emphasize the leveling of individuality. - **Utilitarian structures** involve those that bring benefits. Persons will rejoin them because they see some prospect of a mutually beneficial exchange. This could be an internship in a company, successful passage of which promises a high salary in the future. Or an excellent graduation from a school/university, because of which the student not only receives first-class knowledge and habits but also, offers cooperation from the best employers. - **Normative associations** are immanent in maintaining order through education and having an ordinary set of norms. Generally, fellowship in them is free, although, some participants could add to them out of a sense of solidarity, duty or even fear. Such structures include church, brotherhoods, and political parties. The latter is understood as the formal organization that directs a political life of a society. Participating in them, persons feel belonging to general good and purpose. ## Informal Organization A network of interpersonal relationship that arise when people associate with each other. It is the interlocking social structure that governs how people work together in practice. It features Independent channel of communication without specified direction of flow of information are developed by group members. Unofficial communication channel. Which flows in vertical and Horizontal direction. Its advantages are it creates sense of "Belongingness" and develops some cohesiveness among each other. While its disadvantages are it spreads rumors and it pressures members to conform to the group's expectations. ## Comparison Chart | BASIS COMPARISON | FOR FORMAL ORGANIZATION| INFORMAL ORGANIZATION| |---|---|---| | Meaning | An organization type in which the job of each member is clearly defined whose authority and responsibility are fixed is formal organization. | An organization formed within the formal organization as a network of interpersonal relationship, when people interact with each other is known as informal communication. | | Creation | Deliberately by top management. | Spontaneously by members. | | Purpose | To fulfill the ultimate objective of the organization. | To satisfy their social and psychological needs. | | Nature | Stable, it continues for a long time. | Not stable| | Communication | Official communication | Grapevine | | Control mechanism | Rules and Regulations | Norms, values, and beliefs | | Focus on | Work performance | Interpersonal relationship | | Authority | Members are bound by hierarchical structure. | All members are equal. | | Size | Large | Small | # Lesson 6: Concept of Staffing Function ## Overview The staffing function is an increasingly important function of management, although it is sometimes left out when the core functions are discussed. It can be seen closely related to organizing, with both focused on ensuring the resources are directed to the right processes and tasks. For staffing, the focus is on people and their labor in relation to the organizational objectives. ## Learning Outcomes After successful completion of this lesson, you should be able to: - Discuss the nature of staffing - Explain the steps in the recruitment and selection process - Recognize the different ways or methods of training - Discuss employee remuneration ## Course Materials - According to Mc Farland: Staffing is the function by which managers build on organization through the recruitment, selection and development of individual as capable employee. - According to Heinz Weihrich, Mark Cannice and Harold Koontz: The managerial function of staffing is defined as filling and keeping filled, positions in the organization structure. The reason staffing is included as a separate function and why it's a crucial part of management is due to the changing nature of the workforce and the organization. Today's companies are much more complex in terms of where and when they operate - companies aren't confined between national boundaries anymore. Technology has also had a huge impact on company structures, requiring new positions and destroying others. ## Staffing Function - According to Mc Farland: Staffing is the function by which managers build on organization through the recruitment, selection and development of individual as capable employee. - According to Heinz Weihrich, Mark Cannice and Harold Koontz: The managerial function of staffing is defined as filling and keeping filled, positions in the organization structure. ## Nature of Staffing 1. **Management function**: Staffing is a management function that appoints people at different positions to run the organization. While organizing creates departments and positions, staffing ensures that people with desired skills and abilities occupy these positions to contribute to organizational goals. 2. **Pervasive function**: People are the most important asset that convert inputs into outputs. People are appointed at all levels (top, middle, low) in all functional areas (production, finance, marketing, personnel). Staffing ensures that right persons are appointed at the right job so that organization can efficiently achieve its objectives. 3. **Part of human resource management**: Staffing is an important part of human resource management. Human resource management ensures that competent people perform organizational activities. It deals with the set of organizational activities that attract, develop and maintain an effective workforce. The requirements of human resource management are filled through staffing as staffing appoints people at the desired jobs. 4. **Deals with active resource**: Staffing deals with the most important resource (people) that converts inactive resources (raw materials) into productive outputs. It deals with the live resource (people) without whom resources would remain as resources only. They will not be converted into outputs. 5. **Attached with personnel department**: Functions of staffing; recruitment, selection, training, and appraisal of subordinates of all departments (production, marketing etc.) are performed by managers at all levels as all departments need people to function. In performing these functions, managers seek assistance of the personnel department. Personnel department is a service department that assists line managers in performing the staffing function. 6. **Continuous function**: Staffing is a continuous managerial function. People keep leaving and joining the organizations. Departments and organizations grow and, therefore, need for people keep arising. Hiring, training and compensating people (staffing) are, therefore, continuously performed by managers. ## Staffing Process and Steps Involved in Staffing 1. **Manpower Planning**: can be regarded as the quantitative and qualitative measurement of labor force required in an enterprise. Therefore, in an overall sense, the planning process involves the synergy in creating and evaluating the manpower inventory and as well as in developing the required talents among the employees selected for promotion or advancement. 2. **Recruitment** is a process of searching for prospective employees and stimulating them to apply for jobs in the organization. It stands for finding the source from where potential employees will be selected. 3. **Selection** is a process of eliminating those who appear unpromising. The purpose of this selection process is to determine whether a candidate is suitable for employment in the organization or not. Therefore, the main aim of the process of selection is selecting the right candidates to fill various positions in the organization. A well-planned selection procedure is of utmost importance. 4. **Placement** means putting the person on the job for which he is selected. It includes introducing the employee to his job. 5. **Training**: After selection of an employee, the important part of the programmed is to provide training to the new employee. With the various technological changes, the need for training employees is being increased to keep the employees in touch with the various new developments. 6. **Development** A sound staffing policy provides for the introduction of a system of planned promotion in every organization. If employees are not at all having suitable opportunities for their development and promotion, they get frustrated which affect their work. 7. **Promotions** implies the up gradation of an employee to a higher post involving increasing rank, prestige, and responsibilities. Generally, the promotion is linked to increment in wages and incentives, but it is not essential that it always relates to that part of an organization. 8. **Transfer** means the movement of an employee from one job to another without increment in pay, status, or responsibilities. Therefore, this process of staffing needs to evaluate on a timely basis. 9. **Appraisal**: Appraisal of employees as to how efficiently the subordinate is performing a job and to know his aptitudes and other qualities necessary for performing the job assigned to him. 10. **Determination of Remuneration** This is the last process which is very crucial as it involves in determining remuneration which is one of the most difficult functions of the personnel department because there are no definite or exact means to determine correct wages. ## Process of Recruitment Recruitment is a process of finding and attracting the potential resources for filling up the vacant positions in an organization. Recruitment process is the first step in creating a powerful resource base. The process undergoes a systematic procedure starting from sourcing the resources to arranging and conducting interviews and finally selecting the right candidates. ## Recruitment Process - **Recruitment Planning** is the first step of the recruitment process, where the vacant positions are analyzed and described. It includes job specifications and its nature, experience, qualifications, and skills required for the job, etc. A structured recruitment plan is mandatory to attract potential candidates from a pool of candidates. The potential candidates should be qualified, experienced with a capability to take the responsibilities required to achieve the objectives of the organization. ### Identifying Vacancy - The first and foremost process of recruitment plan is identifying the vacancy. This process begins with receiving the requisition for recruitments from different department of the organization to the HR Department, which contains - Number of posts to be filled - Number of positions - Duties and responsibilities to be performed - Qualification and experience required When a vacancy is identified, it the responsibility of the sourcing manager to ascertain whether the position is required or not, permanent, or temporary, full-time, or part-time, etc. These parameters should be evaluated before commencing recruitment. Proper identifying, planning, and evaluating leads to hiring of the right resource for the team and the organization. ### Job Analysis - Job analysis is a process of identifying, analyzing, and determining the duties, responsibilities, skills, abilities, and work environment of a specific job. These factors help in identifying what a job demands and what an employee must possess in performing a job productively. It also helps in understanding what tasks are important and how to perform them. Its purpose is to establish and document the job relatedness of employment procedures such as selection, training, compensation, and performance appraisal. - The following steps are important in analyzing a job - Recording and collecting job information - Accuracy in checking the job information - Generating job description based on the information - Determining the skills, knowledge, and skills, which are required for the job The immediate products of job analysis are job descriptions and job specifications. ### Job Description - Job description is an important document, which is descriptive in nature and contains the final statement of the job analysis. This description is very important for a successful recruitment process. It provides information about the scope of job roles, responsibilities, and the positioning of the job in the organization. And this data gives the employer and the organization a clear idea of what an employee must do to meet the requirement of his job responsibilities. - Job description is generated for fulfilling the following processes - Classification and ranking of jobs - Placing and orientation of new resources - Promotions and transfers - Describing the career path - Future development of work standards - A job description provides information on the following elements - Job Title / Job Identification / Organization Position - Job Location - Summary of Job - Job Duties - Machines, Materials and Equipment - Process of Supervision - Working Conditions - Health Hazards ### Job Specification - Job specification focuses on the specifications of the candidate, whom the HR team is going to hire. The first step in job specification is preparing the list of all jobs in the organization and its locations. The second step is to generate the information of each job. - This information about each job in an organization is as follows - Physical specifications - Mental specifications - Physical features - Emotional specifications - Behavioral specifications A job specification document provides information on the following elements - Qualification - Experiences - Training and development - Skills requirement - Work responsibilities - Emotional characteristics - Planning of career ### Job Evaluation - Job evaluation is a comparative process of analyzing, assessing, and determining the relative value/worth of a job in relation to the other jobs in an organization. The main objective of job evaluation is to analyze and determine which job commands how much pay. There are several methods such as job grading, job classifications, job ranking, etc., which are involved in job evaluation. Job evaluation forms the basis for salary and wage negotiations. ### Strategy Development - Once it is known how many and what type of recruits are required, serious consideration needs to be given to (a) make or 'buy' employees; (b) technological sophistication of recruitment and selection devices; (c) geographic distribution of labor markets comprising job seekers; (d) sources of recruitment; and (e) sequencing the activities in the recruitment process. #### Make 'or ‘Buy’ Firms must decide whether to hire less skilled employees and invest on training and education programs, or they can hire skilled labor and professionals. Essentially, this is the 'make' (hire less skilled workers) or 'buy' (hire skilled workers and professionals) decision. Organizations which hire skilled labor and professionals shall have to pay more for these employees. ‘Buying' employees has the advantage in the sense that the skilled labor and professionals can begin the work immediately and little training may be needed. But the high remuneration that the skilled workers and professionals demand may outweigh the benefits. #### Technological Sophistication The second decision in strategy development relates to the methods used in recruitment and selection. This decision is mainly influenced by the available technology. The advent of computers has made it possible for employers to scan national and international applicant qualifications. Although impersonal, computers have given employers and job seekers a wider scope of options in the initial screening stage. Technological advancement has made it possible for job seekers to gain better access. They have begun sending videotapes about themselves to several companies without wasting time and without spending money on travel. To reduce costs, firms investigate labor markets most likely to offer the required job seekers. Generally, companies investigate the national market for managerial and professional employees, regional or local markets for technical employees, and local markets for clerical and blue-collar employees. In the final analysis, organizations recruit where experience and circumstances dictate likely success. Recognizing this, many adopt an incremental strategy in which initial efforts are concentrated in regional or local labor markets and expanded only if these efforts fail to achieve the desired results. ### How to Look Refers to the methods of **SOURCES OF RECRUITMENT**. There are several sources and they may be broadly organized into (a) **Internal**, and (b) **External**. #### Internal - Internal recruitment seeks applications for positions from those who are currently employed. Internal sources include present employees, employee referrals, former employees, and former applicants. #### External - External sources far outnumber the internal methods. Specifically, sources external to a firm are professional or trade associations, advertisements, employment exchanges, college/university/institute placement services, walk-ins and write-ins, consultants, contractors, displaced persons, radio and television, acquisitions and mergers, and competitors. ### Searching - Is the process of recruitment where the resources are sourced depending upon the requirement of the job. After the recruitment strategy is done, the searching of candidates will be initialized. This process consists of two steps – #### Source activation - Once the line manager verifies and permits the existence of the vacancy, the search for candidates starts. #### Selling - Here, the organization selects the media through which the communication of vacancies reaches the prospective candidates. Searching involves attracting the job seekers to the vacancies. The sources are broadly divided into two categories: **Internal Sources** and **External Sources**. #### Internal Sources - Internal sources of recruitment refer to hiring employees within the organization through - Promotions - Transfers - Former Employees - Internal Advertisements (Job Posting) - Employee Referrals - Previous Applicants #### External Sources - External sources of recruitment refer to hiring employees outside the organization through - Direct Recruitment - Employment Exchanges - Employment Agencies - Advertisements - Professional Associations - Campus Recruitment - Word of Mouth ### Screening - Starts after completion of the process of sourcing the candidates. Screening is the process of filtering the applications of the candidates for further selection process. It is an integral part of recruitment process that helps in removing unqualified or irrelevant candidates, which were received through sourcing. The screening process of recruitment consists of three steps - Reviewing Resumes and Cover Letters - Conducting Telephonic or Video Interviews - Identifying the Top Candidates #### Reviewing Resumes and Cover Letters - Reviewing is the first step of screening candidates. In this process, the resumes of the candidates are reviewed and checked for the candidates' education, work experience, and overall background matching the requirement of the job. While reviewing the resumes, an HR executive must keep the following points in mind, to ensure better screening of the potential candidates - Reason for change of job - Longevity with each organization - Long gaps in employment - Job-hopping - Lack of career progression #### Conducting Telephonic or Video Interviews - Conducting telephonic or video interviews is the second step of screening candidates. In this process, after the resumes are screened, the candidates are contacted through phone or video by the hiring manager. This screening process has two outcomes - It helps in verifying the candidates, whether they are active and available. It also helps in giving a quick insight about the candidate's attitude, ability to answer interview questions, and communication skills. #### Identifying the Top Candidates - Identifying the top candidates is the final step of screening the resumes/candidates. In this process, the cream/top layer of resumes are shortlisted, which makes it easy for the hiring manager to take a decision. This process has the following three outcomes - Shortlisting 5 to 10 resumes for review by the hiring managers - Providing insights and recommendations to the hiring manager - Helps the hiring managers to take a decision in hiring the right candidate ### Evaluation and Control - Are the last stage in the process of recruitment. In this process, the effectiveness and the validity of the process and methods are assessed. Recruitment is a costly process; hence it is important that the performance of the recruitment process is thoroughly evaluated. - The costs incurred in the recruitment process are to be evaluated and controlled effectively. These include the following - Salaries to the Recruiters - Advertisements cost and other costs incurred in recruitment methods, i.e., agency fees. - Administrative expenses and Recruitment overheads - Overtime and Outstanding costs, while the vacancies remain unfilled - Cost incurred in recruiting suitable candidates for the final selection process - Time spent by the Management and the Professionals in preparing job description, job specifications, and conducting interviews. ## Types of Recruitment 1. **Internal Recruitment** - is a recruitment which takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three - Transfers, promotions, and Re-employment of ex-employees. Internal recruitment may lead to increase in employee's productivity as their motivation level increases. It also saves time, money, and efforts. But a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside must be done. - **Transfers** Transfer refers to the process of interchanging from one job to another without any change in the rank and responsibilities. It can also be the shifting of employees from one department to another department or one location to another location, depending upon the requirement of the position. - **Promotions (through Internal Job Postings)** Promotion refers to upgrading the cadre of the employees by evaluating their performance in the organization. It is the process of shifting an employee from a lower position to a higher position with more responsibilities, remuneration, facilities, and status. Many organizations fill the higher vacant positions with the process of promotions, internally. - **RE-EMPLOYMENT OF EX-EMPLOYEES** - Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also. 2. **External Recruitment** - External sources of recruitment must be solicited from outside the organization. External sources are external to a concern. But it involves lot of time and money. The external sources of recruitment include - Employment at factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labor contractors, recommendations etc. - **APPLICATIONS FOR VACANCIES, PRESENTED ON A BULLETIN BOARD OUTSIDE THE FACTORY OR AT THE GATE.** This kind of recruitment is applicable generally where factory workers are to be appointed. There are people who keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment workers tend to shift from one factory to another and therefore they are called as "badly" workers. - **ADVERTISEMENT** It is an external source which has got an important place in recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. Medium used is Newspapers and Television. - **EMPLOYMENT EXCHANGES** There are certain Employment exchanges which are run by government. Most of the government undertakings and concerns employ people through such exchanges. Now-a-days recruitment in government agencies has become compulsory through employment exchange. - **EMPLOYMENT AGENCIES** There are certain professional organizations which look towards recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns. - **EDUCATIONAL INSTITUTIONS** There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions, is called as Campus Recruitment. They have special recruitment cells which helps in providing jobs to fresh candidates. - **RECOMMENDATIONS** There are certain people who have experience in an area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company must rely totally on such people which can later prove to be inefficient. - **LABOR CONTRACTORS** These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on contract basis, i.e. for a time. Under conditions when these contractors leave the organization, such people who are appointed must also leave the concern. ## Selection Process Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also save time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested. But selection must be differentiated from recruitment, though these are two phases of employment process. Recruitment is a positive process as it motivates more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing of data. While selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in staffing process. Selection involves choosing the best candidate with best abilities, skills, and knowledge for the required job. The Employee selection Process takes place in following order: 1. **Preliminary Interviews**- 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. 2. **Application blanks**- The candidates who clear the preliminary interview are required to fill application blank. It contains data record of the candidates such as details about age, qualifications, reason for leaving previous job, experience, etc. 3. **Written Tests**- Various written tests conducted during selection procedure are aptitude test, intelligence test, reasoning test, personality test, etc. These tests are used to objectively assess the potential candidate. They should not be biased. 4. **Employment Interviews**- 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. 5. **Medical examination**- Medical tests are conducted to ensure physical fitness of the potential employee. It will decrease chances of employee absenteeism. 6. **Appointment Letter**- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter. 7. **Receiving Applications** -Potential employees apply for a job by sending applications to the organization. The application gives the interviewers information about the candidates like their bio-data, work experience, hobbies and interests. 8. **Screening Applications** -Once the applications are received, they are screened by a special screening committee who choose candidates from the applications to call for an interview. Applicants may be selected on special criteria like qualifications, work experience etc. 9. **Employment Tests** -Before an organization decides a suitable job for any individual, they must gauge their talents and skills. This is done through various employment tests like intelligence tests, aptitude tests, proficiency tests, personality tests etc. 10. **Employment Interview** -The next step in the selection process is the employee interview. Employment interviews are done to identify a candidate's skill set and ability to work in an organization in detail. Purpose of an employment interview is to find out the suitability of the candidate and to give him an idea about the work profile and what is expected of the potential employee. An employment interview is critical for the selection of the right people for the right jobs. 11. **Checking References** -The person who gives the reference of a potential employee is also a very important source of information. The referee can provide info about the person's capabilities, experience in the previous companies and leadership and managerial skills. The information provided by the referee is meant to kept confidential with the HR department. ## Importance of the Selection Process 1. Proper selection and placement of employees lead to growth and development of the company. The company can, similarly, only be as good as the capabilities of its employees. 2. The hiring of talented and skilled employees results in the swift achievement of company goals. 3. Industrial accidents will drastically reduce in numbers when the right technical staff is employed for the right jobs. 4. When people get jobs, they are good at, it creates a sense of satisfaction with them and thus their work efficiency and quality improve. 5. People who are satisfied with their jobs often tend to have high morale and motivation to perform better. ## Induction Training and Employee Remuneration Induction training is a training provided to new employees by the employer in order to assist in adjustment to their new job tasks and to help them become familiar with their new work environment and the people working around them. This type of training will also outline the basic overview of the business and its services as well as the new employee's role in the environment. When done effectively, it increases employee retention and overall performance and happiness at work, benefiting both the organization and the employee. Induction training has many benefits for organizations and its employees. For the organization, an effective induction training system has the following advantages: ### For the Company a) Saves a lot of time and company money: Induction training provides all the