Human Resource Management

Human Resource Management help in managing people from experts who have special competence in personnel A strategic and coherent approach management and industrial relat...

Human Resource Management help in managing people from experts who have special competence in personnel A strategic and coherent approach management and industrial relations. to the management of an organization's most valued assets - 4. Continuous Process: Human Resource the people working there who Management is not a "one shot" function. It individually and collectively must be performed continuously if the contribute to the achievement of its organizational objectives are to be achieved objectives. smoothly. “HRM is the process of managing people in organizations in a 5. Development-Oriented: HRM is structured and thorough manner” concerned with the development of every employee in the organization. It provides a Nature of Human Resource suitable training and development program Management to make the employee competent enough to achieve organizational goals. 1. Inherent Part of Management: Human resource management is inherent in the 6. Based on Human Relations: Human process of management. This function is resource management is directed for the performed by all the managers throughout improvement of human relations in the the organization rather than by the organization. It stresses the solution of personnel department only. If a manager is personnel problems for the achievement of to get the best of his people, he must both organizational goals and employees' undertake the basic responsibility of personal goals. Human resource selecting people who will work under him. management considers every employee as an individual so as to provide services for 2. People Centered: It is concerned with all facilitating their satisfaction and growth. categories of personnel from top to the bottom of the organization. The broad 7. Integrating Mechanism: HRM acts as an classification of personnel in an industrial intra-connecting mechanism between enterprise may be as follows: (i) Blue-collar various departments. It helps in maintaining workers (i.e. those working on machines and warm and cordial relationships between engaged in loading, unloading etc.) and people working at various departments and white-collar workers (i.e. clerical levels in the organization. HRM believes in employees), (ii) Managerial and non- teamwork for achievement of organizational managerial personnel, (iii) Professionals goals. (such as Chartered Accountant, Company Secretary, Lawyer, etc.) and non- SCOPE OF HUMAN RESOURCE professional personnel. MANAGEMENT 3. Pervasive Function: It is performed by all 1. Human resources planning: It is a process managers at various levels in the by which the company identifies the number organization. It is not a responsibility that a of jobs vacant, whether the company has manager can leave completely to someone excess staff or shortage of staff and to deal else. However, he may secure advice and with this excess or shortage. 2. Job analysis design: Job analysis gives a regarding compensation and other benefits. detailed explanation about each and every It is the job of the HR department to look job in the company. Based on this job into remuneration and compensation analysis the company prepares planning. advertisements. 8. Motivation, welfare, health and safety: 3. Recruitment and selection: Based on Motivation becomes important to sustain information collected from job analysis the the number of employees in the company. It company prepares advertisements and is the job of the HR department to look into publishes them in the newspapers. A the different methods of motivation. Apart number of applications are received after from this certain health and safety the advertisement is published, interviews regulations have to be followed for the are conducted and the right employee is benefits of the employees. selected thus recruitment and selection are yet another important areas of HRM. 9. Industrial relations: Another important area of HRM is maintaining co-ordinal 4. Orientation and induction: Once the relations with the union members. This will employees have been selected an induction help the organization to prevent strikes, or orientation program is conducted. The lockouts and ensure smooth working in the employees are informed about the company. background of the company. They are told The Objectives of HRM about the organizational culture and values and work ethics and introduced to the other 1. To establish and use a workforce that is employees. able and motivated, in order to achieve the goals of an organization. 5. Training and development: Every employee goes under a training program 2. To create the desirable organizational which helps him to put up a better structure and working relationships among performance on the job. Training program is all the members of the organization. also conducted for existing staff that have a lot of experience. This is called refresher 3. To integrate individuals and/or groups training. Training and development is one within the company by matching their goals area where the company spends a huge with those of the company. amount. 4. To ensure individuals and groups have the 6. Performance appraisal: Once the right opportunities to develop and grow employee has put in around 1 year of with the organization. service, performance appraisal is conducted 5. To use what human resources a company i.e. the HR department checks the has in the most effective way to achieve performance of the employee. Based on organizational goals. these appraisal future promotions, incentives, increments in salary are decided. 6. To ensure wages are fair and adequate and provide incentives and benefits thereby 7. Compensation planning and satisfying both individuals and groups. Also, remuneration: There are various rules to ensure ways of allowing recognition for Includes socialization, training, and challenging work, prestige, security and development for individuals and status. organization 7. To have continual high employee morale 4. Administration and good human relations by establishing Regulatory compliance and and improving conditions and facilities employee relations within the organization. Role of Human Resource 8. To improve the human assets by providing Management appropriate training programs on a There are several roles of human resources continual basis. within an organization: 9. To try to effect socio-economic change in Ensure the organization has the areas such as unemployment, under- right talent to achieve its strategic employment and inequality by distributing goals income and wealth. This way society can Develop people-related structures, benefit. Added employment opportunities policies, and procedures for women and the disadvantaged will also Ensure compliance with internal be impacted in a positive way. policy Ensure compliance with relevant 10. To offer opportunities for expression. federal and state legislature 11. To ensure that the organizational HR professionals are guardians and leadership works in a fair, acceptable and champions! They practice and promote the efficient manner. type of behavior that leads to a healthy and 12. To ensure a good working atmosphere productive culture and employment stability by having proper facilities and working conditions. 7 Essential Skills every HR Professional Need Today Functions of Human Resource Management Staffing 1. STRATEGIC AND INNOVATIVE 1. Staffing Today's HR is seen as a strategic Job and employee lifecycle function: partner for companies and thus, should beginning with job development always be armed with a full understanding of and ending with employee organizational mission and goals. A part of separation that strategy is to innovate and differentiate the company from the competition for 2. Compensation success. Includes factors that influence motivation, as well as compensation 2. MASTERY OF HR SYSTEMS and benefits management This refers to the knowledge in HRIS (Human Resource information system) to 3. Training & Development effectively analyze and manage data for daily HR functions like payroll. personnel present. instruct. and design training tracking, recruitment, and many others. programs efficiently. 3. COMMUNICATION SKILLS 7. DATA AND TECH SAVVY Aside from one-on-one or group In the modern landscape of hiring communication, HR teams also interact over and recruitment, HR teams should be the phone and through email, sometimes equipped with tech skills for data collection involving employee problems and concerns. and analysis. Tools such as Applicant They have to know how to communicate Tracking System (ATS) and Talent well and be excellent in critical listening in Management Software (TMS) should help whatever the platform they choose to use, HR teams to be accurate and up-to-date. and still come across convincing, caring, and credible. Chapter 2: Developing and Implementing Strategic HRM Plans 4. CONFLICT MANAGEMENT AND PROBLEM-SOLVING WHAT IS STRATEGIC PLANNING? To maintain a professional environment despite uncomfortable Strategic planning is the art of situations, HR professionals need to learn creating specific business strategies, how to manage conflicts and resolve implementing them, and evaluating the problems with grace. It starts by having a results of executing the plan, in regard to a keen interest in the issue and listening to company's overall long-term goals or conflicting parties. Quickly solving issues can desires. also maintain quality work output. HRM Strategic Plan vs HR Plan 5. ETHICAL APPROACH HRM Strategic Plan Upper management entrusts HR personnel with classified information, - major objectives the organization whether they're organizational details or wants to achieve employee matters. That's why it is essential - include long-term goals for them to have high ethical standards and HR Plan not divulge confidential information to unauthorized people. Discretion, - the specific activities carried out to professionalism, and trustworthiness must achieve the strategic plan be practiced. - include short-term objectives that are tied to the overall strategic plan 6. DEVELOP TRAINING PROGRAMS STRATEGIC PLANNING Training employees is not only beneficial for their personal goals, but also Each of these aspects has its own to the company, as it can solve skill gaps in part within the overall strategic plan of the the workforce. This also calls for HR organization personnel to learn how to accurately 1. Staffing - Staffing includes the Line managers share development of a strategic plan to Personnel joint responsibility determine how many people you might department in all areas of people responsible for need to hire. hiring and managing people management 2. Basic workplace policies - Development of policies to help reach the strategic plan's Creates a cost Contributes to the goals is the job of HRM. within an profit objectives of organization the organization 3. Compensation and benefits - In addition to paychecks, plans, health benefits, and HRM Personnel other perks are usually the responsibility of Management an HR manager. Acquisition, 4. Retention - Assessment of employees and Personnel development, strategizing on how to retain the best administration, utilization and employees is a task that HR managers labor relation maintenance of and employee oversee. Function human resources welfare are are major major functions 5. Training and development - functions of of personnel Determination of training needs and human resource management. development and implementation of management. training programs are important tasks in any It determines organization. human resource needs and It manages 6. Regulatory issues and worker safety - formulate people in Keeping up to date on new regulations policies by accordance with Objective relating to employment, health care, and matching the other issues is generally a responsibility that individual's organization's falls on the HRM department. needs with goal. organization's HRM vs Personnel Management needs. It regards people Personnel HRM Focus It regards as strategic and Management Focus Perspecti people as basic to make desired ve input to make valuable desired output resource Helping to achieve Administering of strategic goals Communication policies Communi Communication through people is limited, or cation is open even restricted. HRM training Stand-alone programs that are It emphasizes on It emphasizes on programs, such as integrated with combination of adherence of training company's mission Emphasis human rules and and values Emphasis regulations and  energies and their Organizational competencies implementation goals are Organizational achieved and goal is achieved Committed Result both employers and employers human resource and employees are satisfied Benefits are satisfied. Readiness to Disciplined change employees Benefits The Ulrich HR Model Increased Increased production production Increased profit A common way to look at HRM strategic Quality of planning, provides an overall view of the role worklife of HRM in the organization. His model is said to have started the movement that changed It is a traditional It is modern the view of HR; no longer merely a functional approach of approach of area, HR became more of a partnership managing managing people within the organization. people at the Approach at workplace and workplace and is is concern of His newly revised model looks at five a concern of the managers of all main areas of HR: personnel level department. 1. Strategic partner - Partnership with the It is a strategic It is a routine entire organization to ensure alignment of Nature function. function. the HR function with the needs of the Human values organization. Efficient and individual Focus management is 2. Change agent - The skill to anticipate and needs are given given priority. respond to change within the HR function, priority. but as a company as a whole. Jobs are Jobs are Job designed on the designed on the 3. Administrative expert and functional Design basis of basis of division expert - The ability to understand and teamwork of labor implement policies, procedures, and processes that relate to the HR strategic Interest of organization and organization’s plan. Interest interest of interest is 4. Human capital developer - Means to employee is valued the most. harmonized develop talent that is projected to be needed in the future. It is development 5. Employee advocate - Works for oriented. It It is disciplined, employees currently within the Orientati provides space direction and organization. on for employee control involvement, oriented. performance and growth. Keeping the Ulrich model in mind, consider these four aspects when creating a good HRM strategic plan: 1. Make it applicable - A good strategic plan should be the guiding principles for the HRM function. It should be reviewed and changed as aspects of the business change. 2. Be a strategic partner - Alignment of corporate values in the HRM strategic plan should be a major objective of the plan. 3. Involve people. An HRM strategic plan cannot be written alone. The plan should involve everyone in the organization 4. Understand how technology can be used - Organizations oftentimes do not have the money or the inclination to research software and find budget-friendly options for implementation. The Steps to Strategic Plan Creation 1. Conduct a Strategic Analysis A strategic analysis looks at three aspects of the individual HRM department: a. Understanding of the company mission and values. it is imperative for the HR manager to align department objectives with organizational objectives. b. Understanding of the organizational life cycle. An organizational life cycle refers to the introduction, growth, maturity, and decline of the organization, which can vary over time. c. Understanding of the HRM department Writing the HRM Plan mission and values. These guiding principles The six parts of the HRM plan for the department will include the following: change as the company's overall mission and values change. 1. Determine human resource needs - This d. Understanding of the challenges facing part will consist of determining how many the department. HRM managers should people are needed. This step involves know what upcoming challenges may be looking at company operations over the last faced to make plans to deal with those year and asking a lot of questions: challenges better when they come along. a. Were enough people hired? This makes the strategic plan and HRM plan b. Did you have to scramble to hire much more Angelica is pressable. people at the last minute? c. What are the skills your current 2. Identify Strategic HR Issues employees possess? In this step, the HRM professionals will d. What skills do your employees need analyze the challenges addressed in the first to gain to keep up with technology? step. Many organizations and departments e. Who is retiring soon? Do you have will use a strategic planning tool that someone to replace them? identifies strengths, weaknesses, f. What are the sales forecasts? How opportunities, and threats (SWOT analysis) might this affect your hiring? to determine some of the issues they are 2. Determine recruiting strategy - Once you facing. have a plan in place, it's necessary to write 3. Prioritize Issues and Actions down a strategy addressing how you will recruit the right people at the right time. Based on the data gathered in the last step, the HRM manager should prioritize the goals 3. Select employees - The selection process and then put action plans together to deal consists of the interviewing and hiring with these challenges. process. "the majority of studies say it costs An important aspect of this step is the an average of $45,000 to hire a new involvement of the management and manager." executives in the organization. 4. Determine compensation - In this aspect 4. Draw Up an HRM Plan of the HRM plan, the manager must determine pay scales and other Once the HRM manager has met with compensation such as health care, bonuses, executives and management, and priorities and other perks. have been agreed upon, the plans are ready to be developed. 5. Develop training - Once we have planned An HRM manager should always refer to the our staffing, recruited people, selected overall strategic plan before developing the employees, and then compensated them, HRM strategic plan and HR plans we want to make sure our new employees are successful. One way we can ensure success is by training our employees in three living document, in that it changes as main areas. organizational or external factors change. People can get too attached to a specific a. Company culture. A company culture is plan or way of doing things and then find it the organization's way of doing things. Every hard to change. The plan needs to change company does things a bit differently, and by constantly or it won't be of value. understanding the corporate culture, the employee will be set up for success. 3. Measure It b. Skills needed for the job. E.g., If your A good strategic plan and HR plan should company uses particular software, training is discuss the way "success" will be measured. needed in this area. c. Human relations skills. These are non-job- 4. Sometimes Change Is Necessary specific skills your employees need not only By monitoring the changes constantly to do their jobs but also to make them all. (usually done by asking lots of questions to around successful employees. other departments), you can be sure you are able to change your strategic plan as they 6. Appraise performance. Sets of standards come. need to be developed so you know how to rate the performance of your employees 5. Be Aware of Legislative Changes and continue with their development. Sets Because most budgets are based on certain of standards need to be developed so you current laws, knowing when the law changes and how it will affect department budgets know how to rate the performance of your employees and continue with their and planning (such as compensation development. planning) will create a more solid strategic plan. a. Employee appraisal b. Performance review c. 360 review Chapter 3: Job Analysis, and The Talent Management Process d. Career development review JOB Tips in HRM Planning A group of homogeneous tasks related by 1. Link HRM Strategic Plan to Company Plan similarity of functions. When performed by Understanding the nature of the business is an employee in an exchange for pay, a job key to being successful in creating a strategic consists of duties, responsibilities, and tasks plan for HRM. Because every business is (performance elements) that are: different, the needs of the business may change, depending on the economy, the defined and specific, and season, and societal changes in our country. can be accomplished, quantified, measured, and rated. 2. Monitor the Plan Constantly Developing the plan and then making Job Family Grouping of related jobs changes as necessary are important to with broadly similar content. making it a valuable asset for the organization. A strategic plan should be a  Job. Group of tasks, duties and responsibilities an individual performs that make up his or her total work assignment. Task. A specific statement of what a person does, with similar tasks grouped into a task dimension (i.e., a classification system). Uses of Job Analysis For example: The purpose of Job Analysis is to A technical service job family, for establish and document the 'job example, could be identified as relatedness' of employment procedures such as: follows: a. Human Resource Planning (HRP) - ✓ Job family. Technical Service. Human Resource Planning determines as to how many and ✓ Job. Technical service what type of personnel will be representative. needed in the coming period. Job related information is, therefore ✓ Task. Provides technical necessary for human resource support to customers by planning. telephone. b. Recruitment and Selection – In JOB ANALYSIS recruitment the job analysis helps “It is the process of analyzing a job on the human resource manager to locate basis of which job descriptions and job places to obtain employees for specifications are developed.” openings anticipated in the future. Job Analysis can be used in selection JOB DESCRIPTION - It is a critical component procedures to identify or develop: of both compensation and selection systems, basically define in writing the a. job duties that should be included in advertisements duties and responsibilities of employee, job of vacant positions; requirements, functions, duties, location, b. appropriate salary level for environment, conditions, and other aspects the position to help of jobs. Descriptions can be developed determine what salary either individually for each job or for entire should be offered to a job families candidate; c. minimum requirements JOB SPECIFICATION - A list of a job’s “human (education and/or requirements”: the requisite education, experience) for screening skills, knowledge, and so on. applicants; d. interview questions;  e. selection tests/instruments of an employee is compared and (e.g., written tests; oral assessed. tests; job simulations); f. applicant g. Safety and Health - job analysis appraisal/evaluation forms; provides an excellent opportunity to g. orientation materials for uncover and identify hazardous applicants/new hires conditions and unhealthy c. Training and Development - Job environmental factors like heat, Analysis can be used in noise, fumes and dust, so that training/"needs assessment" to corrective measures can be taken to identify or develop. minimise and avoid the possibility of human injury. ▪ training content ▪ assessment tests to STEPS IN JOB ANALYSIS measure effectiveness of training STEP 1: Determine the purpose of ▪ equipment to be used in conducting job analysis delivering the training ▪ methods of training (i.e., ✓ The purpose should be connected to small group, computer- the organizations success and based, video, classroom...) strategic goal. ✓ e.g., Rapid organizational expansion d. Job Evaluation – involves often necessitates the creation of determination of relative worth of new types of positions, which require each job for the purpose of the creation of job descriptions. establishing wage and salary differentials. Relative worth is STEP 2: Identify the jobs to be analyzed determined mainly on the basis of ✓ it can be determined which jobs job description and job should be included in the job analysis. specification. It helps in determining wage and salary grades for all the ✓ Time and resource constraints, on jobs. the other hand, frequently limit the overall number of jobs that can be e. Remuneration - Remuneration included in the process. involves fringe benefits bonus and STEP 3: Explain the Process other benefits. It must be based on the relative worth of each job. ✓ Study the previous work and Ignoring this basic principle results previously updated data. in inequitable compensation. ✓ Understand the jobs responsibilities f. Performance Appraisal – Job and how they fit into the overall work process is aided by workflow analysis. analysis facilitates performance appraisal in as much as it helps fix STEP 4: Plan and execute the job analysis standards for performance is project relation to what actual performance  ✓ A project action plan with project 3. Machines, tools, and equipment to activities and deadlines must be be used while performing a specific designed and the most applicable job data-gathering methodologies. 4. Additional tasks involved in a job 5. Desired output level (What is ✓ The next part discusses data expected of an employee?) collection methods. 6. Type of training required STEP 5: Write the job description and job JOB CONTEXT specifications The situation or condition in which an ✓ Job descriptions, and job employee performs a specific job is referred specifications must be developed after the data has been collected and to as job context. The following information analyzed. will be gathered: ✓ Before these documents are 1. Working Conditions finalized, a representative sample of 2. Risks involved affected employees and their 3. Whom to report managers should review them. 4. Who all will report to them 5. Hazards STEP 6: Periodic review 6. Physical and mental demands 7. Judgment ✓ Engaging in a systematic periodic evaluation of job descriptions and job JOB REQUIREMENTS specifications is good HR practice. These are the basic yet specific qualifications ✓ Many companies employ a rotating process, in which a component of the that an applicant must meet to be organization is reviewed each year, considered for a certain position. The with the entire organization being following information is to be gathered: reviewed once every three, four, or five years. 1. Basic information or knowledge required to complete a job properly WHAT TO COLLECT DURING JOB 2. Communication skills, IT skills, ANALYSIS? operational skills, motor skills, processing skills, and so on are all JOB CONTENT examples of specific talents. 3. Aptitude, thinking, manipulative It offers details about the numerous job talents, handling abrupt and tasks that are part of a specific job. It is a unexpected events, problem-solving detailed list of tasks that an employee must ability, mathematical abilities, and complete during their employment. A job so on are all examples of personal analyst will need to gather the following abilities. 4. Degrees, diplomas, certifications, information: and licenses are examples of educational qualifications. 1. Duties of an employee 5. Personal characteristics include 2. What an employee does adaptability to various environments, endurance, willingness, work ethic, passion to  learn and understand things, and includes the frequency and timing of behavior toward coworkers, tasks. The employee keeps logs over a subordinates, and seniors, sense of period of days or weeks. HR analyzes the belonging to the organization, etc. logs, identifies patterns and translates Job Analysis Methods them into duties and responsibilities. Open-ended questionnaire: Job Behavioral event interview: focuses incumbents and/or managers fill out solely on the evaluation of tasks, duties questionnaires about the KSAs and responsibilities. In behavioral event necessary for the job. HR compiles the interviewing: answers and publishes a composite ✓ A team of senior managers statement of job requirements. This identifies future performance method produces reasonable job areas critical to the requirements with input from organization's business and employees and managers and helps strategic plans. analyze many jobs with limited resources. ✓ HR assembles panels composed of individuals who are Highly structured questionnaire: These knowledgeable about the questionnaires allow only specific organization's jobs. These groups responses aimed at determining the may be employees, managers, frequency with which specific tasks are supervisors, trainers and others. performed, their relative importance and the skills required. The structured ✓ A facilitator interviews panel questionnaire is helpful to define a job members to obtain examples of objectively job behaviors and actual occurrences on the jobs. Interview: In a face-to-face interview, the interviewer obtains the necessary ✓ The facilitator develops detailed information from the employee about descriptions of each identified the KSAs needed to perform the job. The competency, including interviewer uses predetermined descriptive phrases for clarity. questions, with additional follow-up questions based on the employee's ✓ HR rates the competencies, and response. This method works well for panel members identify KSAs professional jobs. required to meet them. Observation: Observation provides a ✓ HR identifies performance realistic view of the job's daily tasks and standards for each job. The activities and works best for short-cycle organization must develop and production jobs. implement selection, screening, training and compensation Work diary or log: A work diary or log is instruments, or processes that a record maintained by the employee focus on competencies. WRITING JOB DESCRIPTION 72% of job seekers say it’s extremely or very important to see details about 52% CTED VIEW Enable Editing of job company culture. seekers say the quality of a job description is very or extremely influential on their Source: Indeed survey, n-2,091 decision to apply Source: Indeed survey, n-2,091 RESPONSIBILITIES & DUTIES 1. Outline the core responsibilities of the JOB TITLE position. Make sure your list of 1. Make your job titles specific. Targeted responsibilities is detailed but concise. job titles are more effective than generic Also emphasize the duties that may be ones, so be precise by including key unique to your organization. phrases that accurately describe the 2. Highlight the day-to-day activities of role. the position. This will help candidates 2. Avoid internal lingo that may confuse understand the work environment and the job seeker. Stick to standard the activities they will be exposed to on experience levels like “Senior” rather a daily basis. than “VI” or other terms people are less 3. Specify how the position fits into the likely to look for. The language of your organization. Indicate who the job job description should be as inclusive as reports to and how the person will possible. function within your organization. 36% of job seekers search by job title 71% of employers say they split the Source: Indeed survey, n=2,091 requirements of the role into two lists of must-haves vs nice-to-haves JOB SUMMARY Source: Indeed survey, n=250 1. Open with a strong, attention-grabbing SALARY & BENEFITS summary. Your summary should provide an overview of your company 1. Include a salary range. Quality and expectations for the position. candidates look for opportunities that meet their salary needs. Stand out from 2. Hook your reader with details about other employers by adding the salary what makes your company unique. band to your job description to help attract best fit candidates. Include details about your company culture to sum up why a candidate 2. List out your top perks and benefits. would love to work for you. Most jobseekers (83%) agree that a company’s benefits and perks have a 3. Include an exact job location. Provide significant impact on their decision of an exact job location to optimize your whether or not to accept a job offer job posting so it appears higher in job there. search results. 24% Almost 1 in 4 job seekers say that compensation is the most important part of a job description  Source: Indeeed survey, n-2,091 encouraged and stimulated to apply for the job in the organization. IMPORTANCE OF JOB ANALYSIS ▪ Recruitment is defined as a process that provides the organization with a pool of It is the foundation for anticipating a qualified job candidates from which to company's human resource demand choose. and supply. Job analysis aids in defining the “Before companies recruit, they must implement individual necessary to carry out a specific task. proper staffing plans and forecasting to determine how many people they will need. The It also aids in selecting training basis of the forecast will be the annual budget of content, tools, and equipment to be the organization and the short- to long-term utilized during training and training methodologies. plans of the organization—for example, the possibility of expansion.” The approach assists HR managers in determining an employees worth Forecasting is based on both internal and for a specific job position. external factors. Position analysis aids in the Internal factors include the following: evaluation of employee performance by establishing specific a. Budget constraints performance standards for each job. b. Expected or trend of employee Job analysis gives vital information separations about an incumbents duties and c. Production levels responsibilities. It also specifies the d. Sales increases or decreases jobs content and skill requirements. e. Global expansion plans It aids in identifying dangerous External factors might include the following environments and the a. Changes in technology implementation of corrective steps b. Changes in laws to ensure proper safety and avoid c. Unemployment rates unhealthy circumstances. d. Shifts in population It aids in the design, redesigning, e. Shifts in urban, suburban, and rural enriching, reviewing, and reducing areas and adding extra duties in a f. Competition particular job. Often Recruitment and Selection are interchangeably used and confused but there is a marked difference between the CHAPTER 4: RECRUITMENT two words, as recruitment itself is a positive term because it only stimulates people to WHAT IS RECRUITMENT? apply for the job to increase the hiring ratio ie. more number of applicants apply for the ▪ The Recruitment is the process of job. While selection is the negative term identifying and analyzing the job because it involves elimination during its requirements, and then finding the process rejecting a number of candidates, prospective candidates, who are then leaving only those who are appropriate to be hired.  whether the tasks and duties can be PURPOSE AND IMPORTANCE OF redistributed to other staff. RECRUITMENT: It is used to help write the job The importance of recruitment in the description and person organization is as: specification. 1. It helps to determine the present and 3. Stage 3 - Create a job description future requirements of the organization A job description is a list of tasks, duties, and in concurrence with personnel planning responsibilities of a job. and job analysis activities Tips to Writing a Good Job Description: 2. It increases the pool of job candidates ie ▪ Be sure to include the pertinent giving more options to the organization information: to select from the pool the right ✓ Title candidate for the organization. ✓ Department ✓ Reports to 3. It hereby increases the success rate of ✓ Duties and responsibilities selection process by reducing number of ✓ terms of employment under-qualified or over-qualified ✓ qualifications needed applications. ▪ Think of the job description as a 4. It helps to reduce the prospect of the job snapshot of the job. applicants once selected would leave ▪ Communicate clearly and concisely. shortly ▪ Make sure the job description is interesting to the right candidate 5. It helps to meet legal and social applying for the job. obligations ▪ Avoid acronyms. 6. It helps to identify and prepare potential ▪ Don’t try to fit all job aspects into job applicants the job description. ▪ Proofread the job description. 7. Evaluate the effectiveness of different recruitment techniques and sources for 4. Stage 4 - Create a job specification job applicants. A job specification is a document that states the skills and qualifications needed to do the THE RECRUITMENT PROCESS job. These skills and qualities can be listed as either essential or desirable. This will 1. Stage 1 - Identify the vacancy provide a series of measures against which Vacancies can become available in a the organization can judge people who business when: might take on the vacancy. Someone leaves, When someone moves job (job 5. Stage 5 - Advertise the job transfer or promotion) When a business grows Sources of Definition Method of advertising 2. Stage 2 - Carry out a job analysis Recruitment When a vacancy becomes available in an When you promote or move a Company intranet, Internal recruitment person who is already working organization it is important that the tasks for the company noticeboard and skills required for the position are National press, local press, identified. This is known as a job analysis. When you employ a person recruitment agencies, job It can be used to identify whether a External recruitment from outside the organization centres, online vacancy needs to be filled or advertisement A job can be advertised either internally or involves shifting an employee from externally. a lower position to a higher 6. Stage 6 - Send out application forms or position with more responsibilities, request CVs salary, facilities, and status. Application forms are sent out to candidates b. Transfers: Transfer involves lateral who wish to apply for the position. Or movement, ie process of alternatively a curriculum vitae (CV) will be interchanging from one job to requested. another without any change in the ▪ Application forms consist of pre- rank and responsibilities. It prepared questions set by the generally involves the shifting of organization. employees from one department ▪ Curriculum vitae (CVs) presents a to another department or one full history of your academic location to another location, credentials, so the length of the depending upon the requirement document is variable. of the organization. ▪ Resume presents a concise picture c. Job Posting (Internal of your skills and qualifications for a Advertisements): Job posting/ specific position, so length tends to Internal Advertisements is a be shorter and dictated by years of process of posting/advertising jobs experience (generally 1-2 pages). only within the organization for example in chain groups etc. This SOURCES OF RECRUITMENT job posting act as is an open The sources of recruitment are broadly invitation to all the employees divided into two categories: internal sources working within /inside the and external sources. Both the methods organization, they can only apply have their own merits and demerits. They for the vacant positions. It provides include shown in table equal opportunities to all the employees working in the INTERNAL SOURCES OF RECRUITMENT: organization. Thus, the recruitment Internal sources of recruitment refer to will be done from within the hiring manpower from within the organization and it is cost saving organization ie internally. This means, too. applicants applying for the different positions are those who are already working 2. Past Employees: within the same organization. This is an a. Recruiting Former Employees: important source of recruitment, as it Recruiting former employees is provides the opportunities for the another method of internal sources development and utilization of the existing of recruitment, in this the ex- resources within the organization as employees who are either retired or performance of employees, selected is have resigned from the organization already known to the organization. Let us due to some reasons are called back discuss different methods of the internal for rejoining as per the requirement sources. It includes: of the job and performance of the past employee. The benefit of this 1. Present Employees: It includes: method is that it is cost effective, a. Promotions: Promotion involves time saving and most important is upward movement, ie upgrading that the employee is well equipped the employees by evaluating their with the roles and responsibilities of performance in the organization. It the job so the organization is not  required to spend time and money him, as employee who are already on their training and development. working will have their own old ways of working. 3. Employee Referrals - In this method new ▪ It has limited scope because all the candidates are hired through the vacant positions cannot be filled references of employees, who are through this method. currently working within the same ▪ There are more chances of biasness organization. In this process, the present or partiality while recruiting employees are encouraged to refer their ▪ It sometimes develops Jealousy as friends and relatives for filling up the there could be issues in between the vacant positions. Most of the employees, who are promoted and organizations, in order to motivate their who are not. employees, to suggest referrals even ▪ It may become the cause of provide with a referral bonus etc for a disturbing the harmony of the successful hire. (This concept is much organization. popularized by BPO‘s or call center) ▪ If an internal resource is promoted or transferred, then that position 4. Previous Applicants - In this method the will remain vacant. Hiring team plays the major role they as ▪ Employees, who are not promoted, per the requirement of the organization may end up being unhappy, checks the profiles of previous rejected, and demotivated. applicants from the organizational recruitment database. These applicants EXTERNAL SOURCES OF RECRUITMENT: are basically those who have applied for External sources of recruitment refer to jobs earlier in the past but could not get hiring employees from outside the selected due to one or other reason, organization externally. It suggests that, their CV‘s are kept with HR department here the applicants seeking for the job are in the form of database. those who are external to the organization. Let us discuss different methods of the Merits & Demerits of Internal Sources of external sources: Recruitment: The advantages are as follows: 1. Direct Recruitment: In this method a ▪ It is simple, easy, quick, time saving notice of vacancy is placed on the notice and cost-effective method of board of the organization and the recruitment. suitable candidates can approach the ▪ There is no need of induction and concerned person, this method of training, as the candidates are sourcing is also called as factory gate already aware of their job and recruitment, as the blue-collar and responsibilities. technical workers are hired through this ▪ It motivates the employees to work process. hard, and increases the work relationship within the organization. 2. Employment Exchanges: Employment ▪ It helps in developing loyalty of the exchange is a government entity, where employee towards the organization. the details of the candidates’ requiring The disadvantages are as follows: jobs are stored and are given to the ▪ It stops the new innovative ideas employers for filling the vacant and thinking to come into the positions, As per the law, for certain job organization which a new blood vacancies, it is mandatory that the otherwise would have brought with organization provides details to the  employment exchange. This external recruitment, where the educational recruitment method is helpful in hiring institution such as colleges and employees at all levels. universities offer opportunities to the organization for hiring their students. In 3. Employment Agencies/ Professional this process, the organizations visit Associations/Consultants: Employment technical, management, and agencies / Professional professional institutions for recruiting Associations/Consultants are other students directly for the new positions. good source of external recruitment. Employment agencies can be private, 7. Word of Mouth Advertising: Word of public, or government owned. They act mouth is purely an intangible way of as a link between the prospective sourcing the candidates for filling up the candidates and employer. As they hold a vacant positions. As there are many database of qualified candidates and reputed organizations with such high provide it to the organization as and and good image in the market. That when required by them at some cost these organization names are more than who then select from among it. They enough for the job seekers. Such provide unskilled, semi-skilled and organizations only need a word-of- skilled resources as per the mouth advertising regarding a job requirements of the organization. vacancy to attract a large number of candidates. 4. Advertisements: Advertisements are the most popular and very much preferred 8. Labor Contractors: Manual workers or source of external source of recruitment Daily wage labors can be recruited as they can reach to huge masses within through contractors who maintain close same time and its proven fact that association with the sources of such response through advertisement is most workers. This source is used to recruit of the time positive. In this the job labor for construction jobs. vacancy is announced through various print and electronic media – newspaper, 9. Job Fairs: Job fairs are conducted by radio etc with all the details like specific different companies to attract job description and specifications of the candidates for entry level jobs. In this all requirements. the organization having vacancy collects at one place and organize a fair for the 5. Walk ins: This is the most common and job seekers who can directly go to the least expensive method for candidates desired counter of organization and can as in this the job seekers submit apply for the respective post and unsolicited applications or letters or company, it is another good method of resume or biodata to the organization external recruitment as through this and directly come for the selection company can get wider choices as well process as its similar to ‗open for all‘ as good for job seeker as get all the big and even preferred by employers as brands /non brands at one place so they they get a wider choice for selection for can choose among it and beside that its the post and moreover it is free from less costly than advertisements. hassles associated with other methods of recruitment. 10. Outsourcing: Outsourcing method involves hiring the candidates from 6. Campus Recruitment: This is another different organization for the work and most popular source of external in return the organization has to pay for  their services. It is similar to contractual service as for example: In India, the HR The disadvantages are as follows: processes are being outsourced from ▪ This process is time consuming, as more than a decade now. Outsourced the selection process is very lengthy. HR Firm help the organization to create ▪ Highly Expansive as compared to and screen the candidates for the recruiting through internal sources. organization for the final and further ▪ External candidates sometimes selection by the candidates for which HR even demand more remuneration firm will be paid for the services. and benefits. ▪ De-motivating for the existing 11. Poaching/Raiding: This is the latest employees leading to poor method of external recruitment being productivity and high labor turnover followed by the organizations today. ▪ Less Loyalty of employees towards Poaching means hiring a competent and the organization. experienced person already working in ▪ Requires training another reputed company in the same ▪ Requires more time to adjust with or different industry; the organization the environment of the organization might be a competitor in the industry. For this a company can attract talent TIPS FOR EFFECTIVE RECRUITING from another company by offering ▪ Look internally before externally: attractive pay packages and other terms there’s a good chance the best candidate and conditions, better than the current for your position is already working for employer of the candidate. your organization. Internal candidates are already familiar with and contributing 12. E-Recruitment: E-Recruitment or to your corporate culture and goals. recruitment through internet is the use Given their past success within your of technology to assist the recruitment organization, it is reasonable to expect process. It is gaining popularity from they will continue to excel in a new position. past few years. In this they advertise job vacancies through worldwide web. The ▪ Reach out to “passive” candidates: job seekers send their applications or there is a good chance your ideal candidate is not actively looking for a curriculum vitae (CV) through an e-mail new job and will not respond to your job using the Internet. board ad. effective recruiting requires you to look outside of your applicant pool Merits & Demerits of External Sources of for top talent. Recruitment: ▪ Hire the sure thing: according to two The advantages are as follows: authors and experts, you should hire the ▪ It encourages new opportunities for person who is already excelling doing the the job seekers. exact job in your industry. Past success, ▪ It helps in increasing the branding of in other words, is the best indicator of the organization future success. ▪ There are less chances of biasness or partiality between the employees. CHAPTER 5: SELECTION ▪ There is wide scope for selecting the right candidate, because of the large SELECTION number of candidates appearing. The selection process refers to the steps ▪ It brings in new ideas and innovative involved in choosing people who have the thinking with new blood coming in the organization. right qualifications to fill a current or future job opening.  person’s attributes for a specific job Managers and supervisors will be ultimately opening. responsible for the hiring of individuals, but the role of human resource management ▪ Reliability: refers to the degree in (HRM) is to define and guide managers in which other selection techniques this process.” yield similar data over time. The selection process is expensive. 2. APPLICATION AND RÉSUMÉ REVIEW. The time for all involved in the hiring Once the criteria have been developed process to review résumés, weight the (step one), applications can be applications, and interview the best reviewed. Reviewing may vary such as: candidates takes away time (and costs ▪ All the hiring decision makers may money). review all résumés, list the people they would like to meet in person, “It is important to hire the right person and then compare the lists. from the beginning and ensure a fair ▪ Rate each candidate and interview selection process.” only those above a certain score. THE SELECTION PROCESS When looking at résumés to determine CONSISTS OF FIVE DISTINCT whom to interview, a manager should ASPECTS: be concerned with the concepts of: 1. CRITERIA DEVELOPMENT. The first a. Disparate impact is unintended aspect to selection is planning the discrimination against a protected interview process, which includes group as a whole through the use of criteria development. Criteria a particular requirement. It may be development means determining which present in the interviewing process, sources of information will be used and as well as other employment- how those sources will be scored during related processes such as pay raises the interview. and promotions. The criteria should be related b. Disparate treatment in hiring might directly to the job analysis and the include not interviewing a candidate job specifications. because of one’s perception about Include things like personality or the candidate’s age, race, or gender. cultural fit, which would also be part The last consideration is the hiring of of criteria development. internal versus external candidates. By setting criteria ahead of time, the hiring For example: team has a clear picture of exactly what A bidding process may occur to notify qualifications they are looking for. As a internal candidates of open positions. result, it is easier to determine who should This way, an HR professional can be move forward in the selection process. assured that disparate treatment does not occur because of favoritism. 2 Important Qualities of Selection Instrument (Validity and Reliability) 3. INTERVIEWING. After the HR manager and/or manager have determined which ▪ Validity: The validity refers to how applications meet the minimum criteria, useful the tool is to measure a he or she must select those people to be  interviewed. Interview processes can be f. Group interview. In a group interview, time-consuming, so it makes sense to two or more candidates interview at the choose the right type of interview(s) for same time. This type of interview can be the individual job. an excellent source of information if you need to know how they may relate to In an unstructured interview, other people in their job. questions are changed to match the g. Video interviews. are the same as specific applicant; for example, traditional interviews, except that video questions about the candidate’s technology is used. This can be cost background in relation to their saving if one or more of your candidates résumé might be used. are from out of town. h. Nondirective interview (sometimes In a structured interview, there is a called an unstructured interview). In a set of standardized questions based nondirective interview, the candidate on the job analysis, not on individual essentially leads the discussion. Some candidates’ résumés. The expected very general questions that are planned or desired answers are determined ahead of time may be asked, but the ahead of time, which allows the candidate spends more time talking interviewer to rate responses as the than the interviewer. The questions may candidate provides answers. be more open ended. TYPES OF INTERVIEWS INTERVIEW QUESTIONS a. Traditional interview. This type of a. A situational interview is one in which interview normally takes place in the the candidate is given a sample situation office. It consists of the interviewer and and is asked how he or she might deal the candidate, and a series of questions with the situation. are asked and answered. b. Telephone interview. A telephone Examples: interview is often used to narrow the list i. If you saw someone stealing from of people receiving a traditional the company, what would you do? interview. ii. One of your employees is c. Panel interview. A panel interview performing poorly, but you know he occurs when several people are has some personal home issues he is interviewing one candidate at the same dealing with. How would you handle time. complaints from his colleagues d. Information interview. Informational about lack of performance? interviews are usually used when there iii. A coworker has told you she called is no specific job opening, but the in sick three days last week because candidate is exploring possibilities in a she actually decided to take a given career field. vacation. What would you do? e. Meal interviews. Many organizations offer to take the candidate to lunch or b. In a behavior description interview, the dinner for the interview. This can allow candidate is asked questions about for a more casual meeting where, as the what he or she actually did in a variety interviewer, you might be able to gather of given situations. The assumption in more information about the person, this type of interview is that someone’s such as their manners and treatment of past experience or actions are an wait staff. indicator of future behavior.  ▪ Contrast bias is a type of bias that occurs TYPES OF INTERVIEW QUESTIONS when comparing one candidate to THAT WOULD BE CONSIDERED others. ILLEGAL. ▪ A gut feeling bias is when an interviewer relies on an intuitive feeling about a ▪ National origin. You cannot ask candidate. seemingly innocent questions such as ▪ Generalization bias can occur when an “That’s a beautiful name, where is your interviewer assumes that how someone family from?” This could indicate behaves in an interview is how they national origin, which could result in always behave. bias. ▪ Cultural noise bias occurs when a candidate thinks he or she knows what ▪ Age. You cannot ask someone how old the interviewer wants to hear and they are, and it is best to avoid questions answers the questions based on that that might indicate age. assumption. ▪ Nonverbal behavior bias occurs when an ▪ Marital status. You can’t ask direct interviewer likes an answer and smiles questions about marital status or ages of and nods, sending the wrong signal to children. the candidate. ▪ A similar to me bias (which could be ▪ Religion. It’s illegal to ask candidates considered discriminatory) results when about their religious affiliation or to ask an interviewer has a preference for a questions that may indicate a religion- candidate because he or she views that affiliated school or university. person as having similar attributes as themselves. ▪ Disabilities. You may not directly ask if ▪ Recency bias occurs when the the person has disabilities or recent interviewer remembers candidates illnesses. You can ask if the candidate is interviewed most recently more so than able to perform the functions of the job the other candidates. with or without reasonable accommodations. INTERVIEW Process ▪ Criminal record. While it is fine to Once the criteria have been selected and perform a criminal record check, asking interview questions developed, it is time to a candidate if they have ever been start interviewing people. Your interviewing arrested is not appropriate. plan can determine the direction and process that should be followed: ▪ Personal questions. Avoid asking personal questions, such as questions a. Recruit new candidates. about social organizations or clubs, b. Establish criteria for which candidates unless they relate to the job. will be rated. c. Develop interview questions based on TYPES OF INTERVIEW BIAS. the analysis. d. Set a time line for interviewing and Interview bias is when an interviewer makes decision making. assumptions about the candidate that may e. Connect schedules with others involved not be accurate. These assumptions can be in the interview process. detrimental to an interview process f. Set up the interviews with candidates and set up any testing procedures. g. Interview the candidates and perform Intelligence Tests: These tests try to any necessary testing. measure the overall intelligence of the h. Once all results are back, meet with the person to do the job and solve various hiring team to discuss each candidate problems that he/she might encounter and make a decision based on the while doing the job. established criteria. o Verbal Ability Tests – These tests i. Put together an offer for the candidate. measure spelling, grammar, ability to understand analogies TIPS TO CONSIDER WHEN WORKING WITH and follow detailed written THE INTERVIEW PROCESS: instructions. o Numeric Ability Tests – These ▪ Make sure everyone is trained on the tests measure basic arithmetic, interviewing process. number sequences, simple ▪ Listen to the candidate and try to mathematics, and numerical develop a rapport with them. critical reasoning questions. ▪ Be realistic about the job. o Abstract Reasoning Tests – These ▪ Be aware of your own stereotypes and measure and identify the do not let them affect how you view a underlying logic of a pattern and potential candidate. then determine the solution. ▪ Watch your own body language during Mechanical Aptitude Tests: They the interview and that of the candidate. measure orientation of a person to ▪ Stick to your criteria for hiring. perform a mechanical job. ▪ Learn to manage disagreement and Skill Tests: Such tests attempt to determine a fair process determine whether the skill of the person in doing a particular job is at 4. TEST ADMINISTRATION. Any number of compilation (just acquired skill) or at tests may be administered before a automaticity (expertise) level. hiring decision is made. These include c. Personality test. Some employers use drug tests, physical tests, personality personality test to ensure a better tests, and cognitive tests. Some candidate-job fitment. The “Big Five” organizations also perform reference personality test looks at extroversion, checks, credit report checks, and agreeableness, conscientiousness, background checks. neuroticism, and openness. Self- assessment statements might include The major categories of tests include the the following: following: ▪ I have an assertive personality. a. A cognitive ability test can measure ▪ I am generally trusting. reasoning skills, math skills, and verbal ▪ I am not always confident in my skills. abilities. b. Aptitude tests can measure things such ▪ I have a hard time dealing with as mechanical aptitude and clerical change. aptitude. Usually, an aptitude test asks d. Physical ability test. Physical ability tests specific questions related to the need to show direct correlation with the requirements of the job. The test job duties. measures cognitive skills and e. A job knowledge test measures the observational skills (aptitude test) candidate’s level of understanding required for the job. about a particular job. f. Work sample tests ask candidates to show examples of work they have  already done. These work samples can ▪ In multiple hurdle model, only often be a good indicator of someone’s candidates with high (preset) scores go abilities in a specific area. to the next stages of the selection process. Reference checking is essential to verify a candidate’s background. It is an added 5. MAKING THE OFFER. The last step in the assurance that the candidate’s abilities are selection process is to offer a position to parallel with what you were told in the the chosen candidate. Making the offer interview. Some of these questions might to the chosen candidate can be equally include the following: as important as the interview process. 1. What was the title and responsibilities of the position the candidate had while at ▪ Once you have determined in the your company? interview process that the salary 2. Do you think the candidate was qualified expectation is in the range of what you to assume those responsibilities? can offer, the first step is to make the 3. Does this person show up on time and offer as soon as the decision is made. have good attendance? 4. Would you consider this person a team ▪ Once the offer has been made, it is player? reasonable to give the candidate some 5. What are the three strongest and time to decide, but not too long, as this weakest characteristics of this can result in losing other candidates candidate? should this candidate reject the job 6. Would you rehire this person? offer. Other Forms of Tests/Checking Some tips to successfully negotiate are - Criminal background checks included below - Credit checks i. Be prepared. Know exactly what you - Drug testing can and can’t offer. other forms of tests/checking ii. Explain the career growth the - Physical examination organization can provide. - Honesty test iii. Address the benefits of the candidate’s joining the organization. Selection Method iv. Discuss the entire offer, including ▪ A clinical selection approach it involves other benefits offered to the all who will be making the decision to employee. hire a candidate. The decision makers v. View the negotiation as a win-win review the data and, based on what they situation. learn from the candidate and the vi. Be able to provide salary research of information available to them, decide similar positions and competitors who should be hired for a job. for the same job title. vii. Use the trading technique. ▪ In the statistical method, a selection model is developed that assigns scores ▪ Once the phone call is made and the and gives more weight to specific candidate accepts the offer, an e-mail or factors, if necessary. formal letter should follow, outlining details of the employment agreement. ▪ A multiple cutoff model requires that a The employment agreement or offer candidate has a minimum score level on letter should include the following: all selection criteria.  i. Job title ii. Salary iii. Other compensation, such as bonuses or stock options iv. Benefits, such as health-care coverage, 401(k) v. Vacation time/paid holidays vi. Start date vii. Non-compete agreement expectations viii. Additional considerations such as relocation expenses ▪ Once the pay and benefits package has been successfully negotiated and the offer letter (or e-mail) sent, you should clarify acceptance details in writing and receive confirmation of the start date. 3 TRADITIONAL METHODS FOR PERSONNEL SELECTION 1. Phrenology: One of the most popular techniques for personnel selection during nineteenth century was phrenology which is concerned with identification of mental abilities, perception, and characteristics. 2. Physiognomy: is the art of judging character from appearance specially the face. It is based on the assumption that face is an index of mind. 3. Graphology is the art of estimating a person’s character, etc. from his handwriting. It was used by Chinese in eleventh century to predict personality characteristics based on handwriting.