Fundamentals Of HRM PDF 2023

FUNDAMENTALS OF HRM Semester - I BA-PCEHRM Study Material - Module 2 2023 Module 02 Study Material Module-2 Human Resource Planning, Recruitment and Selection, Placements, Training and...

FUNDAMENTALS OF HRM Semester - I BA-PCEHRM Study Material - Module 2 2023 Module 02 Study Material Module-2 Human Resource Planning, Recruitment and Selection, Placements, Training and Induction Learning Objectives After reading this chapter, you should be able to: Understand the meaning of human resource planning Understand the importance of HRP in an organization. Understand the meaning of recruitment and selection. Understand the different methods of recruitment and process of selection. Understand the uses of tests and interviews in the selection procedure. Case Study: Sharf Corporation Ltd. Sharf Corporation Ltd. Is a medium size company in automobile industry producing and distributing Motorbikes. Rahul, an engineer by qualification was working with this company for many years. He had gathered good experience of working in many Departments. Presently, he was working in ‘Warranty Claims’ Dept. His responsibilities included settlement of warranty claims, advising Field Engineers about warranty guidelines and also regarding services to the customers, mainly to those engineers working with Dealers and Distributors. Considering his expertise and experience in the present Dept., his boss – Mohan Tondan – had assigned to him the responsibility of ‘Computerization of Warrant Claims’. One day Rahul heard of an opening for a ‘Field Engineer’ position in the company. He was very I am very interested in working as a ‘Field Engineer’. Therefore, as a first step, he approached his immediate superior Mr. Mohan Tondan; and asked to be considered as ‘Field Engineer’. Rahul pleaded that he is adequately qualified to become a ‘Field Engineer’. The idea was rejected by Mr. Mohan Tandon with comments, “ Let’s talk about it later”. In the meantime, Mohan Tondan left for a business trip. During the absence of Mohan Tondan, Rahul talked to Milind, who was in-charge of Customer Service Dept. and also boss of Mohan Tondan. Milind listened to Rahul carefully and recognized that Rahul is qualified for the position of ‘Field Engineer’. Milind was also favored promoting young talent from within the organization. A week later, Mohan Tondan returned from the business tour. One day he called Rahul in his office and opened the conversation as follows – “ I understand, you talked to Mr. Milind For Internal Circulation Only - Private Use 1 Module 02 Study Material in my absence about getting the position of ‘Field Engineer’. I cannot let you take this position. You know, we have switched to computerized ‘Warranty Claim Processing System’. The system is not yet fully implemented and is still on experimental basis. You have broadest experience in a team of my Ten subordinates and I depend on you.” Rahul was shocked. He was upset as he was denied the promotion of ‘Field Engineer’; although he was the best person in a group of Ten subordinates. One week later, Rahul came to know that the position of ‘Field Engineer’ is filled by taking candidate from outside the organization. Rahul was in a fix to decide about his next move. Questions 1. What would you do if you were in the position of Rahul? ( Give reasons) 2. Comment on the behavior of Mohan Tandon as a ‘Manager’ 3. How do you see the ‘Staffing (Recruitment) Policy’ of the company? 4. If you were in the position of Mohan Tandon, how would you have handled the case of Rahul? 2.1 Introduction and Meaning of Human Resource Planning Human Resource Planning is a systematic process of determining the future manpower requirements of an organization and the means for meeting those requirements in order to carry out the integrated plan of the organization. It involves estimating the size and make- up of the future workforce. It is an integral part of corporate planning and budgeting procedures since Human Resource costs and forecasts both affect and are affected by longer-term corporate plans. Like all good plans, Human Resource plans are based on premises – basic assumptions about the future. Forecasting generates these premises. In Human Resource Planning, 3 types of forecasts are required to be made: personnel needs, supply of candidate from within the organization and supply of candidates from outside the organization. 2.2 Importance of Human Resource Planning Human Resource is extremely important for any organization for one or more of the following reasons: 1. It helps in identifying the right type of people who will contribute towards achieving the organizational objectives. Human Resource Planning will enable getting such people at the right time and cost, which is so critical. For Internal Circulation Only - Private Use 2 Module 02 Study Material 2. HRP evaluates and even modifies organization’s strategic plan. It provides a clear picture of human resource supply from various sources and enables the organization to recruit the prospective employees from the most suitable source. Thus, it helps the organization to implement its strategies effectively without risks and uncertainties. 3. The changing business processes and consequent strategic alliances like expansion, diversification, restructuring etc results in changes in organization structure affecting manpower demand. HRP plays an important role in projecting these events and preventing uncertainties and having the right size of human resources. 4. The HRP enables the organization to cope with the changes in the competitive forces, market, technology and government regulations. Such changes generate change in the job content, skill demand, number and type of persons, for this the HRP takes up the responsibility to recruit the right type of people. 5. The demographic changes like changing profile of workforce, in terms of age, gender, education etc and changes in government policies in respect of reservations, child labour, working conditions etc affect the demand for and supply of human resources. HR plan predicts these changes and makes necessary adjustments in meeting HR requirements of an organization. 6. Changes in labor laws, pressure from trade unions, and political parties influence the demand for and supply of human resources. HR plans help in assessing the right kind of employees for the right position. 7. It is also required to identify areas of surplus or shortage of personnel across units or departments. Other Benefits It verifies the corporate plan of the organization. It offsets uncertainty and changes to the maximum extent possible and enables the organization to have the right men at the right time and in the right place. It provides scope for advancement and development of employees through training, development etc. It helps to anticipate the cost of salary enhancement, better benefits etc. It helps to take steps to improve human resources contributions in the form of increased productivity, sales, turnover etc. It facilitates the control of all the function, operations, contribution and cost of human resources. To plan for facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centers, company stores etc. For Internal Circulation Only - Private Use 3 Module 02 Study Material It causes the development of various sources of human resources to meet the organizational needs. 2.3 The Process of Human Resource Planning/steps in Human Resource Planning Human Resource Planning Model The process of human resource planning consists of following steps: 1. Analyzing the Corporate and Unit Level Strategies/Policies 2. Demand Forecasting 3. Supply Forecasting 4. Estimating the Net Human Resource Requirement 5. Action Plan for Redeployment, Redundancy or Retrenchment 6. Forecast Future Supply from all Sources 7. Action Plan for Outsourcing, Recruitment etc. 1. Analyzing the Corporate and Unit Level Strategies/Policies: For Internal Circulation Only - Private Use 4 Module 02 Study Material Organizational objectives, policies, strategies, unit level strategies give a clue to future requirements of manpower. Strategies like expansion, diversification, mergers, acquisitions, reduction in operations etc require the right kind of human resources. In addition, company’s policies towards its manpower policies, like using internal resources for promotion or external resources or dependence on certain caste or region for some jobs have also to be catered for. So, HR process will be dictated by following organizational policies; a. Internal Hiring or External Hiring b. Training & Development plans c. Union Constraints d. Job enrichment issues e. Rightsizing organization f. Automation needs g. Continuous availability of adaptive and flexible workforce 2. Demand Forecasting: It is the process of estimating the future quantity and quality of people required. The basis should be long term corporate plans. Demand forecasting should be based on the following factors. a. Internal Factors: i. Production levels ii. New products and services iii. Organizational structure iv. Employee separation v. Budget constraints b. External Factors: i. Economic climate ii. Laws and regulatory bodies iii. Technology changes iv. Social Factors v. Legal requirements with regards to reservations One of the most important aspects of demand forecasting is the forecasting of the quality of the human resources ( skills, knowledge, values ) in addition to the quantity if human Resources. The forecasting method includes Managerial Judgment, Statistical techniques, Work study techniques etc. 3. Supply Forecasting: For Internal Circulation Only - Private Use 5 Module 02 Study Material This process measures the number of people likely to be available from within and outside the organization after making allowance for absenteeism, internal movements and promotions, wastages, changes in hours and other conditions of work. Supply Analysis covers: a. Existing Human Resources: HR Audits facilitate analysis of existing employees with skills and abilities. The existing employees can be categorized as skills inventories (non-managers) and managerial inventories (managers). Skill inventory would include the following; i. Personal data ii. Skills iii. Special Qualifications iv. Salary v. Job History vi. Company data vii. Capabilities viii. Special preferences b. Management inventories would include the following: i. Work History ii. Strengths iii. Weaknesses iv. Promotion Potential v. Career Goals vi. Personal Data vii. Number and Types of Subordinates supervised viii. Total Budget Managed ix. Previous Management Duties c. Internal Supply Assessment: i. Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.) ii. Turnover rate (No. Of separations p.a. / Average employees p.a. X 100) iii. Conditions of work (working hours, overtime, etc.) iv. Absenteeism (leaves, absences) v. Productivity level vi. Job movements (Job rotations or cross functional utilizations) For Internal Circulation Only - Private Use 6 Module 02 Study Material d. External Supply Assessment: External sources are required for following reasons i. New blood, ii. New experiences iii. Replenish lost personnel iv. Organizational growth v. Diversification External sources can be colleges and universities, consultants, competitors and unsolicited applications. 4. Estimating the Net Human Resource Requirements: Net human resources requirements in terms of number and components are to be determined in relation to the overall human resources requirements for a future date and supply forecast for that date. The difference between overall human requirements and future supply of human resources has to be found out. This difference is a net human resource requirement. 5. Action Plan for Redeployment, Redundancy /Retrenchment: If future surplus is estimated, the organization has to plan for redeployment, redundancy etc. If surplus is estimated in some jobs, employees can be redeployed in other jobs where the deficit of employees is estimated. The organization should also plan for training or re-orientation before redeployment of employees. Redeployment takes place in the form of transfers. If the deficit is not estimated in any job/department and surplus is estimated for the entire organization, the organization, in consultation with the trade unions, has to plan for redundancy or retrenchment. Redeployment/Redundancy programs include the following: 1. Reduced Work Hours – Each worker works less hours and receives less pay, so jobs are saved. 2. Work Sharing- Employees share jobs or two employees work half time each. It’s a short term technique to solve the problem of retrenchment. 3. Layoffs- They can be permanent or temporary layoffs. 4. Leave of Absence without Pay- This technique helps the company to cut the labor cost and the employee to pursue his self-interest. This technique also helps the company in eliminating the unnecessary jobs in a phased manner. For Internal Circulation Only - Private Use 7 Module 02 Study Material 5. Voluntary/ Early Retirement (VRS)/Golden Handshake- Management provides cash rewards to those employees who opt for VRS in addition to normal retirement benefits. 6. Attrition – Attrition is a process whereby the incumbents leave their jobs for various reasons, those jobs will be kept vacant or unfilled. 7. Compulsory Retirement /Iron Handshake (CRS)- Surplus employees are identified and discharged from the service. 8. Creation of Ad-hoc Projects etc- Companies create ad-hoc projects in order to provide employment to the surplus staff for a short span of time. 6. Forecast Future Supply from all Sources. If a deficit is estimated in any department and in the entire organization, management has to forecast the future supply of human resources from various sources like internal sources, comparable organizations, educational and training institutions, employment exchanges, labour market etc. 7. Action Plan for Outsourcing, Recruitment etc.: If suitable candidates are available from internal sources of the organization then the management may prefer internal candidates and plan for promotion, transfer, training and development. If suitable candidates are available from external sources then the management may plan for outsourcing, recruitment and selection. Many professional organizations have been performing the outsourcing functions. These organizations employ human resources of different categories and supply them or lease them to various companies. They are paid commission for the same. This method helps the organizations to get human resources easily and readily, and they need not extensively plan about human resources. Recruitment and selection plan covers the number and type of employees recruited, when they are required for the job, time necessary for recruitment, and selection process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted etc. Training and Development Plans covers the areas to be developed, training techniques programs, training time, availability of trainers, cost benefit analysis of training, development of the employees and matching of their improved skills with future job requirements etc. The productivity plan includes maximization of productivity or minimization of labour cost per unit of output through technological changes, streamlining procedures and systems, productivity bargaining, training, financial incentives, organization development programs etc. For Internal Circulation Only - Private Use 8 Module 02 Study Material Retention plan has to be planned by the organization for the retention of the existing employees and avoid the employee’s mobility frequently. 8. Modify the Organizational Plan and Strategies: If future supply of human resources from all the external sources is estimated to be inadequate than the requirements, the manpower planner has to suggest to the management to alter or modify the organizational plan. 2.4 Meaning & Definition of Recruitment “Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates”. The Process begins when new recruits are sought and ends when their applications are submitted. Though theoretically the recruitment process is said to end with the receipt of applications, in practice, the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. The result is a pool of applicants from which selections for new employees are made.” Edwin. B. Flippo has defined recruitment as “The process of searching for prospective employees and stimulating them to apply for the job” 2.5 Methods of Recruitment 1. Traditional Methods of Recruitment: The traditional methods of recruitment are broadly classified into internal methods and external methods of recruitment. Internal methods are the sources within organizational pursuits. External methods are the sources outside organizational pursuits. A. Internal Methods of Recruitment: a. Present Permanent Employees: Organizations consider the candidates from this source for higher level jobs due to: availability of most suitable candidates for jobs relatively or equally to the external source, to meet the trade union demands and due to the policy of the organization to motivate the present employees. b. Present Temporary or Casual Employees: For Internal Circulation Only - Private Use 9 Module 02 Study Material Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on the present job. c. Retrenched or Retired Employees: Sometimes the organizations prefer to re-employee their retired employees as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotions etc. If an organization has retrenched any of its employees due to lack of work, then the organization can re-employee them as a part of their obligation or due to pressure from the trade union. d. Dependents of Disabled, Deceased, Retired and Present Employees: With a view to develop a sense of loyalty among the employees as well as their family members and to build their image, organizations provide employment opportunities to the dependents of disabled, deceased, retired and present employees. B. External Methods of Recruitment: a. Campus Recruitment: College Campuses are another very popular recruitment source. The growth of Management institutes, IIts and Regional Engineering Colleges has provided a popular source of recruitment. Private sector is able to attract many aspirants. It is an excellent source of recruiting management trainees. The promising students get job security immediately after securing degrees due to such campus interviews/recruitment. b. Private Employment Agencies /Consultants: Organizations depend on this source for highly specialized positions and executive positions. These consultant companies function on behalf of the client companies for recruitment of the right candidates, but it includes high cost. Sometimes it may lead to ineffectiveness in performance also. c. Public Employment Exchanges: The government setup public employment exchanges to provide information about vacancies to the candidates and to help the organizations in finding suitable candidates. The employment exchange act 1959 makes it obligatory for public sector and private sector enterprises in India to fill certain types of vacancies through public employment exchanges. d. Professional Organizations: Professional organizations maintain complete bio-data of their members and For Internal Circulation Only - Private Use 10 Module 02 Study Material provide the same to various organizations on requisition. They also act as an exchange between their members and recruiting firms in exchanging information, clarifying doubts etc. Organizations find this source more useful to recruit experienced and professional employees like executives, engineers managers etc. e. Data banks: The management can collect the curriculum vitae of the candidates from different sources like employment exchanges, educational training institutions etc and can use the same as and when required. f. Casual applicants: Candidates sometimes apply casually for jobs through mail or hand over the applications in the HR department, these act as a source when required. g. Similar Organizations: The management can employ the potential suitable candidates from similar organizations. This method will be most suitable when the organization is new in the market or going for any diversification or expansion programmes. h. Trade Unions: The management can even employ the candidates suggested by the trade unions. 2. Modern Methods of Recruitment: In addition to traditional methods a number of modern methods of recruitment are also used by the corporates. These sources are divided into internal and external methods. A. Internal Methods: a. Employee Referrals: This is one of the effective methods of recruitment in which the present employees will refer to the names of their friends or relatives who will be suitable for the required job in an organization. The employees are well aware about the qualification. Attitude, experience and emotions of their friends or relatives and they are even aware about the organization culture, the job requirement etc, as such they can make a preliminary judgment about the match between the job and their friends or relatives. This source reduces the cost and time required for recruitment and this method enhances the effectiveness of recruitment. B. External Methods: For Internal Circulation Only - Private Use 11 Module 02 Study Material a. Walk In: Walk-in interviews are a direct recruitment process where the candidates are asked to attend interviews directly at a particular time and date at a specified place. b. Consult In: The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates from among such candidates through the selection process. c. Head Hunting: The organizations request the professional consultancy firms to search for the best candidates in the industry and this source is particularly used for senior executive positions. d. Body Shopping: Professional organizations and hi tech training institutes develop the pool of human resources for the possible employment. Sometimes, these institutions themselves approach the prospective employers to place their human resources. These institutions are called body shoppers and their activities are called body shopping. This source is usually used in technology specific organizations. This is also known as employee leasing activity. The leasing firms employ the people and lease them for the use by various needy companies for payment of commission. e. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take-overs help in getting human resources. In addition the companies do also have alliances in sharing their human resources on an ad-hoc basis. f. Outsourcing: Some organizations even develop a human resource pool by employing the candidates for themselves. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on a temporary or ad-hoc basis. Various companies, rather than employing HRs, draw HRs from these organizations on commission basis. This arrangement is called out-sourcing. g. Tele Recruitment: Companies like marketing or BPOs even prefer to recruit human For Internal Circulation Only - Private Use 12 Module 02 Study Material resources through tele recruitment. h. E-Recruitment: The Internet has quickly become a very popular source of employment advertising. This source is quickly growing in popularity. Currently employers can post their openings to any of several newsgroups for free. Most employment advertisement firms can also post the jobs on the Internet; however, they charge a fee. A large and fast growing proportion of employers use the internet as a recruitment tool. More and more organizations are placing information about open positions on the World Wide Web. There are many websites through which recruitment takes place. Some of the examples are www.naukri.com, www.monster.com, etc. 2.6 Meaning and Definition of Selection: Selection is one of the most important of all functions in the management of personnel. Selection is more closely related to recruitment because both are concerned with processing individuals to place them in a job. Selection is next to recruitment. After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an organization, the management has to perform the function of selecting the right employees at the right time. “Right man at the right job” is the basic principle in selection. Selection is the process of collecting and evaluating information about an individual in order to extend an offer of employment. It is the process of logically choosing individuals who possess the necessary skills, abilities and personality to successfully fill specific jobs in the organization. Selection means a process by which the qualified personnel can be chosen from the applicants who have offered their services to the organization for employment. Thus the selection process is a negative function because it attempts to eliminate applicants, leaving the best to be selected. In the words of Dale Yodev, “Selection is the process in which candidates for employment are divided into two classes – those who are to be offered employment and those who are not”. In short, selection is the process of choosing a person suitable for the job out of several persons. According to Koontz & O'Donnell, “Selection is choosing from among candidates from within organization or from outside the most suitable person for the current or future positions.” For Internal Circulation Only - Private Use 13 Module 02 Study Material 2.7 Selection Procedure: Selection procedure employs several methods of collecting information about the candidate’s qualification, experience, physical and mental ability, nature and behavior, knowledge, aptitude and the like for judging whether a given applicant is or is not suitable for the job. Therefore, the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step, facts may come to light which are useful for comparison with the job requirement and employee specifications. Selection procedure is lengthy and time consuming particularly in the case of supervisory posts. Scientific Selection Process: For Internal Circulation Only - Private Use 14 Module 02 Study Material Following are the steps/ procedures of selection: 1. Job Analysis: - Job analysis is the basis for selecting the right candidate. Every organization should finalize the job analysis, job description, job specification and employee specification before proceeding to the next step of selection. Job analysis is defined as, “The process of determining, by observation and study and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from all others” Job description, “an organized, factual statement of duties and responsibilities of a job” Job specification, “is a statement of the minimum acceptable human qualities necessary to perform a job properly” 2. Application Form: - Application Form is also known as application blank. The technique of application blank is traditional and widely accepted for securing information from the prospective candidates. Where application forms are used, the data becomes a part of the employee’s record. The information is generally required on the following items in the application forms: Personal background information, Educational information, Work experiences, salary, personal details, expected salary and allowances etc. 3. Preliminary Interview: - Preliminary or initial interview is often held in case of “at the gate” candidate. This interview is usually of short duration and is aimed at obtaining certain basic information with a view to identifying the obvious misfits or unqualified. Thus, a preliminary interview is useful as a process of eliminating the undesirable and unsuitable candidate. If the candidate seems to possess the basic minimum requirements for efficient job performance, he is given an application form to be filled out by him. 4. Screening Application Form: - Information given in the application form is used for selection purposes. The applicant who seems to be not fit for the job on the basis of information given in the application blank is rejected out rightly at this stage. The applicants who have not furnished the required information may also be rejected. Applications will not be accepted after the close date. After the close date of the recruitment, the Job Expert for the hiring department and Human Resources will screen the application forms for minimum education and qualification requirements. A recruitment date may be extended if there are no qualified candidates. Recruitments can also be open until the position is filled; in this situation, applicants are reviewed and interviewed on a regular basis until an eligible candidate can be selected and appointed to the available position. For Internal Circulation Only - Private Use 15 Module 02 Study Material 5. Written test: - The organization have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate’s ability in arithmetical calculations, to know the candidate’s attitude towards job, to measure the candidates aptitude, reasoning, knowledge in various disciplines, general knowledge and English language. Intelligence tests measure the individual's capacity for reasoning, verbal comprehension, numbers, vocabulary, word fluency etc. Aptitude test measures an individual's capacity or talent ability to learn a job if he is given adequate training. 6. Preliminary interview: - The preliminary interview is to solicit necessary information from the prospective applicants and to assess the applicants suitability to the job. This may be conducted by an assistant in the personnel department. Preliminary interviews are short and known as stand up interviews or sizing up of the applicants or screening interviews 7. Business games: - Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel. They help to evaluate the applicants in the areas of decision making, identifying the potentialities, handling the situations, problem solving skills, etc. The various games are case study, role play, in basket method, sensitivity method, simulations etc. 8. Tests: - Psychological tests play a vital role in the employee selection. A psychological test is essentially an objective and standardized measure of sample behavior from which inferences about future behavior and performance of candidates can be drawn. 9. Final interviewing: - Final interview is usually followed by testing. This is the most essential step in the process of selection. In this step the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. The basic objective of the interview is to measure the applicant against the specific requirements of the job. Interviews must be conducted in a friendly atmosphere and the candidate must be made to feel at ease. The interviewer should not ask unwarranted questions which make the candidate nervous. It being a two way communication, the interviewee should also be given a chance to ask questions if he so likes, about the job and the organization. 10.Physical Examination: - The candidates who have crossed the above hurdles are required to go for the medical examination. This is very important because a For Internal Circulation Only - Private Use 16 Module 02 Study Material person with poor health cannot work competently and the investment on him may go waste. Thus, a thorough medical examination is essential 11.Reference Checks: - After completion of the final interview, the personnel department will engage in checking references. Candidates are required to give the name of reference in their application forms. These references may be from the individuals who are familiar with the candidate’s academic achievement or from the applicant’s previous employer, who is well versed with the applicant’s job performance, and sometimes from co-workers. If reference is checked in the correct manner, a great deal can be learned about a person that an interview or tests cannot elicit. A good reference check used sincerely fetches useful and reliable information to the organization. 12. Selection: - If a candidate successfully overcomes all the obstacles or tests given he would be declared selected. The line manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through the different techniques. After the final decision, the organization offers the job to the selected candidates. Appointment letter will be given to him mentioning the terms of employment, pay scales, post on which selected etc. 2.8 Tests and uses of Tests in Selection: Meaning: Tests are used for the purpose of selecting a candidate for an organization for placing or assigning a person to the job for which he is suitable. Uses of Tests in Selection The following are the uses of tests in selection process: Tests help the managers in evaluating the candidate’s suitability to the job. Tests measure the nature and degree of candidate psychological potentialities, based on psychological factors, essential to perform a given job situation. Tests help in judging the ability of a candidate in a given job situation. Tests help in ranking the candidates applied for a job. Tests are valuable in determining subsequent success on the job. Test results are more valuable in determining subsequent success on the job. Test results are more valuable in determining a candidate's weaknesses. Tests are useful when other selection devices of selection fail in providing valuable information. Tests examine the candidate’s intelligence, mechanical aptitude, clerical aptitude, job For Internal Circulation Only - Private Use 17 Module 02 Study Material knowledge, interest in the job, individual and group decision-making skills and personality. 2.9 - A Types of Tests and Types of Interviews: Job seekers who pass the screening and the preliminary interview are called for tests. Different types of tests may be administered, depending on the job and the company. Generally, tests are used to determine the applicant’s ability, aptitude and personality. The following are the type of tests taken: 1. Ability tests: Assist in determining how well an individual can perform tasks related to the job. An excellent illustration of this is the typing tests given to a prospective employer for a secretarial job. Also called ‘ACHIEVEMENT TESTS’. It is concerned with what one has accomplished. When an applicant claims to know something, an achievement test is taken to measure how well they know it. Trade tests are the most common type of achievement test given. Questions have been prepared and tested for such trades as asbestos workers, punch press operators, electricians and machinists. There are, of course, many unstandardized achievement tests given in industries, such as typing or dictation tests for an applicant for a stenographic position. 2. Aptitude test: Aptitude tests measure whether an individuals has the capacity or latent ability to learn a given job if given adequate training. The use of aptitude test is advisable when an applicant has had little or no experience along the line of the job opening. Aptitudes tests help determine a person’s potential to learn in a given area. An example of such a test is the general management aptitude tests (GMAT), which many business students take prior to gaining admission to a graduate business school programme. Aptitude test indicates the ability or fitness of an individual to engage successfully in any number of specialized activities. They cover such areas clerical aptitude, numerical aptitude, mechanical aptitude, motor coordination, finger dexterity and manual dexterity. These tests help to detect positive and negative points in a person’s sensory or intellectual ability. They focus attention on a particular type of talent such as learning or reasoning in respect of a particular field of work. 3. Intelligence test: This test helps to evaluate traits of intelligence. Mental ability, presence of mind (alertness), numerical ability, memory and such other aspects can be measured. Intelligence is probably the most widely administered standardized test in industry. It is taken to judge numerical skills, reasoning, memory and such other abilities. 4. Interest Test: This is conducted to find out the likes and dislikes of candidates towards occupations, hobbies, etc. such tests indicate which occupations are For Internal Circulation Only - Private Use 18 Module 02 Study Material more in line with a person’s interest. Such tests also enable the company to provide vocational guidance to the selected candidates and even to the existing employees. These tests are used to measure an individual’s activity preferences. These tests are particularly useful for students considering many careers or employees deciding upon career changes. 5. Personality Test: The importance of personality to job success is undeniable. Often an individual who possesses the intelligence, aptitude and experience for certain has failed because of inability to get along with and motivate other people. It is conducted to judge maturity, social or interpersonal skills, behavior under stress and strain, etc. this test is very much essential in case of selection of sales force, public relation staff, etc. where personality plays an important role. Personality tests are similar to interest tests in that they, also, involve a serious problem of obtaining an honest answer. 6. Projective Test: This test requires interpretation of problems or situations. For example, a photograph or a picture can be shown to the candidates and they are asked to give their views and opinions about the picture. 7. General knowledge Test: Nowadays G.K. Tests are very common to find general awareness of the candidates in the field of sports, politics, world affairs, current affairs. 8. Perception Test: At times perception tests can be conducted to find out beliefs, attitudes, and mental sharpness. Etc. 9. Graphology Test: It is designed to analyze the handwriting of individuals. It has been said that an individual’s handwriting can suggest the degree of energy, inhibition and spontaneity, as well as disclose the idiosyncrasies and elements of balance and control. For example, big letters and emphasis on capital letters indicate a tendency towards domination and competitiveness. A slant to the right, moderate pressure and good legibility show leadership potential. 10. Polygraph Test: Polygraph is a lie detector, which is designed to ensure accuracy of the information given in the applications. Department stores, banks, treasury offices and jewelry shops, that is, those highly vulnerable to theft or swindling may find polygraph tests useful. 11. Medical Test: It reveals the physical fitness of a candidate. With the development of technology, medical tests have become diversified. Medical servicing helps measure and monitor a candidate’s physical resilience upon exposure to hazardous chemicals. 2.9 - B Types of interview The interviews can be classified as follows, A. Classification according to structure: Unstructured or Non-directive Interview – No set of format to follow, so For Internal Circulation Only - Private Use 19 Module 02 Study Material interview can take various directions Structured or Direct interview – Questions and acceptable responses are specified well in advance B. Classification according to the purpose of the interview Stress Interview – purpose is to find out how a candidate behaves in a stressful situation i.e., whether he/she loses his temper, gets confused or frightened or feels frustrated. Generally S.I used for jobs wherein emotional balance or resistance to stress is required Appraisal Interview –actually a discussion between the supervisor and employer discussing the employee’s rating and possible Exit Interview –when an employee leaves the organization for any reason, an exit interview is often conducted to know the grievance and can have a solution for that C. Classification According to the Interview’s content Situational Interview – individual’s ability to project what is behavior will be in a given situation Job related Interview – in job related interview, the interview tries to deduce what the applicant’s on-the-job performance would be. Behavioral Interview – questions are asked how they have behaved in certain situation in past, and how they will behave in future in specific situations 2.10 Meaning and Definition of Placement Placement means offering the job to the finally selected candidate. Once the employee is selected he should be placed in a suitable job. According to Pigors and Myres, placement may be defined as “the determination of the job to which an accepted candidate is to be assigned, and his assignment to that job. It is matching of what the supervisor has reason to think he can do with the job demands(job requirements); it is matching of what he imposes(in strain, working condition) and what offers are in the form of payroll, companionship with other promotional possibilities etc.” A proper placement reduces the employee turnover, absenteeism and accident rate and improves morale. Placement is not an easy process. It is very difficult for a new For Internal Circulation Only - Private Use 20 Module 02 Study Material employee who is quite unknown to the job and environment. For this reason, the employee is generally put on a probation period ranging from one year to two years. At the end of the probation period, if the employee shows a good performance, he is confirmed as a regular employee of the organization. Thus, the probation period or trial period is a transition period at the end of which management has to take decision whether the employee should be made regular or relieved from the job. 2.11 Problems Involved in Placement: 1. Employee Expectations: Employee expectations from the job are the main source for the problems in placement. If the employee expects high salary, independent and challenging and the job offers low salary dependent and routine work, the employee finds himself misfit to the job. 2. Job Expectations / Description: Sometimes the expectations from the employee are more than the employee’s ability or skills. Then the HR manager finds the mismatch between the job and employee. 3. Change in Technology: Technological changes bring radical changes in the job description and specification. These changes result in the mismatch in the employee and the job. 4. Changes in the organization structure: Business grand strategies like mergers, acquisitions, downsizing, etc., result in organizational structure and there by changes in jobs. These changes result in the misfit between employee and job. 5. Social and Psychological Factors: The social and psychological factors involved in team work or group formation sometimes result in mismatch. How to Make Placement Effective 1. Job Rotation: The technique of rotating the employee among different jobs in the department/organization enables the employee to satisfy his aptitude for challenging work and finds the match between himself and the job. 2. Teamwork: The recent trend of job design is team building. The teamwork allows employees to use their skill, knowledge, abilities etc. and it minimizes the problems in placement. 3. Training and Development: Continuous employee training and management development help the employee to acquire new skills and knowledge, based on the redesigned jobs. This practice solves the placement problems. 4. Job Enrichment: Job enrichment provides challenging work and decision making authority to the employees. It gives the opportunity of utilizing the varied skills of the employees and minimizes problems in management. 5. Empowerment: Employee empowerment relating to the job makes the employee to exploit his potentialities and make use of them. This technique reduces the problems in placement. 6. Relocating the Employee: Companies having branches/offices at different For Internal Circulation Only - Private Use 21 Module 02 Study Material places select the candidate and place him at one branch initially and shift him to another branch/office at a later stage based on organization/employee requirement. Placing the employee at different places subsequently is called relocating the employee. 2.12 Meaning of Training and Development: Every organization needs the services of trained persons for performing the activities in a systematic way. The rapid growth of technological development makes the knowledge of the employee obsolete. They require constant training to cope with the needs of jobs. After selecting the employee the next task of the management is to give them proper training. Large organizations may employ a large number of persons every year. It may not be possible to recruit already trained persons. Every organization has to arrange some kind of training for preparing employees for jobs and also keeping them with the latest technological advancement. When a new employee joins an organization, he should be welcomed as a new member of the organization and must be helped to get acquainted and adjusted with his fellow employee and work environment. The first day of employment is long remembered by most people. Initial impression counts much, in the attitude of the employee towards the job and the company. Definition of Training and Development: Training is the act of increasing the knowledge and skill of an employee for doing a particular job. Training is a short term educational process utilizing a systematic and organized procedure by which employees learn technical knowledge and skills for a definite purpose. Edwin. B. Flippo - “Training is the act of increasing the knowledge and skill of an employee for doing a particular job” Training is the process of imparting necessary and immediate skills required to perform a present job. Through training the trainee acquires new skills, technical knowledge and problem solving ability. 2.13 Need for Training: Specifically the need for training arises due to the following reasons 1. To Increase the effectiveness of the organization: To achieve this objective the management development programmes work toward utilizing managerial abilities in a better way, help the manager to perform their functions effectively For Internal Circulation Only - Private Use 22 Module 02 Study Material and inject team spirit in the manager. 2. Building up a resource of qualified personnel: This is to keep a number of persons well trained and ready to take up higher positions and more responsibilities. 3. Development of methods to test the competence of the managers: In the organizations it becomes necessary to devise methods to measure the managerial abilities of the people on higher post and also measure the abilities of a person selected for a higher post. 4. Improvement of morale: It is necessary to inject self-confidence for the people working in higher posts for achieving the purpose the managerial group as a whole must have high morale. 5. Getting Talented people for the company: This is necessary to attract and maintain talented people working in the organization. 6. Replacement: It is replacing new talented people by removing old people. 7. Professionalism of management in India: In India majority of companies are owned by rich people who have run the companies using old methods for a number of years. 8. The need for training also arises to: ▪ Increase productivity. ▪ Improve quality of the product/service. ▪ Help a company to fulfill its future personnel needs. ▪ Improve organizational climate. ▪ Improve health and safety. ▪ Prevent obsolescence. ▪ Effect personal growth. ▪ Minimize the resistance to change and ▪ To act as a mentor. 2.14 Benefits of Training: 1. Benefits to the Organization a. Leads to improved profitability and/or more positive attitudes toward profits orientation. b. Improves the job knowledge and skills at all levels of the organization. Improves the morale of the workforce. c. Helps people identify with organizational goals. d. Helps create a better corporate image. e. Improves the relationship between boss and subordinate. f. Aids in organizational development. g. Learn from the trainee. h. Aids in understanding and carrying out organizational policies. i. Provides information for future needs in all areas of the organization. For Internal Circulation Only - Private Use 23 Module 02 Study Material j. Organization gets more effective in decision-making and problem solving. k. Aids in developing leadership skill, motivation, loyalty, better attitudes and other aspects that successful workers and managers usually display. l. Develops a sense of responsibility to the organization for being competent and knowledgeable. m. Improves labor-management relations. n. Reduces outside consulting costs by utilizing competent internal consulting. o. Helps employees adjust to change. p. Aids in handling conflict, thereby helping to prevent stress and tension. 2. Benefits to the Individual a. Helps the individual in making better decisions and effective problem solving. b. Through training and development, motivational variables of recognition, achievement, growth, responsibility and advancement are internalized and operationalized. c. Aids in encouraging and achieving self-development and self-confidence. d. Helps a person handle stress, tension, frustration and conflict. e. Provides information for improving leadership knowledge, communication skills and attitudes. f. Increases job satisfaction and recognition. g. Moves a person towards personal goals while improving interactive skills. h. Satisfies personal needs of the trainer (and trainee) i. Provides the trainee an avenue for growth and a say in his/her own future. j. Develops a sense of growth in learning. k. Helps a person develop speaking and listening skills; also writing skills when exercises are required. l. Helps eliminate fear in attempting new tasks. 3. Benefits in Personnel and Human Relations a. Improves communication between groups and individuals. b. Aids in orientation for new employees and those taking new jobs through transfer or promotion. c. Provides information on equal opportunity and affirmative action. d. Provides information on other governmental laws and administrative policies. e. Improves interpersonal skills. For Internal Circulation Only - Private Use 24 Module 02 Study Material f. Makes organization policies, rules and regulations viable. g. Improves morale h. Builds cohesiveness in groups. i. Provides a good climate for learning, growth, and coordination. Makes the organization a better place to work and live. 2.15 Methods of Training A) On the job training: 1. Job Rotation: Under this method, the trainee is deployed from one job to another. The rotation might be within the department or within the organization. The objective of job rotation is to make the trainee aware of the importance of all other jobs. 2. Observation: In this method, the trainee is asked to learn the job by observing people performing the same kind of job. 3. Lateral posting: In this method, a trainee is either transferred or promoted to learn the job and to find out whether he is eligible for higher jobs. 4. Attachment: It is also called understudy. In this method the trainee is made to assist his superior. In this method the trainee learns by observing, by guidance and by helping the superior. 5. Junior Boards and Committee: The junior boards and committees are associations deliberately formal in the organization. The activities carried out in these associations include discussion on various topics and finding solutions to the problems. The trainee is made a member of such association and he is asked to participate in the activities conducted by junior boards and committees. This method exposes the trainee to various problems faced by others. It also gives him an idea to know about the possible solutions for the problem. 6. Coaching: under this method, a superior or an expert demonstrates, gives suggestions, ideas to the trainee to perform his job. B) Off the job training: For Internal Circulation Only - Private Use 25 Module 02 Study Material It is a method which takes the trainee away from the working environment for the purpose of imparting necessary skills. Following are the methods of the off the job training: 1. Role Playing: Under this method, the trainee is given a role to play where he has to exact the role with the help of his own written script. Ex. The trainee might get a role of the managing directors the trainee has to assume that he is the managing director and act as managing director and give his solution to problem as a managing director 2. Case study: Under this method, a case is prepared based on business. The trainee is required to study the case, identify the problem, analyze the situation, give interceptions, conclusions and recommendations. At the end of this method, all the trainees given different case studies are asked to discuss their own case studies and also tell others the solutions given by them to the problem in the case study. 3. Management Games: In this method, a game is built around the model of a business situation. The trainees are divided into different teams, each team representing the management of a competing company, several teams are involved. A situation is given to all the teams (launching of a new product or selection of an investment portfolio. A definite time period is given to them that are asked to give their strategies regarding the situation. These strategies are fed to the computer, which is programmed to behave like a real market. The computer analyzes their strategies and declares one team as a winner. Based on the most profitable strategy, the other losing teams are given advice regarding the mistakes done by them. 4. In Basket exercise: Under this method, a trainee is put into a new job & he is presented with an in-basket (complaint or suggestions box) containing no. of letters, complaints, notes suggestion, etc. The trainee is given a short period of time in which he is asked to give his solutions to the complaints and suggestions in the in-basket. His reactions and responses are noted down and at the end of the session all the trainees exposed to the in-basket are asked to conduct a discussion. 5. Lecture & Special courses: Under this method, the trainee is asked to attend lectures given by experts from within the organizations or from a person outside the organization. The trainee is also asked to attend special courses and programs conducted by the other organizations 6. Conference & Seminars: Under this method, the organization sends the trainee to attend seminars and conferences where people from the same field assemble and talk on common topics. The trainee has to participate in such conferences & For Internal Circulation Only - Private Use 26 Module 02 Study Material seminars to know about the opinions and views of people from the same fields. C) Vestibule training: It is a combination of on-the job and off the job. Eg: The trainee will be taken away from the working environment and an artificial work environment will be created to conduct the training program. It is suitable when the organization is divided to train a large number of employees. Differences between Training and Development: The major differences between training and development are as under: Training is a learning process for new employees in which they get to know about the key skills required for the job. Development is the training process for the existing employees for their all-round development. Training is a short-term process i.e. 3 to 6 months, but development is a continuous process, and so it is for the long term. Training focuses on developing skill and knowledge for the current job. Unlike, the development which focuses on the building of knowledge, understanding and competencies for overcoming future challenges. Training has a limited scope; it is specific job oriented. On the other hand, development is career oriented and hence its scope is comparatively wider than training. In training, the trainees get a trainer who instructs them at the time of training. In contrast to development, in which the manager self-directs himself for the future assignments. Many individuals collectively attend the training program. Development is a self assessment procedure, and hence, one person himself is responsible for one’s development. 2.16 Meaning and Definition of Induction: Induction may be viewed as the socializing process by which the organization seeks to make an individual for the achievement of common objectives Edwin. B. Flippo - “Induction is the welcoming process to make the new employee feel at home and generate in him a feeling of belongingness to the organization”. 2.17 Objectives of Induction: An organization especially a large one should have a systematic induction process to achieve the following objectives and purpose Objectives For Internal Circulation Only - Private Use 27 Module 02 Study Material 1. To promote a feeling of belonging and loyalty to the organization. 2. To build up the new employee’s confidence in the organization and in himself so that he may become an efficient employee. 3. To bring an agreement between the organization goals and personal goals. To give the new employees information regarding the company its structures product, policies rules and regulations. 4. To introduce the new worker to the supervisor. 5. To lessen or reduce the cost of replacing the worker in the early impressionable period because of lack of information or incorrect Business impression. 2.18 Methods of Separation Separation is an important concept in Human Resource Management of any organization. Separation usually means discontinuation of service with the organization for the reason stated in the following paragraph. It actually means “an employee may be separated from the payroll of the company due to circumstances either on the part of the employee or on the part of the organization where an employee is dismissed or suspended or retrenched or laid off. 1. Voluntary Separations: As stated above, voluntary separations occur when the employee decides to terminate his or her relationship with the organisation. Quits and retirements are the most manifestations of voluntary separations. 2. Quits: An employee decides to quit when his or her level of dissatisfaction with the present job is high or a more attractive alternative job is awaiting the individual. The reasons for dissatisfaction may be because of the job itself or because of job extrinsic factors such as supervision, company policy, compensation, advancement opportunities, health, spouse relocation and the like. Thanks to the economic boom, jobs are available in plenty. Competent people will get multiple offers at any given time. Some of them stay with the organization in the name of loyalty or some other commitment. Majority accepts the more attractive offers and prefers to leave the company. Organizations often encourage quits through cash incentives. Popularly called voluntary retirement schemes (VRS), these separations are resorted to when organizations are experiencing losses. They resort to cost saving to save the bottom line and believe that the best way of cutting down the cost is through reducing the wage and salary bill. As VRSs are induced by the management, we prefer to discuss them under the involuntary separations category. For Internal Circulation Only - Private Use 28 Module 02 Study Material 3. Retirements: Retirements occur when employees reach the end of their careers. The age for an employee’s superannuation differs. In some States it is 58 years and in the Central Government it is 60. There is a thinking to raise the limit to 60 and 62 respectively as there is a shortage of skilled people to fill up the vacant jobs. Retirement differs from quits. When the employee superannuates and leaves the organization, he or she carries several benefits with himself or herself. Such a privilege is denied to the employee who quits. Second, retirement occurs at the end of an employee’s career but the quit can take place at any time. Third, superannuation shall not leave any soured relationship behind the retiree but a quit is likely to result in hurt feelings with the employer. 4. Involuntary Separations : Employers resort to terminate employment contract with employees for at least three reasons: a. organization is passing through lean period and is unable to maintain the existing labor, b. Initial faulty hiring resulting in mismatch between job and employee fit, and c. employee exhibits deviant behavior vitiating the environment around. Discharges, layoffs, VRS and rightsizing are the common methods of employer sponsored separations. 5. Discharges: A discharge takes place when the employer discovers that it is no more desirable to keep an employee any longer. Discharge, also called termination, should be avoided as far as possible. Any termination is a reflection on the company’s HR system. In addition, termination is expensive as the firm must seek replacement, hire and train the new hiree. Finally, a discharged individual is likely to badmouth about the company. Obviously, discharge needs to be viewed as a last resort. 6. Layoffs: A layoff is a temporary separation of the employee at the instance of the employer. Section 2 (KKK) of the Industrial Disputes Act, 1947, defines lay-off as the failure, refusal or inability of an employer to give employment to a worker whose name is present on the rolls but who has not been retrenched. A lay-off may be for a definite period on the expiry of which the employee will by recalled by the employer for duty. It may extend to any length of time, with the result the employer is unable to estimate when he or she can recall his or her employees. A lay-off may be occasioned by one of the following reasons: a. Shortage of coal, power or raw materials. b. Accumulation of stocks. c. Breakdown of machinery. d. For any other reason. i. As the employees are laid off at the instance of the employer, For Internal Circulation Only - Private Use 29 Module 02 Study Material they have to be paid compensation for the period they are laid off. Section 25 of the Industrial Disputes Act, 1947, makes it mandatory on the part of the employer to pay compensation for all the days of the lay-off. The compensation must be equal to half the normal wages the employee would have earned if he or she had not been laid off. ii. When a part of a section or department is' laid off, the management shall define the basis for laying off individuals. The basis for the lay-off may be merit or seniority. If merit is the basis, employees with unsatisfactory performance are laid off first. Performance appraisal is essential for the purpose of establishing who is efficient and who is below expectations. Competence as the basis for lay-off is not possible in unionized companies because of the outright resistance offered by union leaders. In such companies, seniority determines who should be laid off first. It goes without saying that the employees with the shortest period of service to their credit are first laid off and the older employees are retained as long as conditions permit. iii. Similarly, the basis for recalling the employees as soon as the lay-off is lifted needs to be made clear. After the lay-off, the management seeks to return to normal production as quickly as possible. Naturally, key employees must be the first to be recalled. The seniority system usually specifies that those who were laid off last will be called back first. Presumably, the more senior workers will have held the more important positions. This correlation is not always a perfect one however, and the management may seek to recall junior employees whose skills are essential for the resumption of production. 7. Resignation: A resignation refers to the termination of employment at the instance of the employee. An employee resigns when he or she secures a better job elsewhere, in the case of a female employee, when she marries and had to quit for personal reasons, or when an employee suffers from ill health. The administration of separation caused by resignation is very simple because the employee himself/herself is responsible for it. 8. Dismissal or Discharge : Where the termination of employment is initiated by the employer, it is known as dismissal or discharge, which is a drastic step and should be taken after careful thought. A dismissal needs to be supported by just and sufficient reasons. The following reasons lead to the dismissal of an employee: a. Excessive absenteeism. b. Serious misconduct. c. False statement of qualification at the time of employment. For Internal Circulation Only - Private Use 30 Module 02 Study Material d. Theft of company’s property. Dismissal shall be the last step and may be resorted to after all the efforts in salvaging the employee have failed. 9. Retrenchment: Retrenchment, too, results in the separation of an employee from his/her employer. It refers to the termination of the services of employees because of the replacement of labor by machines or the closure of a department due to continuing lack of demand for the products manufactured in that particular department of the organization. If the plant itself is closed, as was once done by the proprietors of the Binny Mills, Madras, the management and employees have to leave for good. Retrenchment, like lay-off, entitles the employees to compensation which, in terms of Section 25(f) of the Industrial Disputes Act, 1947, is equivalent to fifteen days’ average pay for every completed year of continuous service. However, retrenchment differs from lay-off in that, in the latter, the employee continues to be in the employment of the organisation and, is sure to be recalled after the end of the period of lay-off. But in retrenchment the employee is sent home for good, and his or her connections with the company are severed immediately. Retrenchment differs from dismissal as well. An employee is dismissed because of his or her own fault. Retrenchment, on the other hand, is forced on both the employer and his employees. Moreover, retrenchment involves the termination of the services of several employees. But dismissal generally involves the termination of the services of one or two employees. 10. Voluntary Retirement Scheme: Voluntary retirement scheme (VRS) is yet another type of separation. Beginning in the early 1980s, companies both in the public and private sector, have been sending home surplus labor for good, not strictly by retrenchment, but by a novel scheme called the VRS, euphemistically called the Golden Hand Shake plan. Handsome compensations are paid to those workers who opt to leave. For example, in Hindustan Lever, the VRS consisted of: a. Lump Sum payment equal to 2.25 times the July 1992 salary multiplied by the remaining years of service (subsequently reduced to 15 years of service). b. Pension equal to 70 per cent of the July 1992 salary payable till the age of 60 (the company’s retirement age). c. Prizes such as computers, trucks, houses, and so forth (99 in all) to be decided on the basis of a lucky draw. Managements prefer to pay hefty sums and reduce staff strength than retaining surplus labor and continuing to pay them idle wages. Further, VRS is perceived as a For Internal Circulation Only - Private Use 31 Module 02 Study Material painless and time-saving method of trimming staff strength, easing out unproductive older workers and other deadwood. Unions, too, cannot object as the schemes are voluntary. 2.19 Summary: Human Resource Planning is a systematic process of determining the future manpower requirements of an organization and the means for meeting those requirements in order to carry out the integrated plan of the organization HRP helps in finding the right kind of people for the right kind of job, helps in evaluating and modifying strategic plans, helps in formulating corporate plans etc. The process of HRP consists of analyzing corporate and unit level strategies, demand forecasting, supply forecasting, estimating net HR, plan for recruitment, to modify and adjust the organizational plan accordingly. Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates Recruitment sources include internal methods like promotion, transfers, retired employees, employee referrals, and external methods like campus interviews, body shopping, job fairs etc. Selection is the process of collecting and evaluating information about an individual in order to extend an offer of employment Selection procedure includes job analysis, Application, written examination, preliminary interview, business games and tests, final interview, medical examination, reference checks, job offer, employment. Placement means offering the job to the finally selected candidate. One the employee is selected he should be placed on a suitable job Training the employees in an organization is vital factor for the success of that organization. Training and development activities are designed at considerable costs notwithstanding, to impart specific skills, abilities and knowledge to employees. 2.20 Terminal Questions: Short Answer questions 1. What do you mean by HRP? 2. Explain any two points of importance of HRP. 3. List the steps in HRP. 4. Define Recruitment. 5. List out the steps in the selection procedure. 6. List out any five uses of tests in the selection procedure. 7. List out any 2 types of test? For Internal Circulation Only - Private Use 32 Module 02 Study Material 8. What is Placement? 9. What are the problems in placement? 10. What is training and induction? 11. Define induction? Long Answer Questions: 1. Define HR planning and give the importance of it. 2. What are the steps in the process of human resource planning? 3. Explain the methods or sources of recruitment. 4. Explain the steps in the selection process. 5. Explain the uses of Tests in the selection process. 6. Define Placement and explain the problems in Placement. 7. Discuss the various benefits of training? 8. Explain the various methods of training? For Internal Circulation Only - Private Use 33