shah mahmood hr practices

Upload: muhammad-usman

Post on 03-Apr-2018

239 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/28/2019 Shah Mahmood HR Practices

    1/73

    A PROJECT REPORT ON

    Study of Recruiting & Selection

    Practices in NGOs in AfghanistanA Case Study of the

    Swedish Committee for Afghanistan (SCA)

    BY

    SHAH MAHMOOD

    Term: C, BBA EveningReg #: 302-061114

    (2006 2010)

    Submitted to

  • 7/28/2019 Shah Mahmood HR Practices

    2/73

    Name of Discipline

    Name of Supervisor Signature of Supervisor

    Name of Head of the department Signature of Head of the department

    Name of vice Chancellor Signature of Vice Chancellor

    Thesis Approval Form

    The undersigned certify that they have read the following thesis and are satisfied with the overall exam

    performance, and recommend the thesis to the Faculty of business Administration for acceptance:

    Study of Recruiting & Selection Practices in NGOs in

    Afghanistan

    Submitted By: SHAH MAHMOOD Registration #: 302-061114

    Bachelor of Business Administration (BBA)

    ___________________________________

    ______________________________ ______________________________

    _____________________________ ______________________________

    ______________________________ ______________________________

    _______________________

    Date

    i

  • 7/28/2019 Shah Mahmood HR Practices

    3/73

    Declaration Form

    I Shah Mahmood

    Son of Abdul Salam

    Registration # 302-061114

    Discipline BBA

    Candidate of Bachelor of Business Administration (BBA) at the Kardan Institute of Higher

    Education Kabul, Afghanistan do hereby declare that the thesis Study of Recruiting& Selection Practices in NGOs in Afghanistan submitted by me in partialfulfillment of BBA (HONS) degree, is my work, and has not been submitted or published

    earlier. I also solemnly declare that it shall not, in future, be submitted by me for obtainingany other degree from this or any other university or institution.

    4th April, 2010 Signature of Candidate

    ii

  • 7/28/2019 Shah Mahmood HR Practices

    4/73

    Acknowledgment

    First of all I would thank Almighty ALLAH who has guided me the way for a bright future.

    It is not possible to prepare a project report without the assistance & encouragement of

    other people. This one is certainly no exception.

    On the very outset of this report, I would like to extend my sincere & heartfelt

    obligation towards all the personages. Without their active guidance, help, cooperation &

    encouragement, I would not have made headway in the project.

    I would like to express my sincere thanks to Swedish Committee for Afghanistan

    (SCA) who gave me the opportunity to work with such an esteemed organization.

    I owe profound sense of regards & gratitude towards (Manager - HR) who has

    Continuously guided me & supported in all the tasks by giving me valuable insight into

    issues like the meaning of HR practices, its uses, objectives and tools as well as steps

    to be considered in developing and studying g an organizational structure.

    I owe debt of gratitude to SCA management who have given me enough support

    & cooperation to me by finding time from their hectic schedule. I also thank them for

    guiding me, clearing the doubts & advising me in the right time to make this project a real

    learning experience. I am thankful to the entire employees at SCA for their cooperation

    during writing this project.

    I would like to acknowledge the help provided by my teacher to make this project a success.My teacher Mr. Mohammad Sultan provided guidance and learning at every step of the

    project, which helped me, a lot in the questioning, data collection and preparation of this

    report. He always gave full energy and showed willingness in my project.

    I am also thankful to my parents who accommodated me during those long hours of work in

    my project development and all the friends and colleagues who equally encouraged me.

    Thanking you:

    Shah Mahmood

    iii

  • 7/28/2019 Shah Mahmood HR Practices

    5/73

    Executive Summary

    The importance of personnel management is being increasingly realized in Governmental,

    non-governmental, industrial and non-industrial organization both in Afghanistan and

    abroad. The realization has come about because of increasing complexity of the tasks of

    managers and administrators. Today, in every organization personnel planning as an activity

    is necessary. It is an important part of an organization. Human Resource Planning is a vital

    ingredient for the success of the organization in the long run. There are certain ways that are

    to be followed by every organization, which ensures that it has right number and kind of

    people, at the right place and right time, so that organization can achieve its planned

    objective. The objectives of human resource department are human resource planning,

    recruitment and selection, training and development, career planning, transfer and promotion,

    risk management, performance appraisal and so on. Each objective needs special attention

    and proper planning and implementation.

    For every organization it is important to have a right person on a right job. Recruitment and

    selection plays a vital role in this situation. Shortage of skills and the use of new technology

    are putting considerable pressure on how employers go about recruiting and selecting staff. It

    is recommended to carry out a strategic analysis of recruitment and selection procedure.

    In most organizations the problems of getting the competent and relevant people, retaining

    them, keeping up their motivation and morale, and helping them to both continuouslygrow and contribute their best to the organizations, are now viewed as the most critical

    problems. So with this reference the project titled has been conducted, based on the primary

    research in Swedish Committee for Afghanistan (SCA), and literature review and secondary

    data from various sources. Division has been prepared to get a better insight into the

    management practices adopted by SCA with reference to HR Policies prepared by the HR

    department in organization. With reference to this context, this project is been prepared to

    put a light on recruitment and selection process. This project includes meaning and definition

    of recruitment and selection, need and purpose of recruitment, evaluation of recruitment

    process, recruitment tips, sources of Recruitment through which an organization gets suitable

    application, , right manpower, job analysis, which gives an idea about the requirement of the

    job. Next is Selection process, which includes steps of selection, types of test, and types of

    interview.

    Table of Contentsiv

  • 7/28/2019 Shah Mahmood HR Practices

    6/73

    Thesis Approval Form......................................................................................................i

    Declaration Form.............................................................................................................ii

    Acknowledgment.............................................................................................................iii

    Executive Summary........................................................................................................iv

    1. CHAPTER 1 INTRODUCTION............................................................................1

    1.1 Introduction................................................................................................................11.2 Research Question......................................................................................................3

    1.3 Objective of the Project.............................................................................................3

    1.4 Limitation of the Study..............................................................................................4

    1.5 Significance of the Study............................................................................................5

    1.6 Scheme of the study....................................................................................................5

    2. CHPTER 2 LETRATURE RIVIEW......................................................................6

    2.1 Managing and Definition of Human Resource Management.................................6

    2.1.1 Characteristics of Human Resource Management................................................7

    2.1.2 Objectives of Human Resource Management.......................................................8

    2.1.3 Functions of Human Resource Management........................................................92.1.4 Human Resource Management Environment......................................................12

    2.1.5 Functional Areas/ Scope of Human Resource Management...............................14

    2.2 RECRUIMENT AND SELECTION......................................................................14

    2.2.1 Human Resource Planning..................................................................................14

    2.2.2 Meaning of Human Resource Planning ..............................................................15

    2.2.3 Strategies for Manpower Planning......................................................................15

    2.2.4 Reasons for Human Resource Planning..............................................................16

    2.3 The HR Planning Process........................................................................................162.3.1 Situation analysis and Environmental scanning..................................................17

    2.3.2 Forecasting future demand for employees ........................................................17

    2.3.3 Analysis of the supply of current Employees......................................................17

    2.3.4 Action decisions in Human Resource Planning..................................................17

    Variances.........................................................................................................................19

    End 19

    If surplus.......................................................................................................................19

    If Shortage....................................................................................................................19

    Layoff, Redundancy, Termination...............................................................................19

    End 19

    End 19

    2.4 Job Analysis..............................................................................................................19

    2.4.1 Job Description...................................................................................................20

    2.4.2 Job Specification.................................................................................................20

    v

  • 7/28/2019 Shah Mahmood HR Practices

    7/73

    2.4.3 Purpose and Uses of Job Analysis.......................................................................20

    2.4.4 Steps in Job Analysis process..............................................................................22

    2.5 Recruitment..............................................................................................................24

    2.5.1 Objectives of recruitment....................................................................................28

    2.5.2 Factors affecting Recruitment.............................................................................29

    2.5.3 Sources of Recruitment.......................................................................................31

    Form Manpower Addition Plan....................................................................................33

    Identify Campuses to Recruit on..................................................................................33

    Conduct pre-placement Tasks ......................................................................................34

    Check application form of candidates..........................................................................34

    Cross check for inconsistencies....................................................................................34

    Make job offers............................................................................................................34

    2.5.4 Modern sources or techniques of Recruitment....................................................35

    2.6 SELECTION.............................................................................................................37

    2.6.1 Selection Procedure.............................................................................................37

    2.6.2 Application Form ...............................................................................................38

    2.6.3 Written Examination: .........................................................................................38

    2.6.4 Preliminary Interview .........................................................................................38

    2.6.5 Group Discussions ..............................................................................................39

    2.6.6 Tests.....................................................................................................................39

    2.6.7 Interview (Mutual exploration)...........................................................................41

    2.6.8 Types of Interview...............................................................................................41

    2.6.9 Reference Checks ...............................................................................................44

    2.6.10 Medical Examination .......................................................................................44

    2.6.11 Job Offer: ..........................................................................................................44

    3 CHAPTER 3 METHDOLOGY OF THE STUDY.............................................45

    3.1 Target Population.....................................................................................................45

    3.2 Sampling Technique ................................................................................................45

    3.3 Sample Size...............................................................................................................453.4 Procedure..................................................................................................................45

    3.5 Time Frame...............................................................................................................45

    3.6 Research Tools..........................................................................................................45

    3.6.1 Primary Data........................................................................................................45

    3.6.2 Secondary Data....................................................................................................46

    3.7 Data Presentation.....................................................................................................46

    4. CHAPTER 4 ANALYSIS AND FINDINGS........................................................46

    4.1 Recruiting and Selection Process at SCA...............................................................46vi

  • 7/28/2019 Shah Mahmood HR Practices

    8/73

    47

    4.1.2 Vacancies.............................................................................................................47

    4.1.3 Vacancy Announcements....................................................................................47

    4.1.4 Receiving of Applications...................................................................................48

    4.2 Selection.....................................................................................................................48

    4.2.1 Processing of Applications..................................................................................48

    4.2.2 Employment Committee......................................................................................48

    4.2.3 Sifting of CVS/ Rsums..................................................................................49

    4.2.4 Written Exams.....................................................................................................52

    4.2.5 Interview..............................................................................................................52

    4.2.6 Practical Preparation for Interview......................................................................53

    4.2.7 Candidates Expenses..........................................................................................534.2.8 Final Selection.....................................................................................................54

    4.2.9 References...........................................................................................................54

    4.2.10 Medical Check-up.............................................................................................55

    4.2.11 Job Offer............................................................................................................55

    4.2.12 Employment Contract........................................................................................55

    4.3 Staff Induction & Mentorship.................................................................................56

    4.3.1 The main objectives of Induction at SCA...........................................................57

    4.4 Findings.....................................................................................................................615. CHAPTER 5 CONCLUSION AND RECOMMENDATIONS .........................62

    5.1 Conclusion.................................................................................................................62

    5.2 Recommendations....................................................................................................63

    5.3 References.................................................................................................................65

    vii

  • 7/28/2019 Shah Mahmood HR Practices

    9/73

    1. CHAPTER 1 INTRODUCTION

    1.1 Introduction

    With arrival into the final semester of (BBA), the researcher enthusiastically started waiting

    for the time to come to undergo a project. Being a student of Management specialization, theresearcher was very much interested to write something about NGOs in Afghanistan which

    are involved in development sector. As per the researcher interest and guidance of respected

    supervisor, the researcher started his project on Non Government Organization usually called

    NGO.

    The NGOs sector is playing an increasingly larger role in providing social services to poor

    rural and urban communities of the country. These nonprofit development organizations

    from formal to non formal schools, to hospital to health care centers, to homes and

    emergency services, to community micro-creditors and neighborhood associations, and many

    more reflect a keen desire for brining about a social renewal change but they also face major

    challenges in doing so.

    During this project, the researcher found that Swedish Committee for Afghanistan (SCA) is a

    learning organization; where currently he is working as Human Resource Senior Officer. I

    saw how do the organization cope and tackle crucial situations at challenging moments. It

    was a great chance to explore human minds and human behaviors. SCAs staff is supportive

    and cooperative. I tried my level best to incorporate the entire and fundamental aspects of my

    learning in the recruitment and selection practices, of Human Resource section of SCA in the

    project report.

    Recruitment and selection are two of the most important functions of personnel management.

    Recruitment precedes selection and helps in selecting a right candidate.

    Recruitment is a process to discover the sources of manpower to meet the requirement of the

    staffing schedule and to employ effective measures for attracting that manpower in adequate

    numbers to facilitate effective selection of efficient personnel.

    Staffing is one basic function of management. All managers have responsibility of staffing

    function by selecting the chief executive and even the foremen and supervisors have a

    staffing responsibility when they select the rank and file workers. However, the personnel

    manager and his personnel department is mainly concerned with the staffing function.

    1

  • 7/28/2019 Shah Mahmood HR Practices

    10/73

    Every organization needs to look after recruitment and selection in the initial period and

    thereafter as and when additional manpower is required due to expansion and development

    of business activities.

    Right person for the right job is the basic principle in recruitment and selection. Ever

    organization should give attention to the selection of its manpower, especially its managers.

    The operative manpower is equally important and essential for the orderly working of an

    enterprise. Every business organization/ unit needs manpower for carrying different business

    activities smoothly and efficiently, and for this recruitment and selection of suitable

    candidates is essential. Human resource management in an organization will not be possible

    if unsuitable persons are selected and employment in a business unit.

    The success of any organization or business depends as much on appropriate, effective, well-

    communicated, HR and business practices as it depends on meeting the requirements of

    mandated laws and regulations. In fact, good planning and the development of effective

    practices make regulatory compliance much easier.

    HR practices helps in increasing the productivity and quality, and to gain the competitive

    advantage of a workforce strategically aligned with the organizations goals and objectives.

    The best practices in the management of human resources are the ones which optimize a

    workforce so that it can not only get work done, but also ensure a greater level of

    efficiency, timeliness and quality as it accomplishes increases productivity overall.

    Hence the job of the best practices human resources firm is to make sure that these benefits

    and pay scales meet the companys budget while remaining attractive and competitive

    enough to pull in the very best talent possible. We should know that these figures put the

    organization in a good light while also presenting themselves as engaging and competitive

    for companys recruitment efforts.

    The main objective of HR Practices is to differentiate the organization from its competitors

    by effective and efficient HR Practices. By following this, the organization does its whole

    work process. The objective of HR Practices is to increase productivity and quality, and to

    gain the competitive advantage of a workforce strategically aligned with the organizations

    goals and objectives.

    2

  • 7/28/2019 Shah Mahmood HR Practices

    11/73

    1.2 Research Question

    To study and understand what is the current recruiting and selection practices at SCA? What

    are the possible flaws and recommending ways to improve there practices

    1.3 Objective of the ProjectAs we know the whole function of HR department depends upon the HR Practices of the

    organization. The HR management is done according to the HR Practices of the company.

    Which things to be done and which things should not be done depend upon this only. It also

    helps the organization to achieve the target of the organization.

    So the study of the Recruiting & Selection Practices means basically the brief study of all

    the steps involved in the process and which is carried out by the organizations. I believe the

    HR Practices especially the recruitment and selection process is a fundamental and essential

    activity of an organization, which helps the organization to achieve the goal of the

    organization.

    All NGOs are having their recruiting and selection process, but the company who is having

    the best, is the most successful organization among its competitors. So the company can get

    success within its competitors by applying best, and effective HR Practices.

    The main objective of the project is:

    o Understanding of the non-profit civil society organizations that are moving beyond,

    concentrating on relief related activities.

    o To provide a backdrop of requirements and concerns leading to the formation of

    Human Resource activities in SCA.

    o To understand the recruitment and selection practices in NGOs followed

    o To understand how the organization would achieve its goals by having and

    implementing good recruiting and selection practices.

    o To understand the work culture of NGOs.

    HR function is very important in every organization. It helps the organization to manage not

    only the people of the organization but to manage all the working processes in it also. The

    HR department is a strategic partner for the organizations management. The HR department

    is a key player in organizational changes.

    3

  • 7/28/2019 Shah Mahmood HR Practices

    12/73

    HR has a prominent role in creating a bridge that links the employees with the organization

    and vice versa, working in a consultative manner and developing the Human Resource

    processes.

    Recruiting people and further developing their skills are two of the major functions of HR

    that are essential for achieving the organizations objectives. In this regard it is important to

    ensure that the right professional people are assigned to the right jobs, and that relevant

    training programs are provided to maximize the input of every employee.

    Fundamental to the HRM policy is a focus on equal opportunity and non discrimination. This

    should be reflected in recruitment, work environment, training and career development

    opportunity.

    At present, HR at NGOs has a direct service function role mainly engaged in staffing,

    training and development, motivation and maintenance of the staff members.

    Another focus in NGOs HR departments work is an ambition to create a participatory,

    transparent and a good work atmosphere in a multicultural environment.

    As a Sum we can define HR as follow:

    o HRM is concerned with the people dimensions in management. Since every

    organization is made up of people, acquiring their services, developing their skills,

    motivating them to higher levels of performance and ensuring that they continue to

    maintain their commitment to the organization are essential for achieving

    organizational objectives.

    o HRM is planning, organizing, directing and controlling, development, compensation,

    integration, maintenance and separation of human resources to the end so that

    individual, organizational and social objectives are accomplished.

    1.4 Limitation of the Study

    SCA is running four major programs, its working area covers almost the programs in the

    fields of Disability, Education, Health, and Rural Development, and so I just confined myself

    to the activities of HR section. The information regarding the programs is not in detail

    because of the vast activities of the programs implemented by SCA.

    4

  • 7/28/2019 Shah Mahmood HR Practices

    13/73

    The time factor is also a major reason for the limitation, as I am the economic supporter of

    my family, with it was a short span of time to analyze the activities in depth. There are many

    other NGOs also working on the same approaches, so I just confined my self with SCA. It

    was not possible to state or collect data about the rest of the NGOs. However an analysis

    about the overall operations and activities of the Recruitment & Selection Practices is made

    The other major constraint was, the contradiction between the opinions of managers and

    other staff during the interview

    1.5 Significance of the Study

    The task performed and accomplished will benefit all the students in general and particularly

    Human Recourse students. Further the management SCA and the NGOs can also use the

    information, which will guide them in their course of duty and supervision.

    1.6 Scheme of the study

    The research report has been divided into five chapters regarding different topics

    o Chapter 1: covers the overview and background of the study in order to create an

    interest of the readers to further continue the study. Limitation of the study is also

    included in this chapter

    o Chapter 2: is specified for literature review

    o Chapter 3: comprises research methodology and design

    o Chapter 4: covers the analysis in which the recruiting and selection practices in SCA

    is discussed

    o Chapter 5: this chapter contains the discussion, conclusion, and recommendations of

    the researcher

    5

  • 7/28/2019 Shah Mahmood HR Practices

    14/73

    2. CHPTER 2 LETRATURE RIVIEW

    2.1 Managing and Definition of Human Resource Management

    Human Resource Management means:

    The management of human resources is viewed as a system in which participants seeks toattain both individuals of group goals.

    If an analysis is made of this definition it will be seen that personnel management involves

    procedures and practices through which human resources are managed (i.e. organized and

    directed) towards the attainment of the individual, social and organizational goals. By

    controlling and effectively using manpower resources, management tries to produce goods

    and services for the society.

    Definitions:

    Human Resource Management involves all management decisions and practices that directly

    affect or influence the people, or human resources, who work for the Organization. An

    organizations employees enable an Organization to achieve its goals, and the management

    of these human resources is critical to an organizations success.

    According to Process Systems View Human Resource Management means:

    The systematic planning, development, and control of a network of inter related processesaffecting and involving all members of an Organization.

    Key Terms used in this definition:

    Process: Process is an identifiable flow of interrelated events moving towards some goal,

    consequence and end. An example of the human resource management is the staffing

    process, a flow of events that results in the continuous filling of positions within the

    Organization. These events include such activities as recruiting applicants, making hiring

    decisions, and managing career transitions such as transfers and promotions.

    o Flow: Flow implies movement through time and in the direction of a result

    o Inter-related: implies interaction within the process and between events

    o Goal and Consequence (Purpose): suggest a human objective

    o Events: are activities, happenings or change

    6

  • 7/28/2019 Shah Mahmood HR Practices

    15/73

    o End: implies some conclusion or consequence that may not necessarily be sought or

    planned by man.

    System: System is a particular set of procedures or devices designed to control a process in a

    predictable way e.g. Staffing System of the Organization.

    As a process HR practice includes:

    1) Human Resource Planning

    2) Job and Work Design

    3) Staffing

    4) Training and Development

    5) Performance Appraisal and Review

    6) Compensation and Reward

    7) Employee protection and representation

    8) Organization Improvement

    Human Resource Management is the planning, organizing, directing and controlling of the

    procurement, development, compensation, integration, maintenance and separation of human

    resources to the end that individual, organizational and societal objectives are

    accomplished."1

    This definition is a comprehensive and covers both the management functions and the

    operative functions. The purpose of all these functions is to assist in the accomplishment of

    basic objectives.

    2.1.1 Characteristics of Human Resource Management

    1) Human Resource Management is concerned with managing people at work. It covers

    all levels of personnel, including blue collared employees and white collared

    employees;

    2) It is concerned with employees, both as individuals as well as group

    3) Human Resource Management is concerned with helping the employees to develop

    their potentialities and capacities to the maximum possible extent, so that they may

    derive great satisfaction from their jobs

    1 By Edward Flippo7

  • 7/28/2019 Shah Mahmood HR Practices

    16/73

    4) It is a major part of the general management function and has roots and branches

    extending throughout and beyond each Organization

    5) Human Resource Management is of a continuous nature

    6) Human Resource Management attempts at getting the willing co-operation of the

    people for the attainment of the desired goals.

    HRM can be of full value to an Organization only when it is consistently throughout out and

    applied at all levels and to all management functions; in corporate policies, in the systems,

    procedures and in employment practices, etc. this integrative aspect of HRM is, therefore, of

    vital importance.

    2.1.2 Objectives of Human Resource Management

    Objectives are pre-determined ends or goals at which individual or group activity in an

    Organization is aimed. Objectives can be divided in to two parts:

    Primary Objectives:

    1) HRMs main goal is the creation of a workforce with the ability and motivation to

    accomplish the basic organizational goals;

    2) They relate to the satisfaction of the personal objectives of the members of an

    Organization through monetary and non monetary devices;3) They relate to the satisfaction of community and social objectives, such as serving the

    customers honestly, promoting a higher standard of living in the community, bringing

    comfort and happiness to the society, protecting women and children and providing

    for aged personnel;

    4) To utilize human resource effectively;

    Employee

    Relations

    Employee

    Relations

    Industrial

    Relations

    Industrial

    Relations

    Personnel

    Administration

    Personnel

    Administration

    HRMHRM

    8

  • 7/28/2019 Shah Mahmood HR Practices

    17/73

    5) To establish and maintain a productive and self respecting relationship among all

    members of an Organization;

    6) To establish and maintain an adequate organizational structure;

    7) To bring about maximum individual development of the members of an

    Organization;

    8) to maintain a high morale and better human relations inside an Organization by

    sustaining and improving the conditions which have been established so that

    employees may stick to their jobs for a longer period;

    Secondary Objectives

    The secondary objectives aim at achieving the primary objectives economically, efficiently

    and effectively.

    2.1.3 Functions of Human Resource Management

    According to different authors HRM functions can be divided in to different categories.

    Some of the categories are as follows:

    1. General and Specific functions;

    2. Personnel administration and Industrial relations functions.

    3. Managerial and Operative functions

    1) General and Specific functions

    A) General Functions:

    o To conduct personnel research

    o To assist in the programs of personnel administration

    o To develop appraisal plans

    o To launch education and training programs

    o To develop a competent work force

    o To establish and administer varied personnel services delegated to personnel

    department

    B) Specific Functions:

    o Employment

    o Safety

    o Wage and salary

    9

  • 7/28/2019 Shah Mahmood HR Practices

    18/73

    o Benefit Schemes

    o Community relations and

    o Advice and counseling the employees

    2) Personnel Administration and Industrial Relations Functions

    A) Personnel Administration:

    These functions relate to the function of managing people from the lower to the upper level

    of the Organization and embraces policy determination as well as implementation of policies

    by the personnel at the lower levels;

    B) Industrial Relations Functions

    These functions relate to interactions between the management and the representatives of the

    unions. Such functions involve all activities of employer employee relationship, such as

    Organization of the union members, negotiations of contracts, collective bargaining,

    grievance handling, disciplinary actions, arbitration etc- the purpose of all these being to

    prevent conflict between two parties.

    3) Managerial and Operative Functions

    A) Managerial Functions

    Management is Personnel administration. It is the development of the people and not the

    direction of the things. Managing people is the heart and essence of being a manager. Thus, a

    Human Resource Manager is a manager and as such he performs the basic functions of

    management.

    Inputs

    Human and

    EconomicResources

    interacting

    withenvironment

    al changes

    Planning

    Determination

    of short to

    long range

    plans to

    Organizing

    Development

    of the

    organization.

    structure

    Directing

    Stimulation

    andmotivation of

    Organization

    personnelaccording to

    predetermined

    lans

    Controlling

    Assurance that

    directed actionis taking place

    according to

    predeterminedplans.

    10

  • 7/28/2019 Shah Mahmood HR Practices

    19/73

    Feedback of significant deviations from planned performance

    B) Operative Functions

    These functions are concerned with the activities specifically dealing with procuring,

    developing, compensating and maintaining an efficient work force. These functions are also

    known as service functions.

    o Procurement Function

    o Development function

    o Compensating function

    o Integrating function

    o Maintenance function

    Functions of Personnel Office/ Personnel Management

    Functions of Personnel Office

    Outputs

    Goods and

    services needed

    by theorganization

    customers

    11

  • 7/28/2019 Shah Mahmood HR Practices

    20/73

    Managerial Functions Operative Functions

    PlanningOrganizing Directing Controlling

    Employment HRD Compensation Human Relations Placement

    H R P

    Recruitment

    Selection

    Induction

    Performance appraisal

    Wages

    Mgt development

    Career planning

    Job evaluation

    Wages & salary

    Quality circles

    Motivation

    Morale

    Organization change &

    development

    2.1.4 Human Resource Management Environment

    HR manager cant perform his/ her job in a vacuum as a number of environmental factors

    affect the HRM. In fact, these factors influence the Organization through human resources.Environment (with special reference to Human Resource Management): means the

    totality of all factors, which influence both the Organization and HRM sub system.

    Environmental Scanning of HRM

    External environment

    TechnologicalMarketing

    Government & Legal Customers

    Organization Politics Production

    Political Trade Unions

    Finance Organization Structure

    Economic Social & Religious

    The environment furnishes the macro context and the Organization is the micro unit. The

    external environment is comprised of those factors, which affect an organizations human

    resources from outside the Organization. Important among them are:

    Economic

    Social

    HRM

    12

  • 7/28/2019 Shah Mahmood HR Practices

    21/73

    Political

    Governmental

    Legal

    Technological

    Manpower in the country

    Tradition and culture

    Customers

    Other organizations

    Trade Unions in other organizations

    Internal Environment

    The internal environment also affects the job of a personnel manager. The internalenvironmental factors include Organization objectives, policies, organizational structure, and

    the functional areas of the Organization with which the personnel manager works

    continuously like finance, marketing and production. Impact of internal environment factors

    is profound as they frequently and closely interact with HRM function in an Organization.

    External Environment

    The influence of external environment on HRM is also equally important, though the severity

    is comparatively less. People are essentially self-managing. In other words, while people

    manage other resources, they manage personnel. People themselves decide about the nature,

    time, and place of their employment. And people react to the changing conditions and to the

    techniques of management unlike money, material and machine. The changes includes in the

    external environment are:

    Technological obsolescence;

    Cultural and social changes;

    Changes in the policies of government

    Politics and the like

    With the result, the work environment changes thereby affecting their productivity level.

    Considering the complexities and the challenges in the HRM now and in near future

    management has to develop sophisticated techniques and efficient specialists to among the

    personnel on sound lines

    13

  • 7/28/2019 Shah Mahmood HR Practices

    22/73

    2.1.5 Functional Areas/ Scope of Human Resource Management

    1) Organizational planning, development and task specification

    2) Staffing and Employment

    3) Training and Development

    4) Compensation, Wage and Salary administration

    5) Motivation and Incentives

    6) Employee services and Benefits

    7) Employee records

    8) Labor and Industrial Relations

    9) Personnel Research and Personnel Audit

    2.2 RECRUIMENT AND SELECTION

    2.2.1 Human Resource Planning

    Planning has been visualized as a thought proper to action, embracing a scheme of action

    involving the determination of the strengths and weaknesses in the choice of the best course

    of action from the standpoint of strategy and programs.

    14

  • 7/28/2019 Shah Mahmood HR Practices

    23/73

    The term Plan is defined as a forecast of future attainment and forms a written statement of

    what will be the outcome of this action specifying a time period ranging from one year to

    five years.

    2.2.2 Meaning of Human Resource Planning

    It is the process used by organizations for assessing the supply and demand for future human

    resources. In addition, an effective HR plan also provides the mechanisms that will be used

    to eliminate any gaps that may be exist between supply and demand. Thus HR planning is

    process that is used to determine the number of employees to be recruited in to the

    organization or the phased out of it.

    Human Resource Planning as a process involving the following activities:

    1. Forecasting of future human resource requirements

    2. Task of inventorying present resources and assessing the extent to which these resources

    are optimally utilized

    3. Anticipation of human resources problem

    4. Planning of necessary human resource program

    2.2.3 Strategies for Manpower Planning

    Manpower planning involves the application of a set of 9 strategies

    1) Collect, maintain and interpret relevant information regarding human resources

    2) Report periodically manpower objectives, requirements and existing employment and

    allied features of manpower

    3) Develop procedures and techniques to determine the requirements of different types

    of manpower over a period of time from the standpoint of organizational goals and

    modify these goals, if they make unrealistic demands for human resources

    4) Develop measures of manpower utilization as a component of forecasts of manpower

    requirements along with if possible- independent validation

    5) Employ- if suitable- techniques leading to effective allocation of work with a view to

    improving manpower utilization;

    6) Conduct research to determine factors hampering the contribution of the individuals

    and groups to the organization with a view to modifying or removing these handicaps

    7) Develop and employ methods of economic assessment of human resources reflecting

    its features as income generator and cost and accordingly improving the quality of

    decisions influencing manpower

    15

  • 7/28/2019 Shah Mahmood HR Practices

    24/73

    8) Evaluate the procurement, promotion and retention of the effective human resources

    in the context of the forecast requirements of the enterprise; &

    9) Analyze the dynamic process of recruitment, promotion and loss to the organization

    and control these processes and organization structure with a view to encouraging the

    maximum individual and group performance without involving excessive costs.

    2.2.4 Reasons for Human Resource Planning

    All organizations perform human resource planning, either formally or informally. The major

    reasons for employment planning are:

    1) More effective and efficient use of human resources

    Human resources planning should precede all other HRM activities. Careful analysis

    of all HRM activities shows that their effectiveness and efficiency, which result in

    increased productivity, depend on human resource planning.

    2) More satisfied and better developed employees

    Employees who work for organizations that use good human resource planning

    systems have a better chance to participate in planning their own careers and to share

    in training and development experiences. Thus they are likely to feel their talents are

    important to the employer, and they have a better chance to utilize those talents;

    3) More effective equal employment opportunity planning

    The govt. has increased its demands for equal employment opportunities. In sum,

    effective human resource planning ensures that HRM activities and program will be

    built on a foundation of good planning. Proper planning should cut down on the

    number of surprises that occurs involving human resource availability, placement and

    orientation.

    2.3 The HR Planning Process

    HR Planning involves four distinct phases or stages

    1) Situation analysis or environmental scanning;

    2) Forecasting human resource records

    3) Human resource supply analysis

    4) Action plan development

    16

  • 7/28/2019 Shah Mahmood HR Practices

    25/73

    2.3.1 Situation analysis and Environmental scanning

    The first stage in HR Planning is where the HRM function and strategic planning initially

    interact. The strategic plan must adapt to environmental circumstances, and the HRM

    function is one of the primary mechanisms that an organization can use during the adaptation

    process. For e.g. rapid changes in the technological environment can force an organization to

    quickly identify and hire employees with new skills that previously werent needed by the

    organization.

    Without an effective HR plan to support the recruitment and selection function in the

    organization, it will be impossible to move fast enough to stay competitive. Thus,

    organizations are becoming more dependent on an ability to gather relevant information

    about their environment and to react to this information.

    2.3.2 Forecasting future demand for employees

    The next phase of an effective HR Planning process is estimating not only how many but

    what kinds of employees will be needed in the future. Forecasting yields these advanced

    estimates or calculations of the organizations staffing requirement. Although there are many

    quantitative tools to help with forecasting, it isa process that involves a great deal of human

    judgment. In addition, many successful HR planners also rely heavily on their gut instincts

    about future conditions. For e.g. planners at Unilever attribute much of their global successes

    to such instincts.

    2.3.3 Analysis of the supply of current Employees

    The third phase of HR Planning id designed to answer the question How many and what

    kind of employees do I currently have in terms of the skills and training necessary for the

    future? It should be obvious that this phase of HR Planning involves much more that simply

    counting the number of current employees in the organization.

    The major tool used to assess the current supply of employees is the Skill Inventory. It is a

    list of names, certain characteristics and skills of the people working for the organization. It

    provides a way to acquire these data and makes them available where needed in an efficient

    manner.

    2.3.4 Action decisions in Human Resource Planning

    After the HR Planning system has analyzed both the supply of and demands for future

    workers, these two forecasts are compared to determine what, if any, action should be taken.

    17

  • 7/28/2019 Shah Mahmood HR Practices

    26/73

    Whenever there is a discrepancy between these two estimates, the organization needs to

    choose a course of action for elimination the gap.

    No matter how good the HR Planning system is, an exact match between supply and demand

    forecasts is rare. Even when overall estimates are similar, there are frequently important gaps

    in certain subgroups. These data become inputs to facilitate decisions about training,

    promotion, demotion and similar decisions.

    Action decisions with a shortage of employees

    When employment specialists comparing demand to supply find the supply of workers is less

    than the demand, several possibilities are open to the organization. If the shortage is small

    and employees are willing to work overtime, it can be filled with present employees. If there

    is shortage of highly skilled employees, training and promotions of present employees,

    together with the recruitment of lower skilled workers, are possibilities.

    Action decisions in surplus conditions

    When comparison of employee demand and supply indicates a surplus, the alternative

    solutions include attrition, early retirements, demotions, layoffs, and terminations. Employee

    decisions in surplus conditions are some of the most difficult decisions managers must make,

    because the employees who are considered surplus are seldom responsible for the conditions

    leading to the surplus. A shortage of raw material such as fuel or a poorly designed or

    marketed product can cause an organization to have a surplus of employees.

    Human Resource Planning Process

    Strategic Management Human Resource Human ResourceDecisions Demand Supply

    Technological Forecasts

    Economic Forecasts

    Market Forecasts

    Organizational Planning

    Investment Planning

    Annual Operating Plans

    Annual Employment

    Requirements

    Numbers

    Skills

    Occupational Categories

    Existing Employment

    Inventory

    After Application of

    Expected Loss and Attrition

    rates

    18

  • 7/28/2019 Shah Mahmood HR Practices

    27/73

    Comparison

    If None

    In short, Human Resource Planning is a process by which the management of an

    organization ensures that it has the right number and kind of people at the right places and at

    the right times to successfully achieve its overall objectives. Human Resource planning

    differs from Manpower Planning in the sense that the former is primarily concerned with the

    human aspects of people, the latter mainly concentrates on the power of the people.

    2.4 Job Analysis

    Job Analysis is one of the most important functions of Human Resource Manager.

    Performance Appraisal, Job Designing, Personnel selection, employee training, career

    development and planning are among the many activities that depends upon the information

    gathered in the job analysis.

    Job Analysis is a written record of actual requirements of the job activities.

    Definitions:

    Job Analysis is the process of determining and reporting pertinent information relating to

    the nature of a specific job (Bayers and Rue)

    It is the determination of tasks, which comprise the job of the skills, knowledge, abilities, and

    responsibilities required of the holder for the successful job performance. Putting it in other

    words it is the process of getting information about the job incumbents skills, education and

    training to carry out the job effectively and terms on time for completion, performance

    standard.

    Variances End

    If surplus

    Layoff, Redundancy,

    Termination

    End

    If Shortage

    Overtime, Part time

    workers, Hiring

    End

    19

  • 7/28/2019 Shah Mahmood HR Practices

    28/73

    It is procedure by which pertinent information is obtained about a job, i.e. it is detailed and

    systematic study of information relating to the operations and responsibilities of a specific

    job.

    A job analysis results in two important documents:

    Job Description;

    Job Specification.

    2.4.1 Job Description

    Job description is written record of the duties, responsibilities and requirements of particular

    jobs. It is concerned with the job itself and not with the work. It is a statement describing the

    job in such terms as its title, location, duties, working conditions and hazards. In other words,

    it tells us What to be done, and how it is to be done and why. It is a standard of function, in

    that it defines the appropriate and authorized contents of a job.

    2.4.2 Job Specification

    Job specification is a standard of personnel and designates the qualities required for an

    acceptable performance. It is a written record of the requirements sought in an individual

    worker for a given job. In other words, it refers to a summary of the personnel characteristics

    required for a job. It is a statement of the minimum acceptable human qualities necessary for

    the proper performance of a job.

    2.4.3 Purpose and Uses of Job Analysis

    Job Analysis is not useful but an essential part of organizational strategies to serve the

    following purposes:

    o Organization and Manpower Planning

    o Recruitment and Selection

    o Wage and Salary Administration

    o Job Re-Engineering

    o Employee Training and Management Development

    o Performance Appraisal

    o Health and Safety

    o Employee Orientation

    20

  • 7/28/2019 Shah Mahmood HR Practices

    29/73

    o Utilizing Personnel

    1) Organization and Manpower Planning: It is helpful in organization planning, for it

    defines labor needs in concrete terms and coordinates the activities of the work force,

    and clearly divides duties and responsibilities;

    2) Recruitment and Selection: By indicating the specific job requirements of each job

    (i.e. the skills and knowledge), it provides a realistic basis for the hiring, training,

    placement, transfer and promotion of personnel. Basically, the goal is to match the

    job requirements with a workers aptitude, abilities and interests. It also helps in

    charting the channels of promotion and in showing lateral lines of transfer;

    3) Wage and Salary Administration: By indicating the qualification required for doing

    a specified job and the risks and hazards involved in its performance, it helps in

    salary and wage administration. Job analysis is used as a foundation for job

    evaluation;

    4) Job Re-Engineering: Job Analysis provides information, which enables us to change

    jobs in order to permit their being managed by personnel with specific characteristics

    and qualification.

    5) Employee Training and Management Development: Job Analysis provides the

    necessary information to the management of training and development programmes.

    It helps to determine the content and subject matter of in training courses. It alsohelps in checking application information, interviewing, weighing test results, and in

    checking references.

    6) Performance Appraisal: It helps in establishing clear cut standards which may be

    compared with the actual contribution of each individual;

    7) Health and Safety: It provides an opportunity for identifying hazardous conditions

    and unhealthy environmental factors so that corrective measures may b taken to

    minimize and avoid the possibility of accidents.

    8) Employee Orientation: Effective job orientation cannot be accomplished without a

    clear understanding of the job requirements. The duties and responsibilities of a job

    must be clearly defined before a new employee can be taught how to perform the job.

    9) Utilizing Personnel: Job Analysis information can help both employees and

    managers, pinpoint the root of a problem if employee functions are not adequate.

    21

  • 7/28/2019 Shah Mahmood HR Practices

    30/73

    In sum, it may be noted that job analysis is a systematic procedure for securing and

    reporting the information, which defines a specific job.

    2.4.4 Steps in Job Analysis process

    The major steps to be followed in carrying out job analysis in an organization can be

    described as follows:

    Contents of Job Analysis

    Develo a ob s ecification

    Develo a ob descri tion

    Collection of ob anal sis data

    Review & U date of information

    22

  • 7/28/2019 Shah Mahmood HR Practices

    31/73

    Step 1: Studying job vis a vis the organization:

    Review the available background information through organization workflow or process

    charts. Studies the job inter relationships. Often, a restructuring, down sizing, merger, or

    rapid growth will initiate this review.

    Step 2: Selection of uses of job analysis information:

    Be selective regarding the future uses of job analysis. The employee or the manager may

    request a job analysis to determine the appropriate compensation, but they also be interested

    in formally documenting changes in recruitment, placement and training for a particular job.

    Step 3:Identify the job to be analyzed:

    It is always advisable to choose flow representative and key positions for job analysis, thus

    avoiding unnecessary time and financial expenditure.

    Step 4: collection of Job Analysis data:

    Manager should consider using a number of different methods of data collection because it is

    unlikely that any one method will provide all the necessary information needed. Three of the

    most popular form of data collection is:

    o Observation of tasks and behavior with the job incumbent i.e. both physical and

    mental activities

    o Interviews

    o Questionnaires and checklists

    Step 5: Develop a Job Description:

    Highlight the major tasks, pertaining to effective job performance through the written

    description;

    Identif the ob to be anal zed

    Selection of uses of ob anal sis information

    Stud in ob vis a vis the or anization

    23

  • 7/28/2019 Shah Mahmood HR Practices

    32/73

    Step 6: Develop a Job Specification:

    Transcript the information obtained after step 4 highlights what personal qualities, trait,

    skills, and background is necessary for optimal job performance.

    Job Performance

    Observation Degree of

    Interview interactionCritical incident technique with personal

    Data Collection methods Questionnaires

    Diary methodTraining material

    Dictionary of occupation

    Step 7: Review and update of information:

    If no major changes have occurred in the organization, then a complete review of all jobs

    should be performed every three years.

    A job Analysis provides the following information:

    1. Job Identification

    2. Significant characteristics of a job

    3. What the typical worker does

    4. Which materials and equipment of a worker uses

    5. How a job is performed

    6. Required personnel attributes

    7. Job relationship

    It is obvious from the foregoing that a job analysis is usually a clear indication of a job

    description and job specification.

    2.5 Recruitment

    Successful human resource planning should identify our human resource needs. Once we

    know these needs, we still want to do something about meeting them. The next step in the

    acquisition function, therefore, is recruitment. This activity makes it possible for us to

    acquire the number and types of people necessary to ensure the continued operation of the

    organization.

    24

  • 7/28/2019 Shah Mahmood HR Practices

    33/73

    Recruitingis the discovering of potential candidates for actual or anticipated organizational

    vacancies or from other perspective, it is a linking activity- bringing together those with jobs

    to fill and those seeking jobs.

    Recruitment a process to discover the sources of manpower to meet the requirements of the

    staffing schedule and to employ effective measures for attracting that manpower in adequate

    numbers to facilitate effective selection of an efficient working force (Yoder & others)

    OR

    It is a process of searching for prospective employees and stimulating and encouraging them

    to apply for jobs in an organization. It is often termed positive in that it stimulates people to

    apply for jobs to increase the hiring ratio (i.e. number) of applicants for a job. (Flippo)

    If we technically discuss, the function of recruitment precedes the selection function and it

    includes only finding, developing the sources of prospective employees and attracting them to

    apply for jobs in an organization, whereas the selection is the process of finding out the most

    suitable candidate to the job out of the candidates attracted (recruited).

    One of the most important decisions for many recruiters or people in positions who have to

    recruit is to find the best candidates for the jobs they have.

    It is a very costly exercise to recruit and destructive if the wrong candidates are found. Since

    one is dealing with humans, and all humans being different, this makes this challenge even

    more hard but very rewarding.

    Careful planning and implementation of a well-structured recruitment campaign is the main

    way todays managers and human resource teams can hope to find the best.

    Analyzing the position

    Before you can even attempt to recruit you need to review the job in question. The objective

    being to get enough information on the skills and knowledge that is required to perform the

    job. Here are a few suggestions for you to ponder and act on:

    Take a close look at the official job description, paying attention to established performance

    standards

    25

  • 7/28/2019 Shah Mahmood HR Practices

    34/73

    Consider the environment in which the job is performed. Are there any special skills

    required? E.g. A sales position will require somebody with strong interpersonal and

    questioning skills.

    Determine the product produced by the job and what is requires ensuring consistent quality

    of that product

    Examine future business plans for the organization. One of my colleagues joined a

    company and within 6 months was asked to relocate. He was also told his job role would

    slightly change to more office base work rather than field work. However, at the time of

    interview he was not told this, hence he left.

    Always get the supervisors input into the position

    Talk with others who interact with the person who runs the position

    If possible, talk to those who ran the job in the past. What skills they feel are required to

    perform the job.

    The above technique is known as introspective investigation. By doing this we gather the

    required information for hiring. There are no shortcuts, but if you we serious about matching

    the right person for the right job, we must invest time at the initial stages of the process

    leading to fruitful results.

    Once we have finished our investigations, we need to now list our skills and competencies

    we have found. Split these up into groups to make it easier for yourselves.

    (a) Technical Competencies

    (b) Functional Skills

    (c) Self Management Skills

    (d) Interpersonal Skills

    (e) Requirements of Corporate Culture

    (a) Technical Competencies

    Includes things like certificates, degrees, licenses, experience and so on, for example an

    accountant may need a business degree and human resources manager may need personnel

    management degree.

    26

  • 7/28/2019 Shah Mahmood HR Practices

    35/73

    (b) Functional Skills

    Skills that are required to help function effectively on the job; below are some common

    examples of functional skills:

    Communication Management Analysis Supervision

    Leadership Delegation listening ability Independence

    Risk taking Attention to detail Judgment Initiative

    Resilience Flexibility Adaptability Innovation

    Negotiation Planning Training Sales ability

    Stress Mgt Team work Presentations Motivating

    The functions required in organizations vary depending on the job. For example a sales

    executive position may require someone with above average communication skills as well as

    being very well organized.

    Remember, these skills can be learnt. In fact, when recruiting, one has to bear in mind, can

    the candidate whose skills may not fit the bill, attain these skills over a specific period of

    time through training and courses.

    (c) Self Management Skills

    Self-management refers to personal characteristics that enhance ones ability to do the job.

    We might want to look at some of the following:

    Creativity Appearance Ethics Competence Loyalty

    Accountability Reliability Popularity Honesty

    Helpfulness

    Unlike functional skills, self-management skills are acquired over a period of time and often

    have been rooted at a young age. Self-management skills are an important part of the overall

    hiring.

    (d) Interpersonal Skills

    These are people skills. How people get along with others, including how they

    communicate, a very important concern for all of us recruiters out there.

    Good interpersonal skills include:

    Ability to respect others

    To be empathetic and caring

    To listen attentively and respond accordingly

    27

  • 7/28/2019 Shah Mahmood HR Practices

    36/73

    To maintain objectively and refrain from emotionalism

    And to communicate accurately and appropriately

    People with the above skills enjoy interacting with people. They recognize conflict to be

    natural and normal. They will be ready to deal with conflict head on and find it a challenge.

    Interpersonal skills are extremely helpful in any position. For some jobs, it is critical. For

    someone like the bean counter, who sits in the corner of the office counting money all day

    long with minimal human interaction it will not be. However, going back to the sales

    executive, who is at the forefront of creating a positive company image as well as trying to

    sell companys products day in day it is vital.

    (e) Corporate Culture

    Consider other organizational cultural factors. Every organization has a unique culture. A

    manager was recruited to manage the customer service team. He was inclined towards

    wearing suits. To cut a long story short, he did not see eye to eye with his staff and them with

    him, therefore left. A costly experience in every sense of the word

    Another cultural expectation may be that the candidate is expected to join in the voluntary

    work schemes. Candidates who do not seem to conform to the culture, will not last long and

    before you know will be an outcast. Like it or not, thats the way it is! Therefore, the

    organizational culture is sacred and it must be taken into account when hiring a new recruit.2.5.1 Objectives of recruitment

    o To attract people with multi dimensional skills and experience that suit the present

    and future organizational strategies;

    o To induct outsiders with a new perspective to lead the company

    o To infuse fresh blood at all levels of the Organization

    o To develop an organizational culture that attracts competent people to the company

    o

    To search or head hunt/ head pouch people whose skills fit the companys values;o To devise methodologies for assessing psychological traits

    o To seek out non-conventional development grounds of talent

    o To search for talent globally and not just with in the company

    o To design entry pay that competes on quality but not on quantum

    o To anticipate and find people for positions that does not exist yet

    28

  • 7/28/2019 Shah Mahmood HR Practices

    37/73

    2.5.2 Factors affecting Recruitment

    The numbers of factors that affect recruitment are broadly classified in to two categories:

    1) Internal Factors

    2) External Factors

    External Factors: The external factors include supply of and demand for human resources,

    employment opportunities and /or unemployment rate, labor market conditions, political and

    legal requirement and govt. Policies, social factors, information systems etc.

    External factors:

    o Socio Economic factors

    o Supply and Demand factors

    o Employment Rate

    o Labor Market Conditions

    Recruiting and other Human Resource Management Activities

    Which Provides New

    Employees for

    HR

    Planning Recruiting

    Job

    Applications Selection

    Orientation

    Training &Development;

    Etc.

    29

  • 7/28/2019 Shah Mahmood HR Practices

    38/73

    o Political, Legal and Governmental factors

    o Information Systems

    Internal Factors:The internal factors include the companys pay package including salary,

    fringe benefits and incentives, quality of work life, organizational culture, career planning,

    growth opportunities, size of the company, companys product and services, companys

    growth rate, role of trade unions and cost of recruitment.

    Internal factors:

    o Companys Pay Package

    o Quality of Work-life

    o Organizational Culture

    o Career Planning and Growth

    o Organizations Size

    o

    Companys Products and Serviceso Geographical Spread of the Companys Operations

    o Companys Growth Rate

    o Role of Trade Unions

    o Cost of Recruitment

    o Organizations Name and Fame.

    External Environmental Influences

    The Union

    Government Requirements,

    regulations and laws

    Economic Conditions

    Composition of the labor force

    Location of the Organization.

    Internal Environmental Influences

    Strategy

    Goals

    Organizational Culture

    Nature of the Task

    Work Group

    Leaders Style and Experience

    HRM activities:

    Equal employment opportunities

    Job analysis

    Recruitment

    Planning

    Selection

    Training and development

    Career planning and development

    Benefits and services

    Discipline

    Labor relations

    People

    Abilities

    Attitudes

    Preferences

    Motivation

    Effectiveness Criteria

    Performance

    Satisfaction

    Absenteeism

    Turnover

    Scrap rates

    Grievance rates

    Accident rates

    Organization EndResults

    Competitive Products

    Competitive Services 30

  • 7/28/2019 Shah Mahmood HR Practices

    39/73

    2.5.3 Sources of Recruitment

    Recruitment is more likely to achieve its objectives if recruiting sources reflect the type of position to

    be filled. Sources are those where prospective employees are available like employment exchanges

    while techniques are those, which stimulate the prospective employees to apply for jobs like

    nomination by employees, advertising, promotion etc. Certain recruiting sources are more effective

    than others for filling certain types of jobs are.

    The sources of recruitment are broadly classified in to two sources

    o Internal sources

    o External sources

    Internal Sources:

    The sources within organizational pursuits it includes:

    a) Present permanent employees

    b) Present temporary/ casual employees

    c) Retrenched or retired employees

    d) Dependents or deceased, disabled, retired and present employees

    e) Promotions

    f) Transfers

    Present Permanent Employees:

    Organizations consider the candidates from this source for higher-level jobs due to: (1)

    availability of most suitable candidates for jobs relatively or equally to the external source,

    (2) to meet the trade unions demands; (3) to the policy of the Organization to motivate the

    present employees.

    Present temporary or casual employees:

    Organizations find this source to fill the vacancies relatively at lower levels owing to the

    availability of suitable candidates or trade and pressures or in order to motivate them on

    the present job.

    Retrenched or Retired employees:

    31

  • 7/28/2019 Shah Mahmood HR Practices

    40/73

    Generally a particular Organization retrenches the employees due to lay-off. The

    Organization takes of the candidates for employment from the retrenched employees due

    to obligation, trade union pressure and the like. Sometimes the organizations prefer to re

    employ their retired employees as a token of their loyalty to the Organization or to

    postpone some inter personal conflicts for promotion etc.

    Dependents of Deceased, Disabled, Retired and Present Employees:

    Some organizations with a view to developing the commitment and loyalty of build up

    image provide employment to the dependent(s) of deceased, disabled and present

    employees. Such organizations find this source as an effective source of recruitment.

    Promotions:

    Most of the internal candidates would be stimulated to take up higher responsibilities and

    express their willingness to be engaged in the higher level jobs if management gives them

    the assurance that they will be promoted to the next higher level.

    Transfers:

    Employees will be stimulated to work in the new sections or places if management wishes

    to transfer them to the places of their choice.

    Why do organizations prefer Internal Source?

    o Internal recruitment can be used as a technique of motivation

    o Morale of the employees can be improved

    o Suitability of the internal candidates can be judged better than the external candidates

    as known devils are better than unknown angles

    o Loyalty, commitment, a sense of belongings and security of the present employees

    can be enhanced

    o Employees psychological needs can be met by providing an opportunity for

    advancement

    o Employees economic needs for promotion, higher income can be satisfied

    o Cost of selection can be minimized;

    o Cost of training, induction, orientation, period of adaptability to the Organization can

    be reduced

    o Social responsibility towards employees may be discharged

    o Stability of employment can be ensured

    Why organizations dont prefer internal sources?32

  • 7/28/2019 Shah Mahmood HR Practices

    41/73

    o It often leads to inbreeding and discouraging new blood from entering in an

    Organization

    o There are possibilities that internal source may dry up, and it may be difficult to

    find the requisite personnel from within an Organization

    o Since the learner does not know more than the lecturer does, no innovations worth

    the name can be made. Therefore, on jobs which require original thinking (such as

    advertising, style designing and basic research), this practice is not followed

    o As promotion is based on seniority, the danger is that really capable hands may not

    be chosen. The likes and dislikes of the management may also play an important role

    in the selection of personnel

    External Sources

    External Sources are those sources, which are outside the organizational pursuits. These

    sources include:

    o Campus Recruitment

    o Private Employment Agencies/ Consultants

    o Public Employment Exchanges

    o Professional Associations

    o Data Banks

    o Casual Applications

    o Similar Organizationso Trade Unions

    o Advertisements

    o Employee Referrals

    Campus Recruitment:

    Different types of organizations like industries, business firms, and service

    organizations, social or religious organizations can get inexperienced candidates of

    different types from various educational institutions like colleges and universities

    imparting education in science, commerce, arts, engineering and technology,

    agriculture. Medicines from the training institutes Most of the universities and institutes

    imparting technical education in various disciplines provide facilities for campus

    recruitment and selection.

    Process of Campus Recruitment

    Form Manpower Addition Plan Identify Campuses toRecruit on

    33

  • 7/28/2019 Shah Mahmood HR Practices

    42/73

    Employment Agencies:

    These agencies or consultants perform the recruitment function on the behalf of a client

    company by charging fee. Line mangers are relieved from recruitment functions so they can

    concentrate on their operational activities and recruitment functions are entrusted to a private

    agency or consultants. These agencies are also calledExecutive Search Companies.

    Public Employment Agencies:

    The govt. set up Public Employment exchanges in the country to provide information about

    vacancies to the candidates and to help the organizations in finding out suitable candidates.

    Public sector and private sector industries have to depend on public employment exchanges

    for the specified vacancies.

    Professional Organizations:

    Professional organizations maintain complete data of their members and provide the same to

    various organizations on requisition. They also act as anexchange between their members

    and recruiting firms in exchanging information, clarifying doubts etc.

    Data Banks:

    The management can collect the bio data of the candidate from different sources like

    employment exchanges, educational Training Institutes; candidates etc. and feed them in the

    Conduct pre-placement Tasks Secure place in the queue on

    each campus

    Check application form of candidates

    Conduct written test for

    knowledge

    Interview intensively for

    competence

    Cross check for inconsistencies Identify suitable candidates

    Make job offers

    Advice through

    final yearsspecialization

    Stay in touch with those who

    accept

    Provide support

    to ease stress

    Continue

    informalinteraction

    34

  • 7/28/2019 Shah Mahmood HR Practices

    43/73

    computer. It will become another source and the company can get the particulars as and

    when they need.

    Casual Applicant:

    Depending upon the image of the Organization, its prompt response, participation of the

    Organization in the local activities, level of unemployment, candidates apply casually for the

    jobs through mail or hand over the applications in Personnel Department. This would be a

    suitable source for temporary and lower level jobs.

    Trade Unions:

    Generally, unemployed or underemployed persons or employees seeking change in

    employment put a word to the trade union leader with a view to getting suitable employment

    due to latters intimacy with management.

    Similar Organizations:

    Generally, experienced candidates are available in organizations producing similar products

    or are engaged in similar business. The management can get most suitable candidates from

    this source. This would be the most effective source for executive positions and for newly

    established organizations or diversifies or expanded organizations.

    Advertising:

    Advertising is widely accepted technique of recruitment, though it mostly provides one-way

    communication. It provides the candidates in different sources, the information about the job

    and company and stimulates them to apply for jobs. It includes advertising through different

    media like newspapers, magazines of all kinds, radios, television etc.

    Employee referrals:

    Friends and relatives of present employees are also a good source from which employees

    may be drawn. When the labor market is very tight, large employers frequently offer their

    employees bonuses or prizes for any referrals that are hired and stay with the company for a

    specific length of time.

    2.5.4 Modern sources or techniques of Recruitment

    o Walk In

    o Consult In

    o Head Hunting

    o Body shopping

    o Tele Recruitment

    35

  • 7/28/2019 Shah Mahmood HR Practices

    44/73

    o Business Alliances

    Walk In

    The busy organizations and the rapid changing companies do not find time to perform

    various functions of recruitment. Therefore, they advise the potential candidates to attend for

    an interview directly and without a prior application on a specified place. The suitable

    candidates among the interviewees will be selected for appointment after screening the

    candidates through tests and interviews.

    Consult In

    The busy organizations encourage the potential job seekers to approach them personally and

    consult them regarding the jobs. The companiesselect the suitable candidates from among

    such candidates through the selection process.

    Head Hunting

    The companies request the professional organizations to search for the best candidates

    particularly for the senior executive positions. The professional organizations search for the

    most suitable candidates and advise the company regarding the filling up of the positions.

    Headhunters are also called search consultants.

    Body shoppingProfessional organizations and the hi-tech training institutes develop the pool of human

    resources for the possible employment. The prospective employers contact these

    organizations to recruit the candidates. Otherwise, the organizations themselves approach the

    prospective employees to place their human resources. These institutions are called body

    shoppers and these activities are known as body shopping.

    Business Alliances

    Business alliances like acquisitions, mergers, and takeovers help in getting human resources.

    In addition, the companies do also have alliances in sharing their human resources on ad-hoc

    basis.

    Tele Recruitment

    The technological revolution in the Tele communication helped the organizations to use

    Internet as a source of recruitment. Organizations advertise the vacancies through the World

    36

  • 7/28/2019 Shah Mahmood HR Practices

    45/73

    Wide Web (www) Internet. The job seekers send their applications through e-mail or

    Internet.

    2.6 SELECTION

    Selection procedure is concerned with securing relevant information about an applicant. The

    objective of the selection decision is to choose the individual who can most successfully

    perform the job from the pool of qualified candidates.

    OR

    The selection procedure is the system of functions and devices adopted in a given company

    to ascertain whether the candidates specifications are matched with the job specifications

    and requirements or not.

    The selection procedure cannot be effective until and unless:

    1) Recruitments of the job to be filled, have been clearly specified (Job analysis, etc.

    2) Employee specifications (physical, mental, social, behavioral, etc.) have been clearly

    specified;

    3) Candidates for screening have been attracted.

    2.6.1 Selection Procedure

    There is no standard selection process that can be followed by all organizations in all the

    areas. Organizations may follow different selection techniques or methods depending upon

    the size of the company, nature of the business, kind and numbers of persons to be employed,

    government regulations to be followed etc.

    Selection Process

    Application Form

    Written Examination

    Preliminary Interview

    Group Discussion

    Tests

    Final Interview

    37

  • 7/28/2019 Shah Mahmood HR Practices

    46/73

    2.6.2 Application Form

    Also known as application blank, this technique is widely accepted for securing information

    from the prospective candidates. It can also be used as a device to screen the candidates at

    the preliminary stage. Information is generally required on the following items in the

    application forms:

    a) Personal background information

    b) Educational attainments

    c) Work experiences

    d) Salary

    e) Personal details

    f) References

    2.6.3 Written Examination:

    The organizations have to conduct examination for the qualified candidates after they are

    screened on the basis of the application blanks so as to measures the candidates ability in

    arithmetical calculations, to know the candidates attitude towards the job, to measure the

    candidates aptitude, reasoning, knowledge in various disciplines, general knowledge and

    English language.

    2.6.4 Preliminary Interview

    The Preliminary interview is to solicit necessary in formation from the prospective applicants

    and to assess the applicants suitability to the job. This step is useful as a process of

    eliminating the undesirable and unsuitable candidates.

    Temporary Job Offer

    Reference Checks

    Medical Examination

    Job Offer

    38

  • 7/28/2019 Shah Mahmood HR Practices

    47/73

    2.6.5 Group Discussions

    The technique of group discussion is used in order to secure further information regarding

    the suitability of the candidates for the j