INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Any organization, be it commercial, industrial, educational,

comes into existence when a group of people join hands for the
attainment of certain objectives. No organization can run successfully
unless there is someone to manage its activities. If the people
comprising the organization are left to themselves. The result will be
utter chaos. As a result of such activities, everybody will be managing
its own affairs & nobody will be responsible for anyone.

Thus, it is the management which matters people realize the

objectives of the organization and directs their efforts towards their
achievement. Marketing plans organizes co-ordinates & controls the
affairs of the organizations. It brings the human & material resources
together material resources for the achievement of the objectives of
the organization.
Human resource management is the process by which the
employees of an organization are helped in a continuous planned way
to Acquire and to sharpen capabilities required to perform various
function associated with their present or expected future jobs. Develop
their general capabilities as individuals and discover and exploit their
own inter potentials for their own and or for organizational
development purposes and Develop an organization culture in which
superior subordinate relationship, teamwork and collaboration among
sub-unit are strong and contribute to the professional well-being and
promote motivation and pride of the employees.

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 Management may be defined as ‘’ that field of human behaviour
in which managers plan organize, staff, direct and control of human,
physical and financial resources in of human, physical and financial
resources in an organized effort, in order to achieve desired individual
and group objectives with optimum efficiency and effectiveness”. It is
clear from above the definition that management is concerned with the
accomplishment of objectives by utilizing physical and financial
resources through the efforts of human resources-
Scope of Human resource Management
The scope gradually enlarged to providing welfare facilities,
motivation, employee training, performance appraisal, maintenance of
human relations and the like. The scope has been continuously
enlarging.
Presently the scope of HRM includes
 Nature of HRM
 Complex human beings
 Dynamic human resources
 Employment of human resources
 Job design and analysis, Human resource planning
 Recruitment, selection, induction and placement
 Human resource management
 Training and management development
 Career planning and development
 Organization charge and development
 Quality of work lift, quality circles
 Job evaluation

 Compensation management
 Job evaluation
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  Wage and salary administration
 Welfare benefits
 Human relation
 Motivation
 Morale
 Leadership
 Communication
 Industrial Relations
 Trade unions
 Grievance and discipline
 Collective bargaining
 Workers participation in management
 Prospect of HRM
 Non union organizations
 Dejobbing \ Delagening
 Down sizing
 Employee empowerment
Functions of HRM
The functions of the HRM can be gladly classified into 2
categories
1. Managerial functions
2. Operative functions

1) Managerial functions
The managerial functions are classified as follows;
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 1. Planning: - It is a pre-determined course of action planning is
determination of personnel programmes and charges in advance
that will contribute to the organizational goals.
2. Organizing: - An organization is a ‘structure and a process by
which co-operative group of human beings allocated its task
among its members, identifies relationships and integrates its
activities towards common objective”.
3. Directing: The next logical function after completing planning
and organizing is the execution of the plan. The willing and
effective co-operation of employees for the attainment of
organizational goods is possible through proper direction.
4. Controlling: After planning, organizing and directing the various
activities of personnel management, the performance is to be
verified in order to know that the personal functions are
performed in conformity with the plans and directions.
2. Operative functions.
1. Procurement of personnel:
The first operative function of personnel management is
concerned with obtaining the proper kind of personnel necessary
to accomplish organizational goals. This step includes
determination of Manpower requirements, recruitment, selection,
placement, and induction etc of staff.

1. Development of personnel:
Measures are taken to increase the efficiency skills and job
performance of employees through training and development. The
personnel department as to prepare training and development as to
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prepare training and development programmes for employees at all
levels of the organization conduct seminars and group discussions.
3. Compensation to personnel:
Compensation means determination of adequate and equalable
remuneration of personnel for their contribution to organizational
objectives. This includes job evaluation, development of a suitable
wage structure.
4. Maintaining good industrial relations
This is one of the most important functions of personnel
management maintaining a harmonious relationship between labour
and management is essential since it affects productivity.
5. Record functions: Maintenance of record is essential for the
following resources;-
a) To conduct research in the field of industrials relations.
b) To enable the personnel managers to the pare training and
development programmes.
c) To review and revise pay scales.
6. Employee benefit schemes
This includes formulation, implementation, evaluation of various
welfare activities such as education, housing, transportation etc.
7. Personnel planning and evaluation:
Employee appraisal is systematic evaluation of a workers
performance and scope for development. It is a process estimating the
values, excellence qualities or status of a person.
8. Personnel research and audit
This involves containing studies and various aspects of personnel
relations and personnel procedures and practices with the view to
bring about necessary improvements in the field of personnel
management.
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Definition of HRM
According to Institute of personnel management HRM is defined
as “personnel management is a responsibility of all those who manage
people as well as being a description of the work of those who are
employed as specialists. It is that part of management which is
concerned with people at work and with their relationships within an
enterprise. It applies not only to industry and commerce but also to all
field of employment. According to Flipplo”. Human resource
management is planning, organizing directing and controlling of the
procurement, development compensations, integration and
maintenance of people for the purpose of contributing to
organizational, individual and social goals”.

Manpower planning process

1. HR demand forecast: - Demand forecasting is the process of
estimating the future, quantity and quality of people required.
The basis of the forecast will be the annual budget and long term
corporate plan. The corporate plan is translated into activity
levels for each function and development.
2. HR Supply forecast: - The next step is to determine the source
from which the personnel can be procured. This information is
provided by supply forecasting. Supply forecasting measures the
number of people likely to be available from within and outside
of an organization.
3. HR programming: - Once the demand forecast and supply
forecast is over the next step is to match. These two. This will
ensure filling up of vacancies by the right employees at the right
time
4. HRP Implementation: - Implementation requires converting
the HRP into action. A service of action programmes are taken
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 up such as recruitment, selection and placement, training and
development, re-training etc.
5. Control and evaluation: - This is the final phase in HRP
process or manpower planning process the human resource plan
should include budgets target and standards.
Objective of Manpower planning
 To ensure optimum use of human resources currently
employed.
 To determine future recruitment level
 To provide control measure to ensure that necessary
 Resources are available as and when required.
 To anticipate redundancies and avoid unnecessary
dismissals.
 To forecast future skill requirement to serve as a basic for
training and development programmes.
 To assess future housing needs of employees
 To decide whether any of the enterprises activities e.g.
Maintenance of offloaded or sub-contracted.
 To identify the areas of surplus personnel or where it is
deficient so that it could be balanced.
 To train the existing employees to meet the challenges of
new and charging technology.

Objectives of HRM
 If must satisfy the employees by providing them income, power,
prestige, creative satisfaction or a combination of these.
 It must satisfy the owners by maximizing productivity.

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  It must satisfy the community and society at large by supplying
goods and services as efficiently as possible and by preserving
and advancing goodwill, morale, loyalty and its reputation.
 To ensure the availability of completed and willing work force to
an organization.
Recruitment
Recruitment forms the first stage of acquisition of Manpower or
human resources. This process of location and identifying potential and
candidate for selection. Recruitment is defined in various ways as
indicated follow.

“Recruitment is the process to discover the sources of manpower

to meet the requirement of the staffing schedule and employ effective
measures for attracting that manpower in adequate number’s to
facilitate effective selection of an efficient working force”.
- Yoder.

“Recruitment is the process of searching for prospective

employees and stimulating and encouraging them to apply for job in
an organization, it is often termed positive in that it stimulates people
to apply for jobs to increase the hiring ratio that is the number of
applicants to a job”.
- Edward.Flippo.

“Recruitment is the discovery of potential candidates for actual or

anticipated organizational vacancies….. It is the linking activity
bringing together those with the jobs to fill and those seeking jobs”.
- David.

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 According to this definition recruitment is a prospecting job
where organization make search for prospective employees. In
practice however prospective employees to seek out organization seek
out prospective employees. Therefore, the job of recruitment is based
on the mating theory where success pf both the parties is critically
dependent on timing. Unless the two searches synchronize conditions
are not ripe for recruitment to succeed. The synchronization in its turn
depends on 3 factors: -

1. There should be a common communication medium. If an

organization advertises its vacancies in newspapers, which is
never read by the job seekers, its efforts would go waste.
2. The job seekers must perceive a match between his personal
characteristics and prescribed job recruitment.
3. The job seeker must be motivated t0 apply for the job.

Recruitment is the process of exhausting all the sources for

finding prospective employees. It is the process of finding suitable
employees and stimulating them to apply for jobs in the organizations.
Its objective is to increase the selection ratio, that is, the number if
applications per job opening.

Theories of Recruitment
There are 3 ways in which an individual make decision to join an
organization there are objective factor, subjective factor and critical
contact.
Accordingly following three theories of recruitment have evolved.
1. Objective factor theory
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 2. Subjective factor theory.
3. Critical contact theory.
1. Objective factor theory: -
As per this theory the choice of organization by potential
employees depends on objective assessment of certain tangible
functions, such as the following.
 Pay and perks.
 Location.
 Opportunities for career growth.
 Nature of work.
 Educational opportunities etc.
2. Subjective factor theory:-
According to this theory compatibility on individual personality
with the image of organization by an individual candidate seeking
employment.
3. Critical contact Theory
There are instances when a candidate is unable to choose an
organization, out of alternatives based on objective or subjective
factor, which are given above.

This is due to many reasons. Such as limited contact and insufficient

data, in regards to the organizations or his own inability to analyze
and come to any firm and conclusion. In such cases, certain critical
factor observed by him during his interview and context with the
personnel of the organization will have profound influence personnel of
the organization will have profound influence in the decision process.
Example of critical factor is the impression made by recruiting
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personnel on him. The business like manner in which the recruitment
process is carried out nature of facilities presented etc.
Objectives of Recruitment
- To attract with multi- dimensional skills and experience that suit the
present and future organization strategies.
- To induct outsides with new perspectives to lead the company.
- To infuse fresh flood at all levels of the organization.
- To develop an organization culture that attracts competent people to
the company.
- To search or head hunt\head paunch people whose skills fit the
company’s values.
- To device methodologies for assessing psychological traits.
- To seek out non-conventional development grounds of talent.
- To search for talent globally and not just with the company.
- To design entry pay that competes on quality but not on quantum.

Factors affecting Recruitment

Although all organizations at one time or other engage in
recruiting activities some do so too much longer extent than others.
The various factors, which influence the recruitment efforts in different
organization, are:-
1. Size of the organization.

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 Large organization finds they recruiting more after than smaller
organization also the firms that pay lower wages in to recruit
more frequently.
2. Employment Conditions.
The employment conditions in the community where the
organization is located will influence how much recruiting takes
place.
3. Past recruitment efforts.
The efforts of past recruitment or recruiting efforts will show
itself in the organization historical ability to locate and deep
people who perform well.
4. Working condition and compensation.
The working conditions and compensation and benefits package
offered by the organization would influence labour turnover and
therefore the need for future recruiting.
5. Growth of Organization.
The rate of growth of organization would affect recruitment
organization that are not growing or those that are actually deciding
would find little need to recruit. On the hard rapidly growing
organization would find recruitment as a major activity.

6. Other Factors
Other factors such as level of seasonality of operation, future
expansion, and cultural, economic and legal factors also influence
recruitment.
Sources/Forms of Recruitment
Recruitment can either be through
1. Internal sources
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 2 External sources
1. Internal Recruitment/ Sources: - Internal recruitment means
seeking applicants for positions from there that are already employed
in the organization.
Internal sources are:-
1. Present employees.
2. Employee referrals.
3. Former employees.
1. Present employees.
Promotions and transfers from among the present employees can be
good source of recruitment. Transfers without promotion can also be
made.
2. Employee Referrals.
The present employees suggest prospective candidates [either family
member of friends] to the employer. This is an effective method
because many qualified people can be contained at a very low cost to
the company. The current employees are conditions while
recommending candidates since there will be aware of employer’s
expectations.

3. Former employees.
In some cases retired employees may be willing to comeback and work
on a part time basis. Some candidates, who left the origination for
other jobs, might be willing to comeback. The advantage of this source
is that the employees already know the performance of such
candidates.
Merits of Internal Recruitment
1. It is less expensive when compared to external recruitment.
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2. Promotions from within will enhance employee morale, commitment
to the organization and job satisfaction.
3. The employer need not conduct collaborate orientation
programmes.
4. Employer is well aware of the candidate’s skills, abilities, strengths
and weakness.
De-Merits of Internal recruitment
1. It results in breeding the possibility if getting fresh blood is lost.
2. Internal recruitment doesn’t serve the purpose when an
organization wants to expend or diversity.
3. Internal recruitment encourages “The same old way of along
thins”. Possibility of Internal polities is high such as favoritism
corruption etc.

2. External Recruitment
Following are the external sources
1. Professional or trade associations.
Certain trade associations provide placement services for there
members. They may publish or sponsor trade journals or magazines
for their member. These publications after curry classify adds from
employers.
2. Advertisement.
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 This is a very popular method of recruitment. “Wants adds
describe the job and the benefits, identify the employer and also
specify how to apply for the post”. A newspaper is most common
media.
3. Employment exchange.
Employment exchanges ‘compulsory notification of vacancies
acts 1959”. Applies to all industrials establishments having 25 workers
are more. The acts specify that such industrials establishments should
notify the vacancy to the exchange before filling up the same. This the
employment exchange acts as a link between the employer and
prospective employee.
4. Campus Recruitment
Some companies contact educational institutions like IIMs. IIPs
to select candidates selection is generally made from students in the
final year. Companies like Hindustan lever, Motorola, Citibank etc.,
adopt this approach.

5. Walk in, Talk in method.

In today’s organization interested candidates contact the
organization abjectly at a designative place. Several rounds of
Interviews are conducted before deciding the candidates.
6. Contractors.
Contractors are used to recruit casual workers. The casual
applicants come to the factory gate and contact the recruitment
officer.
7. Consultants

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 Consultants perform the recruitment function on behalf of the
client company in return for a fee.
8. Radios and Television
Government departments generally do radio and television as a
source to recruit persons.
9. Acquisitions and Merger.
Another method of staffing is through acquisition and merger.
When two organizations merge than the new organization will have a
port of competent or capable employees. The new organizations as to
suitable accommodate the candidate in new organization.
10. Competitors
Sometimes rival firms can be source of recruitment. It is popularly
called as approaching or riding this method involves identifying the
night people in rival companies, offering them better terms than
turning them away.

11. Displaced persons

Sometimes when a new project is started in a new location it may lead
too displacements of several inhabitants of that area. Re-habilitating
the displaced people is social responsibility of business such people
than become a source of recruitment.
Merits of External Recruitment
1) The organization will have the benefit of new skills, new talents
and new experiences, if people are hired from external sources.

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 2) Management will also be able to satisfy recruitment
requirements of the government such as recruitment of
backward classes, disabled persons etc.
3) External recruitment can sometimes over come the problem of
jealousy and resentment among the old employees.
De-Merits
1) External recruitment is expensive and also time consuming.
2) Possibility of promoting candidates from among the existing
employees is lost.
3) Possibility to mal-adjustment among the old employees and new
employee.
4) If external recruitment and selection are not conducted properly
than the wrong candidate may enter the organization.

Recruitment Process
First step
The personnel / human resources department receives the
requisition list of employees from various department of the company.
They from various department of the company. The employed from
consists of jobs to be filled number or person to be employed, duties
to be performed, skills and knowledge abilities, qualifications and
experience of the candidates etc. It also contains terms and conditions
of employed time period for joining the duties etc.

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Second step
This step relates to identification of source, their location/ areas
at right time and development of source.
Third step
This step includes searching for prospective candidates in the
source developed.
Fourth step
This step involves motivating the prospective candidates to apply
for the job by providing the information about the company, job, pay
scale allowances career, opportunities, terms and candidates of
employment etc.
Firth step
This step involves stimulating the prospective and suitable
candidates to apply for the job providing additionally information to
the candidates and procuring application from the candidates.

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Sixth step
This step involved evaluating the effectiveness of the
recruitment process.
Steps in Recruitment Process
According to Fumularo personnel recruitment process involves five
elements:
a. Recruitment policy.
b. Recruitment organization.
c. Forecast of Manpower requirements.
d. The development of sources of recruitment and different
techniques used for utilized these sources.
e. A method of assessing the recruitment programme.
1. Recruitment policy
Recruitment polity assesses the objectives of recruitment
objectives and provides a framework of implementation of the
recruitment programme in the form of procedure,
A good recruitment policy must contain these elements.
1) Organization objectives – both short-term and long-term.
2) Identification of recruitment needs.
3) Preferred sources of recruitment, which would be appeal by the
organization,
4) Criteria of selection and preferences.
5) Cost and financial implications of recruitment.

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Pre-acquisitions of a good recruitment policy
The recruitment policy of an organization must satisfy the
following conditions: -
1. It should be in conformity with the general personnel
policies.
2. It should be flexible enough to meet the changing needs of
an organization,
3. It should march the qualities of employees with
recruitment of the work for employees with recruitment of the
work for which they are employed.
4. It should highlight the necessity of establishing job
analysis.
2. Recruitment organization
There is no general procedure for hiring new personnel, which is
applicable to able business enterprises. Every organization uses
procedures. Which brings with it the desired quantity and quality of
manpower at the minimum possible cost the most commonly adopted
practice is to centralize? The most commonly adopted practice is to
centralize the recruitment and selection functions in a single office. All
employment activities should be centralized if the polices of the top
management are to be implemented consistently and efficiently.
3. Forecast of manpower recruitment
The management must estimate the structure of the
organization at a given point in time. For the organization the number
and type of employees need have to be determined.

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Many environment factors affect this determination business forecasts
expansion and quotation on it philosophy government policy, product
and human skills and completion forecasting recruitment provide an
early warning system and facilitate maximum preparation for
implementing change. Planning the further recruitments of manpower
of all types requires two set of information
1. An analysis of the existing manpower strength and
the work volume being handled.
2. Detailed forecast of future or preferable changes in
methods, type of work, facilities etc. In determining the
requirements of human resources the expected losses that are
likely to occurs through labour turnover, retirement death,
resignation dismissal, promotion and other separation should be
taken into account.
4. Sources of Recruitment
Before on organization begins recruiting applicants it should
consider re most likely sources of the type of employee if need. The
sources of employment could be classified into two types Internal and
external source.
Most organizations depend on both sources and the relatives
emphasis and use of these sources night differs from one organization
to another.

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 5. Assessment of Recruitment programme.
Sources of recruiting should be periodically evaluated. For his
purpose the criteria might be cost per applicant, the applicant-hiring
ratio or performance appraisals.

The organization should first identify low an applicant was

attracted to the firm. The next step is to determine whether any one
method consistently attracts batter applicant the last step is to use this
information to improve the recruiting process.
SELECTION
One of the major activities in “Acquisition function” personnel
management [HRM] is the specific section of employed to fill up the
vacancies selection process consists of series of steps. This price is
followed immediately after the recruitment is completed. The objective
of selection process is two fold they are;- Select a candidate whose
success of probability in the job is highest. Motivate the right
candidate to opt for the vacancy by the proper presentation of the
organization to the potential candidates.

Selection is defined in various ways as given below;\ According

to yoder “selection is the process by which candidates for employment
are divided into classes those who will be offered employment and
those who will not’.

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 Accordingly to koontz ‘o’ Donnel “Selection is a process of
choosing from among the candidates from within the organizations or
from outside, the most suitable person for the current position or for
the future position”.

Selection is always essential for an organization to have a

selection programme the need to install such a programme arises only
when there is a labour surplus and there are individual differences in
job performance. This means that when there is shortage or when the
work is such that no large differences in job performance exist there is
no need top have a selection programme

BASIC SELECTION MODEL

1. Job description.
2. Identification of predictor and variables
3. Identification of criterion variables.
4. Performance measurement on predicator and
criterion.
5. Co-relation between predictor and criterion.
6. Decision to accept or reject predictor.
7. Follow up.
8. Selection with multiple predictors
9. Profile matching.

NEED FOR HUMAN RESOURCE DEVELOPMENT:

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 The components and dimension of human resource development
is of strategic importance. People make things happen. HRD is the
process enabling people to make things happen. The main objective
being to develop competencies in individual, groups and collective,
developing competencies a never ending process. The opening of
global markets and increased market orientation of economy.
Competitiveness has gone up globally, forcing developing countries to
produce and make quality product at competitive prizes.

HRD deals with the development of technological capabilities,

requiring, investment in science, technology, research and
development, industrial high-tech products. This also required policies
and programmes that deal with higher education, science and
technology, and industrialization. The competition in global market
requires competitive technologies and managerial efficiencies.
Competencies include knowledge, skills, attitudes and values. The
competencies so developed would ‘enable’ people to act and improve
their own lives and those of others.

Factors which are responsible for development of this profession

in a phased manner from world prospective are as follows: -
 Technological changes are taking place at a rapid pace through out
the world. Such changes the relationship between people and work
and a major change in the economic system and the structure of a
society.
 The rising competition both at home and abroad virtually reduces
the profit to the level of production.
 The rise of consumerism, government protection and international
competition developed the necessity to maintain quality and price.
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 Social changes.
 The political development also re-structured trade unionism.
 The structural charges in employment and changes in sector
distribution of employment.
Effective utilization of human resources under this technological
environment is the challenges before today’s personnel. There is total
crisis and recession throughout the world.
MAJOR FUNCTIONS OF HRD
1. Determining and staffing for employee needs.
2. Measuring performance and developing employee potential.
3. Preserving effective employment management relationship.
4. Uncovering and resolving employee problems.
5. Anticipating and coping with organizational changes.

HUMAN RESOURCE DEVELOPMENT AS A SEPARATE PERSONAL

DISCIPLINE
The importance of human resource Development is to make
people effective and resolving the employee problems. It is believed
that Karl Lewis (1947) studies of Behaviour of small groups and
settings up of National Training Laboratories are the first step of HRD
profession was the domain of psychiatrist; psychologists, counselors
and nurses are the concept of human relation training. Training group
leaders, handling complaints, expressing feelings, giving and receiving
feed-back, competition and co-operation, problem solving and
increasing awareness on oneself and ones impact on others.
HUMAN RESOURCE MANAGEMENT AND HUMAN RESOURCE
DEVELOPMENT
In the ESCAP region a broad definition of HRD seems to have
been implied by several writers.
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 Limteck Ghee takes view that HRD should refer not only to aspect
of physical well-being of people such as life expectancy, infant
mortability, rates of mortability and level of nutrition, but also social
cultural aspects, including education and employment, social co-
heism and stability political expression, cultural diversity and even
ecological harmony.
 Lorraine Corner (1991) suggests that HRD is used in three senses -
The first approach emphasizes the contribution of human capital to
economic growth. The second emphasis ‘quality of life’, which is
considered as an output of development the third is an integrated
view combing the first two approach
 Bacchus (1992) the ultimate goal of human resource development
in any country is, or should be, to improve quality of life of all its
people. The main activity being for a smaller and more productive
utilization of the total human resources of a country.
 Common wealth secretariat and other such agencies seems to
prefer HRD. It defines HRD as : Policies and programmes that
support and sustain equitable opportunities competitiveness which
promote individual and are naturally beneficial to individuals, the
community and the larger environment of which they are a part
(UNDP, BPPE, 1991, P.19)

FACTORS OF HRD ARE:

a) Search for Competitive Advantage: The competitive Advantages
school of thought argued the better utilization of human resource

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 is necessary to achieve competitive advantage by organization
and by any nation.

b) Models of Excellence: By Peters and Waterman (1982) and

Knater (1984), HRM, as models of Excellence companies
isolating it from traditional Personal Management Functions.

c) Failure of Personnel Management: Skinner (1981) and many

others show personal Management failure to promote potential
benefits of effective management of people.

d) Decline in Trade Union Pressure: Change in economic and

political climate around the world resulted in decline in Trade
Union Pressure on Management.

e) Change in the workforce and the Nature of work: Structural

change in the occupational pattern is now a world-wide
phenomenon, of which India is also no exception. Technology,
increased requirement of skills, and knowledge re-structuring of
production, near quality system etc….

HRD CONCEPTS:
HRD is a process which helps employees of an organization to
improve their functional capabilities for their present and future roles,
to develop their general capabilities to harness their inner potentialities
both self and organizational development. To sustain harmonious
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superior–subordinate relationship, team work, motivation, quality and
sense of belongingness.
TRAINING:
The focus on training programmes should be such, so as to
enable the individual to perform more effectively in his present job
position. Training is required when a person is hired without the
requisite skills, attitude, or knowledge. Even incases where on
employee may be performing very well changes in processes,
procedure, material etc., many stimulate the need to further training.
Total Quality Management, small group activities or Quality,
Circle concepts are called for training them to make them financially
more effective in their re-structural jobs.
EDUCATION:
Since return on investment from education is unclear or
uncertain, very few organizations are prepared to invest on employee
education programme and develop them.

Many organizations allow their employee to go on study because

for Research work etc., based on organizational needs for future.
Some organization encourage employee to get enrolled in part-time
evening institution and reimbursing the employee. However, some
organization, provide education the organization and ensures on-the
job activities learning of new techniques for the future roles.

DEVELOPMENT:
Development component of HRD is to conduct learning
experience for a future undefined job. However experience shows
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carefully planned development experience can be helpful in realizing
the human potential.
OBJECTIVES OF HRD:
1. To develop capabilities of all such individual in relation to their
future role.

2. To develop capabilities of all such individual in relation to their

present role.

3. To develop letter inter-personal and employer – employee

relationship in an organization.

4. To develop team spirit.

5. To develop organization health by renewal of individual

capabilities keeping pace with the technological changes.

6. To develop co-ordination among different with in an

organization.
ROLE AND SIGNIFICANCE OF HRD:
For any dynamic and growth oriented organization to survive in
a fast changing environment, HRD activities plays a crucial role.
Training, Retraining and re-department has now became buzz word in
corporate circles as market globalization, de-licensing and free flow of
technology, intensified competition, rendering tradition skills and
knowledge redundant.
Many organizations in India are threatened with manpower
obsolescence to withstand which HRD activities have received prior
importance.
HRD SYSTEM:
1. Increasing the ‘enabling capabilities’ by developing human
resource organizational health, team spirit and increasing
employment, motivation and productivity.

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 2. Focus on balanced organizational culture – by conducting
periodic surveys, workshops, discussion, stimulating openers,
mutual trust, workshops, creativity, initiative, collaboration,
delegation, management of conflict etc.,
3. Focus on having context factors: - from different profession
like NIPM, ISTD etc.
4. Focus on periodic reviewing of HRD System – which may
call for re-designing, performance appraisal, Reward System,
Promotion, Selection, Induction, Training and Development, etc.
5. Focus on integrating HRD with other corporate functions like
Production, Finance, Material Corporate Planning etc. such
integration will strengthen the development of enabling
organization.
6. Focus on diffusion of HRD function – involving line manager
in various HRD aspects live training of sub-ordinates,
performance appraisal, promotion, placement, selection etc.,
7. Focus on working with union by taking them into confidence and
collaborating with them. The Union also plays a positive role like
Syndicate Bank Employee Union.

STRUCTURE OF HRD SYSTEM ORGANISATIONAL CHART

President HRD

Vice President / Training Vice President / Education & Development

Manager Manager Manager Manager

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Education Executive OP Management
& Development Education Development

Manager Manager Manager Manager

Sales & Engg. Manufacturing Staff
Marketing Training Training Support
Training

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 ORGANISATIONAL CHART NO.2 – (INTEGRATED HRD)

GENERAL MANAGER

Manager Manager Manager Manager Manager Manager

Finance Customer Human Manufacturing Sales & Accounts
Service Resources

Supp./Customer Supp / Supp/ Technical Sup / Scales

Service Training Mgt. & Training training Clerical Training

ORGANISATIONAL CHART NO.3 HRD as a separate

Department

VICE – PRESIDENT – HR

Director / Director / Director Director / Director

Personnel HRD IR Labour Employee
Admn. Welfare Services

ROLE OF HRD MANAGER

The Primary goal of HRD is to increase worker’s productivity and
firm’s profitability as investment in HRD improves workers skill and
enhance motivation. The other goal of HRD is to prevent obsolescence
at all levels. To achieve there goals HRD Manager has to:-
1. Assist people in obtaining the knowledge and skills through
proper training for present and future job.
2. To play the ‘enabling’ role providing the organization to reach
objectives.

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 American Society for Training & Development 1988 identified
eleven roles of HRD Manager:
1. EVALUATOR: The role of identifying the impact of an
intervention on individual on organizational effectiveness.
2. ADMINISTRATOR: The role of providing Co-ordination and
support services for the delivery of HRD.
3. Individual Career Development Advisor: The role of helping
individuals to assess personal competencies, values and goals.
4. HRD Manager: The role of supporting and leading a groups
work and their obtaining organizational goals.
5. Instructor / Facilitator: The role of presenting information
directing structured learning experience and managing group
discussion and group process.
6. Marketer: The role of marketing and contracting for HRD view
points, programmer and services.
7. Material Developer: The role of productivity written mediated
institutional methods.
8. Needs Analysts: The role of identifying ideal and actual
performance and performance conditions and determining
causes of discrepancies.
9. Organizational Changes: The role of influencing and
supporting changes in the organizational behaviour.
10. Programme Designer: The role of preparing objectives
defining content and selecting sequence of activities.
11. Researchers: The role of identifying developing or testing
new information and translating these two implications for
improved individual organizational perform.

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SELECTION PROCESS
The first task of selection process is to define the organizational
needs for different position and so also to assess the available
 To develop in an organization a wide selection and promotion
system that supports the over all manpower policy of the
organization.
 To create internal flow of people to suit the future requirements of
the organization.
 The final strategic is matching key executives to the organizational
policy.
Internal selection is considered to be the best policy to sustain
morale of the presence employees, thereby, organization derives
motivation benefit. Some time the organization has to book at
external source, to make selection process scientific.
Selection process is broadly divided into two: -
a) Discreet Selection Process
b) Comprehensive Selection Process
Discreet Selection Process: -
“Discreet Selection Process” – the result / outcome of each step
is “success” or “Failure” Yoder  “Succession of Hudles”.
1. Application
2. Screening
3. Application Blank
4. Selection Tests
5. Interviews
6. Work History
7. References
8. Provisional Selection
9. Physical / Medical Examination
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 10. Final Selection
11. Employment

HRD TOOLS:
SELECTION
Selection process includes both activities relating to Internal
hiring and external hiring. The objective of selection process is to
determine whether an applicant meets the qualification for a specific
job and to choose the applicant most likely to perform.
OBJECTIVE OF SELECTION PROCESS:
a) Select a candidate whose success probability in the job is the
highest.
b) Motivate right candidate to opt for vacancy by proper presentation
organisation to the potential candidates.
Cost of selection is also an important aspect. The best way to
reducing cost is to take “Correct Decision”. Thus selection is “Decision
– marking” process.
COST OF DECISION:
Every decision has a cost. There are four types of selection
they are
1. Selecting the right person. (Correct Decision).
2. Rejecting the right person. (Wrong decision, reject error)
3. Selecting the wrong person. (Wrong decision, select error)
4. Rejecting the wrong person. (Correct decision).

SELECTION PROCESS – DECISION MAKING MATRIX

DECISION / SELECT ERROR

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PERFORMANCE
GOOD CORRECT (2) Rejecting the
(1) Selecting the Right
Right
BAD ERROR CORRECT
(3) Select the wrong (4) Reject the
Wrong.

“Selection is the process by which candidates for employment

are divided into class those who will be offered employment and those
who will not”.  Yoder
“Selection is the process of choosing from among the candidates
from within the organization or from the outside; the most suitable
person for the current position or for the future position”.  Koontz
SELECTION TESTS:
Psychological Tests are conducted for selecting candidates.
Organization historically, relief considerably to a number of tests.
These tests are conducted in order to improve the selection decision.
“A systematic procedure for comparing the behaviour of two or
more persons”.  Blum.

CLASSIFICATION OF TESTS
a) Based on Design

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  Standard tests
 Tailor made tests.
b) Based on Attribute Being Tested
 Aptitude test (Proficiency Test)
 Achievement Test (Performance Test)
 Personality Test
 Interest Test.
c) Based on purpose for which the tests are conducted.
 Selection Test
 Classification Test
 Placement Test
d) Based on number of persons involved.
 Individual Test
 Group Test
APTITUDE TEST:
This test is to measure talent ability and potential capability of
specific talent such as learning reasoning, mental ability and
mechanical dexterity most common. Aptitude tests are:

 Intelligence Test: This test enhance mental abilities such as verbal,

reasoning, analytical ability etc.
IQ = Mental Age
Chronological Age

 Mechanical Aptitude Test: The parameters to check on are spatial

visualization, perceptual speed, and manual dexterity.

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1. Application: It is the process of identifying potential candidates.
 Applicants desire to take up the job in the organization is
demonstrated formally and voluntarily.
 Organization has publicity admitted existence of a vacancy and
expressed willingness to consider suitable candidate for
appointment.
2. Screening: -
 Screening of Application
 Screening of Interview
a) Screening of Application:
It is based on “Job description” and “Job specification” attributed
of a suitable is considered.
b) Screening Interviews:
1. To assess how serious is applicant for getting job.
2. To assist management to clarify certain points.
3. To explain nature and type of job from “Job description”
4. To clarify salary package and perks.
3. Application Blank:
This is the specially designed “Application Form” by the
organization.
1. Biographical data like name, address, date of birth, sex,
nationality.
2. Education Qualification & Training.
3. Work Experience – duties, responsibilities, salary and reason of
leaving the previous employment.
4. Personal achievement in sports and arks.
5. Professional achievement and membership of professional
bodies.
6. Expectation of salary and perks.
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 7. Individual goal and interest.
8. Assets, outstanding debts and criminal and if any
9. References.
a) Correlation Analysis: Test scores are compared with job
performance. Ranking of each employee may be tested. X-axis
is test score and Y axis is the performance test. Higher positive
value approaching to +1 is the better validity of the test.
b) Scatter Diagram

100 81-90

71-80
Success Rate in %

75
51-60

50

25 21-30

0
Test Score

INTERVIEW:
Interviews are most used widely for selection process. This is a
complex technique and its scope is very wide. Factors considered are:
 Adequate preparation.
 Type of interview
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  Techniques used
 Adherence to principles
 Avoidance of pit falls.
OBJECTIVE OF INTERVIEW:
a) It is the only way to see an applicant in action how he looks, his
manner and his hearing.
b) It is the only way to witness how he interacts, how he responds,
his way of thinking etc.
c) To get first hand information about the candidate.
d) To promote goodwill toward the company.
e) To give essential facts about the job and the company.
4. Psycho – Motto Test :
Dexterity, control and co-ordination of muscles are checked.
 MC Quarril Test
 Purdue Mechanical Adaptability Test.
ACHIEVEMENT TEST
 Test of measure knowledge.
 Test to measure skill level.
PERSONALITY TEST
 Objective Test
 Projective Test
 Situation Test

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ASSESSMENT CENTRE TESTS
 Interview
 An “in basket” exercise where applicants are asked to solve day
to day problem faced by manager – planning, organizing,
directing, co-ordinating and controlling.
 A care – study exercise.
 A group discussion.
 A business game.
 A set of general ability test.
VALIDITY OF TESTS: Explained by
 Scatter Diagram
 Expectancy diagram
On the basis of the project study made and response received the
following suggestions are made to improve HR activities
1) The performance evaluation should be made objective basis.
Periodical achievement of tasks should be adopted and allotment
of tasks in the succeeding periods should be assessed by the
superiors based on the performance of the assesses in the
assessing period / quarter. If there is 100% achievement, such
executives should be considered for higher job responsibilities
thereby, utilizing their talents to the full extent. This way the
organization will prosper.
2) Every executives, and for the matter, every employee should be
looked upon with self-respect. Though “respect for individuals”
is one of the organizational values in the company, it seems this
value is not being practiced. To overcome this, it may be made
one of the aspects in the annual confidential report as which an
assessee may comment and the organization could take
corrective step accordingly.
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3) In case, of recession, the employee should be informed a month
before the pink-slip is issued and the reason for which it is
issued to be explained. Giving opportunities for the individual to
improve or helping him to get absorbed in another organization
if the HRD is aware of vacancies. Giving references for
absorption in another firm.
4) The performance standards should be discussed with the
subordinates / employee so as to involve them in standard
setting. This satisfies the individuals ago and desire for self-
esteem brings about physical and mental involvement of the
people in an activity, particularly in that of decision-making
especially matters affecting them.
5) Steps should be taken to analyze hour for the organization /
individuals have been objective in various actions, such as
promotion of individuals, extending benefits, in assessing
subordinates in their annual confidential reports, assigning jobs,
development of subordinate etc., with this in view, it would be
appropriate if the subordinates also assess their superiors in
their annual confidential reports, which system is existing in
some of the companies. Organizational policies are thus,
applied uniformly.

6) Participative management and Consultative supervision have

been greatly encouraged. Identification implies that “the
individual sees the group mission and goals coinciding with his
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 personal objectives”. It is believed that employees’ helps in
setting their individual and group goals are strongly agreed to
achieve the target. Identification makes the individual more
receptive to organization norms and to suggestion from his
associates.
It offers an opportunity for increasing the employees’ sense of
personal with and high group loyalty tends to the associated with
high performance. This company, being a very young is the market,
the employee should also grow with the company’s growth and
accordingly, their needs will also increase. The company has to
keep a watch and make continuous progress in near future.

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