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SUMMARY OF COA1EA1S
W Net Employment Service Company profile
W Net HR Policies
W Meaning of Recruitment and Selection
W Factors Affecting Recruitment
W Sources Of Recruitment
W Characteristics of Recruitment
W Recent Trends In Recruitment
W Recruitment Process
W Methods of Recruitment
W Client management by Net HR Employment
W Significance of selection
W Factors To Be Considered For Selecting
W Steps in scientific selection process
W Difference between recruitment and selection
W Training & Development
W Employee Relationship and Employee Retention
W Performance Appraisal
W Compensation Management and Incentive Management
W Managing Recession
W Current, Past & Future Scenarios



IA1RODUC1IOA

Recruitment and selection is the process of identifying the need for
a fob, defining the requirements of the position and the fob holder, advertising the
position and choosing the most appropriate person for the fob. Retention means
ensuring that once the best person has been recruited, they stay with the business
and are not 'poached` by rival companies.
Undertaking this process is one of the main obfectives of management. Indeed, the
success of any business depends to a large extent on the quality of its staff.
Recruiting employees with the correct skills can add value to a business and
recruiting workers at a wage or salary that the business can afford, will reduce
costs.
Employees should therefore be carefully selected, managed and retained, fust like
any other resource. Recruitment is an important part of a business human
resource planning. In all businesses, people are a vital resource - and they need to
be managed as such.
The overall aim of the recruitment and selection process is to obtain the number
and quality of employees that are required in order for the business to achieve its
obfectives. Recruitment is becoming more and more important in business. In
particular, this reflects the increasing need for a well-motivated and flexible
workforce that requires less management supervision.






AE1 EMPLOYMEA1 SERJICE PRIJA1E LIMI1ED
(WWW.AEMPS.COM)
Recruitment Process, Client Servicing & employee Relationships Management


Company Profile: Aet Employment Service Private Limited
W Net Employment Service Private Limited feature amongst the leading search
companies in India.
W Net Employment Service feature amongst the top 5 Search companies in
Western India.
W Net Employment is located in Mumbai, Pune, Hyderabad and Bangalore.
W Mafority of clients feature in the Fortune 500 list.
W Net Employment Service caters to diverse industries vi:., IT, Banking &
Finance, Pharmaceuticals, Biotech, Oil & Gas, Chemicals, Consumer goods
and Retail.
W Company offer Executive Search, Contractual & Temporary Staffing and
Corporate Training services.
W Net Employment Services can provide complete assistance from providing
the infrastructure to recruiting IT professionals.



AE1 Employment Recruitment Philosophy
W To ensure success of client organi:ation by providing outstanding
executives.
W To ensure recruitment of best talent in fastest possible time so as to avoid
loss of revenue time.
W To provide each client with an unparalleled level of individual attention.

Aet Employment Forte
W NET HR has ensured success of their clients by providing excellent human
resources.
W They have adopted a penetrating approach to recruitment thereby enabling
us to tailor precisely fitting solution to each assignment.
W They do not believe in resume pushing.
W They understand their clients needs and ensure that they put forth only what
is expected from them as a search partner.
W NET provides each client with an unparallel level of individual attention to
help them select their most valuable assets

Aet Employment Objective:
Net Employment obfective is to provide employment services for all
industries at all levels of employment along with HR Services including
training, evaluation, market intelligence, compensation surveys, secretarial
services, back-office processing and business center.




Aet Employment Jision:

TO BE AMONGST THE TOP 3 EXECUTIJE SEARCH FIRMS

IN INDIA BY DEC 2011

AE1 HR REACH
Looking for a change?

NET Employment doesnt provide fobs.... They Build Careers.

1hey are managing search assignments of our clients based in following
countries-
O India
O Singapore
O Hong Kong
O apan
O Middle East
O USA
O UK





IADUS1RY SPECIFIC DIJISIOA
Net Employment provides Search Services through industry specific
divisions which enable us to cater to the diverse needs of our clients vi:.

itnemps.com

bkgnemps.com

enggnemps.com

enggnemps.com

pharmanemps.com

fmcgnemps.com

retailnemps.com

jobsnemps.com

hrnemps.com

SEARCH ME1HODOLOCY

AE1 Employment Search methodology

Net HR have speciali:ed recruitment teams for different industry
segments like BFSI, IT Software, Pharmaceutical, Healthcare,
Engineering, ITES and retail.
1. Aeeds Assessment
We consider this stage as a pre-requisite to our recruitment process. We
understand about the profile of the desired candidate through the fob
description and the key responsibility areas of the given requirement. We
also try to understand the expected role played by the desired candidate in
the organi:ation. After a thorough analysis of the requirement, we compile
information about the competitors, compensation structure and the future
growth for the given position.



2. Develop a sourcing strategy
In this stage, we work out the action plan by mapping the industry. We also
identify the various sources we can use to fulfill the requirement of our
client. We hold regular review sessions with our clients to make sure we are
on right track and also provide them regular feedback and updates on the
response we are getting from candidates.
3. Identify prospective candidates
As finali:ed in our strategy, we use various sources to identify candidates
for fulfilling the requirement of our client. We also take references from our
contacts and the extensive database we have accumulated over these years.
4. Detailed discussion with the candidates
Our recruitment specialists speak with the candidates about the fob profile
and company profile and what are their expectations and career aspirations.
A frank approach helps us to win the confidence of the candidates.
5. Candidate interviewing & evaluation
Once the candidate has desired his interest in the opening, our panel of
experienced consultants scrutini:es the candidates and evaluates them
according to the technical skills, leadership qualities and whether he would
suit the organi:ation culture of the client.
. Presentation of short listed candidates to clients
After conducting the preliminary interview, we prepare a summari:ed report
in a format given by the client or if no particular format is specified we
submit the report in our own format. The client will find our report helpful
to see the details of all the candidates at a glance along with our feedback.
7. Candidate interview scheduling with client
We coordinate at all stages right from telephone interview, video
conferencing, to organi:e personal interviews till the time the candidate
foins clients organi:ation. We also offer assistance in negotiating the
compensation part prior to the formal written offer. We counsel the
candidate on the formalities of resignation from the current employment.
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8. Candidate reference check
We always help our client by carrying out reference checks provided by the
candidate and also check with the third party references from our side as it
allows us to throw better light on the hidden information.
9. Candidate selection
We make sure that the requirement of our client is fulfilled in the desired
time. We maintain high levels of confidentiality throughout the process.
1.Maintain continuous follow up with candidate
To make sure that the selected candidate foins our client organi:ation, we
maintain a continuous follow up with our candidate and keep the client
updated on his status.

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RECRUI1MEA1
W Process of finding & attracting capable applicants for employment.
W The process begins when new recruits are sought and ends when their
applications are submitted.
W The result is a pool of applications from which new employees are selected.

SELEC1IOA

W Selection is the process of picking individuals (out of the pool of fob
applicants) with requisite qualifications and competence to fill fobs in the
organi:ation. A formal definition of Selection is.-
W " It is the process of differentiating between applicants in order
to identify (and here) those with a greater likelihood of success in a
job.''

Recruitment and selection are the two crucial in the HR process and are often used
interchangeably. There I, however, a fine distinction between the two steps. While
recruitment refers to the process of identifying and encouraging prospective
employees to apply for fobs, selection is concerned with picking the right
candidates from the pool of applicants. Recruitment is said to be positive in its
approach as it seeks to attract as many candidates as possible. Selection, on the
other hand, is negative in its application in as it seeks to eliminate as many
unqualified applicants as possible in order to identify the right candidates.


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Meaning of Recruitment:
W According to Edwin B. Flippo, 'Recruitment is the process of
searching the candidates for employment and stimulating them to
apply for fobs in the organi:ation`
W It is a linking activity that brings together those offering fobs and
those seeking fobs.

Meaning of Selection:
W Selection involves a series of steps by which the candidates are
screened for choosing the most suitable persons for vacant posts.
W The process of selection leads to employment of persons who
possess the ability and qualifications to perform the fobs which
have fallen vacant in an organi:ation.

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RECRUI1MEA1 AEEDS ARE OF 3 1YPES
W PLAAAED i.e. the needs arising from changes in organi:ation and
retirement policy.
W AA1ICIPA1ED Anticipated needs are those movements in personnel, which
an organi:ation can predict by studying trends in internal and external
environment.
W UAEXPEC1ED Resignation, deaths, accidents, illness give rise to
unexpected needs.

FAC1ORS AFFEC1IAC RECRUI1MEA1
There are a number of factors that affect recruitment. These are broadly classified
into two categories.
1. Internal factors
2. External factors

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IA1ERAAL FAC1ORS
The internal factors also called as 'endogenous factors` are the factors within the
organi:ation that affect recruiting personnel in the organi:ation.
Some of these are.-
Organization Image:
Image of the organi:ation is another factor having its influence on the recruitment
process of the organi:ation. Good image of the organi:ation earned by the number
of overt and covert action by management helps attract potential and complete
candidates. Managerial actions like good public relations, rendering public
service like building roads, public parks, hospitals and schools help earn image or
goodwill for organi:ation. That is why chip companies attract the larger numbers
of application.

Recruiting policy / Personal Policy:
The recruitment policy of the organi:ation i.e. recruiting from internal sources
and external sources also affect the recruitment process. Generally, recruitment
through internal sources is preferred, because own employees know the
organi:ation and they can well fit in to the organi:ation culture.

1ob Attractiveness
Better remuneration and working conditions are considered the characteristics of
good image of a fob. Besides, promotion and carrier development policies of
organi:ation also attract potential candidates.


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Union Interference:
Union interference affects the recruitment process. If Union is in support with
organi:ation that helps organi:ation grow, but if union is in not in the fever of
organi:ation policy it may can harm the growth of an organi:ation.

Size of the organization
The si:e of the organi:ation affects the recruitment process. Larger organi:ation
finds recruitment less problematic than organi:ation with smaller in si:e.

EX1ERAAL FAC1ORS
Like internal factors, there are some factors external to organi:ation, which have
their influence on recruitment process. Some of these are given below.-
Demographic factors
As demographics factors are intimately related to human beings, i.e. employees,
these have profound influence on recruitment process. Demographic factors
include age, sex, Literacy, economics status etc
Labor market
Labor market condition I.e. supply and demand of labor is of particular
importance in affecting recruitment process. E.g. if the demand for specific skill is
high relative to its supply is more than for particular skill, recruitment will be
relatively easier.
Unemployment situation
The rate of unemployment is yet another external factor its influence on the
recruitment process. When the employment rate in an area is high, the recruitment
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process tends to simpler. The reason is not difficult to seek. The number of
application is expectedly very high which makes easier to attract the best-qualified
applications. The reserve is also true. With low rate of unemployment, recruiting
process tend to become difficult.
Labor laws

There are several labor laws and regulations passed by the central and state
governments that govern different type of employment. These cover working
condition, compensation, retirement benefits, safety and health of employee in
industrial undertakings.
The child Labour Act, 1986,
For example prohibits employment of children in certain employments.
Similarly several other acts such as the Employment Exchange Act, 1958, The
Apprentice Act, 1961, the Factory Act, 1948, and The Mines Act, 1952 deal with
recruitment.

Legal consideration
Another external factor is legal consideration with regard to employment
reservation of fobs for schedule tribes, and other backward class (OBC) is the
popular examples of such legal consideration. The supreme court of India has
given its verdict in favor of 50 per cent of fobs and seats. This is so in case
admission in the educational institutions also.




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SOURCES OF RECRUI1MEA1


IA1ERAAL SOURCES:
Present employees:
Promotions and transfer from among the present employees can be good sources
of recruitment. Promotion implies upgrading of an employee to a higher position
carrying higher status, pay and responsibilities. Promotion from among the
present employees is advantageous because the employees promoted are well
acquainted with the organi:ation culture, they get motivated and it is cheaper also.
Promotion from among the person employees also reduces the requirement of fob
training. However, the disadvantage lies in limiting the choice of the few people
and denying hiring of outsiders who may be better qualified and skilled.
Furthermore, promotion from among present employees also results in inbreeding,
which creates frustration among those not promoted. Transfer refers to shifting an
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employee from one fob to another without any change in the position/post, status
and responsibilities. The need for transfer is felt to provide employees a broader
and carried base, which is considered necessary for promotion. ob rotation
involves transfer of employees from one fob to another fob on the lateral basis.

Former employees:
Former employees are another source of applicant for vacancies to be filled up in
the organi:ation. Retired or retrenched employees may be interested to e come
back the company to work on the part time basis. Similarly, some former
employees who had left the organi:ation for any reason, any come back to work.
This source has the advantages of hiring people whose performance is already
known to the organi:ation.

Employee referrals:
This is yet another internal source of recruitment. The existing employees refer to
the family members, friends and relatives to the company potential candidates for
the vacancies to be filled up in the organi:ation. This source serves as the most
effective methods of recruiting people in the organi:ations because refer to those
potential candidates who meet the company requirement known to them from their
own experience. The referred individuals are expected to be similar in type in the
of race and sex, for example, to those who are already working in the organi:ation
Previous applicant / Databank:
This is considered as internal source in the sense that applications from the
potential candidates are already lying with organi:ation. Sometimes the
organi:ation contacts though mail or messengers these applicants to fill up the
vacancies particularly for unskilled or semiskilled fobs.
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EX1ERAAL SOURCES
External sources of recruitment lie outside the organi:ation. These
outnumber internal sources. The main ones are listed as follows.

Employment exchanges:
The national commission labor (1969) observed in its report that in the pre-
independence era, the main source of labor war rural areas surrounding the
industries. Immediately after independence, national employment services were
established to bring employer and fob seeker together. In response to it, the
compulsory notification of vacancies act of 1959 (Commonly called employment
exchange act) was instituted which become operative in 1960.the main functions of
these employment exchanges with the branches in most cities are registration of
fob seeker and tier placement in the notified vacancies. It is obligatory for
employer to inform about the outcome of selection within 15 days to the
employment exchange. Employment exchange is particularly useful in recruiting
blue-collar, white- collar and technical workers.
Placement Agencies (Which is known as Employment agencies):
In addition to the government agencies, there are number of private agencies that
register candidates for employment and furnish a list of suitable candidates from
the data bank as and when sought by the prospective employer. Generally, these
0

agencies select personnel for supervisory and the higher levels. The main function
of these agencies is to invite application and short-list the suitable candidates for
the organi:ation. Of course, the representative of the organi:ation takes the final
decision on selection. The employer organi:ations derive several advantages
through this source. The time saved in this method can be better utili:ed elsewhere
by the organi:ation. As the organi:ational identity remains unknown to the fob
speakers, it, thus, avoid receiving letters and attempts to influence.

Advertisement:
This method of recruitment can be used for fobs like clerical, technical, and
managerial. The higher the position in the organi:ation, the more speciali:ed the
skills or the shorter the supply of that resources in the labour market, the more
widely dispersed the advertisement are likely to be. For instance, the search for a
top executive might include advertisements in a national daily like the Hindu. Some
employers/companies advertise their post by giving them post box number of the
name of some recruiting agency. This is done to particular keep own identity secret
to avoid unnecessary correspondence with the applicants. However the
disadvantage of these blind advertisement, i.e., post box number is that the
potential fob seekers are the hesitant without unknowing the image of the
organi:ation, on the one hand, and the bad image/ reputation that the blind
advertisement have received because of the organi:ations that placed such
advertisements without position lying vacant fust to know supply of labor/ workers
in the labor market, on the other. While preparing advertisement, a lot of care has
to be taken to make it clear and to the point. It must ensure that some self-selection
among applicant take place and only qualified applicant responds the
advertisement copy should be prepared by using a four-point guide called AIDA .
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The letters in the acronym denote that advertisement should attract Attention, gain
Interest, arouse a Desire and result in action.
However, not many organi:ations mention
complete detail about fob positions in there advertisement. What happened is
that ambiguously worded and broad-based advertisements may generate a
lot irrelevant application, which would, by necessity, increasing the cost of
processing them.

Professional Associations
Jery often, recruitment for certain professional and technical positions is
made through professionals association also called Headhunters. Institute of
Engineers, All India Management Association, etc., provide placement service
to the members. The professional associations prepare either list of
fobseekers or publish or sponsor fournal or maga:ines containing
advertisements for their member. It is particularly useful for attracting highly
skilled and professional personnel. However, in India, this is not a very
common practice and those few provide such kind service have not been
able to generating a large number of application.

Campus Recruitment
This is another source of recruitment. Though campus recruitment is a
common phenomenon particularly in the American organi:ations, it has
made rather recently. Of late, some organi:ations such as HLL, HCL, L&T,
Citibank, Cadbury ANZ Grind lays, etc., in India have started visiting
educational and training institute/ campuses for recruitment purposes. Many
Institutes have regular placement cells / offices to serve liaison between the


employer and the students. Te:pur Central University has one Deputy Director
(Training and Placement) for purpose of campus recruitment and placement.
The method of campus recruitment offers certain advantages to the employer
organi:ations. First, the most of the candidates are available at one place,
second, the interviews are arranged at short notice, third, the teaching is
also met, fourth, it gives them opportunity to sell the organi:ation to a
large students body who would be graduating subsequently. The
disadvantages of this of recruitment are that organi:ations have to limit
their selection to only 'entry positions and they interview the candidates
who have similar education and experience, if at all.
Deputation
Another source of recruitment is deputation I.e., sending an employees to
another organi:ation for the short duration of two to three years. This method
of recruitment is practice in a pretty manner, in the Government department
and public sector organi:ation does not have to incurred the initial cast of
induction and training. However, the disadvantages of this of deputation is
that deputation period of two/three year is not enough for the deputed
employee to provide employee to prove his/her mettle, on the one hand, and
develop commitment with organi:ation to become part of it, on the other.
Word-of-mouth:
Some organi:ations in India also practice the 'word-of-mouth method of
recruitment. In this method , the word is passed around the vacancies or
opening in the organi:ation. Another from of word-of-mouth method of
'employee-pinching i.e., the employee working
In another organi:ation is offered by the rival organi:ation. This method is
economic, in terms of both time and money. Some of the organi:ation maintain


a file applications and sent a bio-data by a fob seeker. These serve as a very
handy as when there is vacancy in the organi:ation. The advantage of this method
is no cost involved in recruitment. However, the disadvantages of this method of
recruitment are non- availability of the candidates when needed choice of
candidates is restricted to a too small number.
Raiding or Poaching:
This is another sources of recruitment whereby the rival firm by offering terms
and conditions, try to attract qualified employees to foin them. This raiding is a
common feature in the Indian organi:ations. For instance, service executive of
HMT left to foin Titan Watch Company, so also exodus of pilot from Indian
Airlines to foin the private air taxi operator. In fact, raiding has become challenge
for the human resource manager.
Besides these, walk - ins, contractors, radio and television, acquisitions and
merger, etc., art some other sources of recruitment used by organi:ation.



Head Hunting:
Headhunting refers to the approach of finding and attracting the best experienced
person with the required skill set. Headhunting involves convincing the person to
foin your organi:ation.
Headhunting Process






CHARAC1ERIS1ICS OF RECRUI1MEA1
W It is a positive function.
W It is a pervasive function.
W It is a linking and Networking activity.
W It is a continuous process and not a short task.
PURPOSE & IMPOR1AACE
W Attract and encourage more and more candidates to apply in the
organi:ation.
W Create a talent pool of candidates to enable the selection of best candidates
for the organi:ation.
W Determine present and future requirements of the organi:ation in
confunction with its personnel planning and fob analysis activities.
W Recruitment is the process which links the employers with the employees.
W Increase the pool of fob candidates at minimum cost.
W Help increase the success rate of selection process by decreasing number of
visibly under qualified or overqualified fob applicants.
W Help reduce the probability that fob applicants once recruited and selected
will leave the organi:ation only after a short period of time.
W Meet the organi:ations legal and social obligations regarding the
composition of its workforce.
W Begin identifying and preparing potential fob applicants who will be
appropriate candidates.
W Increase organi:ation and individual effectiveness of various recruiting
techniques and sources for all types of fob applicants







RECEA1 1READS IA RECRUI1MEA1


E-RECRUI1MEA1

Internet as a source of recruitment.

The fob seekers send their applications or curriculum vitae i.e. CJ through
e mail.

Alternatively, fob seekers place their CJs in worldwide web.

OU1SOURCIAC

A company may draw required personnel from outsourcing firms.

The outsourcing firms conduct the initial screening of the candidates
according to the needs of the organi:ation.

In turn, the outsourcing firms charge the organi:ations for their services.

POACHIAC / RAIDIAC

Buying talent rather than developing it is the new mantra of the corporate
world.

Offering attractive pay packages, higher perks and better terms and
conditions.



BODY SHOPPIAC

It is the practice of consultancy firms recruiting information technology
workers in order to contract their services out on short-term bases.

Regarded as legitimate consultancy by both the companies that practice it
and by the people employed, body shopping is disparaged by those IT
services companies in India that assert that they provide real services (such
as software development) rather than the "sham" of merely farming out
professionals to overseas companies

KEY RECRUI1MEA1:

obs that are common in an organi:ation and in a labor market (such as
those of ... Popular HR, Recruiting, Teams, & Training Terms





RECRUIMEA1 PROCESS


As stated earlier, recruitment is the process of location, identifying, and
attracting capable applications for fobs available in an organi:ation.
Accordingly, the recruitment process comprises the following five steps.

P Recruitment planning,

P Strategy Development,

P Searching,

P Screening,

P Evaluation and Control.



Recruitment Planning:

The first involved in the recruitment process is planning. Hire, planning
involves to draft a comprehensive fob specification for the vacant position,
outline its mafor and minor responsibilities, the skills, experience and
qualifications needed, grade and level of pay, starting date, whether
temporary or permanent, and mention of special condition, if any,
attached to the fob to be filled.

Strategy Development:-

Once it is known how many with what qualification of candidates are
required, the next step involved in this regard is to device a suitable
strategy for recruitment the candidates in the organi:ation. The strategic
considerations to be considered may include issues like whether to
prepare the required candidates themselves or hire it from outside, what
type of recruitment method to be used, what geographical area be
considered, for searching the candidates, which source of recruitment to
be practiced, and
what sequence of activities to be followed in recruiting candidates in the
organi:ation.

Searching:-
This step involves attracting fob seeders to the organi:ation. There are broadly
two sources used to attract candidates. These are.
Internal Sources

External Sources.
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Screening:-
Through some view screening as the starting point of selection, we have
considered it as an integral part of recruitment. The reason being the
selection process starts only after the application have been screened
and short listed. Let it be exemplified with an example. In the Universities,
application is invited for filling the post of Professors.
Application received in respond to invitation, i.e. advertisement are screened
and short listed on the basis of eligibility and suitability. Then, only the
screened applicant are invited for seminar presentation and personal
interview.
The selection process starts from here, i.e., seminar presentation or interview.
ob specification is invaluable n screening. Applications are screened against
the qualification, knowledge, skills, abilities, interest and experience mentioned
in the fob specification. Those who do not qualify are straightway eliminated
from the selection process.
The techniques used for screening candidates are vary depending on the source
of supply and method used for recruiting. Preliminary applications, de-
selections tests and screening interviews are common techniques used for
screening the candidates.

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Evaluation and control:-
Given the considerable involved in the recruitment process, its evaluation and
control is, therefore, imperative. The costs generally incurred in a recruitment
process include.
O Salary of recruiters,

O Cost of time spent for preparing fob analysis, advertisement, etc,

O Administrative expenses,

O Cost of outsourcing or overtime while vacancies remain unfilled,

O Cost incurred in recruiting unsuitable candidates.

In view of above, it is necessary for a prudent employed to try answering
certain questions like.
O Whether the recruitment methods are appropriate and valid?
O Whether the recruitment process followed in the organi:ation is effective
at all or not?



ME1HODS OF RECRUI1MEA1
Recruitment methods refer to the means by which an organi:ation reaches to
the potential fob seeker. It is important to mention that the recruitment methods
are different from the resources of recruitment. The mafor line of distinction
between the two is that while the former is the means of establishing links
with the prospective candidates, the latter is location where the prospective
employees are available. Dunn and Stephen have broadly classified methods
of recruitment into three categories. These are,
Direct Method,

Indirect Method,

Third Party Method.

Brief descriptions of these are follows.
Direct Method:
In this method, the representatives of the organi:ations are sent to the
potential candidates in the educational and training institutes. They establish
contacts with the candidates seeking fobs. Person pursuing management,
engineering, medical, etc. programmers are mostly picked up the manner.
Sometimes, some employer firm establishes with professors and solicits
information about student with excellent academic records. Sending the
recruiter to the conventions, seminars, setting up exhibits at fairs and using
mobile office to go to the desired centers are some other methods used
establish direct contact with the fob seekers.


Indirect Method;
Indirect methods include advertisements in the newspaper, on the radio and
television, in professional journals, technical magazines, etc. this method is
useful when
O Organi:ation does not find suitable candidates to be promoted to fill up the
higher posts,
O When the organi:ation want to reach out a vast territory, and
O When organi:ation wants to fill up scientific, professional and technical
posts.
The experience suggests that the higher the position to be filled up in the
organi:ation, or the skill sought by the sophisticated one, the more widely
dispersed advertisement is likely to be used to reach too many suitable
candidates. Sometimes, many organi:ations go for what referred to as blind
advertisement in which only Box No. is given and the identity of the
organi:ation is not disclosed. However, organi:ations with regional or
national repute do not usually use blind advertisements for obvious reasons.

While placing an advertisement to reach to the potential candidates, the
following three points need to borne in mind.
O To visuali:e the type of the applicant one is trying recruit,
O To write out a list of the advantages the fob will offer,
O To decide where to run the advertisement, i.e., newspaper with local, State,
nation-wide and international reach or circulation.



1hird Party Method:
These include the use of private employment agencies, management
consultants, professional bodies pr associations, employee referral or
recommendation, voluntary organi:ation, trade banks, labor contractors, etc.,
to establish contact with the fob seekers.
Now, a question arises, which particular method is to be used to recruit
employee in the organi:ation? The answer to it is that it will depend on the
policy of the particular firm, the position of the labor supply, the government
regulations in this regard and agreements with labor organi:ations.
Notwithstanding, the best recruitment method is to look first within the
organi:ation.







I1 Industry: Recruitment and Salary 1rends 211
2011 The year of high salaries and immense fob opportunities for IT fob
seekers. This is how the current year is viewed by all. But is it truly how it is seen
or the scenario is mere hype? To throw light on this,
Times obs.com invited Mr. Nitin Shah, CMD, Allied Digital Services Limited to
their High Tea Chat Session conducted on Wednesday, 23rd Feb 11. Mr. Shah
answered a lot of candidates queries regarding the recruitment and salary trends
of IT Industry in the year 2011. The chat session was very informative and liked by
candidates and recruiters, alike. Some of the noteworthy quotes of the High Tea
Chat Session are as under
O Paradigm shift in IT industry is going to create huge opportunity in the
industry, but different to what it used to be in past.
O Entrepreneur is not all about risk taking ability. Its about lateral thinking,
coaching, mentoring your people, making them think the way you would. R
you Game???
O Recruitment is every managers everydays fob. It is line function and not a
staff function. Continuous look for sparkling talents internally and externally
is the key to make effective recruitment.
O Updated and fresh database, thinking ahead, good filtering through tests,
immediate feedback to interviews, single window clearance, clarity on Ds
help in shortening the recruitment cycle.
O Today CIO & CTO need not be only technically sound. They have to have
business sense and understanding of business pain areas.

Recruitment 1rends in KPO
Knowledge process outsourcing (KPO) is the next big thing in the outsourcing
sector. By 2010, Indian KPO sector is estimated to have 71 percent share of the
global KPO sector. The KPO industry in India is growing at a tremendous rate.
KPO sector is growing and so are the fob opportunities in this sector. The industry
currently employees more than 26000 employees and are expected to grow to
250,000 employees by 2010 (as estimated by NASSCOM).





The qualities looked for in candidates are.
O Business acumen
O Strong analytical and quantitative skills
O Flair for research, eye for detail
O Understanding of various sectors
O Communication skills
O Leadership capabilities

The final recruitment process in KPOs generally consists of the following rounds.
O Aptitude tests
O Case study rounds
O 2 or 3 interview rounds

Social Aetworking sites :

LinkedIn and other social networking sites are advantageous for employers who
use them for both networking and recruiting. Its not enough anymore to post a fob
vacancy on Monster.com, CareerBuilder.com, Craigslist.com, or other online fob
boards. Employers are spammed with hundreds of resumes from unqualified
applicants when they post on big boards.
The world of recruiting is changing. More and more the online focus rests on
social networking sites and smaller, speciali:ed fob boards. Heres how employers
are using LinkedIn, a popular networking site, for recruiting.

LinkedIn users .
O Develop and expand a personal network of professionals
O Stay in touch with former, valued, trusted colleagues for potential future
employment
O Actively search for candidates among LinkedIn members by searching on
keywords
O Develop a complete, keyword-rich profile for your company on LinkedIn
O Search for potential employees by past or current employer
O Search for employees based on references from recommenders you trust
O Can ask your current employees to activate their networks to reach out to
potential passive candidates for fobs.
O Can use In mail, your internal inbox at LinkedIn
O Respond to questions in the "Answers" section of LinkedIn.
O Can foin groups at LinkedIn.
O For a fee, you can post fobs on LinkedIn and recruit and hire candidates.



Greg Buechler, the founder, and CEO of Off the Hook obs says that he uses
LinkedIn for every search.

"I do advanced searches to identify potential candidates and typically will send In
Mails (rather than trying to get to a person via the introduction route.) If an
individual has an email address posted in their profile, I may also send an email
directly to the person.

"I have filled several fobs over the years and typically they are at the executive
level. I dont see much below a Senior Manager or Director level as being very
effective on LinkedIn. But at Senior Manager, Director, JP, CEO levels, it is
great."

Significance of selection

P Keep the rates of absenteeism and labour turnover low.
P Competent employees show higher efficiency.
P Rate of industrial accidents will be low.
P Higher fob satisfaction.
P High morale.

FAC1ORS 1O BE COASIDERED FOR SELEC1IAC

P Physical Characteristics

P Personal characteristics

P Proficiency or skill and ability

P Competency

P Temperament and character

P Interest


SELEC1IOA PROCEDURE:

There is no standard selection process that can be followed by all the companies in
all the areas. Companies may follow different selection techniques or methods
depending upon the si:e of the company, nature of the business, kind and number
of persons to be employed, government regulations to be followed etc. Thus each
company may follow any one or the possible combinations of methods of selection
in the order convenient or suitable to it.
Steps in scientific selection process:

O ob analysis
O recruitment
O Application form
O Written examination
O Preliminary interview
O Business games
O Selection tests
O Final interview
O Medical examination
O Reference check
O Line manager decision
O ob offer
O Employment




SELEC1IOA IA IADIA

Conditions of labor market largely determine the selection process. As is
well known, we have a strange paradox in our country.
There is large-scale unemployment fuxtaposed with shortage of skilled
labor. No Jacancy boards are seen along with wanted. hung on
factory gates everywhere.
Unemployment prevails among people who are unemployable-individuals
who have acquires university degrees but do not possess any specific skills.
Matriculates, B.A.s, B.Coms, and B.Scs fall into this category.
All the evils associated with selection corruption, favoritism and influence-
are found in hiring these people. Selection is obviously, not systematic and
times bi:arre too.
Selection practices in hiring skilled and managerial personnel are fairly
well defined and systematically practiced.
Particularly in hiring managerial personnel and executives, a lot of
professionalism has come in, thanks to the reali:ation that these individual
are difficult to come by and no effort is too excess to attract them.
Specialist agencies to available whose services are retained for hiring
technical and managerial personnel. Merit and not favorite, obfectivity and
subfectivity will be the criteria for such selections.





0

Difference between recruitment and selection


P Process of searching candidates for vacant fobs and making them apply for
the same.

P It is a positive process

P Aims to attract more and more employees

P Firm notifies through various sources and distributes application form to
candidates.


P Process of selection of right types of candidate and offering them fobs.

P It is a negative process.

P Aim to refect unsuitable candidates and pick up the most suitable for the
vacant fob

P Firm ask the candidate to pass through number of stages.


1

1raining and development
1raining and development is a subsystem of an organi:ation. It ensures that
randomness is reduced and learning or behavioral change takes place in
structured format.

1RADI1IOAAL AAD MODERA APPROACH OF 1RAIAIAC AAD
DEJLOPMEA1

1raditional Approach Most of the organi:ations before never used to believe in
training. They were holding the traditional view that managers are born and not
made. There were also some views that training is a very costly affair and not
worth. Organi:ations used to believe more in executive pinching. But now the
scenario seems to be changing.

The modern approach of training and development is that Indian Organi:ations
have reali:ed the importance of corporate training. Training is now considered as
more of retention tool than a cost. The training system in Indian Industry has been
changed to create a smarter workforce and yield the best results

1RAIAIAC AAD DEJELOPMEA1 OB1EC1IJES
The principal obfective of training and development division is to make sure the
availability of a skilled and willing workforce to an organi:ation. In addition to
that, there are four other obfectives. Individual, Organi:ational, Functional, and
Societal.

Individual Objectives help employees in achieving their personal goals, which in
turn, enhances the individual contribution to an organi:ation.
Organizational Objectives assist the organi:ation with its primary obfective by
bringing individual effectiveness.
Functional Objectives maintain the departments contribution at a level suitable
to the organi:ations needs.
Societal Objectives ensure that an organi:ation is ethically and socially
responsible to the needs and challenges of the societ.



1here are three kinds of training:

P ob Instruction

P Retraining

P Orientation.

1ob Instruction 1raining (1I1): Also called on the fob training.
Consists of 4 steps.
1. Prepare the learner
2. Demonstrate the task
3. Have the worker do the task
4. Follow through. put the worker on the fob, correcting and supporting as
nessicary.

Classroom 1raining Skills
W Be aware of appropriate body language and speech.
W Watch how you talk to employees. Covey respect and appreciation.
W Handle problem behaviors in an effective manner.
W Avoid time wasters.
W Facilitate employee participation and discussion.
W Use visual aids to avoid constantly referring to notes.
Retraining
W Needed when changes are made that affect the fob, employees performance
drops below par, or when the worker has not mastered a particular
technique.
W A positive one-on-one approach to retraining is referred to a coaching.
W Coaching is a two part process.
1. Observation of the employees performance.
2. Conversation between manager and employee focusing on fob
performance.



Orientation:
The pre-fob phase of training
W Introduces each new employee to the fob and the workplace.
W Tells new staff members what they want to know and what the company want
them to know.
W Communicates information give out an employee handbook.
W Creates positive employee attitudes toward the company and the fob.

Performance Appraisal

A performance appraisal, employee appraisal, performance review, or (career)
development discussion is a method by which the fob performance of an employee
is evaluated (generally in terms of quality, quantity, cost, and time) typically by the
corresponding manager or supervisor.

A performance appraisal is a part of guiding and managing career development.
It is the process of obtaining, analy:ing, and recording information about the
relative worth of an employee to the organi:ation. Performance appraisal is an
analysis of an employees recent successes and failures, personal strengths and
weaknesses, and suitability for promotion or further training. It is also the
fudgment of an employees performance in a fob based on considerations other
than productivity alone.

Performance Appraisal Methods
A common approach to assessing performance is to use a numerical or scalar
rating system whereby managers are asked to score an individual against a
number of obfectives/attributes. In some companies, employees receive
assessments from their manager, peers, subordinates, and customers, while also
performing a self assessment this is known as a 360-degree appraisal and forms
good communication patterns.





The most popular methods used in the performance appraisal process include the
following.

O Management by obfectives
O 360-degree appraisal
O Behavioral observation scale
O Behaviorally anchored rating scales
Trait-based systems, which rely on factors such as integrity and conscientiousness,
are also used by businesses but have been replaced primarily by more obfective
and results-oriented methods. The scientific literature on the subfect provides
evidence that assessing employees on factors such as these should be avoided.

1he reasons for this are twofold:
1)Trait-based systems are by definition based on personality traits and as such
may not be related directly to successful fob performance. In addition,
personality dimensions tend to be static, and while an employee can change a
behavior they cannot change their personality. For example, a person who
lacks integrity may stop lying to a manager because they have been caught, but
they still have low integrity and are likely to lie again when the threat of being
caught is gone.

2) Trait-based systems, because they are vague, are more easily influenced by
office politics, causing them to be less reliable as a source of information on an
employees true performance. The vagueness of these instruments allows managers
to assess the employee based upon subfective feelings instead of obfective
observations about how the employee has performed his or her specific duties.
These systems are also more likely to leave a company open to discrimination
claims because a manager can make biased decisions without having to back them
up with specific behavioral information.








1echniques of Performance Appraisal

The various methods and techniques used for Performance appraisal
can be categori:ed as the following traditional and modern methods.


Purpose of Performance Appraisal

Performance Appraisal is being practiced in 90 of the organi:ations worldwide.
Self-appraisal and potential appraisal also form a part of the performance
appraisal processes.

Typically, Performance Appraisal is aimed at.

O To review the performance of the employees over a given period of time.
O To fudge the gap between the actual and the desired performance.
O To help the management in exercising organi:ational control.
O To diagnose the training and development needs of the future.



Provide information to assist in the HR decisions like promotions, transfers
etc. Provide clarity of the expectations and responsibilities of the functions
to be performed by the employees.
To fudge the effectiveness of the other human resource functions of the
organi:ation such as recruitment, selection, training and development.
To reduce the grievances of the employees.
Helps to strengthen the relationship and communication between superior
subordinates and management employees.

According to a recent survey, the percentage of organi:ations (out of the total
organi:ations surveyed i.e. 50) using performance appraisal for the various
purposes are as shown in the diagram below.



The most significant reasons of using Performance appraisal are.

W Making payroll and compensation decisions 80
W Training and development needs 71
W Identifying the gaps in desired and actual performance and its cause 76
W Deciding future goals and course of action 42
W Promotions, demotions and transfers 49
W Other purposes 6 (including fob analysis and providing superior
support, assistance and counseling)




Process of Performance Appraisal

ES1ABLISHIAC PERFORMAACE S1AADARDS

The first step in the process of performance appraisal is the setting up of the
standards which will be used to as the base to compare the actual performance of
the employees. This step requires setting the criteria to fudge the performance of
the employees as successful or unsuccessful and the degrees of their contribution
to the organi:ational goals and obfectives. The standards set should be clear,
easily understandable and in measurable terms. In case the performance of the
employee cannot be measured, great care should be taken to describe the
standards.

COMMUAICA1IAC 1HE S1AADARDS

Once set, it is the responsibility of the management to communicate the standards
to all the employees of the organi:ation.
The employees should be informed and the standards should be clearly explained
to them.
This will help them to understand their roles and to know what exactly is expected
from them. The standards should also be communicated to the appraisers or the
evaluators and if required, the standards can also be modified at this stage itself
according to the relevant feedback from the employees or the evaluators.





MEASURIAC 1HE AC1UAL PERFORMAACE

The most difficult part of the Performance appraisal process is measuring the
actual performance of the employees that is the work done by the employees during
the specified period of time. It is a continuous process which involves monitoring
the performance throughout the year. This stage requires the careful selection of
the appropriate techniques of measurement, taking care that personal bias does
not affect the outcome of the process and providing assistance rather than
interfering in an employees work.

COMPARIAC 1HE AC1UAL WI1H 1HE DESIRED PERFORMAACE
The actual performance is compared with the desired or the standard
performance. The comparison tells the deviations in the performance of the
employees from the standards set. The result can show the actual performance
being more than the desired performance or, the actual performance being less
than the desired performance depicting a negative deviation in the organi:ational
performance. It includes recalling, evaluating and analysis of data related to the
employees performance.

DISCUSSIAC RESUL1S
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening.
The results, the problems and the possible solutions are discussed with the aim of
problem solving and reaching consensus. The feedback should be given with a
positive attitude as this can have an effect on the employees future performance.
The purpose of the meeting should be to solve the problems faced and motivate the
employees to perform better.

DECISIOA MAKIAC
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions, or
the related HR decisions like rewards, promotions, demotions, transfers etc.

Self Appraisal Form
Self appraisal is the self evaluation where the employee himself gives the feedback
or his views and points regarding his performance. The employee himself critically
analyses the performance, his strengths, weaknesses, accomplishments, problems
faced, the training and development needs (if any) etc. The self appraisal form
generally starts with the employee details like.



W The name of the employee
W Designation
W Date of foining
W Date of last appraisal
W Department

Reporting officer
The next section is, commonly, designed to gather the information from the
employee regarding his on-the-fob performance and his responsibilities.
W The current responsibilities held by the employee
W Accomplishments
W Goals for the next appraisal period
W Areas for improvement
W Training requirements felt for the present fob
W Responsibilities the employee would like to add to his current
responsibilities
W Problems faced
W Solutions tried
W Measures taken for personal and professional development
W Best and worst aspects of the fob
W Is the superior supportive

The form also includes a section where the employee rates himself on various
behavioral parameters like.
W Communication skills
W Inter-personal skills
W Problem-solving
W Team work
W Adaptability/Flexibility
W Initiative
W Decision Making
W Leadership
W Maturity

The self appraisal form also includes a section where the employee can quote
examples and incidents to support his ratings and answers.
The self appraisal form generally ends with a subfective section asking for
suggestions and the choice of discussing any other topic that the employee feels the
need to raise and discuss.
0



COMPEASA1IOA MAAACEMEA1
Compensation is the remuneration received by an employee in return for his/her
contribution to the organi:ation. It is an organi:ed practice that involves
balancing the work-employee relation by providing monetary and non-monetary
benefits to employees.

Compensation is an integral part of human resource management which helps in
motivating the employees and improving organi:ational effectiveness.

Components of Compensation System

Compensation systems are designed keeping in minds the strategic goals and
business obfectives. Compensation system is designed on the basis of certain
factors after analy:ing the fob work and responsibilities. Components of a
compensation system are as follows.

1ypes of Compensation

Compensation provided to employees can direct in the form of monetary benefits
and/or indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards
and allowances provided to the employees in return for their services. If the
compensation offered is effectively managed, it contributes to high organi:ational
productivity.
O Direct Compensation
O Indirect Compensation
1


Direct compensation
Direct compensation refers to monetary benefits offered and provided to
employees in return of the services they provide to the organi:ation. The
monetary benefits include basic salary, house rent allowance, conveyance,
leave travel allowance, medical reimbursements, special allowances, bonus,
Pf/Gratuity, etc. They are given at a regular interval at a definite time.

Basic Salary

Salary is the amount received by the employee in lieu of the work done by
him/her for a certain period say a day, a week, a month, etc. It is the money
an employee receives from his/her employer by rendering his/her services.


House Rent Allowance
Organi:ations either provide accommodations to its employees who are from
different state or country or they provide house rent allowances to its
employees. This is done to provide them social security and motivate them to
work.

Conveyance

Organi:ations provide for cab facilities to their employees. Few organi:ations
also provide vehicles and petrol allowances to their employees to motivate
them.




Leave 1ravel Allowance
These allowances are provided to retain the best talent in the organi:ation. The
employees are given allowances to visit any place they wish with their families.
The allowances are scaled as per the position of employee in the organi:ation.

Medical Reimbursement
Organi:ations also look after the health conditions of their employees. The
employees are provided with medi-claims for them and their family members.
These medi-claims include health-insurances and treatment bills
reimbursements.

Bonus
Bonus is paid to the employees during festive seasons to motivate them and
provide them the social security. The bonus amount usually amounts to one
months salary of the employee.

Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions,
travel expenses, reduced interest loans, insurance, club memberships, etc are
provided to employees to provide them social security and motivate them which
improve the organi:ational productivity.

Indirect compensation


Indirect compensation refers to non-monetary benefits offered and provided
to employees in lieu of the services provided by them to the organi:ation. They
include Leave Policy, Overtime Policy, Car policy, Hospitali:ation,
Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday
Homes.

Leave Policy
It is the right of employee to get adequate number of leave while working with
the organi:ation. The organi:ations provide for paid leaves such as, casual
leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc.


Overtime Policy
Employees should be provided with the adequate allowances and facilities
during their overtime, if they happened to do so, such as transport facilities,
overtime pay, etc.


Hospitalization

The employees should be provided allowances to get their regular check-ups,
say at an interval of one year. Even their dependents should be eligible for the
medi-claims that provide them emotional and social security.


Insurance
Organi:ations also provide for accidental insurance and life insurance for
employees. This gives them the emotional security and they feel themselves
valued in the organi:ation.

Leave 1ravel
The employees are provided with leaves and travel allowances to go for holiday
with their families. Some organi:ations arrange for a tour for the employees of
the organi:ation. This is usually done to make the employees stress free.

Retirement Benefits
Organi:ations provide for pension plans and other benefits for their employees
which benefits them after they retire from the organi:ation at the prescribed
age.

Holiday Homes
Organi:ations provide for holiday homes and guest house for their employees
at different locations. These holiday homes are usually located in hill station
and other most wanted holiday spots. The organi:ations make sure that the
employees do not face any kind of difficulties during their stay in the guest
house
.
Flexible 1imings
Organi:ations provide for flexible timings to the employees who cannot come to
work during normal shifts due to their personal problems and valid reasons.



Aeed of Compensation Management
A good compensation package is important to motivate the employees to
increase the organi:ational productivity.
Unless compensation is provided no one will come and work for the
organi:ation. Thus, compensation helps in running an organi:ation
effectively and accomplishing its goals.
Salary is fust a part of the compensation system, the employees have other
psychological and self-actuali:ation needs to fulfill. Thus, compensation
serves the purpose.
The most competitive compensation will help the organi:ation to attract and
sustain the best talent. The compensation package should be as per industry
standards.

Strategic Compensation
Strategic compensation is determining and providing the compensation packages
to the employees that are aligned with the business goals and obfectives. In todays
competitive scenario organi:ations have to take special measures regarding
compensation of the employees so that the organi:ations retain the valuable
employees. The compensation systems have changed from traditional ones to
strategic compensation systems.
IMPOR1AACE OF COMPEASA1IOA
Compensation and Reward system plays vital role in a business organi:ation.
Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been
most important factor, it is impossible to imagine a business process without Men.
Every factor contributes to the process of production/business. It expects return
from the business process such as rent is the return expected by the landlord,
capitalist expects interest and organi:er i.e. entrepreneur expects profits. Similarly
the labour expects wages from the process.


Incentive Management

In todays strategic compensation systems, incentives forms an integral part of the
performance based compensation packages. It is a challenge for organi:ations to
formulate strategies to maintain the internal equity and external equity and
provide the most competitive compensation packages to attract and retain the
talented workforce. For the purpose effective incentives programs are undertaken.
Employees are involved in the process so as to deliver un-biased packages to all
the employees.
The compensation strategies should be effective. All the employees should be
aware of the organi:ational goals and obfectives. The methods used for evaluating
employees performance should be fair enough and easy to understand.

The performance standards established should be achievable. Deserving
employees should receive significant rewards. There should be always scope for
improvements. Employees performance should be evaluated on the basis of their
productivity.



Incentives accounts for employees' high productivity. 1oday
youngsters believe in performance based pay, thus incentives will help
to motivate them to produce more. In the hospitality and retail industry
it is the incentive that accounts for the overall package of the
employee.




Employee Stock Ownership Plans (ESOP)

Employee Stock Ownership Plan (ESOP) is an employee benefit plan. The scheme
provides employees the ownership of stocks in the company. It is one of the profit
sharing plans. Employers have the benefit to use the ESOPs as a tool to fetch loans
from a financial institute. It also provides for tax benefits to the employers.

Organi:ations strategically plan the ESOPs and make arrangements for the
purpose. They make annual contributions in a special trust set up for ESOPs. An
employee is eligible for the ESOPs only after he/she has completed 1000 hours
within a year of service. After completing 10 years of service in an organi:ation or
reaching the age of 55, an employee should be given the opportunity to diversify
his/her share up to 25 of the total

Jalue of ESOPs. Law has also provided an amendment for the employees who
have attained the age of 60 and their ESOP shares are allotted after December 31,
1986. The amendment provides those employees with an option to diversify their
shares up to 50.
Executive Incentives

Organi:ations offer heavy incentives to executives to retain the talented workforce.
The immense competition in the market has forced the organi:ations to offer
lucrative compensation packages. Performance based incentives comes out to be
the only solution for the demand-supply disparity. Who works- receives the
appreciation and who does not works- lacks behind.

Incentives are more effective in the marketing segment as it results in more and
more sales. The business development executives strive for more incentives and in
the effort produce more business and receive heavy perks.






The issues that have come up related to executive incentives are.

O People believe that the incentives offered to the executives are much more
than what the stockholders receive.
O Some people also critici:e the appraisals blaming the time duration given in
achieving the set performance standards.
O Some people also complaint of the un-fair distributions of incentives. They
believe that team members actually work and more appreciation is given to
the team leader.
O Some people also complain that more incentives are given to place the
organi:ations on top of the salary surveys conducted by the respected
research organi:ations.

Incentive Plans

Organi:ations can opt for an effective incentive plans from the various alternatives
available. The organi:ations usually opt for that incentive plans which suits its
requirement the most. As incentives covers the financial matters, organi:ations
need to be very focused in choosing the best alternative that is in alignment to the
business goals and obfectives.






The various incentives plans available are.

Piece Rate
Piece rate incentive is given to the employees based on the number of units
produced. This plan is practiced in the sectors dealing with manufacturing of
products such as engineering automobile, telecommunication, FMCG, etc.

Commissions
Commission is a variable component of compensation package. It is given on the
basis of business generated by the employee. Commission is a pre fixed component
say 5 of the total sales done by the employee. It is practiced in the retail, FMCG
and other sectors in the marketing and sales segment.


Bonuses
Bonuses are given to employees on a pre established goal or criteria. The
organi:ations set policies regarding the bonuses. Usually bonuses are provided
during the festive season.

Merit Raises
Merit raises are given on the basis of predetermined policies. The employees are
given raise on the basis of their performance. The performance standards are set
by the organi:ations much in advance.



Standard Hour Pay
Standard hour plan provides incentives to employees based on the time saved by
them during the fob course. Employees productivity and quality is evaluated with
respect to the set standards.

Maturity Curves
Maturity curve incentive plan considers the experience and performance of an
employee for giving out the incentives. It is practiced in all the industries.
Experience is always given a weight-age as experienced people can produce better
quality results.

Cain Sharing
Gain sharing incentive plans undertake those employees who give outstanding
performances and provide for cost saving measures. Organi:ations believe in
sharing the profits with the employees who are responsible for producing those
results.

Profit Sharing
Profit sharing incentive plans are practiced in retail and FMCG sectors. Other
sectors too implement the plan based on organi:ational policies. It refers to giving
out the share of profits the organi:ation earned to all the employees. Indirectly all
the organi:ations follow the plan by giving out the dividends.
Strategic Incentive Plan
In todays competitive business world of globali:ation organi:ations should
formulate compensation strategies keeping in mind their employees interest. With
more and more players entering the market and high attrition rate, it is a challenge
for organi:ations to retain their talented human resource. The organi:ations
should follow a systematic process to formulate the incentive plans.

Incentive Strategy Formulation Process
O Organi:ations should first understand the need of incentive plans. They
should set clear obfectives as of why incentive plans are formulated, what
are the obfectives.
O These obfectives should be in alignment with organi:ational goals and
obfectives.
0

O Jarious options for individual and group incentive plans should be
explored.
O Benefits and disadvantages of each plan should be considered and from the
various options available one incentive plan should be chosen.
O Using the best incentive plan, compensation strategy should be formulated.



Organi:ations should provide rewards based on employees performance.
Significant monetary and non-monetary rewards should be given. Performance
standards set should be acceptable by the management and the employees. The
methods of appraisal should be fair and known to all the employees. Organi:ations
should see that all the employees receive adequate compensation based on the
internal equity with respect to the industry standards.

Organi:ations face some problems while setting up the incentive plans. Some
employees do not trust the organi:ational policies. They complain that the
performance standards set are not fair. There are also confusions related to the
formulas used to calculate the payout incentives.


1

EMPLOYEE RELA1IOASHIP
Employee Relationship Management is Key towards Achieving Balance


'Employee relationship management` is a term that refers to relationship
development and management between employers and their employees. There are
a lot of different issues that can affect employee satisfaction, which has a direct
result on employee productivity and overall corporate culture. Employee
relationship management can be driven by using employee surveys to directly
engage your employees in the issues that are most important to them.

Some of the core issues that can be controlled with effective employee relationship
management are.

O Communication Open communication both amongst your employees and
between the employees and the management team is imperative. When
employees feel that they cant be heard, they may become frustrated, leading
to lowered employee morale. Lowered morale can result in lowered
productivity and an uncomfortable, or even hostile, work environment.
Employee surveys can give you a thorough understanding of how your
employees feel about communication in your work environment.

O Conflict management When problems arise, it is important to understand
how to handle them. This is a fundamental aspect of employee relationship


management. Sometimes those conflicts occur between employees and
employers. EmployeeSurveys.com can provide you the necessary tools to
help you negotiate and manage conflicts in your business.

O Employee growth Employees that feel they are only required to put in their
hours and go home will do fust that. Employees that feel they can become a
valuable asset based on their work, as well as their ability to provide
important ideas, offer input, and perhaps pursue growth opportunities
within the company, will create a positive atmosphere within the corporate
culture.

Focusing on employee relationship management can have profound effects on how
your business operates. Conducting employee surveys is a useful tool towards
reaching a beneficial level of employee relationship management because they
provide an opportunity for candid feedback and analysis that isnt achievable in
typical business communication.
Employee Retention
P Employee retention is a process in which the employees are encouraged to
remain with the organi:ation for the maximum period of time or until the
completion of the profect.
P Employee retention is beneficial for the organi:ation as well as the
employee.











Employees Retention involves five major things:

\
Compensation Environment Growth




Relationship Support

What makes employee leave?
P ob is not what employee expected.
P No growth opportunities.
P Lack of appreciation.
P Lack of trust and support.
P Stress from overwork.
P Compensation.
P New fob offers.


Employee Retention Strategies
P Hire the right person in right place.
P Empower the employee.
P Make them reali:e that they are valuable for Organi:ation.
P Have faith in them, trust & respect them.
P Provide Information & knowledge.
P Give feedback on performance.
P Recogni:e & appreciate their achievements.
P Keep their morale high.
PCreate healthy environment.


Importance of Employee Retention.
P The cost of turnover.
P Loss of company knowledge.
P Interruption of customer services.
P Turnover leads to more turnovers.
P Goodwill of Company.
P Regaining efficiency.



RECESSIOA MAAACEMEA1

S1RA1ECIC ROLE OF HR DURIAC RECESSIOA


The recession is an opportunity for HR professionals to step and
contribute strategically. The HR Management has to focus on unpopular
innovations during the recession as the role of HR during the recession is to save
money to the organi:ation. The senior management expects all the support
functions to bring innovative ideas and solutions which will lead to stronger
organi:ation, when the next growth era comes.
The point has to be focused by HR management during recession are as follows.
O To optimi:e the manpower strength.
O To take strategic initiatives to increase the productivity and efficiency of the
entire organi:ation.
O To work on compensation benefits.
O Redesign training and development programs.
O Ensure your organi:ations policies and handbooks are up to date.
Remember that an annual review of your employee handbook for
compliance by an experienced professional is highly recommended. Also,
each employee having a copy of the employee handbook is not enough. They
have to be able to read and understand the content. Be sure that you provide
employees a handbook in a language they can read and understand.
O Layoffs are never easy. Ensure you are familiar with your legal
responsibilities in a lay off to minimi:e your organi:ations risk. Be sure that
you have properly defined the criteria you are using to determine who will
be let go.


O Alternative Workweek Schedules and Flexible Scheduling can maximi:e
production and cut-back on overhead costs for organi:ations. Be sure you
follow all of the DLSE rules when deciding if an Alternative Workweek
Schedule or Flexible Scheduling is right for your organi:ation.
O Cutting Pay may be an option to consider to save on todays costs. Is this
really an option for your organi:ation? How are your pay scales as related
to the market? Are you willing to risk losing key employees whose talents
may be needed by other organi:ations, because you chose to reduce their
pay at this time? Remember, you should not cut pay without a recovering
strategy of how you will re-adfust when the economy has turned.
O Downsi:ing does require internal document maintenance for your
organi:ation. As fobs are modified and responsibilities are increased
changes also must be made to your fob descriptions.
O On the other hand the HR Management has to find some innovative
solutions during the recession like,
O To identify the real key employees and to intact them in the organi:ation
O To identify the real top potentials and to strengthen their development
program
The HR Management has to have priorities in mind and the strategic impact of the
HRM Innovations in the recession time. The role of the HR Management is not to
minimi:e the costs for the time being, but to make the organi:ation stronger and
ready for the future growth.











COACLUSIOA

Recruitment and selection are getting very much importance these days in the
organi:ation. It is very critical thing to evaluate the human resources.
It is a systematic procedure that involves many activities. The process includes the
step like HR planning attracting applicant and screening them. It is very important
activity as it provides right people in right place at right time. It is not an easy task
as organi:ations future is depends on this activity. If suitable employees are
selected which are beneficial to the organi:ation it is at safe side but if decision
goes wrong it can be dangerous to the organi:ation. So it is an activity for which
HR department gets very much importance.
Recruitment and selection procedure and its policies changed as per the
organi:ation.
Its importance also gets changed as the organi:ation changed











1OB REQUISI1IOA 1EMPLA1E

Designation.
Number of positions. LocaLlon
Grade/ Cadre.
(Highlight the suitable option)

Department.
Reporting to.
Subordinate/s (If any).
Who are reporting to the fob
incumbent?

Reason for requisition.
(Highlight the suitable option)

ob Description.
(Write a brief summary of the fob.)

Skills required for the fob.
Leadership/ Team orientation/
team building/ presentation/
analysis and problem solving,
creative thinking, communication

Qualification.

Previous Experience.
(Describe nature of experience)

Salary Range.
Suggested source of candidates.
Any Other Remark.
Position Requisitioned by.
Position Approved by.





IA1ERJIEW RESPOASE FORM

To be Iilled Ior all Managerial and other ke positions b the interviewer)

Kindl spare a couple oI minutes to Iill the inIormation asked below. This would help us in
improving the speed as well as the qualit oI hiring.

1) What is the status oI the candidate a) Shortlisted Ior the next round?
b) Final selection
c) Waitlisted
d) Rejected

2) Please list the main reasons wh the candidate is shortlisted/waitlisted/rejected

1)
2)
3)

3) - Current Salar monthl Take home):
- Expectations:

4) An other comments:

Name oI the Interviewer: Date:

Signature:


Thank You,
HR Department




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BIBLIOCRAPHY

Websites:
www.naukrihub.com
www.managementparadise.com
www.citehr.com

Books:

Competency-Based Recruitment and Selection by - Robert Wood
Coaching for Performance. Growing People, Performance and Purpose
By - ohn Whitmore
The HR Scorecard. Linking People, Strategy, and Performance
By - Brian E. Becker






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