Meeting Human Resource Requirements

Unit 2
Concept of HRP (Employment Planning)

• HRP is the starting point of HRM

• Essential part of the acquisition function of HRM

• HRP translates the organization's objectives & plans

into the number of workers needed to meet the
objectives

• The purpose of HRP is to access

– where the organization is,
– where it is going, &
– what implications these assessments have on future
supplies of & demands for human resources
2
Concept of HRP
• It is how organizations assess the future supply of &
demand for human resources

• The number of HR in demand & supply is derived

from environmental & operational analysis

• Determines the numbers & types of employees to

be recruited or phased out of an organization

• Required readjustments as labor market conditions

change

3
Definition of HRP

• Human resource planning is a process by which

– an organization ensures that it has the right number &

kinds of people

– at the right place at the right time

– capable of effectively & efficiently completing those tasks

– that will help the organization achieve its overall strategic

objectives.

Decenzo, Robbins

4
Relationship of HRP to Strategic Planning

• Employment planning must be linked to the

organization’s overall strategy

• HRP must be responsive to the changes both within

& outside the organization

• To ensure that appropriate personnel are available to

meet the requirements set during the strategic
planning process, HRM engage in employment
planning

5
 Dynamic HRP Approach Budgeting
(Annual
Business Planning Process Perspective)
-Budgets
Strategic Planning Operational Planning -Unit/individual
(Long Range) (Middle Range) performances
-Corporate philosophy -Planned programs -Program scheduling &
-Environmental scan -Resource required assignment
-Strengths & constraints -Organizational strategies -Monitoring & control
-Objectives & goals -Plan for entry into new of results
businesses

Action Plans
HRP Process -Staffing authorizations
-Recruitment
Issues Analysis Forecasting Requirements -Promotions & transfers
-Business needs -Staffing levels -Organizational changes
-External factors -Organization & job design -Training & development
-Internal Supply analysis -Available projected resources -Compensation &
-Management benefits
implications -Labor relations
6
Linking Organizational Strategy to Human Resource Planning

7
Characteristics of HRP
• Goal-directed

• Future-oriented

• Quantitative and qualitative

• Systems-oriented (matches demand and supply forecasts to

determine future HR shortages or surpluses)

• Time horizon (short or long term)

• Integral part of corporate planning

• Part of acquisition function

8
Importance of HR planning
• Link business strategy and company operation
– Focuses on achievement of the objectives of the
organization
– HR plans are linked to overall corporate plans
– Facilitates better coordination

• To minimize future risks and uncertainties

– Forecasts the needs of technical and other manpower for
the future
– Reduces the chances of high HR costs
– Matches demand & supply forecasts to determine future
shortages & surpluses of HR

9
• Planning the investment in the development and
utilization of human resources
– Any investment in the HR activities is considered an
investment for the future growth and development
of the organization
– Ensures the organization acquires & retains the
quality & quantity of HRs it requires
– Existing HRs. are properly placed and deployed to
ensure their effective and efficient utilization
– Resources can be used efficiently

• Is proactive
– In attempting to solve any sort of future human
resource problems
10
• Explicit link between the HRP & other organizational
functions
– Such as strategic planning, economic and market
forecasting etc.
– Therefore, it improves the overall planning process

• Promotes the awareness that HR activities are equally imp.

at every level of the organization

• Environmental Adaptation
– Assesses current HR competencies through HR Inventory
– Assesses job requirements through Job Analysis
– Existing HRs can be adapted to changing technological,
political, legal, economic social and cultural forces
through HR planning
– Facilitates change management
11
• Acquisition of Human Resource
– Determines future HR needs
– Facilitates recruitment and selection of employees to fill job
vacancies
– Facilitates succession planning, career planning and development
of employees
– Makes outsourcing decisions for HRs

• Control of Human Resource

– Sets standards for controlling the quantity & quality of employees
– Controls the HR costs as well

• Improved Labour Relation

– Awareness about the importance of HR at all levels of
organization
– Ensures commitment of all levels of managers to HR goals
– Also assists in collective bargaining with labor unions

12
 Human Resource Information System (HRIS)

• A computerized system that assists in the processing of HRM information

• Designed to quickly fulfil the personnel informational needs of the

organization with almost no additional expenditure of resources

• Database system that keeps important information about employees in a

central & accessible location – even information on the global workforce

• Its highly technical features permit an organization to track most

information about an employee & about jobs & retrieve that information
when it is needed

• HRIS is useful for storing employment, training & compensation on each

employee

• Such information can help an organization gain a competitive advantage

13
HRIS contains

• Personal Data: Personal Information,

Department, Location
• Skills Data: Education, training, skills,
experience
• Position Data: Occupational History, Turnover
Rate, Sickness Absenteeism
• Compensation Data: Remuneration History,
Salary, Bonus, Pay Plans
• Job Data: Job description, job specification
14
Use of HRIS in HRP
• The key to successful HRP is information

• HRIS is an integrated approach of acquiring, storing

analyzing & controlling the flow of information
throughout an organization

• Contains programs for tracking applicants

15
Role of HRIS in HRP

• Human Resource Inventory Role

(Includes information about the workers & the skills
they currently possess)

• Human Resource Forecast Role

(Helps in forecasting future HR demand & supply)

• Human Resource Development Role

(Identifying persons for training, development,
promotion etc.)

• Job Analysis Role

(Systematic investigation of a job’s content)
16
 HR Inventory
• HR inventory would be derived from forms completed by
employees & then checked by supervisors & the personnel
department
• Includes information about the workers & the skills they currently
possess
• Such reports would include
– a list of names,
– education & training,
– prior employment,
– current position,
– performance rating,
– salary level,
– languages spoken,
– capabilities,
– specialized skills for every employee in the organization
17
Importance of HRI Report

• Valuable in determining what skills are currently

available in the organization

• Serves as a guide for supporting new organizational

pursuits/altering organization’s strategic direction

• Crucial information for identifying current or future

threats to the organization’s ability to successfully
meet its goals

• Value in HRM activities such as selecting individuals for

training, development, promotion, transfers
18
Succession Planning
• In addition to the computerized HRIS system, some
organizations also generate a separate management
inventory report

• Typically called as the Replacement Chart:

– Covers individuals in the middle management & top
executive positions

• In an effort to facilitate succession planning –

– ensuring that another individual is ready to move into
a position of higher responsibility –
– the replacement chart highlights those positions that
may become vacant in the near future
– due to retirement, promotions, transfers, resignations,
or death etc
19
• Against this list of positions is placed the
individual manager’s skills inventory
– to determine if there is sufficient managerial talent to
cover potential future vacancies

• ‘Readiness chart' gives management an indication

of time frames for succession

• Helps to spot any skill shortages

• Has 3 Steps
– Identifying and analyzing key jobs
– Creating and assessing candidates
– Selecting those who will fill the key positions
20
 An Overview of Job Analysis
• A systematic process of obtaining information about
jobs

• Defines the job's duties, responsibilities &

accountabilities of a job

• Defines the conditions under which a job is performed

• Defines knowledge, skills, abilities that individuals

need to perform the jobs adequately

• Involves the identification & description of what is

happening on the job… accurately and precisely
21
Definition of Job Analysis

• Job analysis is the procedure for determining the

duties & skills requirement of a job and the kind of
person who should be hired for it.
Dessler

• A purposeful, systematic process for collecting

information on the important work-related aspects of
a job.
U.S. Employment Service
22
Nature of Job Analysis
• Work activities
– Collection of information about the job’s actual
work activities
– E.g. cleaning, selling, teaching, painting
– Includes how, why, when the worker performs
each activity

• Human behaviours
– Collection of information about human behaviours
– E.g. sensing, communicating, deciding etc.
23
• Machines, tools, equipment & work aids
– Information regarding tools used, materials
processed, knowledge dealt with
– E.g. Finance, law
– Information regarding services rendered
– E.g. Counselling, repairing

• Performance standards
– In terms of quality & quantity of jobs
– Management use these standards to appraise
employees
24
• Job context
– Information about physical working conditions,
work schedule
– Social context – interaction
– Information regarding incentives

• Human requirements
– Information regarding job’s human requirement
– Job-related knowledge or skills (education,
training)
– Personal attributes (aptitudes, interests,
personality)
25
 Steps in Job Analysis
• Step I
– Decide how you’ll use the information
– Some used for selecting employees/some for comparing jobs for compensation
purposes

• Step II
– Review background information
– Organization charts (distribution of work)
– Process chart (shows the flow of inputs to & outputs from a particular job)

• Step III
– Select representatives to avoid analysis of similar jobs

• Step IV
– Actually analyze the job
– By collecting data on job activities, working conditions etc.

• Step V
– Verify the job analysis information with the worker & his/her immediate supervisor

• Step VI
– Develop a job description (a list of what the job entails) & job specification (what kind
of people to hire for the job)

26
 Uses of Job Analysis
Information

Figure 4–1
31

27
 Uses of Job Analysis Information
• Recruitment and Selection
– Information on what job needs
– What human characteristics are required to perform the activities
– Helps managers to decide what kind of people to recruit & hire

• Compensation
– For estimating the value of each job & its appropriate compensation
– Determine relative worth of each job
– Proper compensation demands accurate assessments of what various jobs entail

• Performance Appraisal
– Compares each employee’s actual performance with his/her performance standards
– Determines the job’s specific activities & performance standards

• Training & Career Development

– Training the job requirements

• Discovering Unassigned Duties

– Helps reveal unassigned duties

• (Equal Employment Opportunity) EEO Compliance

– Helps to show that the selection criteria & job performance are actually related

• Strategic Planning
– Important tool in an organization’s overall strategic planning efforts
28
Job Analysis Methods
1. Observation Method
– Data is gathered by watching employees work

2. Individual Interview Method

– Extensive meeting with an employee to determine what
his/her job needs

3. Group Interview Method

– Meeting with a number of employees to collectively determine
what their jobs need

4. Structured Questionnaire Method

– A specifically designed questionnaire on which employees rate
tasks they perform in their jobs from a long list of possible task
items

5. Technical Conference Method

– A job analysis technique that involves extensive input from the
employee’s supervisor. Specific characteristics ob a job are
obtained from the ‘experts’

6. Diary method/Log
– A job analysis method requiring job incumbents to record their
daily activities
29
Job Analysis Techniques/Tools
Job vs. Person Oriented Analyses
• Person-Oriented
• Job-Oriented
– analysis of tasks – analysis of the skills and
abilities required
necessary to complete
the job • intelligent
– more concrete • self-motivated
– e.g. college student • able to work alone
• attend lectures • able to integrate
diverse information
• take notes
• good long-term
• read text
memory
• write papers
• time-management
• do homework skills
30
 Job Analysis Techniques/Tools

I. Job Focused II. Person Focused

i. Functional Job Analysis i. Position Analysis
(FJA)
Questionnaire (PAQ)
ii. Management Position
Description
Questionnaire ii. Physical Abilities
Analysis (PAA)

31
 Job Analysis Techniques/Tools
I. Job Focused

I. Job Focused
i. Functional Job Analysis (FJA)
• Developed by the U.S. Department of Labor (DOL) in the late 1940s

• Helps find out what is involved in a particular job & elaborates the content of a job

• Describes what one does by having someone observe & interview the employee

• Categorizes jobs (Coding over 30 thousand jobs)

• Information is categorized into 3 general functions that exist in all jobs – data, people
& things

• E.g. An office receptionist

Data People Things
Copy the data Speak to people Handle things
What data are copied, whom the job-holder speaks, & which things are handled

• Identifies performance standards & training requirements

32
 FJA: A Real World Example
Work Functions
Data People Things
0. Synthesizing 0. Mentoring 0. Setting up
1. Coordinating 1. Negotiating 1. Precision work
2. Analyzing 2. Instructing 2. Operating
• Compiling 3. Supervision 3. Driving
• Computing 4. Diverting 4. Manipulating
• Copying 5. Persuading 5. Tending (nurturing)
• Comparing 6. Speaking 6. Feeding
7. Serving 7. Handling

*U.S. Department of Labor, Dictionary of 8. Helping

Occupational Titles, 4th ed. Revised
(Washington, D.C.: Government Printing
Office, 1991), p.xix. 33
 FJA conti…

• Each job is given a code

– E.g. A recruiter might be assigned the code 2, 6, 7
if the job entails analyzing data (2), speaking to
people (6), and handling different things (7)
• See previous table

34
FJA Technique

35
 Job Analysis Techniques/Tools
I. Job Focused
(conti…)

ii. Management Position Description Questionnaire (MPDQ)

• Designed to analyze managerial positions

• A checklist containing 208 job factors related to

responsibilities of managers is used

• After collection of information, individual job

description & specialization will be prepared

• Intended to use across most industrial settings

36
 Job Analysis Techniques/Tools
II. People Focused (conti…)

i. Position Analysis Questionnaire (PAQ)

• Developed at Purdue University

• Structured job analysis questionnaire

• Involves 194 elements that are grouped within 6 major divisions & 27 sections

• Generates job requirement information that is applicable to all types of jobs

• Collects quantifiable data concerning the duties & responsibilities of various

jobs

• Quantitatively compares jobs to one another & assign pay levels for each job

• Applicable more to higher-level, professional jobs (required considerable

experience)

• Too lengthy 37
PAQ Technique

38
 PAQ Example of “Sources of Job Information”

Rate the extent to which each is used by the worker as a source

of information in performing the job:
Extent of Use: N - Does not apply
1 - Very infrequent
2- Occasional
3 - Moderate
4 - Considerable
5 - Very substantial

1.___ Written materials (books, reports, articles).

2.___ Quantitative materials (graphs, tables of numbers)
3.___ Measuring devices (calipers, tire pressure gauges,
thermometers)
4.___ Features of nature (landscapes, geological samples, cloud
formations)
39
 Job Analysis Techniques/Tools
II. People Focused (conti…)

ii. Physical Abilities Analysis (PAA)

• Analyses physical abilities required by job-holders to
perform the jobs

• E.g. strength to lift

40
Purpose of Job Analysis

• Job Descriptions
(next topic)

• Job Specifications
(next topic)

• Job Evaluations
– Provides valuable information for making job
comparisons
– Contributes by specifying the relative value of each
job in the organization
– Relies on data generated from job analysis
41
 Outcomes of Job Analysis
2. Job Specification

• Evolves from job description

• Answers the question, “What human traits & experiences are required to
do this job well?”

• States the minimum acceptable qualifications that the employee must

possess to perform the job successfully

• A list of a job’s “human requirements” i.e. the requisite education, skills,

personality etc.

• For trained person is relatively straightforward; e.g. previous service,

experience, training etc.

• For untrained person is complex; e.g. physical trait, interest, motor skills
etc.
42
Importance of Job Specification
• An important tool in the selection process

• Shows what kind of person to recruit & for what

qualities that person should be tested

43
 An Example of Job Specification
Nepal Futuristic Bank

Position: Training Officer

Level: 7 Service: Administration

Location: Central Office, Human Resource Department

Responsible to: Director, Human Resource Department
Responsible for: Training Personnel Assigned

Job Specification
• Education: MBA with specialization in Human Resource Management
• Training: Short-term training in training methodologies, training of trainers
• Experience: 3 years
• Physical Health: Emotional stability, good health
• Skills: Excellent oral & written communication skills; computer literate; getting
along with people
• Abilities: Traveling in various parts of the country
44
 An Example of Job Specification

Job Title: Office Clerk

Qualifications: Intermediate/12 class, experience in office systems &
procedures
Personal: Speed & efficiency in handling volume of details
Ability to instruct others in clerical jobs
Ability to supervise work of others

Duties
Handle mail & dictate correspondence
Check mail & file important records & correspondence
Summarize & tabulate cost information & records
Receive, take care of & account for petty cash & office funds
Supervise work of general clerks in routine jobs

Promotional opportunities: Advancement to accounting clerk after 2

years
Salary range: Rs. 7000 – 9500 a month

Source: Dev Raj Adhikari

45
 Outcomes of Job Analysis
1. Job Description

• Written statement of what the job holder does, how it is done, why it is
done

• A list of a job’s duties, responsibilities, reporting relationships, working

conditions, supervisory responsibilities

• No standard format but includes:

– Job title (title of the job, wage, benefits)

– Summary (brief statement describing the purpose of the job & outputs expected)

– Equipment (tools, equipment, information required)

– Environment (working conditions, location)

– Activities (job duties, responsibilities, social interactions)

46
Importance of Job Description
– Describes the job to the potential candidates

– Guides newly hired employees in what they are

specifically expected to do

– Provide a point of comparison in the actual

activities & the stated duties of the employee

47
 E.g. Format of a Job Description (contents)
1. Job identification
– (Several types of information like title, date, etc.)

2. Job summary
– (General nature of the job)

3. Responsibilities and duties

– (List of the job’s major responsibilities & duties)

4. Authority of incumbent

5. Standards of performance
– (Standards of performance; lists standards the employee is expected to
achieve under each job description’s main duties)

6. Working conditions

7. Job specifications
48
 An example of Job Description

Job Title: Computer Operator

Date: July 1, 2000 Office: Lazimpat, Kathmandu
Written by: M. K. Pokhrel Department: MIS
Approved by: R. S. Shrestha Grade/Level: 7
Name of Immediate Supervisor: D. B. Rana

Summary
• Operates digital computer & peripheral equipment under general
supervision. Performs other assignments as required:
• Follows specific technical & scheduling directives
• Operates digital computer & associated peripheral equipment
• Reviews & analyses data inputs
• Maintains logs & records
Source: Dev Raj Adhikari
49
 An Example of Job Description
Restaurant Manager
Job Summary:
Plan, organize, direct, and coordinate the workers and resources of the restaurant for the
efficient, well-prepared, and profitable service of food and beverages.
Tasks and Duties:
1. Work with chefs and other personnel to plan menus that are flavorful and popular
with customers. Work with chefs for efficient provisioning and purchasing of
supplies. Estimate food and beverage costs. Supervise portion control and
quantities of preparation to minimize waste. Perform frequent checks to ensure
consistent high quality of preparation and service.
2. Supervise operation of bar to maximize profitability, minimize legal liability, and
conform to alcoholic beverage regulations.
3. Work with other management personnel to plan marketing, advertising, and any
special restaurant functions.
4. Direct hiring, training, and scheduling of food service personnel.
5. Investigate and resolve complaints concerning food quality and service.
6. Enforce sanitary practices for food handling, general cleanliness, and maintenance
of kitchen and dining areas.
7. Comply with all health and safety regulations.
8. Review and monitor, with bookkeeper or other financial personnel, expenditures
to ensure that they conform to budget limitations. Work to improve performance.
9. Perform other duties as assigned by management.
Qualifications:
1. Bachelor of Science degree in hotel/restaurant management is desirable. A
combination of practical experience and education will be considered as an
alternate.
2. Good organizational skills for dealing with diverse duties and staff.
3. Pleasant, polite manner for dealing with public as well as staff.
Reports to: Department:
Supervises: Division:
Date: Approved:

Source (revised from): http://www2.hrnext.com/Article.cfm/Nav/2.4.0.0.6719.0

50
 Sample Job
Description,
Pearson
Education

Source: Courtesy of HR Department,

Pearson Education.

51
Attracting a high performing workforce
- recruitment and selection,
- internal and external recruitment,
- testing and selecting employees - selection
tests and tools

52
Concept of Recruitment
• Important part of the acquisition component of HRM

• Related to both HRP and selection

• Represents the first contact between organizations &

prospective employees

• Process of finding right people for right positions at the right

time

• Process by which a job vacancy is identified and potential

employees are notified

• The nature of the recruitment process is regulated and subject

to employment law

• Main forms of recruitment through advertising in newspapers,

magazines, trade papers and internal vacancy lists.
53
 Definition

Recruitment is the process of discovering

potential candidates for actual or anticipated
organizational vacancies.
Robbins/Decenzo

The process of locating, identifying, and

attracting capable applicants
Robbins/Decenzo

54
Core versus Contingency personnel
Core personnel
– Employees hired in the “traditional” manner
– Considered permanent employees
– Included in the organization’s payroll

Contingency personnel
– Employed by a supplier agency, and are “loaned” to
the organization
– Not included in the organization’s payroll
– Workers’ salaries and benefits are paid by the
supplier

55
Recruiting Goal

• To provide information that will attract a

significant pool of qualified candidates and
discourage unqualified ones from applying.

56
Recruitment Process

• Integration of Corporate Planning and HR

Planning
• Job Analysis and Job Design
• Legal Consideration
• Locating Sources and Methods
• Developing a Pool of Qualified Candidates

57
Developing Recruitment Policies

• Country Specific Rules and Regulations

• Pattern of Ownership and Influence
(public/private)
• Corporate Policies
• Managerial Role
• Union Representation
• Communication and Consultation with
Employees

58
Three Stages of Recruitment and Selection

1. Defining requirements
• Preparing job descriptions and specifications
• deciding terms & conditions of employment

2. Attracting candidates
• Reviewing & evaluating alternative sources of applicants,
• inside & outside the company,
• advertising, using agencies & consultants

3. Selecting candidates
• Selecting applications, interviewing, testing, assessing
candidates, assessment centres, offering employment,
obtaining references
• preparing contracts of employment
59
 Factors Affecting Recruitment Practices

External Environmental Internal Environmental

Influences Influences

• Government requirements, • Strategy

laws • Goals
• The union • Job Design (skill
• Economic requirements)
conditions/domestic and • Organizational culture
international
• Nature of the task
• Labor market conditions
• Work group
• Competitiveness
• Leader’s style and
• Location of the organization experience
• Time/cost constraints 60
Recruitment Sources
I. The Internal Search
• A promotion-from-within concept

• Sources
– Promotions
– Transfers
– Job Rotations
– Rehires & recall

61
Method of Internal Candidates
• Job Posting
(Publicizing an open job to employees and listing it's attributes like
qualifications, pay rate etc.)

• Personnel Records

• Skills banks
(List of current employees with specific skills)

• Hiring Employees - the Second Time Around

(Rehiring former employees who'd left voluntarily for better jobs)

• Succession Planning

• Data Banks/Skill Inventories /Replacement Charts

• Supervisor Recommendations 62
 Advantages of Internal Recruitment
• Knows a candidate's strengths and weaknesses

• Good public relations

• Boosts morale when employees see promotions as rewards for loyalty

• Encourages ambitious workers

• Lesser error as performance already a witness

• Lesser costing

• Not much orientation required

• Good training device for developing middle & top level managers

• More commitment to the company

• Lesser orientation and training 63

 Disadvantages of Internal Recruitment
• Can be dysfunctional if internal workers are inferior compared to outside

• Tiring & not much change to workers

• Could fail to bring in "new blood“

• Infighting among rival candidates, decrease in morale

• Vacancy information itself could be hidden if information flow is traditional

• Limited choices, opportunities

• Promotes favouritism

• Discontent unsuccessful applicants

• "One of the gang" insider attitude 64

 Methods of External Recruitment

• Referrals ("You've got friends, we want to meet them")

• Walk-ins/ Unsolicited applicants (Supply of stockpiled applicants)
• Advertising: (Radio, TV, newspapers and journals, internet both want ads
and blind adverts)
• Employment Agencies
• Executive Recruiters/professional organizations
• Schools, colleges and universities
• Internet
• Labor Unions
• Immigrants
• Job Fairs

65
 Advantages of External Recruitment

• Large pool of qualified HR

• Organizational revamp (new ideas, skills etc.)

• Balanced HR mix

• Fairness in recruitment

66
Disadvantages of External Recruitment

• High cost

• Poor employee morale

• Adaptability problems

• Wrong selection

67
 Alternative to Recruitment
• Overtime

• Employee leasing (outsourcing)

(individuals hired by one firm and sent to work in another for a specific
time)

• Temporary employment
(meets short-term HRM fluctuation needs)

• Independent contractors
(consultants to do specific work at a location on or off the company's
premises)

68
• Overtime
– Organizations avoid the cost of recruiting and
having additional employees

– Employees earn additional income

– Potential problems include fatigue, higher

accident rates, and increased absenteeism

– Continuous overtime often results in higher labor

costs and reduced productivity

69
• Outsourcing
– Sometimes called “staff sourcing”

– Involves paying a fee to a leasing company or professional

employer organization (PEO) that handles payroll, benefits,
and routine HRM functions

– Especially attractive to small and midsize firms that can’t

afford a full-service HR department

– Can save 15 to 30 percent of benefit costs

– Exercise care when choosing a leasing company; many are

financially unstable

70
• Temporary Employment
– One of the most noticeable effects of the downsizing epidemic and
labor shortages of the past two decades

– “Just-in-time” employees staff all types of jobs (professional, technical,

and executive positions)

• Major advantages of using temporary workers:

– Relatively low labor costs
– Easily accessible source of experience labor
– Flexibility
• The cost advantage stems from the fact that temporary workers do not
receive:
– Fringe benefits
– Training
– A compensation and career plan

• Temporary workers do not know the culture or work flow of the firm 71
 Selection - Concept
• Process of gathering information about job applicants in
order
– to determine who should be hired &
– who should be rejected

• Applicants shortlisted –
most suitable candidates selected

• Selection process –
varies according to organisation

• Should be impartial & undertaken in an objective way

– there should not be any mistake in selecting the right 72
person to fit the right job
Definition

• Process of gathering information for the purposes of

evaluating and deciding who should be hired, under
legal guidelines, for the short and long-term
interests of the individual and the organization
Schmitt & Schneider

• Selection activities predict which job applicant will

be successful if hired.
Decenzo and Robbins

73
 Selection Process

Step 1
Preliminary screening: application blank & interview

Step 2
Employment interview

Step 3 Step 4
Employment tests Background & reference checks

Step 5
Selection decision

Step 6
Physical Examination 74
 The Selection Process
Step 1
Preliminary screening: application blank & interview

Initial Screening
• Screening interview:
– Describe the job in detail so the candidates can
consider if they are really serious about applying

• Sharing job description information frequently

– encourages the unqualified or marginally
qualified to voluntarily withdraw

75
 The Selection Process (conti…)
Step 1
Preliminary screening: application blank & interview
Completing the Application Form
• Company-specific employment form used to generate specific
information the company wants

• May require only the applicant’s name, address, telephone number etc.

• Reduces the number of applicants that need to be interviewed

• Weighted Application Forms:

– Uses relevant applicant information to determine the likelihood of job
success

– Individual form items such as years of schooling, months on the last

job, salary data for previous jobs, etc.

– Helps recruiters to differentiate between potentially successful and

unsuccessful job performers
76
 The Selection Process (conti…)
Step 2
Employment interview

Employment Interviews
• A selection device used to obtain in-depth information about a candidate

• Designed to probe areas not easily addressed by the application form

• Applicant may be interviewed by HRM interviewers, senior managers, potential

supervisors etc.

• Impression Management:
– Influencing performance evaluations by portraying an image desired by the appraiser

• Behavior Interview:
– Observing job candidates not only for what they say but for how they behave

• Realistic Job Preview (RJP):

– A selection device that allows job candidates to learn negative as well as positive
information about the job and organization…

– e.g. brochures, films, plant tours, work sampling, etc.

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 The Selection Process (conti…)
Step 3
Employment Tests

Employment Tests
• Since the mid-1980s, employment tests have
been used

• Hundreds of test can serve as selections

• E.g. intelligence test, spatial ability, perception

skills, motor ability, personality traits etc.

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 The Selection Process (conti…)
Step 4
Background & Reference Checks

Background Investigation/Reference Checks

• The process of verifying information job candidates provide

• Obtaining needed information may be difficult, especially when there may be a

question about invading privacy

• Internal investigation:
– Task of questioning former employers, personal references etc.

• External investigation:
– Involves using a reference-checking firm

• Qualified privilege:
– The ability for organizations to speak candidly to one another about employees

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 The Selection Process (conti…)
Step 5
Selection Decision

• Individuals who perform successfully in the

preceding steps are now considered eligible to
receive the employment offer

• Who makes the final employment depends on

several factors

• A tentative job offer that becomes permanent after

certain conditions are met
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 The Selection Process (conti…)
Step 6
Physical Examination

Medical/Physical Examination
• An examination to determine an applicant’s
physical fitness for essential job performance

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 The Selection Process (conti…)

Now it’s up to the Candidate

• Individuals appear to move toward matching
their work with their personality

• An individual’s perception of the company’s

attractiveness

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 Selection Tests
1. Ability Tests
• Determine ability for maximum job performance
• Generally objective type with a correct answer

a. Aptitude Test or Potential Ability Tests

• Also called as cognitive ability test
• Determines a candidates’ potential learning capacity
• Can detect peculiarity or defects in a person's sensory or
intellectual capacity
• It focuses attention on particular types of talents such as learning,
reasoning, mechanical or musical aptitude
• E.g. GMAT, Mechanical Aptitude Test, etc.
• Measures the potential of individuals to perform given the
responsibility
• These tests are or diff. types: mental, mechanical, psychomotor
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b. Achievement Tests or Proficiency Tests
• Measure past achievement & performance
• Used to predict what an individual can perform
based on his current knowledge or past experience
• Measures the skill/ knowledge which is acquired as a
result of a training program & on the job experience
• E.g. Job Knowledge Test, Work Sample Test, BBA
finals

c. Intelligence Tests
• Measure general ability for intellectual performance
• IQ is measured by calculating MA and CA

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2. Personality Tests
• Measures personal characteristics of candidates
• E.g. emotional maturity, conformity,
extro/introversion etc.
• Provides clues to an individual's value system, EI,
motivation other personal characteristics
• These tests help to find prospect of job success or
failure of the candidate in the future
• Predicts inter-personal capacity & success for
supervisory or managerial jobs
• Types: Projective tests, objectives tests, situation
test

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3. Situational Tests
• They abstract real life situation about the job
• Evaluating a candidate in a situation that is similar to some
aspects of the job to be done in the future, if the candidate
is selected

4. Psychomotor Tests
• There are many jobs which needs psychomotor abilities to
perform
• This refers to the ability of an employee to work in given
facilities using his or her physical movements properly
• Measures a person's ability to do a specific job
• Determines motor, mental ability involving muscular
movement, control & coordination
• Used for repetitive jobs (e.g. assembly line)
• E.g. a bank teller needs skill to run computer smoothly
• E.g. finger dexterity, speed of arm movement etc.
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5. Vocational Tests
• Measures a candidate’s preferences in different types of
jobs

6. Honesty Tests
• They ensure accuracy of information provided by the
candidate
• E.g. Polygraph test (lie detector)

7. Test Batteries
• Are used to measure a candidate’s cognitive abilities
• Verbal, numerical, spatial, intelligence, form
perceptions, clerical perceptions, finger dexterity etc.
• This test helps to fit candidate with a wide array of jobs.
E.g. Gendel Aptitude Test Battery (GATB)
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Classification & Differential Placement
• Placement
– The process of placing the right man on the right
job
– To be placed on a position where there is full use
of his strengths
– Match between the requirements of the job &
qualities of the employees

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• Classification means to group positions according
to the duties and responsibilities and to assign a
class title

• A class
– is one or more positions sufficiently similar in respect
to duties and responsibilities
– that the same title may be used to designate each
position in the group,
– the same salary may be equitably applied,
– the same qualifications required, and
– the same criteria used to select qualified employees

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• Classification of Jobs
– Independent Jobs: The activities of one worker
has little concern on the activities of other
workers. Placement is easy

– Sequential Jobs: Placement is moderately difficult.

E.g. Assembly line

– Pooled jobs: High interdependence among diff.

job holders. Placement is most difficult

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• Classification of Employees
As most jobs are dependent & independent jobs are
becoming rarer,
– Use of assessment-classification model
• Contains details about employee's skills, interests,
performance, biographical details
• Employees are placed in specific subgroups matching
the "characteristics of the individuals with those of
the subgroups"
• Jobs are also categorized into sub-groups – each
having identical features
• Match between the subgroup profiles & job-family
profiles
• Individuals are placed in specific jobs within the job
family 91