UNIT II - THE CONCEPT OF BEST FIT

EMPLOYEE

HUMAN RESOURCE PLANNING

CONCEPT OF HUMAN RESOURCE PLANNING

Human resource planning is important for helping both organizations and employees to
prepare for the future. The basic goal of human resource planning is to predict the future
and based on these predictions, implement programmes to avoid anticipated problems.
Very briefly humans resource planning is the process of examining an organization„s or
individual„s future human resource needs for instance, what types of skills will be needed
for jobs of the future compared to future human resource capabilities and developing
human resource policies and practices to address potential problems for example,
implementing training programmes to avoid skill deficiencies.

DEFINITIONS:

 Manpower planning (HRP) is the process- including forecasting, developing,

implementing, and controlling – by which a firm ensures that it has the right
number of people and right kind of people, at the right place at the right time,
doing things for which they are economically most suitable.
 Human resource planning is the process by which the organization ensures that it
has the right number and right kind of people, at the right place, at the right time ,
capable of effectively and efficiently completing those tasks that will help the
organization to accomplish its overall objectives – Decenzo and Robbins

IMPORTANCE OF HUMAN RESOURE PLANNING

Human resource planning is a primary function that precedes all the other HRM function
without which no other function can be undertaken in any meaningful way.

1.Defining future personnel need: Planning is significant as it help define future

personnel need and this becomes the basis of recruiting and developing personnel.In its
absence there is likelihood of mismatch between personnel needed and personnel
available. Lack of systematic HRP has resulted into large scale overstaffing in many
public sector organizations

2. Part of Strategic Planning: HR management has become an integral part of strategic

management process. All activities of HR – planning, hiring, training, remunerating and
maintaining – must be merged with strategic management. HRP can become part of
strategic planning at two ends. At the beginning of strategic planning, HRP provides a
set of inputs into the strategic planning process in terms of deciding whether the types

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and number of people are available to pursue a given strategy. At the end of strategic
planning process, HRP is relevant in terms of implementation concerns

3. International Strategies: International expansion strategies depend on HRP. The

department‟s ability to fill key jobs with foreign nationals and the reassignment of
employees from within or across national borders is a major challenge facing
international business. With the growing trend towards global operation the need for HRP
will grow as well the need to integrate HRP in the company‟s strategic plans.

4. Coping with Changes: Every organization is trying to compete on the basis of

technology and managerial talents which have resulted into global talent war. In this war
only those companies will survive which has adopted a formal ,meticulous planning.
HRP helps in creating a balance in such a situation as trough this manpower needs ans
availability can be identified much in advance.

5. Providing base for developing talents: Jobs are becoming more and more knowledge
oriented, which has resulted in to changed profile of man power. Because of increase
emphasis on knowledge there is a shortage of certain category of personnel and there is
frequent movement of personnel from one organization to another. The replacement cost
of those personnel is high. The organizations can avoid such costs by taking HRP.

6. Resistance to change and move: There is growing resistance among employees to

change and move. There is also a growing emphasis on self-evaluation and on the
evaluation of loyalty and dedication to the organization. All these changes are making it
more difficult for the organization to assume that it can move its employees aroung
anywhere and anytime it wants, thus realizing the importance nad necessity of planning
ahead.

7. Unite the perspectives of line and staff managers: HRP helps unite the perspectives
of both line as well as staff managers. Although HRP is initiated and executed by the
corporate HR staff, it requires the input and cooperation of all managers within an
organization. No one knows better the needs of a particular unit or department than an
individual manager responsible for the area.

8. Forcing top management to involve in HRM: Systematic HRP forces top

management of an organization to participate actively in total HRM. If there is an active
involvement it helps in achieving organizational effectiveness.

BENEFITS OF HRP:
 Upper management will have a better view of the HR dimensions of business
decision
 Personnel costs may be less because the management can anticipate imbalances
before they become unmanageable and expensive
 More time is provided to locate talent
 Better opportunities exist to include women and minority groups in future growth
plans
 Better planning of assignments to develop managers can be done
 Major and successful demands on local labour markets can be made
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 HUMAN RESOURCE PLANNING PROCESS
HRP effectively involves forecasting personnel needs, assessing personnel supply and
matching demand – supply factors through personnel related programmes. The HR
planning process is influenced by overall organizational objectives and environment of
business.
Organisational
objectives, plans and
policies

Human resource
planning

Forecasting needs for Forecasting supply for

human resource human resource

Identification of HR
gaps

Shortage of human
Surplus human resource resource

Action plans for

bridging gap
1. ORGANISATIONAL OBJECTIVES PLANS AND POLICIES

The starting point of any activity in an organization is its objectives which generate
various plans and policies which provide direction for future course of action. Various
sub systems of the organization devise their own plans and programmes. Each
subsystem‟s plans and programmes are linked to organization‟s plans and policies. While
going through the process of HRP, organizational policies with effective utilization of
human resources should be identified and incorporated into the planning process.
Following questions are important in this regard:
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  Are vacancies to be filled by promotions from within or by hiring from outside?
 How do the training and development objectives interface with the HRP
objectives?
 How to enrich employee‟s job? Should the routine and boring jobs to be
continued or eliminated?
 How to downsize the organisation to make it more competitive?
 To what extent production and operations be automated?
 How to ensure continuous availability of adaptive and flexible workforce?

2. HUMAN RESOURCE PLANNING

Taking direction from organisational objectives and plans and the above policy
considerations, human resource plan is prepared . The planning process consists of two
major activities – forecasting needs for human resources and forecasting supply of human
resources. HR forecasting is the process of estimating demand for and supply of HR in
an organization. Demand forecasting is a process of determining future needs for HR in
terms of quantity and quality. It is done to meet the future personnel requirements of the
organization to achieve the desired level of output. Both these type of forecasting aim at
finding out the additional requirement of personnel – both in terms of quantity and
quality at a future date.

 Forecasting demand for Human Resources – It is the process of estimating the

uture human resource requirement of right quality and right number. Analysis of
employment trends; replacement needs of employees ,productivity of employees;
growth and expansion of organisation, absenteeism and labour turnover are the
relevant factors for human resourced forecasting. Job analysis and forecasting
about the quality of potential human resource facilitates demand forecasting.
 Forecasting Supply of Human Resources – It is the process of estimating
availability of human resource followed after demand for testing of human
resource. For forecasting supply of human resource internal and external sources
supply need to be considered. Internal supply of human resource may be available
by way of transfers, promotions, retired employees & recall of laid-off employees,
etc. Source of external supply of human resource is availability of labour force in
the market and new recruitment.
3. IDENTIFICATION OF HUMAN RESOURCE GAP

Forecasting needs for human resources and forecasting supply of human resources both
taken together help to identify gap between human resources needed and their
availability. This gap may be in two forms – either there may be surplus human resources
or there may be shortage of human resources.

4. ACTION PLANS

Once the manpower gaps are identified , plans are prepared to bridge these gaps. The
human resource plan depends on whether there is deficit or surplus in the organization
Various action plans are devised to bridge the human resource gap. Plans to meet the
surplus manpower may be redeployed in other departments . If there is surplus of human
resources action plans may be devised to prune their size through layoff, voluntary
retirement etc. People may be also asked to quit voluntarily through golden handshake. If
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there is shortage of human resources action plans may be taken to recruit additional
personnel through recruitment, selection, transfer, promotion and training plans. Realistic
plans for the procurement and development of manpower after considering the micro and
macro environment which affect the manpower objectives of the organisation.

5.MONITORING, CONTROL AND FEEDBACK:

It mainly involves implementation of the human resource action plan. Human resources
are allocated according to the requirements, and inventories are updated over a period.
The plan is monitored strictly to identify the deficiencies and remove it. Comparison
between the human resource plan and its actual implementation is done to ensure the
appropriate action and the availability of the required number of employees for various
jobs.

FORECASTING DEMAND FOR HUMAN RESOURCES

 Demand Forecasting is the process of estimating the quantity and quality of
people required to meet future needs of the organization.
 Demand forecasting must consider several factors – both internal as well as
external
 External factors include competition , economic climate, laws and regulatory
bodies, changes in technology and social factors
 Internal factors include budget constraints , production levels, new products and
services, organizational structure and employee separations
 Quantify the jobs necessary for producing a given number of goods, or offering a
given amount of services
 Determine what staff mix is desirable in the future
 Assess appropriate staffing levels in different parts of the organisation so as to
avoid unnecessary costs
 Prevent shortages of people
 Monitoring compliance with legal requirements

TECHNIQUES FOR FORECASTING HUMAN RESOURCE NEEDS

1. Managerial judgment methods

Managerial judgement technique is very common technique of demand forecasting. This

approach is applied by small as well as large scale organisations. This technique involves
two types of approaches i.e. 'bottom-up approach' and 'top-down approach'. Under the
'bottom-up approach', Under the Top-down approach'
 Top-down approach – Under this approach top management forecasts the human
resource requirement for the entire organisation and various departments. This
information is supplied to various departmental heads for their review and approval.
 Bottom-down approach – Under this approach line mangers send their departmental
requirement of human resources to top management. Top management ultimately
forecasts the human resource requirement for the overall organisation on the basis of
proposals of departmental heads.
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 However, a combination of both the approaches i.e. 'Participative Approach' should be
applied for demand forecasting. Under this approach, top management and departmental
heads meet and decide about the future human resource requirement. So, demand of
human resources can be forecasted with unanimity under this approach.

2. Delphi technique

This technique is used in group decision making process. A small group designs
questionnaire about the problem under the study which is sent to various experts related
to the field. These experts fill-up the questionnaire independently without having any
interaction among themselves . The filled-up questionnaire are analysed and if there is
any divergence in opinion, a revised questionnaire is prepared and sent to larger group of
experts. This exercise is repeated until some consensus is obtained. This technique is
quite useful where the problem cannot be solved by using analytical techniques but its
solution requires subjective judgments on a collective basis

Delphi technique can be used for forecasting human resource needs in two forms
 It can be used to know the trends for changing job profile .
 Used to solicit views of experts in different functional areas of an organization
about the changing the profile of personnel in their respective departments .
3. Work study Techniques

Work study technique is based on the volume operation and work efficiency of personnel.
Volume of operation is derived from the organizational plan documents and increase
/decrease in operation can be measured. This technique is suitable where the estimated
work-load is easily measureable. Under this method, estimated total production and
activities for a specific future period are predicted. This information is translated into
number of man-hours required to produce per units taking into consideration the
capability of the workforce. Past-experience of the management can help in translating
the work-loads into number of man-hours required.Work efficiency can be studies by
time and motion study which specifies standard output per unit of time.

4.Ratio-Trend Analysis

The emphasis is on the ratio between production/sales level and direct operativesratio
between direct operatives and other personnel. These ratios are worked out for a number
of years based on the past records of the organisation and future trends are projected on
these ratios. Thus various ratios and their likely trends become the basis for calculating
the human resource needs

5.Statistical and mathematical models

There are certain statistical and mathematical models which maybe used for forecasting
human resource needs.

 Regression Analysis: It is used to measure the changes in a variable(dependent)

as a result of the change in other variable(independent variable).When regression
analysis is used in forecasting human resource needs, the dependent variable is
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 human resource needs and independent variable are business activity, human
resource productivity and business activity-personnel ratio. Equations are
established between dependent and independent variables to forecast human
resource needs at a particular future period.

 Econometric model

It expresses the relationship among different variables, both dependent and

independent and based on these relationships , economic growth of an economic
system is predicted. A notable feature of an econometric model is that it treats a
particular variable which is independent at one level, as dependent at the next
level. In the process of forecasting human resource needs an econometric model
helps in understand the nature of relationships among different variables at
different levels.

FORECASTING OF HUMAN RESOURCE SUPPLY

Personnel demand analysis provides the manager with the means of estimating the
number and kind of employees that will be required. The next logical step for the
management is to determine whether it will be able to procure the required number and
kind of personnel and the sources of such procurement. This information is provided by
supply forecasting. It measures the number of people likely to be available from within
and outside an organization. In assessing the availability of human resource from internal
sources an organization has to consider inflow and outflow of personnel during the plan
period, and type of personnel that would be available.

Human Resource supply forecasting is the process of estimating availability of human

resource followed after demand for testing of human resource. For forecasting supply of
human resource we need to consider internal and external supply. Internal supply of
human resource available by way of transfers, promotions, retired employees & recall of
laid-off employees, etc. Source of external supply of human resource is availability of
labour force in the market and new recruitment. External supply of human resource
depends on some factors mentioned below. They are

 Supply and demand of jobs.

 literacy rate of nation.
 rate of population
 industry and expected growth rate and levels
 technological development.
 compensation system based on education, experience, skill and age.

The supply analysis covers:

1. Existing human resources
2. Internal sources of supply
3. External sources of supply

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1.EXISTING HUMAN RESOURCES

Analysis of present employees is greatly facilitated by HR audits. HR audit summarise each

employee‟s skills and responsibilities. The audits of non-managers are called skills inventories
and those of managers are called management inventories.

 Human resource flow model – It is also called Markov chain Analysis or

Markovian model. An organisation can be considered as a system of flows -
both inflows and outflows
Sources of inflows - transfers, promotion
Sources of inflows -resignation, discharge, retirement, promotions, demotions
etc
 Human resource Inventory- Cataloguing their present and future potentials.
The process of preparing human resource inventory involves 4 steps

1. determination of personnel whose inventory is to be prepared

2. cataloguing of factual information of each individual
3. systematic and detailed appraisal of these individuals
4. detailed study of those individuals who have potentials for developments

Skills Inventories:
 Personal Data
 Skills
 Special qualifications
 Salary and job history
 Company data
 Capacity of individual
 Special preference of individual

Management Inventories:
 Work History
 Strengths
 Weaknesses
 Promotion Potential
 Career goals
 Personal data
 Number and type of employees supervised
 Total budget managed
 Previous management duties

2. INTERNAL SOURCES OF SUPPLY

The techniques generally used for this purpose are:


Human resource flow model - An organization can be considered as a
system of flows - both inflows and outflows
 Sources of inflows - transfers, promotion
 Sources of inflows - resignation, discharge, retirement, promotions, demotions etc

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  Turnover Rate – It is the traditional and simple method of forecasting
internal supply. Stated mathematically, the turnover rate is

No. of separations during one year x 100

Average no. of employees during the year

 Conditions of work and absenteeism

Changes in conditions of work such as normal weekly working hours , overtime
policies, the length and time of holidays, retirement policy, the policy for
employing part timers and the shift system need to be assessed.

Absenteeism is understood as unauthorized absence from work. Absenteeism is

calculated as

No. of persons – days lost

Ave. no of persons x no. of working days

 Productivity level

Any change in productivity would affect the number of persons required per unit
of output. Increase in productivity will reduce the requirement and decrease in it
will have the opposite effect.

3. EXTERNAL SOURCES OF SUPPLY

In addition to internal sources of supply, the organisation need to look for prospective
employees from external sources. External sources are important for specific reasons.

 New blood and new enterprise will be available

 Organisation need to replenish lost personnel
 Organizational growth and diversification create the needs to use
external sources to obtain additional number and type of employees

SUCCESSION ANALYSIS

Once a company has forecast the demand for labour, it needs an indication of the firm's
labour supply. Determining the internal labour supply calls for a detailed analysis of how
many people are currently in various job categories or have specific skills within the
organization. The planner then modifies this analysis to reflect changes expected in the
near future as a result of retirements, promotions, transfers, voluntary turnover, and
terminations.
Demand forecasting helps in determining the number and type of personnel/human
resources required in future. The next step in human resource planning is forecasting
supply of human resources. The purpose of supply forecasting is to determine the size
and quality of present and potential human resources available from within and outside
the organisation to meet the future demand of human resources. Supply forecast is the
estimate of the number and kind of potential personnel that could be available to the
organisation.
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 TALENT ACQUISITION

Talent acquisition deals with the strategies, tactics and processes for identifying,
recruiting and retaining the human resources a company needs. It includes
developing, implementing and evaluating programs for sourcing, recruiting, hiring and
orienting. Talent acquisition is defined as an ongoing HR process to acquire skilled
workers in alignment with a company’s broader business goals, regardless of
immediate vacancies.

Talent acquisition is a strategy used in recruitment that focuses on finding, attracting,

hiring, growing, and retaining top talents inside an organization. In other words, it is a
planned and structured complex of actions the HR department must do to get the best
employees.

Talent acquisition is defined as the process of developing a full-fledged strategy to attract

and recruit top talent. It‟s important to note that talent acquisition and recruitment aren‟t
synonymous. Recruitment is just one aspect of talent acquisition, that has to do with the
selection and hiring of a candidate to fit a job vacancy. Talent acquisition, on the other
hand, has a far broader ambit. The definition of talent acquisition spans employer
branding, recruitment marketing, the process of recruitment itself, which includes
candidate relationship management, an on boarding plan that involves succession
planning and talent development, and continuous strategic alignment

An important step in a talent acquisition strategy is to assess the current and future
workforce needs. Factors considered in workforce planning include:
 Government influence
 Economic conditions
 Business competition
 Workforce demographics
The principal phases of talent acquisition are sourcing, attracting, interviewing,
recruiting, and conducting employee onboarding.

RECRUITMENT
According to Werther and Davis “Recruitment is the process of finding and attaracting
capable applicants for employment .The process begins when new recruits are sought
and ends when their applications are submitted .The result is a pool of applicants from
which new employees are selected”

Flippo's definition: "It is a process of searching for prospective employees and

stimulating and encouraging them to apply for jobs in an organization."

Factors affecting Recruitment:

 The size of the organization.

 The employment conditions in the community where the organization is located.
 The effects of past recruiting efforts which show the organization's ability to
locate and retain the good performing people.
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  Working conditions, salary and benefit packages offered by the organization.
 Rate of growth of the organization.
 The future expansion and production programs.
 Cultural, economic and legal factors.
However these factors may be divided specifically as Internal and External factors.

Internal Factors:
 Recruitment policy of the organization
 Human resource planning strategy of the company
 Size of the organization and number of people employed
 Cost involved in recruiting employees
 Growth and expansion plans of the organization

External Factors:

 Supply and demand of specific skills in the labour market.

 Political and legal factors like reservations of jobs for specific sections of society
etc
 The job seekers image perception of the company.

THE RECRUITMENT PROCESS

IDENTIFYING THE VACANCY

A job vacancy may arise for a number of reasons, such as when:

 an employee retires;
 an employee leaves to join another business;
 an employee is sacked;
 somebody is promoted leaving a vacancy for their old job;
 an increase in sales means more staff are needed;
 new technology is introduced that means that employees with new skills are
required.

At this point the employer will decide how the vacancy should be filled, for example,
whether the new employee should be full- or part-time. The business will also have to
decide whether to recruit internally (where the job is filled by a person already working
for the company), or externally (where a new employee to the business is employed).

JOB DESCRIPTION

JD can be useful for deciding the scope of the work, advertising the job, and clarifying
what applicants will have to do in the job. It can also help to assess a new recruit's
performance and determine training needs.

A job description should include:

 the job title

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  the position in the company, including the job title of the person to whom the
employee will report and of those who will report to them, if any
 the location of the job
 a summary of the general nature and objectives of the job
 a list of the main duties or tasks of the employee

THE PERSON SPECIFICATION

A person specification is not a legal requirement but will be useful when writing a job
advertisement and defining the qualities you are looking for in a candidate. Include the
knowledge, experience and skills you would like them to have, separating those which
are essential for the job from those which are desirable.

ADVERTISE

Vacancies will be advertised as widely as needed to attract a reasonable field of suitable

applicants and to enhance the diversity of the workforce. Vacancies are advertised as
ongoing wherever possible, or fixed term where they meet the Department's criteria.

MANAGING THE RESPONSE

From the various response received by advertising the vacancy in various media, the
resumes of the candidates are segregated according to experience, position applied,
qualification and other criteria specified in the candidates profile.

SHORTLISTING OF PROFILE:

It is cutting through the pile of applicants until the Hr have a selection of candidates that
they would like to request for interview. If there are a stipulated a level of qualification,
skill or experience in the job advertisement, the Hr would reject some candidates who do
not fit the criteria.
REFERENCE CHECK

Contacting previous employers of a job applicant to determine his or her job history.
Reference check may also include checking with school(s) or college(s) attended by the
applicant to verify educational qualifications.

ARRANGE INTERVIEW

The following process is followed

 pre-arranging the time and place for an interview
 sending confirmation letters
 booking interview rooms
 making reminder telephone calls the day before the interview

CONDUCT THE INTERVIEW

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The short-listed candidates are called for the interview which may be face-to-face or
telephonic interview. Various level of interview are conducted to test the knowledge,
skill, aptitude, problem solving skill of the candidates.

Interviews can be:

 unstructured, by holding a normal conversation with follow-up questions
at the time of the interview
 semi-structured, by using a set of standardized questions
 in-depth, by using only a topic or discussion guide

DECISION MAKING

Decision regarding the selection of the candidate is made after the interview. The
decision is made by the selection committee.

CONVEY THE DECISION

Selected candidates are intimated regarding their appointment.

APPOINTMENT ACTION

Necessary action involved for the candidate to join in the organization are made.

SOURCES OF RECRUITMENT
(A) External Recruitment - External sources of recruitment have to be solicited from
outside the organization. External sources are external to a concern. But it involves lot of
time and money. The external sources of recruitment include - Employment at factory
gate, advertisements, employment exchanges, employment agencies, educational
institutes, labour contractors, recommendations etc.

 Gate hiring or Recruitment at factory gate - This a source of external

recruitment in which the applications for vacancies are presented on bulletin
boards outside the Factory or at the Gate. It is usually followed by factories to fill
up vacancies at lower level. Large enterprises usually plays a notice on notice
board specifying details of job available. There are people who keep on soliciting
jobs from one place to another. These applicants are called as unsolicited
applicants. These types of workers apply on their own for their job.
 Advertisement - It is an external source which has got an important place in
recruitment procedure. Enterprise advertises vacancies through newspaper, trade
journals & magazines. It is convienient & economical method. The biggest
advantage of advertisement is that it covers a wide area of market and scattered
applicants can get information from advertisements. Medium used is Newspapers
and Television.
 Employment Exchanges - There are certain Employment exchanges which are
run by government. Most of the government undertakings and concerns employ
people through such exchanges. Now-a-days recruitment in government agencies
has become compulsory through employment exchange.
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  Employment Agencies - There are certain professional organizations which look
towards recruitment and employment of people, i.e. these private agencies run by
private individuals supply required manpower to needy concerns.
 Educational Institutions - There are certain professional Institutions which
serves as an external source for recruiting fresh graduates from these institutes.
This kind of recruitment done through such educational institutions, is called as
Campus Recruitment. They have special recruitment cells which helps in
providing jobs to fresh candidates.
 Recommendations - There are certain people who have experience in a particular
area. They enjoy goodwill and a stand in the company. There are certain
vacancies which are filled by recommendations of such people. The biggest
drawback of this source is that the company has to rely totally on such people
which can later on prove to be inefficient.
 Labour Contractors - Workers are recruited through labour contractors who are
themselves employees of organisation. These are the specialist people who supply
manpower to the Factory or Manufacturing plants. Through these contractors,
workers are appointed on contract basis, i.e. for a particular time period. The
disadvantage of this system is that if contractor leaves the organisation, all the
workers employed through him will also leave. Recruitment through this source
has been banned for public sector units. However, this practice is still common in
case of construction industry.
 Advertisement:- Walk-ins:- On occasions people drop in without any
announcement of vacancy to find out if jobs are available. A waiting list of such
visitors may be prepared & they may be screened to fill the vacancies whenever
they arise.
 Management Consultants:- Help to recruit technical, professional & managerial
personnel for example accountants, engineers. They specialise in middle level &
top level executive placements. They maintain data bank of persons with different
qualifications & skills & even advertise jobs on behalf their clients to recruit right
type of personnel.
 Recommendations:- Friends & relative of present employees are also good
source of recruitment. Many concern prefer such candidates as they generally
stand surety for new recruits and their background is partly known & type of
preliminary screening take place.
 Telecasting:- The practice of telecasting of vacant posts over T.V. is gaining
importance these days. Special programmes like „Job Watch‟, „Youth Pulse‟,
„Employment News‟ etc, over T.V. have become quite popular in recruitment for
various types of jobs. The use of T.V. as a source of recruitment is less as
compared to other sources because it is an expensive medium.

Merits:-

 Wide Options:- It brings large number of applicants as it permits enterprise to

have free hands in making selection.
 Fresh talent:- Enterprise can expect to get fresh talented candidates from outside
which leads to infusion of New Blood & new ideas in to enterprises.
 Element of competition:- This is a healthy feature from point of view of
enterprise as internal candidates have to compete with outside candidate.
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Limitations:-

 Lengthy process:- It takes long time. The business has to notify vacancies & wait
for applications to initiate selection process.
 Costly process:- A lot of money has to be spent on advertisement & processing
of applications.
 Uncertain Response:- The candidates from outside may not be suitable for
enterprise. There is no guarantee that enterprise will be able to attract right kinds
of people from external sources.
 Dissatisfaction among Existing staff:- They may feel that their chances of
promotion may be reduced.

(B) Internal Recruitment – It is a recruitment which takes place within the concern or
organization. Internal sources of recruitment are readily available to an organization.
Internal sources are primarily three - Transfers, promotions and Re-employment of ex-
employees.
Internal recruitment may lead to increase in employee‟s productivity as their motivation
level increases. It also saves time, money and efforts. But a drawback of internal
recruitment is that it refrains the organization from new blood. Also, not all the
manpower requirements can be met through internal recruitment. Hiring from outside has
to be done.
 Promotion:- Means shifting an employee to a higher position carrying greater
pay, status & responsibilities Various positions in an organisation are usually
filled up by promotion of existing employee on basis of merit or seniority or
combination of both.
 Transfer:- Refers to change in job assignment which may involve promotion,
demotion or no change in terms of responsibility & status. Transfer may be either
temporary or permanent depending upon necessities of filling jobs. Transfer
generally involves no significant change in pay, status & responsibility of
employees.
 Re-employment of ex-employees - Re-employment of ex-employees is one of
the internal sources of recruitment in which employees can be invited and
appointed to fill vacancies in the concern. There are situations when ex-
employees provide unsolicited applications also.

Advantages:-

 Employees are motivated to improve their performance.

 Industrial peace prevails in enterprise because of promotional avenues.
 It is cheaper source as compared to external source.
 Transfer of job is a tool of training employees to prepare them for higher job.
 It promotes loyalty among employees as they feel secured on account of chances
of advancement.

Limitations:-

 The scope of fresh talent is reduced, when vacancies are filled through internal
promotions.
15
  The spirit of competition among employees may be hampered.
 Frequent transfer of employees may reduce overall productivity of organisation.
 There may be chances of conflict in fighting among employees who aspire for
promotion to available vacancies as those not promoted may become unhappy &
there efficiency may decline.

SELECTION

CONCEPT OF SELECTION

 Selection can be conceptualized in terms of either choosing the fit candidates , or

rejecting the unfit candidates or a combination of both
 In Indian context, there are more candidates who are rejected than those who are
selected in most of the selection processes. Therefore, it is sometimes called as a
negative process in contrast to the positive programme of recruitment.
 Selection is the process of differentiating between applicants in order to identify
those with a greater likelihood of success in a job - Stone

DIFFERENCE BETWEEN RECRUITMENT AND SELECTION

 Recruitment is the process of searching for prospective employees and then

stimulating them to apply for jobs in the organisation. It is often termed to be
positive in that it stimulates people to apply for jobs to increase the hiring ratio.
Selection, on the other hand tends to be negative because it rejects a good number
of those who apply leaving only the best to be hired
 Recruitment differs from selection in terms of its process. Recruitments adopts the
process of creating application pool as large as possible and therefore it is known
as a positive process. Selection adopts the process through which more and more
candidates are rejected and fewer candidates are selected and sometimes not a
single candidate is selected. Therefore it is termed as a negative process or
rejection process
 Recruitment and Selection differ in the techniques they adopt. Recruitment
techniques are not very intensive requiring high skills. But in Selection, highly
specialized techniques are involved. In the selection process only personnel with
specific skills like expertise in using selection tests, conducting interviews etc are
involved

SELECTION PROCESS

VARIOUS STEPS INVOLVED IN THE SELECTION PROCESS

Employee Selection is the process of putting right men on right job. It is a procedure of
matching organizational requirements with the skills and qualifications of people.
Effective selection can be done only when there is effective matching. By selecting best
candidate for the required job, the organization will get quality performance of
mployees. Moreover, organization will face less of absenteeism and employee turnover
problems. By selecting right candidate for the required job, organization will also save
16
time and money. Proper screening of candidates takes place during selection procedure.
All the potential candidates who apply for the given job are tested.

But selection must be differentiated from recruitment, though these are two phases of
employment process. Recruitment is considered to be a positive process as it motivates
more of candidates to apply for the job. It creates a pool of applicants. It is just sourcing
of data. While selection is a negative process as the inappropriate candidates are rejected
here. Recruitment precedes selection in staffing process. Selection involves choosing the
best candidate with best abilities, skills and knowledge for the required job.

1.APPLICATION POOL: Application pool built up through recruitment process is the

base for selection process. The basic objective at the recruitment level is to attract as
much worthwhile applications as possible so that there are more options at the selection
stage.

2.SCREENING OF APPLICATIONS: The real process of selection begins with the

screening of applications. Prospective employees have to fill up some sort of application
forms. These forms have variety of information about the applicants like their personal
bio-data, achievements, experience etc. Such information is to screen the applicants who
are found to be qualified for the consideration of employment. The information may also
be used to keep permanent records of those who are selected. Based on the screening of
applications, only those candidates are called for further process of selection that are
found to be meeting the job standards of the organisation.

Screening of application forms

Selection Tests

Selection Interviews

Checking of References

Physical Examination

17
 Approval by Appropriate Authority

Final Selection

Employment Contract

3.SELECTION TESTS: Many organisations hold different kinds of selection tests to

know more about the candidates or to reject the candidates who cannot be called for
interview. Selection tests normally supplement the information provided in the
application forms. Such forms may contain factual information about candidates.
Selection tests may provide information about the attitude, interest and personality which
cannot be known by application forms.

4.INTERVIEW: Selection tests are normally followed by a personal interview of the

candidates. The basic idea here is to find the overall suitability of the candidates for the
jobs. It also provides opportunity to give relevant information about the organisation to
the candidates. In many cases, interviews of preliminary nature are conducted before the
selection tests.

5.CHECKING OF REFERENCES: Many organisations ask the candidates to provide the

names of referees from whom more information about the candidates can be solicited.
Such information may be related to character, working etc. the usual referees may be
previous employers, persons associated with the educational institution from where the
candidates have received the education or other persons of prominence who are aware of
the candidate‟s behaviour and ability.

6.PHYSICAL EXAMINATION: Physical examination is carried out to ascertain the

physical standards and fitness of prospective employees. The practice of physical
examination varies a great deal in terms of both coverage and timing. While many
organisations do not carry physical examination at all others carry it out on a
comprehensive basis. Some organisations will only have a general check up of applicants
to find out the major physical problems which will come on the way of effective
discharge of duties.

7.APPROVAL BY APPROPRIATE AUTHORITY : On the basis of the above steps,

suitable candidates are recommended for selection by the selection committee or
personnel department. Though such a committee or personnel department may have
authority to select the candidates finally, often it has the staff authority to recommend the
candidates to recommend the candidates for selection to the appropriate authority. For eg;
18
for top level management board of directors may be the approving authority; for lower
levels functional heads may be the approving authority.

8.FINAL SELECTION : After the approval of the competent authority, the selection is
final and the candidate concerned may be informed accordingly. Sometimes more than
one name may be suggested by the selection committee and approved by the competent
authority for a single position.

9.EMPLOYMENT CONTRACT: The relationship between the organisation and its

employees is a contractual one and from this point of view anyone in employment in the
organisation and draws salary is an employee irrespective of the position held by the
person. The implication of contractual relationship is that both employee and organisation
must enter into employment contract indicating the various terms and conditions of the
employment
10.EVALUATION: Evaluation helps in ensuring the effectiveness of the selection
programme may be undertaken at two stages: during the process and after the process.
During the process, evaluation tries to measure the reliability and validity of various steps
used in the selection process. Evaluation after the process is over, measures the outcomes
of the selection process in terms of performance of those who are selected.

DIFFERENT KINDS OF TESTS USED IN SELECTION PROCESS

 Aptitude Tests: These tests measure whether an individual has the capacity or
latent ability to learn a given job if given adequate training. Aptitudes can be
divided into general and mental ability or intelligence and specific aptitude such
as mechanical, clerical, manipulative capacity etc. Aptitude test is used to
measure human performance characteristics related to the possible development
of proficiency on specific jobs. These basic characteristics can be thought of as
aptitudes. As such aptitude tests measures the latent or potential characteristics to
do something provided proper training and environment are provided to the
individuals. This test is more valid when the applicants have no experience or
very little experience along the lines of jobs
 Ability Tests: The general meaning of ability is to have quality or being able to
do a work. Ability of a person is his capability to engage in some behaviour.
Ability of a person comprises intelligence, skills and aptitudes. The various kinds
are
 Mechanical Ability - ability to visualize how parts fit together into a whole;
comprehension of mechanical relationships
 Motor Coordination Ability - ability to move the body effectively to perform
physical tasks
 Intellectual ability - general intelligence or reasoning; verbal and numerical ability
 Creative Ability - innovative and artistic ability; aesthetic judgement

 Mechanical Aptitude Tests: These tests measure the capacities of spatial

visualization, perceptual speed and knowledge of mechanical matter. These tests
are useful for selecting apprentices, skilled, mechanical employees, technicians
etc.
Psychomotor Tests: These tests measure abilities like manual dexterity, motor
19
 ability and eye-hand coordination of candidates. These tests are useful to select
semi-skilled workers and workers for repetitive operations like packing, watch
assembly.
Clerical Aptitude Tests: Measure specific capacities involved in office work.
Items of this test include spelling, computation, comprehension, copying, word
measuring etc.
 Intelligence Tests: These tests in general measure intelligence quotient of a
candidates. In detail these tests measure capacity for comprehension, reasoning,
word fluency, verbal comprehension, numbers, memory and space .Though these
tests are accepted as useful ones, they are criticized against deprived sections of
the community. Further, it is also criticized that these tests may prove to be too
dull as a selection device.

IQ = Mental Age x 100

Actual Age

It means that the IQ is derived by converting actual age into mental age and
multiplying it by 100 in order to facilitate comparison. Higher is the figure, higher
is the level of intelligence. Intelligence tests is usually designed on the basis of
age groups.

 Interest Test: These tests are inventories of the likes and dislikes of candidates in
relation to work, job, occupations, hobbies and recreational activities. The
purposes of this test is to find out whether a candidate is interested or disinterested
in the job for which he is a candidate and to find out in which area of the job
range/occupation the candidate is interested. The assumption of this test is that
there is a high correlation between the interest of a candidate in a job and job
success.
 Achievement Tests: It is also called performance test or trade test. Achievement
is concerned with what one has accomplished. When candidates claim that they
have done certain things and know these, the achievement test may be conducted
to find out how well the person know these. A candidate‟s knowledge can be
measured through his answers to certain questions or his performance at a
practical test. (eg) typing test to measure speed, accuracy and efficiency. Such
tests are administered at the operative level or junior management level.
 Situational Test: This test evaluates a candidate in a similar real life situation. In
this test the candidates is asked either to cope with the situation or solve critical
situations of the job.

 Group Discussion: This test administered through group discussion approach

to solve a problem under which candidates are observed in the areas of
initiating, leading, proposing valuable ideas, conciliating skills, oral
communicating skills, coordinating and concluding skills.
 In Basket: Situational test is administered through an In Basket.The candidate,
in this test, is supplied with actual letters, telephone and telegraphic message,
reports and requirements by various officers of the organization, adequate
information about the job and organization. The candidates is asked to take

20
 decisions on various items based on the in basket information regarding
requirements in the memoranda.

 Personality Tests: Personality is the pre-disposition to react to a given situation

in a particular manner. Personality tests is essentially a projective test as it
essentially projects the personality of an individual who may be employed by the
organisation. There are a number of tests that are aimed at assessing personality.
The most widely used tests are Thematic apperception Tests and Myers- Briggs
Type Indicator

 Thematic Apperception Tests – The Thematic Apperception Test (TAT)

is a projective psychological test. Proponents of the technique assert that
subjects' responses, in the narratives people make up about ambiguous
pictures of people, reveal their underlying motives, concerns, and the way
they see the social world. In this test 31 cards are used. Thirty cards have
semi-structured pictures while the last card is left blank. On the blank card
the description of the person whose personality is to be assessed is printed.
The personality assessor shows each card to the subject. The subject is
then asked to narrate the picture. On the basis of narration of pictures the
personality of the subject is assessed.

 Myers Briggs Type Indicator(MBTI) - MBTI is an introspective self-

report questionnaire designed to indicate psychological preferences in how
people perceive the world and make decisions. MTBI usually contains 100
questions . Each question has two alternative answers and both the
answers appear to be relevant for a given situation. The subject has to
mark the alternative which is more relevant to him. After the completion
of the questionnaire, it is processed to identify the type of personality of
the subjectThe underlying assumption of the MBTI is that all individuals
have specific preferences based on which they construe experiences, and
these preferences underlie one‟s interests, needs, values, and motivation."

VALIDATION OF TESTS

Tests have become quite common means for determining the suitability of the candidates
for employment. The assumption in using tests is that those who score above the cut off
point are suitable for employment while those scoring below this point are unsuitable for
employment. This assumption is valid only when tests themselves have validity.

 Content Validity - It is the degree to which a test measures the knowledge, skills
and abilities used on the job. All candidates are given the same test so applicants
can be properly compared (eg) typing test
 Construct Validity - It is the degree to which attest measures a particular trait
related to successful performance on the job. A trait is usually abstract in nature
such as intelligence or emotion and is called construct.
 Criterion - Related Validity - It is the degree to which a particular test
accurately predicts the level of performance or important elements of work

21
 behavior. This validity shows the relationship between some predictor and a
criterion of job success.
 Predictive Validity - It is the degree to which there is a relationship between the
test score and some future desirable behaviour on the job. Predictive Validity
validates a test by using prospective applicants as a study group.
 Concurrent Validity - An alternative to predictive validity is the concurrent
validity which is the degree to which a test score is related to the job behaviour
measure that is available at the same time.
 Synthetic Validity - It involves taking parts of several similar jobs rather than
one job to validate a test. For eg, a typing ability test might be validated against
typing performance not only for typing clerks but other personnel involved in
typing work in an organisation.

RELIABILITY IN TESTS:

Tests must have reliability , that is they must have consistency in measurement whatever
they measure. This implies that an applicant‟s performance on any given tests should
produce same score each time the test is administered to him. To measure reliability of a
test , test - retest method, alternative form method, and split halves method can be
applied.

(i) TEST-RETEST METHOD - in this method a test is administered to an

individual at two different time periods and the scores obtained are compared.
If the scores at two different points of time are similar then the test is
considered to be reliable.
(ii) ALTERNATIVE FORM METHOD - In this method two similar forms of a
test are administered to an individual. Their scores are recorded and compared
with each other. If the two scores are similar, then the test is considered to be
reliable.
(iii) SPLIT-HALVES METHOD - in this method, a test is divided into two similar
and equal parts. The scores of both the parts are compared. If the scores of
both the parts are similar then the test is treated as reliable.

ADVANTAGES OF SELECTION TESTS:

 Selection tests are standardized and unbiased methods of soliciting information

about the prospective employees
 Selection tests can be used to weed out the large number of candidates who may
not be considered for employment in the organisation. Selection tests provide the
cut-off point above which candidates can be called for interview.
 The tests cover the qualities and potentials of prospective employees which
cannot be known by other methods including personal interview.

LIMITATIONS OF SELECTION TESTS

 Selection tests cannot make a hundred percent prediction of an individual‟s on the

job success. They just reveal that those who have scored above the cut off point
will be more successful than those who score below the cut off point.
22
  The tests are suitable when there are large numbers of candidates for limited
number of jobs in the organisation. If the number of candidates is small the test is
not economical.

TYPES OF INTERVIEW

INTERVIEWS

It is the most widely used method of selection. It may be combined with various types of
selection tests or it can be used exclusively and other relevant information is sought from
the application form. Selection interview also known as employment interview is a
formal in-depth conversation converted to evaluate the acceptability of the candidate for
employment. Its aim is to disclose those aspects of an applicant which may not be
disclosed by other methods

OBJECTIVES OF INTERVIEW

Though interview is primarily meant for soliciting maximum possible information about
the candidate, it may be used for other purposes too during the interview process.

 Interview is the only method of direct contact between the candidates and the
employer in which the latter can see a candidate in action - how he looks, his
overall physical features, his wearing etc.
 Many of the information pertaining to motivational factors, emotional maturity,
attitudes and values and other job related factors are assessed during the
interview.
 Interview can be used for giving the information about the organisation, its
policies, nature of job to be performed, salary and other benefits to be offered etc.
 Interview can be used as a method to promote goodwill among the candidates for
offering courtesy, providing constructive suggestions about career planning and
showing interest in them.

TYPES OF INTERVIEW:

There are several types of Selection Interview. These can be classified on the basis of
how various interviewers and candidate come into contact with each other

1. TYPES OF INTERVIEW BASED ON CONTACT

On the basis of how interviewers and candidates come into contact with each other there
may be primarily two types of interview: one-to-one interview and panel interview.

 ONE-TO-ONE INTERVIEW

In one-to-one interview a candidate interacts with only one interviewer at a point of time.
During this period, the interviewer probes the candidate to solicit information about him,
his knowledge, skills and other facts that are relevant for his selection or rejection. Such
interviews provide opportunity to the candidate to express himself more freely and
23
comfortably. On the part of the interviewer he tends to make more accurate assessment of
the candidate as he is free from the impact of groupthink. But the interviewer may also be
facing the limitation of probing an applicant fully as he may not have the requisite
competence to judge both the technical and behavioral skills of the candidate.

This limitation can however be overcome through sequential one-to-one interview which
is essentially an extension of the one-to-one interview of the candidate. In sequential one-
to-one interviews a series of interviews are conducted by different interviewers on a one-
to-one basis. Each interviewer measures the strengths and weaknesses of the candidate in
his respective specialization. After the interview are over with an interviewer the
candidate moves on to the next interviewer. This process goes on till the candidate is
interviewed by all the interviewers. Sequential interview method is adopted in a situation
where the number of candidates is not large and the positions to be filled are critical.

 PANEL INTERVIEW

In panel interview a candidate is interviewed by a panel of interviewers at the same point

of time. For this purpose, a panel of two or more, sometimes exceeding even 15
interviewers is constituted to conduct the interview. All the interviewers belonging to
different fields of specialization so that the technical and behavioral skills of the
candidates are probed fully during the interview process. One of the interviewer acts as
the coordinator or chairman of the panel. The evaluation of the candidate may be made
by each interviewer separately by awarding marks or all of them may discuss the
performance of the candidate and marks are awarded on the basis of consensus.

2.TYPES OF INTERVIEW BASED ON INTERACTION PATTERN

There may be several ways in which interviewer and candidate may interact among
themselves during the interview process. Based on this interaction pattern, there may be
several types of interview the most common being structured interview, unstructured
interview, depth interview and stress interview

 STRUCTURED INTERVIEW:

It is the most common type of interview. It is based on the assumption that relevant
information about the candidate may be elicited by asking questions which have been
previously designed. The interview, to achieve its desired objective, must be pre-planned.
Before the interview starts, the interviewer should prepare himself and should follow a
definite plan of action. Structured interview has certain positive aspects like uniformity
in interviewing different candidates, pattern of questions prepared on the basis of job
requirements, easy evaluation etc.

This interview does not extract the true information about the inner self of the candidate.
The interviewer should plan in his mind what kind of information he is to seek, how he
will conduct the interview, the steps of procedure and how much time he will allot to
each candidate.It is highly structured and a more formalised type of planned interview.
The patterned interview has got nothing to do with job skills. It is designed to appraise
only personality, motivation and interests.
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  UNSTRUCTURED INTERVIEW:

It is also known as non-directive interview and it does not depend on pre-planned

questions prepared before the commencement of the interview. Questions emerge as the
discussion between the interviewer and the candidate proceeds. The unstructured
interviews can have deep insight of a candidate if the interviewers have requisite skills to
probe such insight.During the non-directive interview, which may be highly unstructured,
the candidate is not directed by questions as to what he should talk about.

This kind of interview is characterized by such practices as listening carefully, not

arguing, not interrupting and allowing pauses in the conversation. The basic philosophy
of such an interview is that a candidate is more likely to reveal his actual self than when
he answers set questions. Perhaps no employment interview uses the purely non-directive
approach.

 DEPTH INTERVIEW

Depth interview is semi-structured in nature and involves questions in key areas which
the interviewers have studied in advance. These areas include candidate‟s home life,
education pattern, previous experience, aptitude, interest, hobbies etc.The basic idea
behind depth interview is to probe the candidate thoroughly so as to get his complete
picture. This is quite advantageous but requires high interviewing skills.

Here the interviewer only goes into considerable detail on particular subjects of an
important nature. Take an example: a candidate has pointed out that touring is his
favourite hobby. Under common type of interviewing this matter will not be pursued
further. But in a depth interview the subject will be put to exhaustive analysis. The
candidate would be asked when he tours, why he tours, where he tours, with whom he
tours and how much money and time he spends on touring, and so on. The emphasis is
upon the “why” and the “why of the why.”

 THE GROUP INTERVIEW:

The group interview is a relatively new technique in the West and almost unknown in our
country. It is a procedure for the discovery of leadership. Several job applicants are
placed in a leaderless discussion and interviewers sit in the background to observe and
evaluate the performance of the candidates. A topic for discussion is assigned and at the
beginning there is no leader. The interviewer observes how one assumes leadership and
how it is accepted by other members of the group. This method is useful in the selection
of supervisors. But in such a situation everyone might not get a chance to speak and good
candidates may be missed.

 STRESS INTERVIEW

The basic objective of stress interview is to find out how the candidate behaves in
stressful situation. In stress interviews, the interviewers create stressful situation for the
candidate. Under the stress interview deliberate attempts are made to create pressure on
the candidate to see how well he performs under stress. The stress interview may have
25
some value for jobs where emotional balance is a key factor. The situation can be created
in a number of ways by asking questions too rapidly, criticizing the candidate‟s answers
and his manner of answering, interrupting him frequently, dropping some objects on the
floor and asking him to lift it up and so on. The basic intention is to annoy, embarrass and
frustrate him deliberately. The purpose of stress interview is to find out how the
candidate behaves in stressful situations, whether he loses his temper, gets confused,
frightened or keeps himself composed and shows patience.

STEPS IN INTERVIEW PROCESS

 PREPARATION OF INTERVIEW
Preparation is essential to ensure that interview is conducted properly. First, Interviews
are generally too short and advanced preparation helps the interviewers to ensure how
information should be collected in too short period. Second, interviewers need certain
information which make the job easier.
 DEFINING OBJECTIVES OF INTERVIEW
Interview aims at eliciting maximum possible information about the candidates as well
as to promote good image about the organisation. Information is sought on personal
characteristics, technical competence, initiative, common sense and approach, ability and
motivation to learn, capacity and attitudes, potential for growth
 DETERMINING METHODS OF INTERVIEW
The various interview methods like structured, unstructured, depth and stress interviews
should be decided in advance.
 DETERMINING NUMBER OF INTERVIEWERS
Whether the interview will be conducted on a one-to-one basis or a panel interview
should be decided in advance. If it is a panel interview the no. of interviewers should be
decided.
 PREPARING BRIEF RESUME OF CANDIDATES
A brief resume of all the candidates to be interviewed should be prepared and the resume
should be prepared on the basis of information in the application form
 WORKING OUT ADMINISTRATIVE DETAILS
It may be in the form of determining persons to make arrangements for seating of
candidates , providing them necessary information about the modality of the interview
and them for interview .calling
 PHYSICAL SETTING
Physical setting should be comfortable to both the interviewer and interviewee. The
interview venue should be separate from office and free from noise, phone call
interruption and other disturbances. Physical facilities like ventilation, light and adequate
no. of tables and chairs should be provided. While setting the physical facilities , the
image of the organisation should also be kept in mind.
 CONDUCTING INTERVIEW
 Establishing Rapport – Rapport should be developed between the interviewer and
the interviewee in such a way that the interviewee is at ease to answer the
interviewer
 Soliciting Information – Next is to solicit necessary information from the
candidate regarding his strengths and weaknesses, where do you want to be 5
years from now?, why I should hire you?, what do people most often criticize you
for? Etc.
26
  Recording Information – Major information given by the candidate is jotted
down.
 CLOSING INTERVIEW
 Starting of interview creates initial impression but closing of interview creates
final impression of the candidate about the whole interview process.
 It is better to close the interview by asking the candidate by asking whether he
would like to say something or whether he wants to know more about the
organisation.
 FINALISING INFORMATION
 The interviewers should finalize the evaluation of the candidate either by
assigning marks or grades as the case may be on the basis of consensus
 Recommending the names of appropriate candidates to the competent authority
for final selection of approval.

INDUCTION
Induction is the process for welcoming newly recruited employees and supporting
them to adjust to their new roles and working environments. Starting a new job can
be a stressful experience and new employees need help to settle in.

Induction ensures that employees integrate well into, and across, their new
organisation. Research demonstrates that induction programmes benefit both employers
and employees. For employers, these include reducing turnover and absenteeism, and
increasing employee commitment and job satisfaction.

Induction is the process of introducing a new employee to his/her job and organization
and giving him all the necessary information required by him/her to start his work. The
purpose of induction is to welcome a new employee and inform them about the
organizational culture, introduce them to their team and co-workers, give them an
understanding of their job, help them understand how their work will be connected to his
co workers and informing him about the policies of the organization.

Induction helps to reduce the anxiety of a new entrant in the organization and helps him
to feel a sense of belongingness in the organization. If the induction process is neglected
it may lead to confusion for the employee, wasted time, wasted resources, absenteeism
and turnover.

OBJECTIVES OF INDUCTION

 To reduce the anxiety, shyness and nervousness a new employee feels when he
joins new organization and is surrounded by new people and a new environment.
 To introduce the employees their job, company culture, policies, workplace, work
environment and the people of the organization.
 To ensure that the new employee does not form a negative perception about the
organization.
 To reduce confusion and waste of time and resources.
 To foster good relations among employees
 To reduce the possibility of a new employee being exploited by an evil co worker
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 ORIENTATION

Employee orientation is the process of introducing newly hired employees to their new
workplace. It provides the basic organizational information employees need to feel
prepared for their new team, department, and role within the company. Effective
employee orientation makes employees aware of company policies and expectations,
handles essential paperwork, and answers any questions or concerns they may have
before they transition into their new positions.

Orientation is the process of bringing employees up to speed on organisational policies,

job roles and responsibilities and other organisational attributes and concepts that will
help them transition efficiently into the position. In larger companies, and for roles with
greater responsibilities, the orientation process may include time spent in several
departments as well as specialist learning programmes.

Orientation is linked to the term onboarding. While the terms are technically
synonymous, onboarding may imply a richer experience that requires greater resources
from the company and also places more weight on intangible organisational culture as
well as traditional policies and behaviours.

DIFFERENCES BETWEEN INDUCTION AND ORIENTATION

Induction Orientation
Induction is a process takes A process which involves
place to welcome assimilation of new joinee into the
newcomer to the organization to rehabilitate him at
organization, to make them the new workplace and provided
ready for their job. with basic information about the
company.
Introduction of the Integration of the employee in the
employee with the organization.
organization.
Short term Long term
Detailed presentation or Practical overview of the
brochure of the company's organization.
rules, policies and employee
benefits is provided.

SOCIALISATION

Socialisation is the process by which individuals acquire the knowledge, language, social
skills, and value to conform to the norms and roles required for integration into a group
or community. It is a combination of both self-imposed and externally-imposed rules, and
the expectations of the others. In an organizational setting, socialization refers to the
process through which a new employee 'learns the ropes,' by becoming sensitive to the
formal and informal power structure and the explicit and implicit rules of behavior.

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PROCESS OF SOCIALISATION:

 Pre Arrival Socialisation

This stage explicitly recognizes that each individual arrives with a set of
organizational values, attitudes, and expectations. For instance, in many jobs,
particularly high skilled and managerial jobs, new members will have undergone
a considerable degree of prior socialization in training and in school. Pre-arrival
socialization, however, goes beyond the specific job. The selection process is used
in most organizations to inform perspective employees about the organization as
whole. In addition, of course, interviews in the selection process also act to ensure
the inclusion of the ―right type‖ determining those who will fit in.
 Encounter stage
Upon entry into the organization, new members enter the encounter stage. Here
the individuals confront the possible dichotomy between their expectations about
their jobs, their coworkers, their supervisors, and the organization in general and
reality. If expectations prove to have been more orless accurate, the encounter
state merely provides a reaffirmation of the perceptions generated earlier.
However, this is often not the case. Where expectation and reality differ; new
employees must undergo socialization that will detach them from their previous
assumption and replace these with the organization„s pivotal standards.
Socialization, however, cannot solve all the expectationdifferences. At the
extreme, some new members may become totally disillusioned with the actualities
of their jobs and resign.
 Metamorphosis Stage
Finally the new member must workout any problems discovered during the
encounter stage. This may mean going through changes. Hence the last stage is
termed as metamorphosis stage. Metamorphosis is complete as is the socialization
process – when new members have become comfortable with the organization
and their work teams. In this situation they will have internalized the norms of the
organization and their coworkers; and they understand and accept these norms.
New members will feel accepted by their peers as trusted and valued individuals.

PARTICIPANTS IN THE SOCIALISATION PROCESS:

 HRM Department: HRM department can conduct the orientation in order to

socialize the newly hired employees with the working environment of the
organization. HRM plays a major role in new employee orientation-the role of
coordination, which ensures that the appropriate components are in place. In
addition HRM also serves as a participant in program.
 Supervisor: Immediate supervisor of particular department can also be the source
of informing the employees about the culture, rules, procedures and policies of the
organization. Mostly in smaller organizations, orientation may mean the new
member reports to supervisor, who then assigns the new member to other
employee who will introduce the new member to other coworkers.
 Peers: Peers and coworkers of the new hires can perform the orientation function
in order to tell the expectation of employers and requirements of the organization
as can also answer the queries raised from the employee side.

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  Organisation Culture: Every organization has its own unique culture. This
culture includes longstanding, and often unwritten, rules and regulation; a special
language that facilitates communication among members; shared standards of
relevance as to the critical aspects of the work that is to be done.
 CEO: The CEO„s first responsibility is to welcome new employees aboard and
talk to them about what a good job choice they made. The CEO is in position to
inspire these new employees by talking about what it is like to work for the
organization. When CEO is present in the socialization process, the company is
sending a message that it truly cares for its employees.

METHODS OF SOCIALISATION
• Stories
• Rituals
• Material symbols
• Language

SOCIALISATION BENEFITS

 Helps in understanding organisation culture

 Contributes to employee„s long term success
 Helps in adjustment and flexibility
 Helps in employee engagement
 Improve team work skills.
 Improve interpersonal skills.
 Improve human being skills.
 Improve leadership skills.
 Improve decision making skills.
 Improve communication and networking skills

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