CHAPTER 5

HUMAN RESOURCE MANAGEMENT

STAFFING PROCESS

 Staffing or human resource process is an ongoing

procedures that tries to keep the organization
supplied with right people in the right position
 Process of staffing:- HUMAN RESOURCE
PLANNING

RECRUITMENT

SELECTION

SOCIALIZATION
(ORIENTATION)

TRAINING AND
DEVELOPMENT

PERFORMANCE APPRAISAL

COMPENSATION
 1. Human Resource

Planning
Planning to the future personal needs of the organization taking
into account both internal activities and external environment
To be effective, HRP must consider 2 factors:-
 Primary factor:- the organization’s human resource needs. For
example merger may required firm to retrench staffs
 Economic environment of the future:- a booming economy
might encourage expansion which may increase demand for
employees
HRP has 4 basic aspect
 Planning for future needs
 Planning for future balance
 Planning for recruiting or laying off employees
 Planning for the development of employees
 2. Recruitment
 Developing a group of job candidates in accordance with
human resource plan
 Included:- job analysis, job description, job specification and
job evaluation
 a) Job analysis- process of gathering and interpreting
information about the essentials duties tasks and
responsibilities of a job
 b) Job description- a concise summary of the specific tasks and
responsibilities of a job
 c) Job specification- an outline of the knowledge, skills,
education and physical abilities needed to perform the job
 d) Job evaluation – involves the procedures in determining the
relative worth of various jobs. To determine which job should
have higher pay than others
 Source of recruitment
a) INTERNAL :- solicitation of job application within
organization
Advantages:-
Low cost
Candidates are familiar with organization
Build employee morals
Disadvantages
Limited supply
Reduced chance that fresh viewpoints will enter the
organization
May encourages satisfaction among employees
• b ) EXTERNAL:-Application from outside the organization
• Example:-
• (i) Advertisement
• Advantages :- Wide distribution
:- Can be targeted to specific group
• Disadvantages :- Generate many unqualified candidates

• (ii) Employment agencies

• Advantages :- Wide contract
:- Careful screening
:- Short term guarantees are given
• Disadvantages :- High cost

• (iii) Campus recruiting

• Advantages :- Large and centralized body of candidates
• Disadvantages :- Can be quite expensive
»:

»:- It is common for hired graduates to leave organization after 2

or 3 years
 3. Selection
1 Application Form The selection process generally starts with this step
where the totally unsuitable applicant is eliminated.
Thus the organization is saved from the expenses of
processing the applicant through the remaining steps of
selection. The candidates who pass this step are only
asked to fill the application form.
2 Screening Interview After receiving the applications, the screening committee
screens the applications. Only the candidates who qualify the
criteria of the screening committee are called for the interview.
Usually the candidates selected for interview are four to six
times than the number of posts. Interview letter is sent to them
or they are called telephonically.
3 Testing After getting the interview letter and before going to the
interview there is one more step and that is the employment
tests. These tests are done to check the ability of the candidate.
These tests vary from organization to organization and change
as per the need of the particular job. these tests are intelligence
tests, aptitude tests, trade tests, interest test, personality tests
etc. these tests must be designed properly otherwise they will
not good indicator of one knowledge.
4 Background Investigation Before selecting the employ the prospective employee
generally look out for the referees given by the candidate. To
check about the candidate’s past record, reputation, police
record etc.
5 In-depth selection Interview The candidates who qualify the above tests are called for the
employment interview. This interview is done to get more
information about the candidate, to give him the actual picture
of what is required from him, to check the communication skill
of the candidate etc. for senior position post; a panel is
prepared who take the interview. At the end of interview of
each candidate the members of panel discuss about the
candidate and give him the grades.
6 Physical Examination The organizations generally prefer medical examination to be
4. Socialization (Orientation)
• Program designed to help employees fit smoothly into
organization
• Newcomers are introduced to their colleagues about the
culture, policies and expectation regarding employees behavior
Orientation conveys 3 types of information:-
a) General information about daily work routine
b) A review of the organization’s history, purpose, operations,
products and services
c) Detailed presentation of organization’s policies, work rules and
employees benefits
Importance of socialization:-
a) Reduce anxiety of new employees
b) Provide early job experiences
 5. Training and
 TrainingDevelopment
programs- a process designed to maintain
or improve current job performance
 Development program – a process designed to
develop skills necessary for future work activities.
 Managers use 4 procedures to determine the
training needs of the individuals in the organization
 a) Performance appraisal
 b) Analysis of job requirement
 c) Organizational analysis
 d) Employee survey
 Management training and development
programs including the following:-
• A) On the job training
- Training a person to learn job while working on it
Method frequently used:-
• i) Coaching
• ii) Job rotation
• iii) Training position
• iv) Mentoring
Advantages:-
• Cost saving
• Easy to learn real job
• Easy to get feedback
• Can be conducted over along period of time
Disadvantages:-
• Trainer must not be expert
• Extended period of training may causes boredom
• B) Off the job training
- Training takes place at a location away from the work site
Method frequently used:-
• i) Classroom instruction
• ii) University sponsored management development program
Advantages:-
• Trainee can concentrate and study without interruption
• Easy to use teaching aid
• Can train large group
Disadvantages:-
• Increase in cost of training
• Problem with transfer of learning
 6. Performance


Appraisal
A) Informal appraisal
- It is continual process of feeding back to employees information regarding to their work
performances
 - It can be conducted on a day to day basis
 B) Formal systematic appraisal
 -it is a formalized appraisal process for rating work performances
 -4major purpose:-
 To let employees know their current performances
 To identify employees who deserve merit raises
 To locate employees who need additional training
 To identify candidates for promotion
 Four approaches in formal systematic appraisal
 1) Manager’s rating of an employees
 2) Group of manager’s rating an employee
 3) Group peer rating of a colleague
 4) Employees’ rating bosses
7. Compensation

 Total compensation involves base pay, variable pay

(incentive pay) and indirect pay (benefits
 Base pay:-matches with labor market condition
 Variable pay:- To reward performance
 Benefits:- Indirect financial given to employees. Eg:
health insurances, leave, vacation
PROMOTION
• It is a significant way of recognizing
superior performance
• Problems:-
• - Dissatisfaction among staff
• - Create discrimination
• Criteria for employee’s promotion:-
• - Desirable personal qualities
• - Get along with other
• - Exert leadership role in group
situation
DEMOTION
• A process of transferring staffs to less
important position.
• It is used in dealing with ineffective managers

TRANSFER
• It is a move from one job to another, usually with no
change in salary or grade
• Employees may seek transfer for personal enrichment ,
more interesting job etc
• Employers may transfer a worker to fill a position where
he is needed.
Industrial Relation

 The relationship between employees and employers

within the organizational setting.
 Basically the interaction between employers,
employees and the government and the institution
and association through which interactions are
mediated
The importance of IR to
employers and employees
 Uninterrupted production
 Reduction in industrial dispute
 High Morale
 Mental Revolution
 Reduced wastage
 Motivation and productivity
The role played by the
Ministry of HR in IR
 Legislator
 Administrator
 Participant
 Employer