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HUMAN

RESOURCES
INFORMATIO
N SYSTEM
10/09/10

<HRIS>
KKSS HUMAN RESOURCES MANAGEMENT < HRM> 1
Human Resource Information
Systems
 Human resource information
systems (HRIS)
– An integrated system of hardware, software,
and databases designed to provide
information used in HR decision making.
– Benefits of HRIS
• Administrative and operational efficiency in compiling
10/09/10HR data
• Availability of data for effective HR strategic planning
– Uses of HRIS
• Automation of payroll and benefit activities
• EEO/affirmative action tracking

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Primary HR Activities
Hiring Education Benefit
Recruiting Termination Administration
& Training

The Firm

Potential
Employees Employees Retired
Employees

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Data Management

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Output
HRIS Model subsystems
Input Work force Data Information
subsystems planning
subsystem
Accounting
information
Recruiting
system
subsystem
Internal
sources
Human Work force
resources management Users
research HRIS subsystem
system Database
Environmental Compensation
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sources
Subsystem
Manufacturing
intelligence Benefits
subsystem subsystem

Environmental
reporting
subsystem
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Accounting Information
Subsystem
Two main types of data
1. Personnel --
………………………………………………
…………………………………….
2. Accounting --
………………………………………………
……………………………………
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ACTIVITY FOR 3 MINUTES

PLEASE TRY TO IDENTIFY AND


FILL UP THE DATA REQUIRED
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Accounting Information
Subsystem
Two main types of data
1. Personnel -- name, birth
date, sex, marital status,
education, skills, etc.
2. Accounting -- hourly rate
or monthly salary, taxes,
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insurance deductions, etc.

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Human Resources Research Subsystem

 Examples:

–………………….
–………………….
–………………….
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– GIVE YOUR OWN EXAMPLES

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Human Resources Research Subsystem

 Examples:
– Job analyses and evaluations
– Succession studies
– Grievance studies
 This research can generate new
data for the database (job
analyses)
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 And it can use existing database
contents (succession studies)

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Human Resources Intelligence
Subsystem
HR has the responsibility for interfacing
with the most environmental elements
of any functional area.
 Government -- stay current on legislation.
File reports.
 Suppliers -- employment services
 Labor unions, local community,
competitors -- sources of employees
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 Global community intelligence
 Financial community -- employee planning
 Competitor intelligence

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Environmental Human Resources
Databases
 Executive search firm
databases
 University databases
 Employment agency
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databases
 Public access databases
 Corporate job banks

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The HRIS Database

Type of data:

1. Employee
82.5% of the firms maintain only
employee data
2. Non-employee
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8% of the firms
mainly organizations external to the
firm

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Possible HRIS Database
Locations

400
300
342

200
174
100
52 32
0
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Firm's central HR computer Operating Outside
computer division service center
computer

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Database Location

 Operating division -- decentralized


 Outside service center -- outsourcer
 Central computer is still the most
popular location
 HR computer in only 34% of the
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firms
● Some firms keep database in
multiple locations

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Basic Forms of HRIS Output

94.5
Percentage
of firms
84.4
reporting
output types

34.7
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8.7

Periodic Reports Database Queries Mathematical Models Expert Systems

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Software

 Custom software is
usually developed
jointly by HR and IS
 Some software is
integrated into a core
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HRIS
 Some is standalone
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Work Force Planning
Subsystem
Enable manager to identify
future personnel needs
 Organization charting
 Salary forecasting
 Job analysis/evaluation
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 Planning
 Work force modeling

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Recruiting
Subsystem
 Applicant
tracking
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 Internal search
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Work Force Management
Subsystem
 Performance appraisal
 Training
 Position control -- ensuring
that headcount does not
exceed budgeted limits.
 Relocation
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 Skills/competency
 Succession
 Disciplinary

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Compensation
Subsystem
Most systems in use

 Merit increases
 Payroll
 Executive compensation
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 Bonus incentives
 Attendance
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Benefits
Subsystem
 Defined contribution
 Defined benefits
 Benefit statements
 Flexible benefits
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 Stock purchase
 Claims processing

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Environmental Reporting
Subsystem
Reporting firm’s personnel policies
and practices to the government
 EEO records
 EEO analysis
 Union increases
 Health records
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 Toxic substance
 Grievances

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Users of the HRIS Database

Non HR HR Other HR
Managers Director Managers
Executives
(2.78) (3.09) (3.79) (4.33)

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01 21 3 43 45
Not at all Occasionally Monthly Weekly Daily

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Users of HRIS

Compensation

Environmental
Management
Work Force

Reporting
Planning
Work Force

Recruiting

Benefits
HR director X X X X X X
Other executives X X X X X X
Compensation/benefits manager X X
HR planning manager X
Employee/labor relations manager X X
EEO/AAP manager X X X X X X
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Recruiting & selection dvlpmnt mgr X X
Training manager X
Manager of accounting X X
Payroll manager X X
Other managers X X X X X X

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Uses of
an HR
Informatio
n System
(HRIS)

10/09/10

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Designing and Implementing
an HRIS
 HRIS Design Issues
– What information available and what is
information needed?
– To what uses will the information be
put?
– What output format compatibility with
other systems is required?
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– Who will be allowed to access to the
information?
– When and how often will the
information be needed?
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Accessing the HRIS
 Intranet
– An organizational (internal) network
that operates over the Internet.
 Extranet
– An Internet-linked network that allows
employees access to information
provided by external entities.
 Web-based HRIS Uses
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– Bulletin boards
– Data access
– Employee self-service
– Extended linkage

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QUESTIONS !

THANKS
10/09/10

KKSS HUMAN RESOURCES MANAGEMENT < HRM> 27


7-1

SELECTIO
10/09/10 N
KKSS HUMAN RESOURCES MANAGEMENT < HRM> 28
INTRODUCTION
Selection is the process of picking individuals
who have relevant qualifications to fill jobs in
an organization. Selection is much more than
just choosing the best candidate. It is an
attempt to strike a happy balance between
what
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the applicant can and wants to do and
what the organization requires.

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 29


ESSENTIALS OF SELECTION

 Picking individuals possessing relevant


qualifications
 Matching job requirements with the profile
of candidates
 Using multiple tools and techniques to find
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the most suitable candidates capable
 Of achieving success on the job

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 30


The Process

The Process of Selection


 Reception
 Screening Interview
 Application blank
 Selection Tests
 Selection Interview
 Medical Examination
 Reference Checks
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 Hiring Decision

Selection is usually a series of hurdles or steps. Each one must be


successfully cleared before the applicant proceeds to the next

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 31


The Process of Selection

 Reception
A warm, friendly and courteous reception is extended to
candidates with a view to create a favourable impression.
Employment possibilities are also communicated honestly and
clearly
 Screening interview
The HR department tries to screen out the obvious misfits
through this courtesy interview. A prescribed application form is
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given to candidates who are found to be suitable.
 Application blank
It is a printed form completed by job aspirants detailing their
educational background, previous work history and certain
personal data.

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 32


Contents Of Application Blank

 Personal data (address, sex, identification marks)


 Marital data (single or married, children, dependents)
 Physical data (height, weight, health condition)
 Educational data (levels of formal education, marks,
distinctions)
 Employment data (past experience, promotions, nature of
duties, reasons for leaving previous jobs, salary drawn, etc.)
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 Extra-curricular activities data (sports/games, NSS, NCC,
prizes won,leisure-time activities)
 References (names of two or more people who certify the
suitability of an applicant to the advertised position)

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 33


Sample Application Blank
N a m e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
A d d r e s s : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
P h o n e N u m b e r ( R e s ) : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
E d u c a t io n
C o lle g e / U n iv e r s i t y A t t e n d e d : _ _ _ _ _ _ _ _ _ _ _ _ H ig h e s t D e g r e e (a ) B A /B S c /M A /M S c /M B A /M C o m
( b ) B E / B Te c h / M T e c h
( c ) A n y o th e r
H ig h S c h o o l A t t e n d e d : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
W o r k E x p e r ie n c e ( L is t m o s t r e c e n t jo b s f ir s t )
N a m e o f th e O r g a n is a tio n :
G ro s s S a la ry : _ _ _ _ _ _ _ _ _ _ _ _ _ _ ( a n n u a l; b e s u r e t o in c lu d e a n y b o n u s e s o r c o m m is s io n e a r n e d )
J o b T it le : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e o f L a s t S u p e r v is o r : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
M a y w e c o n ta c t t h is s u p e r v is o r ? Ye s / N o
R e a s o n ( s ) fo r L e a v in g : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

N a m e o f O r g a n is a tio n : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a t e o f E m p lo y m e n t : _ _ _ _ _ _ _ fr o m to _ _ _ _
G ro s s S a la ry : _ _ _ _ _ _ _ _ _ _ _ ( a n n u a l; b e s u re to in c lu d e a n y b o n u s e s o r c o m m is s io n e a r n e d )
J o b T it le : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e o f L a s t S u p e r v is o r : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
M a y w e c o n t a c t t h is s u p e r v is o r ? Ye s / N o
R e a s o n ( s ) fo r L e a v in g : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

N a m e o f O r g a n is a tio n : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a te o f E m p lo y m e n t: _ _ _ _ _ _ _ fr o m to _ _ _ _
G ro s s S a la ry : _ _ _ _ _ _ _ _ _ _ _ ( a n n u a l; b e s u re to in c lu d e a n y b o n u s e s o r c o m m is s io n e a r n e d )
J o b T it le : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e o f L a s t S u p e r v is o r : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
M a y w e c o n t a c t t h is s u p e r v is o r ? Ye s / N o

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R e a s o n ( s ) fo r L e a v in g : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

W o r k s k ills
1 . L is t a n y jo b - r e la t e d la n g u a g e s y o u a re a b le t o s p e a k o r w r it e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2 . L is t a n y jo b - r e la t e d c le r ic a l ( e . g . , t y p in g ) o r t e c h n ic a l s k ills ( e . g . , c o m p u te r p r o g r a m m in g ) th a t y o u
h a v e :
A . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ B . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
C . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

A d d i t io n a l I n f o r m a t io n
In c a s e o f a n e m e r g e n c y , p le a s e c o n t a c t .
N a m e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
A d d r e s s : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Te l e p h o n e : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I u n d e rs ta n d th a t fa ls if ic a tio n o f in f o r m a t io n is g r o u n d s f o r d is m i s s a l.
I u n d e r s ta n d th a t m y e m p lo y m e n t a t t h e c o m p a n y m a y b e d is c o n t in u e d a t a n y t im e fo r a n y re a s o n
e ith e r b y m y s e lf o r b y th e c o m p a n y.
I a g re e to s u b m it to a d r u g a n d /o r a lc o h o l t e s t a s a c o n d it io n o f e m p lo y m e n t.

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> S ig n a tu r e D a te 34


The Process of Selection
 Weighted application blank
The items that have a strong relationship to job performance are
given numeric values or weights so that a company can cross-
compare candidates with more or less similar qualifications on
paper

Weighted Application Blank


 It is a printed form completed by candidate wherein each item is weighted and
scored based on its importance as a determinant of job success
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 It helps a company to cross-compare candidates having more or less similar
qualifications and reject those not meeting the job criteria strictly
 On the negative side, it is difficult to develop an appropriate WAB, the exercise
could be quite costly, and it needs frequent updating so as to be in line with
changing job requirements.

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 35


SELECTION TESTING

A test is a standardized, objective


measure of a sample of behaviour.
Selection tests are increasingly used
by companies these days because
they measure individual differences in
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a scientific way, leaving very little
room for Individual bias.
Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 36
Selection Tests
Intelligence test
Aptitude test
Personality test
Projective test
Interest test
Preference test
Achievement test
Simulation test
Assessment centre
The in basket
10/09/10 The leaderless group discussion
Business games
Individual presentations
Graphology test
Polygraph test
Integrity test

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 37


SELECTION TESTING
A. Intelligence tests: They measure a candidate’s learning ability
and also the ability to understand instructions and make
judgements. They do not measure any single trait but several
mental abilities (memory, vocabulary, fluency, numerical ability,
perception etc)
B. Aptitude tests: They measure a candidate’s potential to learn
clerical, mechanical and mathematical skills. Since they do not
measure a candidate’s on the job motivation, they are generally
administered in combination with other tests.
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C. Personality tests: They measure basic aspects of a candidate’s
personality such as motivation, emotional balance, self
confidence, interpersonal behaviour, introversion etc.
 Projective tests: These tests expect the candidates to interpret
problems or situations based on their own motives, attitudes, values
etc (interpreting a picture, reacting to a situation etc)

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 38


SELECTION TESTING
 Interest tests: These are meant to find how a person in tests
compares with the interests of successful people in a specific job.
These tests show the areas of work in which a person is most
interested.
 Preference tests: These tests try to compare employee preferences
with the job and organisational requirements.

D. Achievement tests: These are designed to measure what the


applicant can do on the job currently, ir., whether the testee
actually knows what he or she claims to know.

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E. Simulation tests: Simulation exercise is a test which duplicates
many of the activities and problems an employee faces while at
work.
F. Assessment centre: It is a standardised form of employee
appraisal that uses multiple assessment exercises such as in
basket, games, role play etc and multiple raters.

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Differences between work sample
method and assessment centre

W o r k S a mA sp sl e e s s m
S u
i t a b l e f o S ru r i t o a u b t l i e n e f o, r r e
v i s i b l e o u t c o m e s
T a k e s a f e T w a k m e s i n du at e y s s t
E v a l u a t e d E b v y a l ou an et e d s u b p
C
10/09/10 a n b e d o R n e e q uo ni r e l os c a a t
p e r f o r m s a s m a l l s e g m
t h a t m a y b e
U s u a l l y c o U m s p u l a e l t l ey d p oe nr f

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SELECTION TESTING

 The in-basket: From out of reports, memos, letters etc placed in the
in-basket, a candidate is supposed to initiate relevant actions within a
limited period of time.
 The leaderless group discussion: This exercise involves groups of
managerial candidates working together on a job related problem so
as to measure skills such as oral communication, tolerance, self-
confidence, adaptability, etc.
 Business games: Here participants try to solve a problem, usually as
members of two or more simulated companies that are competing in
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the market place
 Individual presentations: In this case the participants are given a
limited amount of time to plan, organise and prepare a presentation on a
given topic.

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Evaluation of the assessment
centre technique

+points - points
The flexibility of form and content --expensive to design
The use of a variety of techniques --difficult to administer
Standardised ways of interpreting behaviour --blind acceptance of data may
Pooled assessor judgements not be advisable
Content validity and wider acceptance
Performance ratings are more objective
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SELECTION TESTING

G. Graphology tests: Here a trained evaluator tries to examine the


lines, loops, hooks, strokes, curves etc in a person's handwriting
to assess the person's personality and emotional make-up.

H. Polygraph : It is a lie detection test. During the test, the operator


records the respiration, blood pressure and perspiration of the
subject as he or she responds to s series of questions posed to
elicit the truth.

I. Integrity tests: these are designed to measure employee's


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honesty to predict those who are more likely to indulge in
unacceptable behaviour

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 43


Tests as Selection Tools

Tests help uncover qualifications and talents that


cannot be predicted otherwise. They offer
unbiased information regarding potentially sound
candidates. However, they suffer from sizeable
errors of estimate. It is difficult to elicit truthful
responses from testees.
Standards for Selection Tests
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To be useful, tests must meet certain


requirements such as reliability, validity,
suitability, preparation, standardisation etc.
Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 44
Standards For Selection Tests

Reliability: the ability of a selection tool to measure an attribute


consistently; When a test is administered to the same individual
repeatedly, he should get Approximately identical scores.
Validity: the extent to which an instrument measures what it intends
to measure; In a typing test, validity measures a typist’s speed and
accuracy.
Suitability: a test must fit the nature of the group on which it is
applied Usefulness: exclusive reliance on any single test should be
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avoided
Standardisation: norms for finalising test scores should be
established Qualified people: tests demand a high level of
professional skills

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 45


Selection Testing in India

Selection testing is quite popular


in India and several global giants
have been using the same to
good advantage, such as
Siemens India, LG Electronics,
10/09/10

and PepsiCo India etc.

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 46


Selection Practices Of Global Giants

1. Siemens India: It uses extensive psychometric instruments to evaluate short-


listed candidates. The company uses occupational personality questionnaire
to understand the candidate’s personal attributes and occupational testing to
measure competencies.
2. LG Electronics India: LG Electronics uses 3 psychometric tests to measure a
person’s ability as a team player, to check personality types and to ascertain
a person’s responsiveness and assertiveness.
3. Arthur Anderson: While evaluating candidates, the company conducts critical
behavioural interviewing which evaluates the suitability of the candidate for the
position, largely based on his past experience and credentials.

10/09/10
4. Pepsico India: The company uses India as a global recruitment resource. To
select professionals for global careers with it, the company uses a
competency-based interviewing technique that looks at the candidate’s abilities in
terms of strategising, lateral thinking, problem solving, managing the
environment. These apart, Pepsi insists that to succeed in a global posting, these
individuals possess strong functional knowledge and come from a cosmopolitan
background.

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Selection Interview
Interview is an important source of
information about job applicants.
Several types of interviews are
used , depending on the nature and
importance of the position to be
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filled within an organisation.

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Types Of Selection Interviews

The nondirective interview: the recruiter asks questions as they come to


mind
The directive or structured interview: the recruiter uses a predetermined
set of Questions that are clearly job-related
The situational interview: the recruiter presents a hypothetical incident and
asks The candidate to respond
The behavioural interview: the focus here is on actual work related
incidents and The applicant is supposed to reveal what he or she did in a
10/09/10
given situation
Stress interview: the recruiter attempts to find how applicants would
respond to Aggressive, embarrassing, rule and insulting (at times) questions
The panel interview: three or four interviewers pose questions to the
applicant and Examine the suitability of the candidate

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Interviewing Mistakes
These include: favouritism, failure to
establish rapport with candidates, not
being Able to ask right questions,
resorting to snap judgements, showing
leniency, being Influenced by cultural
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noise, stereotyping,, bias, halo effect,
being influenced by The body language of
the candidate, candidate—order error etc.
Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 50
Interviewing Mistakes

 Snap judgements: deciding the applicant's suitability quickly based on


the early impression
 Leniency: the tendency to rate employee high or excellent on all
criteria
 Stereotyping: attributing characteristics to individuals based on their
inclusion or membership in a particular group
 Bias: allowing the ratings to be influence by the personal likes and
dislikes
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 Halo effect: a single important trait of a candidate affects the
judgement of the rater ( like “athletes make good sales people”)
 Candidateorder error: the order in which a rater interviews candidates
could influence ratings sometimes

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 51


Interview Process

Interviewing is an art and involves a number of sequential steps


such as adequate preparation, proper reception, democratic
exchange of information, termination of interview in an appropriate
manner and objective evaluation of responses, records and other
relevant facts.

The Interview Process


 Preparation
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 Reception
 Information exchange
 Termination

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 52


Medical Examination And
Reference Checking

Medical evaluation and reference


checking are routinely undertaken by
leading companies these days to
learn more about the candidate’s
general health, social behaviour,
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interpersonal skills, punctuality and
honesty etc.

Selection KKSS HUMAN RESOURCES MANAGEMENT < HRM> 53


QUESTIONS !

THANKS
10/09/10

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6-1

RECRUITMEN
10/09/10 T
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INTRODUCTION
Recruitment is the process of locating and
encouraging potential applicants to apply for
existing or anticipated job openings
 Certain influences, however, restrain a
firm while choosing a recruiting source
such as:
10/09/10  Poor image
 Unattractive job
 Conservative internal policies
 Limited budgetary support
 Restrictive policies of government
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Recruitment: matching the needs of
applications and organisations

I n f o r m a t io n F l o w

O r g a n i s a t io n P o te n t ia l
n e e d f o r h i g Ih n t e r n a l a p p l ic a n t s ’
q u a li t y A p p l i c a n t sn e e d f o r
e m p l o y e e s s u i t a b le jo b

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n v ir o n m e n t :
E c o n o m i c a n d S o c ia l,
T e c h n o lo g i c a l a n d P o l it ic a l

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Situational factors impacting recruitment

The process of recruitment is influenced by a variety of environmental


factors.
 Economic factors
 Social factors
 Technological factors
 Political factors
 Legal factors
 The Factories Act
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 The Apprentices Act
 The Employment Exchanges Act
 The Contract Labour Act
 Bonded Labour System Act
 The Child Labour Act

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Sources of Recruitment
The sources of recruitment may broadly
be divided into two categories:

•internal sources and

•external sources.
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• Both have their merits and demerits.

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Merits and demerits of hiring people from within

Merits Demerits
(i) Economical: The cost of recruiting (i) Limited choice: The organisation is
internal candidates is minimal. No forced to select candidates from a limited
expenses are incurred on pool. It may have to sacrifice quality and
advertising. settle for less qualified candidates.
(ii) Suitable: The organisation can pick (ii) Inbreeding: It discourages entry of
the right candidates having the talented people, available outside an
requisite skills. The candidates can organisation. Existing employees may fail
choose a right vacancy where their to behave in innovative ways and inject
talents can be fully utilised. necessary dynamism to enterprise
activities.
(iii) Reliable: The organisation has (iii) Inefficiency: Promotions based on length
knowledge about the suitability of a of service rather than merit, may prove to
candidate for a position. ‘Known be a blessing for inefficient candidates.
10/09/10 devils are better than They do not work hard and prove their
unknown angels!’. worth.
(iv) Satisfying: A policy of preferring (iv) Bone of contention: Recruitment from
people from within offers regular within may lead to infighting among
promotional avenues for employees. employees aspiring for limited, higher-level
It motivates them to work hard and positions in an organisation. As years roll
earn promotions. They will work by, the race for premium positions may
with loyalty, commitment and end up on a bitter note.
enthusiasm.

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Merits and demerits of hiring people from outside

Merits Demerits
Wide choice: The organisation has the Expensive: Hiring costs could go up
freedom to select candidates from a substantially. Tapping multifarious sources
large pool. Persons with requisite of recruitment is not an easy task, either.
qualifications could be picked up.
Injection of fresh blood: People with Time consuming: It takes time to
special skills and knowledge could be advertise, screen, to test and to select
hired to stir up the existing employees suitable employees. Where suitable ones
and pave the way for innovative ways of are not available, the process has to be
working. repeated.
Motivational force: It helps in Demotivating: Existing employees who
motivating internal employees to work have put in considerable service may
hard and compete with external resist the process of filling up vacancies
candidates while seeking career growth. from outside. The feeling that their
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Such a competitive atmosphere would services have not been recognised by the
help an employee to work to the best of organisation, forces them to work with less
his abilities. enthusiasm and motivation.
Long term benefits: Talented people Uncertainty: There is no guarantee that
could join the ranks, new ideas could find the organisation, ultimately, will be able to
meaningful expression, a competitive hire the services of suitable candidates. It
atmosphere would compel people to give may end up hiring someone who does not
of their best and earn rewards, etc. ‘fit’ and who may not be able to adjust in
the new set-up.
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Methods Of Recruitment

Internal methods
 Promotions and transfers: Promotion is the movement of an
employee from a lower level position to a higher level
position with increase in salary

Transfer, on the other hand, is a lateral movement within the


same grade, from one job to another.
 Job posting: It is a method of publicising job openings on
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bulletin boards, electronic media and similar outlets by a company.
 Employee referrals: It is a kind of recommendation from a
current employee regarding a job applicant.

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Possible benefits and costs of employee referrals

 Recommender gives a realistic picture about the job. The applicant


can weigh the pros and cons carefully before handing over the CV. The
applicant is more likely to accept an offer if one is made and once
employed, to have a higher job survival.
 It‘s an excellent means of locating potential employees in those
hard-to-fill positions. The recommender earns a reward and the
company can avoid expensive recruiting search – in case the
candidate gets selected.
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 Recommenders may confuse friendship with job competence.
Factors such as bias, nepotism, and eagerness to see their
friends in the company may come in the way of hiring a suitable
candidate.

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Direct methods

 Campus recruitment

It is a method of recruiting by visiting and


participating in college campuses and their
placement centres. Possibly the most
popular way of hiring the best brains in the
country,
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this method has to be used with lot
of care and caution. Campus hiring, of
course, is not easy.

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Common Mistakes made in campus
recruiting
 Failure to utilise a full-time professional recruiter: Often recruitment is used as
a training experience for new employees. This results in rapid turnover in the
recruitment office.
 The recruiter is not professionally trained in interviewing: Professionally
trained as used here means a minimum training period of three days of principles and
practices using live interviews that are audio or videotaped and critiqued.
 The recruiter does not have the authority to make decisions with regard to
hiring: Often this is reserved for the boss, who does not know how to conduct an
evaluation interview.
 The actual plant visit is mishandled: Recruits are left waiting for scheduled
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appointments, constant interruptions occur during the visit, arrangements by the
institute may not be upto the mark, prior shortlisting of students is not arranged, etc.
 The recruiter does not get involved in the development of the new
employee: Because the recruiter often has the best rapport with the new employee,
he or she should become involved.

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Guidelines for campus recruiting

 Shortlist campuses
 Choose recruiting team carefully
 Pay smartly, not highly
 Present a clear image
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 Do not oversell yourself
 Get in early
 Not everyone fits the bill
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Indirect methods
 Newspaper advertisements
 Television and radio
advertisements
Third party methods
 Private employment search firms
 Employment exchanges
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 Gate hiring and contractors
 Unsolicited applicants/walk-ins
 Internet recruiting

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Alternatives to recruiting

Overtime: Short term fluctuations in work volume could best be solved through
overtime. The employer benefits because the costs of recruitment, selection and training
could be avoided. The employee benefits in the form of higher pay. However, an
overworked employee may prove to be less productive and turn out less than optimal
performance. Employees may slow down their pace of work during normal working
hours in order to earn overtime daily. In course of time, overtime payments become quite
routine and if, for any reason, these payments do not accrue regularly, employees
become resentful and disgruntled.

Subcontracting: To meet a sudden increase in demand for its products and services,
the firm may sometimes go for subcontracting – instead of expanding capacities
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immediately. Expansion becomes a reality only when the firm experiences increased
demand for its products for a specified period of time. Meanwhile, the firm can meet
increased demand by allowing an outside specialist agency to undertake part of the
work, to mutual advantage.

Cont…

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Alternatives to recruiting

Temporary employees: Employees hired for a limited time to perform a specific


job are called temporary employees. They are particularly useful in meeting
short term human resource needs. A short term increase in demand could be
met by hiring temporary hands from agencies specialising in providing such
services. It’s a big business idea in United States these days ($3-$4 billion
industry). In this case the firm can avoid the expenses of recruitment and the
painful effects of absenteeism, labour turnover, etc. It can also avoid fringe
benefits associated with regular employment. However, temporary workers do
not remain loyal to the company; they may take more time to adjust and their
inexperience may come in the way of maintaining high quality.

10/09/10
Employee leasing: Hiring permanent employees of another company who
possess certain specialised skills on lease basis to meet short-term
requirements – although not popular in India – is another recruiting practice
followed by firms in developed countries. In this case, individuals work for the
leasing firm as per the leasing agreement/arrangement. Such an arrangement is
beneficial to small firms because it avoids expense and problems of personnel
administration. Cont…

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Alternatives to recruiting

Outsourcing: Any activity in which a firm lacks internal


expertise and requires on unbiased opinion can be
outsourced. Many businesses have started looking at
outsourcing activities relating to recruitment, training,
payroll processing, surveys, benchmark studies,
statutory compliance etc., more closely, because they
do not have the time or expertise to deal with the
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situation. HR heads are no longer keeping activities like
resume management and candidate sourcing in their
daily scrutiny. This function is more commonly
outsourced when firms are in seasonal business and
have cyclical stuffing needs.
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Evaluation of the sources of
recruitment

 Time lapse data: they show the time lag between the date of
requisition for manpower supply from a department to the actual
date of filling the vacancies in that department

 Yield ratios: they show the number of contacts required to


generate a given number of hires at a point of time.
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 Surveys and studies: they could be carried out to find out the
suitability of a particular source for certain positions.

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Recruitment Policies And Procedures

A recruitment policy indicates the organisation’s code of conduct in a


specific area.

Recruitment policy statement


In its recruitment activities, the company will:
 Advertise all vacancies internally
 Reply to every job applicant promptly
 Inform job applicants the basic details and job conditions of every job advertised
10/09/10
 Process all applications with efficiency and courtesy
 Seek candidates on the basis of their qualifications
 Aim to ensure that every person invited for interview will be given a fair and
thorough hearing

Cont…

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Recruitment Policies And Procedures

The company will not:


 Discriminate unfairly against potential applicants on the basis of sex,
race,religion, caste, etc.;
 Knowingly make any false or exaggerated claims in its recruitment
literature or job advertisements

A recruitment procedure will lay down a clear path to be followed by


the HR department while hiring people. Of course, the procedures
have to be framed in a flexible manner so as to permit the HR
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department to respond to the requests made by various departments
and by potential candidates quickly.

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Questions to be asked while hiring
people
 Has the vacancy been agreed by a responsible manager?
 Is there an up-to-date job description for the vacancy?
 What are the conditions of employment for the vacancy (salary, hours of work,
fringe benefits, perquisites, holidays, etc.)?
 Has a personnel specification/candidate’s profile (in terms of physique,
intelligence, aptitude, qualifications experience, etc.) been prepared?
 Has a notice of the vacancy been circulated internally?
 Has a job advertisement been agreed? Have details of the vacancy been
forwarded to relevant agencies?
 Do all potential candidates (internal or external) know where to apply and in what
form?
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 What are the arrangements for drawing up a shortlist of candidates?
 What about the interviewing dates and arrangements for selection of
candidates?
 Have the shortlisted candidates or waitlisted candidates been informed
sufficiently in advance and asked to furnish detailed references?
 Have unsuitable candidates or waitlisted candidates been informed of their
position in a polite way thanking them for their interest and attendance?

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Recruitment: Indian Experiences

Recruitment of trainees:
expectations of Indian companies
Pepsi: Pepsi is a flat organisation. There are a maximum of four reporting
levels. Executives here emphasise achievement, motivation, the ability to
deliver come what may. As the Personnel Manager of Pepsi Foods
remarked “we hire people who are capable of growing the business
rather than just growing with the business”. Recruitees must be capable
of thinking outside the box, cutting the cake of conventional barriers
10/09/10
whenever and wherever necessary. They must have a winner’s mindset and
a passion for creating a dynamic change.They must have the ability to deal
with ambiguity and informality.

Cont…

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Recruitment of trainees:
expectations of Indian companies
Reebok: As Reebok’s customers are young, the company places emphasis on
youth. The average age at Reebok is 26 years. Employees are expected to
have a passion for the fitness business and reflect the company’s aspirations.
Recruitees should be willing to do all kinds of job operations. The willingness to
get one’s hands dirty is important. They must also have an ability to cope with
informality, a flat organisation and be able to take decisions independently and
perform consistently with their clearly defined goals.
Indian Hotels: The Taj group expects the job aspirants to stay with the
organisation patiently and rise with the company. Employees must be
willing to say ‘yes sir’ to anybody. Other criteria include: communication
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skills, the ability to work long and stressful hours, mobility, attention to
personal appearance and assertiveness without aggression.

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Recruiters these days expect B-
school graduates to possess certain
skills:

Skills recruiters want in India


1. Ability to work in a team
2. Analytical and problem solving skills
3. Communication and other soft skills
4. Creativity and resourcefulness
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5. Leadership potential
6. General Managerial skills
7. Entrepreneurial skills

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QUESTIONS !

THANKS
10/09/10

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