Recruitment and Selection Process

Unit III
Concept, Nature & Scope

Expanding the talent pool- Recruitment
Definition
Recruitment is the art of discovering and procuring potential applicants for actual and
anticipated organizational vacancies.
Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the
best candidate for the job.
Factors Affecting Recruitment
Size
Geographic Factors and Locality
Past Recruiting Efforts
Growing Organisations
Constraints and Challenges
Image of the Organisation

Attractiveness of the job
Organisational Policies
Legislation
Cost of Recruitment
Prof Shruti Gupta, Assistant Professor, AIMT
Prerequisites of a Good Recruitment Policy

It should be in conformity with its general personnel policies;
It should be flexible enough to meet the changing needs of an organization;
It should be so designed as to ensure employment opportunities for its employees
on a long-term basis;
It should match the qualities of employees with the requirements of the work for
which they are employed;
It should highlight the necessity of establishing job analysis
Process of Recruitment
Employee Planning and Work Analysis
Design Strategy- Number and type of People
Determine sources of recruitment
Effective Recruiting
External factors affecting recruiting:
Looming undersupply of workers
Lessening of the trend in outsourcing of jobs
Increasingly fewer qualified candidates
Internal factors affecting recruiting:
The consistency of the firms recruitment efforts with its strategic goals
The available resources, types of jobs to be recruited and choice of
recruiting methods
Nonrecruitment HR issues and policies
Line and staff coordination and cooperation
Measuring Recruiting Effectiveness
What to measure and how to measure
How many qualified applicants were attracted from each recruitment
source?
Assessing both the quantity and the quality of the applicants
produced by a source.
High performance recruiting
Applying best-practices management techniques to recruiting.
Using a benchmarks-oriented approach to analyzing and measuring
the effectiveness of recruiting efforts such as employee referrals.
Recruiting yield pyramid

The historical arithmetic relationships between recruitment leads and
invitees, invitees and interviews, interviews and offers made, and offers
made and offers accepted.
Internal Sources of Candidates: Hiring from Within
Advantages
Foreknowledge of candidates strengths and weaknesses
More accurate view of candidates skills
Candidates have a stronger commitment to the company
Increases employee morale
Less training and orientation required
Disadvantages
Failed applicants become discontented
Time wasted interviewing inside candidates who will not be considered
Inbreeding of the status quo
Finding Internal Candidates
Job posting
Publicizing an open job to employees (often by literally posting it on
bulletin boards) and listing its attributes.
Rehiring former employees
Advantages:
They are known quantities.
They know the firm and its culture.
Disadvantages:
They may have less-than positive attitudes.
Rehiring may sent the wrong message to current employees about

how to get ahead.
Succession planning
The process of ensuring a suitable supply of successors for current and
future senior or key jobs.
Succession planning steps:
Identifying and analyzing key jobs.
Creating and assessing candidates.
Selecting those who will fill the key positions.
Outside Sources of Candidates
Advertising
The Media: selection of the best medium depends on the positions for
which the firm is recruiting.
Newspapers (local and specific labor markets)
Trade and professional journals
Internet job sites
Marketing programs
Constructing an effective ad
Wording related to job interest factors should evoke the applicants
attention, interest, desire, and action (AIDA) and create a positive
impression of the firm.
Types of employment agencies:
Public Employment Agencies
Privately owned agencies
Reasons for using a private employment agency:
When a firm doesnt have an HR department and is not geared to doing
recruiting and screening.
The firm has found it difficult in the past to generate a pool of qualified
applicants.
The firm must fill a particular opening quickly.
There is a perceived need to attract a greater number of minority or female
applicants.
The firm wants to reach currently employed individuals, who might feel
more comfortable dealing with agencies than with competing companies.
The firm wants to cut down on the time its devoting to recruiting.
Avoiding problems with employment agencies:
Give the agency an accurate and complete job description.
Make sure tests, application blanks, and interviews are part of the agencys
selection process.
Periodically review data on candidates accepted or rejected by your firm,

and by the agency. Check on the effectiveness and fairness of the agencys
screening process.
Screen the agency. Check with other managers or HR people to find out
which agencies have been the most effective at filling the sorts of
positions needed to be filled.
Review the Internet and a few back issues of the Sunday classified ads to
discover the agencies that handle the positions to be filled.
Temp Agencies and Alternative Staffing

Benefits of Temps
Paid only when working
More productive
No recruitment, screening, and payroll administration costs
Costs of Temps
Fees paid to temp agencies
Lack of commitment to firm
Offshoring/Outsourcing White-Collar and Other Jobs
Specific issues in outsourcing jobs abroad
Political and military instability
Likelihood of cultural misunderstandings
Customers security and privacy concerns
Foreign contracts, liability, and legal concerns
Special training of foreign employees
Costs associated with companies supplying foreign workers
Executive recruiters (headhunters)
Special employment agencies retained by employers to seek out topmanagement talent for their clients.
Contingent-based recruiters collect a fee for their services when a
successful hire is completed.
Retained executive searchers are paid regardless of the outcome of
the recruitment process.
Internet technology and specialization trends are changing how candidates
are attracted and how searches are conducted
College recruiting
Recruiting goals
To determine if the candidate is worthy of further consideration
To attract good candidates
On-site visits
Invitation letters
Assigned hosts
Information package
Planned interviews
Timely employment offer
Follow-up
Internships
Employee referrals
Applicants who are referred to the organization by current employees
Referring employees become stakeholders.
Referral is a cost-effective recruitment program.
Referral can speed up diversifying the workforce
Walk-ins
Direct applicants who seek employment with or without encouragement
from other sources.
Courteous treatment of any applicant is a good business practice.
Recruiting via the Internet
More firms and applicants are utilizing the Internet in the job search
process.
Advantages of Internet recruiting
Cost-effective way to publicize job openings
More applicants attracted over a longer period
Immediate applicant responses
Online prescreening of applicants
Links to other job search sites
Automation of applicant tracking and evaluation
Professional Associations
Many professional associations and societies offer placement service to
members as on of their benefits.
Labour Unions
Play a direct role in providing prospective workers. Viable source of
finding workers in traditional sectors
As champions of workers rights, help in promotion of good employment
practices for all levels of workers.
External Recruitment -Merit
External sources provide the requisite type of personnel for an organization,
having skill, training and education upto the required standard.
Since persons are recruited from a large market, the best selection can be made.
In the long run, this source proves economical because potential employees do not
need extra training for their jobs.
External Recruitment- Demerit
Attracting, contacting, and evaluating potential employees is more difficult.
Adjustment or orientation time is longer.
Morale problems can develop among those employees within the organisation
who feel qualified to do the job.
Issues in Recruiting a More Diverse Workforce
Single parents
Providing work schedule flexibility.
Older workers
Revising polices that make it difficult or unattractive for older workers to
remain employed.
Recruiting minorities and women
Understanding recruitment barriers.
Formulating recruitment plans.
Instituting specific day-to-day programs.
The disabled
Developing resources and policies to recruit and integrate disable persons
into the workforce.
Selection
Matching People and Jobs
Selection
The process of choosing individuals who have relevant qualifications to
fill existing or projected job openings.
Selection Considerations
Person-job fit: job analysis identifies required individual competencies
(KSAOs) for job success.
Person-organization fit: the degree to which individuals are matched to
the culture and values of the organization.
The Goal of Selection: Maximize Hits
Steps in the Selection Process
The Selection Process

Obtaining Reliable and Valid Information
Reliability
The degree to which interviews, tests, and other selection
procedures yield comparable data over time and alternative
measures.
Validity
Degree to which a test or selection procedure measures a persons
attributes.
Application Forms
Application date
Educational background
Experience
Arrests and criminal convictions
Country of citizenship
References
Disabilities
Employment Tests
Employment Test
An objective and standardized measure of a sample of behavior that is
used to gauge a persons knowledge, skills, abilities, and other
characteristics (KSAOs) in relation to other individuals.
Types of Tests
Tests of cognitive abilities
Intelligence Tests
Tests of general intellectual abilities that measure a range of

abilities, including memory, vocabulary, verbal fluency, and
numerical ability.
Aptitude tests
Tests that measure specific mental abilities, such as inductive and
deductive reasoning, verbal comprehension, memory, and
numerical ability.
Tests of motor abilities

Tests that measure motor abilities, such as finger dexterity, manual
dexterity, and reaction time.
Tests of physical abilities

Tests that measure static strength, dynamic strength, body coordination,
and stamina.
Measuring Personality and Interests

Personality tests
Tests that use projective techniques and trait inventories to measure basic
aspects of an applicants personality, such as introversion, stability, and
motivation.
Disadvantage
Personality testsparticularly the projective typeare the most
difficult tests to evaluate and use.
Advantage
Tests have been used successfully to predict dysfunctional job
behaviors and identify successful candidates for overseas
assignments.
The Big Five
Extraversion
The tendency to be sociable, assertive, active, and to experience positive
effects, such as energy and zeal.
Emotional stability/neuroticism
The tendency to exhibit poor emotional adjustment and experience
negative effects, such as anxiety, insecurity, and hostility.
Openness to experience
The disposition to be imaginative, nonconforming, unconventional, and
autonomous.
Agreeableness
The tendency to be trusting, compliant, caring, and gentle.
Conscientiousness
Is comprised of two related facets: achievement and dependability.
Other Tests
Interest inventories
Personal development and selection devices that compare the persons

current interests with those of others now in various occupations so as to
determine the preferred occupation for the individual.
Achievement tests
Test that measure what a person has already learnedjob knowledge in
areas like accounting, marketing, or personnel.
Work Samples
Work samples
Actual job tasks are used in testing applicants performance.
Work sampling technique
A testing method based on measuring an applicants performance on actual
basic job tasks.
Background Investigations and Reference Checks
Extent of investigations and checks
Reference checks (87%)
Background employment checks (69%)
Criminal records (61%)
Driving records (56%)
Credit checks (35%)
Reasons for investigations and checks
To verify factual information provided by applicants.
To uncover damaging information.
Sources of information for background checks:
Former employers
Current supervisors
Commercial credit rating companies
Written references
Making Background Checks More Useful
Include on the application form a statement for applicants to sign explicitly
authorizing a background check.
Use telephone references if possible.
Be persistent in obtaining information.
Ask open-ended questions to elicit more information from references.
Use references provided by the candidate as a source for other references.
Checking Background Information
Step 1Disclosure and authorization.
Inform the employee/applicant that a report will be requested and obtain
written authorization.
Step 2Certification.
The employer must certify to the reporting agency that the employer will
comply with the federal and state legal requirements.
Step 3Providing copies of reports.

The employer must provide copies of the report to the applicant or
employee if adverse action is contemplated.
Step 4Notice after adverse action.
After the employer provides the employee or applicant with copies of the
investigative reports and a reasonable period has elapsed, the employer
may take an adverse action.
The Polygraph and Honesty Testing
The polygraph (or lie detector)
A device that measures physiological changes,
The assumption is that such changes reflect changes in emotional state that
accompany lying.
Permitted Users of the Polygraph
Employers with contracts involving:
National defense or security
Nuclear-power (Department of Energy)
Access to highly classified information
Counterintelligence
Other exceptions
Hiring of private security personnel
Hiring persons with access to drugs
Conducting ongoing investigations involving economic loss or injury to an
employers business.
Paper-and-pencil honesty tests
Psychological tests designed to predict job applicants proneness to
dishonesty and other forms of counterproductivity.
Measure attitudes regarding things like tolerance of others who steal,
acceptance of rationalizations for theft, and admission of theft-related
activities.
Graphology
The use of a sample of an applicants handwriting to make an employment
decision.
The Employment Interview
Why the interview is so popular:
It is especially practical when there are only a small number of applicants.
It serves other purposes, such as public relations
Interviewers maintain great faith and confidence in their judgments.
Interviewing Methods
Nondirective Interview
The applicant determines the course of the discussion, while the
interviewer refrains from influencing the applicants remarks.
Structured Interview
An interview in which a set of standardized questions having an
established set of answers is used.
Situational Interview
An interview in which an applicant is given a hypothetical incident and
asked how he or she would respond to it.
Behavioral Description Interview (BDI)
An interview in which an applicant is asked questions about what he or
she actually did in a given situation.
Panel Interview
An interview in which a board of interviewers questions and observes a
single candidate.
Computer Interview
Using a computer program that requires candidates to answer a series of
questions tailored to the job.
Answers are compared either with an ideal profile or with profiles
developed on the basis of other candidates responses.
Video interviews
Using video conference technologies to evaluate job candidates technical
abilities, energy level, appearance, and the like before incurring the costs
of a face-to-face meeting.
Ground Rules for Employment Interviews

Establish an interview plan
Establish and maintain rapport
Be an active listener
Pay attention to nonverbal cues
Provide information freely
Use questions effectively
Separate facts from inferences
Recognize biases and stereotypes
Control the course of the interview
Standardize the questions asked
Medical Examinations
Given last as they can be costly.
Ensure that the health of an applicant is adequate to meet the job
requirements.
Provides a baseline for subsequent examinations
Testing for illegal drugs is allowed.
Reaching a Selection Decision
Selection Considerations:
Should individuals to be hired according to their highest potential or
according to the needs of the organization?
At what grade or wage level to start the individual?

Should selection be for employee- job match, or should advancement
potential be considered?
Should those not qualified but qualifiable be considered?
Should overqualified individuals be considered?
What effect will a decision have on meeting affirmative action plans and
diversity considerations?
Selection Ratio
The number of applicants compared with the number of people to be
hired.
Cutoff Score
The point in a distribution of scores above which a person is considered
and below which a person is rejected.
Final Decision
Selection of applicant by departmental or immediate supervisor to fill
vacancy.
Notification of selection and job offer by the human resources department.
Career Management
The Goal: Matching Individual and Organizational Needs
The Organizations Role: Establishing a Favourable Context
Management Participation
Provide top management support
Provide collaboration between line managers and HR managers
Train management personnel
Setting Goals
Plan human resources strategy
Changing HR Policies
Provide for job rotation
Provide outplacement service
Announcing the Program
Explain its philosophy
Identifying Career Opportunities and Requirements

Competency Analysis
Measures three basic competencies for each job: know-how, problem
solving, and accountability.
Job Progressions
The hierarchy of jobs a new employee might experience, ranging from a
starting job to jobs that require more knowledge and/or skill.
Career Paths
Lines of advancement in an occupational field within an organization.
Recognize Lots of Possibilities
Promotion
A change of assignment to a job at a higher level in the organization.
Principal criteria for determining promotions are merit, seniority, and
potential.
Transfer
The placement of an individual in another job for which the duties,
responsibilities, status, and remuneration are approximately equal to those
of the previous job.
Alternative Career Moves
Career Change Organizational Assistance
Relocation services
Services provided to an employee who is transferred to a new location:
Help in moving, in selling a home, in orienting to a new
culture, and/or in learning a new language.
Outplacement services
Services provided by organizations to help terminated employees find a
new job.
The Plateauing Trap

Career Plateau
Situation in which, for either organizational or personal reasons, the
probability of moving up the career ladder is low.
Types of Plateaus
Structural plateau: end of advancement
Content plateau: lack of challenge
Life plateau: crisis of personal identity
Career Development Initiatives

Career Planning Workbooks
Stimulate thinking about careers, strengths/ limitations, development needs
Career Planning Workshops
Discuss and compare attitudes, concerns, plans
Career Counseling
Discussing current job activities and
performance, personal and career
interests and goals, skills, and
career development objectives
Determining Individual Development Needs
Fast-track Program
A program that encourages young managers with high potential to remain
with an organization by enabling them to advance more rapidly than those
with less potential.
Career Self-Management Training
Helping employees learn to continuously gather feedback and information
about their careers.
Encouraging them to prepare for mobility.
Mentoring
Mentors
Executives who coach, advise, and encourage individuals of lesser rank.
Mentoring functions
Functions concerned with the career advancement and psychological aspects
of the person being mentored.
E-mentoring
Brings experienced business
professionals together with
individuals needing counseling.
Training and Development

Orienting Employees
Employee orientation
A procedure for providing new employees with basic background
information about the firm.
Orientation content
Information on employee benefits
Personnel policies
The daily routine
Company organization and operations
Safety measures and regulations
Facilities tour
A successful orientation should accomplish four things for new employees:
Make them feel welcome and at ease.
Help them understand the organization in a broad sense.
Make clear to them what is expected in terms of work and behavior.
Help them begin the process of becoming socialized into the firms ways
of acting and doing things.
Training
Training is costly ,but not to train is still costlier
Training is a conscious effort to improve employees skills, powers of intelligences and to
nurture and develop their attitude and value towards a desired direction.
Training is a learning process that involves the acquisition of skills, concepts, rules or
attitudes to enhance the performance of employees.
The Scope of Training
Training
Effort initiated by an organization to foster learning among its members.
Tends to be narrowly focused and oriented toward short-term performance
concerns.
Development
Effort that is oriented more toward broadening an individuals skills for
the future responsibilities.
Need for Training

Declining Job Performance
Production Decreases
Lower Quality
More Accidents
Higher scrap or rejection rates
Changes imposed as result of Job Redesign
Technological Breakthroughs
The Systems Approach to Training and Development
Four Phases
Needs assessment
Program design
Implementation
Evaluation
Phase 1: Conducting the Needs Assessment

Organization Analysis
An examination of the environment, strategies, and resources of the
organization to determine where training emphasis should be placed.
Task Analysis
The process of determining what the content of a training program should
be on the basis of a study of the tasks and duties involved in the job.
Person Analysis
A determination of the specific individuals who need training.
Phase 2: Designing the Training Program
Instructional Objectives
Represent the desired outcomes of a training program
Performance-centered objectives
Provide a basis for choosing methods
and materials and for selecting
the means for assessing
whether the instruction
will be successful.
Strategies for Creating a Motivated Training Environment:

Use positive reinforcement.
Eliminate threats and punishment.
Be flexible.
Have participants set personal goals.
Design interesting instruction.
Break down physical and psychological obstacles to learning.
Feedback and Reinforcement

Behavior Modification
The technique that operates on the principle that behavior that is rewarded,
or positively reinforced, is repeated more frequently, whereas behavior
that is penalized or unrewarded will decrease in frequency.
Characteristics of Successful Instructors

Knowledge of the subject
Adaptability
Sincerity
Sense of humor
Interest
Clear instructions
Individual assistance
Enthusiasm
Phase 3: Implementing the Training Program
Training Methods for Nonmanagerial Employees

On-the-Job Training (OJT)
Apprenticeship Training
Cooperative Training, Internships, and Governmental Training
Classroom Instruction
Programmed Instruction
Audiovisual Methods
Computer-based Training and E-Learning
Simulation Method
Training Methods for Management Development
On-the-Job Experiences
Coaching
Understudy Assignment
Job Rotation
Lateral Transfer
Special Projects
Action Learning
Staff Meetings
Planned Career Progressions
Seminars and Conferences
Case Studies
Management Games
Role Playing
Behavior Modeling
Phase 4: Evaluating the Training Program
Appraising & Improving Performance

It is the process of evaluating the performance and qualifications of the employees in
terms of the requirements of the job for which he is employed, for purposes of
administration including placement, selection for promotions, providing financial rewards
and other actions which require differential treatment among the members of a group as
distinguished from actions affecting all members equally. HEYEL
Performance Appraisal is the systematic, periodic and an impartial rating of an
employees excellence in matters pertaining to his present job and his potential for a
better job. FLIPPO
Comparing Performance Appraisal and Performance Management
Performance appraisal
Evaluating an employees current and/or past performance relative to his
or her performance standards.
Performance management
The process employers use to make sure employees are working toward
organizational goals.
Employees individual goals point towards overall strategic
direction
Why appraise performance?

Appraisals play an integral role in the employers performance
management process.
Appraisals help in planning for correcting deficiencies and reinforce
things done correctly.
Appraisals, in identifying employee strengths and weaknesses, are useful

for career planning
Appraisals affect the employers salary raise decisions.
Defining Goals and Work Efforts

Guidelines for effective goals
Assign specific goals
Assign measurable goals
Assign challenging but doable goals
Encourage participation
SMART goals are:
Specific, and clearly state the desired results.
Measurable in answering how much.
Attainable, and not too tough or too easy.
Relevant to whats to be achieved.
Timely in reflecting deadlines and milestones.
Performance Appraisal Roles
Supervisors
Usually do the actual appraising.
Must be familiar with basic appraisal techniques.
Must understand and avoid problems that can cripple appraisals.
Must know how to conduct appraisals fairly.
Give the employee advance notice
Give the employee an advance copy of the appraisal
Must BE PREPARED.
Review prior performance appraisals
Review any notes taken regarding employees performance
BE FAMILIAR with the employees job
What projects they are working on, etc.
HR department
Serves a policy-making and advisory role.
Provides advice and assistance regarding the appraisal tool to use.
Prepares forms and procedures and insists that all departments use them.
Responsible for training supervisors to improve their appraisal skills.
Responsible for monitoring the system to ensure that appraisal formats and
criteria
Uses of Performance Appraisal
It provides information which is useful in making and enforcing important
decisions.
It provides information in the form of records about ratings.
It serves to stimulate & guide employee development.
Inefficient employees and those whose views are not in harmony with the
companys objectives or management philosophy can be weeded out or persuaded
to adjust themselves.
A periodic & accurate appraisal constrains a supervisor to be alert and competent

in his work.
It gives supervisors a more effective tool for rating their personnel.
It makes for better employer-employee relations.
The Appraisal Process
Designing the Appraisal Tool

What to measure?
Work output (quality and quantity)
Personal competencies
Goal (objective) achievement
How to measure?
Graphic rating scales
Alternation ranking method
MBO
Sources of Performance Appraisal

Manager and/or Supervisor
Appraisal done by an employees manager and reviewed by a manager one
level higher.
Self-Appraisal
Appraisal done by the employee being evaluated, generally on an
appraisal form completed by the employee prior to the performance
interview.
Subordinate Appraisal
Appraisal of a superior by an employee, which is more appropriate for
developmental than for administrative purposes.
Peer Appraisal
Appraisal by fellow employees, compiled into a single profile for use in an
interview conducted by the employees manager.
Why peer appraisals are used more often:
Peer ratings are simply a popularity contest.
Managers are reluctant to give up control over the appraisal
process.
Those receiving low ratings might retaliate against their peers.
Peers rely on stereotypes in ratings.

Team Appraisal
based on TQM concepts, that recognizes team accomplishment rather than
individual performance
Customer Appraisal
A performance appraisal that, like team appraisal, is based on TQM
concepts and seeks evaluation from both external and internal customers
Results Methods
Productivity Measures
Appraisals based on quantitative measures (e.g., sales volume) that
directly link what employees accomplish to results beneficial to the
organization.
Criterion contamination
Focus on short-term results
Management by Objectives (MBO)
A philosophy of management that rates performance on the basis of
employee achievement of goals set by mutual agreement of employee and
manager.
Summary of Appraisal Methods

Trait Methods
Advantages
Are inexpensive to develop
Use meaningful dimensions
Are easy to use
Disadvantages
Have high potential for rating errors
Are not useful for employee counseling
Are not useful for allocating rewards
Are not useful for promotion decisions
Behavioral Methods
Advantages
Use specific performance dimensions
Are acceptable to employees and superiors
Are useful for providing feedback
Are fair for reward and promotion decisions
Disadvantages
Can be time-consuming to develop/use
Can be costly to develop
Have some potential for rating error
Results Methods
Advantages
Have less subjectivity bias

Are acceptable to employees and superiors
Link individual to organizational performance
Encourage mutual goal setting
Are good for reward and promotion decisions
Disadvantages
Are time-consuming to develop/use
May encourage short-term perspective
May use contaminated criteria
May use deficient criteria
Rater Errors: Training and Feedback

Rating Error Training
Observe other managers making errors
Actively participate in discovering their own errors
Practice job-related tasks to reduce the errors they tend to make
Feedback Skills Training
Communicating effectively
Diagnosing the root causes of performance problems
Setting goals and objectives
Main Components of a Performance Appraisal System
Identification of Key Performance Areas.
Setting Goals or Objectives Every Year for the Next Year.
Identification of Behavioural Dimensions that are critical for Managerial
Effectiveness.
Periodic Review of Performance on Objectives and Behavioural Dimensions on a

Rating Scale.
Analysis of Performance by Identifying Facilitating and Inhibiting Factors in
Performance.
A Format Performance Review and Discussions at a Convenient Period.
Identification of Developmental Needs.
Compensation Management
Pay is a statement of an employees worth by an employer.
Pay is a perception of worth by an employee.
It is the HRM function that deals with every type of reward individuals receive in
exchange for performing organisational tasks.
It is an exchange relationship.
Types Financial
Direct (Wages, salaries, bonuses, commissions)
Indirect ( Vacation, insurance, childcare services)
Non Financial Rewards (Praise, Self- Esteem, Recognition)
Strategic Compensation Planning

Strategic Compensation Planning

Links the compensation of employees to the mission, objectives,
philosophies, and culture of the organization.
Serves to mesh the monetary payments made to employees with specific
functions of the HR program in establishing a pay-for-performance
standard.
Seeks to motivate employees through compensation.
Linking Compensation to Organizational Objectives
Value-added Compensation
Evaluating the individual components of the compensation program (pay
and benefits) to see if they advance the needs of employees and the goals
of the organization.
How does this compensation practice benefit the organization?
Does the benefit offset the administrative cost?
Common Strategic Compensation Goals
1. To reward employees past performance
2. To remain competitive in the labor market
3. To maintain salary equity among employees
4. To mesh employees future performance with organizational goals
5. To control the compensation budget
6. To attract new employees
7. To reduce unnecessary turnover
Strategic Compensation Policy Concerns
1. The rate of pay within the organization and whether it is to be above, below, or at
the prevailing community rate.
2. The ability of the pay program to gain employee acceptance while motivating
employees to perform to the best of their abilities.
3. The pay level at which employees may be recruited and the pay differential
between new and more senior employees.
4. The intervals at which pay raises are to be granted and the extent to which merit
and/or seniority will influence the raises.
5. The pay levels needed to facilitate the achievement of a sound financial position
in relation to the products or services offered.
The Pay-for-Performance Standard
The standard by which managers tie compensation to employee effort and
performance.
Refers to a wide range of compensation options, including merit-based
pay, bonuses, salary commissions, job and pay banding, team/ group
incentives, and various gainsharing programs.
Motivating Employees through Compensation
Pay Equity (also Distributive Fairness)
An employees perception that compensation received is equal to the value

of the work performed.
A motivation theory that explains how people respond to situations in
which they feel they have received less (or more) than they deserve.
Individuals form a ratio of their inputs to outcomes in their job and
then compare the value of that ratio with the value of the ratio for
other individuals in similar jobs.
The greater the perceived disparity between my input/output ratio and the comparison
persons input/output ratio, the greater the motivation to reduce the inequity.
Expectancy Theory and Pay
A theory of motivation that holds that employees should exert greater
work effort if they have reason to expect that it will result in a reward that
they value.
Employees also must believe that good performance is valued by their
employer and will result in their receiving the expected reward.
Motivating Employees through Compensation

Pay Secrecy
An organizational policy prohibiting employees from revealing their
compensation information to anyone.
Creates misperceptions and distrust of compensation fairness and
pay-for-performance standards.
Arguments against secrecy:
Knowledge of base pay is the strongest predictor of pay
satisfaction, which is highly associated with work engagement
Knowledge of base pay more strongly predicts pay satisfaction
than does the actual amount of pay received by employees.
Objectives
Adequate
Equitable
Balanced
Cost- Effective
Secure
Incentive- providing
Acceptable to the Employee
-As suggested by Patton
Purpose of Compensation
The Wage MixInternal Factors

Employers Compensation Strategy
Setting organization compensation policy to lead, lag, or match
competitors pay.
Worth of a Job
Establishing the internal wage relationship among jobs and skill levels.
Employees Relative Worth
Rewarding individual employee performance

Employers Ability-to-Pay
Having the resources and profits to pay employees.
The Wage MixExternal Factors
Labor Market Conditions
Availability and quality of potential employees is affected by economic
conditions, government regulations and policies, and the presence of
unions.
Area Wage Rates
A firms formal wage structure of rates is influenced by those being paid
by other area employers for comparable jobs.
Cost of Living
Local housing and environmental conditions can cause wide variations in
the cost of living for employees.
Inflation can require that compensation rates be adjusted upward
periodically to help employees maintain their purchasing power.
Collective Bargaining
Escalator clauses in labor agreements provide for quarterly upward costof-living wage adjustments for inflation to protect employees purchasing
power.
Unions bargain for real wage increases that raise the standard of living for
their members.
Real wages are increases larger than rises in the consumer price index; that
is, the real earning power of wages.
Govt. Influences on Compensation Administration
Minimum Wages Act, 1948
Payment of Wages Act, 1936
Equal Remuneration Act, 1976
Payment of Bonus Act, 1965
Workmen Compensation Act, 1923
Pay Commissions
Wage Boards
Compensation Decisions
Employees working on similar jobs in other organisations (Group A)
Employees working on different jobs within the organisation (Group B)
Employees working on the same job within the organisation (Group C)
Group A
The Pay Level Decision
High- Pay Strategy
Low- Pay Strategy

Comparable- Pay Strategy
Choice of a Strategy- the degree to which the org can retain attract and retain
-Organisations ability to pay
The Pay Survey
The Compensation Structure
Wage and Salary survey
A survey of the wages paid to employees of other employers in the
surveying organizations relevant labor market.
Helps maintain internal and external pay equity for employees.
Labor Market
The area from which employers obtain certain types of workers.
Collecting Survey Data
Outside Sources of Data
Problems with Surveys
They are not always compatible
with the users jobs
The user cannot specify
what
specific data to collect.
Conducting Employer-initiated Surveys
Select key jobs.
Determine relevant labor market.
Select organizations.
Decide on information to collect: wages/ benefits/ pay policies.
Compile data received.
Determine wage structure and benefits to pay.
Characteristics of Key Jobs
Key Jobs
Jobs that are important for wage-setting purposes and are widely known in
the labor market.
Characteristics of Key Jobs
They are important to employees and the organization.
They contain a large number of positions.
They have relatively stable job content.
They have the same job content across many organizations.
They are acceptable to employees, management, and labor as appropriate
for pay comparisons.
Group B
The Pay Structure Decision
Job Evaluation
Job Ranking
Classification
Point System
Factor Comparison
Pay Classes and Pay Curve
Job Evaluation Systems
Job Evaluation
The systematic process of determining the relative worth of jobs in order
to establish which jobs should be paid more than others within an
organization.
Job Ranking System
Oldest system of job evaluation by which jobs are arrayed on the basis of
their relative worth.
Disadvantages
Does not provide a precise measure of each jobs worth.
Final job rankings indicate the relative importance of jobs, not
extent of differences between jobs.
Method can used to consider only a reasonably small number of
jobs.
Job Classification system

A system of job evaluation in which jobs are classified and grouped

according to a series of predetermined wage grades.
Successive grades require increasing amounts of job responsibility, skill,
knowledge, ability, or other factors selected to compare jobs.
Factor Comparison Method
Selection of Job Characteristics
Selection of key jobs
Determination of correct rates of key jobs
Ranking key jobs under each job factor
Allocation of correct rate to key jobs
Evaluation of all other jobs
Designing , Adjusting & Operating Wage structure
Point System
A quantitative job evaluation procedure that determines the relative value
of a job by the total points assigned to it.
Permits jobs to be evaluated quantitatively on the basis of factors or
elementscompensable factorsthat constitute the job.
The Point Manual
A handbook that contains a description of the compensable factors and the
degrees to which these factors may exist within the jobs.
Select job factors & features
Prepare yardstick of value for each job factor
Decide the value of all the jobs against the predetermined yardstick
Build a wage survey for selected key jobs
Design the wage structure
Adjust and operate the wage structure
Job Evaluation for Management Positions

Hay Profile Method
Job evaluation technique using three factorsknowledge, mental activity,
and accountabilityto evaluate executive and managerial positions.
The Wage Curve
Wage Curve
A curve in a scattergram representing the relationship between relative
worth of jobs and wage rates.
Pay Grades
Groups of jobs within a particular class that are paid the same rate.
Rate Ranges
A range of rates for each pay grade that may be the same for each grade or
proportionately greater for each successive grade.
Red Circle Rates
Payment rates above the maximum of the pay range.
Competence-based Pay, (also skill-based pay or knowledge-based pay)
Compensation for the different skills or increased knowledge employees
possess rather than for the job they hold in a designated job category.
Greater productivity, increased employee learning and
commitment to work, improved staffing flexibility to meet
production or service demands, and the reduced effects of
absenteeism and turnover,
Broadbanding
Collapses many traditional salary grades into a few wide salary bands.
Group C- The Individual Pay Decision

Method of Payment
Time Worked (four types of increases- general across the board for all
employees, merit increases paid to some employees, COLA, Seniority)
Variable Pay- Incentive Compensation
Strategic Reasons for Incentive Plans
Variable Pay
Tying pay to some measure of individual, group, or organizational
performance.
Incentive Pay Programs
Establish a performance threshold to qualify for incentive payments.
Emphasize a shared focus on organizational objectives.
Create shared commitment in that every individual contributes to
organizational performance and success.
Advantages of Incentive Pay Programs
Incentives focus employee efforts on specific performance targets. They provide

real motivation that produces important employee and organizational gains.
Incentive payouts are variable costs linked to the achievement of results. Base
salaries are fixed costs largely unrelated to output.
Incentive compensation is directly related to operating performance. If
performance objectives (quantity and/or quality) are met, incentives are paid. If
objectives are not achieved, incentives are withheld.
Incentives foster teamwork and unit cohesiveness when payments to individuals
are based on team results.
Incentives are a way to distribute success among those responsible for producing
that success.
Incentives are a means to reward or attract top performers when salary budgets
are low.
Individual Incentive Plans

Straight Piecework
An incentive plan under which employees receive a certain rate for each
unit produced.
Differential Piece Rate
A compensation rate under which employees whose production exceeds
the standard amount of output receive a higher rate for all of their work
than the rate paid to those who do not exceed the standard amount.
Standard Hour Plan
An incentive plan that sets pay rates based on the completion of a job in a
predetermined standard time.
If employees finish the work in less than the expected time, their pay is
still based on the standard time for the job multiplied by their hourly rate.
Bonus
Incentive payment that is supplemental to the base wage for cost
reduction, quality improvement, or other performance criteria.
Spot bonus
Unplanned bonus given for employee effort unrelated to an established
performance measure.
Merit Pay Program (merit raise)
Links an increase in base pay to how successfully an employee achieved
some objective performance standard.
Merit Guidelines
Guidelines for awarding merit raises that are tied to performance
objectives.
Lump-sum Merit Program
Program under which employees receive a year-end merit payment, which
is not added to their base pay.
Advantages
Provides financial control by maintaining annual salary expenses
and not escalating base salary levels.
Contains employee benefit costs for levels of benefits normally
calculated from current salary levels.
Provides a clear link between pay and performance.

Awards
Often used to recognize productivity gains, special contributions or
achievements, and service to the organization.
Employees feel appreciated when employers tie awards to performance
and deliver awards in a timely, sincere and specific way.
Noncash Incentive Awards
Are most effective as motivators when the award is combined with a
meaningful employee recognition program.
Sales Incentives
Straight Salary Plan
Compensation plan that permits salespeople to be paid for performing various
duties that are not reflected immediately in their sales volume.
Encourages building customer relationships.
Provides compensation during periods of poor sales.
May not provide sufficient motivation for maximizing sales volume.
Straight Commission Plan
Compensation plan based upon a percentage of sales.
Disadvantages of straight commission incentive
Emphasis is on sales volume rather than on profits.
Customer service after the sale is neglected.
Earnings tend to fluctuate widely between good and poor periods of
business.
Temptation to grant price concessions to get sales.
Combined Salary and Commission Plan
A compensation plan that includes a straight salary and a commission
component (leverage).
Advantages
Combines the advantages of straight salary and straight commission
forms of compensation.
Offers greater design flexibility
Can be used to develop the most favorable ratio of selling expense to
sales.
Motivates sales force to achieve specific company marketing
objectives in addition to sales volume.
The Executive Pay Package

Base salary
Short-term incentives or bonuses
Long-term incentives or stock plans
Benefits
Perquisites (perks)
Group Incentive Plans

Team Incentive Plans
Compensation plans where all team members receive an incentive bonus
payment when production or service standards are met or exceeded.
Establishing Team Incentive Payments
Set performance measures upon which incentive payments are based
Determine the size of the incentive bonus.
Create a payout formula and fully explain to employees how payouts will be
distributed.
Gainsharing Plans
Programs under which both employees and the organization share the
financial gains according to a predetermined formula that reflects
improved productivity and profitability.
Scanlon
Rucker
Improshare
PROS
Team incentives support group planning and problem solving, thereby building a
team culture.
The contributions of individual employees depend on group cooperation.
Unlike incentive plans based solely on output, team incentives can broaden the scope
of the contribution that employees are motivated to make.
Team bonuses tend to reduce employee jealousies and complaints over tight or
loose individual standards.
Team incentives encourage cross-training and the acquiring of new interpersonal
competencies.
CONS
Individual team members may perceive that their efforts contribute little to team
success or to the attainment of the incentive bonus.
Intergroup social problemspressure to limit performance (for example, team
members are afraid one individual may make the others look bad) and the freeride effect (one individual puts in less effort than others but shares equally in
team rewards)may arise.
Complex payout formulas can be difficult for team members to understand.
Enterprise Incentive Plans

Profit Sharing
Any procedure by which an employer pays, or makes available to all regular
employees, in addition to their base pay, current or deferred sums based
upon the profits of the enterprise.
Challenges:
Agreement over division of profits between company and employees.
Possibility of no payout due to financial condition of company.
Stock Options
Granting employees the right to purchase a specific number of shares of the
companys stock at a guaranteed price (the option price) during a
designated time period.
The value of an option is subject to stock market conditions at the time that
option is exercised.
Employee Stock Ownership Plans (ESOPs)
Stock plans in which an organization contributes shares of its stock to an
established trust for the purpose of stock purchases by its employees.
Benefits and Services

Benefits
Indirect financial and nonfinancial payments employees receive for
continuing their employment with the company.
The Benefits Picture Today

Most full-time employees receive benefits.
Virtually all employers99%offer some health insurance coverage.
Benefits are a major expense (about one-third of wages and salaries) for
employers.
Employees do seem to understand the value of health benefits.
Employee Benefits in India

Accenture- gym at office, indoor sports, flexi- timing, family visits
NIIT- Wedding allowances, birthday gifts and celebrations, family days, annual
dating allowance, celebrating with grandparents
Types of Employee Benefits
Pay for time not worked

Insurance benefits
Retirement benefits
Services
Issues in Developing Benefits Plans

Benefits to be offered.
Coverage of retirees in the plan
Denial of benefits to employees during initial probationary periods
Financing of benefits.
Benefit choices to give employees.
Cost containment procedures to use.
Communicating benefits options to employees.
Some Required and Discretionary Benefits

Benefits required by Law
Discretionary Benefits Provided by
Employer
Provident Fund, Gratuity, Health
Insurance, Family pension
Life and health Insurance for family

and dependents
Workers Compensation for

accidents, workplace injury
Housing, subsidy on housing loans,

conveyance allowance, telephone
and entertainment allowance,
recreational benefits
Different types of leaves like study
leave, extraordinary leave
Maternity leave, transport, and

security for night shifts
Regular Leave and leave travel
allowance
Executive perquisites like chauffeur

driven car, petrol allowance and
family holidays
Pay for Time Not Worked

Unemployment insurance
Provides for benefits if a person is unable to work through no fault of his
or her own.
These benefits are payable under the laws from the Employee State
Insurance Act, 1948.
Vacations and holidays
Number of paid vacation days varies by employer.
Number of holidays varies by employer.
Premium pay for work on holidays.
Sick leave
Provides pay to an employee when he or she is out of work because of
illness.
Costs for misuse of sick leave
Pooled paid leave plans
Maternal leave
The Maternity Act 1961
Up to 12 weeks of unpaid leave within a one-year period
Employees have the right to return to their job or equivalent
position.
Severance pay
A one-time payment when terminating an employee.
Reasons for granting severance pay:
Acts as a humanitarian gesture and good public relations.
Mirrors employees two week quit notice.
Avoids litigation from disgruntled former employees.

Reassures employees who stay on after the employer downsizes its
workforce of employers good intentions.
Supplemental unemployment benefits (SUB)
Payments that supplement the laid-off or furloughed employees
unemployment compensation.
The employer makes contributions to a reserve fund from which
SUB payments are made to employees for the time the employee is
out of work due to layoffs, reduced workweeks, or relocations.
Insurance Benefits
Workers compensation (Workers Compensation Act, 1923)
Provides income and medical benefits to work-related accident victims or
their dependents, regardless of fault.
Permanent Partial Disability
Permanent total disability
Temporary partial disability
Temporary total disability
Controlling worker compensation costs
Screen out accident-prone workers.
Make the workplace safer.
Thoroughly investigate accident claims.
Use case management to return injured employees to work as soon
as possible.
Hospitalization, health, and disability insurance
Provide for loss of income protection and group-rate coverage of basic and
major medical expenses for off-the-job accidents and illnesses.
Accidental death and dismemberment
Disability insurance
Life Insurance
Provides lower rates for the employer or employee and includes all
employees
Retirement Benefits
Social Security
It fulfills the material needs of individuals & families, protecting aged and
disabled persons, and giving children the opportunity to grow up in health
and security.
Centrally funded social assistance programs
Social Insurance Scheme
Social assistance through welfare funds to central and state
governments
Public Initiatives
Pension Plans
Plans that provide a fixed sum when employees reach a predetermined
retirement age or when they can no longer work due to disability.
Services
1. Personal Services
Credit unions
Separate businesses established with the employers assistance to help
employees with their borrowing and saving needs.
Employee assistance programs (EAPs)
Provide counseling and advisory services:
Personal legal and financial services
Child and elder care referrals
Adoption assistance
Mental health counseling
Life event planning
2. Family-Friendly Benefits
On-site or subsidized child care
Elder care
Fitness and medical facilities
Food services
Flexible work scheduling
Telecommuting
Educational subsidies
Sabbaticals
Loan programs for home office equipment
Stock options
Trauma counseling
3. Executive Perquisites
Management loans
Financial counseling
Relocation benefits
Sabbaticals
Severance pay
Outplacement assistance
Company cars
Chauffeured limousines
Security systems
Company planes and yachts
Executive dining rooms
Physical fitness programs
Legal services
Tax assistance
Expense accounts
Club memberships
Season tickets
Credit cards
Childrens education
Flexible Benefits Programs
The cafeteria (flexible benefits) approach
Each employee is given a benefits fund budget to spend on the benefits he
or she prefers.
The fund limits the total cost for each benefits package.
Core plus option plans establish a core set of benefits which are
mandatory for all employees.
HEALTH
Factories Act 1948
Section 11 to 20 of The Factories Act, 1948 detail out health provisions that need
to be followed in factories. In particular, provisions for health and hygiene
comprise the following:
Section 11- Cleanliness
Every factory shall be kept clean and free from effluvia arising from any drain,
privy or other nuisance
Section 12- Disposal of Waste and Effluents
Arrangements shall be made in every factory for the treatment of wastes and
effluents due to the manufacturing process carried on therein, so as to render them
innocuous and for their disposal.
Section 13- Ventilation and Temperature
Effective and suitable and maintaining in every workroom-(a) adequate ventilation by the circulation of fresh air,
and
(b) such a temperature as will secure to workers therein reasonable conditions of comfort
and prevent injury to health
Section 14- Dust and Fume
This section prescribes effective measures, which should be adopted to keep the
workrooms free from dust and fume
Section 15- Artificial Humidification
In respect of all factories in which the humidity of the air is artificially increased,
the State Government may make rules,(a) prescribing standards of humidification;
(b) regulating the methods used for artificially increasing
the humidity of the air;
(c) directing prescribed tests for determining the humidity
of the air to be correctly carried out and recorded;
(d) prescribing methods to be adopted for securing adequate
ventilation and cooling of the air in the workrooms.
Section 16- Over- crowding
No room in any factory shall be overcrowded to an extent injurious to the health

of the workers employed therein.
Section 17- Lighting

In every part of a factory where workers are working or passing there shall be
provided and maintained sufficient and suitable lighting, natural or artificial, or
both.
Section 18- Drinking Water
In every factory effective arrangements at suitable points conveniently situated for
all workers employed wholesome drinking water.
Section 19- Latrines and Urinals
sufficient latrine and urinal accommodation of types shall be provided
conveniently situated and accessible they at the factory
Section 20- Spittoons
In every factory there shall be provided a sufficient number of spittoons in
convenient places and they shall be maintained in a clean and hygienic condition.
Social Security Measures

Overview
Social Security protects not just the subscriber but also his/her entire family by
giving benefit packages in financial security and health care.
Social Security schemes are designed to guarantee at least long-term sustenance
to families when the earning member retires, dies or suffers a disability.
The main strength of the Social Security system is that it acts as a facilitator - it
helps people to plan their own future through insurance and assistance.
The success of Social Security schemes however requires the active support and
involvement of employees and employers.
Background Information on Social Security
India has always had a Joint Family system that took care of the social security
needs of all the members provided it had access/ownership of material assets like
land
However with increasing migration, urbanization and demographic changes there
has been a decrease in large family units.
In the Indian context, Social Security is a comprehensive approach designed to
prevent deprivation, assure the individual of a basic minimum income for himself
and his dependents and to protect the individual from any uncertainties.
SOCIAL SECURITY LAWS

1. The Employees State Insurance Act, 1948 (ESI Act) - The Employees State
Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10
or more employees and provides for comprehensive medical care to the
employees and their families as well as cash benefits during sickness and
maternity, and monthly payments in case of death or disablement.
2. The Employees Provident Funds & Miscellaneous Provisions Act, 1952 (EPF &
MP Act) - It applies to specific scheduled factories and establishments employing
20 or more employees and ensures terminal benefits to provident fund,
superannuation pension, and family pension in case of death during service.
Separate laws exist for similar benefits for the workers in the coal mines and tea
plantations.
3. The Workmens Compensation Act, 1923 - The Workmens Compensation Act,
1923 (WC Act), which requires payment of compensation to the workman or his
family in cases of employment related injuries resulting in death or disability.
4. The Maternity Benefit Act, 1961- The Maternity Benefit Act, 1961 (M.B. Act),
which provides for 12 weeks wages during maternity as well as paid leave in
certain other related contingencies
5. The Payment of Gratuity Act, 1972 - It provides 15 days wages for each year of
service to employees who have worked for five years or more in establishments
having a minimum of 10 workers. Separate Provident fund legislation exists for
workers employed in Coal Mines and Tea Plantations in the State of Assam and
for seamen.
Managing Industrial Relations- An Overview

Industry:
Sec2(j)
It means any business, trade, undertaking, manufacturing or calling of employers &
includes any calling, service, employment, handicraft or industrial occupation or
avocation of workmen.
-The Industrial Dispute Act 1947
Meaning
1. IR is a relationship between management and employees or among employees and
their organizations, that characteristics and grow out of employment.
2. IR may be defined as the complex of inter- relations among workers, managers and
government.
An Act or Art of Controlling Human Resources in Employment.
Also referred as Labour Relations, Legal Relations, etc.,
Two Inseparable Limbs
Interest apparently Conflict but Complementary.
Definition
Relations between the management of an industrial enterprise and its employees.
Process by which people and their organization interact at the place of work to establish
the terms and conditions of employment
The Labour Relations Process
Objectives of Industrial Relations

1. Congenial Labour - Management relations
2.Enhance economic status of the workers
3.Regulate the production by minimizing industrial conflict
4.Socialize industries by making government as employer
5.Workers to have a say in management &decision making
6.Encourage &develop trade unions
7.Avoid industrial conflict consequences
8.Industrial democracy
Functions of IR
1. Communication is to be established between workers and the management in order to
bridge the traditional gulf between the two.
2.To establish a rapport between managers and the managed.
3.To ensure creative contribution of trade unions to avoid industrial conflicts, to
safeguard the interest of workers on the one hand and the management on the other hand,
to avoid unhealthy, unethical atmosphere in an industry.
4.To lay down considerations which may promote understanding, creativity and cooperation to raise industrial productivity, to ensure better workers participation.
Importance of Industrial Relations
Uninterrupted Production
Reduction in Industrial Disputes
High Morale
Mental Revolution
New Programme
Reduced Wastage
Success of Industrial Relations
1. Top Management support
2. Sound Personnel policies
3. Adequate practice should be developed by professionals
4. Detailed supervisory training
5. Follow up results
Purpose of HR in IR
1. Human resource management attracts, develops, and maintains a talented workforce.
2. Government legislation protects workers against employment discrimination.
3. Employee rights and other issues complicate the legal environment of work.
4. Labor relations and collective bargaining are closely governed by law.

Recruitment and Selection Process

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Unit III

Concept, Nature & Scope

Constraints and Challenges

Image of the Organisation

Prof Shruti Gupta, Assistant Professor, AIMT

Prerequisites of a Good Recruitment Policy

Prof Shruti Gupta, Assistant Professor, AIMT

Recruiting yield pyramid

Rehiring may sent the wrong message to current employees about

Prof Shruti Gupta, Assistant Professor, AIMT

Periodically review data on candidates accepted or rejected by your firm,

Temp Agencies and Alternative Staffing

Prof Shruti Gupta, Assistant Professor, AIMT

Prof Shruti Gupta, Assistant Professor, AIMT

The Goal of Selection: Maximize Hits

Steps in the Selection Process

Prof Shruti Gupta, Assistant Professor, AIMT

The Selection Process

Prof Shruti Gupta, Assistant Professor, AIMT

Tests of general intellectual abilities that measure a range of

Tests of motor abilities

Tests of physical abilities

Measuring Personality and Interests

Prof Shruti Gupta, Assistant Professor, AIMT

Personal development and selection devices that compare the persons

Step 3Providing copies of reports.

Ground Rules for Employment Interviews

At what grade or wage level to start the individual?

The Goal: Matching Individual and Organizational Needs

Prof Shruti Gupta, Assistant Professor, AIMT

The Organizations Role: Establishing a Favourable Context

Prof Shruti Gupta, Assistant Professor, AIMT

Identifying Career Opportunities and Requirements

Prof Shruti Gupta, Assistant Professor, AIMT

Alternative Career Moves

Career Change Organizational Assistance

Prof Shruti Gupta, Assistant Professor, AIMT

The Plateauing Trap

Prof Shruti Gupta, Assistant Professor, AIMT

Career Development Initiatives

Prof Shruti Gupta, Assistant Professor, AIMT

Training and Development

Need for Training

Prof Shruti Gupta, Assistant Professor, AIMT

Phase 1: Conducting the Needs Assessment

Phase 2: Designing the Training Program

Prof Shruti Gupta, Assistant Professor, AIMT

Strategies for Creating a Motivated Training Environment:

Feedback and Reinforcement

Prof Shruti Gupta, Assistant Professor, AIMT

Characteristics of Successful Instructors

Training Methods for Nonmanagerial Employees

Phase 4: Evaluating the Training Program

Prof Shruti Gupta, Assistant Professor, AIMT

Appraising & Improving Performance

Prof Shruti Gupta, Assistant Professor, AIMT

Why appraise performance?

Appraisals, in identifying employee strengths and weaknesses, are useful

Defining Goals and Work Efforts

A periodic & accurate appraisal constrains a supervisor to be alert and competent

The Appraisal Process

Designing the Appraisal Tool

Sources of Performance Appraisal