HRM-3rd sem Ip University

1. The sources of Recruitment
• Internal Sources
1. Present Employees
Transfers, Promotions,
Demotions
2. Retired & Retrenched
Employees
3. Dependents & Relatives
of deceased & disabled
employees.
• External Sources
• 1. Press Advertisements
• 2. Educational Institutions
• 3.Placement Agencies
• 4.Employment Exchanges
• 5.Labour Contractors
• 6.Unsolicited Applicants
• 7.Recommendations
• 8.Factory gate hiring

2. Techniques of Recruitment
• Direct Methods- Scouting, Employee Contracts, Manned
Exhibits and Waiting Lists.
• Indirect Methods-Advertisement
• Third Party Methods-Public Employment Exchanges,
Management Consulting Firms, Professional Societies and
Trade Unions
• Internet Recruitment

3. Recruitment Process
• Steps in Recruitment Process:
• 1. Requisitions for recruitment from other department
• 2. Locating and Developing the sources of Required number and type
of employees
• 3. Identifying the prospective employees with required characteristics
• 4. Communicating the information about the organization, the job and
the terms of conditions of service.
• 5. Encourage the potential candidates to apply for jobs
In the organization.
• 6. Evaluating the effectiveness of recruitment process.

4. What is Selection?
• Selection is the process of choosing the most suitable
persons out of all the applicants.
• Selection is a process of matching the qualifications
of applicants with the job requirements.
• It is the process of weeding out unsuitable candidates
and finally identify the most suitable candidate.
• The purpose of Selection is to pick up the right
person for every job.
• Selection is negative process as it rejects a large
number of unsuitable applicants from the pool.

5. Methods of Selection
• (a) Tests:
• 1. Aptitude Tests:
– Mental or
Intelligence test
– Mechanical test
– Psycho-motor test
• 2. Achievement Tests:
- Job Knowledge test
- Work sample test
• 3. Personality
Tests:
– Objective test
– Projective test
– Situation test
• 4. Interest Tests:
• Continued…

6. Methods of Selection (continued)
(b) Interviews
1. Informal Interview
2. Formal Interview
3. Patterned or Structured Interview
4. Non-Directed or Unstructured Interview
5. Depth Interview
6. Group Interview
7. Stress Interview
8. Panel or Board Interview

7. Selection Process…
• 1. Preliminary Interview
• 2. Application Blank
• 3. Selection Test
• 4. Employment Interview
• 5.Medical Examination
• 6.Reference Checks
• 7. Final Approval

8. Meaning and Definition of Performance Appraisal
• Performance appraisal or performance evaluation is the process
of assessing the performance and progress of an employee or of
a group of employees on a given job and his potential for future
development.
• According to Flippo, “ Performance appraisal is the systematic,
periodic and an impartial rating of an employee’s excellence in
matters pertaining to his present job and his potential for a
better job”

9. The process of Performance Appraisal
• 1. Establishing Performance Standards
• 2. Communicating the Standards
• 3. Measuring Performance
• 4. Comparing the actual standards with the Standards
• 5. Discussing the Appraisal
• 6. Taking Corrective Actions

10. Methods of Performance Appraisal
• Traditional Methods:
• 1. Confidential Report
• 2. Free Form or Essay
• 3. Straight Ranking
• 4. Paired Comparisons
• 5. Forced Distribution
• 6. Graphic Rating Scales
• 7. Checklist Method
• 8. Critical Incidents
• 9. Group Appraisal
• 10. Field Review
• Modern Methods:
• 1. Assessment Centre
• 2. Human Resource
Accounting
• 3. Behaviorally Anchored
Rating Scales
• 4. Appraisal through MBO.

11. Essentials of an Effective Appraisal System
1. Mutual Trust
2.Clear Objectives
3.Standardisation
4.Training
5.Job Relatedness
6.Documentation
7. Feedback and
Participation
8. Individual differences
9. Post appraisal
Interview
10. Review and Appeal

12. Methods of Training
On-the-Job Training (at the place of work)
• Coaching
• Understudy
• Position Rotation
Vestibule Training (adapted to the environment at
the place of work)

13. Methods of Training
Off-the-Job Training (away from the place of work)
• Special Lecture-cum-Discussion
• Conference
• Case Study
• Sensitivity Training
• Special projects
• Committee assignment.

14. Methods and Techniques of Executive Development
On the Job Techniques
• Coaching
• Under Study
• Position Rotation
• Project Assignment
• Committees
• Multiple Management
• Selected Reading

15. Methods and Techniques of Executive Development
Off the Job Techniques
• Lectures
• Case Studies
• Group Discussions
• Conference
• Role Playing
• Management Games
• In Basket Exercise
• Sensitivity Training
• Programmed Instruction

16. • Step 1: Prepare the learner
– Put the learner at ease—relieve the tension.
– Explain why he or she is being taught.
– Create interest, encourage questions, find out what the learner
already knows about this or other jobs.
– Explain the whole job and relate it to some job the worker
already knows.
– Place the learner as close to the normal working position as
possible.
– Familiarize the worker with equipment, materials, tools, and
trade terms.

17. • Step 2: Present the operation
– Explain quantity and quality requirements.
– Go through the job at the normal work pace.
– Go through the job at a slow pace several times, explaining each
step. Between operations, explain the difficult parts, or those in
which errors are likely to be made.
– Again go through the job at a slow pace several times; explain
the key points.
– Have the learner explain the steps as you go through the job at a
slow pace.

18. • Step 3: Do a tryout
– Have the learner go through the job several times, slowly,
explaining each step to you.
– Correct mistakes and, if necessary, do some of the complicated
steps the first few times.
– Run the job at the normal pace.
– Have the learner do the job, gradually building up skill and
speed.
– As soon as the learner demonstrates ability to do the job, let the
work begin, but don’t abandon him or her.

19. • Step 4: Follow up
– Designate to whom the learner should go for help.
– Gradually decrease supervision, checking work from time to time
against quality and quantity standards.
– Correct faulty work patterns before they become a habit. Show
why the learned method is superior.
– Compliment good work; encourage the worker until he or she is
able to meet the quality and quantity standards.

20. Process of Executive Development
• Analysis of Development Needs
• Appraisal of Present Managerial Talent
• Inventory of Executive Manpower
• Planning Individual Development Programmes
• Establishing Training and Development
Programmes
• Evaluating Development Programmes

21. Career Development Initiatives

24. Job Evaluation
• According to BIM, Job evaluation is “the
process of analysis and assessment of jobs to
ascertain reliably their relative worth using the
assessment as the basis for a balanced wage
structure”
• Job evaluation begins with job analysis and
ends up with the classification of jobs
according to their worth. A job cannot be
evaluated unless and until it is analyzed.

25. Objectives of Job evaluation
• 1. To Determine equitable wage differentials between
different jobs in the organization
• 2. To eliminate wage inequities
• 3.To develop a consistent wage policy
• 4. To provide a framework for periodic review and
revision of wages
• 5. To provide a basis for wage negotiations
• 6. To enable management to gauge and control the
payroll costs
• 7. To minimize wage descriptions on the basis of age,
sex, caste, region, religion , creed etc

26. Job Evaluation
• Job Evaluation can be classified in to two
categories
• 1. Non-quantitative methods:
– a. Ranking or Job Comparison
– b. Grading or Job Classification
• 2. Quantitative methods:
– a. Point Rating
– B. Factor Comparison

27. Compensation management is the process
to establish & maintain an equitable wage
& salary structure & an equitable cost
structure .It involves job evaluation, wage &
salary survey, profit sharing & control of
pay costs.

28. • All forms of financial returns, tangible services &
benefits that employees receive as a part of an
employment relationship is called
Compensation.
OR
• Compensation is what employees receive in
exchange for their contribution to the
organization.

29. •An employee’s standard of living,
status in the society, Motivation, Loyalty
and Productivity depend upon the
compensation he/she receives.
•For the employer to employee
remuneration is significant because of
it’s contribution to cost of production.

30. • Compensation can be offered by an organization
both directly( Base Pay & Variable Pay) and
Indirectly (Benefits).
1. Base Pay -Basic compensation an employee
gets usually as a wage or salary.
2. Variable Pay -Compensation linked directly
to the performance.
3. Benefits- Indirect rewards given as a part of
organizational membership.

31. Goals of Compensation Management
1. Internal Equity- Ensures that more
difficult jobs are paid more.
2. External Equity- Aims to
compensate fairly in comparison to
similar jobs in labor market.
3. Individual Equity-Equal Pay for
equal work.
.

32. Some More Goals of Compensation Management
• A. To attract talent
• B. To retain talent
• C. Ensure equity
• D. To motivate new & desired behavior
• E. Control cost
• F. Comply with legal rules
• G. Ease of operation
.

33. Factors Influencing Employee Compensation
1. External Factors
i. Labor Market
ii. Cost of Living
iii. Labor Laws
iv. Society
v. Economy
.

34. Factors Influencing Employee Compensation
2. Internal Factors:
i. Business Strategy
ii. Job Evaluation & Performance Appraisal
iii. Employee
.

35. Compensation Strategy
Policies
Techniques Objectives
ALIGNMENT Work analysis Description INTERNALSTRUCTURE
COMPETITVENESS Market Surveys PAY STRUCTURE
CONTRIBUTION Seniority Performance INCENTIVE PROGRAMS
/Merit Based
MANAGEMENT Costs Communications EVALUAION
EFFICIENCY
Performance
Quality
Customers
Costs
FAIRNESS
COMPLIANCE

36. Compensation Strategy
Dependent of Internal Pay Structure
•Levels
•Differentials
•Criteria
-Content and Value
-Use Value and Exchange Value
-Job and Person Based
Internal Alignment

37. Compensation Strategy
External Competitiveness
Factors Shaping External Competitiveness
Labour Market
•Nature of Demand
•Nature of Supply
Product Market Factors
•Degree of Competition
•Level of Product Demand
Organisation Factors
•Industry, Strategy, Size
•Individual Manager
EXTERNAL
COMPETITIVENESS

38. Compensation Strategy
Contribution
Seniority Based
Performance Based
Merit Based

39. Compensation Strategy
Management
Managing Labour Cost
-Controlling Employment
-Controlling av. Cash Compensation
Communication
-Managing the Massage
Pay
-Change Agent in Restructuring

40. Rewards
• Reward is a composite of all
organizational mechanism and strategies
used to finally acknowledge employees
behavior and performance.

41. Rewards
• Motivate employees to perform effectively.
• Motivate employees to join the
organization.
• Motivate employees to continue to work.
• Motivate employees by indicating their
position in the organization structure.

42. Monetary Rewards
• A number of monetary rewards are offered
to employees to obtain short term and
long term commitment.
• Types of monetary rewards given are;
base pay, variable pay, share ownership,
bonus, etc.

43. Non-Monetary Rewards
• Non-monetary rewards cater mainly to
fulfill the psychological needs of the
employees.
• Types of non monetary rewards given to
employees are; recognition, opportunities
to develop skills, quality of work life, etc.

44. Praise/recognition from supervisors
 Challenging work assignments
Promotions and lateral moves
 Paid leave to employees
Non-Monetary Rewards

45. Intrinsic Rewards
• Rewards may be "intrinsic"
– Opportunity for achievement
– Giving of challenging responsibility
– Opportunity for advancement
– Opportunity for growth in stature and peer recognition
• Each of these must be
– Timely, appropriate, worthwhile, offered sincerely
– And done in public!

46. Extrinsic Rewards
• Extrinsic rewards are said to be
– Pay
– Working environment or conditions
– Status
– Security
• With the constant potential for
– Special training
– Promotion, and
– Pay raises

47. Types Of Compensation
Supplementary
Compensation
(Variable Pay& Fringe Benefits)
Base Compensation
(Wage & Salary)

48. Difference between base & supplementary Compensation
Base Compensation
Vs
Supplementary Compensation

49. Fringe Benefits
Fringe Benefits are supposed to be benefit at the
fringes, or edge of the main pay. Now this has
been replaced by simple benefits which forms a
substantial part of the total compensation.
“Fringe Benefits are the legal & voluntary efforts of
employers for improving the standard of living &
working conditions of their workers”.
…………Encyclopedia of social sciences

50. Fringe Benefits
Fringe Benefits are indirect compensation because
they are usually extended as a condition of
employment & are not directly related to
performance.

51. Fringe Benefits
Classification
• Disability Income Continuation
• Loss of Job Income Continuation
• Deferred Income
• Spouse or family income continuation
• Health & accident protection

52. Fringe Benefits
Classification
• Property & liability protection
• Employee Services- (a) Pay for time not worked
(b) time off without pay
( c) income equivalent
payments &
reimbursements for
incurred expenses

53. “Perquisite“
“Perquisite" includes
(i) the value of rent-free accommodation provided
to the assessee by his employer;
(ii) the value of any concession in the matter of
rent respecting any accommodation provided
to the assessee by his employer;
(iii) any sum paid by the employer in respect of any
obligation which, but for such payment, would
have been payable by the assessee; and

54. “Perquisite“
(iv) any sum payable by the employer, whether directly or
through a fund, other than a recognized provident fund
or an approved superannuation fund or , as the case
may be, section 6C of the Employees' Provident Funds
and Miscellaneous Provisions Act, 1952 (19 of 1952), to
effect an assurance on the life of the assessee or to
effect a contract for an annuity
(v) the value of any other fringe benefit or amenity as may
be prescribed

55. “Perquisite“
(vi) The value of any benefit or amenity granted or provided
free of cost or at concessional rate in any of the following
cases:-
(a) by a company to an employee who is a director
thereof;
(b) by a company to an employee being a person who
has a substantial interest in the company;
(c) by any employer to an employee to whom the
provisions of paragraphs (a) and (b) of this sub-clause
do not apply and whose income under the head
"Salaries " (whether due from, or paid or allowed by, one
or more employers), exclusive of the value of all benefits
or amenities not provided for by way of monetary
payment, exceeds fifty thousand rupees;

56. “Perquisite“
Provided that nothing contained in this sub-clause
shall apply to the value of any benefit provided
by a company free of cost or at a concessional
rate to its employees by way of allotment of
shares, debentures or warrants directly or
indirectly under any ESOP of the company,
offered to such employees in accordance with
the guidelines issued in this behalf by the
Central Government

57. Cafeteria Style Benefits
A Cafeteria style benefits program allows
employees to choose from a selection of
employer–provided benefits.
Types-
Modular Plans
Core Plus Options Plan
Flexible Spending Accounts

58. Why Training is needed?
• To familiarize the employee with the company’s culture
• To increase the employee’s quantity and quality of output
• To enable the employee to do new jobs and prevent of his
old skills become obsolete
• To prepare the employee for promotion to higher jobs
• To reduce supervision, wastage and accidents
• To build second line workers

59. Importance of Training
• 1. Higher productivity
• 2. Better quality of work
• 3. Less learning period
• 4. Cost Reduction
• 5. Reduced supervision
• 6. Low accident rate
• 7. High morale
• 8. Personal Growth
• 9. Organizational Climate

60. Steps in Training Programme
• 1. Identifying Training Needs- Present
Performance – Desired Performance
(Accepted Level of Performance)
• 2. Setting Training Objectives and Policy
• 3.Designing Training Programme
• 4. Conducting the Training
• 5. Follow up and Evaluation

61. Training Vs Development
Training Development
• Increases job skills Shapes attitudes
• For operating employees For executives
• Short term perspective Long term perspective
• Job-centred Career-centred
• Role of supervisor is important Internal motivation for self development

62. Industrial Relations
The term ‘industrial relations’ refers to the relationship between
management and employees or among employees and their
organization that arise out of employment. In modem usage, the
phrase ‘industrial relations’ includes the while gamut of matters that
arise due to the continuing relationship between the employers and
the employees. There are three parties in industrial relations,
namely.
• Employers and their organizations,
• Employees and their organizations,
• Appropriate Government.

63. Objectives of Industrial Relations
•To promote healthy labour-management relations.
•To protect the interests of employees as well as management by securing
the highest level of mutual understanding and goodwill among them.
•To raise productivity to a higher level which is the need of the day and to
contribute to the economic development of the country.
•To check industrial conflicts and minimize the occurrence of strikes.
Lockouts and gheraos.
•To minimize labour turnover and absenteeism by providing job satisfaction
to the workers.
•To facilitate and develop industrial democracy based on workers’
partnership in management of industry.
•To establish government control over industries to regulate production and
industrial relations.

64. Significance of Good Industrial Relations
•
• Industrial peace
• Higher Productivity
• Industrial Democracy
• Collective Bargaining
• Fair Benefits to Workers
• High Morale
• Facilitation of Change

65. Causes of Industrial Disputes
.
• Wages and allowances
• Personnel matters and retrenchment.
• Bonus.
• Indiscipline and violence.
• Leave and house of work
• Miscellaneous causes.

66. Industrial Relations
Industrial Unrest
• Industrial unrest refers to discontent and conflict between employers
and employees. It can take the shape of strike, lock-out, gherao,
picketing, etc.
Machinery for Prevention of Industrial Disputes
• Workers’ participation
• Collective bargaining
• Grievance procedure
• Tripartite bodies
• Code of discipline
• Standing orders

67. Industrial Relations
Machinery for settlement of Industrial Disputes
• Conciliation
• Court of Enquiry
• Voluntary arbitration
• Adjudication

68. Industrial Relations
Measures to Improve Industrial Relations
• Progressive Management
• Strong and stable Union
• Atmosphere of Mutual Trust
• Mutual Accommodation
• Sincere Implementation of Agreements
• Worker’s Participation in Management
• Sound Personnel Policies
• Government’s Role

81. Any Computer-based Info Systems (HRIS included)
• Hardware
• Software
• Databases
• Telecommunication
• Procedures
• People
Consists of...

82. What is a “Human Resource InformationSystem”
• The application of computers to
employee-related record keeping and
reporting, and management decision
making .
• The system of gathering, classifying,
processing, recording and disseminating
the information required for efficient and
effective management of human
resources in the organization.

83. What is a “Human Resource InformationSystem”

85. What is a “Human Resource InformationSystem”

86. What is a “Human Resource InformationSystem”

93. Why HRISs Sometimes Fail
• Unclear goals/objectives
• System solves the wrong
problem
• Improper vendor/product
selection
• Low user involvement
• Planning overlooks impact
on clerical procedures
• Lack of HR/functional
expertise in designing
• Underestimate conversion
effort
• Management- unrealistic
expectations
• Lack of overall plan for
record mgt.
• Lack of flexibility and
adaptability
• Misinterpret HR
specifications
• Poor communication
between HR/IS
• Inadequate testing

94. Why are Carefully Developed Info Systems Important to HR?
• Better safety
• Better service
• Competitive Advantage
• Fewer Errors
• Greater Accuracy
• Higher Quality Products
• Improved Health Care
• Improved Communication
• Increased Efficiency
• Increased Productivity
• More efficient
administration
• More opportunities
• Reduced labor
requirements
• Reduced costs
• Superior managerial
decision making
• Superior control

95. What is an HR audit?
An HR audit is a process to review
implementation of your institutions policies
and procedures, ensure compliance with
employment law, eliminate liabilities,
implement best practices and educate your
managers.