Hrd unit 2

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Dr. A. Anbazhagan, Professor/Mgt Studies/ PSV College of Arts and Science/India
Lecture notes onHumanResource Development Course
Unit - II
Individual and Group Behavior – Acquisition of Human Resources – Development
oriented appraisal system – Interpersonal Feedback and Performance Counseling –
Giving and Receiving Feedback – Developing Dyadic Relationship through effective
counseling.
MEANING OF INDIVIDUAL BEHAVIOR
Individual behaviour can be defined as a mix of responses to external and internal stimuli. It
is the way a person reacts in different situations and the way someone expresses different
emotions like anger, happiness, love, etc.
IMPACT OF INDIVIDUAL BEHAVIOUR:
 Few may feel comfort with rules, few may not.
 Few may prefer democratic leaders and few may autocratic leaders.
 Few may enroll themselves in an union, some may don't.
 Expectations of wages also differ.
The various factors that leads to individual differences are physical characteristics,
personality, attitude, memory, etc. the five important models of individual behaviour,
i.e. (1) Rational Economic Man, (2) Social Man, (3) Organizational Man, (4) The Self
Actuating Man, and (5) Complex Man.
1. RATIONAL ECONOMIC MAN:
From the organisational perspective, managers had, for a long time, viewed their employees
as rational beings who are primarily motivated by money. They took the ‘ECONOMIC
MAN’ and ‘RATIONAL MAN’ approach to understand and predict the human behaviour.
This model is based on classical organisation theory.
The Scientific Management Movement was based on the belief that by rationally explaining
the one best way to do things and offering incentives to workers in the form of piece rates and
bonuses, organisational output can be increased. Psychologists have also studied this model
for predicting human behaviour. For example, McGregor’s assumptions of Theory X reflect
this model.
The basic assumptions of the concept of ‘Rational Economic Man’ are as follows:
(i) People are motivated primarily by economic incentives. They will do things which get
them the greatest economic gain.
(ii) As the organisation controls the economic incentives, human beings are essentially
passive agents, who are manipulated, motivated and controlled by the organisation.
(iii) The feelings of the people are essentially irrational and must be controlled to achieve
rationality and self interest.
(iv) Organisations can and must be designed in such a way so as to neutralize and control
people’s feelings and therefore their unpredictable traits.
In this model, people are induced to produce more by providing them with economic
incentives. In this case, there is no organisation-employees conflict because both are

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satisfying their needs simultaneously. Management is getting more production and people are
getting more money.
Drawbacks:
(i) As this model is based on the classical organisation theory, it suffers from the
shortcomings inherent in that theory and do not suit the present day organisation.
(ii) The economic incentives can work till the man is not reasonably satisfied by the need of
money.
Though, the need of money is inexhaustible and the man will never have enough, but after a
certain stage, only money will not be sufficient for him. He will have some psychological
needs also, which cannot be fulfilled by the organisation in this case. Therefore, it can be
stated that the whole assumption of Rational Economic man are not sufficient in
understanding and predicting human behaviour.
2. SOCIAL MAN:
With the passage of time, the advocates of human relations school recognized that there is a
lot more to human behaviour than just being social man economic and rational. Advocates of
this school considered the worker as a social man. They recognized that man is a part of the
social group he is influenced by the social forces and seeks satisfaction of the needs which
are related to the maintenance of his social relationships. Eltan Mayo conceived the concept
of the social man when he carried out Hawthorne studies during 1927-32.
From the reports of Hawthorne experiments the following assumptions about human beings
can be drawn:
(i) Human beings are basically motivated by social needs and all their efforts are directed
towards getting this satisfaction by maintaining relationships with others.
(ii) A human being is more responsive to the pressures and sanctions of his social group than
to the incentives and controls of the management. The reason is that he values social
relationship higher than his economic motives which are directly under the control of
management.
(iii) The amount of work to be done by a worker is not determined by his physical capacity or
by the management but by the social norms.
(iv) Generally people do not act or react as individuals but as members of a group.
(v) Informal leaders play an important role in setting and enforcing the group norms.
(vi) Management should change and organize work in such a way that it provides more
belongingness not only in terms of interpersonal and group relationships, but also man’s
relationship with his job.
The type of managerial strategy that is to be applied in the case of social man is quite
different as compared to the strategy to be applied in case of Economic-Rational man. The
total system of social man is directed towards people.
(v) Informal leaders play an important role in setting and enforcing the group norms.
(vi) Management should change and organize work in such a way that it provides more
belongingness not only in terms of interpersonal and group relationships, but also man’s
relationship with his job.

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The type of managerial strategy that is to be applied in the case of social man is quite
different as compared to the strategy to be applied in case of Economic-Rational man. The
total system of social man is directed towards people.
The following changes were required in the managerial strategy.
(i) Earlier the management was conceived only with the output given by the workers. In this
approach, the management had to pay attention to the workers also as human beings.
(ii) Earlier, the only concern of die management was to provide economic incentives to the
workers or in other words to look after their economic needs, but under this concept, the
psychological needs were also to be considered.
(iii) Another required change was to analyze and motivate human behaviour in terms of
groups rather than on individual basis.
(iv) Another change which was required was in the behaviour of the manager instead of being
the controller of behaviour he was supposed to act as the supporter of workers.
The social man approach was also considered somewhat simplistic.
As time passed by, organisational behaviour theorists such as Argyris (1957), Likert (1961,
1967) and McGregor (1960) argued that people in organisations need opportunities to use
their individual creativity and must have their growth needs met in order to function
effectively.
3. ORGANISATIONAL MAN:
Organisation man is an extension of social man. The concept of organisation man was
introduced by William Whyte. He believed that it is very important for a person to be loyal to
the organisation and cooperative with the fellow workers. Any person who believes in this
value system and acts in this way is an organisation man. The basis of this concept is and that
every individual should sacrifice his individuality for the sake of the group and the
organisation.
This idea was initially suggested by Henry Fayol, when he suggested that individual interest
should be subordinated to the general interest. Whyte had explained three major propositions,
on which this concept of organisation man is based.
These propositions are as follows:
(i) The first proposition is that individual by himself is isolated and meaningless. The group is
the source of activity. Individuals create only when they move in a group. A group helps to
produce a whole that is greater than the sum of its parts.
(ii) The ultimate need of every individual is belongingness. He wants to belong to his
families, friends, relatives, colleagues and other members of the society as a whole. Whyte
says that there should be no conflict between man and society.
(iii) The goal of belongingness is achieved with the help of science. Whenever there is a
conflict between the needs of the society and the needs of the individual, an equilibrium can
be created by applying the methods of science. Science can help in removing all the obstacles
to consensus.
The organisation man concept emphasis, that there is no conflict between the individual
interest and the interest of the organisation. Even if there is any conflict, individual interest
will be sacrificed in favour of the group interest to remove the conflict. However, there is a
basic assumption behind this concept.

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The assumption is that management will take care of the individual interests. It would be the
duty of the management to satisfy the needs of the individuals. People will be willing to
sacrifice their interests for the organisation only if they are positive that the organisation
would take care of them.
4. THE SELF ACTUATING MAN:
The concept of self-actuating man is a further extension of social man and the organisation
man models. The social man concept assumes that the formation of social groups is the basis
of satisfaction for the individuals. But as against this the self-actuating man assumes that
man’s inherent need is to use his capabilities and skills in such a way that he should have the
satisfaction of creating certain things. The earlier models do not allow him to satisfy his self-
actuating needs.
Following are the main assumptions about the self-actuating man:
(i) The basic assumption about this concept is that the various needs of a man can be put in
the order of priority. For example, MASLOW has put various needs in a hierarchy: Every
unsatisfied need is a motivational factor for him. Self-actualization according to this diagram
is the ultimate goal, because it is last in the hierarchy and by the time his goal is achieved, all
the other needs of the man are also satisfied.
(ii) In the process of self-actualization, there are various changes in the behaviour of the
individual and he moves from immaturity to maturity.
(iii) Another assumption is that a man is primarily self-motivated and self-controlled. Any
incentives given by the management cannot motivate him after a certain level and any control
imposed on him cannot threaten him.
(iv) The earlier models were based on the assumption that a man has got immature
personality. However, the reality is that if a man is left free, he will put in his maximum
efforts.
These assumptions are generally based upon McGregor’s theory Y and Argyris’s immaturity-
maturity theory. To satisfy a self actuating man what are required are all the managerial
actions meant to satisfy the social man with some additional features.
5. COMPLEX MAN:
Complex man presents the real picture of human picture of human behavior. All the previous
models make very simplistic assumptions about people and their behaviour.

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Researchers have proved that these assumptions are not correct as explained below:
(i) The earlier models assume that man will always behave according to certain set patterns.
But research has indicated that there are many complex variables, which determine the
human behaviour. These variables are quite unpredictable. So the human behaviour which is
based on these variables cannot follow a set pattern.
(ii) The behaviour of man can be understood and predicted in the given conditions, depending
upon the assumptions made. But research has indicated that even if cause-effect relationship
is established between the variables and behaviour, it is not easy to understand and predict the
individual behaviour because of the individual differences. It is not necessary that everyone
will behave accordingly. Most behaviour in the organisation can be understood by taking
assumptions of complex man.
Following are a few assumptions about the complex man:
(i) People are not only complex but are also highly variable. Though their needs can be
arranged in a hierarchy, but this hierarchy is also not universal. Different people may have
different hierarchies.
(ii) People are capable of learning new motives through their organisational experiences.
(iii) People’s motives in different organisations or different sub parts of the same organisation
may be different.
(iv) People can respond to many different kinds of management strategies.
Though this model is quite complex, it indicates the real situation and lays emphasis on the
fact that human behaviour is not as simple as assumed in the previous models. Hence current
thinking on the subject is to take a ‘complex man’ approach and recognize that different
individuals have different needs and personality traits and if there is a proper match between
these and the environment they operate in, functional behaviour will emerge
DETERMINANTS OF INDIVIDUAL BEHAVIOUR:
1. Biographical factors:
All the human beings have certain characteristics which are genetic in nature and are
inherited. These are the qualities which the human beings are born with. These are the
characteristics which cannot be changed; at the most, these can be refined to some extent. If
the managers know about the inherited qualities and limitations of the persons, they can use
their organisational behaviour techniques more effectively.
a) Gender
Research proves that men and women both stand equal in terms of job performance and
mental abilities; however, society still emphasizes differences between the two genders.
Absenteeism is one area in an organization where differences are found as women are
considered to be the primary caregiver for children. A factor that might influence work
allocation and evaluation in an organization is the manager’s perception and personal values.
For example − an organization encourages both genders to work efficiently towards the
company’s goal and no special promotion or demotion is given or tolerated for any specific
gender.

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b) Age
The employee turnover among the older employees is very low as compared to the employees
in their twenties and thirties. Absenteeism among the middle aged employees is les as
compared to the young and old employees.
c) Education
The level of education of an individual does influence behavior. The general belief is that
education disciplines a person. An educated employee knows how to get things done in the
workplace without incurring anyone’s displeasure. He does not lose temper but quietly
achieves his goals. The influence of level of education on a person’s behavior may also be
explained from another angle. A highly qualified person when offered with lower level job
may not show enthusiasm in his job. Such a person deserves a better placement. On the other
hand, if a person with lower qualification is placed in a higher level job he cannot perform
well in his duties. Thus, Selection and placement of the right person for the right job is very
much important.
d) Individual Abilities
It refers to an individual’s capacity to perform his job. An individual’s abilities are to two
kinds, namely, intellectual and physical.
i) Intellectual Abilities: The abilities required to perform mental work are
known as mental abilities. They include number aptitude, verbal
comprehension, perceptual speed and inductive reasoning. The degree of
intellectual abilities required will normally depend upon the level in the
organisation where the individuals are working.
ii) Physical Abilities: These include stamina, strength and similar skills. Physical
abilities are more important for doing less skilled and more standardised jobs
in the lower levels of the organisation.
2. Psychological factors:
a) Attitude
In the context of the workplace, attitude is the feeling of an employee about his job, his
superiors and fellow-employees. Attitude may be positive or negative. An employee with a
positive attitude likes his job, carries out the tasks assigned by his superior and maintains
friendly relationships with the fellow-employees. Employees with a negative attitude, on the
other hand, are insincere in their work. They quarrel frequently with their superiors and
fellow-workmen.
b) Perception
Perception is the process of knowing or understanding. A given situation is perceived
differently by different people. If the perception of a person is correct he/his organization
stands to benefit. If it turns out to be incorrect he/his organization loses. Every organization
requires people who are in a position to perceive things right. A person without the capacity
to make correct perceptions has to listen to those who possess such a capacity. So perception
of individuals greatly influence their behaviour.

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c) Values
The ‘values’ of a person indicate to him as to what is good and what is bad. Different people
have different values. For example, some people are spendthrifts while others consciously
save. Some contribute to charity while others do not. In the workplace the values of an
individual do influence his behaviour. For example, if an employee’s value system tells him
that he should not strike work to express his grievances to the employer, he will not take part
in strikes. Likewise, an employee, who wants to be sincere in his work, will not be whiling
away his time.
3. Environmental factors:
The external environment has an effective role in influencing the individual behaviour.
 Employment level- Employment opportunities available within the country act as a
major determinant of individual behaviour. In case of less employment opportunities,
he/she will remain stick to same job level irrespective of how much satisfaction is
attained. However, if there are more employment opportunities available then
employees will shift to other jobs.
 Wages Rate- Monetary compensation is a major factor that every employee considers
before joining any organization. Therefore, a decision whether to stay in a particular
company or shift anywhere else is taken on the basis of wages he/she is getting.
 General Economic Environment- Economic cycle in a country greatly influences
the behaviour of individual in an organization. They are subject to retrenchment and
layoffs. Job security and a stable income are the most relevant factors of motivation
for these type of employees. Whereas, employees of public sector undertakings are
not affected by economic position within the country as they receive their fixed
salaries irrespective of economic conditions.
 Political Factors- Political factors indirectly influence the behaviour of an individual.
In a politically stable environment, there will be large opportunities of steady job
positions. It will provide better freedom to individual who will influence their career
choice, performance and jib design.
4. Organizational factors:
Wide range of organizational factors influence behaviour of individual which are listed
below: –
 Physical Facilities- Physical environment at work place have a great influence on
behaviour of individual. It comprises of factors like lighting, cleanliness, heat, noise
level, office furnishing, strength of workers etc.
 Structure and Design- It is concerned with set-up design of departments within an
organization. Individual behaviour is influenced by where an individual perfectly fits
in a hierarchy of organization.
 Reward System- Fair reward system adopted by company for compensating its
employees enhances the overall performance and behaviour of individual.

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GROUP BEHAVIOUR:
Group is defined as a cluster of persons who all have came together to pursue activities of
common interests. In a group, members must be aware of one another. Actions performed by
a group as a whole or by individuals when part of a group. In the latter case, it applies
particularly to those actions that are influenced (either directly or indirectly) by the group and
are atypical of actions performed by the same individuals when alone.
REASONS TO FORM A GROUP:
1. Safety and security needs
2. Sense of belonging (tendency to live in group)
3. Work extraction power
4. Job monotony (relaxation in working environment)
5. Goal accomplishment
6. Informational need.
TYPES OF GROUP
There are various types of groups exists in organizations. The following are a few types of
groups.
1. Functional group
A functional group is created by the organization to accomplish specific goals within an
unspecified time frame. Functional groups remain in existence after achievement of current
goals and objectives. Examples of functional groups would be an academic department and
an accounting department.
2. Command group
Command groups are specified by the organizational chart and often consist of a supervisor
and the subordinates that report to that supervisor. It is the collection of employees who
report to the same supervisor. The existence of formal groups is represented on organizational
charts as departments (such as finance, examination, academic, administrate). The leaders of
the command group play an important role in determining the effectiveness of these groups.
3. Interest group
Interest groups usually continue over time and may last longer than general informal groups.
Members of interest groups may not be part of the same organizational department but they
are bound together by some other common interest. The goals and objectives of group
interests are specific to each group and may not be related to organizational goals and
objectives. An example of an interest group would be students who come together to form a
study group for a specific class.
4. Committees
The other form of formal group is committee. It can be of permanent or temporary nature.
Planning committee, finance committees are of permanent nature, they keep working all
along and have a designated authority to control the work. There are temporary committees,
which are formed to accomplish a one-time works like committees formed at district levels to
issue identity cards to citizens. They are formed for specific work and disbanded once they
have completed their work.
5. Formal group

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Formal group is designated work group defined by the organizational structure. It is
collection of employees who work together to contribute towards achievement of
organizational objective. For example, aircrew. Formal groups are formed based on the work
and human resources required by skill, knowledge and experience to achieve organizational
task.
6. Informal group
Informal groups are groups that are not formally organized in the work system to get the job
done but develop on their own randomly at workplaces because of common interest and usual
liking of the group members. For example members of production department, body
manufacturing department, HR department members and few individual from finance dept.
may form a friendship group. This development takes place because of the interaction they
have with each other during the official work. Members from within one group or members
from different departments or even an organization can form an informal group.
7. Family group
Family Group means, with respect to a Person who is an individual, such Person’s spouse and
descendants (whether natural or adopted), and any trust, family limited partnership, limited
liability company or other entity wholly owned, directly or indirectly, by such Person or such
Person’s spouse and/or descendants that is and remains solely for the benefit of such Person
and/or such Person’s spouse and/or descendants and any retirement plan for such Person.
8. Friends group
Friendship groups are formed by members who enjoy similar social activities, political
beliefs, religious values, or other common bonds. Members enjoy each other’s company and
often meet after work to participate in these activities. For example, a group of employees
who form a friendship group may have a yoga group, or a kitty party lunch once a month.
STAGES OF GROUP DEVELOPMENT
Tuckman (2011) explained that there are five stages of group development: forming,
storming, norming, performing, and adjourning. These five model stages can improve a new
team become effective more quickly.
1. Forming stage is a situation that members of a group don’t truly understand about
their duty, regulations and rules. The members cannot finish their job without leader
or manager because they lack of confidence. They have to be encouraged and
motivate them that it can help them to feel as a significant part of a team.
2. Storming stage is a situation that it often starts when team members prefer to use
conflicting work styles. People may work in different ways for all sorts of reasons, but
if differing working styles cause unforeseen problems, they may become
frustrated. Moving from this stage requires that the leader of team should strong
ability to help all members accept each other and respect in each individual task.
3. Norming stage is a period that team members know one-another better, they may
socialize together, and they are able to ask each other for help and provide
constructive feedback. At this point a group need to provide a delegate for making
agreement and consensus.

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4. Performing stage is that all members can achieve the duty without any problems, but
they want to develop the term in regard to interpersonal development. A leader
should concentrate on developing performance of the team.
5. Adjourning stage is the final task when especially a group is successful. The leader
of the team must be appreciated with the achievement and show all member that their
accomplishment is so proud. This stage helps increase motivation to members to
move on next thinks or another task.
PURPOSE OF GROUP DEVELOPMENT:
1. Mutual acceptance
2. Communication and decision – making
3. Motivation and productivity
4. Control and organization
CHARACTERISTICS OF GROUP DEVELOPMENT:
a) Role play of individuals
b) Cohesiveness
c) Leadership
d) Behaviour of individuals
ACQUISITION OF HUMAN RESOURCES
Understanding towards Job Analysis
Job Analysis is the procedure through which you determine the duties and nature of the jobs
and the kinds of people (in terms of skills and experience) who should be hired for them.’ It
provides you with data on job requirements, which are then used for developing job
descriptions (what the job entails) and job specifications (what kind of people to hire for the
job).
The Definition of Job Analysis
According to Michael L. Jucius, “Job analysis refers to the process of studying the
operations, duties and organizational aspects of jobs in order to derive specifications or as
they called by some, job descriptions.”

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Purpose of Job Analysis
The purpose of Job Analysis is to establish and document the 'job relatedness' of employment
procedures such as training, selection, compensation, and performance appraisal.
1. Determining Training Needs
 Job Analysis can be used in training/"needs assessment" to identify or develop:
 training content,
 assessment tests to measure effectiveness of training,
 equipment to be used in delivering the training,
 methods of training (i.e., small group, computer-based, video, classroom...).
2. Compensation
Job Analysis can be used in compensation to identify or determine:
a) skill levels
b) compensable job factors
c) work environment (e.g., hazards; attention; physical effort)
d) responsibilities (e.g., fiscal; supervisory)
e) required level of education (indirectly related to salary level)
3. Selection Procedures
Job Analysis can be used in selection procedures to identify or develop:
a) job duties that should be included in advertisements of vacant positions;
b) appropriate salary level for the position to help determine what salary should be
offered to a candidate;
c) minimum requirements (education and/or experience) for screening applicants;
d) interview questions;
e) selection tests/instruments (e.g., written tests; oral tests; job simulations);
f) applicant appraisal/evaluation forms;
g) Orientation materials for applicants/new hires.
4. Performance Review
Job Analysis can be used in performance review to identify or develop:
a) goals and objectives
b) performance standards
c) evaluation criteria
d) length of probationary periods
e) duties to be evaluated
II. JOB DESCRIPTION
Job description is the immediate product of job analysis process; the data collected through
job analysis provides a basis for job description and job specification. Job Description: is a
written record of the duties, responsibilities and requirements of a particular job. It is
concerned with the job itself and not with the job holders. It is a statement describing the job
in such terms as its title, location, duties, working conditions and hazards.

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Flippo has Defined Job Description as, “A job description is an organized, factual statement
of duties and responsibilities of a specific job. In brief, it should tell what is to be done. How
it is done why. It is a standard of function, in that defines the appropriate and authorized
content of a job.
Purpose of Job description
It serves a number of purposes, whether for internal management, performance reviews,
recruitment, or something else; consequently, the length and structure of a job description
may also vary greatly. Objective of a job description is to have a outline of duties and
responsibilities. It should also provide insight into why a person should be attracted to this
role and what people should not consider this position for their next career move. Job
description is a written statement of the nature and content o f a particular job.
Example of a Job Description

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JOB SPECIFICATION
Job Specification it states the minimum acceptable qualifications that the incumbent must
possess to perform the job successfully. Based on the information acquired through job
analysis, the job specification identifies the knowledge, skills, and abilities needed to do the
job effectively. Individuals possessing the personal characteristics identified in the job
specification should perform the job more effectively than individuals lacking these personal
characteristics.
Filippo has defined job specification as, “Job specification is a statement of the minimum
acceptable human qualities necessary to perform a job properly. It is a standard of personnel
and designates the qualities required for acceptable performance.”
In is clear from the above definitions that job specification is a statement of summary of
personnel requirements for a job. It may also be called “standard of personal for the
selection”.
A Job Specification should include:
a) Physical characteristics, which include health, strength, endurance, age, height, weight,
vision, voice, eye, hand and foot co-ordination, motor co-ordination, and colour
discrimination.
b) Psychological and social characteristics such as emotional stability, flexibility, decision
making ability, analytical view, mental ability, pleasing manners, initiative, conversational
ability etc.
c) Mental Characteristics such as general intelligence, memory, judgement, ability to
concentrate, foresight etc.
d) Personal Characteristics such as sex, education, family background, job experience,
hobbies, extracurricular activities etc.
Example of a Job Specification

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HUMAN RESOURCE PLANNING
HRP is important for helping both organizations and employees to prepare for the future. The
basic goal of HRP is to predict the future and based on these predictions, implement
programs to avoid anticipated problems.
HRP is the process of examining an organization’s or individual’s future HR needs for
instance, what types of skills will be needed for jobs of the future compared to future HR
capabilities (such as the types of skilled employees you already have) and developing HR
policies and practices to address potential problems. (eg.) implementing training programs to
avoid skill deficiencies.
OBJECTIVES OF HRP
1. Forecasting HR Requirements:
HRP is essential to determine the future needs of HR in an organization. In the absence of this
plan, it is very difficult to provide the right kind of people at the right time.
2. Effective Management of Change:
Proper planning is required to cope with changes in the different aspects which affect the
organization. These changes need continuation of allocation / reallocation and effective
utilization of HR in organization.
3. Realizing the Organizational Goals: In order to meet the expansion and other
organizational activities the organizational HR planning is essential.
4. Promoting Employees: HRP gives the feedback in the form of employee data which can be
used in decision-making in promotional opportunities to be made available for the
organization.
5. Effective Utilization of HR: The data base will provide the useful information in
identifying surplus and deficiency in human resources.
IMPORTANCE OF HRP
HRP is the sub-system in the total organizational planning. Organizational planning includes
managerial activities that set the company’s objective for the future and determines the
appropriate means for achieving those objectives. The importance of HRP is elaborated on
the basis of the key roles that it is playing in the organization.
1. Future Personnel Needs: HR planning is significant because it helps to determine the
future personnel needs of the organization.
2. Part of Strategic Planning: HRP has become an integral part of strategic planning. It
provides inputs in strategy formulation process in terms of deciding whether the organization
has got the right kind of human resources to carry out the given strategy.
3. Creating Highly Talented Personnel: Even though India has a great pool of educated
unemployed, it is the discretion of HR manager that will enable the company to recruit the
right person with right skills to the organization.

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4. International Strategies: An international expansion strategy of an organization is
facilitated to a great extent by HR planning. The HR department’s ability to fill key jobs with
foreign nationals and reassignment of employees from within or across national borders is a
major challenge that is being faced by international business.
5. Foundation for Personnel Functions: HRP provides essential information for designing
and implementing personnel functions, such as recruitment, selection, training and
development, personnel movement like transfers, promotions and layoffs.
6. Increasing Investments in Human Resources: Organizations are making increasing
investments in human resource development compelling the increased need for HRP.
Organizations are realizing that human assets can increase in value more than the physical
assets.
7. Resistance to Change: Employees are always reluctant(unwilling) whenever they hear
about change and even about job rotation. Organizations cannot shift one employee from one
department to another without any specific planning.
8. Uniting the Viewpoint of Line and Staff Managers: HRP helps to unite the viewpoints
of line and staff managers. Though HRP is initiated and executed by the corporate staff, it
requires the input and cooperation of all managers within an organization.
9. Succession Planning: HR Planning prepares people for future challenges. The ‘stars’ are
picked up, trained, assessed and assisted continuously so that when the time comes such
trained employees can quickly take the responsibilities and position of their boss or seniors as
and when situation arrives.
10. Other Benefits:
a) HRP helps in judging the effectiveness of manpower policies and programs of
management.
b) It develops awareness on effective utilization of human resources for the overall
development of organization.
c) It facilitates selection and training of employees with adequate knowledge, experience and
aptitudes so as to carry on and achieve the organizational objectives.
d) HRP encourages the company to review and modify its human resource policies and
practices and to examine the way of utilizing the human resources for better utilization.
HRP PROCESS
HRP effectively involves forecasting personnel needs, assessing personnel supply and
matching demand, supply factors through personnel related programs. The HR planning
process is influenced by overall organizational objectives and environment of business.

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1) Environmental Scanning
It refers to the systematic monitoring of the external forces influencing the organization. The
following forces are essential for pertinent (relevant) HRP:
Economic factors, including general and regional conditions, Technological changes,
Demographic changes including age, composition and literacy, Political and legislative
issues, including laws and administrative rulings, Social concerns, including child care,
educational facilities and priorities. By scanning the environment for changes that will affect
an organization, managers can anticipate their impact and make adjustments early.
2) Organizational Objectives and Policies
HR plan is usually derived from the organizational objectives. Specific requirements in terms
of number and characteristics of employees should be derived from organizational objectives,
once the organizational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objective with regard to HR utilization in the
organization.
3) HR Demand Forecast
Demand forecasting is the process of estimating the future quantity and quality of people
required to meet the future needs of the organization. Annual budget and long-term corporate
plan when translated into activity into activity form the basis for HR forecast. Techniques
like managerial judgment, ratio- trend analysis, regression analysis, work study techniques,
Delphi techniques are some of the major methods used by the organization for demand
forecasting.
4) HR Supply Forecast
Supply forecast determines whether the HR department will be able to procure the required
number of workers. Supply forecast measures the number of people likely to be available

17
from within and outside an organization, after making allowance for absenteeism, internal
movements and promotions, wastage and changes in hours, and other conditions of work.
Supply analysis covers the existing human resources, internal sources of supply and external
sources of supply.
5) HR Programming
Once an organization’s personnel demand and supply are forecasted the demand and supply
need to be balanced in order that the vacancies can be filled by the right employees at the
right time.
6) HR Plan Implementation
HR implementation requires converting an HR plan into action. A series of action are
initiated as a part of HR plan implementation. Programs such as recruitment, selection and
placement, training and development, retraining and redeployment, retention plan, succession
plan etc. when clubbed together form the implementation part of the HR plan.
7) Control and Evaluation
Control and evaluation represent the final phase of the HRP process. All HR plan include
budgets, targets and standards. The achievement of the organization will be evaluated and
monitored against the plan.
RECRUITMENT
It is the generation of applications and applicants for specific positions to be filled up in the
organization. Recruitment is the process of searching for and obtaining applications for jobs
so that the right people in right number can be selected. Bergmann and Taylor: Recruitment is
the process of locating, identifying, and attracting capable applicants. Recruitment is an
important function of the Human Resource Management in an organization, and it is
governed by a mixture of various factors. Proactive HR Professionals should understand
these factors influencing the recruitment and take necessary actions for the betterment of the
organization.
When the market condition changes, the organization also needs to monitor these changes
and discover how it affects the resources and analyze these functions for making recruitment
an effective process. We have Internal Factors as well as External Factors that influence the
recruitment process. In this chapter, we will be discussing these factors in detail.
Internal Factors
Organizations have control over the internal factors that affect their recruitment functions.
The internal factors are −
1. Size of Organization
2. Recruiting policy
3. Image of organization
4. Image of job

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1. The size of the organization
It is one of the most important factors affecting the recruitment process. To expand the
business, recruitment planning is mandatory for hiring more resources, which will be
handling the future operations.
2. Recruiting Policy
Recruitment policy of an organization, i.e., hiring from internal or external sources of
organization is also a factor, which affects the recruitment process. It specifies the objectives
of the recruitment and provides a framework for the implementation of recruitment programs.
3. Image of Organization
Organizations having a good positive image in the market can easily attract competent
resources. Maintaining good public relations, providing public services, etc., definitely helps
an organization in enhancing its reputation in the market, and thereby attract the best possible
resources.
4. Image of Job
Just like the image of organization, the image of a job plays a critical role in recruitment. Jobs
having a positive image in terms of better remuneration, promotions, recognition, good work
environment with career development opportunities are considered to be the characteristics to
attract qualified candidates.
External Factors
External factors are those that cannot be controlled by an organization. The external factors
that affect the recruitment process include the following −
1. Demographic factors − Demographic factors are related to the attributes of potential
employees such as their age, religion, literacy level, gender, occupation, economic
status, etc.
2. Labor market − Labor market controls the demand and supply of labor. For
example, if the supply of people having a specific skill is less than the demand, then
the hiring will need more efforts. On the other hand, if the demand is less than the
supply, the hiring will be relative easier.
3. Unemployment rate − If the unemployment rate is high in a specific area, hiring of
resources will be simple and easier, as the number of applicants is very high. In
contrast, if the unemployment rate is low, then recruiting tends to be very difficult due
to less number of resources.
4. Labor laws − Labor laws reflect the social and political environment of a market,
which are created by the central and state governments. These laws dictate the
compensation, working environment, safety and health regulations, etc., for different
types of employments. As the government changes, the laws too change.
5. Legal considerations − Job reservations for different castes such as STs, SCs, OBCs
are best examples of legal considerations. These considerations, passed by
government, will have a positive or negative impact on the recruitment policies of the
organizations.
6. Competitors − When organizations in the same industry are competing for the best
qualified resources, there is a need to analyze the competition and offer the resources
packages that are best in terms of industry standards.

19
Recruitment is the process of locating, identifying and attracting capable applications for jobs
available in an organization.
Accordingly, the recruitment process includes the following 5 steps:
1. Recruitment Planning
2. Strategy Development
3. Searching
4. Screening
5. Evaluation and Control
1. Recruitment Planning
The first step involved in the recruitment process is planning. Managers have to plan the
following: the job specifications for the vacant positions, outlining its major and minor
responsibilities; the skills, experience and qualification required; grade and level of pay;
starting date; nature of job, temporary or permanent; and any special conditions.
2. Strategy Development
This includes issues like; whether to prepare the required candidates by themselves or hire it
from outside; what type of recruitment method to be used, what geographical area to be
considered; which source of recruitment to be practiced, and what sequence of activities to be
followed in recruiting candidates?
3. Searching
This step involves attracting job seekers to the organization. There are broadly two sources
(a) Internal and (b) External Sources.

20
INTERNAL SOURCES
1. Present Employees: Promotions and transfers from among the present employees can
be a good source of recruitment. Promotion implies upgrading of an employee to a
higher position carrying higher status, pay and responsibilities. Whereas Transfer
refers to shifting an employee from one job to another without any change in the
position/post, status and responsibilities.
ADVANTAGES
i) Employees promoted or transfers are well verse with the organizational culture.
ii) Job training is not required for such employees.
iii) It is cost effective.
DISADVANTAGES
i) Organizations will have limited choice of people, hence may deny the chance of recruiting
better qualified and skilled workers.
ii) Sometimes discrimination is possible while giving the promotions, which can create
frustration among employees.
2. Employee Referrals
The existing employees can refer their family members, friends and relatives to the company
as potential candidates for the vacancies to be filled in the organization.
3. Former Employees
Retired or retrenched employees may be interested to come back to the company to work on a
part time basis. This source has the advantage of hiring people whose performance is already
known to the organization.
4. Previous Applicants
Sometimes organizations select candidates from the applications already lying with the
organization. Such potential candidates can be contacted through mails or telephonically.

21
Advantages of Internal Sources
 Familiarity with own employees.
 Batter use of talent which is available internally.
 It is cost effective as the organizations need not to spend too much money, time and
efforts to locate and attract the potential candidates.
 It will motivate the internal employees as they are preferred over outsiders.
Disadvantages
 Internal recruitment will limit the choices of the potential candidates.
 Internal employees will don’t have any competition from outside.
 Employees will not try to improve their skills and it can result into less productivity.
 Conflicts and controversies surface among the internal candidates, whether or not they
deserve promotion.
EXTERNAL SOURCES
1. Employment Exchange:
The main function of employment exchange is registration of job seekers and their placement
in notified vacancies. They are particularly useful in recruiting blue-collar, white-collar and
technical workers.
2. Advertisement
It is the most widely used method for generating many applications. The higher the position
in organization, the more specialized the skills, or shorter the supply of that resources in the
labor market, the more widely dispersed the advertisement is likely to be.
3. Employment Agencies
In addition to Government agencies, there are a number of private employment agencies who
register candidates for employment and furnish a list of suitable candidates from the data
bank as and when sought by the prospective employers.
4. Professional Associations
Very often, recruitment for certain professional and technical positions is made through
professional associations called ‘headhunters’. They are useful in for attracting highly skilled
and professional personnel.
5. Campus Recruitment
It is a very common phenomenon in many countries. Big companies try to recruit outstanding
candidates from the campus itself in order to get the best talent and skilled workers. For this
kind of recruitment generally organizations keep in contact with the placement cells of the
academic institutions.
6. Deputation
Sending an employee from one organization to another for a short duration of two or three
years. This kind of method is used generally among the Government organizations.
7. Word-of-Mouth
In this method word is passed around the possible vacancies or openings in the organization.
8. Raiding or Poaching
A firm tries to attract the employees from rival firms by offering better terms and conditions.
This is usually being considered as unethical practice and not openly talked about.

22
Advantages of External Sources
 It is likely to attract more applicants as it is an open process.
 With more applications large pool of talented candidates is available.
 Best candidates can be selected.
 It provides healthy competition and conducive work environment in the organization.
Disadvantages
 It is an expensive and time consuming method.
 As the candidates come from the outside, organizations are not familiar with the
candidate’s capabilities.
 Existing employees can feel discouraged, if some new person is selected for some
higher post.
 Less productivity is possible due to non-availability of promotions.
4. Screening
Once the applications are received for the advertised post this process started. It makes sure
that only the candidates which fulfill all the requirements of vacant jobs are called for next
stage. Those who do not qualify are straightway eliminated from the selection process.
5. Evaluation and Control
Since recruitment is a costly affair, it is necessary for a prudent employer to try to evaluate
the process of recruitment by answering certain questions like:
1. Whether the recruitment methods are appropriate and valid?
2. Whether the recruitment process followed in the organization is effective at all or not?
In case the answers to these questions are in negative, appropriate control measures need to
be taken.
METHODS OF RECRUITMENT
1. DIRECT METHOD
In this method, the representatives of the organization are sent to the potential candidates in
the educational and training institutes. They establish contacts with the candidates seeking
jobs. These representatives work in cooperation with placement cells in the institutions.
Persons pursuing management, engineering, medical etc. programmes are mostly picked up
in this manner.
2. INDIRECT METHOD
This method include advertisements in news papers, on the radio and television, in
professional journals, technical magazines etc. This method is useful when (i) organization
does not find suitable candidates, (ii) when organization want to reach out to vast territory,
and (iii) when organization wants to fill up scientific, professional and technical posts.

23
3. THIRD PARTY METHODS
These include the use of private employment agencies, management consultants, professional
associations, employee referral, trade unions, data banks, and labor contractors etc. to
establish contact with the job seekers.
Effectiveness of a Recruitment Programme
 For a successful and effective recruitment programme the following are the
necessities:
 A well-defined recruitment policy
 A proper organizational structure
 A well laid down procedure for locating potential job seekers
 A suitable method and technique for utilizing the candidates
 An ethically sound and fool proof practice telling an applicant everything about job.
Introduction to Interview
An interview is a process of bringing together the job applicant and representative of the
employer to obtain information and evaluate the applicant’s qualification. A successful
interview involves planning and preparation on the part of both interviewers and interviewee.
Purpose of Interview
Initial Screening
To gather information that will help to predict an individual’s future performance in a
particular job i.e. to match the right person with the right job. To give candidates accurate
picture of the organization and the job but it generally happen in second interview.
SELECTION
Selection is hiring suitable candidates from the pool of applications received after recruitment
process. According to Koontz,“Selection is the process of choosing from among the
candidates from within the organization or from outside, the most suitable person for the
current position or for the future position.”
SELECTION PROCESS
There is no single universally accepted selection process followed by all organizations, it
differ from organization to organization. Following are the steps involved in a standard
selection process: 1. Application forms, 2. Preliminary Interview, 3. Selection Tests,
4. Selection Interview, 5. Reference Check, 6. Physical Examination and 7. Final Selection.
1. Application Forms
It is the commonest method for getting information from a prospective candidate. Generally,
the following data is required to be filled in the application forms:
i. Biographical Information: It includes name, father’s name, age, sex, nationality,
height, marital status, identification mark and number of dependents.
ii. Educational Information: It covers academic qualification, courses, year of
passing, subjects offered, percentage of marks, division of marks, names of
educational institutes, training acquired, scholarship etc.

24
iii. Work Experience: positions held, name of the employer, nature of job, salary,
duration of various assignments, reasons for leaving the present job, membership
of professional bodies, etc.
iv. Salary: It includes expected minimum salary and minimum joining period
required.
v. Extra-Curricular Information: In this information like participation in games,
level of participation, prizes won, hobbies etc. are included.
vi. Reference: It includes the names of 2-3 referees who know the character, work
and abilities of the candidate.
2. Preliminary Interview
Once the organization gets the application forms screening will take place and unqualified
candidates will be eliminated from the process. After screening a preliminary interview with
the qualified candidates will make sure that only the best will move to further levels of
selection process.
3. Selection Tests
Each individual differs in many areas like ability and skills to handle a particular situation. To
select the best to handle the job a device called ‘selection test’ is used. It will uncover the
information about the candidate which are not known through application banks and
interview. It is defined as an objective and standardized measure of sample behavior. It is
standardized as the environment in which the test is conducted is same for all and objective as
it measures the individual differences in terms of their abilities and skills. Tests can be
broadly divided in two parts.

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4. Selection Interviews
It is a widely used selection method. It is a face to face interaction between interviewee and
interviewer. It is a very powerful technique to judge the right kind of candidate. But if it is not
handled carefully then it can be a source of bias also.
Objectives of Interview:
 It verifies the information provided through applications and tests.
 Additional information can be gained.
 It provides necessary information to the candidates about the job and organization.
 Mutual understanding can be formed.
5. Reference Checks
The candidates will be asked to give the names of persons i.e. referees who know him/her
personally like previous employer, university professors, neighbors’ and friends etc. However
it is treated just as a formality and hardly used to influence final selections.
6. Physical Examination
The last tool used in selection process is physical examination. The main purpose of
conducting medical examination is to have a proper matching of job requirement with the
physical ability of the candidate. Generally the following are checked: infectious disease, any
health defects, mental disorders etc.
7. Final Selection
Candidates who cleared all the above mentioned hurdles are finally selected and a job offer
letter is issued to them. It will contain the details like pay-scale, allowances and other terms
and conditions of the job.

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