DPB6013 HUMAN RESOURCE MANAGEMENT

Preface

This module is a compilation of lecture notes extracted from
various textbooks on Human Resource Management from
local and international publications and from internet. It is to
fulfil the needs of students taking Diploma in Polytechnic and
is based on the syllabus for the paper of DPB6013 HUMAN

RESOURCE MANAGEMENT.

The objective of this book is to help the student who use this
book as their quick reference to get the information about this
course. This module also can use by Polytechnics lecturers as a

teaching material and polytechnic students to understand
more on Human Resource Management.

I would like to take this opportunity to thank to those who
have contributed directly or indirectly in the preparation and
publication of this module especially to our beloved family,
Head of Programme, Head of Department and also our dearly

colleagues.

Thank you very much

Published by:
Politeknik Sultan Azlan shah
Behrang Stesen, Behrang
35950 perak.
Tel :05-4544431
Faks :05-4544993
Email:h�p//www.psas.edu.my

First published 2019

All right reserved. No part of this publica�on may be reproduced stored in a retrieval system, or transmi�ed in
any form or by means, electronic, mechanical, photocopying, recording or otherwise without permission of
Politeknik Sultan Azlan Shah.

Email:
[email protected]
Fairuz_sofi[email protected]
afi[email protected]

Table of Contents

1 Introduction to HRM page 1

2 Job Analysis page 13

3 Human Resource Strategic Planning page 22 

4 Recruitment & Selection page 35

5 Human Resource Development page 56

6 Performance Appraisal page 73

7 Compensation Management page 88

8 Industrial Relation page 108

Reference 

DPB6013

HUMAN RESOURCE MANAGEMENT

1.0 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Background Of Human Resource Management

Definition of human resource management
HRM is the development and implementation of system in an organization designed
to attract, develop and retain a high-performing workforce. It also known as
personnel manager and also Human Resource Manager. Main function of the
human resource manager is-to keep records of the employees and to assist in
administrating various benefits including leave.

The philosophy of Human Resource Management is to ensure organizations have
the right people who will be able to achieve the organizational objectives (minimum
cost with maximum capacity).

The importance of human resource management
i. Recruit suitable workers
The HR managers come up with plans and strategies for hiring the right kind
of people. They design the criteria which is best suited for a specific job
description.

ii. Ensure the workers receive appropriate training
Training is provided to the employees according to the requirements of the
organization. Thus, the staff members get the opportunity to sharpen their
existing skills or develop specialist and skills which in turn, will help them to
take up some new roles.

iii. Established system for compensation and rewarding employees
The compensation, benefits and reward schemes that these HR
professionals manage are not only iimportant for retaining and motivating
employees, but also for attracting new people to the company.

iv. Help heads of departments keep their subordinates free from injury and
sickness.

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Human resource activities also related to safety and health usually entail
compliance with federal laws that protect employees from hazards in the
workplace. HRM managers must work to minimize the company's exposure
to risk by implementing preventive safety and training programs. They are
also typically charged with designing detailed procedures to document and
handle injuries.
v. Design and implement appropriate disciplinary system
Acceptable attitude and behavior of employees are known as employee
discipline. Employee discipline has an important role in the attainment of
the organizational goal. So, if there arises any disciplinary problem, action
has to be taken promptly. Disciplinary action must be progressive. It involves
stepwise actions which must be focused on the improvement of negative
activities, attitude, and behavior.
vi. Develop working relationship
A healthy working relationship between management and union officials is
vital to prevent and resolve workplace disputes. The human resources
department supports, guides and trains managers to help them maintain
effective working relationships with unions.
vii. Complying the employment law
There are numerous laws and regulations governing the employment
relationship that HR professionals must understand and navigate in order to
help ensure their organizations avoid costly fines and other penalties,
including the potential harm to the organization’s reputation. Common
example of law regulating the employer-employee relationship include: The
Employment Act 1955, The Wages Councils Act 1947 and The Industrial
Relations Act 1967.
viii. Maintain staff records
One of the primary responsibilities of the HR department is to maintain
employee records and regularly keep them updated. Maintain accurate and
updated employee records helps employers save time while performing
administrative duties.These details can also come in handy during the
recruitment process, identifying gaps in skills, availability of resources or at
the time of separation. These include personal files, payroll files and medical
files of employee records.

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Differences between personnel management and human resource management
The difference between personnel management and human resource management
is about what they are deal for. Personnel management basically deals with the
employees. That is, salary, hiring and employment. On the other hand, human
resource management deals with all aspect of human resource including training
and safety of all employees.

PERSONNEL MANAGEMENT HUMAN RESOURCE

MANAGEMENT

DEFINITION Administrative function of an The development and

APPROACH organization that exists to implementation of system
TREATMENT
POWER provide the personnel needed in an organization
FUNCTIONS
BASIS OF PAY for organizational activities designed to attract,

and to manage the general develop and retain high-

employee-employer performing workforce.

relationship

Traditional approach of Modern approach of

managing people in the managing people

organization

OF People as a input for People as an important

achieving desired input and valuable resources for

achieving desired input.

Focus on salary, hiring and Focus on training, safety,

employment motivating + all Personnel

Mgmt.

Based on job evaluation Based on performance

(analysis the job not take into evaluation (individual

account the individual abilities in performing the

abilities) job)

Table 1.1 Difference between personnel management and human resource
management

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THE ROLE AND STRUCTURE OF THE MINISTRY OF HUMAN RESOURCES
The Ministry of Human Resources is responsible for establishing a work
environment in the country that encourages workers to be productive and for
setting minimum labour standards. Thus, the Ministry:

i. To update and implement LABOR POLICIES AND LAWS to create
efficient, productive and discipline workforce with positive values
and good work ethics.

ii. To efficiently manage and independently RESOLVE INDUSTRIAL
DISPUTE BETWEEN EMPLOYER AND EMPLOYEE in order to create a
conducive work environment.

iii. To monitor and facilitate development and movement of TRADE
UNIONS to be orderly for the benefit of the nation.

iv. To MANAGE INTERNATIONAL RELATIONS in Labour Management
field, technical co-operation in labour related matters and human
resources development.

v. To encourage and coordinate TRIPARTISME AMONG EMPLOYEES,
EMPLOYERS AND GOVERNMENT and to create harmonized relation
toward Vision 2020.

vi. To plan and DEVELOP HUMAN RESOURCE through control and
LABOR MARKET ANALYSIS to formulate policies relating to
employment, development of skilled workforce and productivity
linked wage system.

vii. To create JOB OPPORTUNITIES and JOB PLACEMENT.
viii. To update and implement NATIONAL VOCATIONAL TRAINING

POLICY and strategies that will fulfil the training needs in the private
sector.
ix. To revise, update and develop the syllabus of SKILLS TRAINING
(NOSS), SKILLS CERTIFICATION SYSTEM (MOSQ) AND SKILLS
STANDARD for implementation.
x. To update and effective implementation of SOCIAL SAFETY FACILITY
to ensure sufficient safety net for workers.

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STRUCTURE OF THE MINISTRY OF HUMAN RESOURCES

DEPARTMENTS STATUTORY BODIES/ COMPANIES
Labor Social Security Organization (SOCSO)
Industrial Relations Human Resources Development Bhd.
(PSMB)
Manpower National Institute of Occupational
Safety and Health
Trade Union Affairs Skill Development (Loan) Fund
Corporation
Occupational Safety and Health
Skills Development

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
Functions of Human Resource Management

a. Human Resource Planning
b. Recruitment
c. Selection
d. Training & Development
e. Performance Appraisal
f. Compensation Management
g. Industrial Relation

HUMAN RESOURCE PLANNING
Human Resource Planning is basic element of human resource management. All the
functions of human resource management are depending on this planning. During
this planning process, all aspects of the function of all human resource management
need to be scrutinized with care. It is a process of identifying human resource needs
of current and future for an organization to achieve its goals. Human resource
planning needs to act as a link between human resource management and strategic
planning across the organization.

RECRUITMENT AND SELECTION

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Recruitment is the process of finding and hiring the best qualified candidate (from
within or outside the organization) for the opening of the work, in a timely and cost-
effective. The recruitment processes includes analyzing the requirements of the
job, attracting workers to the job and bring them as new employees into the
organization. Selection is the process which is evaluating candidates for specific job
and selecting individuals for employment based on certain criteria. Employee
selection can range from a very simple process to a highly complex process
depending on the firm and its intake. Employment laws such as the law anti-
discrimination must be observed in selecting employees.

TRAINING AND DEVELOPMENT
Training and development is an effort to enhance the skills, attitudes and
knowledge of employees. This is to improve the quality and quantity of products
and services offered to get a higher profit.
PERFORMANCE APPRAISAL
Performance appraisal is a method which an employee's work performance is
evaluated. It is also a process of evaluating the effectiveness of the work performed
by the employee and provide feedback to employees.

COMPENSATION MANAGEMENT
Compensation is the remuneration received by the employee regarding of his
contributions to the organization. It is an organized practice that involves balancing
the work-employee relation by providing the benefits of both financial and non-
financial benefits to employees. It is an integral part of human resource
management which helps in motivating the employees and improving
organizational effectiveness.

INDUSTRIAL RELATIONS
Industrial relation is the relationship between an employer and his workers. It is an
effort to create a good relationship between employers and trade unions to protect
workers and improve productivity of the organization.

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THE ENVIRONMENTAL FACTORS INFLUENCING HUMAN RESOURCE
MANAGEMENT

Factors influencing human resource management

a) Internal
• Size of organization
• Ownership of the company
• Philosophy of top management / mission and vision
• Unionization of workforce

b) External
• Technological changes
• Globalization and increased competition
• Employee Education and expectation
• Workforce diversity
• Labor law

FACTORS AFFECT ON HUMAN RESOURCE MANAGEMENT ACTIVITIES.

a) Internal Size of organization
• The larger organization, usually have a systematically human
resources management department. While the small size of the
• company usually does not have a human resources department.
Meaning that, the functions of Human Resource Manager is larger
• than small company.

Ownership of the company
Ownership of the company is also affecting human resource
management where the company involving multinational trade or
joint venture company will had greater responsibilities adn
functions in managing its employees to be adaptable with
worldwide needs.

Philosophy of top management / mission and vision
Philosophy of top managemnet also affects on the function of
human resource management itself. Usually, large companies will

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have a human resources management department, training
department and industrial relations department. There is also the
top management who hold to the philosophy of all matters of
human resource management should be managed by the Head of
Department only. It also refer to the mission and vision of the
company.
All department objective must syncronice with organization
mission. Thus, HR manager must plan their activity based on
organization mission.
• Unionization of workforce
Trade unions also affect functions of human resource
management. Strong unions will have strong influence the human
resource management function and vice versa
• Policy
Its include guidelines, rules and procedures established to
support effort to achieved stated objective. It is a guide to
decision making and address repetitive or recurring situation.
• Culture
Organization that practices autocratic management will have high
turnover of employees. This will give implication towards
recruirement and selecting employees in organizations.
• Physical
Physical factor will include the ventilation, noise, etc. which will
affect employees satisfaction level towards their work,
productivity and etc.
• Source
Existing financial source in organization will influence the
organization policies, as well as limited financial source will limit
the HR activity.

b) External
• Technological Changes
When there are changes in the technology used in
carrying out daily work, the role of employees are also

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affected. Whether it is necessary to lay off workers or
train employees to adapt with new technologies.
(planning, recruitment & training)
• Globalization and increased competition
Globalization and business mergers create a big
challenge in human resource management. It is because,
it will increased competition which are expected to
increase profits but they often fail bacause of the inability
of the management to solve the many conflicts and
human resource problem that arise. It is because the
employees had vague in their roles. All the human
resource function must be global and can compete the
other company.

• Employee Education and expectation
Highly educated workers more demanding than those
who are not educated. They also know their rights as
workers make a challenge to human resource
management.

• Workforce diversity
Workforce diversity that occured in the organisation
today will be a big challenge to human resource manager
to manage them. It is because the three generation
which is generation X, generation Y and Baby Boomers
have a big differences of skill, attitude and knowledge to
do the job. Their demand toward living also are
difference.

• Labor law
Law of the labor force was created to provide guidance
to organizations on how to operate the business and
manage their human resources. For example, managing
the compensation.
All the human resource functions must be legally applied.
There is some act are related to the human resource
function such as

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• The Employment Act 1955
• The Sabah Labour Ordinance
• The Sarawak Labour Ordinance
• The Wages Councils Act 1947
• The Employees Provident Fund (EPF) Act 1991
• The Workmen’s Compenstaion Act 1952
• The Employees Social Security Act (SOCSO) 1969
• The Occupational Safety and Health Act 1994
• The Factories and Machinery Act 1967
• The Children and Young Persons (Employment)

Act 1966
• The Employmen (Restriction) Act 1968
• The Trade Union Act 1959
• The Industrial Relation Act 1967
• Human Resource Development Bhd Act 2001
• The Skills Development Fund Act 20044
• The National Skills Development Act 2006
• Economics
Changes in economic will lead the organization to change
their planning to fulfill the needs of the organization.
Change in strategic planning requires HR team to identify
functional experts as well as alter the potential talent of
workers.
• Employee union
Unions is a thirty party that can influence the policy and
activities of the organization. Employers should be more
careful in managing industrial relations/actions to avoid
pickets, strikes or lock-out.

• Labor
HR manager must be aware of and up-to date with the
country labor laws. For example, cross border branches
should follow its local laws in terms of recruiting workers,
hours worked, etc.

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• Society
HR manager should concern abour social issues such as
facilities, security and safety of the society. Instead of top
management, HR manager also responsible to ensure
that the environment is safe from social problems raised
by foreign workers.

• Community
Human resource managers need to be alert and exercise
social responsibility in its business operations. HR
manager indirectly involves in social activities by
organization. This will create good image for them.

• Shareholders
Any changes in human resource activity should be given
feedback to be decided by the shareholders, thus
creating an appropriate justification that they agree with
the action, such as change in strategic planning, shut-
down certain branch may involve retrenchment.

• Customer
Customer usually want high quality merchandise at
affordable prices which only can be produced by high
skilled workers. Hence, the training and development
and research need to be addressed.

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THE IMPORTANT OF HUMAN RESOURCE MANAGEMENT
 Recruit suitable workers
 Ensure the workers receive appropriate training
 Establish systems for compensation and rewarding employees
 Help heads of departments keep their subordinates free from
injury and sickness
 Design and implement appropriate disciplinary system
 Develop working relationship
 Complying the employment law
 Maintain staff records.

SUMMARIZE
Define human resource management
The importance of human resource management
The basic of comparison between human resource management and
personnel management
Definition
Approach
Treatment of manpower
Types of function
Basic of pay
The role and structure the Malaysia ministry of Human Resource
Function of Human resource management
Human resource planning
Recruitment and selection
Training and development
Performance appraisal
Compensation management
Industrial relation
Factors affecting human resource management activities
Internal factors
External factors

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2.0 JOB ANALYSIS

Definition of job analysis

Definition of job analysis is a process of obtaining information about jobs. It is an

Information about the tasks, and the personal characteristic such as education and

special training. It also called as technique of studying a job to identify the skills,

knowledge, experience and other requirements necessary to perform the job. It

including
• Job to be done
• Task to be performed
• Machine utilized
• Equipment utilized
• Materials
• Products
• Training
• Skills
• Knowledge

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The purpose of job analysis
Job analysis is useful for overall management of all personnel activities. Job-related
data which are job description and jobnspecification obtained from a job-analysis
program are useful in Human Resource

Planning, employee hiring, training, job evaluation, compensation, performance
appraisal, computerized personnel information systems, and safety and health.

DIFFERENCES OF JOB DESCRIPTION AND JOB SPECIFICATION
Job description is a written statement that defines the duties, relationships and
results expected from anyone in the workplace. It is an overview of what needs to
be done on the job. Usually it includes is a written statement that defines the duties,
relationships and results expected from anyone in the workplace. It is an overview
of what needs to be done on the job. Usually it includes

• Office
• Date
• Title of immediate supervisor
• Job Purpose Statement
• The primary responsibility
• List of Duties and Responsibilities of the common
• General information relating to the work
• training needs
• use of tools
• Signature of person who has provided job description

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Job specification
Job Specification is an analysis of the type of people needed to do the job, that is,
it lists the qualifications. Typically, this will include an analysis of people needed to
do the job, that is, it lists the qualifications. Usually this includes

• Level of education
• Fair amount of work experience in the same
• Specific skills needed
• Health Considerations

JOB JOB DESCRIPTIONS
ANALYSI - Duties, Responsibilities,

S/ Tasks statement
DESIGN - Job title, location, machine,

tools and equipment,
grading,realtionship,

JOB SPECIFICATION
Qualification, worker
characteristics, knowledges,

skills and abilities,
educations, experiences,
physical factors, special

attitudes,

Differences between job design, job enlargement and job rotation.

Job Design
In a simple word, job design means the ways that managers choose to organize
work responsibilities, duties, activities, and tasks. It consists job description and job
specification.

Job design is the process of Work arrangement (or rearrangement) aimed at
reducing or overcoming job dissatisfaction and employee alienation arising from
repetitive and mechanistic tasks. Through job design, organizations try to raise
productivity levels by offering non-monetary rewards such as greater satisfaction
from a sense of personal achievement in meeting the increased challenge and

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responsibility of one's work. Job enlargement, job enrichment, job rotation, and job
simplification are the various techniques used in a job design exercise.

Job Enlargement
Job enlargement means increasing the scope of a job through extending the range
of tasks and responsibilities are generally the same level and edge. This contradicts
the principles of specialization and division of labor in which work is divided into
small units, each of which is performed repetitively by an employee. Some
motivational theories suggest that boredom and alienation caused by the division
of labor can actually cause efficiency to fall. Thus, job enlargement seeks to
motivate workers through reversing the process of specialization. A common
approach may be to replace assembly lines with modular work, but a worker
repeating the same steps for each product, they perform some tasks on an item. To
enable employees to be provided with job enlargement they need to be retrained
in new fields which can prove to be a lengthy process. However, the results have
shown that this process can see the effects diminish after a period of time, because
even the enlarged job role become common, this in turn can lead to the same level
of demotivation and job dissatisfaction at the expense of the level of training has
increased and costs. Continued expansion of high -risk occupations , known as “job
creep”, which can lead to unmanageable workloads.

Job Rotation
Job rotation is a management technique that gives trainees to various jobs and
departments in the next few years. Research shows that an increasing number of
companies are using job rotation to train employees. There are both positive and
negative effects involved with job rotation should be taken into account when
deciding to use this technique. Job rotation is also a control to detect errors and
fraud. It reduces the risk of collusion between individuals. Organizations dealing
with sensitive information or systems ( eg bank ) where there is an opportunity for
personal gain can benefit by working round. Job rotation also helps in business
continuity as some people were ready to perform job functions. If the employee is
not available to the other can be his / her with the same efficiency.

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METHODS USED IN CONDUCTING JOB ANALYSIS
It is now generally recognised that a multi-method approach to do a job analysis.
Many techniques have been used with varying success for analysing jobs. Manager
can choose any approach that will bring succesful to them. There is no ideal
approach to carry out job analysis. It depends on the situataion of the organization.

A. INTERVIEWS
Interview used to determine how people perceive and classified the things that go
in environment around them. This technique was used for the job analysis. Most
commonly, it is used by managers asked to compare individuals who work for them
to identify skills associated with success. Managers are asked to generate a
"constructs" by choose three job holder, and identify how these two is different
from the third in terms of the way in where they do their work. This process is
repeated until the number of constructs related effectiveness of the work has been
constructed. This technique is particularly useful when a large number of position
has been created, because it lends itself to a variety of statistical analysis
techniques. The benefit of this approach is considering the qualities of actual
people who have performed the target job in the past.
B. SURVEYS/QUESTIONAIRE
Survey is a sampling observation which does not require detailed attention to every
action in entire work performed. On the other hand, managers can determine the
content and the rate of a normal workday through sampling of actions and not
through continuous observation and time of all the action. Sampling work is very
useful for routine work and repetitive.
C. OBSERVATIONS
Observation is refers to the observation to the existing employees in the workplace.
It always can give real information about jobs that can not be provided by other
approachs. This method gives more real picture about the task and the work done.
This method is less effective when it involves cognitive work. It is suitable for work
involving a skills. However, through observation, the analysis may be changed to
better description as a result of direct observation.
D. JOURNALS AND RECORDS / LOGBOOK
Journal or diary written by the workers themselves can assist in the preparation of
job analysis. This method asks current employees to complete journal and workload

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details of their activities. However, this method can be inconvenient for the
employees and can be difficult to be analyzed. Existing documents, such as the
scope of work, training manuals, specifications persons, can be used to get more
information about the job. However, it must be reviewed to ensure that the job is
not changed and the information is still relevant.

THE USES OF JOB ANALYSIS

THE IMPORTANCE OF JOB ANALYSIS INFORMATION TO THE ORGANIZATION

Recruitment and Selection: Job analysis provides information about what work is
needed and what human characteristics needed to perform job activities. This
information, in the form of job descriptions and specifications, will help the
management to decide what kind of people they have to hire and choose.
Compensation: Job analysis information is important to estimate the value of each
work and give an appropriate compensation. Compensation (salary and bonus)
usually depends on the necessary job skills and education levels, safety hazards
level, level of responsibility, etc. - factors that can be evaluated through the job
analysis.
Performance Appraisal: A performance appraisal is comparing the performance of
every employee with performance standards established. Managers use job
analysis to determine the specific activities of work and performance standards .
Training: Job description is to show the activities and skills required in performing
tasks. So that, to determine training to be offered to the employee, it must refer
to the job analysis .

Discovering Unassigned Duties: Job analysis can also help reveal whether the task
assigned was carried out or not. If there is any work that is not perform, managers
can refer to job analysis to see who should be responsible for the task.

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THE USE OF JOB ANALYSIS INFORMATION TO HUMAN RESOURCE MANAGEMENT

Good personnel management demands of both employers and employees
have a clear understanding of their duties and responsibilities to be performed on
the job. Job analysis helps in understanding this by drawing attention to a unit of
work and its relationship with other units of work. More specifically, the use of job
analysis can be summarized as follows :
Human resource planning: Job Analysis help in forecasting human resource
requirements in terms of knowledge and skills. By showing lateral and vertical
relationships between jobs, it facilitates the formulation of a systematic promotion
and transfer policy. It also helps in determining the quality of the human resources
needed in an organization .
Recruitment: Job analysis is used to find out how and when to hire people for jobs
of the future. An understanding of the skills required and the vacant posts in the
future help managers to plan and employ people in a systematic way . For example,
a company might hire MBA students to traditional equity research. Analysis of
recent work shows that the position can be filled by graduates with analytical mind.
Now, this will help the company hire equity analysts from a larger number of
graduates by offering a slightly lower salaries .
Selection: Without a proper understanding of what to do at work, it is not possible
to choose the right person. If a Super bazaar manager not clearly identified what
the clerk is to do , it is difficult to find if the person selected must be able to put the
stores merchandise , run the cash register , or keep books of accounts .
Placement and orientation: After selecting the people, we need to put them on the
job because of his interest , activities and abilities. If we are not sure about what to
do at work, it is not possible to identify the right person for the job. Similarly, the
orientation of the effective work can not be achieved without a proper
understanding of the requirements of each job. To teach new employees how to
handle the job , we need to clearly define the work .
Training: If there is any confusion about what works and what should be done ,
training efforts should not be instituted. Whether or not the current and projected
employment needs additional training can be determined only after the specific
needs of the job have been identified through job analysis.

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Counseling: Managers can properly staff attorney about their careers when they
understand the different jobs within the organization. Likewise, employees can
better appreciate their career choices when they understand the specific needs of
a variety of other works . Job analysis can show that the employee may need to
develop to pursue a career.
Employee Safety: A comprehensive job analysis reveals an unsafe condition
associated with the job. By studying how the various operations were retained in
employment , managers can find unsafe practices . This helps in fixing things easily.
Performance appraisal: By comparing what the employee should do (based on the
analysis of the work) to what the people who actually committed, valuable person
can be judged . Finally , each organization must pay a fair wage to people based on
their performance. To achieve this goal , it is necessary to compare what individuals
should do (as a standard of performance) with what they actually have done (such
as job analysis).
Job design and redesign: When the job is properly understood, it is easy to detect
weak areas and undertake remedial measures. We can eliminate unnecessary
movement, facilitate certain steps and improve the existing through continuous
monitoring. In short, we can redesign jobs to match the mental make-up of
employees.
Job Evaluation: Job Analysis help in finding the relative worth of jobs, based on
criteria such as the level of difficulty , type of work performed , the skills and
knowledge required , etc. This, in turn , help in designing a proper wage policy , with
internal pay equity between job.

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Summarize
Define the concept of job analysis
Explain the purpose of job analysis
Methods used to collect data in conducting job
analysis

- Interview
- Surveys
- Observation
- Journals and records
Illustrate the documentation of information
derived from job analysis
- Job description
- Job specification
The information obtained from the job analysis
in human resource functions

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3.0 HUMAN RESOURCE STRATEGIC
PLANNING

DEFINITION OF HUMAN RESOURCE PLANNING
Human resource is the most important asset of an organisation. Human resources
planning are the important managerial function. It ensures the right type of people,
in the right number, at the right time and place, who are trained and motivated to
do the right kind of work at the right time, there is generally a shortage of suitable
persons.

Organization will estimate its manpower requirements and then find out the
sources from which the needs will be met. If required manpower is not available
then the work will suffer. Developing countries are suffering from the shortage of
trained managers. Job opportunities are available in these countries but properly
trained personnel are not available. These countries try to import trained skill from
other countries.

In order to cope human resource requirements, an enterprise will have to plan in
advance its needs and the sources. The terms human resource planning and
manpower planning are generally used interchangeably. Human resource planning
is not a substitute for manpower planning. Rather the latter is a part of the former
i.e., manpower planning is integrated with human resource planning.

According to E.W. Vetter, human resource planning is “the process by which a
management determines how an organisation should make from its current
manpower position to its desired manpower position. Through planning a
management strives to have the right number and the right kind of people at the
right places, at the right time to do things which result in both the organisation and
the individual receiving the maximum long range benefit.”

Dale S. Beach has defined it as “a process of determining and assuring that the
organisation will have an adequate number of qualified persons available at the

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proper times, performing jobs which meet the needs of the enterprise and which
provide satisfaction for the individuals involved.”

In the words of Leon C. Megginson, human resource planning is “an integration
approach to performing the planning aspects of the personnel function in order to
have a sufficient supply of adequately developed and motivated people to perform
the duties and tasks required to meet organisational objectives and satisfy the
individual’s needs and goals of organisational members.”

On the analysis of above definitions, human resource planning may be viewed as
foreseeing the human resource requirements of an organisation and the future
supply of human resources and making necessary adjustments between these two
and organisation plans, and foreseeing the possibility of developing the supply of
human resources in order to match it with requirements by introducing necessary
changes in the functions of human resource management.

Here, human resource means skill, knowledge, values, ability, commitment,
motivation etc., in addition to the number of employees. Though accomplishment
of organisational objectives and goals is the primary concern of the human resource
planning, concern for the aspirations of the people and their well-being has equal
importance in it. In fact, the human resources planning must result in humanisation
of work environment.

As a conclusion, planning is a process to plan and provide an adequate staff for
achieving organizational goals

SIGNIFICANCE OR IMPORTANCE OF HUMAN RESOURCE PLANNING
Human resource planning aims at fulfilling the objectives of manpower
requirement. It helps to mobilize the recruited resources for the productive
activities. The human resource planning is an important process aiming to link
business strategy and its operation. The importance of human resource planning
are as follows:

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1. FUTURE MANPOWER NEEDS
Human resource planning ensures that people are available to provide the
continued smooth operation of an organization. It means, human resource
planning is regarded as a tool to assure the future availability of manpower
to carry on the organizational activities. It determines the future needs of
manpower in terms of number and kind.
2. COPING WITH CHANGE
Human resource planning is important to cope with the change associated
with the external environmental factors. It helps assess the current human
resources through HR inventory and adapts it to changing technological,
political, socio-cultural, and economic forces.

 Vacancies
 Human resource managements
 Job Vacancy
 Accounting Degree

3. RECRUITMENT OF TALENTED PERSONNEL
Another purpose of HR planning is to recruit and select the most capable
personnel to fill job vacancies. It determines human resource needs, assesses
the available HR inventory level and finally recruit the personnel needed to
perform the job.

4. DEVELOPMENT OF HUMAN RESOURCES
Human resource planning identifies the skill requirements for various levels
of jobs. Then it organizes various training and development campaigns to
impart the required skill and ability in employees to perform the task
efficiently and effectively.
5. PROPER UTILIZATION OF HUMAN RESOURCES
Human resource planning measures that the organization acquires and
utilizes the manpower effectively to achieve objectives. Human resource
planning helps in assessing and recruiting skilled human resource. It focuses
on the optimum utilization of human resource to minimize the overall cost of
production.

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6. UNCERTAINTY REDUCTION
This is associated with reducing the impact of uncertainty which are brought
by unsodden changes in processes and procedures of human resource
management in the organization.

7. IMPROVING ORGANIZATIONAL COMPETITIVENESS
Through the supply and demand forecasts, organizations can ensure an
organization’s operations are not disrupted due to the lack or surplus of labor.

When demand is more than supply, then the organization will probably pay
more, thus increasing costs. When demand is less than supply, the
organization will incur high costs to pay compensation and others.

8. ENHANCING ORGANIZATION PRODUCTIVITY
When an organizations efficiently in human resource planning, the workforce
will be used in optimum.
Recruitment and selection of employees without causing, excess validate the
planning of human resources and the abilities and skills of the workforce
cannot used in optimum and affect the overall organizational productivity.
9. REDUCE THE PROBLEM OF HUMAN RESOURCES
Problems such as the boredom of routine task, absenteeism, negative
attitude arising from poor human resource planning.
Better in human resource planning will make the job more attractive,
comfortable and the ability and efficiency of human resource can be used in
optimum.

10. THE EFFECTIVENESS OF HUMAN RESOURCE FUNCTIONS
When the human resource planning aligned with organization’s strategic
planning, it will affect the functions of other human resource management.
This means the human resource activities or programs designed in line with
the forecast workforce requirements and supply in the market.

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ACTIVITIES INVOLVE IN HUMAN RESOURCE PLANNING

The various activities involved in the process of human resource planning are now
discussed one by one.

1.Forecasting human resource requirement

2.Forecasting human resource availability

3.Comparing requirement and availability

4.Develop and implement human resource strateg

5.Evaluate the implementation of strategies

1. FORECASTING HUMAN RESOURCE REQUIREMENTS:
Demand forecasting is the process of estimating the number and type of
personnel required in future. The number of people needed in future
depends on the production and sales of an enterprise. But this demand
keeps on varying due to change in production technology, process, make or
buy decisions, behavior patterns, control systems etc. and demand
forecasting helps in making projections for new positions to be created and
vacancies arising in current manpower.

For example in order to forecast human resource demand, top management
and departmental heads meet and decide about the future human resource
requirement.

The analysis can be made with the help of spreadsheets. It can be set out as
follows:

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1. Current number employed 70
2. Annual level of turnover 10%
3. Expected losses during year 7
4. Balance at end year 63
5. Number required at end year 75
6. Number to be obtained during year (5 - 4) 12

2. FORECASTING HUMAN RESOURCE AVAILABILITY:
Human Resource availability forecasting is the process of estimating
availability of human resource followed after demand for testing of human
resource. For forecasting availability of human resource we need to
consider internal and external supply. Internal supply of human resource
available by way of transfers, promotions, retired employees & recall of laid-
off employees, etc. Source of external supply of human resource is
availability of labor force in the market and new recruitment.

Table : show the forecasting human resource avaibility
3. COMPARING REQUIREMENT AND AVAILABILITY

Once
the

demand and supply forecasts of human resources in an organization is completed
the HRD manager compares the two forecasts. This comparison helps in calculating
the surplus or shortage of human resources in future. In case there is no difference

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between the manpower requirements and manpower supply, there is no need to
take any action by the HRD manager. If the difference exists between the two the
HRD manager has to take actions accordingly.

Table : Show the External & Internal Environment
As in the case of shortage of human resource it can be met by promotions,

overtime, training & development to improve quality, retention, hire staff from
outside etc.
On the other hand if there is surplus of human resource it can be made good
through voluntary retirement scheme (VRS), termination, lay-off, retrenchment
etc.
4. DEVELOP AND IMPLEMENT HUMAN RESOURCE STRATEGIES
The HR leader has to set the vision and challenging goals for the entire HR team.
Make sure that the human resources strategy is aligned with overall business goals.
Ensure company values, business philosophy, mission and ethics are clearly woven
into the strategic plan.

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HR strategy implements is critical and best method of preventing and overcoming
HR problems is to actively involve managers and employees in the whole process.
This approach builds understanding, trust, commitment, and ownership, making
the organizations more competitive.
5. EVALUATION THE IMPLEMENTATION OF STRATEGIES
Once the strategies are implemented there is a need to review those strategies and
monitor them against the set standards. After the strategies are monitored it will
help in revealing out the deficiencies, if any. So corrective measures can be adopted
to remove those deficiencies and control the implementation of action plans in
right direction. Monitoring and control needs to be followed time to time as in
changing business environment action plans need to be modified accordingly.

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HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Definition of human resource information system (HRIS)
Human Resource Information System (HRIS), refers to the systems and processes
at the intersection between human resource management (HRM) and information
technology. It merges HRM as a discipline and in particular the basic HR activities
and processes with the information technology field, whereas the programming of
data processing systems evolved into standardized. Overall, the systems have their
origin on software that integrates information from different applications into one
universal database. The link between financial and human resource modules
through one database is the most important difference to the previous individually
and proprietary developed, which makes this software application is a powerful and
flexible.

Human resource (HR) departments are generally administrative and common to all
organizations. Organizations may have formalized selection, evaluation , and
payroll processes. Effective and efficient management of " human capital " to grow
into a process that is increasingly important and complex. HR function consists of
tracking existing employee data which traditionally includes personal histories,
skills, capabilities, accomplishments and salary. To reduce the manual workload of
administrative activities, organizations began to electronically automate many of
these processes by introducing a system of human resource management in
particular. HR executives rely on internal or external IT professionals to develop and
maintain an integrated HRMS.

Information should be included in HRIS
At present system of human resource management include:

1) Salary/ Complete integration with payroll and other company
financial software and accounting systems.

2) Time and attendance
3) Performance evaluation
4) Benefits administration / Benefits administration

including enrollment, status changes, and personal information
updating.

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5) Human resource management information system /

Management of all employee information.

6) Management Recruiting /Applicant

tracking and resume management.

7) Learning track record / Reporting and analysis of employee

information.

8) Employee self-service scheduling / Company-related documents

such as employee handbooks, emergency evacuation

procedures, and safety guidelines.

9) Absence management

10) Analytics

The HRIS that most effectively serves companies tracks:
 attendance use,
 pay raises and history,
 pay grades and positions held,
 performance development plans,
 training received,
 disciplinary action received,
 personal employee information, and occasionally,
 management and key employee succession plans,
 high potential employee identification, and
 Applicant tracking, interviewing, and selection.

An effective HRIS provides information on just about anything the company needs
to track and analyze about employees, former employees, and applicants.

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THE IMPORTANCE OF HRIS TO THE ORGANIZATION

Organizations must find ways to manage their internal processes efficiently while
preserving the integrity of each practice . In human resources , this involves a lot of
transactions that involve people, including the benefits they receive and how they
are treated by the organization. Tracking HR activities via human resource
information system that is efficient and effective for many business organizations .
For the owners, it is usually a matter of the system is reasonable and appropriate
to the needs of the organization. The importence of HRIS to the categories are:

• Faster information process
• Greater information acuracy
• Improved planning and program development
• Enhanced employee communication.

FUNCTIONS OF HRIS
With an appropriate HRIS, Human Resources staff enables employees to do their
own benefits updates and address changes, thus freeing HR staff for more strategic
functions. Additionally, data necessary for employee management, knowledge
development, career growth and development, and equal treatment is facilitated.
Finally, managers can access the information they need to legally, ethically, and
effectively support the success of their reporting employees.
MAINTAINING PERSONNEL RECORDS
HR management system is a component covering many other HR aspects from
application to retirement. The system records basic demographic and address data,
selection, training and development, capabilities and skills management,
compensation planning records and other activities related. Sophisticated systems
provide the ability to "read” applications and enter relevant data to applicable
database fields, notify employers and provide position management and position
control. Human resource management function involves the recruitment,
placement, evaluation, compensation and development of employees in an
organization .
IDENTIFICATION OF MANPOWER REQUIREMENTS
In the most basic sense, HR information systems will organize information about
each job in the organization. This information may include information such as who

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is in the position, what he was paid and what job responsibilities, training
requirements and benefits are given. The report on the position of the groups or
the entire workforce can be used to determine the needs of workforce. As an
exmaple, to increase production at the plant, manager need to make sure there are
enough workers for product development to insert in the duty roster. With a
computerized system, manager can study the effects of development, such as how
much it would cost to hire more workers would be needed .
IDENTIFY RESOURCES
When manager must make a decision as to how much manpower will be needed,
they want to quickly determine how much it needed. Using HRIS, manager can
make better decisions. Instead of jumping immediately with plans to recruit and
train new workers for the expansion of factory production, manager can pull
reports from HRIS, identify employees who have the skills and training to be
promoted to a new position . Then , manager can hire low-skilled workers to replace
them.
MEET TRAINING REQUIREMENTS
An HRIS system can help employers to manage their training needs, which allows
them to complete the mandated training and selection. For example, in HRI , an
employee may go to a description of training courses available and course requests
for personal learning. When training becomes available, HRIS tell manager so he
can enroll and complete the training. In this type of model, HRIS help organizations
to manage training needs much automatically. Also, when employees are ready to
apply for promotions, they probably already have a lot of training that they need
because they have taken it in anticipation of promotion.
PRODUCE PAY CHECKS AND PAYROLL REPORTS
Payroll module automates the pay process by gathering data on employee time and
attendance, calculating various deductions and taxes, and generating periodic pay
checks and employee tax reports. Data are usually fed from the human resources
and time keeping modules to calculate automatic deposit and manual check writing
capabilities . This system can encompass all transactions associated with employee
and integrate with existing financial management system available.
KEEPING TIME AND ATTENDANCE RECORD
Time and attendance system gathers standardized time and work related efforts.
The most advanced system provide broad flexibility in data collection methods,

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labor distribution capabilities and data analysis features. Analysis of cost and
efficiency metrics are the primary functions .
TRACK EMPLOYEE BENEFITS PROGRAMS
Benefits administration system provides a system for organizations to administer
and track employee participation in benefits programs. These usually include
insurance, compensation , profit sharing and retirement .
Many organizations have gone beyond the traditional functions and developed
human resource management information system, which supports the
recruitment, selection, hiring, job placement, performance appraisals, employee
benefit analysis, health, safety and security, while others integrate outsourced
applicant tracking system that includes a subset above .

Summarize
Define human resource strategic planning
The importance of human resource planning
The activities involved in human resource planning

- Forecasting human resource requirements
- Forecasting human resource availability
- Comparing requirement and availability
- Develop and implement human resource strategies
- Evaluation the implementation of strategies
Define human resource information system (HRIS)
The importance of HRIS to the organization
The information should be included in HRIS
The function of HRIS

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4.0 RECRUITMENT AND SELECTION

RECRUITMENT AND SELECTION PROCESSES
Definition recruitment and selection
Recruitment is meant to find the people to join the organization and it is the process
of inviting candidates for applying to job. Recruitment always happens before
selection process of candidates. Candidates who got identified as a right qualified
people will be invited to the selection procedure which involves different kinds of
tests for knowing knowledge, skills and attitude that are required for performing
would be given job. Simply mean recruitment is a process of calling candidates by
way of giving notification in the newspapers, advertisements, publishing on
websites and contacting drop consultancies, et cetera. Ultimately without the
recruitment, there is scope for selection process. All the candidates who were
invited in the recruitment may not be selected because candidates have to go
through selection process for proving their talent.
Recruitment is the process of discovering competent employee out of available
candidates in the market who are suitable to job and according to organization
requirements.

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Recruitment is the process of attracting prospective employees and stimulating
them for applying job in an organization.

Selection is the process of interviewing and evaluating the candidates for a specific
job and selecting an individual for employment based on certain criteria
(qualifications, skills and experience). Employee selection can range from a very
simple process to a very complicated process depending on the firm hiring and the
position. Certain employment laws such as anti-discrimination laws must be
obeyed during employee selection.

Selection is the process of putting right men on right job. It is a procedure of
matching organizational requirements with the skills and qualifications of people.
Selection is the process of choosing individuals who have relevant qualifications to
fill jobs in an organization. Without qualified employees, an organization is in a
poorer position to succeed.
Selection is much more than just choosing the best available person. Selecting the
appropriate set of knowledge, skills, and abilities (KSAs)—which come packaged in
a human being—is an attempt to get a “fit” between what the applicant can and
wants to do, and what the organization needs. The task is made more difficult
because it is not always possible to tell exactly what the applicant really can and
wants to do. Fit between the applicant and the organization affects both the
employer’s willingness to make a job offer and an applicant’s willingness to accept
a job. Fitting a person to the right job is called placement.
Good selection and placement decisions are an important part of successful HR
management. Some would argue that these decisions are the most important part.
Productivity improvement for an employer may come from changes in incentive
pay plans, improved training, or better job design; but unless the employer has the
necessary people with the appropriate KSAs in place, those changes may not have
much impact. The very best training will not enable someone with little aptitude for
a certain job to do that job well and enjoy it.

The HR Manager screens and interviews potential employees on behalf of the
organization. They conduct pre-employment tests and reference checks as well as
provide training and guidance to hiring managers on policies, process, and

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regulatory issues. Additionally, they may place employment advertisements and
analyze reports and trends.

Purpose
The purpose of selection is to pick up the most suitable candidate who would meet
the requirements of the job in an organization best, to find out which job applicant
will be successful, if hired. To meet this goal, the company obtains and assesses
information about the applicants in terms of age, qualifications, skills, experience,
etc. the needs of the job are matched with the profile of candidates. The most
suitable person is then picked up after eliminating the unsuitable applicants
through successive stages of selection process. How well an employee is matched
to a job is very important because it is directly affects the amount and quality of
employee’s work. Any mismatched in this regard can cost an organization a great
deal of money, time and trouble, especially, in terms of training and operating costs.
In course of time, the employee may find the job distasteful and leave in frustration.
He may even circulate ‘hot news’ and juicy bits of negative information about the
company, causing incalculable harm to the company in the long run. Effective
election, therefore, demands constant monitoring of the ‘fit’ between people the
job.

BASIC PROCESS OF RECRUITMENT

a. Requirement from human resource planning and managers’
requisition

Plan of human resource that have been done previously by HR manager
about the exact number of people with the right skills needed to meet
forecast requirements are being used for a process of recruitment.

b. Evaluate alternative of recruitment
When an organization decides to add personnel to its staff, it makes a
significant financial investment. Recruitment and selection costs are high,
especially for professionals, technical and managerial employees.
Therefore before an organization decides to recruit new employees, it
ought to consider the feasibility of other alternative

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i. Outsourcing
Outsourcing is the process of transferring responsibility for an area
of service and its objective to an external service provider instead of
internal employee.

ii. Subcontracting
The subcontracting is a business practice wherein a certain portion
of the work is delegated to other specialized agencies to meet a
surge in the demand for goods and services. Here, the contractor
with a mutual consent assigns some task to some other specialist
contractor who helps in completing the project. The subcontracting
is prevalent in the complex jobs such as construction, building, and
information technology.

iii. Professional Employer Organization (Employee Leasing)
The employee leasing is also called as “staff outsourcing” wherein
the permanent employees of other firms are hired due to their
specialization in a certain field on a lease basis to meet the short
term requirements of the client company. Here the individuals work
for the leasing firm.

iv. Overtime
Perhaps the most commonly used method of meeting short-term
fluctuation in work volume is through the use of overtime.

v. Temporary Employment
The temporary employees are those who are hired for a specific time
period until the task gets accomplished.

c. Sources for recruitment
In planning recruiting activities, an organization needs to know how many
applicants must be recruited. Since some applicants may not be satisfactory
an others may not accept the job offers, and organization must recruit more
applicants than it expects to hire. Now we will discuss the different sources
of recruitment that are available to organization. In organizations there is
two sources of recruitment which are

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a. Internal sources

b. External sources

RECRUITMENT SOURCES

INTERNAL SOURCES EXTERNAL SOURCES

Promotions College recruitment

Transfers Competitors and other firms

Employee Referrals Employment agencies

Former Employees Labour unions

Retrenched Employees Executive search firms

Professional associations

Internet recruitment

Media sources

d. Recruited individual
Organization has a pool of qualified candidates/applicants to choose
from after running through those processes hence come the next step.
ADVANTAGES AND DISADVANTAGES OF INTERNAL AND EXTERNAL SOURCES OF
RECRUITMENT

Advantages and disadvantages are associated with promoting from within the
organization (internal recruitment) and hiring from outside the organization
(external recruitment) to fill openings. Promotion from within generally is thought
to be a positive force in rewarding good work, and some organizations use it well
indeed. However, if followed exclusively, it has the major disadvantage of
perpetuating old ways of operating. In addition, there are equal employment
concerns with using internal recruiting if protected-class members are not already
represented adequately in the organization.

ADVANTAGES INTERNAL RECRUITREMENT

Morale of promote
Better assessment of abilities
Lower cost for some jobs
Motivators for good performance

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Causes a succession of promotions
Have to hire only at entry level

DISADVANTAGES INTERNAL RECRUITREMENT

Inbreeding
Possible morale problems of those not promoted
“political” infighting for promotions
Need for management development programs

ADVANTAGES EXTERNAL RECRUITREMENT

New ‘blood’ brings new perspectives
Cheaper and faster than training professionals
no group of political supporters in organization already
may bring new industry insights

DISADVANTAGES EXTERNAL RECRUITREMENT

May not select someone who will ‘fit’ the job or organization
May cause morale problems for internal candidates not selected
Longer ‘adjustment’ or orientation time

EXTERNAL RECRUITMENT
A limited understanding about the company
When a candidate is selected from an external recruirement process, there
is a possibility that the candidate might have less chance of understanding
the environment of the company. And this lesser understanding can make a
big difference in the future activities of the company. Therefore, there is
some sort of issues with an external process which needs to be rectified for
a better understanding of the company environment.
Higher risk
There is a possibility that the candidate selected for the post is worthy of
the position offered and he/she can take advantage of their position in the
company. This type of risk is very much common in an external recruirement
process as most of the candidates applied for the job is total strangers to

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the company. And that is why it is considered as one of the higher risk
processes of recruitment.
Time consuming
The main disadvantages of external recruirement is that it is time consuming
as most of the companies post an advertisement of their company
recruitment drive, then there is a quite possible chance of receiving a higher
number applicants for the post and the recruiter need to be very careful
with their decision of selecting the best candidate for each round selection
process. And these different rounds of selection take a bit longer than the
internal recruirement process as it involves a number of processes.
High cost
As most part of external requirement process mainly deals with complete
new candidates then the company need to come up with a pay scale for
candidates which should value his/her skills and ability. This can turn things
a bit costly for the company as they are in need of new ideas and to get such
new and creative ideas for the potential candidate. The company needs to
provide him/her the best possible deal to refuse. With all these aspects, the
company needs to provide intense training for the candidates, screening
large number of candidates consumes more money. Internal disputes with
existing employees
Internal disputes with existing employees
When a company considers a fresh candidate for the higher post than the
existing candidates, then there is a higher possibility that the company
existing employees might show some sort of internal dispute can lead things
into a completely different level. And eventually, the company can fall on
their back with such differences of opinions.
Agencies are not trusted
By recruiting candidates through external recruitment, recruitment
agencies play the role where they do not have adequate knowledge about
the culture of the organization and their intrinsic qualities. They also do not
care much about the key requirements of the posts.
Invites unsuited applicants
External advertising methods are something that happens in large scale
through print media and hence a large number of applicants who are not fit

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the job post are drawn in. there are number of unsuitable who line up for
low level job positions.
Legal risks
There are chances for legal issues when external recruitment is carried on.
When hiring intact teams, top hiring talents are recruited with non-compete
recruitment which may lead to legal issues.
Varied category of applicants can be met
When external recruitment is considered, there is a large pool of applicants
who are met. Applicants with carried experience, background, skills and
abilities are met. Since there is abundant talents met, picking the right
candidate can be mudding. By this way, new decision making and planning
aspects can be discovered.

SELECTION PROCESS

THE SELECTION PROCESS
Selection process involves rejection of unsuitable or less suitable applicants. This
may be done at any of the successive hurdles which an applicant must cross. These
hurdles act as screens designed to eliminate an unqualified applicant at any point
in the process. This technique is known as the ‘successive hurdles technique’. These
hurdles is ‘go, no-go’ gauges. Those who qualify a hurdle go to the next one; those
who do not qualify are dropped out. Not all selection processes, however, include
these hurdles. The complexity of the process usually increases with the level and
responsibility of the position to be filled. Moreover, these hurdles need not
necessarily be placed in the same order. Their arrangement may differ from
organization to organization.

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PRELIMINARY SCREENING [STAGE 1]
This is a sorting process in which prospective applicants are given the
necessary information about the nature of the job and also, necessary information
is elicited from the candidates about their education, experience, skill, salary
expected, etc. If the candidate is found to be suitable, he is selected for further
process and, if not, he is eliminated. This is a crude screening and can be done
across the counter in the organization’s employment offices. This is done by a junior
executive in the personnel department. Due care should be taken so that suitable
candidates are not turned down in a hurry. Since this provides personal contact for
an individual with the company, the interviewer should be courteous, kind,
receptive and informal.

When a candidate is found suitable, an application form is given to him to fill in and
submit.

REVIEW OF APPLICATION FORM AND RESUMES [STAGE 2]
Review application form and resumes is the process used to verify whether an
applicant meets essential and preferred criteria set out in the job profile and job
posting and determines which applicants will be considered for further assessment.

Review the application (i.e. cover letter, resume, application form) to see whether
the individual mentions the essential criteria and to what extent. For example: The
essential criteria includes “experience giving presentations to a wide variety of
audiences” and the resume states: “I have given numerous presentations to
audiences ranging in size from 10 to 1000.” If the individual makes no mention of
essential criteria, it can be considered that they do not meet the requirements of
the role.

Factors considered when review of application form and resumes:
 Previous Experience is probably the most useful screening criteria
available - relevant experience having been defined in the job

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profile and/or job posting. Consider also the quality of the
experience.
 Educational Requirements must be necessary for effective
performance of the job, and then only those applicants who have
the qualification stated in the job profile and/or job posting
should be shortlisted. When screening on educational
requirements, you must consider foreign degrees that have been
granted Canadian equivalency.
 Equivalencies or equivalent combinations of education and
experience are often used in screening. Equivalencies must be
clearly outlined in the job requirements. For example, a “two-
year diploma with four years’ related experience” may be
considered equivalent to a “degree with two years’ related
experience.” In some cases where a certain level of education is
required, there is no provision/flexibility for equivalency (e.g.
engineers).
 Occupational Certifications can be used only if possession or
eligibility for such credentials is a bona fide occupational
requirement.
 Professional Designations - some positions have a requirement
for a particular professional designation. This is usually because
of legislative or policy requirements for licensing.
 Driver’s or Other Licenses must be absolutely necessary in order
to work in the position. Asking for credentials without a bona fide
occupational requirement can create barriers to otherwise
qualified applicants.

SELECTION TESTS [STAGE 3]
A test is a sample of an aspect of an individual’s behavior,
performance or attitude. It can also be a systematic procedure for
comparing the behavior of two or more persons.

Purpose of Tests: The basic assumption underlying the use of tests
in personnel selection is that individuals are different in their job-

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related abilities and skills and that these skills can be adequately and
accurately measured.
Tests seek to eliminate the possibility of prejudice on the part of the
interviewer or supervisor. Potential ability only will govern
selection decisions.

The other major advantage is that the tests may uncover
qualifications and talents that would not be detected by interviews
or by listing of education and job experience.

Types of Tests: The various tests used in selection can be put in to
four categories:

a) Cognitive Aptitude Test
b) Physical Ability Test
c) Work Sample Test
d) Personality Test

These tests and what they measure are described below.

a) Cognitive Aptitude Test
These tests measure the latent ability of a candidate to learn a new
job or skill. Through these tests you can detect peculiarity or defects
in a person’s sensory or intellectual capacity. These focus attention
on particular types of talent such as learning, reasoning and
mechanical or musical aptitude. ’Instruments’ used are variously
described as tests of ‘intelligence’, ‘mental ability’, ‘mental
alertness’, or simply as ‘personnel tests’.

These are of three types:
i) Mental Tests: These measure the overall intellectual ability
or the intelligence quotient (I.Q.) of a person and enable us
to know whether he has the mental capacity to deal with
new problems. These determine an employee’s fluency

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in language, memory, interaction, reasoning, speed of
perception, and spatial visualisation.

ii) Mechanical Aptitude Tests: These measure the capacity of
a person to learn a particular type of mechanical work.
These are useful when apprentices, machinists, mechanics,
maintenance workers, and mechanical technicians are to be
selected.

iii) Psychomotor or Skill Tests: These measure a person’s
ability to do a specific job. These are administered to
determine mental dexterity or motor ability and similar
attributes involving muscular movement, control and
coordination. These are primarily used in the selection of
workers who have to perform semi-skilled and repetitive
jobs, like assembly work, packing, testing, inspection and so
on.

b) Physical Ability Test
Physical ability tests typically ask individuals to perform job-related tasks requiring
manual labor or physical skill. These tasks measure physical abilities such as
strength, muscular flexibility, and stamina. Examples of physical ability tests
include:

 Muscular Tension Tests - Tasks requiring pushing,
pulling, lifting

 Muscular Power Tests - Tasks requiring the individual
to overcome some initial resistance (e.g., loosening a
nut on a bolt)

 Muscular Endurance Tests - Tasks involving
repetitions of tool use (e.g.,

removing objects from belts)
 Cardiovascular Endurance Tests - Tasks assessing
aerobic capacity (e.g.,

climbing stairs)

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 Flexibility Tests - Tasks where bending, twisting,
stretching or reaching of a body segment occurs (e.g.,
installing lighting fixtures)

 Balance Tests - Tasks in which stability of body
position is difficult to maintain (e.g., standing on rungs
of a ladder)

d) Work sample test

These measure the
proficiency with
which equipment
can be handled by
the candidate. This
is done by giving
him a piece of
work to judge how efficiently he does it. For example, a typing test would provide
the material to be typed and note the time taken and mistakes committed.

c) Personality Tests
These discover clues to an individual’s value system, his emotional reactions,
maturity and his characteristic mood. The tests help in assessing a person’s
motivation, his ability to adjust himself to the stresses of everyday life and his
capacity for interpersonal relations and for projecting an impressive image of
himself. They are expressed in terms of the relative significance of such traits of a
person as self-confidence, ambition, tact, emotional control, optimism,
decisiveness, sociability, conformity, objectivity, patience, fear, distrust, initiative,
judgement, dominance, impulsiveness, sympathy, integrity, and stability. These
tests are given to predict potential performance and success for supervisory or
managerial jobs. The personality tests are basically of three types:
i) Objective Tests: These measure neurotic tendencies, self-sufficiency,
dominance, submission and self-confidence.

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