c

c

These are carried out by HR managers to fulfil the goals and objectives of the
organisation. They are classified into two broad categories, managerial and
operative functions.

c

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|t involves the process of pre-determining the personnel programmes
that are necessary to attain the organisational goals. Accurate forecasting is
vital to the success of any plan. The steps involved in the planning are:
R Establishing goals and objectives to be achieved
R Developing rules and procedures
R Determining plans and forecasting techniques

^ 
|t¶s a process through which the firm establishes its structure and
determines the authority, responsibility and accountability of each member in
relation to the job. Organising involves:
R Giving each member a specific task
R Establishing departments and divisions
R Delegating authority to the members
R Establishing channel of authority and communication
R Creating a system to coordinate the works of the members

V 
This deals with the creation and maintenance of human resources through
employment, compensation, benefits, training and development and industrial
relations measures. The steps are:
R Determining the type of people to be hired
R Recruiting prospective employees and selecting the best ones from them
R Compensating the employees
R Training and developing the employees
R Setting performance standards and evaluating the employees performance
R Counselling the employees

m 
|t¶s the sum of several activities like communication, leadership and
motivation. Directing as a function, aims at securing willing cooperation from
the individuals and groups to achieve the predetermined goals. |t includes the
following activities:
R Getting works done through subordinates
R Motivating subordinates to strive for better performance
R Maintaining the group morale



|s the process of checking the efficiency of the individuals and the groups in
fulfilling the plans and goals through follow -up measures. The processes
involved are:
R Establishment of standard performance
R Measurement of actual performance
R Comparison of actual performance with the standard one to find the deviation
R |nitiation of corrective action



  




The operative functions of personnel management are related to

specific activities of personnel management viz., employment, development,
compensation and relations. All these functions are interacted by managerial
functions. Further these functions are to be performed in conjunction with
management functions.

  !" 

|t is the first operative function of HRM. Employment is concerned with

securing and employing the people possessing required kind and level of
human resources necessary to achieve the organizational objectives. |t covers
the functions such as j ob analysis, human resources planning, recruitment,
selection, placement, induction and internal mobility.

^ #$ "

|t is the process of study and collection of information relating to the

operations and responsibilities of a specific job. |t include s:

R Collection of data, information, facts and ideas relating to various aspects of

jobs including men, machines and materials.
R Preparation of job description, job specification, job requirements and
employee specification which help in identifying the natu re, levels and
quantum of human resources.
R Providing the guides, plans and basis for job design and for all operative
functions of HRM.


V %& &

|t is a process for determination and assuring that the organization will

have an adequate number of qualified persons, available at proper times,
performing jobs which would meet the needs of the organization and which
would provide satisfaction for the individuals involved. |t involves

R Estimation of present and future requirement and supply of human resources

basing on objectives and long range plans of the organization.
R Calculation of net human resources requirement based on present inventory
of human resources.
R Taking steps to mould, change, and develop the strength of existing
employees in the organization so as to meet the future human resources
requirements.
R Preparation of action programs to get the rest of human resources from
outside the organization and to develop the human resources of existing
employees.


m & 

|t is the process of searching for prospective employees and stimulating

them to apply for jobs in an organization. |t deals with:

R |dentification of existing sources of applicants and developing them.

R Creation / |dentification of new sources of applicants.
R Stimulating the candidates to apply for jobs in the organization.
R Striking a balance between internal and external sources.

 

|t is the process of ascertaining the qualifications, experience, skill,

knowledge etc., of an applicant with a view to appraising his / her suitability to
a job appraising.

'&&(

R Framing and developing application blanks.

R Creating and developing valid and reliable testing techniques.
R Formulating interviewing techniques.
R Checking of references.
R Setting up medical examination policy and procedure.
R Line manager¶s decision.
R Sending letters of appointment and rejection.
R Employing the selected candidates who report for duty.
Õ  

|t is the process of assigning the selected candidate with the most suitable
job in terms of job requirements. |t is matching of employees specifications
with job requirements. This function includes:

R Counselling
R Conducting follow-up study, appraising employee performance in order to
determine employee¶s adjustment with the job.
R Correcting misplacements, if any.

Ú (&(

|nduction and orientation are the techniques by which a new employee

is rehabilitated in the changed surroundings and introduced to the practices,
policies, purposes and people etc., of the organization.

R Acquaint the employee with the company philosophy, objectives, policies,

career planning and development, opportunities, product, market share, social
and community standing, company history, culture etc.
R |ntroduce the employee to the people with whom he has to work such as
peers, supervisors and subordinates.
R Mould the employee attitude by orienting him to the new working and social
environment.


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this level of integration constitutes strategic HRM - that is the role of the HRM
function is to design systems a nd programs that implement the strategic plan.
This level of integration often leads to strategic plans that the company cannot
successfully implement.

*+",

Two way linkage allows for consideration of human resources issues during
the strategy formulation process. This integration occurs in three sequential
steps. First the strategic planning team informs the HRM function of the
various strategies the company is considering. Then HRM executives analyze
the human resources implications of the var ious strategies, presenting the
results of this analysis to the strategic planning team. Finally, after the
strategic decision has been made, the strategic plan is passed on to the HRM
executive who develops programs to implement it. The strategic planning
function and the HRM function are interdependent in two way linkage.

 ,

|ntegrative linkage is dynamic and multifaceted, based on continuing rather

than sequential interaction. |n most cases the HRM executive is an integral
member of the senior management team. Rather than an iterative process of
information exchange companies with integrative linkage have their HRM
functions built right into the strategy formulation and implementation process.

Thus in strategic HRM, the HRM function is involved in both strategy

formulation and strategy implementation. The HRM executive gives strategic
planners information about the company¶s human resource capabilities and
these capabilities are usually a direct function of the HRM practices. This
information about human resource capabilities helps top managers choose the
best strategy because they can consider how well each strategic alternative
would be implemented. Once the strategic choice has been determined, the
role of HRM changes to the developme nt and alignment of HRM practices that
will give the company employees having the necessary skills to implement the
strategy. |n addition HRM practices must be designed to elicit actions from
employees in the company.

 ! 
'(-"%„

The role of the Human Resource Manager is evolving with the change in
competitive market environment and the realization that Human Resource
Management must play a more strategic role in the success of an
organization. Organizations that do not put their e mphasis on attracting and
retaining talents may find themselves in dire consequences, as their
competitors may be outplaying them in the strategic employment of their
human resources. With the increase in competition, locally or globally,
organizations must become more adaptable, resilient, agile, and customer -
focused to succeed. And within this change in environment, the HR
professional has to evolve to become a strategic partner, an employee
sponsor or advocate, and a change mentor within the organization . |n order to
succeed, HR must be a business driven function with a thorough
understanding of the organization¶s big picture and be able to influence key
decisions and policies.

Major challenges are«..

- The Global Challenge

- The Challenge of Meeting Stakeholders¶ Needs
- The High Performance Work System Challenge

The Global Challenge

Expand into foreign markets.

Prepare employees to work in foreign locations.
Communication and Compensation
Cultural conflicts
Performance and Decision-making

The research has shown that the HR function in international organization

has to meet a series of challenges. Three key conclusions about the role of
HR professionals working in the field of international recruitment selection
and assessment can be drawn:

The added value of the HR function in an international firm lies in its ability
to manage the delicate, balance between globally coordinated systems and
sensitivity to local needs, including cultural differences, in a way that align
with both business needs and senior management philosophy. There now
appear to be a distinction to be made between international HRM and
 global HRM. |n this transition, the old functional divides between
international recruitment, international management development and
international reward management have become increasingly weak.

Over the last 20 years, the workplace has changed in more ways that one
could have ever imagined, resulting from the increase in technology,
innovation and globalization. The next decade will bring ev en greater
change, impacting all facets of the workplace, including major changes for
the HR department and HR managers. |n order to respond to the demands
of globalization, HR managers will require new skills and competencies
relating to language and culture, technology capabilities to facilitate
overseas communication, methods to measure and quantify effectiveness
and evaluate strategies and return on investment. Evidently, these new
skills and competencies will result in an emerging new role for HR
managers, requiring them to be strategic business partner, supportive of
the overall corporate strategy.

The future role of HR professional will change from a less administrative

role to more of a strategic role. HR managers will continually be required to
prove their effectiveness and their existence. They will be expected to
understand international business practices and promote cultural diversity
within the organization. They will need to understand the core business of
the organization and become partners with line managers. They will need
to prove that their initiatives and programs are result -oriented, providing
specific measurable results in terms of business competitiveness that
contribute positively to the bottom -line of the organization. They will be
required to stay current with leading edge as more and more organization
is faced with the demands of globalization and strategic alliances with other
organization around the world.

- The Challenge of Meeting Stakeholders¶ Needs

Stakeholders

Stockholders Customers Employees Community

- The balanced scorecard

- Meeting customer needs for quality

 - Labour force diversity

- Structure of the economy

- Skill deficiencies

- Changes in employment contract

- Employee values

- Legal issue (EEO, Affirmative action plan)

- Ethical considerations

The High Performance Work System Challenge

- Change in work roles & skills -Technical Change

- Use of teams

- Change in nature of managerial work

- Change in company structures

- Availability of information on people

- |ncreased competitiveness

% ( 

 !  ( 

(&


Organizations are increasingly looking at human resources as a unique asset

that can provide sustained competitive advantage. The changes in the
business environment with increasing globalization, changing demographics
of the workforce, increased focus on profitability through growth, technological
changes, intellectual capital and the never ending changes that organizations
are undergoing have led to increased importance of managing human
resources. A human resource (HR) department that is highly administr ative
and lacks strategic integration fails to provide the competitive advantage
needed for survival, thus losing its relevance. |t is important not only to identify
HR competencies in concurrence with the business needs and to develop
selection and development practices to secure those competencies, but also
to evolve and implement a performance evaluation plan that links the
performance of the employees to the strategic goals.


Strategy-The company¶s long term plan for how it will balanc e its internal
strengths and weaknesses with its external opportunities and threats to
maintain competitive advantage. Thus, the president and his or her staff might
decide to enter new markets, would drop product lines, or embark on a five
year cost cutting plan. Then he or she would more or less leave the personal
implications of that plan (hiring or firing new workers, hiring outplacement
firms for those fired, and so on) for HR management to carry out. Today HR
plays a more central role.

Managers engage in 3 levels of strategic planning for their firms.

- Corporate level strategy |t identifies the portfolio of businesses that

compromise the organization, ant the ways in which these businesses
relate to one another.
- Business level competitive strategy |t identifies how its managers will
build and strengthen that business¶s long term competitive position in
the market place.
- Functional strategy |t identifies the basic courses of action that each
of the departments will pursue in order to help the busi ness to attain its
competitive goals.

%. 
Today, it¶s the firm¶s workforce-its knowledge, commitment, skills & training -
that provides the competitive advantage for world class companies like
Microsoft, Sony« That means an upgrading role of HR¶s traditional role. As
new technologies in areas like testing & interviewing began to emerge, the
personnel department began to play an expanded role in employee selection,
training & promotion. |n today¶s flattened, downsized & high performing
organizations, trained and committed employees -not machines-are the firm¶s
competitive key.

%& &„ 

|f a firm¶s competitiveness depends on its employees, then the business
function responsible for acquiring, training and compensating th ose
employees has to play a bigger role in the firm¶s success. SHRM is the linking
of HRM with strategic goals and objectives in order to improve business
performance and develop organizational cultures that foster innovation &
flexibility. |deally HR and tom management together craft the company¶s
business strategy. That strategy then provides the framework that guides the
design of specific HR activities such as recruiting and training.

%. 
Unfortunately, HR¶s long history as a staff or advisory function has left it with a
somewhat improvised reputation-some still tend to view it as less than it is.
For example, one view is that HR is strictly operational and that HR activities
are not strategic at all.

A second, more expansive, view is that HR¶s role is to adapt individual HR

practices to fit specific corporate and competitive strategies. The HRM system
must be tailored to the demands of business strategy.

A third view of HRM is that it is an equal partner in the strategic pl anning

process. Here HR¶s role is not just to adapt its activities to the firm¶s business
strategy. |nstead, the need to forge the firm¶s workforce into a competitive
advantage means that HRM must be an equal partner in both the formulation
and the implementation of the company¶sstrategies.

%./& "0
HR handles the execution of most of firm¶s downsizing and restructuring
strategies-by outplaying employees, instituting pay for performance plans,
reducing health care costs, retraining employees. Strategy execution usually
involves identifying and reducing costs, and therefore value chain analysis. A
company¶s value chain identifies the primary activities that create value for
customers and the related support activities. 

%. & "0

Formulating a strategic plan requires identifying, analyzing and balancing the
company¶s external opportunities and threats & its internal strengths and
weakness. HR plays a role here too. Formulating plans requires competi tive
intelligence, and HRM can supply useful information. Details regarding new
competitors¶ incentive plans about pending legislation like labor laws or
mandatory health insurance are some examples.

&
Managers and supervisors in every department confront human resource
issues every day and are responsible not only for interactions within their own
department, but also interactions between departments. The primary function
of human resources management today is to ensure the effective and efficien t
use of human talent to accomplish an organization¶s goals and objectives.

Using human resources as a competitive advantage means analyzing what

factors are necessary for the organization¶s long -term success. Areas such as
organizational design, key work processes, teams, hiring effective employees,
promotion strategies, defining competencies and performance measures,
training and development programs for current jobs and preparation for future
positions, reward and recognition systems, motivation and ret ention, and
customer perceptions of the organization and employees are essential to this
concept.

|n order to formulate appropriate competitive advantage through employees, it

is first necessary to analyze the firm's competitive strategy or business
strategy and organizational human resource practices. The organization
should create a complete model of HRM and employment relationship; also it
should support long-term thinking, building ³core competencies´ and also
develop ³sensing´ capabilities.

Accordingly, it is the responsibility of managers and supervisors to ensure that

employees are motivated, productive and positive - if not enthusiastic - about
their work. This means integrating human resources practices with core
business practices: encouraging al l departments to work together on "people"
programs that bring value to the organization and improve productivity and
quality in products and services. Positive human resources business
programs and organizational behaviour strategies translate into a posi tive
overall impact on the organization.

!$(%! 

There are many different roles and responsibilities that can be

performed by the HR department depending on the size of the organization,
the demographic profile of the employees' roster, the industry where the
business belongs, values and corporate culture prevalent within, and the
priorities of top management, and in the case of a small business, the
priorities of its owner.

The HR in small organizations may take full responsibility for all human
resource activities. Whereas in others, it may share the roles and
responsibilities of other departments such as the finance or administration.
While in others, it acts as an internal consultant and makes all the HR -related
decisions in support of strategic business directions.

|n the recent years it is noticeable that more and more organizations are
looking at HR professionals as their strategic partners in quality management,
corporate planning, business operations, and business pro fitability. HR
management now takes the forefront in strategic planning and expansions in
ways that enhance the image and value of the organization.


!$%! 

1 !" (& |nterviewing, recruiting, testing,

 temporary labor coordination 
^1( !  Orientation, performance management,
 skills training, productivity
enhancement. 

V1
 ! Wage and salary administration, job
 descriptions, executive compensation,
incentive pay, job evaluation. 

m1- |nsurance, vacation leave
 administration, retirement plans, profit
sharing, stock plans.

1 !"   Employee assistance programs,
 relocation services, outplacement
services.

Õ1 !" (
 &" Attitude surveys, labor relations,
 publications, labor law compliance,
 discipline

Ú1%'( " Safety inspection, drug testing, health,
 wellness.

21  |nternational human resources,
 forecasting, planning, mergers and
acquisitions.

61( |nformation systems, records.
 




%! 

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 "55"4!&

The roles and responsibilities of the HR department are summarized in Figure

above

The vertical dimension represents the focus of a future or strategic orientation

versus day-to-day operational orientation. The activities are shown as people
versus process along the horizontal dimension. The figure shows that the HR
function can play roles in the management of strategic human resources
(Strategic Partner), the management of company inf rastructure (Administrative
expert), the management of transformation and change (Change agent) and
the management of employee contribution (Employee advocate).
1 

Aligning HRM strategies to business strategies is important to help the

company execute its business strategy.

^1 (  /!
Playing the role of administrative expert requires designing and delivering
efficient and effective HRM systems, processes and practices. These include
systems for selection, training, develop ing, appraising and rewarding
employees.

V1 !" ( 

The employee advocate role entails managing the commitment and

contributions of employees. No matter how skilled workers may be, if they are
alienated or angry, they will not contribute their efforts to the firm¶s success
nor will they stay with the firm for long.

m1
' 

The final role change agent requires that HRM help transform organizations to
meet the new competitive conditions. |n today¶s fast changing competitive
world HR managers need to help identify and manage processes for change.



& ( 

 -|nternal and External recruitment

The & (  is one of the basic HR Processes.

Recruitment and Selection is very sensitive as many managers have a need
to hire a new employee and this process is always under a strict monitoring
from their side.

The & (  must be simple and must be robust

enough to operate excellently in the moment of the insufficient number of
candidates on the job market and the process must be also able to process a
large number of candidates within given time limit.

The?

? ?

   ? ?
  ?  is a key to the success
of any Human Resources Department.

/& 

The External Recruitment is the source of the fresh blood for the organization.
As a very critical HR Process, the external recruitment process has to be se t
up very carefully. The external recruitment involves other external parties and
they have to cooperate closely to bring a common success for the
organization. The external recruitment is a difficult HR Process when it has to
be done properly and meeting stretching requirements and goals of the top
management.

The HRM Function has to take initiatives in four important areas to make the
external recruitment efficient, quick and bringing the right quality of
candidates:

R Organization -(
 
R
 of Job Posting
R
' (! '7$ "
R Speed of the & .

External Recruitment Channels

The /& 

' are the channels used to communicate
job vacancies to the public audience and the correct usage of the external
recruitment channels brings the right candidates for the positions.

Generally, the HRM Function is responsible for monitoring the j?  and
react appropriately to the changes on the job market with the right mix of the
channels used to bring the expected level and number of candidates at the
affordable costs. The external recruitment is a very costly HR Process and it is
under the pressure for the cost savings all the time.

The HR Recruiter has always to make a complex decision based on the

following criteria:

R Speed
R Cost
R Quality
R Confidentiality
R Job Position Requirements
R Job Openings Plan and Forecast
R Available external recruitment budget

What to measure in external recruitment process?

The HRM Function cannot miss the opportunity to introduce clever external
recruitment measures, which will show the development in the area and will
provide detailed reporting to the organization.

The measures have to be defined carefully and it should cover the following
areas:

R Positions - the main reason for the external recruitment. The HRM
Function has to keep track of all open positions in the organization, the
number of positions, in departments and h ow complex the position are
as the HRM Function has to define the limits
R Time - the external recruitment process must be cut into separate
pieces to take the measures, there can¶t be a discussion over them and
the HRM Function has to measure all the vacanc ies
R Sources - the sources of the external recruitment, including the number
of candidates and the percentage of the successful candidates, it is
good for measuring the real success rate of different external
recruitment channel with different positions
R Costs - each external hire has costs associated with and the HRM
Function has to measure the efficiency of the whole process

The external recruitment process is not easy to measure and it takes a lot of
effort to implement it correctly, but reading the trends in the recruitment, it can
help the HRM Function to keep the process in the right shape.

The external recruitment is not just about choosing the right or ideal
candidate for the vacancy in the organization. The external recruitment is also
about the competition. The competition is about the attractiveness of the job
advert, communication and quick response from the organization. The
communication is essential during the external recruitment process. The
organization, which sends information to its potent ial hires, the better
relationship with the job candidate can be. The organization should inform the
job candidate about the step in the recruitment process and expecting time of
the next message. People love to be informed about the status of the
recruitment process and the organization should allow the smooth information
flow.

& 

The  &  is the most favorite source of candidates in the
stable and developed companies. The |  
?
    needs a strong
support from other HR Processes, because the unmanaged internal
recruitment process can lead to disappointed managers and employees in the
organization. The Succession Planning and strong and consistent
Performance Management are needed to ensure the success of the internal
recruitment. 

The  &  ! has a lot of benefits and it is always
difficult to decide whether to use internal or external recruitment process. The
internal recruitment is a right recruitment process for the large organization,
which promote friendliness in their corporate culture.

The corporate culture, which supports the employees to look for the
opportunities in the organization, is well designed for the internal recruitment
process and the process can be a big benefit for the organization. The
corporate culture, which is focused on a strong competition among employees
and with the external environment, this corporate culture does not support the
internal recruitment process.

|nternal Recruitment Process Weaknesses

The  &   does not have just benefits; this process
has some disadvantages as well. The |nternal Recruitment Process is a very
powerful tool, but it can be misused in hands of some employees and
managers.

The  &   is not a process to steal the best
employees from their departments. These employees should be treated as a
very scarce resource and the internal recruitment procedures should work
differently for them.
|nternal versus External Job Candidate

The selection of the *   / 7$ (( is a

common dilemma of the internal recruitment process. Many times, the
external and the internal final candidates compete for the job position. The
HRM Function and the hiring manager have to make a correct decision.

The   &  needs clear rules for the decision about
the winning candidate. The organization has to clearly define the condition for
the final decision based on the corporate culture and habits inside the
organization.

On the opposite side some organizations always prefer int ernal candidates for
job positions and they do not have to compete with the external candidates.
This is also very dangerous approach as the external candidate can bring a
new knowledge or the approach to the organization.

?


Selection is a systematic process of identifying suitable candidates for the

available jobs from the available applicant pool.

$*& (
Phases of the selection process

- '„& 

|nvolves the verification of accuracy and consistency of ensuring selection

techniques.

- '^5 ,

Ensuring the completeness of employee data to make accurate and

uncompromising hiring selection decision.

- 'V &

|dentifying the role and effectiveness of the selection p rocess from the
organizational perspective.

Phases of the selection process

Steps in selection process

- Employment application forms/blanks: Standardized format to collect

the necessary information.

- Selection test: This is a psychological test for comparing and

contrasting the behaviour of two or more persons on the basis of a
standardized measure.

- Selection interview: This is a face -to-face conversation with the

candidate to collect the required information.

- Reference check: Cross-checking information provided by the

candidates in different stages of the selection process.

- Physical examination: Medical test to ensure that candidates meet the

physical requirements of the job.

- Job offer: A job offer is a formal communication which specifies the

details of job offer made to the selected candidate.

Employment application forms/blanks

Application forms normally solicit the following information from the candidates

- Biographical information

- Educational qualifications

- Work experience

- Pay and other perquisites

- Additional information

- References
Selection tests

A test is a standardized assessment of a sample but critical behaviour of

candidates to determine their suitability for the job.

Characteristics of psychological tests

- Objectivity- |t refers to the validity and reliability of the measuring tools.

- Standardization- |t means that there is uniformity in the procedure

followed in conducting the test.

- Sample of behaviour- |t refers to test contents which should predict a

representative sample of the ev entual behaviour of the candidates.

Types of psychological tests

Types of ability test

- |ntelligence (|Q) test- The aim of an intelligence test is to measure the

general intellectual abilities of a person.

- Aptitude test- An aptitude test measures the latent talents of a person

that may be crucial to performing the job successfully.

- Achievement test- The aim of an achievement test is to measure the

knowledge gained by a person in his or her job.

Personality test
 - A personality test proposes to assess and predict these basic
characteristics of a person.
- |ts results are useful in predicting the future performance of the
candidate.
- Rorschach Blot Test (RBT), Thematic Apperception Test (TAT),
Minnesota Multiphase Personality |n ventory (MMP|) and Myers-
Briggs type indicator (MB|T) are some of the popular forms of
personality test.

|nterest test

- The aim of the interest test is to know the interest, attitude and
preference of a person towards the job offered.

- Kuder Preference Record and Strong Vocational |nterest Blank are

some well-known interest tests.

Honesty or integrity test

- |n an honesty or integrity test, the questions are asked in such a way

that the attitude and actual behaviour of the candidates can be found
out.

- These are rarely used in |ndia.

Evaluation of psychological tests

Merits

- Objective in evaluation.

- |deal for large groups.

- Predictor of intangible talents.

- Goal-specific and target-oriented.

- Record for future.

Limitations

- Lack of flexibility.
- Unsuitable for smaller groups.

Developing a test programme-steps

 - Determining the job and skills requirements.

- Deciding the types of test.

- Developing the success criteria.

- Administering the test.

- Evaluating the results.

Selection interview

- |nterview is a face to face conversation to collect information from a

candidate to determine his or her suitability for a job.

Kinds of interview

- Structured interview- |n this method, the interviewer predetermines the

questions to be asked and follows the same t o ask the interviewee a
series of questions with little or no deviation.

- Unstructured interview- |n this type of interview, the interviewer does not

pre-plan the questions to be asked. |n fact, he or she decides on the
questions as the interview proceeds.
 - |n-depth interview- The purpose of this interview is to discuss the
information concerning the candidate in detail. The intention is to ensure
that no vital information is missed out.

- Stress interview- The intention of the interviewer in this kind of in terview

is to identify sensitive candidates who have low -stress tolerance. The
purpose of a stress interview is to put the candidate in an uncomfortable
situation to see his or her ability to handle stress.

- Panel interview- A panel of two or more interviewers is formed to

interview the candidate. The interviewers are generally drawn from
different fields.

Computerized interview

|n computerized interviews, the applicant is asked computerized oral

questions and his or her oral or computerized replies are recorded.
Computerized interviews are often used as preliminary interviews.

Strategy for an effective interview process

- Familiarizing oneself with the information available.

- Getting ready with an interview plan.

Creating a supportive environment

- Conducting the interview.

- Ending the interview.

- Reviewing the performance.

Weaknesses of the interview method

- Lack of objectivity.

- Halo effect.

- |nadequacy of time.

- Lack of uniformity.

- The absence of training for the interviewers.

 „

„
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HRM practices that help companies deal with the competitive challenges can
be grouped in to the four dimensions. These dimensions include:

1. Managing the human resource environment

2. Acquiring and preparing human resources
3. Assessment and development of human resources
4. Compensating human resources

|n addition, some companies have speci al issues related to labour -

management relations, international human resource management, and
managing human resource function.

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HRM PRACT|CES

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Managing internal and external environmental factors allows employees to

make the greatest possible contribution to company productivity and
competitiveness. Creating a positive environment for human resource involves

R Linking HRM practices to the company¶s business objectives_ that is,

strategic human resource management.
R Ensuring that HRM practices comply with federal, state, and local laws..
R Designing works that motivates and satisfies the employee as well as
maximizes customer servi ces, quality and productivity

2. 9&(!!'& &

Customer needs for new products or services influence the number and type
of employees businesses need to be successful. Terminations, promotions
and retirements also influence human resource requirements. Managers need
to predict the number and type of employees who are needed to meet
customer demands for products and services. This area of human resource
management deals with:

R |dentifying human resource requirements that is, human resource

planning, recruiting employees and selecting employees
R Training employees to have the skills needed to perform their jobs.

3.  (( ! '& &

Managers need to ensure that employees have the necessary skills to

perform current and future jobs. Companies need to create a work
environment that supports employees work and nonwork activities .This
area of human resource management addresses
 R Measuring employees performance
R Preparing employees for future work roles and identifying employees
work interests, goals, values and other career issues
R Creating an employment relationship and work environment that
benefits both the company and the employee

4.
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Besides interesting work, pay and benefits are the most important incentives
that companies can offer employees in exchange for contributing to
productivity, quality and customer service. Also, pay and benefits are used to
reward employee¶s membership in the company and attract new employees.
The positive influence of new work designs , new technology and the quality
movement on productivity can be damaged if employees are not satisfied with
the level of pay and benefits or believe pay and benefits are unfairly
distributed. This area of human resour ce management includes

R Creating pay systems

R Rewarding employee contributions
R Providing employees with benefits

!&

|n some companies employees are represented by a labour union. Managing

human resources in a union environment requires knowledge of specific laws,
contract administration and the collective bargaining process

Many companies are globally expanding their business through joint ventures,
mergers, acquisitions and establishing new operations. Successful global
expansion depends on the extent to which HRM practices aligned with cultural
factors as well as management of employees sent to work in another country.
HRM practices must contribute to organizational effectiveness.

HRM practices of both managers and the human resource function mu st be

aligned and contribute to the company¶s strategic goals.

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