Human Resource

Planning:
Quantitative and
Qualitative
Dimensions
10 Sep 2024

Human Resource Planning (HRP) is a crucial process that ensures an

organization has the right number of employees, with the right skills, at the
right time to achieve its goals. HRP encompasses both quantitative and
qualitative dimensions, each addressing different aspects of workforce
management.

Quantitative Dimensions of Human Resource Planning:

Quantitative HRP focuses on the numerical aspects of workforce

management, including forecasting the number of employees required and
planning for changes in workforce size. The goal is to ensure that the
organization can meet its operational needs without surplus or shortage of
staff.

1. Workforce Forecasting
● Demand Forecasting:

This involves predicting the future workforce needs based on factors such
as business growth, expansion plans, and changes in operational
processes. Techniques include trend analysis, which examines historical
data to project future needs, and statistical models that use various
indicators to estimate future demand.

● Supply Forecasting:

This focuses on predicting the availability of internal and external labor.

Internal supply forecasting assesses current employee numbers, skills, and
potential retirements or resignations, while external supply forecasting
looks at labor market conditions and the availability of qualified candidates.

2. Employee Replacement Planning

● Succession Planning:

Identifying and preparing internal candidates to fill key positions in the

event of planned or unplanned vacancies. This involves assessing potential
candidates’ readiness and developing their skills to ensure a smooth
transition.

● Turnover Analysis:

Analyzing employee turnover rates and patterns to predict future staffing

needs. This includes calculating turnover rates, understanding reasons for
departures, and planning for replacements or adjustments.

3. Workforce Optimization
● Staffing Levels:

Determining the optimal number of employees required to meet operational

demands. This involves balancing the workload and employee capacity to
avoid under-staffing or over-staffing.

● Productivity Analysis:

Measuring employee productivity and its impact on workforce planning.

This includes analyzing performance data to ensure that staffing levels
align with productivity targets.

4. Cost Analysis
● Budgeting:
Estimating the cost of hiring, training, and compensating employees. This
includes evaluating the financial impact of workforce changes and ensuring
that the HR budget aligns with organizational goals.

● Cost-Benefit Analysis:

Assessing the financial implications of various HR decisions, such as hiring

new staff versus training existing employees, to ensure cost-effectiveness.

Qualitative Dimensions of Human Resource Planning:

Qualitative HRP focuses on the non-numerical aspects of workforce

management, emphasizing the skills, competencies, and attributes required
for employees to perform effectively. It addresses the qualitative factors
that impact employee performance and organizational success.

1. Skills and Competency Mapping

● Skill Requirements:

Identifying the specific skills and competencies needed for various roles
within the organization. This involves analyzing job descriptions,
performance standards, and future skills needs based on business strategy
and technological advancements.

● Competency Development:

Developing and implementing training programs to build the necessary

skills and competencies in the workforce. This includes creating career
development plans and providing opportunities for continuous learning and
growth.

2. Talent Management
● Recruitment and Selection:

Attracting and selecting candidates who possess the required skills,

experience, and cultural fit for the organization. This involves crafting
effective job descriptions, conducting thorough interviews, and using
assessment tools to evaluate candidates.

● Employee Engagement:
Ensuring that employees are motivated, committed, and aligned with the
organization’s goals. This includes developing strategies to enhance job
satisfaction, recognition, and work-life balance.

3. Organizational Culture and Fit

● Cultural Alignment:

Ensuring that employees’ values and behaviors align with the

organization’s culture and values. This involves assessing cultural fit during
the recruitment process and fostering a positive organizational culture
through leadership and management practices.

● Change Management:

Managing the impact of organizational changes on employees. This

includes preparing and supporting employees through transitions, such as
mergers, restructuring, or shifts in business strategy.

4. Employee Development and Succession Planning

● Career Development:

Providing employees with opportunities for growth and advancement within

the organization. This includes identifying career paths, offering
mentorship, and supporting professional development initiatives.

● Leadership Development:

Preparing employees for leadership roles by identifying potential leaders

and providing them with the necessary training and experiences. This
ensures a strong pipeline of future leaders who can drive the organization’s
success.

Integration of Quantitative and Qualitative Dimensions:

Effective HRP requires integrating both quantitative and qualitative

dimensions to create a comprehensive workforce strategy. While
quantitative methods provide the data needed for planning staffing levels
and managing costs, qualitative methods ensure that the right skills,
competencies, and cultural fit are considered.
For example, while forecasting workforce needs (quantitative), it is also
crucial to assess whether the current workforce possesses the necessary
skills and competencies (qualitative). Similarly, succession planning
(qualitative) should be aligned with turnover analysis and replacement
planning (quantitative) to ensure a seamless transition and continuity of
operations.

Job analysis: Job

Description and Job
Specification
7 Jun 2024

Job Analysis is a systematic process of gathering, documenting, and

analyzing information about a particular job. It involves examining the
tasks, duties, responsibilities, skills, qualifications, and other attributes
required for successful job performance. This process aims to provide a
comprehensive understanding of the job’s requirements, including its
purpose within the organization and its relationship to other roles. Job
analysis serves as a foundation for various HR functions, such as
recruitment, selection, training, performance appraisal, and job design. By
accurately delineating job requirements, organizations can make informed
decisions to improve productivity, efficiency, and employee satisfaction. It
ensures alignment between job roles and organizational objectives,
facilitating strategic workforce planning and development.

Job Description

Job Description is a document that outlines the duties, responsibilities,

and requirements of a specific position within an organization. It is typically
used to attract candidates for open positions and to set expectations for
employees in the role.
Components of a Job Description:

● Job title:

This is the official title of the position. It should be clear and concise and
accurately reflect the duties of the role.

● Job summary:

This is a brief overview of the position, including the main responsibilities,

goals, and objectives. It should give the candidate a general idea of what
the job entails.

● Key Responsibilities:

This section outlines the specific duties and responsibilities of the position.
It should be organized in a clear and logical manner and list the most
important tasks first.

● Qualifications:

This section outlines the skills, experience, and education required for the
position. This may include specific technical or industry-specific knowledge,
as well as soft skills like communication, teamwork, and problem-solving.

● Reporting structure:

This section outlines who the position reports to and who reports to the
position. It should give the candidate a clear idea of where they fit into the
organization.

● Compensation and Benefits:

This section outlines the salary range and any benefits associated with the
position, such as health insurance, retirement plans, or vacation time.

● Working Conditions:

This section describes the physical and environmental conditions of the job,
including the hours worked, any travel required, and any physical demands
of the position.
 ● Performance expectations:

This section outlines the performance expectations for the position,

including any key performance indicators (KPIs) or targets that the
employee will be measured against.

Job Specification

Job Specification is a detailed list of the knowledge, skills, abilities, and

other characteristics (KSAOs) required for a particular job. It describes the
qualifications and personal qualities a candidate should possess to perform
the job effectively. A job specification is typically developed by the HR
department of an organization in consultation with the hiring manager or
department head.

● Education and Training:

This includes the required level of education or training, certifications,

licenses, or any other credentials necessary to perform the job.

● Experience:

This describes the required work experience in the relevant field or

industry, including the type of roles, duration, and level of responsibility.

● Technical skills:

This includes specific technical skills or competencies required to perform

the job, such as proficiency in software, programming languages, or
specialized equipment.

● Soft skills:

This includes non-technical skills, such as communication, teamwork,

problem-solving, leadership, and adaptability, that are necessary to perform
the job.

● Knowledge:

This includes the specific knowledge areas that the candidate should
possess to perform the job, such as industry-specific knowledge, subject
matter expertise, or technical knowledge.
 ● Abilities:

This describes the physical, cognitive, or other abilities required to perform

the job, such as physical strength, manual dexterity, or critical thinking
skills.

● Personal characteristics:

This includes the personal qualities, values, and traits that are essential for
success in the job, such as work ethic, emotional intelligence, and cultural
fit.

A job specification is used to develop job postings, evaluate resumes, and

assess candidates during the hiring process. It helps ensure that the right
candidates with the necessary KSAOs are identified and hired for the job. A
well-developed job specification also helps managers set performance
expectations, identify training needs, and manage performance effectively.
Job Enlargement
and Job Enrichment
22 Jul 2024

Job enlargement means increasing the scope of a job through extending

the range of its job duties and responsibilities generally within the same
level and periphery. Job enlargement involves combining various activities
at the same level in the organization and adding them to the existing job. It
is also called the horizontal expansion of job activities. This contradicts the
principles of specialization and the division of labour whereby work is
divided into small units, each of which is performed repetitively by an
individual worker and the responsibilities are always clear. Some
motivational theories suggest that the boredom and alienation caused by
the division of labour can actually cause efficiency to fall. Thus, job
enlargement seeks to motivate workers through reversing the process of
specialisation. A typical approach might be to replace assembly lines with
modular work; instead of an employee repeating the same step on each
product, they perform several tasks on a single item. In order for
employees to be provided with Job Enlargement they will need to be
retrained in new fields to understand how each field works.

The objective of job enlargement is to motivate an employee by increasing

his efforts and exposure towards achieving the organizational objectives as
set for the job. By doing this, an employee can get a wider range of his or
her objectives without his or her job in a repetitious manner. Job
enlargement requires the management of the organization to provide their
support in providing appropriate training to the employees to make them
able to adapt to the enlarged job scope.

Some advantages of job enlargement are a variety of skills, improves

earning capacity, and wide range of activities.

Variety of skills – Job enlargement helps the organization to improve and

increase the skills of the employee due to organization as well as the
individual benefit.

Improves earning capacity – with all the new activities a person learns
from job enlargement, they are able to try to get a better salary when they
apply for a new job.

Wide range of activities – Employees are able to learn more activities

which can help a company save money by reducing the number of
employees they have.

JOB ENRICHMENT
Job Enrichment, a job design technique that varies the concept of job
enlargement. Job enrichment adds new sources of job satisfaction by
increasing the level of responsibility of the employee in organization.

While job enlargement is considered as horizontal restructuring method, job

enrichment is considered as vertical restructuring method of moral
excellence of giving the employee additional authority, autonomy, and
control over the way the job is accomplished. Also called job enhancement
or vertical job expansion.

is an attempt to motivate employees by giving them the opportunity to use

the range of their abilities. It is an idea that was developed by the American
psychologist Frederick Hertzberg in the 1950s. It can be contrasted to job
enlargement which simply increases the number of tasks without changing
the challenge. As such job enrichment has been described as ‘vertical
loading’ of a job, while job enlargement is ‘horizontal loading’. An enriched
job should ideally contain:

● A range of tasks and challenges of varying difficulties (Physical or

Mental)
● A complete unit of work – a meaningful task
● Feedback, encouragement and communication

Job enrichment is a type of job redesign intended to reverse the effects of

tasks that are repetitive requiring little autonomy. Some of these effects are
boredom, lack of flexibility, and employee dissatisfaction (Leach & Wall,
2004). The underlying principle is to expand the scope of the job with a
greater variety of tasks, vertical in nature, that require self-sufficiency.
Since the goal is to give the individual exposure to tasks normally reserved
for differently focused or higher positions, merely adding more of the same
responsibilities related to an employee’s current position is not considered
job enrichment.

Job enrichment has its roots in Frederick Herzberg’s two-factor theory,

according to which two separate dimensions contribute to an employee’s
behavior at work.

● The first dimension, known as hygiene factors, involves the

presence or absence of job dissatisfactory, such as wages, working
environment, rules and regulations, and supervisors. When these
 factors are poor, work is dissatisfying and employees are not
motivated. However, having positive hygiene factors does not cause
employees to be motivated; it simply keeps them from being
dissatisfied.
● The second dimension of Herzberg’s theory refers to motivators,
which are factors that satisfy higher-level needs such as recognition
for doing a good job, achievement, and the opportunity for growth
and responsibility. These motivators are what actually increase job
satisfaction and performance. Job enrichment becomes an important
strategy at this point because enriching employees’ jobs can help
meet some of their motivational needs. There are basically five areas
that are believed to affect an individual employee’s motivation and
job performance: skill variety, task identity, task significance,
autonomy, and feedback. Job enrichment seeks to find positive
ways to address each of these areas and therefore improve
employee motivation and personal satisfaction.

Skill variety involves the number of different types of skills that are used to
do a job. This area is important because using only one skill to do the same
task repeatedly can be quite boring, typically causing the employee’s
productivity to decrease after a period of time. However, using a variety of
skills in a job will tend to keep the employee more interested in the job and
more motivated.

One way businesses are focusing on this area is through job rotation, that
is, moving employees from job to job within the company, thereby allowing
employees a variety of tasks in their work and helping prevent boredom.
While this process can be costly to the company because employees must
be trained in several different areas, the cost tends to be balanced by the
increase in morale and productivity. Job rotation also gives each employee
the opportunity to see how the different jobs of a company fit together and
gives the company more flexibility in covering tasks when workers are
absent. However, while job rotation is a good way to enrich employees’
jobs, it can also hinder performance: Having to know several different jobs
in order to rotate, can prevent employees from becoming proficient at any
of the jobs. Therefore, the advantages and disadvantages of job rotation as
an enrichment strategy have to be carefully weighed.
Task identity is a matter of realizing a visible outcome from performing a
task. Being able to see the end result of the work they do is an important
motivator for employees. One way to make task identity clearer is through
job enlargement, which means adding more tasks and responsibilities to an
existing job. For example, instead of building just one component part of a
humidifier, a team of employees builds the entire product from start to
finish. When using job enlargement as an enrichment strategy, it is
important that enlarging the job gives the employee more responsibility and
more variety, not just more work.

Task significance involves how important the task is to others in the

company, which is important in showing employees how the work they do
fits in with that done in the rest of the organization. If employees can see
how their work affects others, it will be a motivator to do the best job they
can.

Many companies take new employees on a tour of the company and

provide training sessions on how each part of the company works together
with the other parts. In order to accept and handle responsibility, it is
important that employees know how the various areas of the company work
together; without this knowledge, it is very difficult for them to handle
decision-making responsibilities. Putting employees from different areas of
the company into planning teams can also help them see the significance
of the tasks they perform.

Autonomy involves the degree of freedom, independence, and decision-

making ability the employee has in completing assigned tasks. Most people
like to be given responsibility; it demonstrates trust and helps motivate
employees to live up to that trust. Responsibility can also help speed up
work processes by enabling the employee to make decisions without
having to wait for management approval. Autonomy is a very important part
of job enrichment because it gives the employee power and a feeling of
importance.

A type of job enrichment that restructures work to best match the employee
to the job is job redesign. Job redesign can focus on combining existing
jobs, forming work groups, and/or allowing closer contact between
employees and individual suppliers or customers. The idea behind job
redesign is to match employees with a job they like and are best qualified
to perform. Self-managed teams are a type of job design whereby
employees are grouped into teams and given certain guidelines to follow as
well as goals to accomplish—and then left alone to accomplish those goals.
Self-managed teams demonstrate the company’s faith in the employees
and give employees a feeling of power and pride in the work they
accomplish.

Feedback describes how much and what type of information about job
performance is received by the employee. It is one of the most important
areas for motivation. Without feedback, employees have no way of knowing
whether they are doing things correctly or incorrectly. Positive feedback
helps to motivate employees by recognizing the efforts they have put into
their work. While monetary rewards for doing a good job can be a strong
incentive, sometimes saying “you did a really good job on that project” can
mean just as much. Corrective feedback is also important because it lets
employees know what areas need improvement.

Job Enrichment Options

The central focus of job enrichment is giving people more control over their
work (lack of control is a key cause of stress, and therefore of
unhappiness.) Where possible, allow them to take on tasks that are
typically done by supervisors. This means that they have more influence
over planning, executing, and evaluating the jobs they do.

In enriched jobs, people complete activities with increased freedom,

independence, and responsibility. They also receive plenty of feedback, so
that they can assess and correct their own performance.

Here are some strategies you can use to enrich jobs in your workplace:

● Rotate Jobs – Give people the opportunity to use a variety of skills,

and perform different kinds of work. The most common way to do this
is through job rotation. Move your workers through a variety of jobs
that allow them to see different parts of the organization, learn
different skills and acquire different experiences. This can be very
motivating, especially for people in jobs that are very repetitive or that
focus on only one or two skills.
● Combine Tasks – Combine work activities to provide a more
challenging and complex work assignment. This can significantly
increase “task identity” because people see a job through from start
 to finish. This allows workers to use a wide variety of skills, which can
make the work seem more meaningful and important. For example,
you can convert an assembly line process, in which each person
does one task, into a process in which one person assembles a
whole unit. You can apply this model wherever you have people or
groups that typically perform only one part of an overall process.
Consider expanding their roles to give them responsibility for the
entire process, or for a bigger part of that process.
● Identify Project–Focused Work Units – Break your typical functional
lines and form project-focused units. For example, rather than having
all of your marketing people in one department, with supervisors
directing who works on which project, you could split the department
into specialized project units – specific storyboard creators,
copywriters, and designers could all work together for one client or
one campaign. Allowing employees to build client relationships is an
excellent way to increase autonomy, task identity, and feedback.
● Create Autonomous Work Teams – This is job enrichment at the
group level. Set a goal for a team, and make team members free to
determine work assignments, schedules, rest breaks, evaluation
parameters, and the like. You may even give them influence over
choosing their own team members. With this method, you’ll
significantly cut back on supervisory positions, and people will gain
leadership and management skills.
● Implement Participative Management – Allow team members to
participate in decision making and get involved in strategic planning.
This is an excellent way to communicate to members of your team
that their input is important. It can work in any organization – from a
very small company, with an owner/boss who’s used to dictating
everything, to a large company with a huge hierarchy. When people
realize that what they say is valued and makes a difference, they’ll
likely be motivated.
● Redistribute Power and Authority – Redistribute control and grant
more authority to workers for making job-related decisions. As
supervisors delegate more authority and responsibility, team
members’ autonomy, accountability, and task identity will increase.
● Increase Employee-Directed Feedback – Make sure that people
know how well, or poorly, they’re performing their jobs. The more
control you can give them for evaluating and monitoring their own
performance, the more enriched their jobs will be. Rather than have
 your quality control department go around and point out mistakes,
consider giving each team responsibility for their own quality control.
Workers will receive immediate feedback, and they’ll learn to solve
problems, take initiative, and make decisions.

Implementing a Job Enrichment Program

● Step One – Find out where people are dissatisfied with their current
work assignments. There’s little point to enriching jobs and changing
the work environment if you’re enriching the wrong jobs and making
the wrong changes. Like any motivation initiative, determine what
your people want before you begin.
● Surveys are a good means of doing this. Don’t make the mistake of
presuming that you know what people want: Go to the source – and
use that information to build your enrichment options.
● Step Two – Consider which job enrichment options you can provide.
You don’t need to drastically redesign your entire work process. The
way that you design the enriched jobs must strike a balance between
operational need and job satisfaction. If significant changes are
needed, consider establishing a “job enrichment task force” –
perhaps use a cross-section of employees, and give them
responsibility for deciding which enrichment options make the most
sense.
● Step Three – Design and communicate your program. If you’re
making significant changes, let people know what you’re doing and
why. Work with your managers to create an enriching work
environment that includes lots of employee participation and
recognition. Remember to monitor your efforts, and regularly
evaluate the effectiveness of what you’re providing.

Advantages of job enrichment

1. Interesting and challenging job: –When a certain amount of power

is given to employees it makes the job more challenging for them, we
can say that job enrichment is a method of employee empowerment.
2. Improves decision making :-Through job enrichment we can
improve the decision making ability of the employee by asking him to
decide
 3. vation speaks of these higher order needs e.g. Ego and esteemed
needs, self-actualization etc. These needs can be achieved through
job enrichment.
4. Reduces work load of superiors:-Job enrichment reduces the work
load of senior staff. When decisions are taken by juniors the seniors
work load is reduced.

Disadvantages of job enrichment

1. Job enrichment is based on the assumptions that workers have

complete knowledge to take decisions and they have the right
attitude. In reality this might not be the case due to which there can
be problems in working.
2. Job enrichment has negative implications ie. Along with usual work
decision making work is also given to the employees and not many
may be comfortable with this.
3. Superiors may feel that power is being taken away from them and
given to the junior’s. This might lead to ego problems.

Recruitment,
Sources, Process,
Challenges
7 Jun 2024

Recruitment is the process of attracting, identifying, and hiring qualified

candidates to fill vacant positions within an organization. It involves various
activities, such as developing job descriptions, advertising job openings,
screening resumes, conducting interviews, and making job offers.
Recruitment aims to ensure that the organization has the right talent in the
right roles to achieve its strategic objectives. Effective recruitment
strategies involve targeting diverse talent pools, utilizing multiple
recruitment channels, and employing selection methods that assess
candidates’ skills, qualifications, and cultural fit. By recruiting talented
individuals who align with the organization’s values and goals, companies
can enhance productivity, innovation, and competitiveness while fostering a
positive workplace culture conducive to employee engagement and
retention.

Sources of Recruitment:

1. Internal Recruitment:

This involves filling job vacancies from within the organization’s existing
workforce. Internal recruitment methods include promotions, transfers,
employee referrals, and internal job postings. Internal recruitment can
boost employee morale, promote career development, and capitalize on
existing knowledge and skills within the organization.

2. External Recruitment:

External recruitment methods target candidates outside the organization.

● Job Advertisements:
Posting job openings on company websites, job boards, newspapers,
professional journals, social media platforms, and other relevant channels.

● Recruitment Agencies:

Engaging third-party recruitment agencies or headhunters to identify and

screen candidates for specific roles.

● Campus Recruitment:

Visiting educational institutions to recruit recent graduates or interns for

entry-level positions.

● Job Fairs and Events:

Participating in career fairs, industry events, and networking sessions to

attract potential candidates.

3. Online Recruitment:

Leveraging digital platforms and technologies to reach a broader audience

of job seekers. Online recruitment methods include:

● Company Websites:

Posting job openings on the organization’s official website and allowing

candidates to apply directly online.

● Job Boards:

Utilizing online job portals and platforms such as LinkedIn, Indeed,

Glassdoor, and Monster to advertise job vacancies and attract applicants.

● Social Media:

Using social networking sites like LinkedIn, Facebook, Twitter, and

Instagram to promote job openings, engage with candidates, and build
employer brand visibility.

4. Professional Associations and Networks:

Engaging with industry-specific professional associations, forums, and
networking groups to connect with qualified candidates within a particular
field or industry.

5. Employee Referrals:

Encouraging existing employees to refer qualified candidates for job

openings within the organization. Employee referral programs can be
effective in reaching passive candidates and enhancing employee
engagement and retention.

6. Direct Applications:

Accepting applications from candidates who proactively reach out to the

organization expressing interest in employment opportunities, either
through email, postal mail, or in-person inquiries.

7. Internship Programs:

Offering internships or co-op programs to students or recent graduates to

provide hands-on experience and identify potential future hires.

8. Headhunting/Executive Search:

Engaging specialized recruitment firms or executive search agencies to

identify and recruit senior-level executives or candidates with specialized
skills and experience.

Process of Recruitment:

1. Identifying Hiring Needs:

The recruitment process begins with identifying the organization’s staffing

needs. This involves assessing current workforce capabilities, forecasting
future demand, and determining the number and types of positions to be
filled.

2. Job Analysis and Description:

Once hiring needs are identified, HR or hiring managers conduct a job

analysis to define the roles’ responsibilities, required skills, qualifications,
and experience. This information is used to create comprehensive job
descriptions and specifications that will guide the recruitment process.

3. Recruitment Planning:

Recruitment planning involves developing a strategic approach to attract

qualified candidates. This may include determining recruitment methods,
setting a budget, establishing timelines, and allocating resources for the
recruitment process.

4. Candidate Sourcing:

Candidate sourcing involves identifying potential candidates through

various channels.

● Internal Recruitment:

Considering existing employees for promotion or transfer.

● External Recruitment:

Advertising job openings through job boards, company websites, social

media, recruitment agencies, campus recruitment, and networking.

5. Resume Screening:

HR or hiring managers review incoming resumes and applications to

identify candidates who meet the job requirements. Resumes are screened
based on factors such as relevant experience, skills, education, and
qualifications.

6. Candidate Evaluation:

Qualified candidates are further evaluated through interviews,

assessments, and other selection methods. This may involve:

● Phone or Video Interviews:

Conducting initial screenings to assess candidates’ communication skills,

experience, and fit for the role.

● In-Person Interviews:
Meeting with candidates to delve deeper into their qualifications, assess
cultural fit, and evaluate their suitability for the position.

7. Background Checks and References:

After interviews, selected candidates undergo background checks,

including employment verification, criminal record checks, and reference
checks. This helps confirm candidates’ qualifications and assess their
suitability for employment.

8. Job Offer:

Once a suitable candidate is identified and background checks are cleared,

HR extends a job offer. The offer typically includes details such as job title,
compensation, benefits, start date, and any other relevant terms and
conditions of employment.

9. Onboarding:

After the candidate accepts the job offer, the onboarding process begins.
This involves integrating the new employee into the organization, providing
necessary training and orientation, completing paperwork, and introducing
them to their role, team, and organizational culture.

10. Evaluation and Feedback:

Throughout the recruitment process, HR evaluates the effectiveness of

recruitment strategies and gathers feedback from hiring managers and
candidates. This information is used to improve recruitment processes,
address any issues, and ensure a positive experience for all stakeholders.

Challenges of Recruitment:

● Talent Shortages:

Finding qualified candidates with the right skills, experience, and

qualifications can be challenging, especially in industries facing talent
shortages or for specialized roles.

● Competition:
Organizations often compete with other employers for top talent,
particularly in high-demand fields or geographic areas with limited
candidate pools.

● Time Constraints:

Recruitment processes can be time-consuming, involving tasks such as job

postings, resume screening, interviews, and background checks. Time
constraints can delay hiring decisions and leave positions vacant for
extended periods.

● Costs:

Recruiting can be costly, with expenses associated with job

advertisements, recruitment agencies, background checks, and
onboarding. High turnover rates can further increase recruitment costs due
to frequent hiring and training expenses.

● Candidate Experience:

Providing a positive candidate experience is essential for attracting and

retaining talent. Challenges such as poor communication, lengthy
application processes, and unprofessional interactions can deter
candidates from pursuing opportunities with the organization.

● Diversity and Inclusion:

Promoting diversity and inclusion in recruitment processes can be

challenging, as unconscious biases may influence decision-making.
Ensuring equitable access to opportunities and mitigating biases requires
proactive efforts and inclusive recruitment practices.

● Technology and Automation:

While technology can streamline recruitment processes, it also presents

challenges such as managing applicant tracking systems, leveraging
artificial intelligence for resume screening, and ensuring data privacy and
security compliance.

● Remote Work and Virtual Recruitment:

The shift to remote work has transformed recruitment practices, requiring
organizations to adapt to virtual hiring processes. Challenges include
assessing candidates’ remote work capabilities, conducting virtual
interviews, and onboarding new hires remotely while maintaining
engagement and connection.

Methods and
Techniques of E-
recruitment
7 Jun 2024

The E-Recruitment, also called as Online Recruitment, is the process of

hiring the potential candidates for the vacant job positions, using the
electronic resources, particularly the internet.

Nowadays, companies make use of the internet to reach a large number of

job seekers and hire the best talent for the company at a less cost, as
compared to the physical recruitment process.

E-Recruitment

E-Recruitment includes the entire process of finding the prospective

candidates, assessing, interviewing and hiring them, as per the job
requirement. Through this, the recruitment is done more effectively and
efficiently.

Generally, the job vacancies are advertised on the world wide web (www),
where the applicants attach their CV or resume, to get recognized by the
potential recruiters or the employers.
The companies undertake their online promotional activities via their official
websites, wherein the complete information about the corporation is
enclosed. Through this information, the prospective candidate could decide
whether to be a part of a firm or not. Thus, the firm’s official website is
considered to be an essential element of E-Recruitment.

Advantages of E-Recruitment

● Low cost per candidate, as compared to the physical recruitment

process.
● Wide geographical coverage, i.e. the candidates can be hired from
any part of the world.
● Beneficial for both the employer and the job seeker, the corporations
can find the prospective candidates through their CVs attached to
world wide web, and similarly, the candidates can search the
employer through their job vacancy advertisement posted on the
internet.
● Less time required in hiring the potential candidate for the firm.
● Right people for the right job can be easily found through E-
Recruitment, by matching the candidate’s CVs with the job profile.
● The recruitment process becomes more efficient and easy to record
details of the applicant.

Disadvantages of E-Recruitment

● There is low and no access and lack of awareness of internet in

many locations across India.
● Screening and expertise mapping and validness of million of resumes
is an issue and tedious exercise for associations.
● Organizations cannot be dependant solely and totally on the online
recruitment methods.

The E-Recruitment software and systems are available, through which the
entire recruitment process becomes automated. One of the systems is the
Recruitment Management System, which is a portal that involves hiring the
candidates online and each step involved in the recruitment process is
automatized.

TECHNIQUES OF E–RECRUITMENT
E-recruitment ought to be consolidated into the general recruitment
procedure of the organization.

A well defined and organized candidate tracking system ought to be

incorporated and the framework ought to have a back-end support.

With back-office bolster a thorough site to get and process work

applications (through immediate or web based publicizing) should be
developed.

Outsourcing

In India, the HR processes are being outsourced from more than a decade
now. A company may draw required personnel from outsourcing firms. The
outsourcing firms help the organization by the initial screening of the
candidates according to the needs of the organization and creating a
suitable pool of talent for the final selection by the organization.

Outsourcing firms develop their human resource pool by employing people

for them and make available personnel to various companies as per their
needs. In turn, the outsourcing firms or the intermediaries charge the
organisations for their services.

Advantages of outsourcing are

1. Company need not plan for human resources much in advance.

2. Value creation, operational flexibility and competitive advantage
3. Turning the management’s focus to strategic level processes of HRM
4. Company is free from salary negotiations, weeding the unsuitable
resumes/candidates.
5. Company can save a lot of its resources and time.

Poaching/Raiding

“Buying talent” (rather than developing it) is the latest mantra being
followed by the organizations today. Poaching means employing a
competent and experienced person already working with another reputed
company in the same or different industry; the organization might be a
competitor in the industry.
A company can attract talent from another firm by offering attractive pay
packages and other terms and conditions, better than the current employer
of the candidate. But it is seen as an unethical practice and not openly
talked about.

Indian software and the retail sector are the sectors facing the most severe
brunt of poaching today. It has become a challenge for human resource
managers to face and tackle poaching, as it weakens the competitive
strength of the firm.

Selection,
Functions, Scope,
Process, Methods,
Challenges
7 Jun 2024

Selection is the process of choosing the most suitable candidates from a

pool of applicants to fill specific job vacancies within an organization. It
involves assessing candidates’ qualifications, skills, experiences, and
personal attributes to determine their fit for the job and organizational
culture. Selection methods may include resume screening, interviews,
assessments, reference checks, and background checks. The goal of
selection is to identify candidates who possess the necessary
competencies and characteristics to perform the job effectively and
contribute to the organization’s success. A well-designed selection process
helps ensure that hiring decisions are fair, objective, and aligned with the
organization’s strategic objectives, ultimately leading to the recruitment of
high-performing employees.
Functions of Selection:

● Identifying Qualified Candidates:

The primary function of selection is to identify candidates who possess the

qualifications, skills, experiences, and competencies required to perform
the job effectively. This involves evaluating candidates’ resumes,
application materials, and responses to screening questions to determine
their suitability for the position.

● Predicting Job Performance:

Selection aims to predict candidates’ potential job performance by

assessing their past experiences, accomplishments, and abilities relevant
to the job role. Through interviews, assessments, and reference checks,
organizations seek indicators of candidates’ capabilities to succeed in the
position.

● Minimizing Turnover:

Effective selection helps minimize employee turnover by selecting

candidates who are a good fit for the job and the organization. By
thoroughly evaluating candidates’ skills, qualifications, and cultural fit
during the selection process, organizations can reduce the likelihood of
early turnover and the costs associated with replacing employees.

● Promoting Diversity and Inclusion:

The selection process plays a crucial role in promoting diversity and

inclusion within organizations by ensuring equal opportunities for all
candidates regardless of their background, race, gender, ethnicity, or other
characteristics. By implementing fair and unbiased selection practices,
organizations can attract a diverse pool of candidates and foster an
inclusive work environment.

● Enhancing Organizational Performance:

Selecting the right candidates who possess the necessary skills and
attributes contributes to enhancing organizational performance. By hiring
employees who are well-suited to their roles, organizations can improve
productivity, efficiency, innovation, and overall business outcomes.
 ● Protecting Legal Compliance:

Selection processes must comply with various legal requirements and

regulations governing employment practices, such as equal employment
opportunity (EEO) laws, anti-discrimination legislation, and privacy laws.
Ensuring that selection practices are fair, transparent, and non-
discriminatory helps protect organizations from legal risks and liabilities
associated with hiring decisions.

Scope of Selection:

● Candidate Evaluation:

The selection process involves evaluating candidates’ qualifications, skills,

experiences, and competencies to assess their suitability for the job role.
This includes reviewing resumes, conducting interviews, administering
assessments, and checking references to determine candidates’ fit for the
position.

● Assessment Methods:

Selection encompasses the use of various assessment methods to

evaluate candidates’ capabilities and potential job performance. This may
include interviews, behavioral assessments, cognitive tests, skills
assessments, situational judgment tests, and personality assessments,
among others.

● Decision-Making Criteria:

The scope of selection includes defining decision-making criteria based on

the job requirements, organizational needs, and desired competencies.
These criteria guide selection decisions and help identify the most qualified
candidates for the position.

● Legal and Ethical Considerations:

Selection processes must adhere to legal and ethical guidelines governing

employment practices, such as equal employment opportunity (EEO) laws,
anti-discrimination legislation, and privacy regulations. Ensuring fairness,
transparency, and non-discrimination in selection practices is essential to
protect the rights of candidates and avoid legal risks.
 ● Candidate Experience:

The scope of selection extends to providing a positive candidate

experience throughout the selection process. This includes clear
communication, timely feedback, respectful treatment, and a seamless and
professional candidate journey from application to onboarding.

● Organizational Objectives:

Selection aligns with organizational objectives and strategic goals by

selecting candidates who not only meet the job requirements but also
contribute to the organization’s success. This involves considering factors
such as cultural fit, potential for growth, and alignment with the
organization’s values and mission.

Process of Selection:

1. Initial Screening:

The selection process begins with an initial screening of applications and

resumes received in response to job postings. HR or hiring managers
review candidate qualifications, skills, experiences, and other relevant
criteria to determine whether they meet the minimum requirements for the
job.

2. Shortlisting Candidates:

Based on the initial screening, a shortlist of qualified candidates is created

for further evaluation. Shortlisting criteria may include relevant experience,
education, skills, certifications, and alignment with job requirements and
organizational culture.

3. Interviews:

Shortlisted candidates are invited to participate in interviews to assess their

suitability for the job. Interviews may include various formats such as:

● Phone or Video Interviews: Initial screenings to assess candidates’

communication skills, fit for the role, and availability.
 ● In-Person Interviews: Face-to-face meetings with hiring managers
or interview panels to delve deeper into candidates’ qualifications,
experiences, and behavioral competencies.
4. Assessment Tests:

Candidates may be required to complete assessment tests or exercises to

evaluate their cognitive abilities, technical skills, personality traits, or job-
related competencies. Assessment tests may include aptitude tests, skills
assessments, personality assessments, or situational judgment tests.

5. Reference Checks:

After interviews and assessments, references provided by candidates, such

as former employers, supervisors, or colleagues, are contacted to verify
information, gather feedback on candidates’ performance, and assess their
suitability for the job.

6. Background Checks:

Background checks are conducted to verify candidates’ employment

history, education credentials, professional licenses, and criminal records.
Background checks help ensure candidates’ honesty, integrity, and
suitability for employment.

7. Final Selection and Job Offer:

Based on the results of interviews, assessments, reference checks, and

background checks, the final selection of candidates is made. HR or hiring
managers extend job offers to selected candidates, specifying details such
as job title, compensation, benefits, start date, and any other relevant terms
and conditions of employment.

8. Onboarding:

Once candidates accept job offers, the onboarding process begins. This
involves integrating new employees into the organization, providing
necessary training and orientation, completing paperwork, and introducing
them to their role, team, and organizational culture.

Methods of Selection:
 1. Resume Screening:

Reviewing resumes and job applications to assess candidates’ educational

background, work experience, skills, and relevant qualifications. This initial
screening helps identify candidates who meet the minimum requirements
for the job.

2. Interviews:

Conducting structured interviews to assess candidates’ fit for the job and
organizational culture. Interviews may include various formats such as:

● Behavioral Interviews: Asking candidates to provide specific

examples of past behaviors and experiences relevant to the job.
● Technical Interviews: Assessing candidates’ technical skills and
competencies through practical exercises or case studies.
● Panel Interviews: Involving multiple interviewers to evaluate
candidates from different perspectives.
● Virtual Interviews: Conducting interviews remotely via video
conferencing tools.
3. Assessment Tests:

Administering assessment tests to evaluate candidates’ cognitive abilities,

personality traits, aptitude, and job-related skills. Common types of
assessment tests:

● Cognitive Ability Tests: Assessing candidates’ problem-solving,

analytical, and reasoning skills.
● Personality Assessments: Identifying candidates’ personality traits,
work styles, and behavioral tendencies.
● Skills Assessments: Testing candidates’ proficiency in specific job-
related skills, such as coding, language proficiency, or technical
knowledge.
4. Reference Checks:

Contacting references provided by candidates, such as former employers,

supervisors, or colleagues, to verify information, gather feedback on
candidates’ performance, and assess their suitability for the job.

5. Background Checks:
Conducting background checks to verify candidates’ employment history,
education credentials, professional licenses, and criminal records.
Background checks help ensure candidates’ honesty, integrity, and
suitability for employment.

6. Work Samples or Portfolios:

Requesting candidates to submit work samples, portfolios, or projects

relevant to the job role to assess their skills, creativity, and quality of work.

7. Group Exercises or Assessment Centers:

Organizing group exercises, case studies, or simulation exercises to

assess candidates’ teamwork, problem-solving abilities, communication
skills, and leadership potential. Assessment centers provide a holistic view
of candidates’ capabilities and behaviors in various scenarios.

8. Job Auditions or Trial Periods:

Allowing candidates to perform actual job tasks or projects on a trial basis

to assess their job-related skills, performance, and fit for the role before
making a final hiring decision.

Challenges of Selection:

● Candidate Assessment:

Evaluating candidates’ qualifications, skills, and experiences accurately can

be challenging, especially when relying on limited information from
resumes, interviews, and assessments.

● Biases and Discrimination:

Unconscious biases, such as affinity bias or stereotyping, can influence

selection decisions, leading to unfair treatment or discrimination against
certain candidates based on factors like age, gender, race, or ethnicity.

● Candidate Experience:

Providing a positive candidate experience throughout the selection process

is crucial for attracting and retaining top talent. Challenges such as lengthy
application processes, poor communication, or lack of feedback can deter
qualified candidates from pursuing opportunities with the organization.

● Legal Compliance:

Ensuring compliance with employment laws and regulations, such as equal

employment opportunity (EEO) laws and anti-discrimination legislation,
presents challenges for organizations, particularly when conducting
background checks, reference checks, or assessments.

● Assessment Tools and Methods:

Selecting appropriate assessment tools and methods to evaluate

candidates’ competencies, skills, and fit for the job can be challenging.
Designing valid and reliable selection processes that predict job
performance while minimizing biases is crucial for effective candidate
evaluation.

● Time Constraints:

The selection process can be time-consuming, especially when handling a

large volume of applications or conducting multiple rounds of interviews
and assessments. Time constraints may delay hiring decisions and prolong
the time-to-fill vacancies, impacting organizational productivity.

● Internal Dynamics:

Internal factors such as conflicting priorities among stakeholders, lack of

consensus on selection criteria, or biases among decision-makers can
create challenges in the selection process, leading to delays or
inefficiencies in candidate evaluation and decision-making.

Placement Induction
10 Sep 2024

Placement is the actual posting of an employee to a specific job. It involves

assigning a specific rank and responsibility to an employee. Placement is
an important human resource activity. If neglected, it may create employee
adjustment problems leading to absenteeism, turnover, accidents, poor
performance, etc. The employee will also suffer seriously. He may quit the
organization in frustration, complaining bitterly about everything. Proper
placement is, therefore, important to both the employee and the
organization.

Placement, it should the remembered, should be made with as little

disruption to the employee and organization as possible. To this end, new
recruits must be oriented properly so that they become productive
contributors. There should be a conscious and determined effort to adapt
the new recruit to the organization’s culture (the rules, jargon, customs and
other traditions that clarify acceptable and unacceptable behaviour in an
organization) by conveying to the employee how things are done and what
matters. When new employees know what is expected of them, they have
better organisational performance and less frustration and uncertainty.

The HR department may initiate the following steps while organizing the
induction programme:

1. Welcome to the organization.

2. Explain about the company.
3. Show the location/department where the new recruit will work.
4. Give the company’s manual to the new recruit.
5. Provide details about various work groups and the extent of unionism
within the company.
6. Give details about pay, benefits, holidays, leave, etc. Emphasize the
importance of attendance or punctuality.
7. Explain about future training opportunities and career prospects.
8. Clarify doubts, by encouraging the employee to come out with
questions.
9. Take the employee on a guided tour of buildings, facilities, etc. Hand
him over to his supervisor.

Socialization
Socialization is a process through which a new recruit begins to understand
and accept the values, norms and beliefs held by others in the
organization. HR department representatives help new recruits to
“internalize the way things are done in the organization”. Orientation helps
the newcomers to interact freely with employees working at various levels
and learn behaviours that are acceptable. Through such formal and
informal interaction and discussion, newcomers begin to understand how
the department/company is run, who holds power and who does not, who is
politically active within the department, how to behave in the company,
what is expected of them, etc. In short, if the new recruits wish to survive
and prosper in their new work home, they must soon come to ‘know the
ropes’. Orientation programmes are effective socialisation tools because
they help the employees to learn about the job and perform things in the
desired way.

Follow up

Despite the best efforts of supervisors, certain dark areas may still remain
in the orientation programme. New hires may not have understood certain
things. The supervisors, while covering a large ground, may have ignored
certain important matters. To overcome the resultant communication gaps,
it is better to use a supervisory checklist as shown in Box 11.1 and find out
whether all aspects have been covered or not. Follow up meetings could be
held at fixed intervals, say after every three or six months on a face-to-face
basis. The basic purpose of such follow-up orientation is to offer guidance
to employees on various general as well as job-related matters – without
leaving anything to chance. To improve orientation, the company should
make a conscious effort to obtain feedback from everyone involved in the
programme. There are several ways to get this kind of feedback: through
roundtable discussions with new hires after their first year on the job,
through in-depth interviews with randomly selected employees and
superiors and through questionnaires for mass coverage of all recent
recruits.

Importance

Proper placement and Induction is very important as they serve the

following purposes:

1. Removes fear: A newcomer steps into an organization as a

stranger. He is new to the people, workplace and works environment.
He is not very sure about what he is supposed to do. Induction helps
 a new employee overcome such fears and perform better on the job.
It assists him in knowing more about:

(a) The job, its content, policies, rules and regulations.

(b) The people with whom he is supposed to interact.

(c) The terms and conditions of employment.

2. Creates a good impression: Another purpose of induction is to

make the newcomer feel at home and develop a sense of pride in the
organization. Induction helps him to:

(a) Adjust and adapt to new demands of the job.

(b) Get along with people.

(c) Get off to a good start.

Through induction, a new recruit is able to see more clearly as to what he is

supposed to do, how good the colleagues are, how important is the job,
etc. He can pose questions and seek clarifications on issues relating to his
job. Induction is a positive step, in the sense, it leaves a good impression
on the company and the people working there in the minds of new recruits.
They begin to take pride in their work and are more committed to their jobs.

Challenges

The challenges for organizations in induction and placement with the

diversified workforce come in a form of language, culture and different
working method. The changing business scenario and workforce trends
have made employee retention a crucial problem that needs to be offset.
An effective employee induction program is one such tool that is used for a
successful employee on boarding and employee retention. The Employee
Induction Program should be designed in such a way that it provides
relevant information to the employees. Provision of reality checks through
surveys, feedbacks, and appraisals help the employer ensure the
effectiveness of the induction program. The companies that invest more
time and resources in induction enjoy the highest degree of employee
engagement, which has a significant impact on the company’s bottom line.
[Employee Induction ]
Socialization of Employee

The socialization of a new employee is a critical part of the induction and

can reflect in the employee’s satisfaction in their new working environment.
Managers need to arrange a departmental meeting on the first day of the
new employee to formally introduce him to the team. Arrangements should
also be made for the new employee to visit other departments with which
he needs to work closely in the course of his duties.

Culture

Cultural fit is very important. Hence, briefing the new employee about the
management philosophy and the organisational culture is vital. New
employees also need to be coached on organisational sensitivity, grooming
and business etiquette. Besides responsibility orientation and support
goals, new members of the family need to learn how to be an effective
brand ambassador of the organization.

Learning Challenges

Care should be taken that the new incumbent is not bombarded with details
or bulldozed with an overdose of talks and power point slides. A good
corporate induction should incorporate case studies, role plays, video films
and simulated exercises that are fun and yet serve the purpose. [
Employee Induction .

Selection,
Functions, Scope,
Process, Methods,
Challenges
7 Jun 2024

Selection is the process of choosing the most suitable candidates from a

pool of applicants to fill specific job vacancies within an organization. It
involves assessing candidates’ qualifications, skills, experiences, and
personal attributes to determine their fit for the job and organizational
culture. Selection methods may include resume screening, interviews,
assessments, reference checks, and background checks. The goal of
selection is to identify candidates who possess the necessary
competencies and characteristics to perform the job effectively and
contribute to the organization’s success. A well-designed selection process
helps ensure that hiring decisions are fair, objective, and aligned with the
organization’s strategic objectives, ultimately leading to the recruitment of
high-performing employees.

Functions of Selection:

● Identifying Qualified Candidates:

The primary function of selection is to identify candidates who possess the

qualifications, skills, experiences, and competencies required to perform
the job effectively. This involves evaluating candidates’ resumes,
application materials, and responses to screening questions to determine
their suitability for the position.

● Predicting Job Performance:

Selection aims to predict candidates’ potential job performance by

assessing their past experiences, accomplishments, and abilities relevant
to the job role. Through interviews, assessments, and reference checks,
organizations seek indicators of candidates’ capabilities to succeed in the
position.

● Minimizing Turnover:

Effective selection helps minimize employee turnover by selecting

candidates who are a good fit for the job and the organization. By
thoroughly evaluating candidates’ skills, qualifications, and cultural fit
during the selection process, organizations can reduce the likelihood of
early turnover and the costs associated with replacing employees.
 ● Promoting Diversity and Inclusion:

The selection process plays a crucial role in promoting diversity and

inclusion within organizations by ensuring equal opportunities for all
candidates regardless of their background, race, gender, ethnicity, or other
characteristics. By implementing fair and unbiased selection practices,
organizations can attract a diverse pool of candidates and foster an
inclusive work environment.

● Enhancing Organizational Performance:

Selecting the right candidates who possess the necessary skills and
attributes contributes to enhancing organizational performance. By hiring
employees who are well-suited to their roles, organizations can improve
productivity, efficiency, innovation, and overall business outcomes.

● Protecting Legal Compliance:

Selection processes must comply with various legal requirements and

regulations governing employment practices, such as equal employment
opportunity (EEO) laws, anti-discrimination legislation, and privacy laws.
Ensuring that selection practices are fair, transparent, and non-
discriminatory helps protect organizations from legal risks and liabilities
associated with hiring decisions.

Scope of Selection:

● Candidate Evaluation:

The selection process involves evaluating candidates’ qualifications, skills,

experiences, and competencies to assess their suitability for the job role.
This includes reviewing resumes, conducting interviews, administering
assessments, and checking references to determine candidates’ fit for the
position.

● Assessment Methods:

Selection encompasses the use of various assessment methods to

evaluate candidates’ capabilities and potential job performance. This may
include interviews, behavioral assessments, cognitive tests, skills
assessments, situational judgment tests, and personality assessments,
among others.

● Decision-Making Criteria:

The scope of selection includes defining decision-making criteria based on

the job requirements, organizational needs, and desired competencies.
These criteria guide selection decisions and help identify the most qualified
candidates for the position.

● Legal and Ethical Considerations:

Selection processes must adhere to legal and ethical guidelines governing

employment practices, such as equal employment opportunity (EEO) laws,
anti-discrimination legislation, and privacy regulations. Ensuring fairness,
transparency, and non-discrimination in selection practices is essential to
protect the rights of candidates and avoid legal risks.

● Candidate Experience:

The scope of selection extends to providing a positive candidate

experience throughout the selection process. This includes clear
communication, timely feedback, respectful treatment, and a seamless and
professional candidate journey from application to onboarding.

● Organizational Objectives:

Selection aligns with organizational objectives and strategic goals by

selecting candidates who not only meet the job requirements but also
contribute to the organization’s success. This involves considering factors
such as cultural fit, potential for growth, and alignment with the
organization’s values and mission.

Process of Selection:

1. Initial Screening:

The selection process begins with an initial screening of applications and

resumes received in response to job postings. HR or hiring managers
review candidate qualifications, skills, experiences, and other relevant
criteria to determine whether they meet the minimum requirements for the
job.

2. Shortlisting Candidates:

Based on the initial screening, a shortlist of qualified candidates is created

for further evaluation. Shortlisting criteria may include relevant experience,
education, skills, certifications, and alignment with job requirements and
organizational culture.

3. Interviews:

Shortlisted candidates are invited to participate in interviews to assess their

suitability for the job. Interviews may include various formats such as:

● Phone or Video Interviews: Initial screenings to assess candidates’

communication skills, fit for the role, and availability.
● In-Person Interviews: Face-to-face meetings with hiring managers
or interview panels to delve deeper into candidates’ qualifications,
experiences, and behavioral competencies.
4. Assessment Tests:

Candidates may be required to complete assessment tests or exercises to

evaluate their cognitive abilities, technical skills, personality traits, or job-
related competencies. Assessment tests may include aptitude tests, skills
assessments, personality assessments, or situational judgment tests.

5. Reference Checks:

After interviews and assessments, references provided by candidates, such

as former employers, supervisors, or colleagues, are contacted to verify
information, gather feedback on candidates’ performance, and assess their
suitability for the job.

6. Background Checks:

Background checks are conducted to verify candidates’ employment

history, education credentials, professional licenses, and criminal records.
Background checks help ensure candidates’ honesty, integrity, and
suitability for employment.
 7. Final Selection and Job Offer:

Based on the results of interviews, assessments, reference checks, and

background checks, the final selection of candidates is made. HR or hiring
managers extend job offers to selected candidates, specifying details such
as job title, compensation, benefits, start date, and any other relevant terms
and conditions of employment.

8. Onboarding:

Once candidates accept job offers, the onboarding process begins. This
involves integrating new employees into the organization, providing
necessary training and orientation, completing paperwork, and introducing
them to their role, team, and organizational culture.

Methods of Selection:

1. Resume Screening:

Reviewing resumes and job applications to assess candidates’ educational

background, work experience, skills, and relevant qualifications. This initial
screening helps identify candidates who meet the minimum requirements
for the job.

2. Interviews:

Conducting structured interviews to assess candidates’ fit for the job and
organizational culture. Interviews may include various formats such as:

● Behavioral Interviews: Asking candidates to provide specific

examples of past behaviors and experiences relevant to the job.
● Technical Interviews: Assessing candidates’ technical skills and
competencies through practical exercises or case studies.
● Panel Interviews: Involving multiple interviewers to evaluate
candidates from different perspectives.
● Virtual Interviews: Conducting interviews remotely via video
conferencing tools.
3. Assessment Tests:
Administering assessment tests to evaluate candidates’ cognitive abilities,
personality traits, aptitude, and job-related skills. Common types of
assessment tests:

● Cognitive Ability Tests: Assessing candidates’ problem-solving,

analytical, and reasoning skills.
● Personality Assessments: Identifying candidates’ personality traits,
work styles, and behavioral tendencies.
● Skills Assessments: Testing candidates’ proficiency in specific job-
related skills, such as coding, language proficiency, or technical
knowledge.
4. Reference Checks:

Contacting references provided by candidates, such as former employers,

supervisors, or colleagues, to verify information, gather feedback on
candidates’ performance, and assess their suitability for the job.

5. Background Checks:

Conducting background checks to verify candidates’ employment history,

education credentials, professional licenses, and criminal records.
Background checks help ensure candidates’ honesty, integrity, and
suitability for employment.

6. Work Samples or Portfolios:

Requesting candidates to submit work samples, portfolios, or projects

relevant to the job role to assess their skills, creativity, and quality of work.

7. Group Exercises or Assessment Centers:

Organizing group exercises, case studies, or simulation exercises to

assess candidates’ teamwork, problem-solving abilities, communication
skills, and leadership potential. Assessment centers provide a holistic view
of candidates’ capabilities and behaviors in various scenarios.

8. Job Auditions or Trial Periods:

Allowing candidates to perform actual job tasks or projects on a trial basis

to assess their job-related skills, performance, and fit for the role before
making a final hiring decision.
Challenges of Selection:

● Candidate Assessment:

Evaluating candidates’ qualifications, skills, and experiences accurately can

be challenging, especially when relying on limited information from
resumes, interviews, and assessments.

● Biases and Discrimination:

Unconscious biases, such as affinity bias or stereotyping, can influence

selection decisions, leading to unfair treatment or discrimination against
certain candidates based on factors like age, gender, race, or ethnicity.

● Candidate Experience:

Providing a positive candidate experience throughout the selection process

is crucial for attracting and retaining top talent. Challenges such as lengthy
application processes, poor communication, or lack of feedback can deter
qualified candidates from pursuing opportunities with the organization.

● Legal Compliance:

Ensuring compliance with employment laws and regulations, such as equal

employment opportunity (EEO) laws and anti-discrimination legislation,
presents challenges for organizations, particularly when conducting
background checks, reference checks, or assessments.

● Assessment Tools and Methods:

Selecting appropriate assessment tools and methods to evaluate

candidates’ competencies, skills, and fit for the job can be challenging.
Designing valid and reliable selection processes that predict job
performance while minimizing biases is crucial for effective candidate
evaluation.

● Time Constraints:

The selection process can be time-consuming, especially when handling a

large volume of applications or conducting multiple rounds of interviews
and assessments. Time constraints may delay hiring decisions and prolong
the time-to-fill vacancies, impacting organizational productivity.

● Internal Dynamics:

Internal factors such as conflicting priorities among stakeholders, lack of

consensus on selection criteria, or biases among decision-makers can
create challenges in the selection process, leading to delays or
inefficiencies in candidate evaluation and decision-making.

Test and Interview

22 Dec 2019

In today’s dynamic business environment, organizations use several

methods to connect people’s knowledge, skills and competencies with the
responsibilities and duties for a given job. A best practice in this area that is
rapidly becoming an industry standard is to run an employee selection test,
an assessment that measures an individual’s personality, aptitude and/or
abilities.

INTERVIEW

Interview is the widely used (election method. It is a face-to-face interaction

between interviewee and interviewer. If handled carefully, it can be a
powerful technique in having accurate information of the interviewee
otherwise unavailable. At the same time, if the interview is not handled
carefully, it can be a source of bias, restricting or distorting the flow of
communication.

Objectives of Interview

1. Verifies the information obtained through application form and tests.

2. Helps obtain additional information from the applicant otherwise not
available.
3. Gives the candidate necessary facts and information about the job
and the organization.
 4. Helps establish mutual understanding between the company and the
candidate and build the company’s image.

Types of Interviews

Four types of interviews for selection have been identified.

1. Preliminary Interview

The interviews conducted to screen the applicants to decide whether

further detailed interview will be required are called preliminary interviews.
The candidate is given freedom by giving job details during the interview to
decide whether the job will suit him.

One of the drawback associated with the preliminary interview is that it

might lead to the elimination of many desirable candidates in case
interviewers do not have much and proper experience in evaluating
candidates. The positive argument, if any, for this method is that it saves
time and money for the company.

2. Patterned Interview

In this interview, the pattern of the interview is decided in advance. What

kind of information is to be sought or given, how the interview is to be
conducted, and how much time is to be allotted to it, all these are worked
out in advance. In case interviewee drifts, he/she is swiftly guided back to
the structured questions. Such interviews are also called standardised
interviews.

3. Depth Interview

As the term itself implies, depth interview tries to portray the interviewee in
depth and detail. It, accordingly, covers the life history of the applicant
along with his/her work experience, academic qualifications, health,
attitude, interest, and hobbies. This method is particularly suitable for
executive selection. Expectedly, depth interview involves more time and
money in conducting it.

4. Stress Interview
Such interviews are conducted for the jobs which are to be performed
under stressful conditions. The objective of stress interview is to make
deliberate attempts to create stressful or strained conditions for the
interviewee to observe how the applicant behaves under stressful
conditions.

The common methods used to induce stress include frequent interruptions,

keeping silent for an extended period of time, asking too many questions at
a time, making derogatory remarks about the candidate, accusing him that
he is lying and so on. The purpose is to observe how the candidate
behaves under the stressful conditions – whether he looses his temper,
gets confused or frightened.

However, stress-inducing must be done very carefully by trained and skilled

interviewer otherwise it may result in dangers. Emotionally charged
candidates must not be subjected to further stressful conditions. The
candidate should be given sufficient chance to cope with such induced
stress before he leaves.

Limitations of Interview

1. Interviewers may not have a clearly defined technique developed.

This results in lack of validity in evaluation of the candidate.
2. There is always variation in offering scoring points to the candidate
by the interviewers.
3. Interview can help judge the personality of the candidate but not his
ability for the job.
4. A single characteristic of the candidate found out on the basis of
interview, may affect the judgment of the interviewer on other
qualities of the applicant. This is called ‘halo effect’.
5. The biases of interviewers may cloud the objectivity of interview.
6. Finally, interview is a time consuming and expensive device of
selection.

Placement Induction
10 Sep 2024
Placement is the actual posting of an employee to a specific job. It involves
assigning a specific rank and responsibility to an employee. Placement is
an important human resource activity. If neglected, it may create employee
adjustment problems leading to absenteeism, turnover, accidents, poor
performance, etc. The employee will also suffer seriously. He may quit the
organization in frustration, complaining bitterly about everything. Proper
placement is, therefore, important to both the employee and the
organization.

Placement, it should the remembered, should be made with as little

disruption to the employee and organization as possible. To this end, new
recruits must be oriented properly so that they become productive
contributors. There should be a conscious and determined effort to adapt
the new recruit to the organization’s culture (the rules, jargon, customs and
other traditions that clarify acceptable and unacceptable behaviour in an
organization) by conveying to the employee how things are done and what
matters. When new employees know what is expected of them, they have
better organisational performance and less frustration and uncertainty.

The HR department may initiate the following steps while organizing the
induction programme:

1. Welcome to the organization.

2. Explain about the company.
3. Show the location/department where the new recruit will work.
4. Give the company’s manual to the new recruit.
5. Provide details about various work groups and the extent of unionism
within the company.
6. Give details about pay, benefits, holidays, leave, etc. Emphasize the
importance of attendance or punctuality.
7. Explain about future training opportunities and career prospects.
8. Clarify doubts, by encouraging the employee to come out with
questions.
9. Take the employee on a guided tour of buildings, facilities, etc. Hand
him over to his supervisor.

Socialization

Socialization is a process through which a new recruit begins to understand

and accept the values, norms and beliefs held by others in the
organization. HR department representatives help new recruits to
“internalize the way things are done in the organization”. Orientation helps
the newcomers to interact freely with employees working at various levels
and learn behaviours that are acceptable. Through such formal and
informal interaction and discussion, newcomers begin to understand how
the department/company is run, who holds power and who does not, who is
politically active within the department, how to behave in the company,
what is expected of them, etc. In short, if the new recruits wish to survive
and prosper in their new work home, they must soon come to ‘know the
ropes’. Orientation programmes are effective socialisation tools because
they help the employees to learn about the job and perform things in the
desired way.

Follow up

Despite the best efforts of supervisors, certain dark areas may still remain
in the orientation programme. New hires may not have understood certain
things. The supervisors, while covering a large ground, may have ignored
certain important matters. To overcome the resultant communication gaps,
it is better to use a supervisory checklist as shown in Box 11.1 and find out
whether all aspects have been covered or not. Follow up meetings could be
held at fixed intervals, say after every three or six months on a face-to-face
basis. The basic purpose of such follow-up orientation is to offer guidance
to employees on various general as well as job-related matters – without
leaving anything to chance. To improve orientation, the company should
make a conscious effort to obtain feedback from everyone involved in the
programme. There are several ways to get this kind of feedback: through
roundtable discussions with new hires after their first year on the job,
through in-depth interviews with randomly selected employees and
superiors and through questionnaires for mass coverage of all recent
recruits.

Importance

Proper placement and Induction is very important as they serve the

following purposes:

1. Removes fear: A newcomer steps into an organization as a

stranger. He is new to the people, workplace and works environment.
 He is not very sure about what he is supposed to do. Induction helps
a new employee overcome such fears and perform better on the job.
It assists him in knowing more about:

(a) The job, its content, policies, rules and regulations.

(b) The people with whom he is supposed to interact.

(c) The terms and conditions of employment.

2. Creates a good impression: Another purpose of induction is to

make the newcomer feel at home and develop a sense of pride in the
organization. Induction helps him to:

(a) Adjust and adapt to new demands of the job.

(b) Get along with people.

(c) Get off to a good start.

Through induction, a new recruit is able to see more clearly as to what he is

supposed to do, how good the colleagues are, how important is the job,
etc. He can pose questions and seek clarifications on issues relating to his
job. Induction is a positive step, in the sense, it leaves a good impression
on the company and the people working there in the minds of new recruits.
They begin to take pride in their work and are more committed to their jobs.

Challenges

The challenges for organizations in induction and placement with the

diversified workforce come in a form of language, culture and different
working method. The changing business scenario and workforce trends
have made employee retention a crucial problem that needs to be offset.
An effective employee induction program is one such tool that is used for a
successful employee on boarding and employee retention. The Employee
Induction Program should be designed in such a way that it provides
relevant information to the employees. Provision of reality checks through
surveys, feedbacks, and appraisals help the employer ensure the
effectiveness of the induction program. The companies that invest more
time and resources in induction enjoy the highest degree of employee
engagement, which has a significant impact on the company’s bottom line.
[Employee Induction ]

Socialization of Employee

The socialization of a new employee is a critical part of the induction and

can reflect in the employee’s satisfaction in their new working environment.
Managers need to arrange a departmental meeting on the first day of the
new employee to formally introduce him to the team. Arrangements should
also be made for the new employee to visit other departments with which
he needs to work closely in the course of his duties.

Culture

Cultural fit is very important. Hence, briefing the new employee about the
management philosophy and the organisational culture is vital. New
employees also need to be coached on organisational sensitivity, grooming
and business etiquette. Besides responsibility orientation and support
goals, new members of the family need to learn how to be an effective
brand ambassador of the organization.

Learning Challenges

Care should be taken that the new incumbent is not bombarded with details
or bulldozed with an overdose of talks and power point slides. A good
corporate induction should incorporate case studies, role plays, video films
and simulated exercises that are fun and yet serve the purpose. [
Employee Induction ]

Employee Retention,
Need, Strategies
10 Sep 2024
Employee retention refers to an organization’s ability to retain its
employees over time, minimizing turnover and maintaining a stable
workforce. It involves implementing strategies and policies to encourage
employees to remain with the company, such as offering competitive
salaries, providing growth opportunities, fostering a positive work culture,
and ensuring work-life balance. High retention rates are crucial for reducing
recruitment costs, maintaining productivity, and preserving institutional
knowledge. Effective retention also enhances employee morale and
engagement, contributing to a more motivated and loyal workforce,
ultimately benefiting the organization’s overall performance and success.

Need of Employee Retention:

1. Reduced Recruitment and Training Costs

High turnover leads to constant recruitment, hiring, and training, which can
be expensive and time-consuming. Recruiting new employees involves
advertising job positions, conducting interviews, and onboarding, while
training requires dedicated resources to equip new hires with the necessary
skills. Retaining employees reduces the frequency of these processes,
saving the organization significant amounts of money and effort.

2. Enhanced Productivity

Long-term employees have a deeper understanding of their roles,

organizational processes, and company culture. This familiarity leads to
higher efficiency and productivity, as they can perform their tasks with
greater ease and accuracy. In contrast, new hires often have a learning
curve, during which productivity may be lower. Employee retention ensures
continuity and steady performance, benefiting overall business outcomes.

3. Preservation of Organizational Knowledge

Experienced employees possess valuable institutional knowledge,

including insights into company history, relationships with clients, and an
understanding of internal processes. Retaining employees helps preserve
this critical knowledge, which is difficult to replace. Losing key employees
means losing expertise, which can lead to operational disruptions and the
need for lengthy knowledge transfer periods for replacements.
 4. Improved Employee Morale and Engagement

High turnover rates can negatively impact employee morale and create a
sense of instability within the workforce. Employees who stay with the
company longer are more likely to feel invested in its success, leading to
higher engagement and motivation. A stable work environment promotes
team cohesion, trust, and stronger working relationships, contributing to
overall job satisfaction.

5. Better Customer Relationships

Employees who stay with the company for a long time develop strong
relationships with clients, understanding their needs and preferences.
These long-standing relationships foster customer loyalty, leading to repeat
business and improved client satisfaction. Frequent employee turnover can
disrupt customer relationships and lead to a decline in service quality.

6. Consistency in Work Quality

Retained employees develop expertise in their roles, which leads to

consistency in work quality. Long-term employees can handle complex
tasks more effectively, adhere to company standards, and continuously
improve their performance. In contrast, new employees may take time to
adapt, and their work quality may vary initially.

7. Positive Organizational Culture

A company with high retention rates typically has a strong, positive

organizational culture. Employees feel valued, supported, and recognized,
leading to higher loyalty and commitment. This positive environment
attracts new talent and encourages existing employees to stay, creating a
cycle of retention and organizational growth.

Strategies Employee Retention:

1. Competitive Compensation and Benefits

Offering competitive salaries and comprehensive benefits packages is

fundamental to retaining employees. This includes not only base pay but
also bonuses, health insurance, retirement plans, paid time off, and other
perks. Regularly reviewing and adjusting compensation to align with
industry standards and employee expectations helps in keeping the
workforce satisfied and loyal.

2. Professional Development Opportunities

Providing opportunities for growth and advancement is vital for employee

retention. This can include training programs, workshops, mentorship, and
career development plans. By investing in employees’ skills and career
progression, organizations demonstrate a commitment to their long-term
success and encourage them to stay.

3. Positive Work Environment and Culture

Creating a supportive and inclusive work culture helps in retaining

employees. A positive work environment fosters open communication,
teamwork, and mutual respect. Recognizing and celebrating achievements,
encouraging feedback, and addressing workplace issues promptly
contribute to a healthy and engaging workplace culture.

4. Work-Life Balance

Promoting work-life balance is essential for employee well-being and

retention. Offering flexible work arrangements, such as remote work
options, flexible hours, or compressed workweeks, helps employees
manage their personal and professional responsibilities. Supporting work-
life balance reduces burnout and increases job satisfaction.

5. Recognition and Rewards

Regularly acknowledging and rewarding employees for their contributions

can significantly impact retention. This includes formal recognition
programs, performance-based bonuses, and non-monetary rewards such
as employee of the month awards. Recognizing employees’ hard work and
achievements makes them feel valued and motivates them to continue their
commitment.

6. Career Pathing and Succession Planning

Providing clear career paths and succession planning helps employees

understand their potential for advancement within the organization. By
outlining opportunities for promotion and growth, employees are more likely
to stay engaged and motivated, knowing that their efforts can lead to career
progression.

7. Effective Management and Leadership

Strong management and leadership are crucial for employee retention.

Managers who are supportive, approachable, and effective in their roles
create a positive work atmosphere. Providing managers with training on
leadership and interpersonal skills ensures they can effectively manage
and retain their teams.

8. Employee Feedback and Engagement

Regularly seeking and acting on employee feedback helps in addressing

concerns and improving the work environment. Conducting surveys,
holding focus groups, and having open-door policies for feedback enable
employees to voice their opinions and feel heard. Engaging employees in
decision-making processes and involving them in shaping their work
environment fosters a sense of ownership and commitment.

9. Health and Well-being Programs

Implementing health and well-being programs, such as wellness initiatives,

stress management resources, and mental health support, contributes to
employees’ overall well-being. A healthy and supported workforce is more
likely to remain with the organization and perform at their best.

10. Strong Onboarding and Orientation

A well-structured onboarding and orientation process helps new employees

integrate smoothly into the organization. Providing clear information about
company culture, expectations, and resources from the start sets the stage
for long-term success and retention. Ensuring new hires feel welcomed and
supported enhances their initial experience and encourages them to stay.

11. Transparency and Communication

Maintaining transparency in organizational changes, policies, and decision-

making processes builds trust and reduces uncertainty. Open and honest
communication helps employees feel informed and involved, leading to
higher satisfaction and retention.
 12. Personal Development and Well-being Support

Supporting personal development, such as educational opportunities,

personal growth initiatives, and work-life integration, helps employees feel
valued beyond their professional roles. Providing support for personal goals
and well-being enhances overall job satisfaction and loyalty.

Employee Retention,
Need, Strategies
10 Sep 2024

Employee retention refers to an organization’s ability to retain its

employees over time, minimizing turnover and maintaining a stable
workforce. It involves implementing strategies and policies to encourage
employees to remain with the company, such as offering competitive
salaries, providing growth opportunities, fostering a positive work culture,
and ensuring work-life balance. High retention rates are crucial for reducing
recruitment costs, maintaining productivity, and preserving institutional
knowledge. Effective retention also enhances employee morale and
engagement, contributing to a more motivated and loyal workforce,
ultimately benefiting the organization’s overall performance and success.

Need of Employee Retention:

1. Reduced Recruitment and Training Costs

High turnover leads to constant recruitment, hiring, and training, which can
be expensive and time-consuming. Recruiting new employees involves
advertising job positions, conducting interviews, and onboarding, while
training requires dedicated resources to equip new hires with the necessary
skills. Retaining employees reduces the frequency of these processes,
saving the organization significant amounts of money and effort.

2. Enhanced Productivity
Long-term employees have a deeper understanding of their roles,
organizational processes, and company culture. This familiarity leads to
higher efficiency and productivity, as they can perform their tasks with
greater ease and accuracy. In contrast, new hires often have a learning
curve, during which productivity may be lower. Employee retention ensures
continuity and steady performance, benefiting overall business outcomes.

3. Preservation of Organizational Knowledge

Experienced employees possess valuable institutional knowledge,

including insights into company history, relationships with clients, and an
understanding of internal processes. Retaining employees helps preserve
this critical knowledge, which is difficult to replace. Losing key employees
means losing expertise, which can lead to operational disruptions and the
need for lengthy knowledge transfer periods for replacements.

4. Improved Employee Morale and Engagement

High turnover rates can negatively impact employee morale and create a
sense of instability within the workforce. Employees who stay with the
company longer are more likely to feel invested in its success, leading to
higher engagement and motivation. A stable work environment promotes
team cohesion, trust, and stronger working relationships, contributing to
overall job satisfaction.

5. Better Customer Relationships

Employees who stay with the company for a long time develop strong
relationships with clients, understanding their needs and preferences.
These long-standing relationships foster customer loyalty, leading to repeat
business and improved client satisfaction. Frequent employee turnover can
disrupt customer relationships and lead to a decline in service quality.

6. Consistency in Work Quality

Retained employees develop expertise in their roles, which leads to

consistency in work quality. Long-term employees can handle complex
tasks more effectively, adhere to company standards, and continuously
improve their performance. In contrast, new employees may take time to
adapt, and their work quality may vary initially.
 7. Positive Organizational Culture

A company with high retention rates typically has a strong, positive

organizational culture. Employees feel valued, supported, and recognized,
leading to higher loyalty and commitment. This positive environment
attracts new talent and encourages existing employees to stay, creating a
cycle of retention and organizational growth.

Strategies Employee Retention:

1. Competitive Compensation and Benefits

Offering competitive salaries and comprehensive benefits packages is

fundamental to retaining employees. This includes not only base pay but
also bonuses, health insurance, retirement plans, paid time off, and other
perks. Regularly reviewing and adjusting compensation to align with
industry standards and employee expectations helps in keeping the
workforce satisfied and loyal.

2. Professional Development Opportunities

Providing opportunities for growth and advancement is vital for employee

retention. This can include training programs, workshops, mentorship, and
career development plans. By investing in employees’ skills and career
progression, organizations demonstrate a commitment to their long-term
success and encourage them to stay.

3. Positive Work Environment and Culture

Creating a supportive and inclusive work culture helps in retaining

employees. A positive work environment fosters open communication,
teamwork, and mutual respect. Recognizing and celebrating achievements,
encouraging feedback, and addressing workplace issues promptly
contribute to a healthy and engaging workplace culture.

4. Work-Life Balance

Promoting work-life balance is essential for employee well-being and

retention. Offering flexible work arrangements, such as remote work
options, flexible hours, or compressed workweeks, helps employees
manage their personal and professional responsibilities. Supporting work-
life balance reduces burnout and increases job satisfaction.

5. Recognition and Rewards

Regularly acknowledging and rewarding employees for their contributions

can significantly impact retention. This includes formal recognition
programs, performance-based bonuses, and non-monetary rewards such
as employee of the month awards. Recognizing employees’ hard work and
achievements makes them feel valued and motivates them to continue their
commitment.

6. Career Pathing and Succession Planning

Providing clear career paths and succession planning helps employees

understand their potential for advancement within the organization. By
outlining opportunities for promotion and growth, employees are more likely
to stay engaged and motivated, knowing that their efforts can lead to career
progression.

7. Effective Management and Leadership

Strong management and leadership are crucial for employee retention.

Managers who are supportive, approachable, and effective in their roles
create a positive work atmosphere. Providing managers with training on
leadership and interpersonal skills ensures they can effectively manage
and retain their teams.

8. Employee Feedback and Engagement

Regularly seeking and acting on employee feedback helps in addressing

concerns and improving the work environment. Conducting surveys,
holding focus groups, and having open-door policies for feedback enable
employees to voice their opinions and feel heard. Engaging employees in
decision-making processes and involving them in shaping their work
environment fosters a sense of ownership and commitment.

9. Health and Well-being Programs

Implementing health and well-being programs, such as wellness initiatives,

stress management resources, and mental health support, contributes to
employees’ overall well-being. A healthy and supported workforce is more
likely to remain with the organization and perform at their best.

10. Strong Onboarding and Orientation

A well-structured onboarding and orientation process helps new employees

integrate smoothly into the organization. Providing clear information about
company culture, expectations, and resources from the start sets the stage
for long-term success and retention. Ensuring new hires feel welcomed and
supported enhances their initial experience and encourages them to stay.

11. Transparency and Communication

Maintaining transparency in organizational changes, policies, and decision-

making processes builds trust and reduces uncertainty. Open and honest
communication helps employees feel informed and involved, leading to
higher satisfaction and retention.

12. Personal Development and Well-being Support

Supporting personal development, such as educational opportunities,

personal growth initiatives, and work-life integration, helps employees feel
valued beyond their professional roles. Providing support for personal goals
and well-being enhances overall job satisfaction and loyalty.

Customer Retention
Strategies
10 Sep 2024

Retaining Current Customers

It is widely known, that the cost of acquiring new customers is about five
time the cost of retaining current customers. While money has to be spent
in acquiring new customers, a company gains from old loyal customers as
they:

1. purchase the services of the company repetitively,

2. are cheaper to serve as they do not have to be educated for repeated
service deliveries and play their roles accurately,
3. are willing to pay a increased price for the same service as they are
satisfied with it,
4. purchase other services from the same company, and,
5. refer the company to other people, who in-turn purchase from and
add to the revenues of the company.

A customer can be retained when he/she becomes loyal to the company. A

customer becomes loyal to the company when he/she is satisfied with the
quality of service delivered by the company and receives true economic
value (TEV) from the company. Professors Sunil Gupta and Valerie
Zeithaml have written in 2006 that both customer satisfaction, and resulting
customer retention, enhances financial performance of a firm. For instance
1% increase in the American Customer Satisfaction Index can lead to a
$240 to $275 million improvement in firm value.

We may note that not all customers are profitable for a company. It has
been found that the top 20% of the customers generate 220% of the profits
while non-profitable customers eat away a lot of the generated profit as
shown in Figure 37-1 and Figure 37-2. So, we would be interested in
identifying our profitable customers and nurture them, while negotiating
low-cost services or higher prices with non-profitable customers. In one
company, researchers found that the single largest customers also
accounted for the heaviest investments from the company to serve them
and were therefore, eating into the company’s profits. Company personnel
then negotiated with their largest customer for higher prices while
streamlining the services offered to the customer. We would then be
wondering how we can calculate the value of a customer to our company.
The model used to do that is called customer lifetime value (CLV) as
described in the following section.
Customer Lifetime Value
Professors Sunil Gupta and Donald R. Lehman have shown in 2003 that
the customer lifetime value can be calculated using the following formula:

CLV = mr(1+i-r)

where,
m is the constant margin received from the customer,
r is retention rate, i.e. the probability that the customer will make a
repurchase, and
i is the prevailing interest rate

The margin and retention rates are calculated from an analysis of previous
shopping data of the customers. It is clear from the above formula that the
value of a customer retained with the company is directly proportional to
the retention rate. Many research studies have found that making
investment on customer retention is more important than investments on
improving the margin or investing in customer acquisition, although this is
dependent on the life cycle of the service industry. For instance, studies
have found that it is five times more costly to acquire new customers than
to retain current customers. Hence, it is important to retain current
customers of a company and try to make them loyal to the company.

Comprehensive
approach
Employees
Retention
7 Jun 2024

Strong hiring trends are causing businesses to focus more on employee

retention, according to the Society for Human Resource Management
(SHRM). An employee retention strategy can also be integral to a
company’s talent management and human capital management strategies.
When businesses begin to approach employee retention in a systematic
way, it can be challenging to determine the best way to move forward.
Here’s a look at five elements you can implement to help build a
comprehensive staff retention strategy at your company.
Better Recruiting From the Beginning

A winning retention strategy starts with your hiring process. While you
should focus on hiring the most qualified individual for any position,
companies with great retention records also prioritize a long-term fit during
the interview process. What are the candidate’s long-range career plans
and is your company able to offer those opportunities? Is a candidate a
good cultural fit with your business’ objectives, priorities, and work style?
Does the candidate have a stable track record, or does he or she tend to
change jobs frequently? By looking for a strong fit from the beginning,
companies may have more control over employee retention.

Training Your Managers to Foster Retention

Your managers may be one of the most important elements of your

company’s employee retention strategy. As the saying goes, workers don’t
leave companies; they leave managers. Helping your managers
understand their role in employee retention can be an important step
toward strengthening employee relationships. Ensure your managers
understand why retention is a strategic priority. Focus on training managers
in basic skills that foster productive relationships and a positive work
environment. When leaders set a great tone, talent is more likely to stay.

Measure and Support Engagement

Employee engagement is another critical component of a long-term

retention strategy. Employers can foster engagement in many ways, such
as demonstrating that you value employees’ work and ensuring that they
understand and work toward the company’s mission. Investing in team-
building and strong relationships throughout the company may also be
important for keeping your workforce connected and engaged.

Show Recognition in Multiple Ways

Recognizing the contributions of employees and showing that they’re
valued is possible in many ways: compensation, benefits, and bonuses
may be the most traditional. Yet employee recognition programs that offer
awards, VIP parking spaces, small gifts, and other public
acknowledgements of a job well-done may also have a positive effect on
employee retention.

Frame the Long-Term Career Trajectory

Employees are more likely to stay with companies where they know the
possibility exists to grow their careers. Help candidates understand where
each position can lead. Take the time to find out what employees’ goals are
and discuss different strategies for achieving them, from allowing them to
take on more responsibility to helping defray the cost of their education.

Employee retention is an important part of a successful human capital

management strategy. By focusing on elements such as growth
opportunities, hiring the right staff, training your managers, and investing in
employee engagement, companies can see employee retention rates rise
even in today’s tight labor market.

Internal Mobility and

Job Changes:
Promotions,
Demotion
3 Oct 2024

The lateral or vertical movement (promotions, transfer demotion or

separation) of an employee within an organization is called internal
mobility. It may take place between jobs in various departments or
divisions. Some employees may leave the organization for reason such as
better prospects, retirement terminations, etc. Such movements are known
as external mobility.

Purposes of Internal Mobility and Job Changes

1. Improper organizational effectiveness: Organizations want to

become lean and clean. To this end, structural defects may have to
be eliminated; unwanted positions removed and other jobs
redesigned. Internal mobility increases every such change within an
organization.
2. Improve employees effectiveness: Knowledge, skills and abilities
(KSAs) can be put to use if there is a good equation between what
the person has and what the organizations demands. Through
promotions and transfers organizations try to bridge such gaps.
3. Adjust to changing business operations: During a boom, there
might be a phenomenal demand for new skills. Finance professionals
were in great demand for example during the early 90s. In a
recession, layoffs may be needed to cut down and survive. Likewise
short term adjustments may have to be carried out in case of death
or illness of employees.
4. Ensure discipline: Demotion, causes loss of status and earning
capacity. A demoted employees has to learn new ways of getting
things done and adjust to a new setting. Demotions can be used to
ensure discipline and to correct wrong placements and job
assignments.

PROMOTIONS
According to Pigours and Myers, ‘Promotion is advancement of an
employee to a better job – better in terms of greater responsibility, more
prestige or status, greater skill and especially increased rate of pay or
salary”.

Arun Monappa and Mirza S Saiyadain defined promotion as “the upward

reassignment of an individual in an organization’s hierarchy, accompanied
by increased responsibilities, enhanced status and usually with increased
income though not always so”.

Conditions of promotions are-

 ● Reassignment of higher level job to an employee than what he is
presently performing
● The employee will naturally be delegated with greater responsibility
and authority than what he has had earlier. Promotion normally
accompanied higher pay. It means in some cases, the employee
perform higher level job and receive the salary related to the lower
level job.
● Promotion may be temporary or permanent depending upon the
organizational needs and employee performance.

Types of Promotion

1. Vertical Promotion
2. Up gradation
3. Dry Promotion

Purposes of Promotion-

● To utilize the employee’s skill knowledge at the appropriate level in

the organizational hierarchy
● To develop competitive spirit and inculcate the zeal in the employees
to acquire the skill, knowledge etc. required by higher level jobs.
● To develop competent internal source of employees ready to take up
jobs at higher levels in the changing environment.
● To promote employees’ self development and make them await their
turn of promotions. It reduces labour turnover.
● To promote a feeling of contentment with the existing conditions of
the company and a sense of belongingness.
● To promote interest in training, development programmes and in
team development areas.
● To build loyalty and to boost morale.
● To reward committed and loyal employees
● To get rid of the problems created by the leaders of workers’ unions
by promoting them to the officers’ levels where they are less effective
in creating problems.
● Promotion places the employees in a position where an employee’s
skills and knowledge can be better utilized.
● It creates and increases the interest of other employees in the
company as they believe that they will also get their turn.
 ● It creates among employees a feeling of content with the existing
conditions of work and employment.
● It increases interest in acquiring h9gher qualifications, in training and
in self development with a view to meet the requirements of
promotion.
● It improves morale and job satisfaction
● Ultimately it improves organizational health.
● Benefits of Promotion
● Promotion Principles:
● It should be consistent in the sense that policy should be applied
uniformly to all employees irrespective of the background of the
persons,
● It should be fair and impartial.
● Systematic line of promotion channel should be incorporated,
● It should provide equal opportunities for promotion in all categories of
jobs, departments and regions of an organization,
● It should ensure open policy in the sense that every eligible
employee should be considered for promotion rather than a closed
system,
● It should contain clear cut norms and criteria for judging merit, length
of service, potentiality etc.
● Appropriate authority should be entrusted with the task of making a
final decision, it should contain promotional counseling,
encouragement, guidance and follow-up regarding promotional
opportunities, job requirements and acquiring the required skills,
knowledge etc.

DEMOTIONS

Reasons:

● Unsuitability of the employee to higher level jobs

● Adverse business conditions
● New technology and new methods of operation
● On disciplinary actions

Demotion Principles:

● Specification of circumstances under which an employee will be

demoted like reductions in operation, indisciplinary cases.
 ● Specification of supervisor who is authorized and responsible to
initiate a demotion.
● Jobs from and to which demotions will be made and specifications of
lines or ladders of demotion.
● Specification of basis for demotion like length of service, merit or
both.
● It should provide for an open policy rather than a closed policy
● It should contain clear cut norms for judging merit and length of
service
● Specification of provisions regarding placing the demoted employees
in their original places if normal conditions are restored.
● Specification of nature of demotion, i.e., whether it is permanent or
temporary of it is as disciplinary action. It should also specify the
guidelines for determining the seniority of such demoted employees.

Transfers and
Separation
22 Dec 2019

TRANSFER

A transfer refers to lateral movement of employees within the same grade,

from one job to another. According to Flippo “a transfer is a change in the
job (accompanied by a change in the place of the job) of an employee
without a change in responsibilities or remuneration”.

Transfer differs from promotion in the sense that the latter involves a
change of job involving increase in salary, authority, status and
responsibility, while all these remain unchanged /stagnant in the case of
former. Also, transfers are frequent and regular whereas promotions are
infrequent, if not irregular.
There are some public sector organizations like Minerals and Metals
Trading Corporation (MMTC) who have entered into agreements, with
employees for creating two cadres of officers, namely. Local Officers and
All India Officers wherein promotions to and within the former are less
accelerated than in the latter, but do not entail transfer.

Need of Transfer-

The need for making transfer is left for various reasons as listed
below:

(i) To Meet Organisational Needs

Changes in technology, volume of production, production schedule, product

line, quality of products, organisational structure, etc. necessitate an
organisation to reassign jobs among employees so that right employee is
placed on the right job.

(ii) To Satisfy Employee Needs

Employees may request for transfer in order to satisfy their desire to work
in a particular department, place and under some superior. Personal
problems of employee like health, family circumstances, and interpersonal
conflicts may also necessitate transfer.

(iii) To Better Utilize Employee

When an employee is not performing satisfactorily on one job and

management thinks that his/her capabilities would be utilized better
elsewhere, he/she may be transferred to other job.

(iv) To Make the Employee More Versatile

In some organizations like banks, employees after working on a job for a

specified period are transferred to other job with a view to widen their
knowledge and skill and also reduce monotony. This is also called ‘job
rotation.

(v) To Adjust the Workforce

Work force can be transferred from the departments / plants where there is
less work to the departments/plants where more work is.

(vi) To Provide Relief

Transfers may be made to give relief to the employees who are

overburdened or doing hazardous work for long period.

(vii) To Punish Employee

Management may use transfer as an instrument to penalize employees

who are indulged in undesirable activities. As a disciplinary action,
employees are transferred to remote and far-flung areas.

Types of Transfer

(i) Production Transfer

Such transfers are made when labour requirements in one division or

branch is declining. The surplus employees from such division are
transferred to those divisions or branches where there is shortage of
employees. Such transfers help avoid lay off and stabilize employment.

(ii) Remedial Transfer

Such transfers are affected to correct the wrong selection and placement of
employees. A wrongly placed employee is transferred to more suitable job.
Such transfers protect the interest of the employee.

(iii) Replacement Transfer

Replacement transfers are similar to production transfers in their inherent,

i.e. to avoid layoffs. Replacement transfers are affected when labour
requirements are declining and are designed to replace a new employee by
an employee who has been in the organization for a sufficiently long time.
The purpose of these transfers is to retain long service employees in the
organization and also give them some relief from the heavy pressure of
work.

(iv) Versatility Transfer

These transfers are also known as ‘job rotation? In such transfers,
employees are made move from one job to another to gain varied and
broader experience of work. It benefits both the employee and
organization. It reduces boredom and monotony and gives job enrichment
to the employee. Also, employees’ versatility can be utilized by the
organization as and when needed.

(v) Shift Transfers

These transfers are affected in the organizations where work progresses

for 24 hours or in shifts. Employees are transferred from one shift to
another usually on the basis of mutual understanding and convenience.

(vi) Penalty Transfer

Management may use transfer as an instrument to penalize employees’

involved in undesirable activities in the organization. Employee transfer
from one’s place of convenience to a far-flung and remote area is
considered as a penalty to the employee.

SEPARATION

Employee separation is a sensitive issue for any organization. Usually, an

employee leaves the organization after several years of service. Thus, the
permanent separation of employees from an organization requires
discretion, empathy and a great deal of planning. An employee may be
separated as consequence of resignation, removal, death, permanent
incapacity, discharge or retirement. The employee may also be separated
due to the expiration of an employment contract or as part of downsizing of
the workforce. Organizations should never harass the employees,
especially in the case of resignation, just because they are quitting the
organiza-tion. In fact, a quitting employee of the organization must be seen
as a potential candidate of the future for the organization and also the
brand ambassador of its HR policies and practices. However, many
organizations are still treating their employees as “expendable resources”
and discharging them in an unplanned manner whenever they choose to
do so

Each organization must have comprehensive separation policies and

procedures to treat the departing employees equitably and ensure smooth
transition for them. Further, each employee can provide a wealth of
information to the organization at the time of separation. Exit interviews can
be conducted by the HR department to ascertain the views of the leaving
employees about different aspects of the organization, including the
efficacy of its HR policies.

Reasons for Separation of Employees

Employee separation constitutes the final stage in the staffing process of

an organization. An employee can leave the organization for any reason
which he deems fit for seeking separation. However, separation is
classified basically into two types. These are: voluntary separation and
involuntary separation. Voluntary separation refers to the separation of
employees on their own request, while involuntary separation means the
separation of employees for organizational reasons which are beyond the
control of the employees. We shall now discuss the causes of these
separations in detail.

(i) Voluntary Separation: Voluntary separation, which normally begins

after a request is placed in this regard by the employee, can happen due to
two reasons: professional reason and personal reason. We shall now
discuss these reasons in detail.

(ii) Professional reasons: Employees may seek separation when they

decide to seek better positions, responsibilities and status outside the
present organization. Efficient employees would seek to expand their realm
of knowledge and skills continuously by working in different
capacities/positions in various organizations. In their quest for greater
responsibility, power and status, they may seek separation from the
organization.

(iii) Personal reasons: The important personal reasons for voluntary

separation are relocation for family reasons like marriage of the employees
and health crisis of family members, maternity and child-rearing. For
instance, when working women get married, they often prefer to settle in
the partners place of occupation. Similarly, an employee may seek
voluntary separation to look after the child or parent.

(iv) Involuntary Separation: As mentioned earlier, an involuntary

separation is caused by the factors which remain beyond the purview of the
employees. However, these factors may be classified broadly into health
problems, behavioural problems and organizational problems. We shall
now discuss these factors in detail

(v) Health problems: Major health problems crippling the employees may
make them invalid or unfit to continue in the profession. For instance,
accidents causing permanent disabilities and illness of the employees like
brain stroke and other terminal illnesses can lead to their involuntary
separation. Death of employees is another factor which results in their
involuntary separation.

(vi) Behavioural problems: An employee’s objectionable and unruly

behaviour within the organization may also lead to his involuntary
separation from the organization. When the employees behaviour is
unethical or violates the code of conduct in force, the organization may
initiate disciplinary actions, which may eventually result in his termination.
This may constitute an act of involuntary separation. Consistent failure to
reach performance goals by an employee can also result in his involuntary
separation.

(vii) Organizational problems: Organizational problems are another

important factor that contributes to the involuntary separation of employees.
The poor financial performance of an organization may cause it to
terminate the services of some of its employees as part of cost control
measure. Such terminations are also classified as involuntary separation.
Similarly, automation, organizational restructuring and rationalization can
also result in employee termination, discharge or layoff, broadly called
involuntary separation.

Internal Mobility and

Job Changes:
Promotions,
Demotion
3 Oct 2024

The lateral or vertical movement (promotions, transfer demotion or

separation) of an employee within an organization is called internal
mobility. It may take place between jobs in various departments or
divisions. Some employees may leave the organization for reason such as
better prospects, retirement terminations, etc. Such movements are known
as external mobility.

Purposes of Internal Mobility and Job Changes

1. Improper organizational effectiveness: Organizations want to

become lean and clean. To this end, structural defects may have to
be eliminated; unwanted positions removed and other jobs
redesigned. Internal mobility increases every such change within an
organization.
2. Improve employees effectiveness: Knowledge, skills and abilities
(KSAs) can be put to use if there is a good equation between what
the person has and what the organizations demands. Through
promotions and transfers organizations try to bridge such gaps.
3. Adjust to changing business operations: During a boom, there
might be a phenomenal demand for new skills. Finance professionals
were in great demand for example during the early 90s. In a
recession, layoffs may be needed to cut down and survive. Likewise
short term adjustments may have to be carried out in case of death
or illness of employees.
4. Ensure discipline: Demotion, causes loss of status and earning
capacity. A demoted employees has to learn new ways of getting
things done and adjust to a new setting. Demotions can be used to
ensure discipline and to correct wrong placements and job
assignments.
PROMOTIONS

According to Pigours and Myers, ‘Promotion is advancement of an

employee to a better job – better in terms of greater responsibility, more
prestige or status, greater skill and especially increased rate of pay or
salary”.

Arun Monappa and Mirza S Saiyadain defined promotion as “the upward

reassignment of an individual in an organization’s hierarchy, accompanied
by increased responsibilities, enhanced status and usually with increased
income though not always so”.

Conditions of promotions are-

● Reassignment of higher level job to an employee than what he is

presently performing
● The employee will naturally be delegated with greater responsibility
and authority than what he has had earlier. Promotion normally
accompanied higher pay. It means in some cases, the employee
perform higher level job and receive the salary related to the lower
level job.
● Promotion may be temporary or permanent depending upon the
organizational needs and employee performance.

Types of Promotion

1. Vertical Promotion
2. Up gradation
3. Dry Promotion

Purposes of Promotion-

● To utilize the employee’s skill knowledge at the appropriate level in

the organizational hierarchy
● To develop competitive spirit and inculcate the zeal in the employees
to acquire the skill, knowledge etc. required by higher level jobs.
● To develop competent internal source of employees ready to take up
jobs at higher levels in the changing environment.
● To promote employees’ self development and make them await their
turn of promotions. It reduces labour turnover.
● To promote a feeling of contentment with the existing conditions of
the company and a sense of belongingness.
● To promote interest in training, development programmes and in
team development areas.
● To build loyalty and to boost morale.
● To reward committed and loyal employees
● To get rid of the problems created by the leaders of workers’ unions
by promoting them to the officers’ levels where they are less effective
in creating problems.
● Promotion places the employees in a position where an employee’s
skills and knowledge can be better utilized.
● It creates and increases the interest of other employees in the
company as they believe that they will also get their turn.
● It creates among employees a feeling of content with the existing
conditions of work and employment.
● It increases interest in acquiring h9gher qualifications, in training and
in self development with a view to meet the requirements of
promotion.
● It improves morale and job satisfaction
● Ultimately it improves organizational health.
● Benefits of Promotion
● Promotion Principles:
● It should be consistent in the sense that policy should be applied
uniformly to all employees irrespective of the background of the
persons,
● It should be fair and impartial.
● Systematic line of promotion channel should be incorporated,
● It should provide equal opportunities for promotion in all categories of
jobs, departments and regions of an organization,
● It should ensure open policy in the sense that every eligible
employee should be considered for promotion rather than a closed
system,
● It should contain clear cut norms and criteria for judging merit, length
of service, potentiality etc.
● Appropriate authority should be entrusted with the task of making a
final decision, it should contain promotional counseling,
encouragement, guidance and follow-up regarding promotional
opportunities, job requirements and acquiring the required skills,
knowledge etc.
DEMOTIONS

Reasons:

● Unsuitability of the employee to higher level jobs

● Adverse business conditions
● New technology and new methods of operation
● On disciplinary actions

Demotion Principles:

● Specification of circumstances under which an employee will be

demoted like reductions in operation, indisciplinary cases.
● Specification of supervisor who is authorized and responsible to
initiate a demotion.
● Jobs from and to which demotions will be made and specifications of
lines or ladders of demotion.
● Specification of basis for demotion like length of service, merit or
both.
● It should provide for an open policy rather than a closed policy
● It should contain clear cut norms for judging merit and length of
service
● Specification of provisions regarding placing the demoted employees
in their original places if normal conditions are restored.
● Specification of nature of demotion, i.e., whether it is permanent or
temporary of it is as disciplinary action. It should also specify the
guidelines for determining the seniority of such demoted employees.

Transfers and
Separation
22 Dec 2019

TRANSFER
A transfer refers to lateral movement of employees within the same grade,
from one job to another. According to Flippo “a transfer is a change in the
job (accompanied by a change in the place of the job) of an employee
without a change in responsibilities or remuneration”.

Transfer differs from promotion in the sense that the latter involves a
change of job involving increase in salary, authority, status and
responsibility, while all these remain unchanged /stagnant in the case of
former. Also, transfers are frequent and regular whereas promotions are
infrequent, if not irregular.

There are some public sector organizations like Minerals and Metals
Trading Corporation (MMTC) who have entered into agreements, with
employees for creating two cadres of officers, namely. Local Officers and
All India Officers wherein promotions to and within the former are less
accelerated than in the latter, but do not entail transfer.

Need of Transfer-

The need for making transfer is left for various reasons as listed
below:

(i) To Meet Organisational Needs

Changes in technology, volume of production, production schedule, product

line, quality of products, organisational structure, etc. necessitate an
organisation to reassign jobs among employees so that right employee is
placed on the right job.

(ii) To Satisfy Employee Needs

Employees may request for transfer in order to satisfy their desire to work
in a particular department, place and under some superior. Personal
problems of employee like health, family circumstances, and interpersonal
conflicts may also necessitate transfer.

(iii) To Better Utilize Employee

When an employee is not performing satisfactorily on one job and

management thinks that his/her capabilities would be utilized better
elsewhere, he/she may be transferred to other job.
(iv) To Make the Employee More Versatile

In some organizations like banks, employees after working on a job for a

specified period are transferred to other job with a view to widen their
knowledge and skill and also reduce monotony. This is also called ‘job
rotation.

(v) To Adjust the Workforce

Work force can be transferred from the departments / plants where there is
less work to the departments/plants where more work is.

(vi) To Provide Relief

Transfers may be made to give relief to the employees who are

overburdened or doing hazardous work for long period.

(vii) To Punish Employee

Management may use transfer as an instrument to penalize employees

who are indulged in undesirable activities. As a disciplinary action,
employees are transferred to remote and far-flung areas.

Types of Transfer

(i) Production Transfer

Such transfers are made when labour requirements in one division or

branch is declining. The surplus employees from such division are
transferred to those divisions or branches where there is shortage of
employees. Such transfers help avoid lay off and stabilize employment.

(ii) Remedial Transfer

Such transfers are affected to correct the wrong selection and placement of
employees. A wrongly placed employee is transferred to more suitable job.
Such transfers protect the interest of the employee.

(iii) Replacement Transfer

Replacement transfers are similar to production transfers in their inherent,

i.e. to avoid layoffs. Replacement transfers are affected when labour
requirements are declining and are designed to replace a new employee by
an employee who has been in the organization for a sufficiently long time.
The purpose of these transfers is to retain long service employees in the
organization and also give them some relief from the heavy pressure of
work.

(iv) Versatility Transfer

These transfers are also known as ‘job rotation? In such transfers,

employees are made move from one job to another to gain varied and
broader experience of work. It benefits both the employee and
organization. It reduces boredom and monotony and gives job enrichment
to the employee. Also, employees’ versatility can be utilized by the
organization as and when needed.

(v) Shift Transfers

These transfers are affected in the organizations where work progresses

for 24 hours or in shifts. Employees are transferred from one shift to
another usually on the basis of mutual understanding and convenience.

(vi) Penalty Transfer

Management may use transfer as an instrument to penalize employees’

involved in undesirable activities in the organization. Employee transfer
from one’s place of convenience to a far-flung and remote area is
considered as a penalty to the employee.

SEPARATION

Employee separation is a sensitive issue for any organization. Usually, an

employee leaves the organization after several years of service. Thus, the
permanent separation of employees from an organization requires
discretion, empathy and a great deal of planning. An employee may be
separated as consequence of resignation, removal, death, permanent
incapacity, discharge or retirement. The employee may also be separated
due to the expiration of an employment contract or as part of downsizing of
the workforce. Organizations should never harass the employees,
especially in the case of resignation, just because they are quitting the
organiza-tion. In fact, a quitting employee of the organization must be seen
as a potential candidate of the future for the organization and also the
brand ambassador of its HR policies and practices. However, many
organizations are still treating their employees as “expendable resources”
and discharging them in an unplanned manner whenever they choose to
do so

Each organization must have comprehensive separation policies and

procedures to treat the departing employees equitably and ensure smooth
transition for them. Further, each employee can provide a wealth of
information to the organization at the time of separation. Exit interviews can
be conducted by the HR department to ascertain the views of the leaving
employees about different aspects of the organization, including the
efficacy of its HR policies.

Reasons for Separation of Employees

Employee separation constitutes the final stage in the staffing process of

an organization. An employee can leave the organization for any reason
which he deems fit for seeking separation. However, separation is
classified basically into two types. These are: voluntary separation and
involuntary separation. Voluntary separation refers to the separation of
employees on their own request, while involuntary separation means the
separation of employees for organizational reasons which are beyond the
control of the employees. We shall now discuss the causes of these
separations in detail.

(i) Voluntary Separation: Voluntary separation, which normally begins

after a request is placed in this regard by the employee, can happen due to
two reasons: professional reason and personal reason. We shall now
discuss these reasons in detail.

(ii) Professional reasons: Employees may seek separation when they

decide to seek better positions, responsibilities and status outside the
present organization. Efficient employees would seek to expand their realm
of knowledge and skills continuously by working in different
capacities/positions in various organizations. In their quest for greater
responsibility, power and status, they may seek separation from the
organization.
(iii) Personal reasons: The important personal reasons for voluntary
separation are relocation for family reasons like marriage of the employees
and health crisis of family members, maternity and child-rearing. For
instance, when working women get married, they often prefer to settle in
the partners place of occupation. Similarly, an employee may seek
voluntary separation to look after the child or parent.

(iv) Involuntary Separation: As mentioned earlier, an involuntary

separation is caused by the factors which remain beyond the purview of the
employees. However, these factors may be classified broadly into health
problems, behavioural problems and organizational problems. We shall
now discuss these factors in detail

(v) Health problems: Major health problems crippling the employees may
make them invalid or unfit to continue in the profession. For instance,
accidents causing permanent disabilities and illness of the employees like
brain stroke and other terminal illnesses can lead to their involuntary
separation. Death of employees is another factor which results in their
involuntary separation.

(vi) Behavioural problems: An employee’s objectionable and unruly

behaviour within the organization may also lead to his involuntary
separation from the organization. When the employees behaviour is
unethical or violates the code of conduct in force, the organization may
initiate disciplinary actions, which may eventually result in his termination.
This may constitute an act of involuntary separation. Consistent failure to
reach performance goals by an employee can also result in his involuntary
separation.

(vii) Organizational problems: Organizational problems are another

important factor that contributes to the involuntary separation of employees.
The poor financial performance of an organization may cause it to
terminate the services of some of its employees as part of cost control
measure. Such terminations are also classified as involuntary separation.
Similarly, automation, organizational restructuring and rationalization can
also result in employee termination, discharge or layoff, broadly called
involuntary separation.