The Concept of Best-fit Enployee

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THE CONCEPT OF BEST-FIT

ENPLOYEE



Journey of creating a successful

Organization³Million people think!

Thousand people talk!!

Hundred people move in the right direction!Ten people run the business!!

One successfully create world-class

company!´



Building a great organization

Types of Organizations

- Sick Organizations : 3-5yr s- Good Organizations : 10-20yr s

- Great Organizations : over 50yr s

Great organizations are for med by ordinary people with extra-ordinary deter mination.

Eg: Ford Company



Planning an organization and planning the

people

Role of HRM Department Five rights of a successful Business



Principles of Management Related

to HR

Principle of division of labour

Principle of unity of command

Principle of authority and responsibility Principle of decentralization



Evolution of Organization Structure

Period Type of Structure Focus

Pre 1880

1880-19201921-1960

1961-1985

1986-1995

Post 1995

Simple Structure

Functional StructureDivisional Structure

Matrix Structure

Process Structure

Network Structure

Inward

InwardInward

Inward

Customer (local)

Customer (Global)



Model 1 - Traditional Simple

StructureThe Simple Structure µHRM¶ in simple structure Organization

TCP

µCEO¶ Managed worker s directly

Period: pre 1880

No Hierar chy

CEO

Worker s

T ± Thinking

C ± ControllingP - Perfor ming



Model 2 ± Functional Structure

The Functional Structure µHRM¶ in functional structure organization

T

C

P

Hierar chy with three levels

Division of labour concept adopted,

function head came into existence

Period: 1880 to 1920

CEO

Function 1 Function 2

Function 3 Function 4



Model 3 ± Divisional Structure

The Divisional Structure µHRM¶ in Divisional structure organization

T

C

P


Companies diver sified to non core business

Division head came into existence


CEO

Division 1 Division 2

Division 3 Division 4

Board



Model 4 ± Matrix Structure

The Matrix Structure µHRM¶ in Matrix structure organization

T

Area

Product Area -1 Area -2 Area -3 T&C

Product -1

P

Product -2

Product -3


Companies grown in size,

reached multinational level


CEO



Model 5 ± Process Structure

The Process Structure

Fir m Infrastructure M

HRM a

r

Technology g

Procurement i

Services n

Inbound Operations Outbound Marketing &

logistics logistics Sales

Functional Focused Org

Process Focused Org

R&D Production Sales Finance

Customer

R&D Production Sales FinanceCustomer

CEO

PrimaryValue Chain

Support



Model -5 Process Structure

µHRM¶ practice in process structure organization

TCP

TCP

TCP

TCP done by all levels, organizations for ced to graduate from

partially customer focused approach to fully customer focused

approach



Model 6 ± Network Structure

The Network Structure HRM in Network structure

organization

T T T

c c c

p p p

team 1 team 2 team 3

No Hierar chy, team based

Period: Post 1995

CEO

Vendor -1

Vendor -2

Vendor -3

Core value

Addition

activities

Specialist -1

Specialist -2

Specialist -3

Outsour ce

Non-core

Manufacturing

functions

Insour ce core

manufacturing

& office functions

Outsour ce

Non-core Office functions



Factor s Influencing Organization

Structure Stability of the environment

Size

Culture (nor ms and values attached to work)

Internal labor market

Technology of operations Power



Human Resour ce Planning

E.W. Vetter viewed HRP as ³a process by which an organization should move fromits current manpower position to its

desired manpower position. Though planning management strives to have the right number and right kind of people at the right place at the right time, doing things which result in both the organization and the individual receiving maximumlong-run benefit´.



Objectives of HRP

Forecast per sonnel requirements

Recruit and retain HR

Cope with changes

Improve the standards, skill, knowledge ability,

discipline, etc.

To meet the needs of the programs of

expansion, diver sification, etc Use existing manpower productively

Promote employees in a systematic manner



Importance of HRP

Reservoir of talent

Prepare people for future

Expand or contract Cut costs

Succession Planning



Process of HRP

Forecasting the demand for HR

1. External Challenges

a) Economic developments

b) Political, legal, social and technical changesc) Competition

2. Organizational decisions ± Organizations

strategic plan, sales and production forecastsand new ventures must all be taken into account in employment planning.



3. Workfor ce factor s ± demand is modified by retirements, ter minations, resignations, deaths and leaves of

absence.

4. Forecasting techniques

Expert / Estimating techniques ±estimates HR requirements using experiences and judgments.



Trend analysis ± HR needs can be

estimated by examining past trends.

Aggregate models- this model is used based on several key variables that are

known to directly affect the organization¶s

overall HR needs.



5. Other methods

a) Workfor ce analysis ± The average loss of

manpower due to leave, retirement, death,

transfer, discharge, etc. during the last 5 yr smay be taken into account.

a) Work load analysis ± on the basis of work load

on the employees.

b) Job analysis ± helps in finding out the skill and

abilities required to do the job efficiently.



Preparing Manpower Inventory

1.Internal labour supply

- Staffing table- Markov analysis

- Skills inventory

- Replacement chart2.External labour supply



Deter mining manpower gaps

For mulating HR Plans

1. Recruitment plan

2. Redeployment plan

3. Redundancy plan

4. Training plan

5. Productivity plan6. Retention plan

7. Control plan



Methods of HRP

Long ter m HRP- deals with future vacancies

Short ter m HRP

- The weak incumbent ± where an existing

per sonnel is not perfor ming according to the specifications of the job.

- The strong incumbent ± where an employee have a greater ability than their present job

requires. So a portion of the individuals ability remains unutilized.

- An unexpected vacancy



HRP at different levels

HRP at lower level

HRP at plant level

HRP at the highest level



Responsibility of HRP

Assist and counsel operating manager s to plan and set objectives

Collect and summarise manpower data keeping

long-run objectives and broad organizational interests in mind

Monitor and measure perfor mance against the plan and keep top management infor med about

it Provide proper resear ch base for effective

manpower and organizational planning



Limitations of HRP

Accuracy ± Pro jecting manpower needs over a period of time is a risky one. Its not possible to track the current and future trends correctly and convert the same into meaningful action guidelines.

Support ± less support from top officials due to no immediate gains

Number s game ± HRP in the final analysis, may suffer due to an excessive focus on the quantitative aspects. The quality side may be discounted thoroughly.

(Quality side include ± motivation, morale, career prospects, and training avenues)



Effective HRP

Objectives

Top management support

Employee skills inventory HRIS

Coordination



Recruitment

According to Edwin B Flippo

³ Recruitment is the process of sear ching for

prospective employees and stimulating them to apply for jobs in the organization´



Objectives of recruitment

To attract people with multi-dimensional skills and experiences that suit the present and future organizational strategies

To induct outsider s with a new per spective to lead the company

To infuse fresh blood at all levels of the organization

To develop an organizational culture that attracts competent people

to the company To sear ch or head hunt people whose skills fit the companies values

To devise methodologies for assessing psychological traits

To seek out non-conventional development grounds of talent

To sear ch for talent globally and not just within the company

To design entry pay that competes on quality but not on quantum

To anticipate and find people for positions that do not exist yet



Pur pose and Importance of

recruitment Deter mine the present and future requirement of organization.

Increase the pool of job candidates.

Help increase the success rate of the selection process by reducing the number of obviously under -qualified job applicants.

Help reduce the retention rate.

Increase organizational and individual effectiveness in the short ter mand long ter m.

Evaluate the effectiveness of various recruitment techniques.

Start identifying and preparing potential job applicants who will be appropriate candidate.

Meet the organizations legal and social obligations regarding the

competition of its workfor ce.



Factor s governing recruitment

Factor s Governing Recruitment

External Factor s Internal Factor s

Demand Vs Supply

Unemployment Rate

Labor marketPolitical Factor

Legal Factor

Company Image

Recruitment Policy

Temporary & Part

Time employees

MNC¶s recruitmentOf local citizens

Org Size

HRP

Cost of recruiting



Methods of recruitment

Internal methods

1. Promotions and transfer s

2. Job posting3. Employee referrals

Direct Methods1. Campus recruitment



Indirect methods

1. Advertisements

a) Newspaper s ads

b) Television and radio ads

Third party methods

1. Private employment sear ch fir ms

2. Employment exchanges

3. Gate hiring and contractor s

4. Unsolicited applicants/walk-ins

5. Internet recruiting



Alternatives to Recruitment

Overtime

Subcontracting

Temporary employees Employee leasing

Outsour cing



Evaluation of the sour ces of

recruitment

Time lapse data

Yield ratio

Surveys and studies



Recruitment policies and

procedures

A recruitment policy indicates the

organizations code of conduct in this area of activity.



Example of a recruitment policy

Recruitment policy statement

In its recruitment activities, the company will:

1. Advertise all vacancies internally

2. Reply to every job applicant promptly

3. Infor m job applicants the basic details and job conditions of every jobadvertised

4. Process all applications with efficiency and courtesy

5. Seek candidates on the basis of their qualifications

6. Aim to ensure that every per son invited for interview will be given a fair and thorough hearing

The company will not:

1. Discriminate unfairly against potential applicants on the basis of sex, race, religion, caste, etc.

2. Knowingly male any false or exaggerated claims in its recruitment literature or job advertisements



Selection

Selection is the process of picking

individuals who have relevant

qualifications to fill jobs in an organization.

The basic pur pose is to choose the

individual who can most successfully

perfor m the job, from the pool of qualified

candidates.



Process of Selection

Reception

Screening Interview

Application Blank

Selection Testing

1. Intelligence tests

2. Aptitude tests

3. Per sonality tests

4. Achievement tests





Types of Interview

The non directive interview

The directive or structured interview

The situational interview The behavioural interview

Stress interview

Panel interview



Interview Process

Evaluation

Ter mination

Infor mation

Exchange

Reception

Preparation



Selection decision

Possible outcomes of a selection

decision:

1. True positive2. True negative

3. False positive error

4. False negative error



False positive error

False positive error incur s three types of costs:

1. Cost incurred while the per son is employed, and this isthe result of production or profit losses, damaged

company reputation, accidents due to negligence, absenteeism and the like.

2. Costs associated with the training, transfer or ter minating the services of the employee.

3. Costs of replacing generally the more important the job, the greater the cost of the selection.



False Negative Error

In this type an applicant who would have

succeeded is re jected because of predicted failure.

Cost difficult to estimate



Medical Examination

Whether the applicant is medically suitable for the specific job or not.

Whether the applicant has health problems or

psychological attitudes likely to interfere with work efficiency or future attendance.

Whether the applicant suffer s from bad health which should be corrected before he can work

satisfactorily. Whether the applicant¶s physical measurements

are in accordance with job requirements or not.



Principles of Placement

Job fir st, Man next

According to Qualifications

Should be made aware of the working conditions prevailing in the industry

While introducing the job to the new

employee an effort should be made to

develop a sense of loyalty and co-

operation in him.



Model Appointment Letter

XYZ Company Limited

Appointment Letter

Date«««««

Mr«««««««««..

««««««««««..

«««««««««««

Sub: Offer of appointment for the post of ««««««..Dear Sir,

1. With reference to the interview test you had with us on««««..we have pleasure in offering you the post of««««..on the following ter ms and conditions.

2. Your continuation/confir mation of appointment will be subject to satisfactory verification of your credentials/character and antecedents.

3. Your pay will be Rs«««per month in the scale of Rs«««..plus D. A. Rs«««« and H.R. A. Rs««« as adminissible from time to time under the Company¶s rules.

4. Your appointment will be temporary for a period of 12 months from the date of your joining and this period may be extended, if considered necessary by the company. You will be deemed asconfir med in your appointment only if you are intimated to that effect in writing.

5. You have to obtain a satisfactory report of physical fitness from the Company¶s Medical Officer before joining duty.

6. During your employment you will be governed by the Standing Order s, Rules and Regulationsof the service of the Company that are in for ce and which may be amended, altered or extended from time to time in respect of worker s.



7. The under mentioned documents enclosed, shall be duly filled in and submitted before joining duty:

(i) Gratuity Nomination For m

(ii) Provident Fund For m

(iii) Per sonal Data For m

8. Your duties and responsibilities will be such as may be specified from time to time by the Management, such duties being inclusive of all duties and responsibilities relating to your substantive and other grades/designations depending upon the exigencies of work.

9. If the above ter ms and conditions are agreeable to you, please sign and return the duplicate copy of this letter and the Appendix µA¶ in token of your acceptance of the appointment. You should report for duty on or before««««. At your own expense, failing which the offer made to you automatically stands cancelled.

Your s faithfully,



Induction/Orientation of an

employee

Welcomed

Helped to get acquainted with employees

and working conditions.



Elements of Induction Program

Introductory infor mation

On the job infor mation

Follow up interview



Objectives of Induction Program

Fir st impression is the best impression

Build confidence of the employee in the organization

Providing infor mation about the company and facilities provided.

Introducing the employee to the supervisor s and fellow worker s

Creating a sense of security for the worker in his

or her job by impressing the idea that fairness to the worker is the inherent policy of the organization.



Induction practices

Induction guide

Counseling

Follow up Interview



Models of Recruitment and

Selection

The Internal model

The External model



Traditional model of recruitment

and selection

No

Yes

No

Yes No

Vacancy arises

Do we need

to fillEnd

Draft job description

Draft per sonnel specification

Shortlist applicants

Interview applicants

Select candidate

Offer accepted

Take up references

Appoint?Engage and induct



Central features of the traditional

recruitment and selection model

It is geared to fill specific job vacancies

The process continues with the production of a job description, either using or updating a

previous one. Recruitment is through advertising but with

significant usage of agencies and word of mouth

A limited number of selection methods are used

It concludes with offer /re ject letter s and candidate acceptance/re jection with, increasingly, some negotiation of ter ms.



Limitations of traditional recruitment

model

Directed towards fitting people to available

jobs

Static and reflects the status quo

Over -reliance on interviews and

references may also impact adver sely on

the reliability and validity of selection

decisions.

R it t & S l ti



Recruitment & Selection

contributing to organizational

change Shift from reactive nature to proactive

nature.

Concentrates on fitting the job to the per son rather than the per son to the job.

Selection against core competencies or

skills rather that the broad demands of a specific job.



Strategic context of recruitment and

selection

Fir st level strategy ± upstream fir st order

decisions

Second level strategy ± downstream

second order decisions

Third level strategy ± downstream third

order decisions



E-Recruitment

Time-to-hire

Cost-to-hire

Quality-of -hire Reducing dependencies on external

agencies



Trends in E-Recruitment

Reasons to pur sue e-recruitment:

Improve cor porate image and profile

Reduce recruitment costs

Reduce administrative burden

Employ better tools for the recruitment

team



Trends in E-Recruitment

Limitations of E-Recruitment:

The culture approach of the organization towards recruitment

The lack of knowledge of e-recruitment within HR community

Internet usage by target candidates

Commitment of senior management

Quality and Quantity of candidates applying

using web-based tools. Relevance of short listing criteria

Confidentiality and data production



E-Recruitment Methods

Advertising job opening

Tracking the sour ce of applications

Online enquiry for ms



Evaluating Impact

Cost of recruitment and selection activities

Time taken to fill

Volume/yield

Diver sity and legal compliance

Candidate and employer satisfaction



Advantages of E-Recruitment

A click on the mouse presents n number of job sites to the candidate

It reduces the cost by 95% of the

traditional recruitment It reduces the time from nor mal 43 days of

traditional recruitment to just a few days

It presents the list of job opportunities to the candidate when he submits details of his/her skill set



It shortlists the candidates by matching the candidate¶s qualifications, skills, etc with those of skills and the right competencies inbuilt in the software

It also prepares interview schedules and communicates the same to the candidates

It streamlines the entire recruitment process for a given time and unlimited job recruitments

The number of people required for handling of applications are reduced drastically

Documents

The Concept of Best-fit Enployee