TM Unit 3

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BSA-CET UNIT-III TM

Recruitment and Selection Process: Introduction, Sources of Recruitment, Use of Assessment Centers, Selection
Errors & Minimizing Selection Errors, Reliability & Validity of Selection Tests, Choosing suitable types of
Interviews, Formulating a recruitment strategy for senior level executives. Employee Engagement: Process and
outcomes of Employee Engagement, Ways of Achieving Employee Engagement; Talent Development: Need
Analysis, Knowledge Management, Competency Development and Developing Leadership Talent. Case
Studies
Recruitment and Selection
Recruitment and Selection is an important operation in HRM, designed to maximize employee strength in order
to meet the employer’s strategic goals and objectives. In short, Recruitment and Selection is the process of
sourcing, screening, short listing and selecting the right candidates for the filling the required vacant positions.
RECRUITMENT
Recruitment is the process of searching for prospective employees for job vacancies in the organization and
stimulating them to apply for the same. It is the process of bringing together those who are offering jobs and
those who are seeking jobs. Recruitment is a positive process where a pool of prospective employees is created.
It provides a base for the selection process.
According to Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating
and encouraging them to apply for jobs in an organization.”
FEATURES OF RECRUITMENT
1) It is a Process- Process includes a number of steps. Recruitment also consists of series of activities.
2) Positive Function- It aims at increasing the application pool, which can serves as a good base for
selection.
3) Pervasive Function- All type of organization is engaged in Recruitment function.
4) Two-way Process- It is a two way process as it involves recruiter & job seeker. Recruiter chooses right
person for the job vacancy. Job seeker also chooses right job for him/ her.
5) Complex Process- Recruitment is affected by many factors like company Image, compensation, nature of
job, government policies etc.
PURPOSE & IMPORTANCE OF RECRUITMENT
1) To determine the present & future requirements of the organizations related to personnel planning & job
analysis activities.
2) Increase the pool of job candidates with minimum cost.
3) To help in increasing the success rate of selection process by reducing number of over-qualified & under-
qualified candidates.
4) To meet the social & legal obligations of the organization.
5) To help in reducing the probability that job applicants one recruited will leave the organization only after a
period of time.
FACTORS AFFECTING RECRUITMENT PROCESS
The various factors affecting recruitment are categorized below-
1) External Factors
2) Internal Factors
1) EXTERNAL FACTORS- These are those factors which are related with the environment outside the
organization. It includes-
a) Demand & Supply of Specific Skills in Labor Market- The demand for highly skills people like
highly qualified programmers & financial analysts is more than its supply. The supply of unskilled labor
is more than its demand.
b) Political Factors- Various political factors such as government policies, reservation in recruitment etc
affects the recruitment.
c) Legal Factors- Government enact various laws that affects recruitment like child labor (Prohibition &
Regulation) Act, 1986 which regulates the recruitment & employment of child in a establishment.

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BSA-CET UNIT-III TM
d) Socio-Cultural Factors- Various Socio-Cultural factors affect the recruitment. For example- The
society where employment of women is not acceptable, the recruitment for women employee can’t be
published.
2) INTERNAL FACTORS- These factors are those factors which are related with the organization. It
includes-
a) Organizational Image- The image of organization depends on various factors like working policies
that organization is adopting, retirement benefits, working environment, compensation, fringe benefits
etc. if an organization has good image, it is quite easy for the organization to attract maximum number
of workers, vice-versa.
b) Size of the organization- An organization with large number & highly talented of employees will
attract more people. Small organization is not able to attract highly talented person as compare to large
organization.
c) Promotion & Retirement Policies- Many organizations have good promotion opportunity &
retirement benefits which attracts large number of people.
d) Compensation- The Company that offers good amount of compensation can easily attract good quality
& quantity of people.
e) Growth & Expansion Policies- The organization which have more opportunities for growth &
expansion is able to attract more applicants.
PROCESS OF RECRUITMENT
1) RECRUITMENT PLANNING- This is the first step of Recruitment process. In this decision related
with type & number of human resource required in the organization is taken.
2) SELECTION OF SOURCES- As per the need of organization, sources of recruitment is selected.
Whether to go with internal sources or external sources or both, this is decided in this step.
3) CONTACTING SOURCES- The message or information which will be communicated to job applicants
is decided before contacting sources of recruitment. After this, the selected sources are contacted &
information about job vacancy is published.
4) APPLICATION POOL- After contacting sources, applicants started receiving applications from
candidates for published job vacancy. These applications are pooled which acts as a bases for selection.
5) EVALUATION & CONTROL- this is the last step of recruitment process. It involves analyses of the
fact that whether the recruitment process has achieved its objective which is to attract maximum number of
job applicants in the light of cost & time.
SOURCES OF RECRUITMENT
The eligible and suitable candidates required for a particular job are available through various sources. These
sources can be divided into two categories-
(A) Internal Sources of Recruitment:
1) Promotions:
It refers to shifting of an employee to a higher position carrying higher status, responsibility & pay. The
job vacancy can be filled by promoting a capable employee. This motivates an employee too.
2) Retirements:
The retired employees may be given the extension in their service in case of non-availability of suitable
candidates for the post.
3) Former employees:
The employees who has left our organization are called as Former employees.
Former employees who had performed well during their tenure may be called back, and higher wages and
incentives can be paid to them.
4) Transfer:
Transfer means shifting of an employee from one job to another without any major change in the status,
responsibility & pay of the employee. Employees may be transferred from one department to another
wherever the post becomes vacant.
5) Internal advertisement:

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BSA-CET UNIT-III TM
Other name of internal advertisement is Job-Posting. The existing employees may be interested in taking up the
vacant jobs. As they are working in the company since long time, they know about the specification and
description of the vacant job. For their benefit, the advertisement within the company is circulated so that the
employees will be intimated.
Benefits of Internal Sources of Recruitment:
1. The existing employees get motivated.
2. Cost is saved as there is no need to give advertisements about the vacancy.
3. It builds loyalty among employees towards the organization.
4. Training cost is saved as the employees already know the nature of job to be performed.
5. It is a reliable and easy process.
Limitations of Internal Sources of Recruitment:
1. Young people with the knowledge of modern technology and innovative ideas do not get the chance.
2. The performance of the existing employees may not be as efficient as before.
3. It brings the morale down of employees who do not get promotion or selected.
4. It may leads to encouragement to favoritism.
5. It may not be always in the good interest of the organization.
(A) External Sources of Recruitment:
1. Press advertisement:
A wide choice for selecting the appropriate candidate for the post is available through this source. It gives
publicity to the vacant posts and the details about the job in the form of job description and job
specification are made available to public in general. For this purpose advertisement is given in
newspapers & Magazines.
2. Campus interviews:
It is the best possible method for companies to select students from various educational institutions. It is
easy and economical. The company officials personally visit various institutes and select students eligible
for a particular post through interviews. Students get a good opportunity to prove themselves and get
selected for a good job.
3. Placement agencies:
A databank of candidates is sent to organizations for their selection purpose and agencies get commission
in return.
4. Employment exchange:
People register themselves in government employment exchanges with their personal details. According to
the needs and request of the organization, the candidates are sent for interviews.
5. Walk in interviews:
These interviews are declared by companies on the specific day and time and conducted for selection.
6. E-recruitment:
Various sites such as jobs.com, naukri.com, and monster.com are the available electronic sites on which
candidates upload their resume and seek the jobs. Now a days, online job portals is used at wide level as
source of recruitment.
7. Competitors:
By offering better terms and conditions of service, the human resource managers try to get the employees
working in the competitor’s organization.
8. Unsolicited Applicants- This method is also known as unsolicited applicants. Candidates send their
Resume to their organization without any publishment of any job vacancy. The organization compile all
such Resume or applications, & call the appropriate candidates out of collected Resume or applications
whenever job vacancy arise.
9. Labour-Contractor- Workers, mostly for construction work, can be recruited through the contractor
who has close contact with such source of workers. The major disadvantage of this method is that when
contractor leaves the organization, workers appointed by it also leave.
10. Gate Hiring- This method is used for recruitment of unskilled or semi-skilled worker. The organization
post vacancy for them at factory gate. Those who are interested can apply for job vacancy.

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BSA-CET UNIT-III TM
11. Employee Referral- In some organization, employee recommend the name of their relatives, family
members, friends & other known person for job vacancy. The organization gives preference to these
people & select them if they are suitable for job.
Benefits of External Sources of Recruitment:
1. New talents get the opportunity.
2. The best selection is possible as a large number of candidates apply for the job.
3. In case of unavailability of suitable candidates within the organization, it is better to select them from
outside sources.
Limitations of External Sources of Recruitment:
1. Skilled and ambitious employees may switch the job more frequently.
2. It gives a sense of insecurity among the existing candidates.
3. It increases the cost as advertisement is to be given through press and training facilities to be provided
for new candidates.

EVALUATION OF SOURCES OF RECRUITMENT


Following bases can be used to evaluate sources of recruitment-
1) TIME-GAP – If the time gap between personnel requirement & its fulfilment is less, it can be said that the
source is good.
2) COST PER HIRE- The cost per hire of sources of recruitment is calculated. If it is less. It can be
considered as good source.
3) Employee reaction towards different sources of recruitment is observed. The source towards which
employees react negatively can’t be a good source as the negative reaction of employees depicts that
applicants won’t like to apply from that source.

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BSA-CET UNIT-III TM
4) The number of employees selected from a particular source left the organization in a definite time period,
this calculation can also be used to evaluate source of recruitment. To calculate this, employee selected from
particular source divided by the total number of applicant.
RECRUITMENT POLICY
Recruitment policy is the action guideline for the HR Department related with recruitment. The recruitment
policy may cover the following areas-
1) Should the recruitment be centralized or decentralized? This is important for those organizations who have
more than one unit.
2) The degree of emphasis that would be placed on recruiting from inside the organization or outside the
organization.
3) The weightage that would be given to certain categories of people such as local population, physically
handicap etc.
4) The degree of flexibility with regard to age, gender, qualification, compensation & other service condition.
5) The personnel who would be involved in recruitment process & the role of H.R. Department in this regard.
6) The budget for meeting the expenditures incurred in carrying out recruitment process.
FORMULATING A RECRUITMENT STRATEGY FOR SENIOR LEVEL
EXECUTIVES
Executive level posts are often challenging to recruit. These posts are quite important for the organization as
the persons who occupies these posts are responsible for taking important decisions that affect the working &
efficiency of organization.
Before formulating a recruitment strategy, it is required to have-
 Approval to appoint
 Job Description
 Person Specification
1. Define Recruitment Parameters
Before formulating any recruitment strategy for senior level executive, it is required to have approval for the
vacancy.
During Formulation of Recruitment Strategy, major parameters are set out related with following are taken-
 Recruitment will be done In-House or Out-House.
 The intensity of HR support is required to manage recruitment process.
 Timing for closing date to send application for job vacancy.
 Interview date and final panel dates for the role,
 Selection of media like print media or online advertising or both.
2. Create the candidate pack
After deciding the parameters of recruitment strategy, a candidate pack is prepared. Candidate pack contains
the information related with what a company is looking for, and information related with job description and
job specification for the role. In this, additional information about your organization, the department and
the remuneration package can also be added.
3. Take briefings
Before publishing the job opportunity, it is required to hold a brief discussions with the line manager and
other relevant stakeholders who have a clear understanding of the role and its objectives. If any required
change or modification is suggested in candidate pack, it must be considered.
4. Take approval- At last take approval of top level management on the formulated policy for its
implementation.
SELECTION
Employee Selection is the process of picking up or choosing the right candidate, who is most suitable for a
vacant job position in an organization. Management selects the right person for the right job from application
pool. It is a core function of Human Resource Management.
In others words, selection can also be explained as the process of interviewing the candidates and evaluating
their qualities, which are required for a specific job and then choosing the suitable candidate for the position.

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The selection of a right applicant for a vacant position will be an asset to the organization, which will help the
organization in reaching its objectives.
According to Dale Yoder, “Selection is the process in which candidates for employment are divided into
two classes those who are offered employment & those who are not”.
IMPORTANCE – Selection plays several important role in success of organization. These includes-
1) It helps in choosing the most suitable person.
2) It helps in reducing turnover & absenteeism.
3) It helps in increasing efficiency & productivity of the organization.
4) It helps in providing job satisfaction to the employee.
5) Selection of right candidate for right job contributes in increasing morale of candidate.
PROCESS OF SELECTION-
1) Preliminary Interview- The preliminary interview is generally taken for executive jobs. In this totally
unsuitable candidates are eliminated. Lack of certain requirements in education, training or experience may
determine unsuitability. The candidates who clear the interview are asked to fill application blank. But it is
not followed in selection process of all companies.
2) Screening of Application Forms: Job applicants are asked to fill application form or blank & to fill the
details mentioned therein. The application form should be simple as possible.
These application forms contain information about the applicants such as personal bio-data, achievements,
experience, etc. This kind of information is utilized in order to get the right candidate, who is eligible for
the vacant position.
It can also be used for maintaining a permanent record of the candidates who are selected.
After screening all the applicants, only those candidates are allowed for further selection process, who are
meeting the job requirements and the standards set by the organization. In case, the candidates matching the
job requirement are more than the vacant positions, organization goes only for few chosen candidates for
further selection process.
3) Selection Tests: Every organization has its own rules for the selection process. Some organizations
conduct selection test to know more about personality, intelligence, interest etc. about candidate and the
candidates who qualifies it are allowed to move to next step of selection process that is interview.
4) Selection Interviews: Selection tests are followed by a personal interview with the candidate. The main
purpose of a personal interview is to fully evaluate the candidate for the job. It also gives a chance to the
candidate to gain information about the organization.
5) Medical Examination: Medical Examination is carried out to ascertain the physical standards & fitness
of prospective employees. Some organization don’t carry physical examination at all. Some only have
general check-ups of applicants to find out the major physical problems.
6) Reference Check and Background Verification: Selection procedure includes this step of a reference
check and background verification for the purpose of bringing out more information regarding the
candidate. Organizations request the candidates for some references from whom they can gain some more
information. This information may be concerned with their background, character, working, etc. These
references may include ex-employers of the candidate, people from educational institutions of the
candidate, or some other important people who know the candidate's attitude and skills.
7) Hiring Decisions or Approval by Appropriate Authority: Finally, based on the above steps, the
appropriate candidates are recommended for selection by the personnel department or selection committee.
However, the personnel department or selection committee may hold the responsibility of finalizing the
candidates for the job; sometimes organizations have their own staff to recommend the candidates for final
selection by the top management. Generally, organizations’ assign different authorities to approve the final
selection of candidates. On receiving the approval, the candidates are told about their selection in the
organization, and are requested to report to the concerned personnel.

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BSA-CET UNIT-III TM
SELECTION TEST
1) Intelligence Test- These tests are mental ability test & are conducted to judge mental ability of job
applicant. Mental ability means the ability to understand instructions & to take decision. These test
generally includes verbal comprehension, speed of perception etc.
2) Interest Test- it is also known as Motivation Test. It is designed to discover a person’s area of interest and
to identify the kind of job that will satisfy the job applicant.
3) Situational Test- These tests are conducted to see how a job applicant reacts to a real life situation.
4) Personality Test- These tests are conducted to know about the personality of an individual whether the
personality of job applicant is introvert or extrovert, feeling or sensing etc.
5) Achievement Test- this test is also known as Performance Test or Trade Test or Occupational Test.
Achievement is concerned with what a candidate has accomplished when he claims that he has done certain
things then these achievement test may be conducted to know how well the candidate know these.
RELIABILITY & VALIDITY TEST: TESTING CONCEPTS
Reliability Of Selection Test: It denotes the uniformity of the selection test. Any test is said to be reliable only
if it is consistently producing the same results.
For example, with an unreliable test, an individual may score high at one event and very low on the other, even if
both the events are mutually close in time.
Types of Reliability
Reliability can be measured through a number of ways. Some of them are as follows:
i) Test-Retest Reliability: This is the most popular method to test the reliability of a selection technique or
test. In this case, candidate(s) are made to undergo certain test more than one time, and if the variation between the
Scores is less, then the test procedure as well as the test itself can be termed as reliable.
ii) Alternative-Form Reliability: This is another important method of judging the reliability of a selection
method. In this technique, candidates are made to undergo through two alternative ways of the same test.
For example, wordings of question is changed, sequence of option as well as questions is changed, etc. If the
candidate does not have great mismatch between the two scores, the test and scores are said to be reliable.
iii) Inter-Rater Reliability: It is applicable on the tools that are dependent on the judgments of certain people,
i.e., interview and assessment centers. Here the reliability comes if the rating given to a candidate is commonly
agreed by all the members of the panel.
For example, in a panel or group interview of a candidate, all the interviewers should agree on almost common
rating of candidates' educational, professional and experiential competence.
Inter- rater reliability is much popular in assessment centers, where there are number of raters who assess
competence of a candidate in various situations.
VALIDITY OF SELECTION TEST
Validity of a test is an important element, as it is a measure to the degree to which the test evaluates for what it is
supposed to evaluate. A selection test is should be valid because validity provides a logical and legally accepted
reason to carry-out the test for the screening of the job applicants.
A test must be valid under a specific situation and for a definite group of people. Therefore, a test is said to be valid
when it is capable of measuring the factors, for which it is designed.
Types of Validity
Different types of validity are listed below:
 Criterion-Related Validity: This validity is derived by comparing scores of candidate obtained from
selection test and rating given on the basis of actual performance on the job. If not much difference is there
between both the ratings, the test is said to be valid. Doing this also helps an organization in evaluating the
effectiveness of selection methods used by them. But certain other types of criteria related to work such as the
duration of a job and time or capacity to complete a training course can also be considered.
 Construct Validity: This validity analyses the selection method, whether it really calculates the factors
for which it has been designed or not. For example, critics say that instead of measuring real skills or
competence, 'role plays' actually measure the acting ability of candidate. In the same way, one can say that
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'closed book' examination simply evaluates a person's retaining power or capacity of handling high pressure
situations, instead of measuring knowledge or aptitude.
 Content Validity: It simply determines whether all the characteristics of a particular range in a certain
domain have been tested. For example, during role play activity, whether all the aspects of a competence have
been measured or not, like in case of 'customer service', range of characteristics includes questioning, empathy,
thinking about the Requirements of different groups, etc.
 Ability to Generalize: Applicability of a generalized method is not limited to the conditions in which it
evolved; rather it is also applicable to other organizations, jobs, applicants, etc. So it can be said that the
efficiency of a selection method can be understood by assessing whether this method is applicable only in one
context or in many other contexts as well.
 Utility: It refers to the economic gains achieved by using certain selection technique. This fundamental
formula deals with the calculation of rise in revenue due to the use of the selection technique after deducting the
cost incurred in adoption of the technique. Good utility needs less selection ratios and so, it is related to the
competence of the organization to inspire a great number of competent candidates for each position that they need
to recruit for.
Some possible reasons for a test not being reliable are the following:
 Test taker’s temporary psychological or physical state. Test performance can be influenced by a
person’s psychological or physical state at the time of testing. For example, differing levels of anxiety,
fatigue, or motivation may affect the applicant’s test results.
 Environmental factors- Differences in the testing environment, such as room temperature, lighting,
noise, or even the test administrator, can influence an individual’s test performance.
 Test form- Many tests have more than one version or form. Items differ on each form, but each form is
supposed to measure the same thing. Different forms of a test are known as parallel forms or alternate
forms.
These forms are designed to have similar measurement characteristics, but they contain different items.
Because the forms are not exactly the same, a test taker might do better on one form than on another.
 Multiple raters- In certain tests, scoring is determined by a rater’s judgments of the test taker’s
performance or responses. Differences in training, experience, and frame of reference among raters can
produce different test scores for the test taker.
THE SCOPE OF RECRUITMENT AND SELECTION
The scope of Recruitment and Selection includes the following operations:
 Dealing with the excess or shortage of resources
 Preparing the Recruitment policy for different categories of employees
 Analyzing the recruitment policies, processes, and procedures of the organization
 Identifying the areas, where there could be a scope of improvement
 Streamlining the hiring process with suitable recommendations
 Choosing the best suitable process of recruitment for effective hiring of resources
Any organization wants it future to be in good and safe hands. Hence, hiring the right resource is a very
important task for any organization.
ASSESSMENT CENTERS
In assessment center participants engage in a variety of exercises and their performance evaluated by multiple
assessors. It is a process used to make personnel decisions.
The goal of an assessment center is to simulate job tasks so that an applicant can demonstrate skills or
characteristics that would be effective on the job.
According to the International Task Force on Assessment Center Guidelines, assessment centers:
 Classify participants’ behaviors into meaningful and relevant categories.
 Involve multiple assessment techniques, such as tests, interviews, questionnaires and simulations
 Allowing opportunities to observe the candidate’s behavior related to each competency/dimension being
assessed
 Utilize several assessors to evaluate each participant
 Employ thoroughly trained assessors

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 Provide a means for assessors to record their observations of participants’ behavior as it occurs
 Involve the preparation of an assessor’s report.

Behavioral dimensions frequently measured in assessment centers include planning and organizing, leadership,
oral communication, tolerance for stress, and initiative.
Activities used in Assessment Center are-
 In-basket exercises, in which participants respond to a series of administrative problems that simulate
typical managerial tasks
 Leaderless group discussions, in which a group of participants without an assigned leader must arrive at a
group solution to a specified problem within a given time period
 Role-plays, in which participants are involved in a simulation of a situation that could occur on the job
 Interviews, in which participants typically are questioned about how they have handled particular work
situations in the past and how they would respond to specific work situations in the future
 Management games, in which participants must work cooperatively to meet mental or physical challenges

USES OF ASSESSMENT CENTER


Employee selection decisions (hiring and promotion) can be done by use of assessment center. The emphasis is
on identifying participants who do well on essential job performance dimensions.
Training and development needs can also be identified by use of assessment center. The focus is on identifying
participant deficiencies on critical job dimensions. The feedback and employee development suggestions that
result from an assessment form the basis for training programs that are designed to correct performance
problems.
The most common use of assessment centers is to evaluate participants’ managerial potential.
Objectives of Assessment Centers
The different objectives behind establishing the assessment centers are described below:
1) Immediate Objectives
i) Filling the vacant positions in the organization in the near future and to ensure that these positions are filled by
competent individuals.
ii) Improving the competencies and skills of all the important groups of managers with the help of providing
information about their competencies and the difference in the actual and desired competency and facilitating
them with the platform of improving their competencies at the same time.
2) Long-Term Objectives
i) Developing a method of competency assessment and to propagate the culture of competency Improvement
which will facilitate the improved competency of the organization while maintaining
World class standards,
ii) Developing the competencies of different teams, units, and individuals so that they can be converted Into
effective and efficient workers,
iii) Avoiding any kind of prejudices in assessment and making sure that right kind of candidates are Positioned
on right jobs.
iv) Ensuring right kind of employees at right profiles and fully utilizing employee's potential by identifying and
developing it to the fullest possible extent.

ADVANTAGES OF ASSESSMENT CENTERS


 The main advantages of assessment centers are described below:
 Develops Participants: Organizations are not only assisted in positioning right employee for the right job or
profile but are also supported in the development of the participants through assessment and development
centers. The credibility of selection process can be improved significantly when an employee analyses his
performance after observing other employees doing the same task in different manner.
 Offers Valuable Feedback: The different types of feedback about the requirements of training and
development can be provided to the examiners.
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 Provides Unbiased Method of Assessment: The different logic of layman can be addressed by it and
thus it is treated as one of the most unbiased methods of evaluation by the members.
 Supported by Management: The support of management can be gained as various managers and
supervisors can be actively involved in the different activities.
 Provides Training: The training to the participants can be provided even though the main objective of
assessment centers is to help in selection process. In fact, training is also provided to the assessors which are
beneficial to the firm.
 Greater Validity: The various methods which are used for predicting the performance lag behind
assessment centers in terms of validity coefficient. This is due to the fact that this method reproduces the actual
job challenges and appraises the candidates on this basis.
 Minimizes Business Costs: By identifying different persons having capabilities and skills for hiring,
promotion or training, the business costs are minimized significantly.
DISADVANTAGES OF ASSESSMENT CENTERS
The major disadvantages of assessment centers are stated below:
 Time-Consuming and Expensive: These types of centers are very expensive and require lot of time.
 Needs Highly Skilled Observers: There is a requirement of highly skilled observers in this system so as
to avoid the entry of their own perception and judgments in the evaluation process.
 Results in Demonization: The individuals who are evaluated negatively can show the signs of de-
motivation and thus can question their own abilities.
 Difficult Standardization: It is not possible to use the same method in each and every organization, in
varied situations and time
SELECTION ERRORS
Selection Errors and Minimizing Selection Errors
Here are the top selection errors that must be avoided-
1) Projection- This error arise when interviewer expects his own knowledge, skills & values to be present in
job applicant. If such similar qualities not found interviewer provides poor rating to job applicant.
2) Leniency- When interviewer assign high score to job applicant in comparison of his performance during
steps of selection process, this error occurs. The main reason behind this error is considered that the rater
has less interest in rating or lack of confidence.
3) Halo Effect- When a single prominent positive character of candidate affects the judgement of
interviewer, halo effect error occurs.
4) Horn Effect- When a single prominent negative character of candidate affects the judgement of
interviewer, halo effect error occurs.
5) Personal Bias- When interviewer selects job applicant because of some personal reasons out of pool of job
applicant, this is said to be in personal bias or favoritism.
6) Central Tendency- The interviewer provide average rating or score to all job applicants.
7) Stereotype- This error arise when the interviewer believes on the association between type of personality
& a particular trait.

MINIMIZING SELECTION ERROR


1. Wait 30 Minutes- In the case of interviewing, wait for at least 30 minutes after the interview starts before
concluding if the person is a possible hire or not. This forced delay will minimize the impact of first
impressions. After 30 minutes you’ll discover the good aren’t as good as you thought, and the bad aren’t as
bad.
2. Don’t Give Anyone on the Hiring Team a Full Yes Or No Vote- Factors like technical ability,
leadership, motivation, problem-solving, and cultural fit are analyzed during interview. Instead of assigning
each interviewer all of the factors to assess, each interviewer should be given only 2-3 factors to analyze.

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BSA-CET UNIT-III TM
3. Ask People You Like Tougher Questions- When interviewer like a candidate, he naturally ask soft
questions, and ignore or minimize negatives. To overcome this natural tendency, the interviewer should ask
tougher questions to have more & detailed knowledge about person’s accomplishments.
4. Don’t conduct short interviews- It is quite difficult and judgmental to assess a Candidate’s potential in
few minutes. To avoid this, conduct a panel interview with 2-3 people for about 60-75 minutes.
5. Conduct phone interviews first- Conduct a 30-minute detailed telephonic interview before meeting the
person for face-to-face interview. Review of person’s work-history, ask about major accomplishment etc.
This will not only indicate the person is a strong match for the job, but also minimize the impact of first
impressions when the interviewer actually meets the interviewee.
INTERVIEW
An interview is a method used for selection purpose, which allows an employer to view the overall personality of
an individual and openly review his behavior. Interview is a mode of making face-to-face contact in order to
acquire a basic idea about the personality of an applicant identifying his intelligence, span of interests, and
general attitude towards life.
According to Scott, "An interview is a purposeful exchange of ideas, the answering of questions and
communication between two or more persons".
The main purpose of a personal interview is to fully evaluate the candidate for the job. It also gives a chance
to the candidate to gain information about the organization.

TYPES OF INTERVIEW
1) Informal Interview: An informal interview can be conducted at any place by HR personnel to obtain the
fundamental and non-job related information.
2) Unstructured Interview: An unstructured interview provides freedom to the candidates so that they can
reveal about their knowledge in various topics/fields, their background, expectations, interests, etc. Likewise, the
interviewer is also allowed to share information on various topics enquired by the candidate.
3) Formal and Structured Interview: Formal and structured interviews strictly follow all the formalities and
procedures related to conducting of interview such as determination of value, time, panel of interviewers,
opening and closing, informing the candidates officially, etc. They are pre-planned and organized, based on job
requirements.
4) Background Information Interview: These interviews are aimed at gathering the information which
cannot be obtained through the application form. It is also used to verify the information which is collected
through the application form such as educational background, domicile, family, health, interests, hobbies, likes,
dislikes, extracurricular activities, etc. of the applicant.
5) Stress Interview: Stress interview is designed for evaluating the candidate's behavior on the job and the
survival level during the time of pressure or stress, i.e., his pressure handling capacity. In this kind of interview,
the candidate is put to aggressive, apathetic or threatening situations, whose objective is to demoralize the
candidate and check his ability to deal with difficult situations.
6) Panel Interview: Panel interviews include a panel of specialists to interview each and every candidate,
evaluate their performance separately and to form a combined decision on the basis of evaluation by every
specialist and by way of giving weightage to each factor.
7) Group Interview: Group interview is a special situation for interviewing a candidate where numerous
candidates are called for interview at the same time. For example, in cases, where there are a large number of
candidates for interview on the same day, group interview facilitates the interviewers with a capability to
evaluate a large number of candidates. It is also a time-saving tool for the organization. Group interview also
provides an opportunity to evaluate the behavior of a candidate in a group.
8) Job and Probing Interview: Job and probing interviews are mainly designed for evaluating the candidate's
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BSA-CET UNIT-III TM
knowledge with respect to the duties, functions, job methods, critical problems, ways to resolve those problems,
etc.
9) Depth Interview: Depth interviews are the type of interviews in which a candidate is evaluated mainly in the
core areas of knowledge and skills of the job. Candidates are evaluated by the experts in their respective fields by
putting up appropriate questions in order to obtain significant responses from them while initiating the discussion
pertaining to some problematic areas of the job, and by asking them to describe even minute activities of the job
performance.
10) Decision-Making Interview: Decision-making interview is another kind of interview taken by concerned
departmental head. Generally, this kind of interview is conducted through informal discussion. The HR manager
is also supposed to take an interview of the candidate in order to take his decision with respect to the salary,
allowances, benefits, promotions, etc. The departmental head and the HR manager exchange their views;
thereafter they mutually notify the head of interview board about their decision. The head of interview board
takes the final decision about the candidate's performance and his respective rank in the interview.
PROCESS OF INTERVIEW
Interview Process Consist of following steps-
1) Preparation for the Interview- Before conduction an interview, sufficient arrangements must be done-
a) Choosing most suitable type of interview based on the job requirement.
b) Identifying the knowledge, skills & areas to be examined through interview.
c) Determining the type & number of the interviews.
d) Review of information collected before about job applicants.
2) Conduct the Interview- In this step, all preparation done are executed. It includes-
a) Open the Interview- The interviewer has to open the interview with an ease to interviewee.
b) Guide the Interview- The interviewer should be aimed at getting complete & accurate information about
interviewee.
c) the interviewer has to record observation & impressions.
d) He should put the candidate at ease at the time of starting & during the interview.
e) He should ask question at appropriate time & in clear language.
f) He should avoid making unnecessary interference.
g) He should give a feel to interviewee about fair & just environment during interview.
3) Closing Of Interview- Closing of interview is as important as commencement of interview. Closing of
interview should be pleasing. To close an interview, interviewer may show some signs & it must be done at
appropriate time. The result of interview should be evaluated after closing of interview.
4) Evaluation of Interview Results- The interviewer evaluate the candidate’s strength & weaknesses
against the job & organizational requirement. The evaluation is generally based on the observation,
impression & information collected during interview.

CHOOSING SUITABLE TYPES OF INTERVIEWS


1. In-Person Interview
Job applicants are called for the Interview purpose which consumes lots of time. Face-to-face interviews are
best for companies with a smaller pool of applicants and positions where only one person needs to conduct the
interview.

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BSA-CET UNIT-III TM
2. Phone Interview
Phone interviews allow employers to quickly screen and cut down a long list of candidates. They are easier
to schedule than in-person interviews and are usually briefer.
During the conversation, interviewer may ask any question that they have about the resume or experience of
interviewee. The interviewer can also explain the position in more detail to measure candidate’s interest
before bringing him or her in for an in-person interview.
Phone interviews are the best option for larger companies with a high volume of applicants.
3. Panel Interview
In panel interview, multiple executives and managers as a group take interview of one candidate. Using a
panel can help to speed up the hiring process and be more convenient for the candidate as candidates need
not to attend several rounds of interview with several people, they all take it all together.
With multiple people giving their opinions afterward, the panel interview can also help to eliminate bias and
choose the best candidate for the position.
3. Video Interviews-
Video interviews are newer to the hiring game, and most candidates are less comfortable on video as
compared to in-person interview.
Video interviews allow companies to take interviews of candidates at diversified locations. It saves cost too.
This type of interview may be best for companies with a remote, telecommuting or freelancing workforce.
EMPLOYEE ENGAGEMENT
INTRODUCTION & MEANING
One of the most important components of an organizational success is the people. In today's tight labor
market, it is not only important for companies to retain their employees, but also to ensure employees are
engaged with their body, mind and heart to the organization.
Employee engagement is a workplace approach designed to ensure that employees are committed to their
organization’s goals and values, motivated to contribute to organizational success, and at the same time
are able to enhance their own sense of well-being.
It means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically
to meet team and organizational goals, and feel a sense of belonging and commitment to the organization.
Fully engaged employees care deeply about the organization and actively seek ways to serve the mission.
Employee engagement is a key ingredient in achieving high quality performance at individual, team and
company level.
Employee engagement is often confused with the term employee satisfaction. However, both the terms are
different. Engagement involves workplaces aligning individuals with the mission and priorities of the
workplace while satisfaction is not necessarily connected with the priorities of the workplace.
An engaged employee loves going to work, has an emotional connection with the workplace and becomes
an advocate for their workplace. Engaged employees are self-starters, take ownership and find solutions
and efficient ways to do tasks. A satisfied employee is happy to go to work and is satisfied with the basic
stuff, i.e. pay, benefits, supervisor, working conditions.
According to Gebauer and Lowman, "Employee engagement is a deep and broad connection that
employees have with a company that results in a willingness to go above and beyond what is expected of
them to help their company succeed".

According to Kahn, "Employee engagement is the harnessing of organization members' selves to their work
roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during
role performances".
DRIVERS OF EMPLOYEE ENGAGEMENT
1) Nature of the Work: The nature of the employee's work has a clear influence on their level of
engagement. If the work is creative and exciting for the employee, it takes employees towards employee
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BSA-CET UNIT-III TM
engagement. Employees also need to feel that the work they are doing is important for themselves and for
others.
2) Meaningful and Purposeful Work: A perception that the work undertaken is important, and has a
clear purpose and meaning. Employees need to feel proud of the work what they and their organization
is doing and they need to feel as they are contributing in making a difference.
3) Development Opportunities: Having equal opportunities for career growth, development and training
is considered important in enabling employees to engage with the organization. For employees to perform
well they need to have the right skills for the job, and their roles need to encompass work that the
employee knows how to do but with scope to learn new skills and develop the role.
4) Recognition and Reward: Receiving timely recognition and rewards is a key driver of
engagement. The degree of formality of such recognition is determined by circumstances and what is
appropriate. Employees need to feel valued and appreciated in the work they do.
5) Relationships with Managers and Colleagues: The quality of the relationship between managers and
their employees relates to the development of engagement. A good relationship between managers and
employees is one of the most important factors affecting motivation at work. This is potentially
achieved by rewarding achievement, and demonstrating trust by allowing autonomy. Emotional attachment
to colleagues is another important aspect etc.
6) Quality Communications: Employees may engage in an organization if they can understand the
organization’s values and goals, and developments in these values and goals. They need to understand
how their own role contributes to these values and goals, and the resources available to deliver them, as
well as feeling well-informed about what is happening in the organization.
7) Organizational Justice and Trust: Employees' commitment to the organization might be shaped, in
part, by their perception of how fairly they are treated by the organization. It is suggested that, by treating
employees fairly, organizations may foster greater engagement from their employees.
8) Promotion: Policies and practices concerning promotion can also affect engagement. For example,
Schwarzwald, Krochlowsky and Shalit find that engagement is higher among employees who have
been promoted. But for some, the perception of fairness in the decision-making process may be even
more important.
9) Work-Life Balance: A key issue emphasized by recent research is the degree to which employees
perceive they are able to achieve the right balance between their personal and professional life.
Organizations who make more concerted efforts to provide work-life balance to ease employees' burdens.
These include initiatives such as - flexible work arrangements; childcare; time-off policies; elder care;
Healthcare; information and counseling; and convenience services.
STRATEGIES TO ENHANCE EMPLOYEE ENGAGEMENT(Ways to achieve employee
engagement)-
Various strategies to enhance employee engagement are as follows:
1) Invest in Training and Development: An employer can achieve employee engagement by
recognizing the importance of an environment of growth and learning to bring out the best in everyone.
Employer can develop in-house training departments, can send employees to relevant external training
programmes.
2) Respect Employee's Needs for Work-Life Balance: Employer should give importance to the work-
life balance for employee. He can provide work-life balance by measures like flexible hours, part-time,
job-sharing, sabbaticals for long-serving personnel or those pursuing special outside interests and
extended leave periods for new parents.
3) Create Favorable Work Conditions: Working conditions means the environment within which
employee work. The employer can find creative measures to invest in his employees' well-being and this
may also include the work conditions that are pleasant and conducive to innovation, hard work, creativity
and productivity.
Employer can also provide various facilities for the well being of employees which may include-recreation
areas, gyms, office sports teams and friendly company cafeterias that offer wholesome, healthy foods.

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BSA-CET UNIT-III TM
4) Maintain Open Channels of Communication: Employer must encourage employees at all times
to articulate their ideas, aspirations and concerns; and also keep them up to date, through regular
communications.
Conducting regular employee appraisals is must as it is allowing for 360-degree feedback (where
employees are also permitted to voice their concerns with and expectations of the organization and their
immediate management).
5) Create an Environment of Diversity and Inclusion: Many companies take concrete steps to foster
an atmosphere where employees of every rank are included in the decision-making process and their
input on all matters big and small is valued and appreciated.
Employees in an organization come from different-different background, when an organization respects the
diversity of each employee & provide an inclusive environment where diversity of each employee can be
respected.
6) Formalize Reward and Recognition Programmes: It is seen that employees who feel valued,
recognized and appreciated are the most loyal. Employer should recognize outstanding performance and
reward it on a periodic basis. It promote the employee engagement..

TEN CS OF EMPLOYEE ENGAGEMENT


Ten Cs of employee engagement are as follows:
1. Control: In order to create a level of employee engagement, giving control to employees over their job and
priorities. This can create a sense of trust and value.
2. Confidence: Create a sense of confidence within employees to help promote their future in the company.
Leading by example creates an environment where employees want to strive to be the best they can be.
Negative attitudes do not bode well with employee engagement.
3. Clarity: It is no secret that clarity in communication is the key. However, clarity in goals is also important.
The employee should have clarity about the company goals and how these goals are directly impacted or
influenced by the employee's goals.
4. Connect: Employees need to feel valued from all areas of the business, leaders, bosses, and higher
position employees. Having strong relationships with leaders creates a sense of mentorship and strong
employee engagement.
5. Credibility: Companies that holds high ethical standards and is seen as a credible company and can create
a strong sense of integrity.
6. Convey: A large part of employee engagement understands their impact on the organization. Leaders in
the organization need to convey employee roles clearly.
7. Contribute: Employees engage when they know that their role has a direct impact on the success of the
company.
8. Career: organization should provide growth opportunity for employees which creates motivation for
employees and employee engagement. Motivation is occurs more likely when there is a goal to reach.
9. Congratulate: Employees who have contributed well towards the achievement of the goals of the
organization, employer should give recognition to them.
10. Collaborate: Create teams in which there is healthy competition, support, trust, and cooperation.
Good team leaders encourage teamwork to maximize the potential of a department.
DEGREES/LEVELS OF EMPLOYEE ENGAGEMENT
The degree or levels of employee engagement are mentioned below:
1) Highly Engaged: When employees are extremely engaged then they act with full dedication to achieve
organizational goal. A highly engaged employee is very much satisfied while working in the organization.
These employees try to bring better efforts and they are also ready to take the initiatives. Hence, these
highly engaged employees come in the category of 'A' player. These employees possess the capacity to turn
an ordinary organization into an innovative and productive organization.
2) Almost Engaged: Employees under almost engaged criteria are considered who are reasonably satisfied
with their job. They deliver high performance and are focused, hardworking and honest toward work.
Highly engaged employees are inspiration for them.
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BSA-CET UNIT-III TM
3) Honeymooners and Hamsters: New employees to the organization or to particular function, who have
not yet achieved the level of full productivity, come under the category of honeymooner.
On the other hand, Hamsters are those employees who are either not working with efficiency or are working
in wrong direction.
Hence, both type of employees under the category of honeymooner and hamster deliver unsatisfactory
performance to organization whereas they gain all the benefits in a similar way other employees avail.
4) Crash and Burners: Employees under this category are among the high performers. They are among the
good performer in the organization but are unable to meet their individual goals.
5) Disengaged: These employees are detached from the priorities of the organization. They are working in
organization only to earn their salary. These employees feel that mission and vision of the organization is
inappropriate. Further these employees talk poor about the organization and employers. But these
employees only work to such level where employer doesn't issue them pink slip.
PROCESS OF EMPLOYEE ENGAGEMENT

1) Prepare and Design: The first step in the process is about discovering the specific requirements of the
organization and deciding the priorities. After that a customized design of carrying the whole process can be
decided. It is recommended to seek advice of expert management consultant in order to increase the chances
of getting it done right at the first attempt.
2) Employee Engagement Survey: Design questions of employee engagement survey and deploy it with
the help of an appropriate media. It can be either in printed form or set online depending upon the comfort
level of the employees and the questionnaire evaluation process.
3) Result Analysis: It is the most important step in the entire process. It is time when reports are to be
analyzed to find out what exactly motivates employees to perform their best and what actually disengages
them and finally compels them to leave the organization. The results and information can then be delivered
through presentations.
4) Action Planning: ‘How to turn the results of the survey in to an action’ is a challenging question that
organizations need to deal with the utmost care. Coaching of line managers as well as HR professionals is
very important in order to tell them how to take appropriate actions to engage employees. They should also
be told about DOs and DON’Ts so that they can successfully implement the changes.
5) Action Follow-up: Action follow up is necessary in order to find out if the action has been taken in the
right direction or not and if it is producing the desired results.
OUTCOMES OF EMPLOYEE ENGAGEMENT
There are following outcomes of employee engagement:
1) Organizational Outcomes:
i) Customer Loyalty: Levinson suggests that employees who are happy in their work are more likely to
create loyal customers. Engaged employees tend to have a better understanding of how to meet customer
needs as a result, customer loyalty tends to be better in organizations where the employees are engaged.

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BSA-CET UNIT-III TM
ii) Employee Retention: Employees who are happy in their work are more likely to stay in the
organization, as compared to disengaged employees.
iii) Employee Productivity: Engagement affects employee performance. Engaged employees work
harder, are more loyal and are more likely to go the 'extra mile' for the corporation.
iv) Advocacy of the Organization: Engaged employees are more likely to advocate the organization as a
place to work and actively promote its products and services.
v) Manager Self-Efficacy: Employees who are engaged in their organization and their work are more
likely to respond positively to their managers, demonstrate good performance and achieve success. This in
turn helps their manager to be more effective and successful, which increases the manager's self-efficacy.
vi) Successful Organizational Change: Research suggests that employee engagement might play a key
role in aiding the successful implementation of organizational change and may be particularly important to
enabling organizational agility in companies forced to adapt to the changing market.
2) Employee Outcomes:
i) Clarifying Expectations: The rapidly changing environments to workplaces brought a transactional
approach to the relationship between employer and employee. Where an employee expected a job for life
and promotion in exchange of their loyalty and commitment, employers now tend to offer higher salaries
and increased 'employability' in exchange for employees' efforts.
ii) Health and Well-Being: Research has indicated that engagement may result in positive health effects
and positive feelings towards work and the organization. Engaged employees are more likely to view the
organization and job as a healthy environment and therefore more likely to support the
organization. Engagement may lead to intrinsic motivation, creativity, authenticity, non-defensive
communication, playfulness, ethical behavior, increased effort and involvement and overall a more
productive and happy employee.

SIGNIFICANCE OF EMPLOYEE ENGAGEMENT


Significance of employee engagement is as follows:
1) Retains Employees: Engaged employees have an emotional and personal connection with organization
and their colleagues which motivates them to stay with the organization. Whereas, disengaged employees
work half-heartedly and are ready to switch organization whenever they see any better opportunity.
2) Retains Customers: When Employees serves a particular organization for a longer period of time then
organization gains stability and unity. This results in skilled and experienced work force that can bring
customer satisfaction.
Hence, we can say that employee retention is directly linked to customer retention. With greater customer
retention, organization gain high profit, brand value and customer loyalty which boosts the cash inflow of
the organization.
3) Enhances Productivity: With greater degree of employee engagement, productivity of employee also
enhances. These employees act in smarter way and they seek innovation. They work with integration of
management and co-workers in order to deliver greater results to organization.
4) Increase in Employees Self-respect and Creativity: With higher degree of employee engagement,
self-respect and creativity of employee increases. These employees are highly dedicated and committed
toward work and organization. They are deeply concerned about the organization and its vision and mission.
Thus they make an effective use of their talent to deliver higher level of performance. They also act as a
driving force to innovation so that organization can grow to its full potential.
5) Helps in building Relation: An engaged employee build good personal and long-lasting relationship with
their colleagues. Organization which holds good employers principles, identifies capability possessed by
employee and delivers better experience to professionals will definitely be successful.
TALENT DEVELOPMENT
Talent development is defined as a systematic process that enables the managers to develop their abilities in
order to attain sustained development and growth. Its other name is Management Development.

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BSA-CET UNIT-III TM
Management development is an educational process with the long-term objectives of imparting theoretical and
conceptual knowledge to managerial staff. It is not concerned with developing operational skills and technical
know-how. Thus, it focuses on a broader educational canvas and has long-term outcomes as goals.

According to Dale S. Beach, "Management development is a systematic process of training and


growth by which individuals gain and apply knowledge, skills, insights and attitudes to manage
orientation effectively".

According to Flippo, "Management development includes the processes by which managers and
executives acquire not only skills and competency in their present jobs but also capacities for future
managerial tasks".

According to Koontz and Donnell, "Management Development concerns the means by which a
person cultivates those skills which application will improve the efficiency and effectiveness with which
the anticipated results of a particular organizational segment are achieved".

FEATURES OF TALENT DEVELOPMENT


Talent development has the following features:
1) Talent Development is a planned & organized procedure.
2) It is never-ending & on-going exercise rather than one shot affair.
3) Knowledge-Updating Activity: Management development processes taps at the potential of managers and
develop their skills and knowledge so as to fill the gap between their present competencies and the future
demands.
4) Change in Attitude and Perception: Management development programmes are directed towards
understanding the importance of attitude, behavior & perception with the help of simulating sessions.
Management development programmes can be undertaken to achieve required changes in attitudes. With
change in perceptions and attitudes, meaningful behavior and improved interpersonal skills can be achieved,
which are essential for effective management.
5) It is a lengthy process as talent cannot be developed over night.
6) Scaling Down Deficiencies: Managerial development programmes are directed towards determining work-
related individual deficiencies and identifying the measures to overcome them.
7) Promoting Self-Development: Simulation sessions create live situations in classrooms. This helps to
sharpen interpersonal skills and the likes, before managers actually face such live situations.

Thus, talent development prepares them to face future challenges. Interaction between managers facilitates
learning from each other.

PURPOSES OF TALENT DEVELOPMENT


Following are the purposes of development programmes for various managerial personnel:
1) Top Management
i) To widen the perception of every manager about his position, role and responsibilities within the
organization and outside it.
ii) To enhance the thought process and the ability to analyze in order to pinpoint the problems and make the
best decisions which are for organization’s good.
iii) To recognize technical, institutional and economic influences in order to tackle business related issues.
iv) To determine various problems generally faced by the organisation and foresee future problems so that
precautionary actions can be taken.
v) To gain knowledge about problems related to human relationships.

2) Middle Line Management


i) To be absolutely clear about managerial duties and activities.

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BSA-CET UNIT-III TM
ii) To develop problem-analyzing abilities and corresponding competencies to take the required action.
iii) To acquaint managers with the effects of business laws, financial accounting and business statistics on
managerial functioning.
iv) To impart knowledge of all aspects of managerial problems and be acquainted with, and be aware of the
importance of interdepartmental relations.
v) To understand the role of motivation and interpersonal relationships in performing management functions
efficiently.
vi) To inculcate a sense of responsibility among managers to play leadership roles effectively.

3) Middle Functional Executive and Specialists


i) To enhance the knowledge of business operations and functions in particular areas like marketing,
finance, production, and human resource.
ii) To increase the level of expertise in management techniques like operations research, quality control, work
study, etc.
iii) To stimulate out-of-the-box thinking so as to establish improved methods and procedures.
iv) To understand various organizational functions.
v) To comprehend problems related to human relations.
vi) To develop problem-solving ability in one's functional domain.

Importance of Talent Development


Importance of talent development is as follows:
1) It enhances leadership qualities and problem-solving abilities of managers.
2) It facilitates the development of those trainees who have a good grasp of the fundamental principles of
management, possess the capability of working in a team, leading a team as well as coordinating the
worker's activities with time, familiar with resources and machinery to become an effective supervisor.
3) It enhances the efficiency of supervisors in training and developing their workers, both old and new. This is
done to make them competent to perform their present and future tasks to adapt according to the changing
strategies and goals of the organization.
4) It promotes, and maintains good relations between managers and labor by fostering better understanding of
organizational rules and policies, including the correct interpretation and implementation of the collective
bargaining agreements.
5) It promotes and helps to maintain excellent employee relations by providing training with regard to
interpersonal relationships, inspiring them to achieve better performance by understanding their strengths,
weaknesses and personal characteristics, and by encouraging them to maintain proper attitude towards their
work.

Limitations of Talent Development


Though a company receives many benefits from these development processes but there are several drawbacks
of talent development procedure.
Some of its limitations are as under:
1) Lack of Top Management Support: Each and every function taking place in an organization needs
guidance and supervision of the higher authority. Without the cooperation and coordination of higher
authority, accomplishment of goalsof development programme becomes a bit difficult. There are two ways
in which top management can help in making any development process successful.
These are as follows:
i) Taking initiatives to participate vigorously in any development plan of the establishment.
ii) Creating a suitable atmosphere for the trainees during management development programme.
2) Refusal to Change: Change is the necessity of time. Thus, to attain the organizational objectives, the
changes have to be accepted by all the employees. There may exist certain individuals who resist modifying
themselves. But, for proper implementation of any growth programme and in order to improve the working
style of the authority, these employees need to adjust as per the changing situations.
19 | P a g e By-Ms. Raksha Agrawal
BSA-CET UNIT-III TM
3) Miscommunication: Organization’s vision about development must be clear to all the employees. For
this, constant communication is required among the employees throughout the organization. Any kind of
miscommunication about the changes taking place in the company may adversely affect the positive
outcome of the talent development.
4) Lack of an Action Plan: Action plans states all steps which are to be taken while preparing for or
implementing any talent development programme. Action plans give the right direction to the organization
on which they can successfully achieve their predefined objectives and meet the deadlines.
Without action plans, it is quite difficult or impossible for the organization to move forward in the business
process.
5) Frozen Supervisors: Sometimes, limited growth opportunities are available in the company which keep
the managers frozen. It adversely affects the talent development as their chances of getting promotion are
very less.
TRAINING NEEDS ANALYSIS
A Training Needs Analysis (TNA) is also known as training need assessment. It is a process by which needs of
an organization’s Human Resource are identified and articulated.
With the help of training need assessment, it becomes easy to determine if there exists a training need and if
yes, then what kind of training needs to be imparted in order to manage the deviation between the expected and
actual performance.
The process can identify:
 An organization’s goals and its effectiveness in reaching these goals
 Discrepancies or gaps between an employee’s skills and the skills required for effective performance on
current job.
 Discrepancies or gaps between an employee’s skills and the skills needed to perform the job successfully in
the future.
 TNA not only provides clear direction for identifying training needs, but also helps to evaluate how
effective previous training programmes have been.
The two outcomes of Training need analysis are-
1) Training need and
2) Non-training need.
1) A Training Need reveals a performance gap, and the gap can be filled with training. It exists when the
employee does not know how to do the job – it is a lack of knowledge, skills, and attitudes.
2) A Non-Training Need reveals a gap, however this gap cannot be filled by training. Employees know how
to do the job, but something else affects their performance. It might encompass workflow, recruitment, or
job design.
"Need assessment can be defined as a process for identifying and prioritizing gaps between current and desired
results".
According to Molenda, Pershing and Reigeluth, "Need assessment can be defined as a method of finding
out the nature and extent of performance problems and how they can be solved".
According to Allison Rossett, "Training need assessment is the systematic effort that we make to gather
opinions and ideas from a variety of sources on performance problems or new systems and technologies".

Objectives of TNA
Following are the objectives of identifying training needs assessment:
1) To find out the performance need or requirement in an organization so that areas which are lagging behind
can have the resources important for their better functioning.
2) To enhance effectiveness of employees.
3) To produce qualitative goods and services.
4) To accomplish the goals and objectives of the organization.
5) To establish a yardstick on which trainings would be evaluated.

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BSA-CET UNIT-III TM
6) To spot the deviation between skills that the employee possesses and the skills needed so that he can
perform effectively.
8) To decrease the time and expense incurred in the training programme.
9) To match the activities of training with the organizational strategic plan.
10) To motivate the employees.
11) To find out the appropriate working environment needed for the training.
LEVELS OF TRAINING NEED ANALYSIS
MCGHEE has proposed a model for identifying training need of an employee. This model includes-
 ORGANIZATIONAL ANALYSIS- This analysis includes an analysis of the organization’s strategies,
goals, and objectives. The important questions being answered by this analysis are who decided that training
should be conducted, why a training program is seen as the recommended solution to a business problem,
what the history of the organization has been with regard to employee training and other management
interventions.
 PERSON ANALYSIS- This analysis also known as Man Analysis. The focus of this analysis is on
employee & on his skills & abilities required to perform the job. The important questions being answered by
this analysis are who will receive the training and their level of existing knowledge on the subject, Do they
have required skills, do they need training if yes, what kind of training, what is their learning style, and who
will conduct the training.
 WORK ANALYSIS / TASK ANALYSIS- In this, analysis of the tasks is being performed. The
analysis of job, its operation & condition under which it is performed is known as task or work analysis or
job analysis.
KNOWLEDGE MANAGEMENT
Knowledge management is the systematic management of an organization’s knowledge assets for the purpose
of creating value and meeting tactical & strategic requirements.
Knowledge Management is about making the right knowledge available to the right people. It is about making
sure that an organization can learn, and that it will be able to retrieve and use its knowledge assets in current
requirement as they are needed.
In the words of Peter Drucker Knowledge Management is “the coordination and exploitation
of organizational knowledge resources, in order to create benefit and competitive advantage” (Drucker
1999).
Knowledge Management is directly linked to the tactical and strategic requirements. Its focus is on the use and
enhancement of knowledge based assets to enable the firm to respond to various issues.

COMPETENCY DEVELOPMENT
Developing an individual's proficiency during his career can be termed as competency development. The
organization’s requirement for developing competencies helps it in adjusting with environmental changes. This
is because the managers start thinking about the self-development and change.

The activities of individuals and managers in developing competencies lead to a well-appreciated work-
environment of increased involvement. Such environment boosts the dedication level of employees, as they
realize their responsibilities and the prospects to lead a better life through commitment.

In a number of scenarios, selecting individuals, and their succession planning become quite convenient and are
emphasized upon. This is possible through the discussions among individuals regarding their expectations,
objectives, choices, strengths, weaknesses, development experiences, etc., while they get evaluated on the basis
of their competencies.

PURPOSES OF COMPETENCY DEVELOPMENT


Continuous enhancement of the skills and abilities of the employees to bring effectiveness in their jobs is the
prime purpose of competency development.

21 | P a g e By-Ms. Raksha Agrawal


BSA-CET UNIT-III TM
Few other significant purposes are as follows:
1) It gives an opportunity to the workforce to enhance their skills and abilities in the workforce competencies.
2) The knowledge, process abilities, and skills are developed by the individuals in the workforce competencies
of the organization.
3) The workforce competencies of employees are utilized to develop the workforce competencies of other
individuals.
4) Another purpose is to internalize the practices of competency development in order to make sure that they
take place as specified processes of organization.

PROCESS OF COMPETENCY DEVELOPMENT


Developing competencies is an enduring & long-lasting process which is associated with the personal
development because competencies are applicable to jobs as well as careers.
It needs a specific rule-driven environment to introduce the beginners. However, these rules can be broken by
more competent individuals in a systematic manner whenever needed.
Terms like empowerment, learning organization, knowledge creation, and self-organizing are often
interchangeably used for such environment.
Following are the important steps in the process of competency development:
1) Be ready along with various instances of any need for competency development.
2) Recognize the existing level of progress.
3) Assign equal weightage to the strengths of the employees as well as their needs of development.
4) Keep the rules of effective feedback in mind:
i) Focus on die behavior instead of the individual,
ii) Make use of observations instead of opinions and
iii) Elaborate the positive and negative results, instead of what should have been done by the individual.
5) Make the individual aware of regarding the advantages of behavior modification by asking questions.
6) Motivate the individual to present a summary in order to assess his understanding.
7) Notice the non-verbal gestures in the individual's reactions.
8) Convince the individual regarding the need for change.
9) Notice the situations in which the individual has successfully implemented the needed behavior.
10) Ask a question as a reply to the individual's questions in order to stimulate him for exploring more options.
11) Try to build a secured work environment for practicing and developing competencies for the workforce.
DEVELOPING LEADERSHIP TALENT
Now a days’, in organizations lots of efforts are made to develop leadership under managerial practices by way
of training, development, and favorable work environment. A lot of stress is given on development of
transformational leaders who can handle rapid changes considerably.
Enhancement of those qualities in managers which will make them capable of foreseeing future events and
carrying out changes on a proactive basis constitute leadership development. Leadership development is a way
which is useful in achieving successful and productive change along with competitive advantage.
Leadership is a process in which a person (leader) influences the behavior of other person (follower) & provide
direction to them in such a way which makes the organization more cohesive & coherent.
An effort to refine a learner's competency to direct its followers and an attempt which focusses on
enhancing leadership capabilities, and outlooks of the people heading the chain of command is termed as
leadership development.
That means any act that improvises the quality of leadership within a person or a business organization is
defined as leadership development.
There is much more to successful leadership development than the mere capability of giving commands. A
person should be prudent, tactful, and have top managerial skills.

22 | P a g e By-Ms. Raksha Agrawal


BSA-CET UNIT-III TM
LEVELS OF LEADERSHIP DEVELOPMENT
Every business organization should make efforts for leadership development on group as well as individual
level.
These levels of leadership development are explained as below:
1) Group Leadership Development: Group leadership is crucial in every organization of any industry. It
guides an executive team to act as a team. Under this, Organization makes efforts to develop leadership
skills among its various teams or groups which exist within the organization so that those teams can work in
cohesive way & be more focused towards organizational goal achievement.
2) Individual Leadership Development: Efforts are made to develop leadership skills among members of
organization at individual level. It gives them a chance to sharpen their knowledge and skills, overcome their
limitations.

IMPORTANCE OF LEADERSHIP DEVELOPMENT


1) Helps Managers to Develop Leadership Qualities: Individuals can develop qualities which can make
them an effective leader with the help of leadership development. It also aids managers in developing and
sharpening their leadership skills for becoming more dynamic and effective.
2) Enhances Managerial Skills and Abilities: Organizations conduct many leadership development
programmes on a periodic basis which facilitate ambitious managers and leaders to improve their
managerial competencies and skills.
3) Helps to Create a Positive Outlook: Another importance or benefit of leadership development
programmes is to create a positive outlook. The managers start seeing things in a positive way which
increases their ability to solve problems. This is beneficial for managers and leaders to tackle difficult
events taking place in the organization. Further, it educates managers on how to manage employees in a
manner that would not offend their sentiments, and will also prove cost-effective for the company.
4) Helps a Leader to Understand Employee Problems and Issues: These programmes enable a
manager or a leader to understand issues and problems faced by employees and concentrate on resolving
them. Leadership development programmes enhances the capacity of leaders to make prudent and quick
decisions concerning with plan of actions, company strategies, market conditions, quality of work, etc.

PROCESS OF LEADERSHIP DEVELOPMENT


In order to develop leadership in talents of organization, following steps are necessary to be taken:
Step 1: Determine the Best Leadership Style for the Organization: Several theories have been coined
to establish the ideal leadership styles for a business organization.
According to the situational leadership theory, the ideal style of leadership is different for different
workplace situation, and is ascertained through situational variables.
For example, the leadership style essential for a head of corporate security would be authoritative in
contrast to the creative leadership style required by an art museum director.

Step 2: Identify Current and Potential Leaders within the Company: A leadership programme should
assess or identify the persons in organization who are presently acting as leader or have potential to be
future leader who are matching with the required leadership styles.
Competency models can be used while conducting career counselling to spot leadership potential.

Step 3: Identify Leadership Gaps: Firms should undertake following activities to help identify leadership
gaps:
1) Establish present and prospect leadership needs.
2) Compare those needs with the existing leadership team.
3) Select present leaders, who can be vulnerable.
4) Prepare succession planning for those leaders, who are at risk or planning to leave the organization.
5) Learn about the skill gaps and time period required to fill them.

23 | P a g e By-Ms. Raksha Agrawal


BSA-CET UNIT-III TM
Step 4: Develop Succession Plans for Critical Roles: Succession planning is done in an organization so
as to ascertain who will fill the roles which are designed in organization structure whenever the role holder
leaves the organization. It is very crucial for the effective functioning of the organization as it prevents from
disruption of organization’s working.
The roles which are much important for the organization Like CEO, MD etc. can’t be vacant as their
vacancies will hamper the working of organization, so succession planning is very much important for such
critical roles.

Step 5: Develop Career Planning Goals for Potential Leaders: Several researches conducted indicate
that firms that promote and approve career planning for their staff are successful in protecting, engaging,
and retaining leaders. The opponent firms will surely provide advancement opportunities and career
planning to the employees, if not done by their current employers.
To develop leaders, the organization need to plan the career of potential leaders so that they will get the
advancement in their career & will stay with the organization. It also encourages potential leaders to
participate in leadership development programmes.

Step 6: Develop Skills Roadmap for Future Leaders: A skills roadmap must be generated for the future
leaders, after the high potential and talented employees have been found.
Roadmap shows the ways, methods or practices that will be used for developing leadership in an
organization which may include both inside and outside a classroom exercises or methods for leadership
development. A development programme should support conventional as well as non-conventional learning.

Step 7: Develop Retention Programmes for Current and Future Leaders: Employee retention can be
encouraged by monetary as well as non-monetary rewards. An employee can feel encouraged and
motivated, if his performance is directly associated with payment & Recognition.
Employee participation in the decision-making process is another way to encourage and retain potential
leaders.
There are two very elemental reasons stating the extreme significance of leadership retention for every
organization which are given below:
1) Maximum business performance is driven by top performers of the company, and
2) Employee turnover is quite costly for the business.

KNOWLEDGE MANAGEMENT
Knowledge management is the systematic management of an organization’s knowledge assets for the purpose of
creating value and meeting tactical & strategic requirements.
Knowledge Management is about making the right knowledge available to the right people. It is about making
sure that an organization can learn, and that it will be able to retrieve and use its knowledge assets in current
requirement as they are needed.
In the words of Peter Drucker Knowledge Management is “the coordination and exploitation
of organizational knowledge resources, in order to create benefit and competitive advantage” (Drucker
1999).
Knowledge Management is directly linked to the tactical and strategic requirements. Its focus is on the use and
enhancement of knowledge based assets to enable the firm to respond to various issues.

FEATURES OF KNOWLEDGE MANAGEMENT


Following are the features of knowledge management:
1) It is a never-ending process.
2) It is all-pervasive. It is practiced by everyone in the organization.
3) Procurement, transfer, and storage of information along with expertise, experience of individuals, and
delivering them when required is included in knowledge management.
4) Work teams and experts need to work together under knowledge management.
24 | P a g e By-Ms. Raksha Agrawal
BSA-CET UNIT-III TM
5) Social interaction also leads to knowledge creation.
6) It is the main pillar of organizational effectiveness.

ELEMENTS OF KNOWLEDGE MANAGEMENT


The three basic elements of knowledge management are:
1) Knowledge Creation: Knowledge creation is a continuous process which involves constant gathering of
information, disposing the obsolete information, and keep evolving as per the dynamic environment.
Numerous ways such as experimentation, research and development, creative thinking, benchmarking best
practices, observing customers, process improvement projects, customer feedback, etc., are used to generate
new knowledge under knowledge creation.
2) Knowledge Sharing: Communication and dissemination of the created knowledge throughout the
organization from the organizational database comes under knowledge sharing. Process engineering,
information technology, and organizational dynamics are the basic methods used for knowledge sharing.
3) Knowledge Utilization: A major purpose of knowledge creation and sharing is utilizing it for resolving
issues and problems in the organization. This is the third element of knowledge management and is called
knowledge utilization. Usage and sharing of knowledge leads to its growth of knowledge, unlike other
resources which get depleted after usage.

IMPORTANCE OF KNOWLEDGE MANAGEMENT


Importance of knowledge management is as follows:
1) Quicker and Better Decisions: Better and faster decisions are facilitated with the help of knowledge
management. Past experiences of the employees can be used in finding solutions for similar kinds of problem
thus facilitating a quick and right decision. KM also helps in preventing the challenges which were faced
previously.
2) Enhanced Productivity: Knowledge management helps in enhancing the business' productivity with the
help of detailed information recorded in its database. Using this information, the organization or individuals
can minimize costs and make optimum use of organizational resources for achieving the intended growth.
3) New Products and Services: Knowledge Management minimizes the time and costs involved in research
and development processes by providing creative ideas for developing new products. Past knowledge and
experience of experts can be used for future productions, leading to more flexible and faster implementation
of various business activities.
4) Business Intelligence and Analysis: Job of various business intelligence professionals and business
analysts is to provide right information at the right time to the decision-maker. In such situations, KM system
enables the analysts to generate meaningful reports by retrieving and generating relevant data, and their
sources from stored information using keywords and tags in the database.
5) Project Management: Knowledge management helps in finding solutions for currents problems of project
management, cost estimation, and risk management based on past knowledge and experiences related to
previous projects..
6) Customer Service: The previously stored data in the Knowledge management systems aids to customer
service executives and help desks while handling similar problems and providing feedback-based appropriate
solutions. Use of automated answering systems has become prominent these days in various organizations.

25 | P a g e By-Ms. Raksha Agrawal

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