PARA 13.2|IC 90, HRM One Liner|Chapter-4 | Acquiring Human Resources

PARA 13.2|IC 90, HRM One Liner|Chapter-4 | Acquiring Human Resources

Insurance exams offered by the Insurance Institute of India (III), consist of various papers either in Life or Non Life or Combined. Here we are providing ONE LINER IC 90, HRM Chapter 4: Acquiring Human Resources for para 13.2 and III exam . These questions will be very helpful for upcoming promotional exam in 2020.

IC 90, Human Resource Management is a very important topic in insurance promotional exam. This IC 90, Human Resource Management paper comes in all GIPSA exams which makes it very important.

♦Chapter 4: Acquiring Human Resources

1)Human Resources (HR) Planning: A well planned HR function will ensure that the right people are available at the right places at the right times. To do so, one needs to know the requirements and also the availability of people. Invariably there will be shortages in many places. It would therefore, be necessary to recruit people into the organisation.

2) Human Resource Inventory: The first source for availability of people is the organisation itself. For this purpose, the HR department should have what is known as an HR Inventory or Manpower Inventory. This would be a complete list of the existing employees, showing their:

  • Names,
  • Educational details,
  • Training,
  • Present position,
  • Salary,
  • Capabilities,
  • Limitations and special skills

3) Finding out requirements: HR Planning will have to begin from finding out the vacancies that may arise.

  • Vacancies arising out of retirement, resignations or deaths
  • Vacancies due to people going on leave
  • Vacancies due to expansion plans
  • Induction of new technology in organisation
  • Succession planning

4) Job analysis is an important step in HR planning. While deciding on posting a person to a role, his capabilities for performing on that role must be assessed. For this, the capabilities necessary for the jobs to be done in that role need to be known. Job analysis helps to identify the capabilities required to do the jobs in a role.

5) A job is a collection of activities that have to be done by an individual. These activities may be related or unrelated to each other.

6) Activities in a job may be:

  • Basic operations: like paying out cash, preparing invoices, verifying signatures, maintaining personnel files, working on machines like typewriters, computers etc;
  • Supervisory functions: which are in the nature of checking on basic operations performed by others, including helping them to perform those operations;
  • Managerial functions: which are in the nature of determining objectives and focusing on the future.

7) Knowledge and skills: Knowledge and skills to do a job are usually stated in terms of qualifications and experience. Strictly, both of these are inappropriate and inadequate. To do a clerical job, it is not necessary to be a graduate.

8) A graduate in mathematics has different knowledge and skills than a graduate in economics or literature. Most people have no occasion to use at work what they have learnt in schools and colleges.

9) Job description is a statement about the purpose, scope, duties and responsibilities of a job. It includes information relating to the title of the job, the main functions, responsibilities and limits of authority associated with the job clarifying title.

10) Job specification lays down the personal attributes and abilities required to perform the job. It is a standard or criteria for personnel to be employed.

11) Job evaluation compares jobs and places them in common compensation groups. Job evaluation is helpful in salary administration.

12) Job design: Job analysis may lead to job design which is restructuring of the job in order to adjust to the change in technology, environment, personnel, etc.

13) Parameters relating to a job required for job analysis


  • Performance: actually doing the job
  • Observation: watching others doing the job
  • Interviews
  • Structured questionnaires: asking people on the job to respond to a questionnaire, which has a list of tasks, behaviour, knowledge and skills
  • Diaries maintained by employees stating in detail what they have done
  • Critical incidents: listing out significant events from which the more important and crucial elements can be identified

14) Recruitment is that part of the process that finds persons who could be considered for the appointment.

15) Sources of recruitment: Some of the sources from which persons can be found are

  • Advertisements in newspapers / journals
  • Employment exchanges
  • Placement and head hunting agencies
  • Educational and training institutions
  • Professional or other associations
  • Friends and relatives
  • Existing and old employees who could recommend friends and acquaintances
  • Own records about existing employees as well as applications received from time to time

16) Reservations: There are reservations of jobs for certain categories of persons like weaker sections, scheduled castes, scheduled tribes, ex-servicemen, etc in the public sector. Such reservations are not mandatory in the private sector. But there are pressures that demand reservations in the private sector as well.

17) Selection is that part of the process that makes decisions as to who, among the persons identified through recruitment, should be appointed.

17.1) Educational qualification vs knowledge and skill: Educational qualifications are indications of, but not determinants of, knowledge and skill. Ability to score marks in an examination is not the same as the ability to use it in a practical situation. There may have been additions of knowledge, as well as erosion of knowledge, since the passing of the examination.

17.2) Attitudes, aptitudes and behavioural characteristics are not easy to document. Pleasantness in dealing with people, alertness and sensitivity to situations, responses under situations of stress and pressure, characteristics like arrogance and humility, ambitions and expectations are difficult to standardise as specifications but are important in organisational work.

17.3) To make a good selection, there should be more applicants than the number to be selected: The number to be selected is the number of vacancies. It is believed that the candidates should be 3 to 5 times the vacancies. In response to advertisements, very large numbers may apply. When the candidates are more, something has to be done to bring down the number.

17.4) Selection is made by using one or more of the following techniques.

  • Personal interview by one or more individuals separately, or as a panel, also called the selection board.
  • Group discussions among the candidates, which is observed by the selector or selectors.
  • Psychological and aptitude tests. In basket exercises.
  • References and medical tests.

17.5) Interviews: The person to conduct an interview must be properly briefed about the way to conduct the interview. An interview is not the place to check on data which is available already on the records. Data on family background, hobbies, achievements, etc

17.6) Such expressions of disapproval or challenge to the candidate‟s position may be selectively done to test

  • response to situations of stress
  • emotional control.
  • whether he was just repeating whatever he may have heard or read, without application of mind.

17.7) Group activities provide a lot of data about the candidates, to the extent that they reveal the thought processes, creativity, values, listening ability, argumentativeness, aggressiveness, etc. The process is equally important as it reveals interpersonal skills and important behavioural tendencies.

17.8) Test

  • Psychological tests
  • Intelligence quotient

17.9) An “in-basket” is a set of papers which might come to an executive desk. The candidate is expected to record his decision on each of those papers. These decisions may be discussed later, between the candidates themselves or with the selectors.

17.10) References and medical tests: References and medical tests provide secondary data, after the main selection process is over. These only confirm suitability but do not decide suitability.

18) Induction: After the selection process is complete, the appointment letter may be issued. But before placing the new appointee on the job, it is advisable to let him go through what is called Induction. The purpose of induction is to help the candidate to understand the organisation, its structure, its values, its objectives, its policies, etc. The process of Induction is also called orientation.

19) Placement: When a person is appointed after the selection process, an opinion would have been formed as to what kind of jobs he may be suitable for. After induction and orientation, the new employee would be sent to the job he was thought fit for. However sophisticated the selection process, one cannot be sure that the judgement made was right. The performance at work may be disappointing. The HRD philosophy believes that no employee can ever be dubbed as „unfit.‟ If he was indeed „unfit‟ he could not have passed through the selection process.

19.1) At the time of admission into an organisation, a person, most likely, will be

  • Enthusiastic
  • Intending to contribute his best
  • Hoping to develop as an individual and as a professional
  • Expecting that in due course he will achieve recognition and distinction and so on

19.2) It is possible that some time after admission, the person may

19.3) Performance at work is a function of

  • Skill: Skill relates to ability to do the job.
  • Will: Will relates to the willingness to do the job. This would be high to start with but can reduce in course of time.

20) Support: Support relates to the support from the rest of the office and will include clarity on the tasks, clear direction from the superiors and help in case of difficulty, acceptance by the rest of the team and so on.

21) Transfer refers to the movement of an employee from one job to another within the organisation.

22) Promotion is the advancement of an employee to a higher post with more emoluments, prestige, higher status and greater responsibilities.

23) Promotion on the basis of seniority: Seniority may have a greater weightage at lower levels. Seniority has the advantages of objectivity, transparency, absence of scope for favouritism.

24) Promotion on the basis of merit: Merit will have a greater weightage at higher levels. Merit based promotion has the advantages of recognising and rewarding a meritorious worker and enthusing every aspirant to higher level of performance.

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