Recruitment

Recruitment Process:

Recruitment refers to the process of attracting, screening, and selecting a qualified person for a job. At the strategic level it may involve the development of an employer brand which includes an 'employee offering'.

The stages of the recruitment process include:

·         Planning

·         Strategic Development

·         Searching

·         Screening

·         Evaluation & Control

Planning:

It involves the translation of likely job vacancies and information about the nature of these jobs into a set of objective or targets, that specify:

1.       The Number

2.       The typed of the applicants to be contacted

Strategic  Development:

Once it is known how many type of recruits are required, serious consideration needs to be given to:

·         Make or Buy Employee

·         Technological sophistication of recruit and selection devices (Methods used in recruitment)

·         Geographic distribution of labor markets comprising job seekers (Where to look for suitable candidates)

·         Sources of recruitment

·         Sequencing the activities in the recruitment process

Searching:

It involves two steps:

·         Source Activation:

o   Initiated by issuance of an employee requisition (To verified existence of vacancy by line manager)

o   Applications received should be screened

o   Eligible candidates must be invited and letter of regret must be sent to unsuccessful candidates

·         Selling: by media and print advertisement

Screening:

Purpose of screening is to remove visibly unqualified person from the recruitment process at an early stage, It can save a great deal of time and money

Evaluation & Control:

Questions should always asked as to whether the recruitment methods used are valid and whether the recruitment process itself is effective?

Statistical information on the cost of advertisement , time taken for the process and the suitability of the candidates for consideration in the selection process should be gathered and evaluated.

Individual Incentive Plans

• Under individual incentive plans earnings are related directly to the performance of individual worker.
• Individual incentives may be based on time or output.
• Under time based plans, standard time is determined and bonus is given if a worker completes the job in less than standard time.
• Under output based plans, a standard output is determined and workers producing more than the standard output are given bonus.
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Various Types of Individual Incentives Plans are:

·         Based on Time:

1.       Halsey Plan

2.       Rowan Plan

3.       Emerson Efficiency Plan

4.       Bedeaux Point Plan

·         Based on Output:

1.       Taylors’ Differential Piece Rate Plan

2.       Merrick’s Multiple Piece Rate Plan

3.       Gantt’s Task and Bonus Plan

Halsey Plan:

Under this plan, a standard time is fixed on basis of past performance record.

A worker who completes his job within or more than the standard time is paid a guaranteed time wage at the normal rate.

A bonus usually 50% of the time saved is paid to a worker who completes his job in less than standard time.

Illustration:

Standard Time (S) = 8 Hrs

Time taken (T) = 6 Hrs

Rate of Wages (R) = 20/Hr

Bonus (P) = 50% of the time saved

Total wages (W) = (T x R) + (50 % x (S - T) x R)

= (6 x 20) + (50 x (8 – 6) x 20)/100

= 120 + (0.5 x 2 x 20)

= 120 + (1 x 20)

= 120 + 20

= Rs.140

Rowan Plan:

This is a modified form of Halsey Plan.

Under this plan, a minimum time wage is guaranteed to every worker at the normal rate.

A standard time is determined in advance.

The bonus is that proportion of the wages which the time saved bears to the standard time.

Illustration:

Let us use the same data given above under Halsey Plan:

Standard Time (S) = 8 Hrs

Time taken (T) = 6 Hrs

Rate of Wages (R) = 20/Hr

Total Wages= (T x R) + {T x R x (Time Saved)}

Standard Time

(6 x 20) + {6 x 20 x (2)}/8

= 120 + (120 x 1)/4

= 120 + 30

= Rs.150

Note: In this method, Rs. 10 is earned more than the earlier method (Halsey plan), i.e. Rs. 150 – Rs. 140.

Emerson Efficiency Plan:

·         Under this plan, standard time for a job is determined scientifically and a minimum time wage is guaranteed to all workers at the normal time rate.

·         Bonus is given at an increasing percentage beyond the prescribed level of efficiency (*usually 66.67 % of efficiency).

·         Efficiency of each worker is determined by dividing the standard time by the time taken.

*Efficiency = (Std. Time) x 100/Time Taken

= (8) x 100/12

= 66.67 %

Illustration:

For example, a workman takes 6 Hrs to complete the work instead of 8 Hrs.

The efficiency is measures as follows:

Standard Time(S) = 8 Hrs

Time taken (T) = 6 Hrs

Rate of Wages (R) = 20/Hr

Bonus:

·         10% upto 75% efficiency i.e.,

(8/x) x 100 = 75

800/75 =x

i.e. x = 10.66 Hrs.

·         20% upto 100 % efficiency

(8/x) x 100 = 100

800/100 = x

i.e. x = 8 Hrs.

·         30% beyond 100 % efficiency

In this case the efficiency level is 8/6 x 100= 133.33%, therefore bonus at 30% is payable.

Total Wages (W) = (T x R) + (% of bonus x T x R)

= (6 x 20) + (30 x 6 x 20)/100

= 120 + (3600)/100

= 120 + 36

= Rs. 156

Bedeaux Point Plan:

·         Under this plan, standard time for the job is set scientifically and it is expressed in terms of B.

·         For instance, a standard time of 240 B means that the job should be completed within 240 minutes.

·         In determining the Bs, the time of operation and the rest time both are taken into account.

·         Minimum time wage is guaranteed to all workers.

·         The workers who complete the job within or more than the standard time are paid at the normal time rate.

·         Those who complete the job in less than the standard time are paid bonus for the time saved.

·         Generally, 75% of the wages for the time saved are paid as bonus to the worker and 25% to the foreman.

Illustration

 Standard time (S) = 480 Bs (8 Hrs)

Actual time (T) = 360 Bs (6 Hrs)

Rate of wage (R) = Rs 0.35 per B

Time saved = S - T

= 480 - 360 = 120

Total wages = (S x R) + {75% of R x (S - T)}

= (480 x 0.35) + {75 x 0.35 x (480 - 360)}/100

= 168 + {3 x 0.35 x (120)}/4

= 168 + 31.50

= Rs. 199.50

Wage for the workman is Rs. 199.50.

Foreman’s share from this workman is Rs. 25% i.e.

Bonus = {25 x 0.35 x (480 - 360)}/100

= Rs. 10.50

Based on Output

Taylors’ Differential Piece Rate Plan:

·         F.W. Taylor, the father of Scientific Management devised this plan.

·         Under this system, standard task is established through time and motion study.

·         Two piece rates are laid down.

·         The lower rate for those workers who fail to complete the standard task within the allotted time and the higher rate for those who complete the task within or less than the allotted time.

·         The objective is to provide sufficient incentive to workers to work hard and achieve the standard.

Illustration:

Suppose the standard output is 50 units per day. The piece rates fixed are Rs. 3 and Rs. 4 per unit. Three workers A, B and C produce 40, 50, 60 units respectively during a day.

Their total wages will be as follows:

A = 40 x 3 = Rs. 120

B = 50 x 4 = Rs. 200

C = 60 x 4 = Rs. 240

In this way, an inefficient worker is penalized as he gets a lower rate per unit.

Merrick’s Multiple Piece Rate Plan:

·         This plan was developed to overcome a drawback in Taylor’s Plan.

·         This drawback relates to an abrupt change in piece rate.

·         Under it, three graded piece rates are prescribed.

·         Workers producing less than 83% of the standard output are paid at a basic piece rate.

·         Those producing from 83% to 100% of the standard output are paid 110% of the basic piece rate.

·         Workers producing more than the standard output are paid at 120% of the basic piece rate.

Illustration:

Suppose the standard output is 50 units per day. The piece rates fixed are Rs. 3 per unit for 83% production (basic piece rate; 42 pieces); Rs. 3.30 per unit for 84%-100% production (110% of the basic piece rate; 43-50 pieces) and Rs 3.60 per unit for more than 100% production (120% of the basic piece rate; more than 50 pieces).

Three workers A, B and C produce 40, 50, 60 units respectively during a day. Their total wages will be as follows:

A = 40 x 3.00 = Rs. 120

B = 50 x 3.30 = Rs. 165

C = 60 x 3.60 = Rs. 216

Gantt’s Task and Bonus Plan:

·         Under this plan, standard time for every task is fixed through time and motion study.

·         Minimum time wage is guaranteed to all workers.

·         A worker who fails to complete the task within the standard time receives wage for actual time spent at the specified rate.

·         Workers who achieve or exceed the standard get extra bonus varying between 20% to 50% of the hourly rate for the time allowed for the task.

Illustration:

Suppose the standard time fixed for the job is 8 hours and the time rated is Rs. 20 per hour and the rate of bonus is 25%.

A worker who completes the task in 10 hours, he will be paid Rs. 160 (8 x Rs. 20) only.

On the other hand, the worker who completes the task in 6 hours will receive Rs. 200 (Rs. 160 + 25% of Rs. 160).

Incentive_Description

Incentive wages refer to performance linked compensation paid to improve motivation and productivity of employees. It implies monetary inducements offered to employees to perform beyond acceptance standards. Wage incentives include all the plans that provide extra pay for extra performance in addition to regular wages for the job.

According to the National Commission on Labour, “Wage incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration, for improvements in the present and targeted results”.

Contract Labor Act 1970

Miscellaneous Sections and Explanations:

Section 1: Applicability

·         It is applicable to every establishment where 20 or more worker are employed

·         Applicable to every contractor who employs 20 or more worker

Note: It shall not apply to establishment in which work only of a casual nature. Following work shall not be deemed of casual nature:

·         If it is performed more than 120 days in preceding 12 months

·         If it is of a seasonal character and is performed more than 60 days in a year.

Section 2: Definitions

·         Section 2(a)- Appropriate Government

o   In relation to an establishment in respect of which the appropriate government under the industrial dispute act 1947 is the central government, central government would be the appropriate government

o   In any other case, the state government would be appropriate government

·         Section 2 (c)- Contractor

o   In relation with establishment, it means a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of a manufacturing to such establishment, through contract labor or who supplies contract labor for any work of the establishment and includes a sub contractor

·         Section 2 (e)- Establishment

o   It means any office or department of the government or local authority

o   It means any place where an industry, trade, business, manufacture or occupation is carried on

·         Section 2 (g)- Principal Employer

o   In case of department of government or local authority, head of the department or office would be the principal employer

o   In case of factory, owner of the factory and where a person has been named as a manager of the factory under the factory act

o   In case of a mine, owner or agent of the mine or manager of the mine would be the principal employer

o   In any other establishment, any person responsible for the supervision or control of the establishment.

·         Section 2 (h)- Wages

o   shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936)

·         Section 2 (i)- Workman

o   "Workman" means, any person employed, in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied.

o   But it does not include-

§  Any person who is employed mainly in a managerial or administrative capacity

§  who, being employed in a supervisory capacity draws wages exceeding five hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature

Section 3: Central Advisory Board

Constituted by central government to advice central government on such matters arising out of the administration of this act.

Members

·         Chairman, which is appointed by Central Government

·         Chief labor commissioner (central), ex officio.

·         11-17 member nominated by  Central Government and represent that government, the Railways, Coal Industry Mining Industry, Contractor, Workman and any other interests

Section 4: State Advisory Board

Constituted by state government to advice state government on such matters arising out of the administration of this act.

Members would be appointing same as above, but on state level.

Section 6: Appointment of Registering Officers

Appointed by appropriate government by an order notified in the Official Gazette

Section 7: Registration of certain establishment

·         Every principal employer shall make an application to the registering officer for registration of establishment

·         If the application for registration is complete, registering officer shall issue a certificate of registration

Section 8: Revocation of registration in certain cases

If the registering officer is satisfied, that the registration of any establishment has been obtained by miss-representation or suppression of any material fact, or that for any other reason the registration has become useless or ineffective and, therefore requires to be revoked, the registering officer may, (after giving an opportunity to the principal employer of the establishment to be heard and with the previous approval of the appropriate Government), revoke the registration.

Section 11: Appointment of Licensing Officers

Appointed by Appropriate Government

Section 13: Grant of License

License granted shall be valid for the period specified and may be reviewed from time to time

Section 14: Revocation, suspension and amendment of license

If the licensing officer is satisfied, that:

·         A license granted under section 12 has been obtained by misrepresentation or suppression of any material fact

·         The holder of a license has, without reasonable cause, failed to comply with the conditions subject to which the license has been granted

the licensing officer may, after giving the holder of the license an opportunity of showing cause, revoke or suspend the license or forfeit the sum, if any, or any portion thereof deposited as security for the due performance of the conditions subject to which the license has been granted.

Section 15: Appeal

·         Any aggrieved person by order made under section 7, 8, 12 or 14 may within 30 days from the date on which the order is communicated to him prefer an appeal to appellate officer.  The Appellate officer shall be nominated by Appropriate Government

Section 16: Canteens

·         Appropriate Government may make rules requiring that in every establishment, to which this act applies-

Wherein contract labor numbering 100 or more is ordinarily employed by a contractor, one or more canteen shall be provided and maintained by the contractor

Section 17, 18 & 19: Rest Rooms, Other Facilities and First Aid Facilities

It is duty of contractor to provide facilities of rest rooms, dirking water, urinals and latrines and washing.

He has to provide and maintain first aid facilities also.

Section 20: Liability of Principal Employer in certain Cases

·         If any amenity required to provided under section 16, 17, 18 or 19 and is not provided by contractor within the time, therefore such amenity shall be provided by the principal employer

·         All expenses incurred by principal employer may be recovered from the contractor

Section 21: Responsibility for Payment of Wages

·         Contractor shall be responsible for payment of wages

·         Every principal employer shall nominate a representative to be present at the time of disbursement of wages by the contractor

·         In case contractor fails to make payment principal employer shall be liable to make payments, he can be recovered by contractor

Section 22: Obstructions

Whoever obstructs the inspector for making any examination, inspection or inquiry shall be punishable with imprisonment for a term which may extend to 3 months or with fine which may extend to Rs. 500 or both

Section 23: Contravention of Provisions regarding Employment of Contract Labor

·         Whoever contravenes any provision of this act will be punishable with imprisonment of a term which may extend to 3 months or with fine which may extend to Rs. 1000 or both

·         In case of continuing contravention with an additional fine which may extend to Rs. 100 for every day during which such contravention continuous

Section 24: Other Offences

If any person contravenes any of the provisions of this Act or of any rules made there under for which no other penalty is elsewhere provided, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to Rs. 1000, or with both.

Section 25: Offence by Companies

If the person committing an offence under this Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly

Section 26: Cognizance of Offence

No court shall take cognizance of any offence under this Act except on a complaint made by, or with the previous sanction in writing of, the inspector and no court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence punishable under this Act

Section 27: Limitation of Prosecution

No court shall take cognizance of an offence punishable under this Act unless the complaint thereof is made within three months from the date on which the alleged commission of the offence came to the knowledge of an inspector

Section 28: Inspecting Staff

·         The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be inspectors for the purposes of this Act

·         an inspector may, within the local limits for which he is appointed –

o   enter, at all reasonable hours, with such assistance (if any),

o   examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is a workman, employed therein,

o   require any person giving out work and any workman, to give any information, which is in his power to give with respect to the names and addresses of the persons to, for and from whom the work is given out or received, and with respect to the payments to be made for the work,

o   seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act,

o   exercise such other powers as may be prescribed

·         Any information required to produce any document or thing or to give any information required by an inspector under sub-section (2) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860).

Section 29: Registers and other Records to be maintained

Every principal employer and contractor shall maintain such register giving particulars of-

o   Contract labor employed

o   The nature of work performed

o   Rates of Wages

Section 30: Effect of Law & Agreement Inconsistent with this act

The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law or in the terms of any agreement or contract of service, or in any standing orders applicable to the establishment whether made before or after the commencement of the Act

Section 31: Power to Exempt in Special Cases

The appropriate Government may, in the case of an emergency, direct, by notification in the Official Gazette, that subject to such conditions and restrictions, if any, and for such period or periods, as may be specified in the notification, all or any of the provisions of this Act or the rules made there under shall not apply to any establishment or class of establishments or any class of contractors

Section 32: Protection of Action taken under this Act

No suit, prosecution or other legal proceedings shall, lie against any registering officer, licensing officer or any other Government servant or against any member of the Central Board or the State Board, as the case may be, for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made there under

Section 33: Power to give Direction

The Central Government may give directions to the Government of any State as to the carrying into execution in the State of the provisions contained in this Act

Section 34: Power to Remove Difficulties

If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty

Section 35: Power to Make Rules

The appropriate Government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act