Placement in hrm Meaning, Definition, Process, Importance

Table of Contents:-

  • Meaning of Placement in hrm
  • Definition of Placement in hrm
  • Process of Placement in hrm
  • Importance of Placement in hrm
  • Limitations of Placement in hrm

Meaning of Placement in hrm

Placement in hrm is the process of placing the right person at the right job. The objective of placement in hrm is to position the selected candidates in the jobs for which they are most suited.

After an employee has been hired, he must be placed in the right job. Placement is the process of appointing an employee either directly or through a selective placement process in a post within the new organisational structure based on staff-follow functions. Direct placement is the process of appointing an employee directly into the same or a similar post. Selective placement is the process of selecting an employee to be appointed to the same or a similar post when more than one employee could be placed into that post i.e., the post is competitive.

Placement is the strategic assignment of individuals to specific jobs. It is the process of assigning or reassigning an employee to a new or different job. Placement includes the initial assignment of new employees as well as the transfer, promotion, or demotion of existing employees.

Definition of Placement in hrm

According to Dale Yoder, “Placement is the assignment of a particular job to a newly appointed employee”.

According to Pigors and Myers, “Placement is the determination of the job to which an accepted candidate is to be assigned, and his assignment to that job. It is a matching of what the supervisor has reason to think he can do with the job demands. It is matching of what be imposes in strain, working conditions, and what he offers in the form of payroll, companionship which others, promotional possibilities, etc.”

Process of Placement in hrm

The process of employee placement in hrm involves the following steps:

  1. Collection of Data
  2. Evaluation of Data
  3. Allocation of Data
  4. Controlling of Data

Process of Placement

Step 1: Collection of Data

The very first step in the process of employee placement is gathering employee data to identify the skills, qualifications, and abilities of the existing workforce.

Step 2: Evaluation

After data gathering of employees is completed, the next step comes into the picture which is evaluating employee competencies to define what kind of job every employee fits best.

Step 3: Allocation/Placing

This step deals with the activity of allocating employees to relevant and best-finding Jobs.

Step 4: Control

The last step in employee placement is controlling. In this step monitoring and measuring the performance of employees at their workplaces is done.

In most companies, the process of employee placement is typically managed and documented under an employee placement policy. This policy defines standards and requirements for employee qualifications and job assignments. It provides the management with a set of guidelines to follow when choosing and assigning employees to the right positions and roles in the company.

Importance of Placement in hrm

Placement in hrm is important for the following reasons:

1) Reduces Labour Turnover and Absenteeism

A proper placement of employee results reduces absenteeism and employee turnover leads to better utilisation of machines, equipment and materials and thus, keeps the employee satisfied.

2) Improves Efficiency of Employee

Proper placement enhances employee efficiency, leading to better results, effective interpersonal relationships, high morale, consistent attendance, and a reduction in mistakes.

3) Gives Motivation

Proper placement keeps the employee motivated by matching their skills to requirements and better motivation results in better performance.

4) Keeps Employees Satisfied

The purpose of placement is to fit square pegs into square holes so that the efficiency of work is high and the employees get personal satisfaction. When assigning jobs to new employees, it’s important to consider both the organization’s requirements and the needs of the employees.

5) Improves Employee Morale

Proper placement helps to improve employee morale. If a candidate adapts to the job and continues to perform as expected, it might mean that the candidate is properly placed.

Limitations of Placement in hrm

Placement in hrm is an important task within an organisation. It needs a clear-cut match between the employees’ knowledge, skills, values, aptitude, and attitude with the job specification and job description. Though the HR Manager takes all possible precautions some problems in appointments crop up. These problems are as follows:

1) Job Expectations/Description

Sometimes, the expectations from the employee are more than his skills or abilities. Then the HR manager finds the mismatch between the employee and the job.

2) Change in Technology

The technological changes bring radical changes in job descriptions and specifications. These changes result in a mismatch between the job and the employee.

3) Social and Psychological Factors

The social and psychological factors involved in teamwork or group formation sometimes result in mismatch.

4) Employee Expectations

Employees’ expectations from the job are the main source of the problems in placement. If the employee expects a high salary, independent and challenging work but the job provides a low salary and involves dependent, routine tasks, the employee may feel incompatible with the job.

5) Changes in Organisational Structure

The business’s grand strategies like mergers, acquisitions, downsizing, de-layering, etc., result in changes in organizational structure and thereby changes in the jobs. These changes result in misfits between the employee and the job.

6) Nature of Job

One of the challenges associated with placement is that we tend to look at the individual rather than considering the requirements of the job. Often, the individual does not work independently of others. Whether the employee works independently of others or is dependent depends on the type of job.

Jobs in this context can be classified into three different categories, which are given below:

i) Pooled: Where jobs are pooled in nature, there is high interdependence among activities. The final output is the result of the collective efforts of all the employees. It is the teamwork which matters. Temporary task forces, project teams and assembly teams represent pooled jobs.

ii) Independent: In certain cases, jobs are independent, e.g., postal service or field sales. Here, once-overlapping routes or territories are allotted to each worker. In such situations, one worker’s activities have little impact on the activities of other workers. This represents the simplest form of the placement problem and solutions for this challenge have been frequently developed.

iii) Sequential: In sequential jobs, the activities of one worker are dependent on the activities of a fellow worker. Assembly lines best exemplify sequential jobs.


1. What are the various objectives of placement in HRM?

The objectives of placement in HRM involve Optimal Utilization of Skills and Abilities, Enhancing Employee Satisfaction and Motivation, Improving Organizational Efficiency, Facilitating Career Development, Reducing Turnover and Absenteeism, Meeting Organizational Goals, and Ensuring Compliance and Fairness. By focusing on these objectives HRM can create a team of productive, motivated, and satisfied workforce that contributes to the overall success and growth of the organization.


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