- MBA SEMESTER 3 SUBJECT CODE & NAME HRM301 – MANPOWER PLANNING & RESOURCING

Set –I

Q.1.What are the key human resource elements?

Explaining the key human resource elements

Answer:-

Every firm or organization needs to weak itself up to the changing times in order to achieve its goals
and objectives and to be successful. Every manager must have an understanding of these elements
and how it functions. There are nine key HR elements that every human resource manager needs to
practice or pay attention to when making decisions. They are:

I) Planning and Evaluating Employees: - Organizations need to articulate the vision, mission, goals
and objectives. These goals need to cascade down to every employee in the organization based on
the job role. Employee performance is evaluated against documented goals to decide action steps in
terms of rewards, training and development.

II) Job Design: - Some organizations have categorized jobs into 3 categories:

Individual contributor:-Individual contributors need to be excellent in their domain area.

People developer & Business operator:-In people developer job roles and business operator job
roles, interpersonal skills, communication skills, ability to build rapport and working in teams is a
critical requirement.

III) Job Analysis: - Job analysis is a procedure to collect information or data about the job duties,
responsibilities, required skills, and work environment or atmosphere of a particular kind of job.

IV) Individual and Team Development: - Organizations have to identify the needs for employees’
skill development, competency development, and educational needs. Organizations also identify the
growth needs and aspirations of employees. This is done at the individual level and at the team level.

V) Career Planning and Career Path: - Organizations should aim to help employees recognize their
strengths and weakness and to apply these strengths, weaknesses, aptitudes and abilities to their
future work.

If an organization shows the career path to each and every employee and enables employees with
potential then these employees climb up the corporate ladder fast. Career planning brings clarity
and allows for employees to get promoted or earn more.

VI) Hiring:-Hiring is the first step of bringing a person into the organization. The major responsibility
begins thereafter in keeping the employee gainfully engaged.
VII) Succession Planning: - A variation of career planning is succession planning which is conducted
not for all employees in the organization by only for some selected vital roles and positions in the
organization.

VIII) Job Classification: - An organization develops a process for evaluating the level and appropriate
salaries for different jobs and roles. An industry benchmarking exercise is undertaken every year.
The salary ranges for each job role are decided.

IX) Compensation, Recognition & Rewards: - Every organization follows their own strategy in terms
of compensation, benefits, rewards, recognition and promotions.

Motivators Type of performers

Recognition One of the high performers deserve recognition
Rewards Consistent high performers deserve a reward
Benefits (Bonus) Consistent high performers creating extra value for the organization
deserves a bonus
Compensation (Salary) Inconsistently exceeds expectations with potential for growth or high
performer receives increment greater than inflation.
Promotion Consistently exceeds expectations (Best)

Q.2. what do you mean by Human Resource Accounting (HRA)? Discuss the objectives and
advantages of HRA.

Definition of Human Resource Accounting

Describing the objectives of HRA

Describing the major benefits of HRA

Answer:-

According to, The American Accounting Association’s committee (1973),

Human resource accounting is “the process of identifying and measuring data about human
resources and communicating this information to interested parties”.

Human resource accounting is capable of helping the management in various ways it can support
managerial decisions involving human resource allocation, projection and scheduling in the
organization.

The purpose of human resource accounting is to facilitate the managers in planning, supervising and
controlling human resource in the most effective manner.

The objectives of Human Resource Accounting:-

i. To provide cost/value information of Human Resource and associated processes to the

management and assist decision making

ii. Serve as a basis for decisions concerning the human resource of the organization.
iii. Provide methods and standard for evaluating the worth of people to the organization effectively.

iv. Enable effective management and monitoring of resources

v. To report progress or retardation of human assets

vi. Form the base for developing management principles by reporting financial outcomes of
decisions taken

The major benefits of HR accounting:-

 It checks the corporate plan of the organisation. The corporate plan aiming for expansion,
diversification, changes in technological growth etc. has to be worked out with the availability of
human resources for such placements or key positions. If such manpower is not likely to be
available, HR accounting suggests modification of the entire corporate plan.

 It offsets uncertainty and change, as it enables the organisation to have the right person for
the right job at the right time and place.

 It provides scope for advancement and development of employees by effective training and
development.

 It helps individual employee to aspire for promotion and better benefits.

 It aims to see that the human involvement in the organisation is not wasted and brings high
returns to the organisation.

 It helps to take steps to improve employee contribution in the form of increased

productivity.

 It provides different methods of testing to be used, interview techniques to be adopted in

the selection process based on the level of skill, qualifications and experience of future human
resources.

 It can foresee the change in value, aptitude and attitude of human resources and accordingly
change the techniques of interpersonal management.

Q.3. what is Manpower Planning? Mention five essential elements/steps of manpower planning.

 Defining manpower planning

 Explanation of the five essential elements/steps of manpower planning

Answer:-
Manpower planning:-

The manpower planning function ensures there is a balance struck between the generated
manpower demand forecast and the manpower supply forecast to ensure hiring the right number
and the right kind of people at the right place at the right time for doing the right things.

The manpower planning function is a key part of the HR function. Manpower planning function
conducts an orientation program for the representatives of each department engaged in developing
the manpower demand forecast at the department level. The HR function enables the manpower
planning function to obtain all the relevant inputs that would constitute the contents of the
orientation.

The five essential elements/steps of manpower planning:-

Step Manpower Planning Steps Inputs provided by HR

1 Evaluate present manpower inventory
2 Manpower forecasting
3 Develop a manpower sourcing plan or
retrenchment plan
4 Manpower allocation
5 Building requisite competencies
Current inventory levels and inputs for
orientation of representatives involved in
manpower planning at the departmental level.
Goals, controllable variables, uncontrollable
variables, business projections, uncontrollable
variables, maturity level of the organization,
changed organization structure if any.
Previous years plan versus actual, inputs
regarding offers to joining ratios, target resource
pool, challenges of recruitment and challenges of
retrenchment.
Meeting headcount target based on budgets by
allocation techniques used previously.
Manpower training and development processes,
challenges and costs.

SET-I

Q.1. Discuss in details the Employee Exit Process.

Explaining the Employee Exit process in detail.

Answer:-

Employee Exit process:-

The employee who wants to resign will discuss with his Manager,
Submits his resignation to his Manager. The Manager should put his comments on the resignation
letter and forward it to HR. (these comments can be to be relieved by dd/mm/yyyy, or some other
special comments)

HR on receipt of the Resignation letter, enters in the software, the date of receipt of resignation
letter, terms and conditions of resignation if any special is there. and comments of Manager, the
payroll changes are made accordingly as per the relieving date decided, the software generates the
receipt of resignation letter, along with a no dues format, with employee name, roll no, dept already
preprinted on the no dues format.

These letters and format are handed over by HR to employee, + details of PF transfer forms,
withdrawal forms as applicable. All the payroll changes, PF changes are scheduled to take action on
the relieving date in software.

HR prepares the matter of Relieving letter and gives it to the Manager for suggestions / comments.
The relieving letter is kept ready.

Usually before / on the relieving day or some 2 days ago, the employee submits all no dues, and
other forms to the HR and takes his relieving letter. The sample questions below will help to
facilitate these goals. They must be used as soon as the employee and the organization are aware
that the employee will be leaving. It is only appropriate not to leave these questions until the exit
interview.

“How will the employees knowledge be advantageous to the organization; their opinions,
experience, introductions to their contacts, colleagues etc., before the employee leaves?”

“Will the employees meet up happily with managers or successor or colleagues to advise them so
that the organization will benefit from their knowledge and experience before their departure?”

“How to help the employees to pass on knowledge and experience to their successor before they
leave the organization?”

“How and when will the employee prefer to pass on knowledge to the successor?”

How does the organization agree for this knowledge to be transferred?” Are employees happy to
help the organization by naming a successor?”

Employer’s or HR managers will get the most for the organization and be able to best help to the
departing employee by being positive, constructive, understanding and helpful, prior to and during
the exit interview process. Treat people with respect and dignity, and usually they will respond in
kind.

Q.2.What are the benefits of setting up a training academy?

Benefits of setting up a training academy

Answer:-

Organizations set up training academies where they provide training course with/without
certification in the area of their specialization to fresher candidates. Sometimes candidates with
lesser experience are also considered. The candidates are charged fees for this course and are hired
on successful completion of the course.

Benefits of setting up a training academy:-

i. Reduced Hiring Costs – As lesser number of employees are hired through consultants and more
number of students are hired from the training academy, the hiring cost is reduced. Also the
organization generates revenue on every candidate trained.

ii. Reduced Training Cost – During the training period the candidates are not paid salary, so the cost
of salaries paid during the training period is saved. The cost of salaries is a big component of
training costs. For a BPO offering an average salary of INR 10,000 per month and a training
duration of 2 months. Salary costs are INR 20,000 per employee during training. For e.g. if the BPO
have hired 1000 employees last year and trained them for 2 months, then it borne the cost of 2
Crores towards their salaries during those 2 months training period. If it sets up an academy, it
does not have to pay salary during training period and hence can save 2 crores in terms of salary
costs.

iii. Reduced Training Period – Train to Hire process completely concentrates on training the new
candidates. Only the selected candidates are paid at the end of the training. As a large chunk of
the training is conducted by the academy, the training period of the company reduces
substantially. Their go-live time is the shortest.

iv. Improved Bench Strength – Through “Train to hire” model, the organization has ready
replacements available in case of employee turnover or in case of requirement of additional
manpower for expansion. The academy always has excess people than what the organization
requires. This gives the organization the flexibility to backfill at short notice and expands the
business in the shortest possible time. The candidates ready in waiting to join the organization is
called the bench strength.

Training Academy is either situated in the existing part of the organization’s premises or a low cost
area where the cost of land is relatively cheap. Organizations set up the Training Academy in the
existing premises because it saves them any additional cost and makes it easier to make resources
available to the candidates. Sometimes, the organization is reluctant to use its office space to avoid
any administrative issues, maintain safety, and to avoid information leakage about their products or
schemes etc.

Q.3. Write short notes on the following:

a) Competency Mapping
b) Succession Planning

Answer:-

a) Competency Mapping:-

Competency Mapping is a process of identifies key competencies for an organization and/or a job
and incorporating those competencies throughout the various processes (i.e. job evaluation,
training, recruitment) of the organization.
The competency mapping process needs to be strongly integrated with these aspects. Competency
models should be developed using behavioral interview methods so that the organization creates a
model that reflects its own strategy, its own market, its own customers, and the competencies that
bring success in that specific context (including national culture).

Competency is the ability of a person to perform a particular job in the best possible manner.
Competency is a combination of skills, knowledge, behavior, motivation and values. Competency is a
product of and not a sum of the above factors, i.e.

Competency = Hard Skills x Soft Skills x Domain Knowledge x General Knowledge x Behavior x
Motivation x Values.

Competency mapping requires a systematic process to be followed. A large set of assessments need
to be created or existing assessment tools need to be used. The existing assessment tools could
include psychometric analysis and are available by paying a license fee per person who needs to be
assessed.

b) Succession Planning:-

One of the types of career planning is succession planning. Succession planning is a technique for
identifying and developing internal employees with the potential to fill important organizational
positions. Succession planning ensures the availability of experienced, skilled and competent
employees that are prepared to assume these roles as they become available. Succession planning
increases the progress of qualified employees from individual contributors to managers and leaders.
Thus:

It prepares present employees to undertake key roles

It develops talent and long-term growth of employees

It improves workforce capacities and performance of employee

It improves employee commitment and thus enables retention of employees

It ensures its support to employees throughout their employment term

It meets the career development requirements of existing employees

It understands the increasing difficulty of recruiting employees externally

It focuses on leadership continuity and improved knowledge sharing

It provides more efficiency in monitoring and tracking of employee proficiency levels and skill gaps.
Succession planning is an essential part of an organization's ability to reduce risks, ensure smooth
business continuity, create a proven leadership model, and improve employee morale.