UNIT -2

HUMAN RESOURCES PLANNING

HR PLANNING

HR is the process by which an organisation ensures that it has the right number and kind of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. an effort to anticipate future business and environmental demands upon and organization and to provide personnel to fulfil that business and satisfy that demand

Human resource planning must be integrated within the organizations strategic plans
Senior management must emphasize the importance of human resource planning Human resource planning must be based on the most accurate information available Human resource planning must be assigned or located within a central unit A clear plan must be developed with associated time-spans and scope of activity

HUMAN RESOURCE PLANNING

It is the process by which management determines how an organization should move from its current manpower position to its desired manpower position. Through it management strives to have the right number and the right kind of people at the right places, at the right time, doing things which result in both the organization, and the individual receiving, maximum long-rang benefit

Nature of HR Planning

Ascertaining of the manpower needs An inventory of existing manpower Determine the shortfall of manpower Initiation of various organization programmes Acquisition ,utilization, improvement and preservation of the organization

Objective of HR Planning

Optimum use of HR currently employed

Avoid Imbalance in demand

and supply of HR To forecast future requirements for HR To provide control measures To link HRP with Organisational Planning To determine levels of Recruitment and Training

To estimate cost of Hr and Housing needs of Employees To provide a basis for MDP To facilitate productivity Bargaining To meet the needs of Expansion and Diversification programmes

Need and Importance of HRP

To carry on its work and to achieve its objectives HRP identifies gaps There is need to replace employees HRP facilitates expansion and growth HRP helpful in effective utilization of HR and Technology

HRP is useful in anticipating Cost of HR which facilitates budgeting easier HRP facilitates Career and succession planning HRP helps in planning for physical facilities like canteen staff quarters etc

Why HRP gained so much focus in recent times

Employment situation Technological Changes Organizational Changes Demographic Changes Lead time Hiring costs Increased Mobility Shortage of Skills Legislative Controls Pressure Groups Systems Concepts

Process of HRP

Determine objective of HR planning Analyzing current manpower inventory Forecasting Demand for HR Forecasting supply of HR Estimating Manpower Gaps Action Planning Monitoring and Control

Quantitative and Qualitative Aspects of HR Planning

Quantitative Aspects Demand Forecasting Managerial Judgment Work Load Forecasting Supply Forecasting

Qualitative Aspect Job Description Job Specification

Job Analysis

Job Analysis is a detailed and systematic study of jobs to know the nature and characteristics of people to be employed for each job This is a process of discovering and identifying the pertinent information relating to the nature of a specific job

Job Analysis

Job analysis is a formal and detailed study of jobs It refers to a scientific and systematic analysis of a job in order to obtain all pertinent facts about the job It is essentially a process of collecting and analyzing all pertinent data relating to a job

Following data is required for Job Analysis

Job Identification Nature of job Operations involved in doing the job Material & Equipments to be used in doing the job Related with other jobs Personal attributes required to do the job

Objectives of Job Analysis

Job Redesign Work Standards Recruitment Selection Training Performance appraisal Job evaluation Safety

Benefits of Job Analysis

Organizational Design Human Resource Planning Recruitment and Selection Training and Development Performance Appraisal Career Path planning Job Design Job Evaluation Labour Relation Employee Counselling Health and Safety

The process of Job Analysis

Organisational Analysis Organising Job Analysis Programme Deciding the uses of Job Analysis Information Selecting Representative Jobs for analysis Understand Job Design Collection of Data Developing a Job Description Preparing a Job Specification

Techniques of Job Analysis

Personal Observation Interview Questionnaire Critical Incidents Log Records

Job Description

Job Description is an organised factual statement of job contents in the form of duties and responsibilities of a specific job. Job description document discloses what is to be done ,how is to be done and why it is to be done.

Content of the Job Description

Job Title Job Location Job Summary Duties to be performed Machines, tools and material Related to other jobs Nature of Supervision Working Environment

Roles of Job Description

(1) Employment of Human Resources By what kind of ways does a company employ excellent human resources? -Contents and qualification of the job should be clarified and understood easily. -Job Description includes contents and qualification of each job.

(2)Mutual Relations among Departments What are relations among departments in a company? -Analysis of jobs is conducted by Job Description. Job analysis includes each departments goals and functions. -Relationship among departments can be understood by using Job Description.

(3) Promotion and Career Path How does management explain promotion and career path* to employees? (*opportunity of promotion) -Promotion and career path are explained through Job Description. -Necessary ability and qualification to fulfill each job are clarified in Job Description.

(4) Determination of Salary Level How is salary level determined? What is the basis for salary? -Salary level is determined by contents and difficulty of each job described in Job Description. -Difficulty of each job is determined by job evaluation and job standards for typical jobs are established.

(5) Job Evaluation and Standards What makes us understand differences among jobs and more difficult (that is, higher salaried) job ? -Difficulty of each job is determined by job evaluation and job standards for typical jobs are established. -Salary level is determined by contents and difficulty of each job described in Job Description. (6) Performance Measurement What is the basis for performance measurement? -Performance is measured compared with performance planning in Job Description.

(7) Training Needs How can the management find training needs of employees? -Difference between planning and performance is regarded as training needs of employees. (8) Selection of Human Resources How should the management find and select employees? -Excellent performers can be found by the difficulty of jobs they try and the result of performance measurement

Job Specification

Job specification is also a document which states the minimum acceptable human qualities necessary to perform a job properly. Job specification translate the job description into human qualification and some other levels of performance for successful performance of the job

Differentiate between Job Description and Job Specification

Job Description is a functional description of what the job entails. And define the purpose and scope of a job. It is a written record it contains title, location, duties, responsibilities, working conditions, hazards and relationship with other jobs.

Job specification is a statement of the minimum acceptable human qualities required for the proper performance of a job. It includes physical, mental, social, psychological and behavioral characteristics of a person

UNIT-3

Recruitment

Recruitment is the process of searching the candidate for employment and stimulating them to apply for job s in the organization Recruitment refers to the attempt of getting interested applicants & creating a pool of prospective employees so that the management can select the right person for the right job from this pool.

The sources of Recruitment

Internal Sources Transfers Promotions

External Sources Press Advertisements Educational Institutions Placement Agencies Employment Exchanges Labour Contractors Unsolicited Applicants Recommendations Recruitment at Factory gate Online Management Consultants

Recruitment Process

Requisitions for recruitment from other department Locating and Developing the sources of Required number and type of employees Identifying the prospective employees with required characteristics Communicating the information about the organization, the job and the terms of conditions of service. Encourage the identified candidates to apply for jobs In the organization. Evaluating the effectiveness of recruitment process.

Steps in Recruitment Process:

Recent Trends in Recruitment

Outsourcing Websites Poaching/Raiding

Internal Source

Merits
Employees Motivation Increase Moral Industrial Peace Cheaper Prepare employees for higher jobs Shifting Workforce from surplus department

Demerits
Scope of fresh talent is reduced Employees become lethargic Frequent transfers reduce productivity

External Sources

Merits
Qualified Personals Wider Choice Fresh Talent Competitive Spirit

Demerits
Dissatisfaction from existing staff Lengthy Process Costly Uncertain Response

What is Selection?

Selection is the process of choosing the most suitable persons out of all the applicants. Selection is a process of matching the qualifications of applicants with the job requirements. It is the process of weeding out unsuitable candidates and finally identify the most suitable candidate. The purpose of Selection is to pick up the right person for every job. Selection is negative process as it rejects a large number of unsuitable applicants from the pool.

Selection

The next step after recruitment is the selection of candidates for the vacant positions from among the applicants Selection is the process of

choosing the appropriate candidate from the obtained applications to match the requirements of the job

A process of matching individual skills and job requirements

Goals of Selection Program

EFFECTIVENESS

EFFICIENCY

LEGALLY COMPLIANT

Selection

The goal of selection isnt always to find applicants who have the most of a given quality
Selection is the search for an optimal match between the job and the amount of any particular characteristic that the applicant may possess

Eg. depending on the job, more intelligence always isnt better than less

Selection

Challenging to cope with all possible objectives of a selection system One of the initial tasks is to identify which objective is most important for its circumstances
Design of the selection process has to be based on

HRP Job Analysis Job Description Job specifications

Why is selection important?

Create stable Work force Keep rate of Absenteeism low Keep labour turnover low Moral of employees are high Higher efficient employees are higher Achieve objective efficiently Rate of Industrial Accidents will be low Higher job satisfaction

Factors of Selection

Many factors in the external and internal environment influence selection The amount and type of selection process is influenced by various internal characteristics, viz.

size complexity technological volatility

Internal Factors

Development & implementation of large-scale selection efforts is costly Larger organizations with economic means deploy complex selection systems Sufficient number of job vacancies are needed to recover the costs of developing expensive selection system

Internal Factors

In structurally complex organizations with many job titles but very few occupants, time needed to recover the money invested in selection system may take many years Attitude towards hiring from within is also an important determinant of the kind of selection system that an organization develops

External Factors

Organizations are subject to the legal framework of the country Size of the labour markets Composition of the labour markets Availability of local labour markets Economic, social, and political pressures on a community

when unemployment rates are low, its difficult to identify, attract, hire the no. of people required

Selection Procedure

Preliminary Interview Receiving Applications Screening of Application Employment Test Physical Examination Checking Reference Final Selection

CV Review/ preliminary screening application blank

Conducting Tests & Evaluating Performance

Preliminary Interview Domain Interview Selection Decision Job Offer

Background & Reference Checks

Physical Examination

Placement

Selection

The next step after recruitment is the selection of candidates for the vacant positions from among the applicants Selection is the process of

choosing the appropriate candidate from the obtained applications to match the requirements of the job

A process of matching individual skills and job requirements

Methods of Selection

(a) Tests: 1. Aptitude Tests: Mental or Intelligence test Mechanical test Psycho-motor test 2. Trade/Proficiency tests: - Job Knowledge test - Work sample test

3. Personality Tests: Objective test Projective test Situation test 4. Interest Tests:

Selection Outcomes

JOB PERFORMANCE

RIGHT CANDIDATE

Correct Decision

UNSUITABLE CANDIDATE

Correct Decision

UNSUITABLE CANDIDATE

RIGHT CANDIDATE

Wrong Decision

Wrong Decision

ACCEPT

REJECT

Outcomes of Selection

Four possible outcomes of selection

two of the possible outcomes have positive impact on the organizations other two have negative effect

Positive Outcomes
selecting the right candidate rejecting unsuitable candidate

Negative Outcomes

selecting an unsuitable candidate rejecting the right candidate

Job applications are reviewed; those who do not match the required basic criteria are rejected Applicants have to complete application blanks Application blanks ask for enough information to determine whether the applicant is minimally qualified for the position

Preliminary Screening

This eliminates subsequent interviews to gather this information

Personal information Educational Qualification Work Experience Salary Personality Items (strength, weakness, career goals) Reference Checks

Preliminary Screening

Biographical Information Blank (BIB)

usually contains many more items than a typical application blank asks for information related to attitudes and experiences based on an assumption that these prior behaviours & experiences are good predictors of an applicants future behaviour

Employment Tests

A mechanism (either a paper-pencil test or a simulation exercise) that attempts to measure certain characteristics of applicants

skill level psychometric test to assist attitudes & personality intelligence, et al

Very expensive to develop a test & many employers purchase existing tests These devices should be validated before it is actually used to make selection decisions

Employment Tests

The type of test that is ultimately used will depend on a no. of factors

budgetary constraints complexity & difficulty of the job the size & quality of applicants KSAOs required by the job

Intelligence Tests
logical reasoning, judgement, memory general mental ability, GK word fluency, verbal comprehension numbers, analytical skills

Employment Tests

Aptitude tests

measure an individuals ability to learn a given job when given proper training also termed proficiency or knowledge tests measure the job-related proficiency & knowledge test the applicants likely responses to real life business situations include GD, simulated business games, etc

Achievement tests

Situational tests

Employment Tests

Interest tests

help in identifying & understanding the degree of interest of the applicant in a job they are generally inventories of the likes & dislikes of candidates vis a vis

work, job, occupations, hobbies, recreational activities

Personality tests

are intended to assess an individuals value system, emotions, maturity, self confidence, optimism, decisiveness, other personality traits the least reliable of employment tests

Benefits of Employment Test

Test is an objective and standardize sample of certain qualities Identify talent of individual Reduce the cost of selection and placement To know the aptitude of candidate Healthy Basis for comparing applicants background

Limitation

Test measure only a part of the test information for correct decision Cant predict the chances of success Candidate can be nervous No test can measure the complex combination of characteristics required.

Development of test

Analyze the job Selection of Test Procedure Preliminary tryout and refinement Validation of test procedures Combination of test into a battery Administration of Tests

Interview

Selection procedure designed to predict future job performance on the basis of applicants oral responses to oral inquiries Interviews help in assessing the candidate and validating the information provided in his application Forms a part of the recruitment process employer can sell his organization & the job to the candidate

Interview

Interviewer bias can be a disadvantage in making selection decisions

halo effect opinion, values, perception of the interviewer timing and setting of the interview can also influence outcome Can only test the personality of the candidates

Two strategies for making most out of an interview

structuring the interview to be reliable and valid training managers to use the best available interviewing techniques

Significance of Interview

Evaluate various aspects of personality Evaluate to judge the candidate correctly Cheaper and time saving Mental and social makeup of candidate

Interview procedure

The extent to which the applicants previous work experience resembles the work in the post to be filled in The applicant normal working tempo The applicant social background, education and achievement The applicants initiative and decision making skills The applicant attitude towards authority and descipline

Different types of Interview

(b) Interviews 1. Informal Interview 2. Formal Interview 3. Patterned or Structured Interview 4. Non-Directed or Unstructured Interview 5. Depth Interview 6. Group Interview 7. Stress Interview 8. Panel or Board Interview

Preliminary Interview

Brief first round interviews that aim to eliminate the applicants who are obviously unqualified for the job Generally informal and unstructured interviews Conducted even before the candidates fill in the application blanks More obvious facts and information can be gathered Enables managers to quickly evaluate the candidate

Selection Interview

Non-structured

interviewer asks questions as they come to mind no set format to follow more open ended questions candidates are more comfortable tend to be more subjective

Structured

questions are specified in advance the responses may be rated for appropriateness of content based on thorough job analysis

Structured interviews

Structured interviews are generally more valid as theres no scope for subjectivity The same set of questions are asked to all the candidates, which helps in better evaluation Can also help inexperienced interviewers to ask questions and conduct useful interviews Dont always leave the flexibility to pursue points of interest as they develop

Interview

In-depth interview suitable for high-end technology, high-skill jobs Experts in the relevant area test the candidates knowledge and understanding of the subject and assess his expertise Panel interview candidate is interviewed simultaneously by a group (or panel) of interviewers Interviewers can be from various departments Improves cross-functional interactions & reduces subjectivity

Induction/Orientation
Definition:

Orientation or induction is the process of receiving and welcoming an employee when he first joins a company and giving in the basic information he needs to settle down quickly and happily and start work.

Orientation

Introduction of a new employee to his/her job and the organization. A program designed to help employees fit smoothly into an organization; also called socialization. Orientation or socialization is designed to provide new employees with the information needed to function comfortably and effectively in the organization.

1. 2.

3.

It conveys three types of information: General information about daily work routine. Review of organizations history ,purpose operations, and products or services and contribution of employees job to the organizations needs. Presentation of organizations policies, work rules and employee benefit.

Types of Orientation

1.

Two types of orientation:

Work unit orientation: Familiarizes employee with goals of work unit, contribution to the units goals, introduction to co-workers. Organization orientation: Informs employee about the organizations objectives, history ,philosophy procedures and rules, human resource policies and benefits. Tour of organizations work facilities.

2.

Advantages and Objectives of an Orientation programme

Objectives:
1. To help the new come to overcome his shyness To build new employees confidence To develop the new entrants a sense of belonging and loyalty To foster a close and cordial relationship To prevent false impression and negative attitude of the new employees To give the new comers necessary information like canteen, locker room. Rest periods and leave rules etc

Advantages:
It helps to build two way communication It facilitates informal relations and team work Induction is helpful in supplying information about the organization, job, and welfare of employees Proper Induction will reduce employees grievances, absenteeism and labor turnover Induction helps to develop good public relations and improve the overall morale of employees An Induction programme proves that the company is taking a sincere interest in getting him off to a good start

Contents of an Induction programme

Brief history and operations of the company. Products and services of the company. The companys organization structure. Location of departments and employee facilities. Policies and procedures of the company. Rules, regulations and daily work routines. Grievance procedures. Safety measures Standing orders and disciplinary procedures Terms and conditions of service including wages, working hours, over time, holidays etc. Suggestion schemes Benefits and services for employees. Opportunities for training and promotions transfers etc.

PROMOTION

Promotion refers to advancement of an employee to a higher post carrying greater responsibilities, higher status and better salary. It is the upward movement of an employee in the organization's hierarchy, to another job commanding greater authority, higher status and better working standards.

Promotion Policy

Promotion policy should be in writing Promotion policy should be understood by all It may also lay down that if senior person is not selected for promotion, he will be told the reason for this

How can a promotion policy be successful

Employees assessment and confidential reporting system should be objective Every employee should have faith in the promotion policy It is induced for better performance to get promotion Promotion policy must be flexible Sound promotion policy demands that internal staff should be given fair chance of promotion before posts are filled from external source

Benefits of promotion policy

Act as an incentives Recognition to an employee Increase job satisfaction of employees Increase the effectiveness of the organization Help to keep an effective force of employee Develops employees loyalty

Criteria of Promotion

Seniority-length of service Merit

Transfer
A transfer refers to a horizontal or lateral movement of an
employee from one job to another in the same organization without any significant changes status and pay. It has been

defined as lateral shift causing movement of individuals

from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation

Need and purpose of Transfers

1. To meet organizational needs 2. To satisfy employee Needs 3. To better utilization of Employees 4. To make the Employee More versatile 5. To adjust the work force 6. To provide Relief 7. To Punish Employees

Types of Transfers
1.

Production Transfer 2. Replacement Transfer 3. Versatility Transfer 4. Remedial Transfer 5. Shift Transfer

Transfer Policy

It must be put in written and should meet the following requirement: Transfer policy should specify clearly the type and circumstances under which transfer will be done It should lay down the basis for transfer It should indicate the executives responsible for initiating and approving the transfer It should prescribe whether the transfer can be made only within the department or also between the different departments It should prescribe whether when an employee is transferred ,his previous seniority credit will be retained

Demotion

Demotion implies the assignment of an employee to a job of lower rank with lower pay. It refers to downward movement pf an employee in the organizational hierarchy with lower status and lower salary. It is downgrading process and a serious type of Punishment, hence it should be used tactfully and only when it is absolutely necessary.

Need for Demotion: Why and When

1.

Adverse Business Conditions 2. Incompetence 3. Technological Change 4. Disciplinary Measure.

Seperations

Separation of an employee takes place when his service agreement with the organization come to an end and the employee the organization. It may occur due to resignation, death, dismissal and layoff. Following are various forms of separations. Resignation Retirement Layoff Retrenchment Dismissal

Retirement

Retirement of an employee is an important event in his life and also has an important impact on the organisation where he worked for a major portion of his life . Retirement may be of the following kinds: Compulsory Retirement Forced Retirement Premature Retirement

Human Resource Development