UNIT-II

Human Resource Planning

“Human resource planning is a process of

determining and assuming that the organization will
have an adequate number of qualified persons,
available at the proper times, performing jobs which
meet the needs of the enterprise and which provide
satisfaction for the individuals involved”.

- Beach
 Features of HRP

 Forward looking (future oriented)

 On going process
 Integral part of corporate planning
 Both quantitative and qualitative aspects
 It can be long term and short term
 Two phase process
 It leads to the optimum utilization of human resources
 Primary responsibility of higher management
 Objectives of HRP

 To ensure optimum use of existing H R

 To forecast future requirements of H R
 To provide control measures for demand and supply
 To link HRP with organizational planning
 To identify the gap between ,the existing HR and
required HR and fulfill that GAP
 To anticipate the impact of technology on jobs & HR
 To determine the level of recruitment and training to
meet the needs of expansion and diversification
programs
 Importance of HRP

 Helps in employment and deployment

 Useful in anticipating the cost of HR which facilitates the
budgeting process
 Useful in facilitate career succession planning in the organization
 Helps in planning for physical facilities like Canteen, staff
quarters, dispensaries etc.
 Helps in identifying the gap b/w existing and required HR
 Helps in expansion and diversification programs
 Human Resource planning
Process
Corporate Analysis
•Objectives & Strategies
Manpower Objectives & Policies

•Company Organizational plan

Modified Organizational Plan

•Market Forecast
•Financial Plan
•Production Target

Demand Forecast Manpower Gaps Supply Forecast

•Numbers •Manpower inventory
•Job Categories •Surplus of numbers and skills •Losses & Additions
•Skills Requirement •Shortages •External Supply

Manpower Plans
•Recruitment & Selection
•Training & Development
•Retrenchment
•Retention
•Productivity

Monitoring and Control

 Level of HRP
 National level
 Sectoral level

 Industry level

 Unit level
 Limitations of HRP

 Inaccuracy

 Employee resistance
 Uncertainties

 Inefficient information system

 Lack of top management support

 Time and expense

 Unbalanced focus
 Guidelines for Effective HRP

 It should have proper balance with cooperate

plan.
 There should be appropriate time horizon.

 Top management support should be there.

 Participation from all the levels should be

there.
 It should have proper information system.
 Recruitment
 Recruitment is the process of searching for
prospective employees and stimulating &
encouraging them to apply for job in an
organization.
- Flippo

 Recruitment is the process to discover the source of

manpower to meet the requirements of the staffing
schedule and to employ effective measure for
attracting that manpower in adequate number to
facilitate effective selection of an efficient working
force.
- Yoder
 Need of Recruitment

 Planned needs

 Anticipated needs

 Unexpected needs
 Features of Recruitment
 It is a process or series of activities.
 It’s a linking activity between Job & Jobseekers.

 It’s a positive function.

 It’s a pervasive function.

 It’s a two way process.

 It’s a complex activity.

 Its an important function.

 Types of Recruitment
 Centralized recruitment
 Decentralized recruitment
 Sources of Recruitment
Internal Sources External Sources
 Transfers  Press advertisement
 Promotions  Educational Institutions
 Placement Agencies
 Employment Exchange
 Labor contactors
 Recommendations
 Gate Recruitment
 Similar organization
 Casual Callers
 Methods of Recruitment
 Direct Method
 Indirect Method

 Third Party Method

 Direct Methods
 Campus Selections
 Manned Exhibits
 Indirect Methods
 Through Advertisement
 Gate Recruitment
 Third Party Methods
 Placement Agencies
 Recommendations

 Employment Exchange

 Labor contractors
 Recruitment Process
Human Recruiting Selecting
Placing Selected
Resource required qualified
Personnel on Job
Planning personnel Personnel

Finding and Developing Search for prospective employee Evaluating

sources of (a) Developing Techniques effectiveness
Potential employees (b) Attracting Candidates Of recruiting

Personnel Research Transferring to new jobs

Job Posting Upgrading in same position

Internal Sources
Experience Promoting to higher jobs

Employee Referral Providing information

External sources Advertising

Clarifying doubts
Scouting
 Difference b/w Recruitment
and Selection
Recruitment Selection

 It involves identifying the source of  It’s the process of choosing the

manpower and stimulating them to best out of those recruited
apply for the job

 It’s a positive function  It’s a negative function

 Its search for the desired  It matches the search candidates

candidate
with the job & choose the best
among them
 Selection

 “Selection is the process of Choosing the most suitable

person out of all the applicants”.

 “Selection is process of matching the qualifications of

applicants with the job requirements”.
 Features of Selection

Selection divides applicants into two

categories:-
Suitable
Unsuitable

•Recruitment technically precedes selection

Process of Selection
Preliminary Interview

Application form R
E
Selection Test
J
Selection Interview E
C
Physical Examination
T
Reference check I
O
Final approval N
Employment
 Case Study
Mariam has been a data processing supervisor for two years. She is in the
process of selecting a candidate for a programmer trainee position she has
created. Her plan is to develop the trainee into a system analyst within two
years. Since this is a fast track, she needs a candidate whose aptitude and
motivation is high.
Fourteen candidates applied for the job in the employment section of the
human resource department. Six were women, eight were men. An employment
specialist screened the candidates for mariam using a carefully prepared
interview format that included questions to determine job-related skills. Six
candidates, three women and three men, were referred to mariam.
Mariam then conducted structured, in-depth interviews and further
narrowed the selection to one woman and two men. Her boss, a company vice-
president, agrees with her judgement after hearing mariam’s description of the
candidates. However, mariam’s boss feels particularly unsure of the abilities of
the female candidate. From the selection interview, past job experience and
education, there is a no clear indication of the candidate’s ability to perform the
job. the vice-president is insistent that Mariam should screen the candidate with
a programmer aptitude test devised by a computer manufacturing firm. The test
had been given four years ago and some of the most successful current analysis
had scored high on it.
Mariam went to the human resource department and asked them to
administer the test of the questionable candidate. The human resource manager
informed her that the company policy had been to do no testing of any kind
during the last two years. Mariam explained that the request had come from a
vice-president and asked that she be given a decision on her request by Friday.
Types of Selection Test
Written Test Psychological Test

Aptitude Achievement Personality Interest

Test Test Test Test
•Mental Test •Job Knowledge •Objective Test (Likings
and
•Mechanical •Work sample •Projective Test Disliking)
Test
•Situation Test
•Skilled Test
Developing a Test Programme

 Deciding the Objective

 Analyzing Jobs

 Choosing Test

 Administrating the Test

 Establishing the criteria of job success

 Analyzing the results

 Essentials for good test
 Validity

 Reliability

 Standardization

 Objectivity

 Weightage

 Competent person
 Tailor made
 Recruitment Policy

Recruitment policy specifies the objective

of recruitment and provide a framework for
the implementation of the recruitment
programme.
 Prerequisites for a good
recruitment Policy
 It should not avoid by the relevant public policy, law and
legislation.
 It should provide to employees job securities and
continuous employment
 It should integrate organizational and employee needs
 It should provide each employee freedom and
opportunity to utilize and develop knowledge & skills to
the maximum possible extant
 It should treat all employees fairly and equitably
 It should provide suitable jobs to the job seekers
 It should be flexible enough to meet the changing needs
of the organization.
 Principles of Recruitment &
Selection Policy

 To find and employ the best person for each job.

 To retain the most promising of those hired.
 To offer promising opportunities for life time working
careers.
 To provide facilities and opportunities for personal
growth on job.
 Placement
 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 a matching of what he imposes in strain, working

conditions, and what he offers in the form of payroll,
companionship with others, promotional possibilities, etc.
 Induction

“It is the process of receiving and welcoming an

employee when he first joins a company and giving him
the basic information he needs to settle down quickly
and happily and start work.”
- Myers
 Objectives of Induction

 To help the newcomer overcome his natural shyness and

nervousness in meeting new people in a new environment.
 To build up the new employee’s confidence in the organization
and in himself so that he may become an efficient employee.
 To develop among the newcomers a sense of belonging and
loyalty to the organization.
 To foster a cordial relationship between the newcomers and the
old employee and their supervisors.
 To ensure that the newcomers don’t form false impression and
negative attitude towards the organization and the job.
 To give the newcomers necessary information about rest hours,
lunch hours, leave rules etc.
 Advantages of Formal Induction
 It helps to build up a two way channel of communication
between management and workers.

 Proper induction facilitates teamwork among employees.

 It helps to integrate the new employee into the

organization and to develop a sense of belonging.

 It is helping in supplying the information concerning the

organization, the job and employee welfare facilities.

 It reduces employee grievances, absenteeism and labor

turnover.

 It helps to develop good public relations.

Contents of Induction Programme

 Brief history and the operations of the company

 Products and services of the company
 The company’s organizational structure
 Location of departments and employees facilities
 Politics 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, overtime, holidays, etc.
 Suggestion schemes

 Benefits and services for employees

 Opportunities for training, promotion, transfers,

etc.
 Socialization
 It is the process of adaptation.
 It includes the Induction.

 Induction confined to new recruits whereas

socialization also covers, cases of transfers and
promotions.
Outcomes

Commitment

Pre-arrival Encounter Metamorphosis

Productivity
 Job analysis

“It has been defined as the process of

determining by observation and study the tasks,
which comprise the job, the methods and
equipment used, and the skills and the attitudes
required for successful performance of the job”.

It is a part of overall work planning called ‘Job

Design’.
 Important Terminology
 Job

 Position

 Occupation

 Duty

 Task

 Job Family
 Job Classification

 Job Evaluation
 Objectives of Job Analysis

 Job Redesign
 Work Standard

 Support to recruitment, selection, training,

safety etc.
Areas of application for Job Analysis
Job Analysis

Performance
Job Description Job Specification Job Evaluation
Appraisal
 Techniques of Job Analysis
(Methods of Data collection)

 Job Performance
 Personal Observation

 Interview

 Questionnaire

 Critical Incidents

 Log Records
Process of Job Analysis
Collection of Background Information
• Organizational Charts
• Class specification
• Work flow charts

Deciding the uses of Job Information

- Procurement - Integration
- Development - Maintenance
- Compensation

Selecting the Representative Job

•Number of Jobs to be analyzed
•Priorities of different jobs

Collection of job information

Job description Job Specification

Job Description

Job Description is a written record of the

appropriate and authorized contents of a job.
Uses of Job Description

 Job Grading and Classification

 Placement of new employees on the Job

 Orientation

 Promotion and Transfer

 Employee Counseling
Contents of Job Description

 Job Identification
 Job Summary
 Job duties and responsibilities
 Working conditions
 Social environment
 Machines, tools and equipments
 Supervision
 Relation to other jobs
Job Specification
Job Specification is the record of:

 Physical Characteristics
 Mental Characteristics
 Social and Psychological Characteristics
 Personal Characteristics
Dimensions Job Description Job Specification
A written statement of the A written statement of the
Meaning contents of the Job qualities required for
performing a job

Title, Duties, working Education, training,

Contents Conditions, supervision etc experience required for a
particular job

To facilitate recruitment,
To identify, define and
selection, training etc of
Purpose describe a job
people for the job

Prepared before job

Prepared after job Description
Sequence specification
 Case Study- 2
Rane is a Branch Manager of a reputed Bank and has earned a reputation for
efficient operations. Recently, a divisional manager telephones Rane that a new
Branch Office was to be opened in another city. The divisional manager also
informed Rane that senior management is highly pleased with the way his
branch office has been functioning in the past and would like him to recommend
someone from his office for promotion as Branch Manager to manage the new
Branch.
Rane started analysis of his subordinate staff to determine who might
make a good manager. He has narrowed his choice down to two persons within
his office: Ms. Anita and Mr. Malla. Both Anita and Malla are young persons in
early Forties. Each has a management degree from reputed institutes. Anita
usually seems more effective and tactful when dealing with customers. Both
have low absenteeism record and either one would probably make a satisfactory
manager for the new branch of the bank.
Rane has an impression that most people prefer male supervisors and
women generally are not really interested in career and as manager might
develop aggressive female tendencies. As such Malla may be an effective
manager in a new work place. Hence he recommended Malla for promotion as a
branch manager in the bank’s new branch.

Questions:-
1) If you were Rane, whom would you recommend as head of the new Branch?
Give arguments in favor of your recommendation.
2) As HR Manager, how would you handle Anita’s feelings of being ignored?
 Job Evaluation
 Job evaluation is an attempt to determine and compare
the demands which the normal performance of a
particular job makes on normal workers, without taking
into account the individual abilities or performance of the
workers concerned.

 The process of analysis and assessment of jobs to

ascertain reliably their relative worth using the
assessment as the basis for a balanced wage structure.
 Objectives of Job Evaluation
 To determine equitable wage differentials b/w different jobs in the
organization
 To eliminate wage inequities
 To develop a consistent wage policy
 To establish a rational basis for incentive and bonus schemes
 To provide a framework for periodic review and revision of wage
rates
 To provide a basis for wage negotiations with trade unions
 To minimize wage discrimination on the basis of age, gender,
caste etc.
 To enable management to gauge and control the payroll cost
Advantages of Job Evaluation
 It’s helpful in developing an equitable, rational and consistent wage
and salary structure.

 It helps to improve industrial relations

 It helps in increasing job satisfaction

 It helps in fitting new jobs at appropriate jobs

 It provides a clear basis for wage negotiation

 Helps in redesign the jobs

 Data generated in job evaluation is very useful in selection,

placement and training of employees.
 Limitations of Job Evaluation
 It is not fully scientific

 It fails to consider several factors such as security of

service, social status etc

 It is inflexible in nature

 Its generally not suited for managerial jobs

 Some methods are difficult to understand

 It is time-consuming and expensive process

Essentials of successful Job Evaluation
 Top management support

 Operating manager should be convinced

 Proper information system

 All groups and grades of jobs should be covered

 Simple techniques should be used

 Support of trade unions

 Factors selected for job evaluation should be measurable

 Should not involve unreasonably high cost of installation

 Focus should not be on jobholder

 It should adversely affect the terms and conditions

Dimensions Job Evaluation Performance Appraisal

Meaning It is the assessment of various jobs It is the assessment of performance

to find out their relative worth of different employees performing
the same job

Subject Matter It takes into the consideration the It takes into consideration the
requirement of different jobs performance of different
individuals

Purpose Its purpose is to identify the basis Its purpose is to identify the basis
for fixing wages, salary of various for decisions concerning pay raise,
jobs promotions etc

Timing It is done before an employee joins It is done after employee joins and
performs the job
Process of Job Evaluation
Gaining Acceptance

Constituting job evaluation committee

Selecting jobs to be evaluate

Describing the jobs

Selecting the methods of evaluation

Weighting job factors

Assigning money values

Periodic review
 Methods of Job Evaluation
 Non- Quantitative
 Ranking or Job Comparison
 Grading or Job Classification

 Quantitative
 Point Rating
 Factor Comparison
 Ranking or Job Comparison

 Job Description
 Pair Comparison

 Ranking along a Number Line

Grading or Job Classification
 Point Rating Method
 Determine the job to be evaluate
 Select the factors

 Define the factors

 Determine the degrees

 Determine relative values of job factors

 Assign point values to the degrees

 Find point value of the job

 Assign money values

Factor Comparison Method
It involves the following steps:
 Select and define the factors

 Select key jobs

 Rank key jobs by factors

 Decide rates for key jobs

 Apportion the wage rate

 Evaluate the remaining jobs

 Comparative study of job evaluation
Methods
Attributes Ranking Job Grading Factor Point system
Method Comparison
Popularity Least Popular