Human Resource Planning

Human Resource Planning is a process of

determining the number and types of
people/staff required by an organization in
future. It is concerned with right number of
people with right kind of skills.
 
 Objectives of HRP

• Determining the personnel needs of the organization;

• Planning the desired profile of personnel – like qualification skills,

knowledge, experience etc;

• Identifying the areas of critical HR shortages;

• Identifying the surplus of personnel;

• Identifying training & development needs;

• Finalizing managerial succession plans.

 
 
Components of Hiring Process

Recruitment

Selection

Socialization
 Job analysis Human resource
Planning

Job description

Recruitment

Selection

Relationship among Job Analysis, Human Resource Planning, Recruitment & Selection.
 Job Analysis
It is the systematic process of collecting
information used to make decisions about
jobs.

Job analysis identifies the tasks, the duties, and

the responsibilities of a particular job.
 Elements of Job Analysis
• Job Description: Describes and defines a job in
terms of its duties, responsibilities, working conditions
etc;
• Job Specification: describes the requirements of
individual in terms of his knowledge, education,
experience etc. in doing a given job;
• Job Evaluation: Assesses the relative/comparative
worth of a job in terms of its contribution/importance to
overall organizations goals.
 Job Analysis
Is the process by means of • Job Analysis is intended to
which a description is
developed of the present job, reveal what is actually done
method & procedures of doing
a job, physical conditions in as opposed to what should
which the job is done, relation
of the job to other jobs and
be done.
other conditions of
employment.
• The purpose of JA is to show
to the management how at
the moment a particular job
is being carried out.

Job Analysis
Points on which information
may be gathered
• Job title
• Work performed
• Equipment used (if any)
• Tools & Materials used
• Education (general, technical) required
• Experience
• Physical effort
• Responsibility
• Discomforts
• Hazards
• Supervision (close or general) received
• Supervision (close or general) given
• Any other (no. of men or women to be
employed)
Job Analysis • Questionnaire
Obtaining data for JA

– Through mail surveys

– Info gathered from job
incumbent
– Suitable for clerical jobs
– Time consuming
 • Checklist
Job Analysis – A worker presented with a
Obtaining data for JA list of probable tasks
performed by him
– Worker asked to tick the
tasks performed by him
– Does not provide an
integrated picture of the
tasks performed by him
– Easy to administer
 • Interview
– Group of job incumbents
Job Analysis
Obtaining data for JA
selected for extensive interview
– Carried out individually or in
group
– Replies from incumbents
combined into a single job
description
– Integrated picture of job
obtained
– Many new things about the job
revealed
– Costly & time consuming
 • Observation
– Followed right on the job
Job Analysis
Obtaining data for JA
– Analysts observes the incumbent
as he performs the job
– Probes the incumbent to gather
data about the job
– Slow & costly
– Interferes in normal work
operations
– Produces a good & complete job
description
– Desirable where manual
operations are prominent
 • Participation
Job Analysis – Job performed by the
Obtaining data for JA analyst himself
– Good for simple jobs
– For complex jobs advanced
training required by the
analyst
– Time consuming
Job Analysis
Obtaining data for JA
Technical conference
– Info gathered from
supervisor and not the
actual job incumbent
– Supervisor may have poor
knowledge about the job
 • Self- recording
Job Analysis – Record daily activities using
Obtaining data for JA a log book or dairy
– Useful for high managerial
jobs
 • Critical incident
Job Analysis – Supervisor to give on the job
Obtaining data for JA note worthy instances of job
holders behavior

– (Uses for students)

 Job Description

A job description is an organized, factual

statement of duties & responsibilities of
a specific job. It should tell what is to be
done, how it is done and why it is done.
It is a standard of function, in that it
defines the appropriate & authorized
content of a job.
 • job title, code number,
department/division.
Job Description
Information contained in JD
• Job contents in terms of
activities or tasks performed.
• Job responsibilities towards
effective performance of the job.
• Working conditions specifying
specific hazards.
• Social environment prevailing at
the workplace.
• Extent of supervision given &
received
 Job specification
“Job specification is a statement of the
minimum acceptable human qualities
necessary to perform a job properly …. It is a
standard of personnel & designates the
qualities required for acceptable
performance” (Filppo)
 • Personal characteristics such as age,
sex, education, job experience &
Job specification extra & co-curricular activities;
Basic contents in JS
• Physical characteristics such as
height, weight, vision, hearing,
health, voice, poise & hand etc.
• Mental characteristics such as
general intelligence, memory,
judgment, foresight, ability to
concentrate, etc.
• Social & psychological characteristics
such as emotional stability, flexibility,
manners, initiative, drive,
conversational ability, creativity, etc.
Recruitment & Selection
Steps involved
• Placing the requisition
• Recruitment 
•  Selection
•   Placement &
•   Induction
 Placing the requisition
• Specifies the jobs or operations or positions
for which persons are required ;

• The no. to be recruited;

• The time by which the persons should be

available etc.
 Recruitment

The process of searching

prospective workers &
stimulating them to apply for
jobs in the organization
Recruitment • Communication medium
Mating theory
 
• Job seeker to perceive a
match between his
personal & prescribed job
requirement
 
• The job seeker must be
motivated to apply
Recruitment
Factors affecting recruitment efforts
• Image of the organization
• Attractiveness of the job
• Organizational Policies
• Government Influence
• Recruiting Costs

Recruitment
Internal Sources: When good
• Has proven record of effective
recruitment and selection in the past;
• Maintains an inventory of employee
skills;
• Has unbiased employee performance
appraisal system in vogue;
• Stresses on continuous employee
development;
• Has cordial labor management
relations; and
• Respects the collective bargaining
agreements; 
 • The management can easily avoid making a wrong decision by promoting
an employee who has proven his capacity and talent in the past;

• The existing employee can fit into the organizations’ culture more
Recruitment appropriately, therefore, needs less socialization effort on the part of the
organization;
Internal sources: Advantages
• The promotion of the existing employee can act as strong impetus and
source of motivation for others in the organization and encourage them to
emulate the promoted employee in performance and commitment to the
organizational goals;

• The retention of talented employees can be made possible through

internal recruiting as other employees will see their future safe and
secured in the organization;

• It is also cheap, quick, dependable and accurate source of recruitment;

• It can encourage cordial and collegial atmosphere in the organization or

labor management relations;

• It can lead to maximum possible utilization of the employee talent,

through placing him at different positions, thus the investment on human
resources can be well justified; and

• The existing employee will feel more comfortable with the organization,
thus will not hold inaccurate expectations from the organization.
 • Inbreeding can constrain the innovative and creative moves
by the organization;

Recruitment • A sense of complacency may occur in the employees if the

promotions are simply based on time-bound criterion, thus
Internal sources: Disadvantages
will significantly effect the individual and organizational
performance;

• Infighting for promotions can have a negative effect on the

morale and performance of those who are not selected;

• At times may strengthen the locus standii of the unions,

who can use it for their selfish ends;

• It will dampen the entry of the fresh blood into the

organization, thus may reduce the competitiveness of the
organization;

• Above all, internal recruiting cannot meet the demands of

the fast growing organizations especially in the service
sector.
 

Recruitment
Internal sources: Methods
Job Posting and Bidding
Here the notices regarding
the available jobs in the
organization are displayed in
central locations and
employees are given specified
period of time to respond to
the notice;
Employees are also informed
through company bulletins,
newsletters, memos circulars
etc.
 
– Both promotions and transfers should be posted;
– Openings should be posted for a specified time
period before external recruitment begins;
– Eligibility rules for the job posting system need to
be developed and communicated. For example,
one eligibility rule might be that no employee can
apply for a posted position unless the employee
has been in his or her present position say for six
months;
– Specific standards for selection should be included
in the notice;
– Job bidders should be required to list their
qualifications and reasons for requesting a transfer
or promotion; and
– Unsuccessful bidders should be notified by the
human resource department and advised as to
why they were not accepted.

Recruitment
Internal sources: Methods
Employee Referrals/Recommendations
Present employee referrals of
job candidates have assumed
a great ascendancy in the
recent past.
Also considered as external
source of recruitment
Today 80% of the IT or ITEs
companies resort to this
method of recruitment (ET.
Nov. 21, 2008)
The referred employees
• Are less expensive to recruit and
save 60% to 70% of recruitment
costs;
• Stay longer with the company;
• Adapt to the company culture
quickly;
• Are quickly searched out or
searchable;
• Instills sense of pride and
belongingness in the recommending
employee.
 • Economic greed may at times over power the
rational or considered judgment of the employee,
therefore, he may recommend a less desirable and
Recruitment unsuitable job candidate to the organization.
Internal sources: Methods
• Also the existing employee cannot be expected to
Disadvantages of employee recommend an outstanding candidate to the
referrals organization, because the very existence of such a
talented new comer may threaten him his own
position especially if they fall in same job category
and if the promotions are linked to employee
performance.

• Employee referrals may also discourage the

workforce diversity, as existing employees may be
more interested in obliging their own relations and
friends. While, this may be true for lower level and
managerial positions, in higher level positions
however, the referral will be ordinarily a professional
acquaintance rather than a friend or a relative of the
referee.
Employees hired through referral programmes

Company Percentage of Referred Employees Reasons

Checks the quality of candidates as only quality candidates are

VMoksha Technologies 35 percent referred to by an employee. Also reinstates the faith which an
employee has in the organization.

Saves a lot on direct recruiting through placement agencies.

Tavant Technologies 60 percent
Chances of a candidate taking up the offer are very high.

FCG Nearly 50 percent Brings in quality candidates in an organization.

Netkraft 35 percent Gets the right kind of people and helps in checking attrition.

An employee's productivity increases if he works in a friendly

atmosphere.The company believes that when a new employee joins
i2Technolgies 58 percent
through the referral system, he or she has a friend who also acts as a
mentor during their first few days in the company.

Source: IT vendors: abhinav@expresscomputeronline.com

 • The pool of talent available outside is
obviously large than the one available
Recruitment inside the organization;
External sources: Advantages

• The readymade technical and or skilled

employees could be cheaper and
easier for organizations to recruit than
to train and develop them internally
especially when the organization has a
pressing demand for talent/them;

• Fresh recruits can bring new insights

and perspectives to the organization,
thus, will boast competitiveness and
vigor among all.
 • Fresh recruits may take time to adjust in
the new environs and also in reading and
Recruitment understanding the culture of the
External sources: Disadvantages
organization;

• It can act as a de-motivator for the

existing workforce thus will effect their
morale and performance;

• It may also lead to hostile labor

management relations;

• New recruits could be eyesores for the

existing employees particularly in small
organizations, thus would create an
unhealthy atmosphere in the organization.
 • Advertisement
Recruitment
External sources: These may include
• Employment Agencies
• Internet or Cyber
• Colleges, Institutes.
• Unsolicited
Applications
• Job fairs
• TV Shows

Recruitment
External Sources
Employment Exchanges
There are two types of
employment agencies working
for recruiting employees for
organizations: public and
private agencies.
• In India, public employment agencies are
governed by Compulsory Notification Act
1959 and the online registration is available
for the desired unemployed youth;
• 950 employment exchanges in India with an
estimated 47,32,000 candidates registered
with them.
• Mandatory for both private and public
companies as per SC order to inform the
District Employment Exchanges about their
vacancies, though they can conduct
recruitment process themselves.
• As per SC order an establishment can be
penalized between Rs. 250 to Rs. 10000.
 1996 1997 1998 1999 2000
1 2 3 4 5 6

1. Number of exchanges 914 934 945 955 958

2. Registration (` 000 ) 5872 6322 5852 5966 4732

3. Placement (` 000 ) 233 275 233 221 132

4. Application on Live register 3743 3914 40090 4037 4146

(` 000 ) 0 0 1 0
5.Av.No.of employers using E.E. 0 0 0 0 0
(`000)

Source: Central Statistical Organization (Statistical Pocket Book, 1999, 2000)

 • The executive search which recruits
top officials for the firm are
Recruitment commonly called as head hunters.
External sources:

Private employment • Naukri.com is a very popular private

exchange agency in India. It has offices in
major cities of India and abroad in
USA.
The private
employment agencies
search out for two • Prizedjobs.com an online interactive
categories of division of M/S Placements.com
employees. Ltd., Bangalore has more than
140000 professional registered with
it within and outside India.

Recruitment
External sources: Methods
Internships
This approach to recruiting is
concerned with hiring
students as interns usually
during the summers.
Benefits of Internship
• They allow organization to get specific
projects done;
• Expose themselves to talented and potential
employees who may become their
“recruiters” at school/college;
• Provide trial-run employment to determine if
they want to hire particular people full time;
• Allows both employer and the employee a
chance to understand each other before
entering into a permanent bond of
employment relationship; and
• Can supplement the globalization efforts of
the organization.
 Benefits to recruiting firm
• Flexibility of employment,
Recruitment
External Source
• Ease of recruitment and
Temporary Worker replacement,
A “temp” is a temporary worker with • long-term cost advantages,
an organization who is on a third
party (staffing company) payroll. • Opportunity for focusing on core
The staffing company pays salary and areas.
other benefits to the temporary
worker.

The employing organization in turn Demerits

pays the staffing company an agreed-
upon amount of the services • Suffer from employee disloyalty,
rendered by the temporary worker.
• Breach of trade secrets,
The employment of the temp is
purely based on the company needs
• Lack of employee commitment
and requirements.
and the like.
 12 mn temporary jobs in India
Temporary jobs are fast becoming employers' favourite in cities like Delhi and Mumbai while the gap between salary
levels of "Temps" and permanent employees has also narrowed down, a new survey has revealed. The compensation offered
to temporary job seekers or Temps has gone up substantially for freshers; with an average growth of 15 per cent across all
experience levels.
 
The Temps salary levels are closer to permanent salary levels this year as against last year, the TeamLease Annual Temp
Salary Primer 2006 said. Information Technology and IT-enabled services companies are hiring more of temporary workers
with both these segments emerging as top verticals for temp job prospects, it said.
 
Temporary jobs can create 12 million jobs in India in the next five years, if requisite amendments are made in the Contract
Labour Act, TeamLease said.
 
IT city Bangalore and Delhi are the favourite destinations for temp job seekers, offering higher compensation for all the
job functions across all verticals. Human Resources and administration are also emerging as the preferred functions.
 
The percentage of temp jobs in verticals like banking, financial services and insurance, manufacturing and consumer
durables has also jumped by over 20 per cent since last year.
 
National capital Delhi is gradually emerging as the hot location for temp job seekers in sales sector, Mumbai for accounts
and Bangalore for HR and administration.
 
Like in permanent jobs, level of education influences the compensation as it increases by more than 20 per cent for every
increase in the education level except for sales, the survey said.

Source: Hindustan Times, (PTI) New Delhi, February 13, 2006

 
 Campus Recruitment

– here the college/university graduates are interviewed

Recruitment by the company representatives and the suitable
External Source candidates are selected for the jobs. This is the
dominant mode of recruitment nowadays (ET, Nov. 21,
Campus Recruitment 2008)
TV Shows
Cyber Recruiting
Unsolicited Applications
Unsolicited applications

– here the prospective employees through letters, e-

mails, and telephones or in person contact the
employer for the job vacancy.

 Cyber recruiting or internet recruiting

– is the latest way of recruiting the job applicants

nowadays where prospective candidates use the
company websites for jobs.
 Selection

• The process of choosing individuals’ who

have relevant qualifications to fill jobs in
organization

• Selecting qualified employees is like putting

money in the bank
 Two HR Truisms

• “Good training will not fix for bad selection”

• “If you don’t hire the right one, your

competitor will”
Recruitment Organizational Goals Job Analysis
Sources

Applicants Workload Analysis Job Description

Manpower Requisition Job Specification

Selection Process
Application Forms

Preliminary Interview

Employment Tests

Reference Checks

Medical Examination

Selected Candidates/Final Decision

Figure: Framework of Recruitment & Selection

Selection techniques • Structured Application Form
Application Scrutiny
Identifies those candidates who fit the
job specification and can be called
later for the interview
  • Unstructured Application

Form

• Weighted Application Form


Selection Techniques
(Cont.)
Interview
Face-to-face, observational
and personal method of
evaluating the applicant
 
-:Types of interview •
.Structured or systematic Interview -1 •
.An interview conducted as per the pre-determined plan * •
  •
Unstructured interview -2 •
An interview conducted without any pre-determined * •
.plan and questions
  •
:Stress interview -3 •
Where an applicant is put under pressure for knowing •
.how emotional he is
  •
Panel or Board interview -4 •
An interview method where two or more people •
.interview a single applicant
:Group interview -5 •
An interview method where several applicants are •
.interviewed to gathers
Selection Techniques • Reviewing background
(Cont.)
Procedure for an Interview
information

• Preparing a question plan

• Creating a helpful setting

• Conducting the interview

• Concluding the interview

 Aptitude Tests -1
Measure/ test the person's capacity to learn or perform (future
Selection Techniques inn consideration)
(Cont.)
Psychomotor Tests -2
Employment testing This test measure the person's strength, dexterity and
.coordination

Ability/Proficiency Tests -3 •
This test measures how well an applicant can do a given job
.(present in consideration)

Interest Tests-4
Measures various interests of the applicants

Polygraph Tests -5
Here the physiological changes in the bodies of the person are
recorded on the machine to see whether the person is lying or
.not

Graphology Tests -6
Here the personality, emotional problems and honesty is
.measured through analyzing applicants hand writing
 • References are usually obtained
Selection Techniques from the candidate’s friends or
(Cont.)
from his previous employer
Reference Checking
Requesting references is a
wide spread practice with
substantial doubt to its
• Contagious diseases can be
validity avoided from spreading if the
Physical/Medical
candidate is tested in advance
examination for them;
Physical examination reveals
whether the candidate
possesses the required • The company may also avoid
stamina, strength and
tolerance of hard working incurring medical bills on
conditions. employees found medically
unfit.
 • Selection is made in any of the
Battery of Selection
Techniques
Profile Matching
The ideal profile of a
successful worker is obtained
by making him to pass
through the various selection
techniques/criterions
The standard so obtained is
then used to measure the
individual profile of all the
new applicants
following ways:
– Individuals whose scores are above
the standard score may be selected;
– Individuals whose scores show min.
deviations from the ideal score may
be selected after the deviations are
calculated, squared & totaled. The
lesser the total the better it is;
– Individuals whose scores show
maximum co-variation with the
standard scores may be selected. The
r may be calculated between the
scores of each individual & the ideal
score. The higher the r , the better
the match.
 • An applicant is bound to score
Battery of Selection above this point on each technique;
Techniques
Multiple Cut-offs
• Cut-off points are usually
A minimum acceptable
point is established determined by trail & error method;
separately for each
technique.
• Individuals who score above all cut-
This method assumes that
for job success, a certain off points are ranked on the basis of
minimum score is needed their total scores;
by an applicant in respect
of each technique.
• Final selection or rejection decision
taken at the end.
 x2 makes twice the
Battery of Selection
Techniques contribution as the
Multiple Regression selection technique x1 in
The relative contribution of
each selection technique in predicting job success (y)
predicting job performance
is found out through using
the multiple regression
model. Suppose
Applicant 1 scores
y= 2x1 + 4x2
(where y stands for x = 5 & x = 10
1 2

predicted job success and

x1 & x2 stand for the
Applicant 2 scores
different selection
techniques) x = 15 & x = 5
1 2
 • An applicant must score
Battery of Selection
Techniques the minimum given score
Multiple hurdle at each stage;
An applicant must clear all the
hurdles to reach the final
• Every stage acts as device
stage where he is considered for weeding out applicants;
for selection
• Progressively decreasing
Preliminary interview the cost of selection
• Final selection or rejection
Application scrutiny

Tests
Interview by personnel dpt. decision taken at each
References stage.
Physical examination

Interview by line manager

Determining the
Functional Value of
Selection Technique
• Reliability
Factors determining
the functional utility • Validity
of a selection
technique
• Selection ratio

• Ability to increase the

percentage of satisfactory

performance
Determining the • The reliability of a test is
Functional Value of determined in any of the
Selection Technique
following ways:
Reliability
This means that test
should give consistent – By giving the test to the same
results in repeated group at separate times &
trials as the unreliable correlating the resultant series of
test has little merit test scores;
and therefore may act – By giving two or more different
as an elastic ruler (but equivalent) forms of the
same test & correlating the
resultant test scores;
– By split-half or odd-even method.
Determining the
Functional Value of
Selection Technique
Validity
Means that the test should
measure what it purports
to measure.
4 types of validity
measures:
• Content validity
Face validity
Content validity
Construct validity
Criterion-related
validity
• Face Validity
– Test should look right to the
test taker. For example, test
designed to measure supervisory
skills would lack face validity if it
contains items which assess
arithmetic knowledge.
– Test should be fully
representative of the relevant
domain. For example, if a typist is
only tested for typing the
numbers, it would lack the
content validity.
Determining the
Functional Value of
Selection Technique
Validity
Means that the test should
measure what it purports
to measure.
• Criterion-Related Validity
• Construct Validity
– By construct validity is meant the
appropriateness of the operational
definition of the construct (abstract
variables like intelligence, aptitude
etc., that cannot be directly
observed).
– Is the ability of a test to successfully
predict an applicant’s performance on
a specific job as measured by a
particular index of job success. A test
that has been shown to predict
successfully an index of job
proficiency is said to be a valid test.
 • Selection device used will
Selection Ratio have no functional utility,
It is the ratio of the number in case the selection ratio is
of applicants to be selected
to the total number of
greater than 1;
applicants available.
Expressed as:
• A manager can afford to
SR = n⁄N raise the standards and
select only those who hold
Where n is the number of
jobs to be filled up & high promise, in case the
N is the number of selection ratio is less than 1
applicants for those jobs
 Interviews
• Most widely used selection “test.”
• Tend to be conducted towards the end of the hiring
process.
• Structured interviews more valid (r=.51) versus
unstructured (r=.31).
• Clear discrepancies between research findings and
practice (See Figure 6-9).

1-60
Employment Interviews:
Research vs. Practice