Amity School of Business

Amity School of Business

SEMESTER V
HUMAN RESOURCE MANAGEMENT (BBAHR-30501)

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Module II: Acquisition of Human Resources Objectives, Policies and Process of Human Resource Planning, Job Analysis, Job Description, Job Specification, Recruitment, Selection, Induction, Placement.
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QUESTIONS TO ANSWER
What is the importance of doing HRP? Outline its process. How job analysis is done? What are the outcomes of job analysis? Illustrate with the help of an example. Does recruitment differs from selection? Explain the various sources of recruitment in detail. Elaborate the selection process in detail. What are the different types of selection tests? Short notes: Induction and placement.
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Assignment Question
Writing offer letter, appointment letter, confirmation letter, promotion/transfer letter and analysing the difference among all.

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INTRODUCTION
 The success of an organisation depends largely on the quantity and quality of its human resources.  No organization can be successful in the long run without having the right kind of people doing the right jobs at the right time.  Procurement of the right kind and right number of personnel is the first OPERATIVE function of HRM.  Human resource management begins with Human Resource Planning/ Manpower Planning.
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HRP / MPP
 Human resource planning is defined as the process by which management determines how an organization should move from its current manpower position to its desired manpower position.  HRP is the process of determining manpower needs and formulating plans to meet these needs.  HRP is a forward looking function. It tries to assess human resource requirements in advance keeping the production schedules, market fluctuations, demand forecasts etc. in the background.
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 In the words of Stainer, Manpower planning is the strategy for acquisition, utilization, improvement and preservation of an organizations human resources. It is aimed at coordinating the requirements for and the availability of different types of employees.  Human resource plans are made for varying time periods, i.e., short term plans covering a time frame of 2 years and long term plans encompassing a period of 5 or more years.

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Business Vision and Strategy Technological change

External forces requiring restructuring Stakeholder expectations

CAPABILITIES NEEDED

BUILDING FOR THE FUTURE

CONTINUITY PLAN Manpower flows

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Needs of the organisation

Needs of the individual

fair rewards continuity and growth challenging work of human capital good working environment performance information potential feedback flexibility meeting career aspirations commitment providing transferable skills retention innovation
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HR Planning Issues
Staffing Questions:
How do we manage staffing in times of recession or expansion? What impact does technology change, mergers or relocation have on staffing issues? Do we always have the right people in the right jobs at the right time? How do we get our human resources: buy them or make them or both?
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Major Objectives of HRP

Ensure the organisation has the right employees with the right skills at the right place at the right time. Ensure the organisation is responsive to changes in its environment. Provide direction and coherence to all HR activities and systems.
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OBJECTIVES OF HRP
 To ensure optimum use of existing human resources.

Preventing understaffing and overstaffing.

To forecast future requirements of human resources. To provide control measures to ensure availability of HR. To link HRP with organizational planning. To assess the surplus and shortage of human resources. To anticipate the impact of technology/changes on jobs and HR.  To determine levels of recruitment and training.  To promote employees in a systematic manner.  To meet the need of expansion and diversification programmes.
    
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Human Resource Planning Process

External Environment Amity School of Business Internal Environment

Strategic Planning Human Resource Planning

Forecasting Human Resource Requirements

Comparing Requirements and Availability Surplus of Workers Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing

Forecasting Human Resource Availability Shortage of Workers Recruitment Selection

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Demand = Supply No Action

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Forecasting HR Requirements
Estimate of numbers and kinds of employees the organization will need at future dates. Demand for firms goods or services must be forecast. Forecast is then converted into people requirements( Judgement method, Markov analysis, replacement chart, skill inventory, experts forecast).
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TECHNIQUES OF HR DEMAND FORECASTING

Management Judgment Work Study Techniques Ratio Trend Analysis

HR DEMAND FORECASTING TECHNIQUES Flow Models Delphi Technique

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Others

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1. Managerial Judgment- managers sit together, discuss, and arrive at a figure which would be the future demand for labour. The technique may involve a bottom-up or a top-down approach. 2. Ratio-trend Analysis- the technique involves studying past ratios like between the number of workers and sales in an organisation and forecasting future ratios making some allowances for changes in the organization or its methods.
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3.Work Study Techniques this technique can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labor required. Allowance will have to be made for absenteeism and idle time. 4. Delphi Technique it solicits estimates of personnel needs from a group of experts, usually managers. The HRP experts act as intermediaries.
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5. Flow Models the simplest one is Markov model. Determine the time that should be covered. Establish categories, also called states, to which employees can be assigned. Count annual movements (flows) among states for several time periods. Estimate the probability of transition from one state to another.
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Forecasting HR Availability/Supply
Determining whether the firm will be able to secure employees with the necessary skills, and from what sources these individuals may be obtained. Show whether the needed employees may be obtained from within the company, from outside the organization, or from a combination of the two sources.
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HR Supply Forecast
To determine whether management will be able to procure the required number of personnel and the sources of such procurement.

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Supply forecast

Existing Source of employees

Internal source Of employees

External source Of employees

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1. Existing Human Resources analysis of

present employees is done by HR audits. the audits of non managers (skill inventories), and those of management (management inventories). The result is a catalogue of each employees skills and abilities which facilitates planners a comprehensive understanding of the capabilities found in the organisations workforce.

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2. Internal sources of supply the techniques used are: a) Inflows and Outflows Sources of inflows are transfers and promotions, and the sources of outflows are resignation, discharge, demotion, retirement, and promotion.
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b) Turnover rate turnover rate is the traditional

and simple method of forecasting internal supply. No. of separations during 1 year X 100 Average no. of employees during the year c) Conditions of work and absenteeism changes in conditions of work as weekly working hours, overtime policies, length and timing of holidays, retirement policy, shift system etc.
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d) Productivity level any change in productivity

would affect the number of persons required per unit of output. e) Movement among jobs some jobs are sources of personnel for other jobs in way of promotions and upward movements.

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3. External Supply the reasons are new blood and new experience, organizational personnel need, growth and diversification

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Comparing requirements and availability will lead to HR programming, HRP implementation and control and evaluation of program leading to either surplus or shortage of staff. HR Programming
Once an organizations personnel demand and supply are forecasted, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time.
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HR Plan Implementation converting an HR plan into action. Recruitment, Selection, Placement Training and Development Retraining and Redeployment Retention Plan Succession Plan Control and Evaluation The HR plan should include budgets, targets and standards. It should also clarify responsibilities for implementation and control.
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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.  Job analysis has 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 attitudes required for successful performance of the job.  Job analysis is essentially a process of collecting and analyzing data relating to a job.
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PROCESSOF JOB ANALYSIS

Organizational Analysis
a. Organizational charts. b. Class specifications. c. Work flows charts Organizing Job Analysis Programme Deciding uses of JA information

Collection of Job Information

a. Direct observation b. Interviews. c. Questionnaire.

Job Description

Selecting the Representative Jobs

a. Number of jobs to be analyzed. b. Priority of different jobs.
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Job Specification

d. Past records. e. Critical Incident

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Job Analysis
Tasks Responsibilities Duties

Human Resource Planning Recruitment Selection

Job Descriptions Job Analysis Job Specifications

Training and Development Performance Appraisal Compensation and Benefits Safety and Health Employee and Labor Relations

Knowledge

Skills

Abilities

Legal Considerations Job Analysis for Teams

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Job Analysis

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Job description A statement containing items Such as Job title Location Job summary Duties Machines, tools, equipments Materials and forms used Supervision given/received Working conditions hazards

job specification A statement of human qualifications Necessary to do the job. Education Experience Training Judgment Initiative Physical effort Responsibilities Communication skills Emotional characteristics Sensory demands such as sight, smell, hearing
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Reasons For Conducting Job Analysis

Staffing would be haphazard if recruiter did not know qualifications needed for job. Training and Development if specification lists a particular knowledge, skill, or ability, and the person filling the position does not possess all the necessary qualifications, training and/or development is needed. Compensation and Benefits value of job must be known before dollar value can be placed on it.
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Reasons For Conducting Job Analysis (Continued)

Safety and Health helps identify safety and health considerations Employee and Labor Relations lead to more objective human resource decisions Legal Considerations having done job analysis important for supporting legality of employment practices Job Analysis for Teams today, individuals do what has to be done to complete the task
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Uses of Job analysis

Equal Employment HR Planning

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Recruitment

Selection

HR Research

Job Analysis

HR Development

Employee & Labor Relations

Safety & Health

Compensation & Benefits

Performance Appraisal
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RECRUITMENT
 Accordingly to Flippo, Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.  Recruitment involves attracting and obtaining as many applications as possible from eligible job seekers.  Recruitment is a positive function as it seeks to develop a pool of eligible person from which most suited ones can be selected.  Recruitment refers to the process of receipt of applications from jobseekers.  Recruitment involves identifying sources of manpower and stimulating them to apply for jobs in the organizations.

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RECRUITMENT NEEDS

PLANNED

ANTICIPATED

UNEXPECTED

CHANGES IN ORGANISATION RETIREMENT POLICY

PREDICT BY STUDYING TRENDS IN INTERNAL AND EXTERNAL ENVIRONMENT

RESIGNATIONS,DEATHS, ACCIDENTS & ILLNESS.

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RECRUITMENT POLICY
IT SPECIFIES THE OBJECTIVES OF RECRUITMENT AND PROVIDES A FRAMEWORK FOR THE IMPLEMENTATION OF THE RECRUITMENT PROGRAMME. IT INVOLVES EMPLOYERS COMMITMENT TO:
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PREREQUISITES FOR GOOD RECRUITMENT POLICY

ABIDE BY THE RELEVANT PUBLIC POLICY AND LEGISLATION ON HIRING AND EMPLOYMENT RELATIONSHIP. PROVIDE EMPLOYEES WITH JOB SECURITY AND CONTINUOUS EMPLOYMENT. INTEGRATE ORGANISATIONAL NEEDS AND EMPLOYEE NEEDS. PROVIDE EACH EMPLOYEE WITH FREEDOM AND OPPORTUNITY TO UTILISE AND DEVELOP KNOWLEDGE AND SKILLS TO THE MAXIMUM POSSIBLE EXTENT. TREAT ALL EMPLOYEES FAIRLY AND EQUITABLY IN ALL EMPLOYMENT RELATIONSHIPS. PROVIDE SUITABLE JOBS AND PROTECTION TO HANDICAPPED,WOMEN AND MINORITYGROUPS. ENCOURAGE RESPONSIBLE TRADE UNIONS. BE FLEXIBLE ENOUGH TO MEET THE CHANGING NEEDS OF THE ORGANISATION.
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FRAMEWORK OF RECRUITMENT AND SELECTION

RECRUITMENT ADVERTISEMENT ORG. GOALS JOB ANALYSIS

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APPLICANTS

WORKLOAD ANALYSIS & MANPOWER REQUIREMENT

JOB DES. & JOB SPEC.

SELECTION PROCESS
APP. FORMS TESTS INTERVIEW REF. CHECKS MEDICAL EXAM

SELECTED CANDIDATES
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Recruitment Process
HRP Employee requisition Determination of Strategy Evaluation of sources of recruitment
Implementation of recruitment methods and strategies

Feedback and Control

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Promotions Transfers

Employee Referrals

Retired Employees

Internal Recruitment Sources

Dependants of deceased employees

Job Posting

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Internal Recruiting
Cons Pros
Easier to access candidates Motivates employees Reduces training and ramp up time Faster Less expensive Increases job security Insufficient internal labor supply when in growth mode Ripple/domino effect Cumbersome procedures to ensure fairness Become inbred, lose flexibility Constrains organizational agility
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Campus

recruitment

Walk-in External Recruitment Sources

Employment exchanges

Outsourcing

Gate hiring

Competitors/ poaching

Advertisements
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External Recruiting
Pros
Promotes new ideas, viewpoints, skills Increases all forms of diversity Save on training if right hires are made Allows for rapid growth Useful to initiate business turnaround

Cons
Expensive Can take longer than internal hiring Always the risk of hiring someone who is not successful Limits internal promotion opportunities Can create internal morale problems
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Selection
Selection is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.
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SELECTION PROCESS
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Development Bases for selection

Job Analysis HR Plan Recruitment

Application/Resume/CV Written Examination Preliminary Interview Business Games/Tests Final Interview Medical Examination Reference Checks Job Offer Placement
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Assess the fit between the job and the candidate

REJECTED APPLICANTS

Application Blank

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Application blank or form is the most common methods used to collect information on various aspects of the applicants academic, social, demographic, work elated background and references. It includes Personal data Marital data Physical data Educational data Employment data Extracurricular activities data references
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Selection Strategies
Paper screening
Carefully match job requirements to candidate qualifications

Interviewing
Structured, semi-structured, open-ended Behavioral/situational interviewing

Background investigations
References, prior employment, educational requirements, identity verification, criminal background, physical examinations, drug testing.
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Selection Tests

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job seekers who pass the screening and the preliminary interview are called for tests. Personality tests ( like thematic apperception test etc.) Intelligence tests Interests tests Graphology test Polygraph tests Medical tests Drug tests
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SELECTION TESTS

APTITUDE TESTS
***Potential of a Candidate to learn a New job or skill, IQ LEVEL.***

ACHIEVEMENT TESTS
***What a person can Do i.e. the skills And training. The Person had Already acquired***.

PERSONALITY TESTS
***pen & paper test To judge the Psychological Make-up of a Person i.e. probe Individual value System ,maturity .etc.

INTEREST TESTS
***inventories of a persons likes and Dislikes in relation To work i.e. Identify the kind of Work that will Satisfy him.***
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TYPES OF INTERVIEWS

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1. Structured Interview : A preset standardized questions 2. Unstructured Interview : is largely unplanned and the interviewee does most of talking. 3. Mixed Interview 4. Behavioral Interview : Evaluation is based on the solution and approach of the applicants. 5. Stressful : A series of harsh, rapid fire questions intended to upset the applicant.

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Effective Interviewing - HR
Do:
Be prepared Put the interviewee at ease Guide the interview Ask for specific examples of what the candidate has done in real situations Use open-ended questions Ask self-appraisal questions Structure questions so you cover similar info in all meetings Clarify salary expectations early in the process

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Effective Interviewing - candidate

Do:
Prepare research the company. Know your achilles heel and have a response. Remember: role playing with integrity. Have a list of 5 pieces of information you want to be sure to get across. Listen.

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Confirming the Selection

Formal references Informal, network references and contacts Criminal background investigation (Criminal Offender Record Investigation) Physical examination Verify credentials (degrees, licenses, etc.)
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The Job Offer

Conditional offer subject to verifications, physical exam, references Salary considerations:
Market requirements for skill level Internal market considerations

Clarify probationary period and consequences of failure

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PLACEMENT
EMPLOYEE IS PUT TO A SPECIFIC JOB FOR WHICH HE HAS BEEN SELECTED. IN MOST OF THE COMPANIES EMPLOYEES ARE FIRST PUT ON A PROBATIONARY PERIOD AFTER WHICH THEY ARE MADE PERMANENT. PROCESS OF ASSIGNING A SPECIFIC JOB TO EACH ONE OF THE SELECTED CANDIDATES. ASSIGNING A SPECIFIC RANK AND RESPONSIBILITY TO AN INDIVIDUAL MATCHING THE REQUIREMENTS OF A JOB WITH THE QUALIFICATIONS OF A CANDIDATE.
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INDUCTION/ORIENTATION
PROCESS OF RECEIVING AND WELCOMING AN EMPLOYEE WHEN HE FIRST JOINS THE COMPANY. PUTTING HIM AT EASE SO THAT HE DONT FEEL LIKE AN ALIEN IN A NEW ENVIRONMENT. ACQUAINTING HIM WITH THE BASIC INFORMATION HE NEEDS TO SETTLE DOWN QUICKLY. HAPPILY START WORK AND FOSTER A CLOSE AND CORDIAL RELATIONSHIP.
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OBJECTIVES OF INDUCTION
HELP THE NEWCOMER OVERCOME HIS INHIBITIONS. BUILD UP CONFIDENCE IN THE ORG. DEVELOP A SENSE OF BELONGINGNESS AND LOYALTY. PROVIDE OPPORTUNITY TO INTERACT WITH OTHER FELLOW EMPLOYEES. MAKE HIM AWARE ABOUT ORGANISATIONAL DETAILS.
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HR representative

Organisational issues Employee benefits Introduction to staff

Special Anxiety reduction programs To Placement

Supervisor

Specific job location And Duties

Formal Induction Program

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REDUCED ROLE AMBIGUITY REDUCED TURNOVER

REDUCED ANXIETY

BENEFITS OF ORIENTATION BETTER PERFORMANCE

EFFICIENT USE OF RESOURCES

HIGH COMMITMENT
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Requisites for Effective Induction Program

Prepare for New employees. Determine information new employees want to know. Determine how to present information. Completion of paperwork. Evaluation of induction program.
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Impediments to Induction program

Supervisor who is entrusted with the job is not trained or is too busy. Employee is overwhelmed with too much information in a short time. Employee is overloaded with forms to complete. Initially employee may be given menial tasks which discourage him. Employee may develop wrong perceptions because of inadequate induction program.
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