HR PLANNING

1. HUMAN RESOURCE PLANNING (HRP)

HRP is a process by which an Organization ensure that it hires:
the right Quality of people, and the right Numbers In order to man jobs which they are required to handle effectively and efficiently for fulfilling Organizational Objectives.

In order to determine the Quality of Personnel required, one needs to first study the Job Content. This is achieved by JOB ANALYSES.

2. JOB ANALYSIS (JA)

Job Analyses : determines the Tasks which comprises the Job and the Skill, Knowledge, Abilities and Responsibilities for Performing the said Job. In fact the immediate products of Job Analyses are Job Description and Job Specification. Job Description : It is an Organized factual statement of the Duties and Responsibilities of a specific Job. It tells us what is to be done, how it is to be done and why? It is a Standard of a Function and an Authorized Content of the Job.

2. JOB ANALYSES (JA) Cont

JOB SPECIFICATION: JS determines the minimum acceptable Human Qualities (the skills, knowledge, and abilities) necessary in order to Perform the Job well. It lays down the Qualities required based on the Job Description, such as :
Qualification: MBA, Graduate, Diploma, SSC. Min IQ Levels: e.g. 50 Percentile Experience : 3 Years, 10 Years etc Age : 26 Yrs, 33Yrs etc Specific Talent for Job: High Achievement Motivation. Requirements can be Mandatory or Desirable.

1. HRP : Planning the Right Numbers

In Human Resource Planning the second Component is The Number of Personnel required for the Job, the first as discussed was the Quality of Personnel HRP with respect to numbers can be divided into Three Categories:
Forecasting the Demand of Human Resources Forecasting the Supply of Human Resources Human Resources Actions required to bridge the Gap between Demand and Supply..

2. Forecasting the Demand of Human Resources Forecasting falls under :

Long Range Factors (2-5 years, or >6 years) Short range Factors ( upto 1year or at best 2)

Long Range Factors:

Planning the Demand for Long range Businesses
requirements for new businesses, expansions, International Businesses

Demographics (statistics of Birth & Death):

Availability of manpower in different Age group Reduction in Blue Collar Workers

2. Forecasting the Demand of Human Resources Long Range Factors: Cont..

Countrys Economy:
Prosperity / Growth, Recession. Politics
Cont

Technology Trends:
IT Technology, Mobile E-Business

Social Trends:
Mobility to rural /urban areas

After considering all above Factors, the DELPHI Technique is at times resorted to in order to arrive at the Long Range Projection.

2. Forecasting the Demand of Human Resources Short Range Factors: Cont

Sales Forecast and Production schedules are converted to Yearly Budgets Yearly Budgets are then compiled reviewed and changed by HR after consultation with Seniors, before being placed to Board for clearance. Short term surges are generally forecasted through Temporary or Contract working. However in case of Separations and in a growing market Permanent (Freshers or Experienced) Vacancies are asked for. Availability of Mandatory requirements( Apprentice Trainees) is also considered while forecasting Considerations with regards to Re-Location and closure in a sister concern are also reviewed

3. Forecasting the Supply of Human Resources This forecasting takes stock of available /existing supply of Human Manpower, in order to meet the Demand. Various factors considered are:

Current Inventory of Manpower:

STAFF: Managers, Executives, Supervisors, Technical, Clerical. Labor : Specialist, Skilled, Semi-Skilled, Unskilled

Productivity Levels:
Continuous and on-going Productivity improvements, such as Automation, Labor productivity increase, innovations, design changes, need to be considered while finalizing.

Consider the Turnover of existing Manpower

Retirements / Extensions Interdivisional Transfers Current Separations Expected Seasonal Separations Cadre-vise Separations VRS Scheme due in future

3. Forecasting the Supply of Human Resources..Cont

Absenteeism:
Mainly in Labor Force Leave as a Right!

Movement from other Functions / Areas:

Job Rotation 1 st Line Supervisors from Workmen Conversion of Steno/ Clerks to Supervisory Staff

4. HR Actions (to meet shortfall betweenDemand & Supply)

Gap between Forecasted Demand and Supply , forms basis for HR Actions Recruitment:
Projected needs, exceed available resources No further Internal source for transfer Numbers available, but does not match requirement Manpower cannot be used gainfully, as not Trainable

4. HR Actions (to meet shortfall betweenDemand & Supply)

Training:
To fill gaps in existing employees, in order to use gainfully New Technology Introduction Competency requirement in new area different

Career Management :
Provide Growth Opportunities, through proper assignments, to meet future Requirements

Multiskilling
Train people for carrying out a variety of skills, thus saving on extra manpower

Downsizing:
Supply outstrips Demand Uncompetitive in Market

Recruitment & Selection

Human Resource Planning to RECRUITMENT

Successful HRP helps to identify:
The Right Quality of people and The Right Numbers required

Right Quality as we have learnt is determined through Job Analyses ( JD + JS ) And the right numbers through the GAP between HR Demand and HR Supply The next Step that follows naturally after HRP is to start acquiring people i.e. starting the process of RECRUITMENT

RECRUITMENT
It is the Process of finding and attracting Talented quality applicants, to match the requirements for employment.
This Process begins with a Search and ends with the Receipt of Applications.

After receipt of applications, Recruitment theoretically ends and SELECTION Process starts. It starts with the shortlisting of available applications.
In Practice the two Processes are seamless.

CHALLENGES OF RECRUITMENT
How to attract the Right Quality (Talent) of People to match the Requirement. Get the Right people in large numbers, so that you have a choice even amongst the Best. Discourage large number of unwanted applicants (qual, age, exp) from applying, thus saving on time and money

CHALLENGES OF RECRUITMENT
..cont

Recruit required quality and numbers and yet manage within the budgeted costs.
Select the Quality and Talent which has a reasonable chance to continue in your Organization : high flier flying his own kite, businessmans son, awaiting entrance exam results for further studies abroad or joining IIMs (MBA), IITs (PG)

The GOAL for RECRUITMENT

Is to attract a large number of Applicants of Right Quality & Talent, from amongst whom there is a choice to Select the Best, with a reasonable assumption that on joining, the Organization will be in a position to Retain them, for a good period of time.

Factors Governing Recruitment:

(first conduct a GD)

EXTERNAL :
Availability of Talent (expertise, attitude)
Market Conditions (growth, recession) Political-Social Environment (election, sonof-soil) Image/ Perception of Organization (1to 10, culture, hierarchy, slow growth,unethical) Government Requirements (Quota, 50%R) Union (LTITL, SOEs, Contract)

Factors Governing Recruitment:cont

(first conduct GD)

INTERNAL :
Recruitment Policy (1st class throughout, ATKT, college/university, part-time) Company Policies (pref for GET v/s Direct) Human Resource Planning (short-term) Size of firm (recruitment: all year round) Growth, Expansion (increased requirement) Age Profile (none below 40, less than 20) Recruitment Costs (news: page 1-2 L) Meeting overload situation (temp, contract)

PROCESS of RECRUITMENT
Review and Finalize Numbers and Quality planned earlier in HRP. Budget the finalized Manpower Requirements and obtain Management Sanction for Budgets. Determine the Sources of Recruitment Start the Recruitment Cycle.

MANPOWER BUDGETS
Personnel Departments to review, prepare and finalize Manpower Requirements for the Budget Year (i.e. April to March every year), sometime in Nov-Dec of previous year, for all Divisions, as per data available from HRP. Obtain Management Sanction for all increases

Conduct a final review of Manpower Requirements at the actual time of need, and then ask concerned Departments to raise MSR
Get MSR cleared from appropriate authority Take action for determining the Sources for Recruitment

Determining the Source of RECRUITMENT INTERNAL SEARCH through :

Skill / Competency Inventory

Pending Transfers (requests)

Impending JR

Notice Board / E- Mails

Conversion from Unionized Cadre

INTRA SEARCH through :

Other Divisions Sister Organizations

Determining the Source of RECRUITMENT EXTERNAL SEARCH through :

Campus: MBAs, GETs, DETs

Advertisement: Newspaper, Business Journal, NET

Walk-ins

Head Hunters
Employment Agencies

Professional Organizations (I.E.)

Employee Referrals / Recommendations Casual Applicants (word of mouth, referred )

Sources of Recruitment: Advantages & Disadvantages ..GD

INTERNAL
Advantage: Boosts Morale, as growth from within Performance Evaluation, known and available Disadvantage: New / Creative External inputs missed out External Experience / Expertise not available (inbreeding may prevail)

Sources of Recruitment: Advantages & Disadvantages

INTRA Advantage: Better comfort level as from same Organization Disadvantage: Overdependence on Releasing Department for ascertaining actual Performance

Sources of Recruitment: Advantages & Disadvantages

EXTERNAL
Advantage: Fresh thinking / new ideas by a new joinee Best available from a fairly large source May carry additional technical expertise and experience from last Job Disadvantage: Selection Process not full-proof, organization may land up with a wrong candidate Carries his Paradigms from the last job Finds difficulty in meshing with new culture Problem in early acceptance by others

External Recruitment.. more about it

CAMPUS RECRUITMENT:
Generally against a full-fledged SCHEME Good Scheme can attract the best of talent Long term investment for future Leaders Grown in Companys Culture- Bonding Nurturing over Years lots of efforts Problem of Separation when ready. Investment and efforts can go waste Feeding ready made talent to Competitor Cannot substitute in new growth areas

External Recruitment.. more about it

Data Bank:
A good structure required to start and maintain a Data Bank Relevant Inputs to be constantly fed Retrieval of any Data should be fast and easy Generally the first choice as a source for Recruitment Saving of time & Cost

External Recruitment.. more about it

Advertisement:
Newspapers, Business Magazines, Agencies, Net

Wide coverage
Costly process Results varied

Used to update data bank

Head Hunters
Cultivate the right ones who perform Should have feel of market and competitors Useful where small numbers in special fields reqd Take care for reverse flow of candidates

Recruitment.. Obtaining Applications from Candidates

Advertisement in Classified Columns
Large no. of Applicants, large unwanted numbers

Large screening time

Advertisements with structured formats

Less Applications than above, less unwanted

Faster Screening on PC, saving of time

Applications received on WEB

Lesser applications than both above

Screens fastest, based on different requirements Cleared numbers sent BLANK APPLICATION FORMS

Receipt of Applications is the last stage of Recruitment. The next is SELECTION.

Recruitment & Selection

RECRUITMENT v/s SELECTION

Recruitment & Selection are two crucial steps in the HR Process and are often used synonymously

Recruitment focuses on the process of identifying and encouraging prospective employees

Selection is concerned with picking the most appropriate candidate from a pool of prospective applicants to match the job

Importance of SELECTION
Business results depends on the Performance of its Employees

Employees who perform are difficult to come by

Also if Talented performers are available they should match the given role Hence the Selection of the Right Employee, who Performs and also fits the given Role, is of significant Importance. Correct and Matching Selection is therefore a Challenge for both HR and the line Personal

Success and Failure at SELECTION

Actual Success Actual Failure

(1) Error
(3) Low-Hit

(2) High-Hit
(4) Error

Failure in Selection Success in Selection

1. Error 3. Low- Hit 4. Error : Rejected a Good Candidate : Good Selection. Not Selecting a non-performer : Bad Selection. Selected a non-performer

2. Best Situation : Selected a Candidate, who will be Successful

Flow of Selection Process

Short listing of candidates for call

Psychological& other Tests

Group Discussions (GD)

Interview by a Panel

Evaluation

Selection /Rejection of Candidates

 % Marks obtained from SSC onwards, Class& Rank obtained, number of ATKTs Basic Graduation: BA,BSc,BCom,BE,BMS... MBA(Deemed, University, Autonomous) Break in years and reasons Relevant Experience & number of years Remuneration: Present & Expected Cultural Background Locational constraints (housing) Extra Curricular Activities, Hobbies, Honors

Short-Listing of Candidates for Call This is generally based on:

Short-Listing of Candidates for Call..Cont

Other issues with respect to Shortlisting are:

Where Resume data is not totally clear, this can be checked by sending Companys Blank Application Form Exceptions are made for call in spite of Locational and other constraints because of:
Otherwise Outstanding Resume Referred Candidate

Shortlisting in the case of Walk-ins is through a quick initial round of Interview, on Resume Details carried by Candidates.

SELECTION OF MANPOWER (Contd)

Psychological Tests
What are Psychological Tests ?

An Instrument used to measure a sample of Human Behavior, to predict future. It is an Employment Test
Factors measured such as Reasoning, Capacity for Learning, Specific Aptitude, Physical Abilities etc. Uses of Psychological Tests Elimination to reduce candidates for Interviews As inputs to aid in Interviews Part elimination and part inputs

PSYCHOLOGICAL TESTS
Types of Psychological Tests Intelligence Tests : Most widely used. Developed to measure Reasoning, Comprehension, Word fluency, Verbal Comprehension, Numbers, Memory. Aptitude Tests : Potential to learn, given required training e.g. Mechanical Comprehension.

Achievement Tests : Aptitude is capacity to learn in future. Achievement is what one has accomplished. These are generally Trade Tests. Interest Tests : This recognizes the Interest Level to do certain Job or Tasks.
Personality Tests : These determine the ability to get along with & motivate other people. Validity .15/.40

Psychological & Other Tests..continued

IQ: omnibus tests to gauge general intelligence: verbal, numerical & visuospatial ability EQ: Emotional Quotient Test. Checks your Emotional Intelligence KT: Knowledge Tests: tests knowledge on disciplines studied e.g. Mech, Elex, Fin, IT Essay: descriptive test, checks on attitudes, likes, dislikes Note: tests are used for elimination and /or for reinforcements (e.g. selection in R&D )

SELECTION OF MANPOWER (contd.)

Basic Concepts of Testing: Reliability : Degree of consistency of Results. Same Tests same Candidates should result in same score. Validity : Predicts future job success perfectly, then validity is 1 and no correlation then validity is 0. In actual practice validity is less than 0.5 as success is due to other factors too. Objectivity : When two or more people interpret the results of same Test & derive same conclusions, the Test is said to be Objective Standardized : Test is Standard if administered to a large number of People Performing similar tasks.

Group Discussions(GD)
Technique to access individuals on various parameters during selection process, such as initiative, leadership, communications, team working etc Also used in Assessment Centers to gauge desired competencies Generally used along with Interview & Tests, not as a stand alone process Informal discussions on a controversial topic or discussion on problem solving

Group Discussions (GD) cont...

6 to 8 participants for GD Freedom to structure discussions within overall time frame Follow few ground rules such as not being quiet, avoid hogging discussions, raising irrelevant points, being far too emotional Assessment of individuals is carried out from the background, noting observations and rating them on individual competencies (see GD evaluation sheet)

INTERVIEWS-some thoughts
Interview, is a face to face interaction of an Individual with a panel for the purpose of selection. It employs conversation. It is the oldest & most widely used method. The problem is its subjectivity The key to a good interview is to bring out the attitudes of the person which she / he will display at work Candidates are judged on:
Personal

details, Technical capabilities & the Attitude / Talent displayed.

INTERVIEW

*PRICIPLES OF INTERVIEW
Preparation for Interview and Proper Setting. Objective of Interview - what to cover. How to Conduct (Methodology)

Evaluation.

INTERVIEW Cont Preparation for Interview & Proper Setting :

Constitution of a capable Panel: Generally three persons at least. Immediate Superior, Peer from similar function and HR Personnel. A Senior person to be included in Panel or to cover 2 nd round of Interview separately through him.

Send advance intimation to all Candidates and Panel members

Homework: on actual Job to be carried out and Competencies required from a very good candidate. Work out the rough Grade and Salary to be offered, in case of Selection. Book the interview rooms and check for facilities

Interview.. cont
Objective for the Interview ( What all to look for)

Lay down clearly your objective of what all is planned for covering in the Interview
Check for and verify Personnel Details: Correctness of Qualifications, Age, References, No. of Jobs changed, Salary, e.g. (Question on data filled in Application Blank)

Questions on Technical Knowledge / Skills

Check for Actual Experience :Learning's from his last Job & Wisdom gained to-date. Check for required Competencies and talent to do the Job outstandingly.

Interview cont Blank Application Form

Blank Application Forms should be exhaustive and cover:
Personnel Data : Age, Qualification, Location, Family, Accom.
Qualification : SSC onwards, Marks, Semisterwise, ATKT Experience : Organization worked, No. of Yrs, function details Training : Internal, External, Behavioural, Technical Member : Of Association, Society, Sports, HR Chapter Extra Curricular : Sports, Hobbies Emoluments : Present & Expected Suitability : Requirement for Job, Initiative, Creativity Reference : To be verified

How to conduct a Good Interview

INTERVIEW cont

Interviewer should Possess & Demonstrate a basic liking and Respect for People. Question on issues, areas, products, candidate is good at (what he knows), not what he has not handled. Listen attentively and if possible Projectively. Ask Open-Ended Questions(reveals by his answers). Help to Focus on what he has experienced while performing. Look for Rapid Learning / Satisfaction, Flow, Top of the box.

Know your answers from your outstanding people.

Talent Interview
Purpose of Talent interview is to gauge whether candidate has the Talents required for the Job. Striving(why?), Thinking(how?), or Relating (whom?).His consistent Response is his Perform. The Best way to discover a persons Talent is to allow him to reveal himself, (reveal his Attitude) by the choices he makes. Open-ended questions:Why did you select MBA Specifics :tell me about a time when you overcame resistance? Rapid Learning: in certain Roles. Satisfaction:what gave you the greatest satisfaction during the Project you handled

Interview Evaluation Sheet

Sr no. 1 2 3 4 5 6 7 8 Typical Interview Evaluation Very Good Attributes O/S Good Academic Record Experience Technical/Job knowledge Communication Clarity of thought Interpersonal Skills Motivation Flexibility Overall STRENGTHS Average Poor

WEAKNESSES

Evaluation Make notes of Interview Assessment. Evaluate immediately after Interview Enter comparisons with Benchmark. Fix Final Rating jointly immediately after Interview

Interview..cont

SELECTION OF MANPOWER (contd.)

Selection and Offer
Suitability Review and Right Fit: Once again try and match talent with the major requirement of competency for the job. Review with seniors and confirm candidate is right fit for the job. Three tier interview, for employee is for life. Offer :

Offer subject to obtaining clearance and Medical fitness.

Provide Transparency and flexibility in offer.

SELECTION OF MANPOWER (contd.)

TERMS AND CONDITIONS:
Fixation of Grades and Base salary critical for candidates as well as existing employees, therefore fix judiciously Make comparisons with existing employees (ex trainees and direct joinees) Make numerous comparisons with growth path of o/s, v good.. Employees (standardized) Review pay in terms of CTC, pay packet, yearly, benefits etc. Justify and record high and low salaries.

Besides Grade & Sal T&C includes Probation period, Place of Work, Hours of Work, Holidays, Leave details, LTA, PF, Gratuity, SA, Medical Benefits, Bonus, PLA, Termination Clause, Disputes, Retirement Age, Confidentiality of offer, Validity of offer, Joining Formalities, Reporting to, etc.

SELECTION OF MANPOWER (contd.) Physical Examination In all cases of Physical examination the word of the Medical Officer is final MC can reject any candidate, even if Selected HR must be conversant with all the important norms No compromises on deficiencies e.g. heart, eyes.. An unfit employee is a liability no matter how good.

 An approach adopted by some organizations to Recruit and select outstanding talent A set of 6 to10 competencies most critical to achieving outstanding results in the function to be recruited are first identified Rating of these Competencies in Individuals (from bench-mark levels) is checked through a variety of means such as:
In-Tray exercises /Group Discussions / Role-Plays Presentations /

Assessment Centers

Those found above bench-mark levels are finally interviewed for Selection

Orientation, Induction and Probation

A broad Orientation of Rules , Regulations and existing culture will aid in a smooth transition. A proper induction of functions, departments and people will lead to a smooth take-off on his job. Orientation and induction for a senior in big organizations is as large as one to one and half months. For a fresh trainee it can be as much as 15 days. The first three months are critical in retaining talent, hence HR to monitor, evaluate, guide and counsel employee for retention and good meshing in his area of work.