Human Resource Planning

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

Demand Forecast•Numbers•Job Categories•Skills Requirement

Manpower Gaps

•Surplus of numbers and skills•Shortages

Supply Forecast•Manpower inventory•Losses & Additions•External Supply

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

Monitoring and Control

Corporate Analysis•Objectives & Strategies•Company Organizational plan•Market Forecast•Financial Plan•Production Target

Man

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P

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Mo

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Org

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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 Transfers Promotions

External Sources Press advertisement 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 ProcessHuman

Resource Planning

Finding and Developing sources of

Potential employees

Evaluating effectivenessOf recruiting

Search for prospective employee(a) Developing Techniques(b) Attracting Candidates

Recruiting required personnel

Selecting qualified Personnel

Placing Selected Personnel on Job

Internal SourcesPromoting to higher jobs

Upgrading in same position

Transferring to new jobs

Experience

Job Posting

Personnel Research

Clarifying doubts

Providing information

Advertising

Scouting

Employee Referral

External sources

Difference b/w Recruitment and Selection

Recruitment

It involves identifying the source of manpower and stimulating them to apply for the job

It’s a positive function

Its search for the desired candidate

Selection

It’s the process of choosing the best out of those recruited

It’s a negative function

It matches the search candidates 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:-

SuitableUnsuitable

•Recruitment technically precedes selection

Process of SelectionPreliminary Interview

Application form

Selection Test

Selection Interview

Physical Examination

Reference check

Final approval

Employment

REJECTION

Case StudyMariam 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

AchievementTest

Aptitude Test

InterestTest

PersonalityTest

•Mental Test

•Mechanical Test

•Skilled Test

•Job Knowledge

•Work sample

•Objective Test

•Projective Test

•Situation Test

(Likings and Disliking)

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.

Pre-arrival Encounter Metamorphosis

Commitment

Productivity

Outcomes

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 Description Job Specification Job EvaluationPerformance

Appraisal

Job Analysis

Techniques of Job Analysis(Methods of Data collection)

Job Performance Personal Observation Interview Questionnaire Critical Incidents Log Records

Process of Job AnalysisCollection 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

Job Description

A written statement of the contents of the Job

Title, Duties, working Conditions, supervision etc

To identify, define and describe a job

Prepared before job specification

Job Specification

A written statement of the qualities required for performing a job

Education, training, experience required for a particular job

To facilitate recruitment, selection, training etc of people for the job

Prepared after job Description

Dimensions

Meaning

Contents

Purpose

Sequence

Case Study- 2Rane 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 to find out their relative worth

It is the assessment of performance of different employees performing the same job

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

It takes into consideration the performance of different individuals

Purpose Its purpose is to identify the basis for fixing wages, salary of various jobs

Its purpose is to identify the basis for decisions concerning pay raise, promotions etc

Timing It is done before an employee joins

It is done after employee joins and performs the job

Gaining Acceptance

Process of Job Evaluation

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 Method

Job Grading Factor Comparison

Point system

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