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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
po
wer O
bjectives &
P
olicies
Mo
dified
Org
anizatio
nal P
lan
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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