Jalandhar
Syllabus Manpower Planning (MBA 964)
Objective: To appraise the students about the importance of manpower planning specially in today’s dynamic environment with emphasis on effective recruitment and selection.
Unit – I
Human Resource Planning; Macro level scenario of manpower planning, setting up of objectives, organizing planning concept, process of manpower planning. Demand and Supply Forecasting; analyzing Jobs and Work; Types of Employment.
Unit – II
Unit - III
Unit – IV
Recruitment and Selection: Linking with other HRM Systems; Selecting Expatriates; Use of Technology in Recruitment and Selection; Communicating the Decision; Induction and Socialization; Internal Selection; Designing Systems, Administering and Evaluating the system; Ethical Issues; Present Trends in Recruitment and Selection.
Note : Relevant Case Studies should be discussed in class.
Suggested Readings:
1. Dessler Gary & V. Biju, Human Resource Management, Pearson Education, 2. Roberts. Gareth, “Recruitment & Selection- A competency approach”, Chartered Institute
of Personnel & Development, London 3. Billsberry Jon, Experiencing Recruitment & selection, Wiley Publications 4. Cooper Dominic, Robertson T Ivan & Tinline Gordon, Recruitment & Selection –A
framework for success, Thomson Publications, London
Table of Contents
Title Written by Page No.
1 HUMAN RESOURCE PLANNING Dr. Mamta Ratti, Assistant Professor, MCM DAV College, Chandigarh
1
15
3 JOB ANALYSIS AND DESIGN Dr. Mamta Ratti, Assistant Professor, MCM DAV College, Chandigarh
34
4 RECRUITMENT Dr. Mamta Ratti, Assistant Professor, MCM DAV College, Chandigarh
54
75
6 INTERVIEWS Ms. Kajal Vij, Assistant Professor, HMV College, Jalandhar
94
7 GROUP DISCUSSIONS Ms. Kajal Vij, Assistant Professor, HMV College, Jalandhar
116
8 MANAGERIAL SELECTION Ms. Kajal Vij, Assistant Professor, HMV College, Jalandhar
133
149
10 INTERNAL SELECTION Ms. Kajal Vij, Assistant Professor, HMV College, Jalandhar
164
I.K.G. PTU, Kapurthala
© IK Gujral Punjab Technical University Jalandhar All rights reserved with IK Gujral Punjab Technical University Jalandhar
CHAPTER 1 HUMAN RESOURCE PLANNING
“Human Resource isn’t a thing we do; it’s the thing that runs our business.” – Steve Wynn
Structure
1.7 Factors Affecting Macro Manpower Planning
1.8 Check Your Progress 1
1.9 Approaches to Macro level Man Power Planning
1.10 Emerging trends & Issues in Man Power Planning
1.11 Effectiveness of Macro level Manpower Planning and Policy
1.12 Check Your Progress 2
1.13 Summary
1.14 Glossary
1.16 References
1.1 Objectives
To understand the role of manpower planning in an organization
To learn the strategies for making manpower planning effective
To understand Man Power Planning at Macro Level
To know the approaches to Man Power Planning at Macro Level
To be aware of emerging trends & Issues of Manpower Planning
1.2 Introduction
There are four factors of production: Men, Money, Material and Method. The economists suggest that the productivity can be easily improved with the help of effective utilization of these factors of production. ‘Men’ is the most dynamic factors among all mentioned factors. The planning of Man power is very essential due to its tangible and living nature. Rest of the
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factors cannot proceed at their own but the human resources have their own thinking process. To retain the key personnel, to attract suitable candidates, to assess the short-term and long term requirement of human resources are few very important functions of the human resource planning. The organization always requires the longer stay of its own employees to improve the productivity level. The excess manpower or shortage of manpower creates hurdles in the productivity of the firm. The business firm faces expected and unexpected risks/uncertainties. It may be responded by the firm with the help of the experienced and highly-skilled employees. These employees are able to respond to the un-calculative risks effectively. Human resources are the assets as well as the cost for the firm. The exact balance is required for controlling the cost of production. It requires the minute planning. The strategic planning is based upon the human resource planning. It is the first step of the human resource processes. Human Resource Planning can be defined as the allocation of different duties to the different people as per their job profiles. The ultimate objective of the human resource planning is the effective utilization of the talent to improve productivity. Rapid changes in technology need quick and accurate response which increases the importance of the skilled manpower. The scarcity of the right workforce is also one of the important issues nowadays. The replacement of the employee is not similar to the replacement of the obsolete machinery or spare-part due to its liveliness. Two persons cannot be similar in any way; the group behaviour comes after the variations in the individual behaviour in the firm. Firms require the skilled manpower which is possible to get at the right time, at the right remuneration through proper man-power planning. The requirement of man-power is assessed by the firm and selected the suitable candidates for the un-disrupted functioning. The supply and demand of man-power plays important role in determining the wages and salary administration. It is a science as well as art to manage the right quantity as well as quality of human resources in the firm. The Human Resource Planning assists the firm to response to the scarcity of the highly skilled personnel, to manage wage administration effectively as well as to adopt the successful HR Policies for avoiding the conflicts. Human Resource Planning and the Man-Power Planning are two different terms. The Man-power planning is the part of the Human resource planning. Both the terms are used interchangeably in this course-book.
1.3 Conceptual Clarity: The concept of the man-power planning can be understood with the help of the following definitions explained by the various authors & philosophers:
According to Bruce P. Coleman, “Manpower planning is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.”
According to Dale S. Beach, “Human Resource Planning is a process of determining and assuring 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.”
As per G. Stainer, “Manpower planning is the strategy for the acquisition, utilization, improvement and preservation of an organization’s human resources. It is aimed at coordinating the requirements for and the availability of different types of employees.”
E. Geister explained the same term in this way, “ Manpower Planning is the process including forecasting, developing and controlling by which a firm ensures
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that it has the right number of people and right kind of people at the right places at the right time doing work for which they are economically most useful.”
According to the Wickstrom, human resource planning consists of a series of activities viz.,
a) Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in industry, or in terms of judgmental estimates based upon the specific future plans of a company;
b) Making an inventory of present manpower resources and assessing the extent to which these resources are employed optimally;
c) Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of the requirements to determine their adequacy both quantitatively and qualitatively;
d) Planning the necessary programmes for requirement, selection, training, development, utilization, transfer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.
Human resource planning is an operational activity which is concerned with the determining manpower requirements. It meets the requirement with qualitative and quantitative aspects. HR manager makes strategies for the effective utilization, acquisition, improvement and preservation of the human resources for meeting the individual and enterprise goals. It includes functions of management such as planning, organizing, controlling, directing, staffing and supervising of human resources. Heavy funds are paid in the form of salary and wages in large organizations thus budgeting becomes an important aspect of the manpower planning.
Following features are derived from the above mentioned definitions and discussions of Human Resource Planning:
Specified Objectives: The organization has its own vision and mission which are explained in the form of the objectives. Manager frames out the strategy to meet the specified objectives through effective utilization of resources. The strategies are implemented by and through the skilled and unskilled man-power. The manpower planning has its own objectives such as assessing the requirement, recruiting the required personnel, developing and retaining them through motivational practices. These objectives may be matched with the organizational objectives for improving the results of human resources.
Focuses On Personnel Requirements: The HR Planning focuses on the requirement of the Human resources in the organization. The recruitment and selection of the suitable employees requires proper planning. Human Resource Planning provides the detailed information about vacant positions and work force required for the undisrupted work.
Manpower Inventory: Human resource planning aims to analyze the Manpower Inventory in the form of complete database. Manager must have knowledge about the skills, education, experiences of the available workforce. The HR department may take decisions about the promotions, transfers and retirement on the bases of the database. The requirement for the additional workers must match with the available work-force.
Ascertaining Of Demand and Supply: The scarcity of the skilled manpower is the general problem faced by the small firms with limited budgets. The process of
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recruitment and selection takes time in few situations. HR department is required to ascertain the required manpower and analyzed the demand and supply rule for the same. It can be helpful for the smooth working of the organization.
Formulation of Healthy Work Environment: Job satisfaction becomes base for the productivity of the employees. It can be improved through best human resource policies and workers’ participation in decision making process. Motivational techniques also helped the HR manager to create healthy group behavior. HR manager may plan properly to coordinate overall staffing as well as motivational functions.
1.4 Why Human Resource Planning is required The Human resource planning becomes crucial for the success of the firm. Following are few points which may describe the importance of Human Resource Planning;
a) The organization requires adequate manpower at each stage for the effective utilization of the remaining factors of production. Human Resource Planning ensures the proper workforce with the required skills, education, experience, knowledge and aptitude for the work.
b) Employees switch over the firms for the better future prospects. Few employees got retirement, transfer or promotion. The Human resource planning assesses the current availability of employees and determines the future requirement for the same, due to above-mentioned reasons. Planned Human Resource Planning only makes possible the production process in undisrupted manner.
c) Human Resource Planning is continuous process of recruiting, selecting and training of employees. Few employees quit from the firm due to marriage, better opportunities etc. Seasonal changes and cyclical fluctuations in the production operations are also important factors for higher labor turnover in the respective industry.
d) Expansion and growth in the organizational structure requires accuracy in Human Resource planning. It depends upon the timely fulfillment of the additional workforce with the required skills.
e) New workforce is required in case of the introduction of new production process, managerial practices as well as new advanced technology. Human Resource Planning is required to train the current workforce as per the prevailing situations in the market.
f) Human resource planning is a double-edge weapon. Firms can control the cost of production, improve quality and increase profitability through optimum utilization of the manpower. The surplus or shortage of manpower result into the diverse outcomes for the firm.
1.5 Strategies for effective Human Resource Planning The objective of Human Resource Planning is to get best results through optimum
utilization of the human resources. It is possible through effective human resource strategies. Stainer recommended following strategies for the effective human resource planning:
a) HR managers should collect, maintain and interpret relevant information regarding human resources;
b) They should report periodically manpower objectives, requirements and current employment and allied features of manpower;
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c) They should prepare procedures and techniques to determine the requirements of different types of manpower over a period of time compatible with the organizational goals;
d) They should frame out the measures of manpower utilization as component of forecasts of manpower requirements along with independent validation;
e) They should adopt new techniques for work allocation to improve the manpower utilization;
f) They should conduct research to determine factors obstructing the individual and group output and take corrective actions to remove those hurdles;
g) They should analyze the human resources in the economic terms such as cost incurred and income generated by the employee, they should employ the economic assessment techniques for the accurate decision-making;
h) They should employ the effective techniques for procurement, promotion and retention of the employees;
i) They should employ the dynamic process for the recruitment, selection and employment to minimize the labor turn-over and improve productivity.
1.6 Man Power Planning at Macro Level
Population in the country becomes base for the human resources. The goods and services are consumed by the human beings to live better life. The consumption of goods and services are required for poverty alleviation, health improvement, enhancement of educational level of the population of the nation etc. Utilization of more goods and services provide better living conditions for the human resources as well as improvement in quality of the human resources. This is the demand side of the human resources for the industrial growth and development. The supply side of the human resources becomes base for the production process. Men, Material, Methods, and Money are important factor of production. They convert natural and physical resources into consumable goods and services. Human resources and capital can be used complementary to each other. The degree of complementarities between them is up to optimal increase in output in industry. Optimal economic growth is not possible by increasing anyone of them at the cost of the other variable. The theories suggested that the optimal ratio of human capital is absolute necessary in order to achieve and accelerate the production process and maintain the attainable rate of economic growth. The Human Resource growth requires to be proportionately maintained with that of the pattern of accumulation of capital and other factors of production. Unprecedented growth in Human Resources, disproportionate to capital could hinder the tempo of national economic growth which requires Human Resources at Macro Level. Man Power Planning is concerned with the labour supply in the market whereas employment planning is concerned with the demands for the jobs. HRP covers the number of people coming to the labour market, their education, experience, age and other demographical elements. Human resource planning at macro level is concerned with the assessing training needs to reconcile the labour supply with the labour demand in the economy. Macro level Human Resource Planning is undertaken by the Ministry of Labour/Education and Ministries of Planning/Finance. Generally the focus is given to the supply of the manpower resources rather than the adequacy of the demand. It is always mismatched due to inadequate quality in terms of education, lack of skills and experience. The skilled labour is only solution for the future
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industrial development in economy. It becomes critical issue for the developing country like India. Manpower planning is an interested field to be studied by the macro-economics. The planning of the nation is taken care by the macro economists. They must consider the education, skills, age discrimination of the population. The characteristics of the labour force become important determinants for the economic growth of India. Manpower planning is an important field to utilize the human resources in the productive way. It is the primary source for production. Physical resources and technical resources cannot be utilized wisely in the absence of the inspired man power. Manpower planning has two aspects: Macro level and Micro Level. Micro Level Manpower planning always face the problems such as technological changes, trade union pressure, gap in skill and competency, recruitment and selection whereas the macro level manpower planning faces the problems due to employment/unemployment situations, demographic changes, legal controls and organizational policies.
1.7 Factors Affecting Macro Manpower Planning:
Following are the factors affecting the manpower planning decisions at the Macro Level:
a) Employment-Unemployment Situations: The education level is increased day by day and the number of unemployed educated population is also increased in the developing countries like India. There is lack of skill development in the educated candidate thus the acute shortage of required skilled manpower existed in the economy. Macro level planning takes corrective action to promote skill development through the cost effective techniques at the national level.
b) Technological Changes: The high degree planning is required to match the global technological changes in the production techniques, managerial methods and marketing strategies.
c) Organizational Changes: The business environment is affected by the global economic cycle as well as the nature and pace of changes in the organizational structure in terms of its operational activities which directly affect the strategic consideration at Macro Level.
d) Demographic Changes: The changes in the work force in terms of Sex, Age, Literacy level, technical competency, social customs & traditions have implications on the Macro Level Manpower Planning.
e) Skill Shortages: The required skilled personnel are not available in the labour market. The Gap can be bridged by proper Macro Manpower Planning at the national level.
f) Government legislation: Macro Level Manpower planning must be compatible enough with the Government legislation as well as Control policies.
g) Lead Time: It is gestation period for the employees to learn and implement new production and managerial techniques in the organization. Manpower planning may decrease the lead time by proper coordination of the training and development programmes at the Macro Level.
1.8 Check Your Progress 1
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1.9 Approaches to Macro level Man Power Planning :
Macro level manpower planning can be broadly divided into the three approaches as
follows:
ii) Rate of Return Approach/ Cost Benefit Analysis
iii) The Social Demand Approach
i. The Man power requirement Approach (MRA): It is a dominant model of manpower
planning which is known as the MRA. It came into knowledge to the economists in
the early 1960. There are three steps as per this approach to forecast manpower
requirement such as projecting the demand & supply of educated manpower and
balancing supply and demand.
Projecting the demand: There are five main steps to forecast the demand for the educated
manpower.
A. Estimation the future level of GDP or Output (X)
B. Estimation of the structural transformation of the economy as expressed by the
distribution of output by economic sector (Xi/X)
C. Estimation of labor productivity by economic sector (Li/Xi) & its evolution over time
Q.1. Human resource planning is featured with
a. Work politics and nepotism b. Idle workers at the time of recession c. More supply than demand d. Formulation of healthy work environment
Q.2. Human resource planning ensures
a. proper workforce with the required skills b. proper workforce once in a year c. proper workforce at the time of commencement of business d. only long term requirement for human resources
Q. 3. Macro level Human Resource Planning is undertaken
a. by the Foreign Ministry of the country b. by the Finance department of the company c. by the Ministry of Labour/Education and Ministries of Planning/Finance d. By the HR department of the company
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D. Estimation of occupational structure of the labor force within economic sectors and its
evolution (Lij/Li)
E. Estimation of the educational structure of the labor force in given occupations within
economic sectors over time (Lijk/Lij)
Whereas, i= economic sector j= occupation k=educational level a=age s=sex
Demand function for educated labor LDijk = f(X, Xi/X, Li/Xi, Lij/Li, Lijk/Lij)
Projecting the supply: There is a simple formula to forecast the supply of educated
manpower. It has four basic steps as follows:
A. Estimation of population Pa, s, k by age, sex and educational level
B. Forecasting the number of graduates, drop outs by age, sex and educational level,
Ea,s,k
C. Finding the labor force participants (LS) by application of age, sex, educational level,
labor force participation rates to the number of graduates, la, s, k
D. Estimation of the occupational supply based on the labor supply by educational level
possibly using an education to occupation matrix Mk.j
Supply Function = LSj.k = f(Pa,s,k,la.s.k. Mk.j)
Balancing labor supply to demand
Youdi suggested adjustments in performing this function, if LDj is very different then
LSj, there may various reasons such as poor data quality which is not supported by the
proper reasoning. The analyst may use an ad hoc assumption for revising basic
assumption. Too much optimism on labor productivity could reduce demand for labor.
There is a great possibility to increase the supply of labor by too much optimizing on
labor participation. To manage these situations, it is required to reconcile labor supply
and demand.
Psacharopoulos and Blaug (1970) and Ahamad and Blaug (1973) applied the MRA
approach for estimating manpower supply but they failed to get expected results in
evaluating ten manpower forecasting studies in different countries. They identified
following forecasting errors in this approach:
Due to fixed co-efficient model as well as assumed labour-productivity, the results were
not appropriate;
The factor of time horizon goes with the forecasting errors;
No available evidence was linking manpower forecasts to any real educational policy;
Elasticity of substitution between different type of labour cannot be zero which presumed
by the Youdi.
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ii. Rate of Return Approach/ Cost Benefit Analysis: ROR approach for manpower
forecasting is fundamentally different from the MRA approach. Net return from
educational expenditure is calculated. It becomes measure for the changes in net
income due to the level of education improved. The present value of the flow of future
net income is calculated for each educational programme. The programmes with high
returns/ positive returns are promoted where as programmes with negative value or
zero returns are abandoned or at least not promoted.
iii. The Social Demand Approach: It is an assessment of educational requirement of society.
It is an aggregate of individuals demand for education from the society. To assess the
individual requirement for the education is not possible; the calculations are generally
based upon the projections of past trends and enrollment in different educational courses.
The approach is capable of assessing the number of students with their skills and
educational trainings. There are few factors which affect the results of the approach such
as Income of educated people, taste and references of household for education,
Demographic characteristics such as fertility and mortality, Direct costs of education,
student grants and Existing standard of admission to various levels of education. The
approach has few more negative aspects due to inaccurate data base.
1.10 Emerging trends & Issues in Man Power Planning:
Human Resource Planning is a planned and strategic decision to get competitive
advantages. The demand and supply are not balanced in developing economies and as a
result shortage of manpower becomes global problem. Ageing population is the problem
for the developed economies whereas the absence of proper initiative at the national
level for man power planning creates shortage in the developing economies. Following
are few issues discussed in the preview of Indian economy:
The shift for the employment in terms of the skill requirement from secondary
to tertiary or science sector.
India should perform the Manpower planning at the national level as being done
in the European countries. Labor Market authorities should perform the
functions of matching labor requirements of the firms & helping them in
recruitments. To assure the availability of skilled labor must be the
responsibility of the Authorities.
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Few agencies at the national level operate in this direction by conducting studies
in sectoral and occupational categories. Skill development is not possible in the
absence of sufficient funds. Average percentage of total expenditures on
Education shows the decline trends in Indian budgets.
Regular skills renewal efforts may improve labor shortages at national level.
Demographic changes are also important factor to be considered at Indian labor
market such as changes in manufacturing processes, management culture,
management philosophies as well as management practices.
Other emerging issues in Indian Macro Level Human Resource Planning are
restructuring, TQM practices, usage of Information technology means etc.
1.11 Effectiveness of Macro level Manpower Planning and Policy:
Human resource planning is concerned with the effective utilization of manpower to
achieve organizational short term and long term objectives. HR manager match the
demand of labor requirement in the firm with the supply from the labor market. He
considers the social and cultural constraints prevailing in the labor market. Labor Policy
and National employment policy are framed on the basis of the demand and supply
figures as supplied by the agencies. The effectiveness of policy at macro level is
depended upon manpower information. The sources of statistical information suffer
from serious gaps and inadequacy. The quality and effectiveness of future macro level
manpower planning depends upon the accuracy and adequacy of the information inputs.
The National level institutions require to improve the quality of current sources of data
and to build IT infrastructure for generating Data banks to support data adequacy and
accuracy.
Q. 4 The Man power requirement Approach includes
a. Three main steps to forecast the demand for the educated manpower.
b. Five main steps to forecast the demand for the educated manpower.
c. Four main steps to forecast the demand for the educated manpower.
d. Two main steps to forecast the demand for the educated manpower.
Q. 5 The demand and supply are not balanced
a. in developed economies
c. in developing economies
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1.13 Summary:
Human resource planning is an operational activity which is concerned with the determining manpower requirements. It meets the requirement with qualitative and quantitative aspects. It includes functions of management such as planning, organizing, controlling, directing, staffing and supervising of human resources. HRP has the features such as specified objectives, focuses on personnel requirements, Manpower Inventory, Ascertaining of Demand and Supply, Formulation of Healthy Work Environment. Human Resource Planning ensures the proper workforce with the required skills, education, experience, knowledge and aptitude for the work. Planned Human Resource Planning only makes possible the production process in undisrupted manner. Human Resource Planning is continuous process of recruiting, selecting and training of employees. It is required to train the current workforce as per the prevailing situations in the market. Human resource planning is a double-edge weapon. The objective of Human Resource Planning is to get best results through optimum utilization of the human resources. It is possible through effective human resource strategies.
Human resource planning at macro level is concerned with the assessing training needs to reconcile the labour supply with the labour demand in the economy. Macro level Human Resource Planning is undertaken by the Ministry of Labour/Education and Ministries of Planning/Finance. Generally the focus is given to the supply of the manpower resources rather than the adequacy of the demand. It is always mismatched due to inadequate quality in terms of education, lack of skills and experience. The skilled labour is only solution for the future industrial development in economy. It becomes critical issue for the developing country like India. There are few factors which affect the Marco level manpower planning such as Employment-Unemployment Situations, Technological Changes, Organizational Changes, Demographic Changes, Skill Shortages, Government legislation, Lead Time etc.
Macro level manpower planning can be broadly divided into the three approaches such as The Man power requirement Approach(MRA), Rate of Return Approach/ Cost Benefit Analysis and The Social Demand Approach
The Man power requirement Approach (MRA): It is a dominant model of manpower
planning which is known as the MRA. It came into knowledge to the economists in
the early 1960. There are three steps as per this approach to forecast manpower
requirement such as projecting the demand & supply of educated manpower and
balancing supply and demand. In Rate of Return Approach/ Cost Benefit Analysis,
Net return from educational expenditure is calculated. The present value of the flow
of future net income is calculated for each educational program. The programmes
with high returns/ positive returns are promoted where as programmes with negative
value or zero returns are abandoned or at least not promoted. The Social Demand
Approach is an assessment of educational requirement of society. The approach is
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capable of assessing the number of students with their skills and educational trainings.
There are few factors which affect the results of the approach such as Income of
educated people, taste and references of household for education, Demographic
characteristics such as fertility and mortality, Direct costs of education, student grants
and Existing standard of admission to various levels of education.
The demand and supply are not balanced in developing economies and as a result
shortage of manpower becomes global problem. Ageing population is the problem for
the developed economies whereas the absence of proper initiative at the national level
for man power planning creates shortage in the developing economies. The
effectiveness of policy at macro level is depended upon manpower information. The
sources of statistical information suffer from serious gaps and inadequacy. The quality
and effectiveness of future macro level manpower planning depends upon the accuracy
and adequacy of the information inputs. The National level institutions require to
improve the quality of current sources of data and to build IT infrastructure for
generating Data banks to support data adequacy and accuracy.
1.14 Glossary
Man-Power Planning: It is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.
Macro Level Man-Power Planning: Human resource planning at macro level is concerned with the assessing training needs to reconcile the labour supply with the labour demand in the economy. Macro level Human Resource Planning is undertaken by the Ministry of Labour/Education and Ministries of Planning/Finance.
Lead Time: It is gestation period for the employees to learn and implement new production and managerial techniques in the organization.
The Man power requirement Approach (MRA): It came into knowledge to the economists in the early 1960. There are three steps as per this approach to forecast manpower requirement such as projecting the demand & supply of educated manpower and balancing supply and demand.
Rate of Return Approach/ Cost Benefit Analysis: Net return from educational expenditure is calculated. The present value of the flow of future net income is calculated for each educational program. The programmes with high returns/ positive returns are promoted where as programmes with negative value or zero returns are abandoned or at least not promoted.
The Social Demand Approach: It is an assessment of educational requirement of society. The approach is capable of assessing the number of students with their skills and educational trainings.
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Q. 1 d
Q. 2 a
Q. 3 c
Q. 4 b
Q. 5 c
1.16 References
1. William B., Werther and Keith Davis, Human Resources and Personnel Management, Fourth Edition , McGraw-Hill, New York,1993,p.195
2. Flippo, Edwin B, Personnel Management, McGraw-Hill, New Delhi, 1980
3. Heneman, Yodder D., H.G. Turn Bull and J.G. Stone, Handbook of Personnel Management and Industrial Relations, McGraw-Hill, New York,1968
4. Behling, O. Labovitz, G. And M. Gainer, “College Recruiting: A theoretical Base,” Personnel Journal, No. 47, 1968, pp. 13-19
5. Yoder, Dale, Personnel Management and Industrial Relations, Prentice Hall of India, New Delhi, 1972, p. 263
6. Keith L.A., Guibeline, C.E., Business Management, 1958, p.197
1.17 Suggested Readings:
Bhattacharya D., Human Resource Planning, Third Edition, Excel Books, New Delhi, 2012
Gatewood R., Field H., Barrick M., Human Resource Selection, Cengage Learning India Pvt. Ltd., New Delhi, 2008
Maitland I, Manpower Planning and Recruiting Including Induction, First Edition, Infinity Books, New Delhi, 2005
Mamoria C., Gankar S., A textbook of Human Resource Management, Seventh Edition, Himalaya Publishing House, 2008
Pattanayak B., Human Resource Management, Second Edition, Prentice Hall of India Pvt. Ltd.,2003
1.18 Terminal and Model Questions
Explain the role of Human Resource Planning in the organization.
Describe the Strategies for effective Human Resource Planning.
What do you mean be Man Power Planning at Macro Level? How the scope of macro
level manpower planning is different as compared to Micro level?
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Discuss approaches to Macro level Man Power Planning.
What are the emerging trends & Issues in Man Power Planning?
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CHAPTER 2 MANPOWER PLANNING PROCESS
“The problem largely comes from the fact that when it comes to people, everyone is an
expert.”- Fred Luthans
2.6 HR Supply Forecast
2.10 Summary
2.11 Glossary
2.13 References
2.1 Objectives
To understand the term HR Demand Forecast & factors affecting to it
To understand role of HR Demand Forecast
To understand techniques of HR Demand Forecast
To understand HR supply Forecast:
To understand Role played by HR supply Forecast
To understand aspects of HR supply Forecast
To understand the scope of HR Programming
To understand the functions of HR plan implementation
2.2 Introduction:
Manpower Planning ensures the proper workforce with the required skills, education,
experience, knowledge and aptitude for the work. Planned Human Resource Planning
only makes possible the production process in undisrupted manner. Human Resource
Planning is continuous process of recruiting, selecting and training of employees. It is
required to train the current workforce as per the prevailing situations in the market.
2.3 HR Demand Forecast:
Demand forecasting is the technique to estimate the future requirement for human resources
in the terms of quantity and quality. The long term plans and annual budgets are converted
into the operational activities. The total numbers of man hours are counted on the basis of
above mentioned calculations. Sales budget may be converted into the production plans in
case of the manufacturing unit which shows the expected product line with quantity to be
produced in each period. Total number of working hours for each category may be calculated
& drew out the requirement for each category work-force.1 once working hours are available,
anyone can calculate the quantity and quality of required personnel.
There are two types of factors which are affecting the demand forecasting decision such as
external factors and internal factors. External factors include the Foreign and domestic
competition, economic climate, regulations/laws, technological changes and social factors.
Internal factors involve budgetary constraints, production levels, introduction of new
products and services, organizational structures and restructuring etc.
Accurate demand forecasting method has various advantages for the organization: 1. It
quantifies the number of man power required for producing specified number of units or
offering services; 2. Determine the exact requirement of combinations of man-power for the
near future; 3. Analyse different levels of the skilled workers in each department and curtail
the cost; 4. Avoid manpower shortage situation and minimise the industrial conflict
situations due to improper recruitment procedures; 5. Fulfil all legal and social
obligations/requirement for the reservation of jobs.
2.4 HR Demand Forecast Techniques
There are various types of forecasting techniques available in the labour market. Companies
generally follow more than one technique. Following are the broadly popular
methods/techniques for demand forecasting:
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1. Managerial Judgment: It is the simplest method for demand forecasting. HR
manager arrange a meeting of Heads of the department and ask them for their man-
power requirement. They collectively take decision about the quantity and quality of
the man-power requirement. The technique may follow the bottom-up or top-down
approach. In the bottom-up approach, the line supervisors send requisitions for future
demand and managers decide the final requirement, where as in the second approach,
top managers decide about the work-force required for the near future and inform the
line supervisors. Both approaches are not correct in the absence of second party
consent. It would be useful and appropriate whenever both parties are involved fully
to forecast the man power requirement. Following is the forecast form to be filled up
by the HR manager after discussing with the departmental heads:
Table 2.1 Staff Forecast Form
Category of Staff…………………………………… Year………..
Sr. No. Staff Movements &
1.1…(excluding
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above)
provided during the
February others to
pp.70
2. Ratio-trend Analysis: It is mathematical formula to predict about the man-power
requirement. The forecast in this method is depended upon the past ratios. The
relationship between number of workers and sales in the organization becomes base
for the future predictions about the workers requirements. Sales Budget determines
the expected sales for the next month/quarter and few expected allowances are added
into that. Following table shows the analysis of actual and forecast ratios, between
the number of routine proposals to be processed by an insurance company’s
underwriting department and the number of underwriters employed could be used to
forecast future requirements.2
No. of Employees Ratio
-3 1500 150 1:10
Actual -2 1800 180 1:10
Last Year 2000 180 1:11
Next Year 2200# 200* 1:11
Forecast +2 2500# 210* 1:12
+3 2750# 230* 1:12 # Calculated by reference to forecast activity level. *Calculated by applying forecast ratio to forecast activity levels.
Aswathappa K., Human Resources and Personnel Management, Second Edition,
pp.71
3. Work study techniques: The techniques can be used in case the work measurement
may be calculated through length of operations & the number of manpower required.
Production budget is the first step in the manufacturing units. It shows the estimated
volumes for sales and production outputs as per department. The budgeted output is
converted into standard hours of direct labor. Total number of working hours is
divided into by number of hours of actual working of supervisors to get the required
number of employees. The idle gap is maintained in the calculations for the
absenteeism and idle time. Following is the simplified example of the work study
technique.3
2. Standard hours per unit 5
3. Planned hours for the year 1,00,000
4. Productive hours per man/year(allowing normal overtime,
Absenteeism and idle time) 2,000
5. Number of direct workers required(4/5) 50
Work study technique is useful for estimating direct labour, it can be useful to
calculate indirect labour requirement with the usage of Ratio between two categories.
Other categories of employees may be calculated with the same logic.
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4. Delphi Techniques: It is a Greek oracle used for to forecast the manpower
requirement. It needs discussions with the managers to arrive at a requirement of the
man-power in their own department. Human Resource planning managers act as
mediatory between experts and managers.
2.5 Check Your Progress:
2.6 HR supply Forecast:
HR demand analysis determines the future requirement of the employees in the firm.
Manpower planning is focussed on the fulfilment of work force requirement timely at the
right cost. It requires the balance of demand in the firm and labour supply from the
various sources of recruitment. Demand analysis defines the requirement of employees
with the expected skills, abilities, education, experience etc, whereas supply forecast
determines whether it will be able to procure the required number of personnel and the
source for such procurement in time. HR supply forecasting suggests the figures about the
availability of manpower from the internal source of recruitments and external source of
recruitments. The calculations about the absenteeism, wastage of time, internal
Q.1 It is the technique to estimate the future requirement for human resources in the terms of quantity and quality.
a. HR Supply Forecast b. HR Demand Forecast c. HR Forecast d. Demand Forecast
Q.2 Managerial Judgement is the simplest method for
a. HR Demand Forecast b. HR Supply Forecast c. HR Forecast d. Demand Forecast
Q.3 Bottom-up Approach belongs to
a. Work study techniques b. Flow Charts c. Ratio-trend Analysis d. Managerial Judgment
Page 20 of 179
movements are considered at the time of HR supply forecast. The changes in working
conditions, working hours, changes in productivity and other factors are also considered
at the time of determining the supply forecast.
HR supply forecast plays vital role in the manpower planning in any firm. Importance of
supply forecast is explained in the following points:
It helps the organization in determining the Human Resource requirement in the terms
of skills, education, experience, etc. Timely information helps to manage the
recruitment process properly.
It facilitates the likely working groups / teams which plays critical role in improving
productivity for the firm.
It analyses the productivity level of the existing working teams as well as individual.
It avoids the working conditions which hinders the productivity such as shortage of
employees/workers at the peak time or idle workers at the time of recession.
It monitors the regulatory/legal implications for recruitment and hiring process.
The supply analysis includes mainly three aspects such as;
1. Existing Human Resources
2. Internal supply
3. External supply
1. Existing Human Resources: Human Resource Audits help in determining the HR
inventories available in the firm. It describes the HR Inventories with their skills,
abilities, capabilities, duties, responsibilities, educational background as well as work
experience. It may clearly mention the Human resource assets the firm has. The HR
audit for the non-managerial positions is known as the skills inventory, whereas the
managerial positions audit is known as management inventories. Inventory audit
records the qualities and even weaknesses of the employees in Multinational
companies. The summary of Inventory audit may guide the managers to implement
strategies effectively.
a. Skills Inventory: It determines the worker’s information about their skills,
working experience, their span in the firm, educational qualifications, their
achievements, their landmarks in the firm etc. It includes the workers who are
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non- working on the management posts. The manufacturing firms have generally
maximum workers in this category. The detailed information is used to prepare
proper plan for promotion and transfers. There are seven broad categories of
information included in each skills inventory as follows:
1. Personal data includes age, sex, marital status
2. Skills includes education, job experience, training
3. Special qualifications involves membership in professional bodies, special
achievement, etc
4. Salary & Job History comprises present & past salary, dates of pay rises,
various jobs held
seniority
6. Capacity of Individual includes scores on psychological & other tests, health
information
location, type of jobs, timings of jobs/shifts
The concept of skills inventory becomes popular after the increased uses of
computer and advanced technology at the work places. Generally, employee’s
personal files contain the above-mentioned particulars but it takes long time to
compile in the proper format. Nowadays Human Resource Information System is
adopted by the firm which is proved as more efficient in the terms of accuracy,
cost and time. Properly designed skills inventory system facilitates management to
identify workers with special skills. It may useful to introduce advanced
technology, processes easily and at the minimum cost.
b. Management Inventory: Management inventory determines personal
information of the managers in the firm. Generally inventory includes data
regarding work history, strengths, weaknesses, promotion potentials, career goals,
personal data, number of workers supervised, total budget manages, previous
duties, special achievements etc. The identification of the weaknesses becomes
base for the employees training schedules. Human Resources Information System
(HRIS) provides updated and segregated information about the employees’
potentials which becomes base for their promotions. HRIS may be updated at least
once in a year. The managers are asked to mention their latest achievements in the
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terms of educational qualifications, target achievements or any special awards
during previous year. They are asked to mention new skills acquired, International
or national participation, seminar attended, paper published, patents or copyrights
owned by them.
2. Internal Supply: Internal supply of employees is the inventory of man power/work
force of the organization. Following are few techniques which used for determining
the internal inventory of human resources available in the firm:
a. Inflows and Outflows
d. Productivity Level
e. Movement among Jobs
a. Inflows and Outflows: The method focuses on the actual movement of workforce
from one place to another. It determines transfers, promotions as an inflow and
resignations, discharges, demotions, retirements, promotions as outflows of the
human resources from the firm. The final figure may arrive after calculating the
current personnel, outflow and inflows. The method is very easy to understand and
calculate. It is a cost effective method. It is sometimes not practically possible to get
the figures about the discharges or resignations in advance. Accurate forecasting
about the transfers and promotions may not be possible in each case. The decisions
regarding discharges or demotions are generally taken by the group which could not
be predicted in advance. The calculations can be done on the basis of past experiences
or addition of margins in the figures.
b. Turnover Rate: It is a relationship method in which the relationship of few variables
are settled down by the experts. The figures are calculated on the basis of following
formula:
----------------------------------------------------------- × 100
Average number of employees during the year
The calculations are easy to understand. Total separations are compared with the
workforce of the firm for the year. Manpower turnover rate suggests total number of
employees usually left the firm. The marginal workforce is hired at higher side to
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cope up with the problem of separations. If organization have 25% turnover rate, firm
shall appoint 25% more employees at the time of next year recruitments.
c. Absenteeism and Conditions of work: Absenteeism is unauthorized absence from
the work. It can be described as the worker is scheduled to work but fails to report for
his duty. Absenteeism disturbs the routine operational activities. Following is formula
for calculating absenteeism:
Absenteeism = -------------------------------------------------------------------- × 100
Average numbers of persons × Number of working days
Absenteeism reduces the productivity due to lack of manpower available at the work
place. It considers as a governing factor at the time of determining the future supply
of labor. Working conditions are also affects the inventory of human resources such
as changes in working hours or timings affects rate of absenteeism. Few other factors
can be changes in normal working hours, overtime policies, length and timing of
holidays, retirement policy, the policy for employing part-times, changes in shift
systems in manufacturing firms etc.
d. Productivity Level: Productivity denotes per employee output for a specified period.
There is a direct relation of cost of production with the productivity. Productivity
increases cost of production decreases and complete opposite situation prevails in the
opposite scene. The requirement for the workforce is also changed as the changes
occurred in the productivity levels. If employee produces more 10% in the current
year, the future labor requirement decreases by 10%. Firm may produce same quantity
with 10% less manpower or produce more 10% with the existing manpower. HR
experts may note the changes in productivity level for determining labor requirement.
e. Movement among Jobs: Employees join the firm with the objective of career
succession. Firms recruit employees for the responsible top posts from the middle
management posts. These movements from lower/middle posts to higher posts
resulted into the lower level additional manpower requirement. Generally movements
can be analyzed through the working rules and regulations of the firm. Firm may fix
the promotions after working 7 successful years with the firm. The rule is self-
explanatory to calculate employees experience and vacant positions for the lower
positions in the firm.
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3. External Supply: HR department is required to analyse availability of the suitable
candidate for the vacant positions from external sources. There are few merits to hire
employees from external sources as compared to internal source such as availability
of new experience, to replenish the vacant position, to fulfil additional manpower
requirement due to diversification and expansion etc.
External sources are different for each company as well as industry. Geographical area
also affected the type of source, the firm may use as an external source of recruitment.
Company may contact the educational institutions for primary level positions whereas the
consultants or competitors may be analysed for the higher level positions. Sometimes
company inform its present employees about the job opening.
2.7 HR Programming: HR programming is the planning process which reconciles the
status of present employees and exact supply of man power from the external sources. The
aim of the programming is filling up the vacancies at the right time and by the right
candidates. It plays very critical role in human resource planning.
2.8 HR plan implementation: Implementation requires converting HR plans and policies
into actual action. A series of activities are initiated to achieve the specified objectives. Few
activities are Recruitment, Selection and Placement, Training and development, Retraining
Redeployment, Retention Plan and Downsizing Plan.
Once the job vacancies are identified, the planned efforts are conducted for specifying the
suitable source and method for recruitment. The selection methods should be well-designed
to consider the demand of the job profile. The HR team takes care of legal consideration of
reservation policy before selecting any candidate as an employee. Firms are conducting tests
for specific job openings but few companies hire consultant for the job. Companies may
adopt a policy of hiring management trainees for specified period. They have assigned few
projects and analysed their working attitude and skills to solve the problems. They placed on
job after successfully completion of tasks assigned or completion of time period.
Training and development programme is required to upgrade the skills and abilities of the
employees. It shall improve the performance of the employees which results into the
improved productivity of the firm. The program includes the identification of the training/
employees, allocating the expenditures, conducting training programme in-house. The HR
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team requires setting the frequency of the training and development programs for
departments, units as well as individuals.
Redeployment is required at the time of discontinuation of the product line as well as the
changes in the technology/machinery/ manufacturing methods. The employees are supposed
to redeploy in the new department and to be trained for the new method. Retraining is
required at the time of introduction of the technological changes in the manufacturing units.
Employee turnover increases the recruitment and selection cost, training and development
cost, administration and manufacturing cost. It also decreases productivity, efficiency and
effectiveness in implementation of the operational activities. Retention plan covers few
functions to decrease the employee’s turnover rate such as compensation plan, performance
appraisal, conflict management, career advancement methods, induction crisis, shortages,
unstable recruits as well as downsizing plans.
Compensation plan focuses on increasing pay levels to meet competition, improving pay
scale to remove inequities, altering pay systems to reduce excess fluctuations, introducing
incentive plans which match with the performances of employees. Performance appraisal is
well-designed function to satisfy the employees by providing positive results which shall be
converted into the monetary benefits. Career advancement schemes provide better
opportunity to improve job positions in the organization. Many employees leave the
organization for the better career prospects. Sometimes employee leave the organization due
to the conflicting situations prevailed in the department/ unit. It may be with his supervisor,
firm may arrange proper grievance cell to redress the conflicts and control the employee
turnover.
Induction plan improves the selection and hiring methods through which each job aspirant
must be given the actual job profile in terms of the responsibilities, duties, autonomy as well
as the pay and other fringe benefits. Any misleading information conveyed by the selection
and recruitment department increases the rate of labour turn over. Shortages plans focus on
the improvement in the recruitment, selection and training, introduction of better methods of
training and scheduling work in the peak period.
HR personnel should take care of the unstable candidates by analysing their application. Few
employees have tendency to leave the firm frequently which has negative impact on the
company’s productivity.
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Downsizing is required in the case of discontinuation of the product line/unit. Surplus
employees may be trimmed by the company in the planned way. It indicates the following
detailed strategies:
1. Who is going to be made redundant, where and when the process may start;
2. Plans for redevelopment and redeployment, where these are not applicable
For the redeployment plan
3. Policy to help employees suffered due to downsizing decision in getting jobs at new
firms.
4. Consultation with the union members and employees for the implications of
downsizing
5. Payment policy for the affected employees
Control & Evaluation: The HRP does not implement successfully in the absence of
evaluation and control functions. The budgetary expenditures play significant role in each
decision for human resource planning. The HR plan monitors the progress of the plan
through targets, budgets and standards. The policies and strategies should clearly mention
responsibilities for implementation of the plan as well as reporting authorities at each level.
They may have clear idea about the total number of current employees, requirement,
sanctioned posts, budgetary limitations, legal and social constrains for employment etc. They
should report about the employee turnover ratio, employment cost against budgets, trends in
wastage, training and development cost, downsizing cost, etc.
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2.9 Check Your Progress
2.10 Summary:
HR Demand forecasting is the technique to estimate the future requirement for human
resources in the terms of quantity and quality. There are two types of factors which are
affecting the demand forecasting decision such as external factors and internal factors.
External factors include the Foreign and domestic competition, economic climate,
regulations/laws, technological changes and social factors. Internal factors involve budgetary
constraints, production levels, introduction of new products and services, organizational
structures and restructuring etc. Accurate demand forecasting method has various advantages
for the organization.
There are various types of forecasting techniques available in the labour market. Companies
generally follow more than one technique. There are the few broadly popular methods
/techniques for demand forecasting such as Managerial Judgment, Ratio-trend Analysis,
Work study techniques, Delphi Techniques, Flow Charts, etc. Managerial Judgment
technique may follow the bottom-up or top-down approach. In the bottom-up approach, the
Q. 4 the supply analysis does not include the following aspect
a. Existing Human Resources b. Internal supply c. External supply d. Foreign Human resource and supply
Q. 5 the HR audit for the non-managerial positions is known as
a. Inventory Audit b. Skills Inventory c. Managerial Audit d. Managerial Inventory
Q. 6 A technique which is not used for determining the internal inventory of human resources available
a. Inflows and Outflows b. Turnover Rate c. Productivity Level d. Delphi Techniques
Page 28 of 179
line supervisors send requisitions for future demand and managers decide the final
requirement, where as in the second approach, top managers decide about the work-force
required for the near future and inform the line supervisors. Ratio-trend Analysis is
mathematical formula to predict about the man-power requirement. The forecast in this
method is depended upon the past ratios.
Work study techniques can be used in case the work measurement may be calculated through
length of operations & the number of manpower required. Work study technique is useful for
estimating direct labour, it can be useful to calculate indirect labour requirement with the
usage of Ratio between two categories.
Demand analysis defines the requirement of employees with the expected skills, abilities,
education, experience etc, whereas supply forecast determines whether it will be able to
procure the required number of personnel and the source for such procurement in time. HR
supply forecasting suggests the figure about the availability of manpower from the internal
HR supply forecasting suggests the figures about the availability of manpower from the
internal source of recruitments and external source of recruitments. HR supply forecast plays
vital role in the manpower planning in any firm. The supply analysis includes mainly three
aspects such as; Existing Human Resources, Internal supply and External supply.
The HR audit for the non-managerial positions is known as the skills inventory, whereas the
managerial positions audit is known as management inventories. Inventory audit records the
qualities and even weaknesses of the employees in Multinational companies. Skills Inventory
determines the worker’s information about their skills, working experience, their span in the
firm, educational qualifications, their achievements, their landmarks in the firm etc.
Management inventory includes data regarding work history, strengths, weaknesses,
promotion potentials, career goals, personal data, number of workers supervised, total budget
manages, previous duties, special achievements etc. Internal supply of employees is the
inventory of man power/work force of the organization. Few techniques are used for
determining the internal inventory of human resources available in the firm such as Inflows
and Outflows, Turnover Rate, Conditions of work and absenteeism, Productivity Level and
Movement among Jobs.
Inflows and Outflows method focuses on the actual movement of workforce from one place
to another. It determines transfers, promotions as an inflow and resignations, discharges,
demotions, retirements, promotions as outflows of the human resources from the firm.
Page 29 of 179
Turnover Rate is a relationship method in which the relationship of few variables are settled
down by the experts. Absenteeism is unauthorized absence from the work. It can be described
as the worker is scheduled to work but fails to report for his duty. Working conditions are
also affects the inventory of human resources such as changes in working hours or timings
affects rate of absenteeism. Few other factors can be changes in normal working hours,
overtime policies, length and timing of holidays, retirement policy, the policy for employing
part-times, changes in shift systems in manufacturing firms etc.
Productivity denotes per employee output for a specified period. There is a direct relation of
cost of production with the productivity. HR department is required to analyse availability of
the suitable candidate for the vacant positions from external sources. There are few merits to
hire employees from external sources as compared to internal source. HR programming is the
planning process which reconciles the status of present employees and exact supply of man
power from the external sources.
HR Implementation requires converting HR plans and policies into actual action. Few
activities are Recruitment, Selection and Placement, Training and development, Retraining
Redeployment, Retention Plan and Downsizing Plan. Downsizing is required in the case of
discontinuation of the product line/unit. Surplus employees may be trimmed by the company
in the planned way.
2.11 Glossary
HR Demand Forecasting: It is the technique to estimate the future requirement for
human resources in the terms of quantity and quality.
Managerial Judgment: It is the simplest method for demand forecasting.
Bottom-up Approach: The line supervisors send requisitions for future demand and
managers decide the final requirement.
Top-down approach: Top managers decide about the work-force required for the near
future and inform the line supervisors.
Ratio-trend Analysis: It is mathematical formula to predict about the man-power
requirement. The forecast in this method is depended upon the past ratios.
Work study techniques: The techniques can be used in case the work measurement
may be calculated through length of operations & the number of manpower required.
Page 30 of 179
HR supply Forecast: It suggests the figures about the availability of manpower from
the internal source of recruitments and external source of recruitments. The supply
analysis includes mainly three aspects such as; Existing Human Resources, Internal
supply and External supply
Skills inventory: The HR audit for the non-managerial positions is known as the skills
inventory.
Management inventories: The managerial positions audit is known as management
inventories. Inventory audit records the qualities and even weaknesses of the
employees in Multinational companies.
Inflows and Outflows: The method focuses on the actual movement of workforce
from one place to another. It determines transfers, promotions as an inflow and
resignations, discharges, demotions, retirements, promotions as outflows of the
human resources from the firm.
Turnover Rate: It is a relationship method in which the relationship of few variables
are settled down by the experts.
Absenteeism : It is unauthorized absence from the work. It can be described as the
worker is scheduled to work but fails to report for his duty.
Productivity Level: Productivity denotes per employee output for a specified period.
There is a direct relation of cost of production with the productivity.
HR Programming: HR programming is the planning process which reconciles the
status of present employees and exact supply of man power from the external sources.
Downsizing: It is required in the case of discontinuation of the product line/unit.
Surplus employees may be trimmed by the company in the planned way.
2.12 Answer to Check Your Progress
Q. 1 c
Q. 2 a
Q. 3 d
Q. 4 d
Q. 5 b
Q. 6 d
1. Armstrong Michael, A handbook of Personnel Management Practices, Third Edition,
1988,p.206
2. Armstrong Michael, op.cit.,p.209
3. William B., Werther and Keith Davis, Human Resources and Personnel Management,
Fourth Edition , McGraw-Hill, New York,1993,p.195
4. Flippo, Edwin B, Personnel Management, McGraw-Hill, New Delhi, 1980
5. Heneman, Yodder D., H.G. Turn Bull and J.G. Stone, Handbook of Personnel
Management and Industrial Relations, McGraw-Hill, New York,1968
6. Behling, O. Labovitz, G. And M. Gainer, “College Recruiting: A theoretical Base,”
Personnel Journal, No. 47, 1968, pp. 13-19
7. Yoder, Dale, Personnel Management and Industrial Relations, Prentice Hall of India,
New Delhi, 1972, p. 263
8. Keith L.A., Guibeline, C.E., Business Management, 1958, p.197
2.14 Suggested Readings:
Bhattacharya D., Human Resource Planning, Third Edition, Excel Books, New Delhi,
2012
Gatewood R., Field H., Barrick M., Human Resource Selection, Cengage Learning India
Pvt. Ltd., New Delhi, 2008
Maitland I, Manpower Planning and Recruiting Including Induction, First Edition,
Infinity Books, New Delhi, 2005
Mamoria C., Gankar S., A textbook of Human Resource Management, Seventh Edition,
Himalaya Publishing House, 2008
Pattanayak B., Human Resource Management, Second Edition, Prentice Hall of India Pvt.
Ltd.,2003
2.15 Terminal and Model Questions
Explain the term HR Demand Forecast & discuss factors affecting to it.
HR Demand Forecast plays crucial role in proper manpower planning.- Discuss
Which techniques are available for HR Demand Forecasting in the firm?
What do you understand by the term HR supply Forecast? Discuss the role played by HR
supply Forecast.
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Which functions are performed through HR plan implementation?
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CHAPTER 3 JOB ANALYSIS AND DESIGN
“The measure of who we are is what we do with what we have.”-Vince Lombardi
Structure
3.6 Methods of collecting Job Data
3.7 Problems of Job Analysis Process
3.8 Job Design
3.12 Summary
3.13 Glossary
3.15 References
3.1 Objectives
To understand process of Job Analysis
To understand Methods of collecting Job Data
To understand Problems of Job Analysis Process
To understand the concept of Job Design
To understand the factors affecting Job Design
To understand Techniques of Job Design
Page 34 of 179
3.2 Introduction
Manpower planning and its process are discussed in the earlier chapters. The perfect planning
of man power is not possible in the absence of the job analysis. No one can plan anything
without understanding of the basic component thoroughly. To understand the jobs in details,
the job analysis is required. It is the process to identify the requirement of the job and what a
worker must possess to perform job successfully.
3.3 Job Analysis Meaning:
It is a process to collect the detailed information about the job. It can be broadly classified
into two broad categories such as Job Description and Job Specification. Job Description
includes the details regarding job title, location, job summary, Duties, working conditions as
well as hazards if any. It also mentions machinery, tools, equipment, materials, forms used
and supervision given or received. Job specification mentions a statement of human
qualification necessary to do the job. It usually contains the items such as education,
experience, training, judgement, initiative, physical efforts, physical skills, responsibilities,
communication skills, emotional characteristics. Sometimes it includes the unusual sensory
demands such as sight, smell and hearing.
As per Edwin B. Flippo, “Job analysis is the process of studying and collecting information
relating to the operations and responsibilities of a specific job. The immediate products of
this analysis are job descriptions and Job specifications.”
According to Robbins, “Job analysis is a systematic exploration of the activities within a job.
It is a basic technical procedure, one that is used to define the duties, responsibilities and
accountabilities of a job.”
Herbert & Hereman mentioned “A Job is a collection of tasks that can be performed by a
single employee to contribute to the production of some product or service provided by the
organization. Each job has certain ability requirements (as well as certain rewards) associated
with it. Job analysis is the process used to identify these requirements.”
3.4 Job Analysis Process:
Job Analysis is a systematic process with the various kinds of strategic decisions. HRP is
useful for the personnel planning, recruiting, hiring as well as performance appraisal. It can
be possible on the basis of the perfect job analysis. The mission and vision of the
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organization are divided into the operational jobs. Job analysis assures the validity of the
division of the jobs itself. Following steps are followed in Job Analysis process:
Strategic Choices: Firms must consider at least four aspects of the job analysis
strategically such as employee involvement, level of details, timings and
frequency of job analysis and orientation of job analysis.
Job analysis is nothing but collecting data in regard to the various jobs in terms of
duties, responsibilities, skills and knowledge involved in that job. Generally
employees are asked to furnish details about their own jobs. The level of
employee involvement in the process is a debatable question. Employees
generally inflate their jobs to mention their importance. They consider it as a basis
of performance appraisal. In order to avoid the job dissatisfaction during the
process, the firm should mention the objectives of the job analysis clearly to
employees. The level of details of job analysis is based upon the time and motion
studies. Nature of job becomes base for this aspect. The class four workers have
more movements as compared to the HR manager of the firm. The frequency of
movements of job is relevant analysis in case of the crane operator whereas the
duties and responsibilities involved is more relevant level in case of managerial
posts. The purpose of job analysis plays important role such as the detailed
analysis is required to make it as an input for the training program whereas less-
detailed analysis may work in case of just framing out rules and clarification about
duties among job holders. The frequency of the process depends upon the
strategies of the firm. Few example of the frequency are as follows: 1. First time
work allocation in case of the newly established firm, 2. Formation of new job, 3.
Changes in job due to adaptation of new technology, method, process or
technique, 4. Introduction of new remuneration plan, 5. Inequities between job
demands and remuneration it carries. Orientation of the job analysis depends
upon the nature of industry as well as the adaptation of technological changes by
the management. The firm should frame out the process with the future orientation
if the firm is ready to adapt changes due to changes in environmental components.
Few firms are conducting the process with the past oriented approach in which the
old methods are given importance and made basis for the job analysis.
Information Gathering: There are basically three important issues in which the
firm should think over once. 1. Type of data. 2. Methods of data collection. 3.
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Appointment of the person. Type of data consist the details of data collection,
elements of jobs etc. It depends upon the purpose of the job analysis, time and
budget constraints. There are several methods for the data collection in regard to
job analysis such as Observation method, Interviews, Questionnaire, Checklists,
Technical Conferences, Diary method, etc. Few Quantitative methods are useful
for the managerial or technical jobs such as Position Analysis Questionnaire,
Management Position Description Questionnaire and Functional Job Analysis.
There are three types of appointment of the person for the job analysis process. 1.
Trained job analysts, 2. Supervisor and 3. Job Incumbents. Each alternative have
its merits and demerits. Trained job analysts provide the objectivity and
standardization in the overall Job description and Job Specification but require a
good budget in the form of additional cost for the unit. Supervisor and Job
Incumbents provide the detailed information about the duties, responsibilities and
skills attached to the job. It does not require any additional cost but it may not be
objective and standardized for the overall process. Following Table explains the
detailed merits and demerits of each alternative.
Table 3.1 Persons responsible for Data Collection- Merits and demerits
Responsible Persons Merits Demerits
Consistent Reporting of
the job
also analyze their jobs)
Source: Personnel/ Human Resource Management by Leap and Crino, pg.133
Information Processing: Once the job related data is gathered, the next step is to
process the data properly to analyze the main components namely Job Description
and Job Specification. Job description mentions the listing of the job title, tasks,
duties and responsibilities involved in it whereas Job specification mentions the
list of employee qualification, skills, and abilities required to perform the job
perfectly. These both terms sometimes used interchangeably by the practitioners.
Uses of Job Analysis: Job related data is useful for the effective Human Resource
Planning. There are various uses of analysis as follows: 1. Human Resource
Planning, 2. Recruitment & Selection, 3. Training & Development, 4. Job
Evaluation, 5. Remuneration, 6. Performance Appraisal, 7. Personnel Information,
8. Safety & health.
1. Human Resource Planning: It is related to the number and the type of
personnel required in near future for the smooth functioning. The calculations
of personnel requirement depends upon the job profiles which is supplied
through the Job Analysis.
2. Recruitment & Selection: HR manager may decide about the source of
recruitment on the basis of job profiles only. An understanding about the skills
and knowledge level required for the jobs makes HR manager efficient enough
to plan it properly. Selection of the suitable person is also a difficult task
which is possible without the job description and job specifications.
3. Training & Development: Firms spend heavy funds for the training &
development of the employees. It is a planned effort to utilize minimum
resources to uplift employees’ level to the optimum. Selection of the
employees for the training is also possible with the help of Job analysis.
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4. Job Evaluation: It involves determination of relative worth of each employee
in terms of jobs. It is basically formed the base for establishing wage and
salary differentials. It can be framed on the basis of the Job specifications and
Job Descriptions.
5. Remuneration: Wages and salary administration is based upon the job profiles.
Employee should get equitable grades as per his own job profile. Wages and
salary administration also considers the fringe benefits, bonus and other
benefits. The inequitable wages becomes the main reason of the Industrial
conflict.
6. Performance Appraisal: Performance appraisal is a process to match the actual
performance of the employees with the expected performance. The detailed
job analysis can explain the expected jobs to be done by the employees. It
helps to prepare systematic bases for the performance appraisal.
7. Personnel Information: It helps to maintain proper data for the employees. Job
analysis improves the administrative efficiency by providing detailed job
profiles. It also provides the decision support information which helps for the
decisions concerning the planning, acquisition, development, utilization and
remuneration.
8. Safety & health: It uncovers the hazardous conditions and unhealthy
environmental factors prevailing in the manufacturing units. The corrective
measures can be taken to minimize and avoid the possibilities of accidents.
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3.6 Methods of Collecting Job Data:
There are various types of methods for data collection in respect to the job analysis. It
depends upon the organizational situation as well as the primary goal of the process.
Following are the few methods generally used by maximum manufacturing units:
Observational Method: The job analyst observes the employee performing the job.
He is required to observe the type of job, methods to be implemented and time to
be taken for finishing job properly. The method has merit of being simple and
easy to note down the details for the job analyst. Generally it has few negative
aspects such as it is time consuming and additional cost incurred due to
appointment of the job analysts. Job analysts should have full of knowledge about
the overall manufacturing processes and methods. The methods become
inapplicable in case of the jobs which involves high proportion of unobservable
mental activities and decisions. It is not applicable for the managerial posts.
Interviews: Job analyst prepares a structured questionnaire to record the detailed
information about the job from the worker and his supervisor. Worker and his
Q. 1 Job specification mentions a statement of
a. Job title necessary to do the job b. job summary necessary to do the job c. working conditions necessary to do the job d. Human qualification necessary to do the job
Q. 2 It involves determination of relative worth of each employee in terms of jobs.
a. Job Specification b. Job Description c. Job Analysis d. Job Evaluation
Q. 3 It is a process to match the actual performance of the employees with the expected performance.
a. Job Specification b. Job Description c. Performance appraisal d. Job Evaluation
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supervisor explain the details about their job such as skills, duties, responsibilities
required to be performed at their end. It is one of the best methods in collecting
accurate data. It involves direct conversation with the jobholder who can really
explain the requirement of the each job profiles. It is time consuming method. It
cannot justify the managerial jobs due to longer interviews for each manager. Bias
also plays important role in this method. Job analyst may record his remarks as
per his relations with the job holder.
Questionnaire: The fully structured questionnaires are sent to the workers. The
filled up questionnaires are checked by their supervisor to justify the contents of
the jobs. The questionnaires are available easily or can be prepared by the experts
to explore the maximum details of the job. The job title, duties involved, skills
required, supervision required as well as supervision provided by the firm are few
aspects of the job details required by the job holders. The effectiveness of the job
description and job specification can be improved through the suggestions
provided by the employees at the zero level. They should be free to give
suggestions to improve the methods or manufacturing processes through the
questionnaires.
The method is a time saver in which information about the large number of jobs
can be collected through questionnaires in a relatively short time period. It covers
almost all workers instead of covering two or three workers from each unit. The
disadvantage of the method is communication gap. Although the worker may have
the great knowledge and experience about the working/manufacturing methods,
they may not have good reading and writing skills. They require specialized
knowledge to fill up the questionnaire or assistant to reply the written responses
accurately. Both the solutions create additional expenditures for the firm.
Checklists: The checklist is an easier method for the job holders. It is quite similar
to the questionnaires but in the other form. It consists of many job related
questions with subjective judgments/responses. The job holder is required to tick
the concerned jobs with the right alternative. To prepare a checklist is a
challenging job which requires experience and knowledge about the jobs. It
requires the suggestions from the supervisors, workers, engineers as well as
managers. When the checklists prepared by the experts, it has sent to the workers
to get their suggestions. They are asked to go through wisely and add/correct the
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types of tasks performed by them, skills required for that, training required to
improve the proficiency in the working methods.
It covers large number of employees to register their suggestions. It becomes easy
to analyze jobs data accurately due to structured judgmental responses. It is an
expensive method for the small organizations.
Technical Conferences: The conference/meeting is conducted by the job analysts
with the detailed data bank about the jobs of the organization. The method uses
the extensive knowledge of experienced supervisors. The analysts initiate the
discussions regarding the division of each job and note down the comments
/suggestions of the participants of the conference. The method has the
disadvantage of lack of accuracy due to non participation of the real workers in
the method.
Diary: It is required to supply the diaries/formats to the job holders to note down
their day to day activities/operations. Job holders can note each and every activity,
duties, responsibilities performed by them. The positive side of the method is that
job holder may forget few aspects of his own jobs while filling up the
questionnaire or checklists, which is removed in this method. It is time consuming
method and not applicable in few industries having lengthy manufacturing
processes.
3.7 Problems of Job Analysis Process: