HRM Module No 2
HRM Module No 2
HRM Module No 2
INTRODUCTION
Large businesses often work on forecasting and upcoming opportunities in the
pipeline. If these opportunities convert into actual business, they would need
manpower to start working on them. But the dilemma is that what if they hired a large
number of people to work on an almost sure project but at the last moment the project
didn't start on time. What would the business do with the additional skilled
manpower? The other dilemma is that if they kept waiting till the last moment for a
project and when the project starts they might not have enough manpower to work
and deliver. These questions are solved by the process of manpower planning.
“Manpower” or “human resource” may be thought of as “the total
knowledge, skills, creative abilities, talents and aptitudes of an
organization's work force, as well as the values, attitudes and benefits of
an individual involved it is the sum total of inherent abilities, acquired
knowledge and skills represented by the talents and aptitudes of the
employed persons;” of all the “M’s” in management (i.e., the management of
materials, machines, money, motive power), the most important is “M” for men or
human resourceIt is the most asset of an organization, and not the money or physical
equipment. It is in fact an important economic resource. Covering all human resources
organized or unorganized, employed or capable of employment, working at all levels-
supervisors, executives, government employees, “blue” and “white” collar workers,
managerial, scientific, engineering, technical, skilled or unskilled persons, who are
employed in creating, designing, developing, managing, and operating productive and
service enterprises and other economic activities.
Human resources are utilized to the maximum possible extent to achieve individual
and organizational goals. An organization’s performance and resulting productivity
are directly proportional to the quantity and quality of its human resources. Human
resource planning (HRP) is the continuous process of systematic planning ahead to
achieve optimum use of an organization's most valuable asset—quality employees.
Human resources planning ensures the best fit between employees and jobs while
avoiding manpower shortages or surpluses.
Manpower planning also includes the details like how and when will new employees
be acquired. This whole process is done keeping in view the goals of the organization,
the future predictions for business and changing technology trends. This helps the
organization be prepared for the future with the correct manpower at their disposal
for business prosperity.
HRP is also known by other names such as ‘Manpower Planning’,
‘Employment Planning’, ‘Labour Planning’, ‘Personnel Planning’, etc.
HRP is a sub-system in the total organizational planning. In other words,
HRP is derived from the organizational planning just like production
planning, sales planning, material planning, etc.
for hiring new employees and in case of the surplus it reduces the number of
employees by retirement, termination, layoff, etc.
Determination of Training and Development Needs: Human resources
planning aims at providing various training to all employees as per the requirement
of market needs. These training and development programmes are meant for both
new and existing employees. It focuses on updating and improving skills of
manpower to derive the requisite productivity from them. This way it aims at the
advancement of employees and serves the high skilled employees need of an
organization.
Ensures Optimum Use of Manpower: Human resource planning process
helps in the full utilization of human resources. The right man at the right place is
a must to achieve high productivity and efficiency. This process aims at providing
job to individuals according to his knowledge, skills, and experience. Job positions
are properly analysed before deputing persons and it is checked whether a person
is capable of delivering roles or not. This way Human resources planning ensures
fuller utilization of human resources within the organization.
Meet Expansion and Diversification Needs: Expansion and diversification
are activities that every organization needs to follow as they achieve progress over
time. Human resource planning supports the organization in its various expansion,
diversification, and modernization programs. It formulates plans for meeting the
employee requirements as per the expansion plan. This ensures that skilled and
knowledgeable people are available at the right time that is able to face the
challenging job roles.
Estimates Human Resource Cost: Human resource planning controls the cost
of human resources of an organization. It facilitates the preparation of the budget
for meeting these expenses by estimating the cost of each and every human
resource working in the organization. Formulation of appropriate budgets will
ensure timely payment to employees and also avoids a shortage of funds.
Monitors Human Resource Performance: It monitors and controls the
performance of employees from time to time. Human resource planning measures
the actual performance of manpower with planned performance. If any deviations
are found in performance it aims at removing them by taking appropriate
corrective measures. It ensures whether human resources are performing as their
defined roles and responsibilities. This way it helps in the achievement of
organizational goals and objectives timely.
Recruitment of skilled employees at the right time: First and foremost and
also an important objective of the manpower planning process is the recruitment
of skilled employees for the upcoming project. Large companies have a separate
research and development department which consistently works to look for
new market opportunities and on the basis of their suggestion management of the
company take on the projects for the future. Manpower planning is useful for the
recruitment of employees with the skills to use new technology. Only with the right
skilled employees, the success of the future project can be ensured.
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
SUCCESSION PLANNING
Succession planning is a process for identifying and developing internal people with
the potential to fill key leadership positions in the company. Succession planning
increases the availability of experienced and skilful employees that are hopeful to
undertake these roles as they become available. This process focuses on seeking the
right person, not just the available person. It’s built on the idea of recognizing the
potential leaders in organization and developing them so that they are ready to move
up when the opportunity arises. It’s one of the best methods to promote recruitment
and retention in organization.
The term succession planning refers to a business strategy companies use to pass
leadership roles down to another employee or group of employees.
Succession Planning is defined as the systematic process of recognizing and creating
future leaders who are able to take the position of the old ones when they leave the
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
JOB ANALYSIS
Job analysis is a systematic and detailed examination of jobs. It is the process of
collecting information about a job — that is, the knowledge, skills, and the experience
needed to carry out a job effectively.
According to Edwin B, Flippo, "Job analysis is the process of studying and collecting
information relating to the operations and responsibilities of specific job.
“Job analysis can be described as a process of collecting information about a job.”
Job analysis is a procedure through which you determine the duties and
responsibilities, nature of the jobs and finally to decide qualifications, skills and
knowledge to be required for an employee to perform particular job.
Job analysis refers to a systematic process of collecting all information about a specific
job, including skill requirements, roles, responsibilities and processes in order to
create a valid job description. Job analysis also gives an overview of the physical,
emotional & related human qualities required to execute the job successfully.
Job analysis provides the following information about a job:
Nature of jobs required in a concern;
Nature of organizational structure;
Type of people required to fit that structure;
The relationship of a job with other jobs in a concern;
Kind of qualifications required for a particular job;
Provision of physical condition to support the activities of a concern;
Materials, equipment’s and methods used in performing the job.
PURPOSES OR OBJECTIVE OF JOB ANALYSIS
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
JOB DESCRIPTION
A job description is the detailed job information in a written format stating the role,
responsibilities, duties, job title, job location, etc.
It is usually prepared by the human resource manager to invite applications from the
prospective candidates to fill up the vacant job position.
Location NY,CA
The RSM would be responsible for the sales of territory assigned. The
territories would be in and around the job location.
Job The RSM should be motivated and willing to make decisions on his/her own.
Description The sales quota and targets would be predefined.
The RSM would be leading the local sales team of approx. 5-6 team size.
(The job description should cover all the details of the job)
JOB SPECIFICATION
Job Specification is a particular set of skills or attributes required in a candidate to
perform that job.
A job specification is the written declaration of the attributes, skills, knowledge,
educational qualification and experience which a person must possess to perform a
particular job.
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
After preparing a job description, the manager analyses the necessary abilities and
attributes needed for accomplishing the task and thus drafts a job specification.
Application by
Used to match the right
Human Used to give the sufficient and
attributes with the job so
Resource relevant information of the job
described
Manager
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
JOB ENLARGEMENT
Job Enlargement is a horizontal expansion of duties and tasks across the same
organizational level.
Job enlargement refers to that job design technique which integrates the various tasks
performed at the same level (horizontally) to the employee’s existing job duties.
Example: A person hired to handle the reception work is responsible for handling
customer enquiries, queries and calls on the front desk. She kept on doing the same
work for two years and got bored. She discussed the problem with the HR manager,
who planned to implement job enlargement for making her job profile interesting. Few
more task were added to her job profile like interacting with the clients and making
outbound calls to create new customers for the company. These added tasks reduced
her monotony.
JOB ENRICHMENT
Job Enrichment is the vertical expansion of the roles, responsibilities, authority and
activities along with the different hierarchical levels.
Job enrichment can be defined as a vertical restructuring of a job, i.e. integration of
the tasks, role, responsibilities and authority across different levels in an organization,
to add value to the employee’s existing job profile.
Example: A human resource executive was initially responsible for maintaining the
employees’ record and calling the candidates for interviews as directed by the HR
manager. To add more value to the HR executive’s job profile, the manager gave him
some authority related to the work already assigned to him.
The new responsibilities included providing the employees’ provident fund details to
the accounts department, keeping contact with the provident fund office and initial
scrutinizing of the candidates for the interviews. These additional responsibilities hold
authority and accountability, making the employee more efficient, confident and
satisfied with the job.
JOB ROTATION
Job Rotation is the management technique wherein an employee is shifted from one
job role to the other, with the purpose of familiarizing him with all the verticals of an
organization.
Generally, the management trainees who are a fresher in the business world are shifted
to different job positions to make them understand the functions of business more
precisely. The purpose of a job rotation is to reduce the monotony of work and letting
an employee to acquire multi skills required for performing different tasks in the
organization.
Job Rotation is the process of shifting employees between two or more tasks or job
positions within the same organization in order to improve and motivate the
employee.
RECRUITMENT
Recruitment refers to the process of finding possible candidates for a job.
According to Flippo, “Recruitment is the process of searching for prospective
employees and stimulating them to apply for jobs in an organization.”
Recruitment (hiring) refers to the overall process of attracting, shortlisting, selecting
and appointing suitable candidates for jobs (either permanent or temporary) within
an organization.
It is the “process of finding and attempting to attract job candidates who are capable
of effectively filling job vacancies.”
Recruitment is the process of examining a vacant position in the organisation and
attracting the potential candidates to apply for the same, within an appropriate time
and at a desirable cost. It is the introductory stage where a job applicant gets to know
about the vacancy, and the organisation identifies the candidate’s profile.
RECRUITMENT PROCESS
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
EVALUATION AND CONTROL: Evaluation and control is the last stage in the
process of recruitment. In this process, the effectiveness and the validity of the process
and methods are assessed. Recruitment is a costly process, hence it is important that
the performance of the recruitment process is thoroughly evaluated. The costs
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
SOURCES OF RECRUITMENT
Transfers: Transfer refers to the process of interchanging from one job to another
without any change in the rank and responsibilities. It can also be the shifting of
employees from one department to another department or one location to another
location, depending upon the requirement of the position.
Employee Referrals: Sometimes, the organisation hires the candidates referred
by the existing employees assuming that such candidates are more trustworthy and
reliable.
Former Employees: Some organisations provide for an option of re-joining to
its ex-employees. They even consider the retired employees who are willing to give
their full time or part-time services to the organisation.
Internal Advertisements (Job Posting): Internal Advertisements is a process
of posting/advertising jobs within the organization. This job posting is an open
invitation to all the employees inside the organization, where they can apply for the
vacant positions. It provides equal opportunities to all the employees working in
the organization.
E-RECRUITMENT
E-recruitment, also known as online recruitment refers to cloud-based recruitment
software, web-based resources, and other technology to find, attract, interview, and
hire new personnel.
The E-Recruitment, also called as Online Recruitment, is the process of hiring the
potential candidates for the vacant job positions, using the electronic resources,
particularly the internet.
BENEFITS OF E-RECRUITMENT
It’s cost-effective: When you post a job ad on Facebook, you can pay for as much
or as little exposure as you want and target it to a very specific audience. Indeed, if
you manage your campaign effectively, you can save plenty of precious cash while
attracting applicants who are the perfect fit for your vacancy.
It’s immediate: Most job posts – and replies – appear in real-time. This can help
you either increase your efforts to attract more candidates, a different set of
candidates (early- instead of mid-career professionals, for example) or even stop
candidates from applying if you’ve already found the right person for the job.
You can reach a bigger audience: The internet is a global phenomenon, with
more and more users gaining access every day, while in most developed countries,
internet usage is extremely high. Therefore, you are gaining exposure to a huge
potential pool of applicants. If you are looking for younger recruits in particular,
then e-recruitment is probably the single most effective and efficient strategy
possible; in the US, for instance, 98% of the 18–29 age group are active internet
users.
It’s easy: Almost anyone can post a job advertisement online because most
established job boards make the process clear, easy to understand and user-
friendly. Conversely, the process is very simple for the applicant, too, making it
quick and painless for interested parties to apply on the spot instead of mailing CVs
and written applications through the post.
You can make your job ad more dynamic: Posting a job online or via social
media platforms gives you a chance to be more creative with your ad; for instance,
you could create and attach a short video showing off the benefits of working for
your company.
It’s flexible: The internet gives you plenty of flexibility with regards to controlling
your posts and the applications you receive. If you post in a newspaper and want to
amend the job advert, though, you would likely need to pay for an entirely new ad.
With online posts, most platforms will allow you to edit, update or remove your job
post whenever you wish.
It’s durable: Newspapers and other forms of printed media have a very limited
lifetime, dependent on their publishing cycle. Most classified publications have a
biweekly publishing cycle, meaning that your ad will only be seen for that relatively
small amount of time. On the other hand, online job posts will stay live until the
author or the host website removes them.
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
It’s accessible: No matter where you are in the world – if you have an internet-
enabled device and connection, you can perform all those management tasks
described above. You can modify your job posting, see how many replies you have
and even communicate with candidates directly.
It expedites the hiring process: All of these advantages directly lead to the
biggest one of all: a shortened hiring process. You can shortlist (or even directly
contact) the best applicants as their applications come in, with the availability
of integrated ATS software even doing most of the sifting work for you.
It allows confidentiality: Some employers prefer to keep their names or
companies private. This is especially true when a job role or organisation is too
sensitive or controversial to be advertised online. With online recruitment,
employers can conceal the name of their firms or even search and contact
candidates directly without the need of posting a job advertisement.
RECRUITMENT METRICS/MATRIX
Recruiting metrics are measurements used to track hiring success and optimize the
process of hiring candidates for an organization.
Recruitment metrics are a standard set of measurements used to manage and improve
the process of hiring candidates into an organization.
Standard Recruitment Metrics
Speed Metrics
Quality Metrics
Productivity Metrics
Cost Metrics
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
EMPLOYEE SELECTION
Employee Selection is the process of interviewing and evaluating the candidates for a
specific job and selecting an individual for employment based on certain criteria
(qualifications, skills and Experience).
Employee Selection is the process of choosing individuals who have relevant
qualifications to fill jobs in an organization.
Selection is the process of choosing the most suitable candidate for the vacant position
in the organization.
SELECTION PROCESS
2. SELECTION TEST – Job seekers who pass the screening and the preliminary
interview are called for tests. Before an organization decides a suitable job for any
individual, they have to gauge their talents and skills. This is done through various
employment tests like intelligence tests, aptitude tests, proficiency tests,
personality tests etc.
Intelligence Tests: They test the mental ability of candidates. These tests
measure the learning ability of candidates in understanding questions and their
power to take quick decision on crucial points. People who are able to quickly
answer to these questions are found to be skilful and can be offered training to
improve skills for the job in organization.
Aptitude Tests: They test an individual’s capacity to learn a particular skill.
There are mainly two types of aptitude tests. Cognitive tests which measure
intellectual, mental aptitudes. The second one is called motor tests which check
the hand – eye coordination of employees.
Proficiency Tests: These tests are also called performance or occupational
tests. They determine the skills and knowledge acquired by an individual
through experience and on the job training.
Personality tests – These tests judge the psychological makeup of any
person. These tests check a person’s motivational level, emotions, integrity,
sympathy, sensitivity etc. These traits in an individual provide the manager
with an overall picture of his personality.
of interviewers. All the formalities and procedures are followed in this type of
interview. Even questions to be asked are decided well in advance.
Informal Interview: It is an un-planned and un-scheduled interview and
may take place anywhere. Venue and time is not fixed. Questions are not
prepared well in advance. Whenever staff is required, this kind of interview is
conducted by asking simple questions like name, age, qualification birth place
etc., if candidates approach employer.
Structured or Patterned Interview: It is a fully planned interview and
questions to be asked are already structured well in advance on the basis of an
analysis of job specification. The time to be allowed to each candidate and the
information to be collected is also predefined. The interviewer is carefully
selected and he has no or little scope for deviation. Thus, a standardized pattern
is adopted to conduct the interview.
Un-Structured or Non-Directed Interview: It is an un-planned and
unstructured interview where questions to be asked, time to be allowed and
response to be collected are not thought in advance. Broad general questions
are asked to the candidate and candidate is allowed to speak his mind freely
without any restrictions. Therefore, better assessment of candidate becomes
possible.
Stress Interview: It is a deliberate attempt to create tension and pressure to
observe how an applicant responds under stress and strain. Interviewer puts
the candidate by putting him under stress and strain by interrupting the
applicant from answering, criticizing his opinion, asking questions in rapid
succession and keeping silent for unduly long period of time etc. This kind of
interview is conducted just to find out how a candidate behaves in stressful
situation.
Group Interview: In this type of interview, group of individuals are
interviewed. For this purpose, a problem is given to a group of candidates for
discussion. The candidates are carefully observed as to who will lead the group,
who is active and who is in-active, who will dominate and who will keep silence.
Actions and reactions of the members in the group are also observed and
potential candidate is selected.
Depth Interview: Depth interview is conducted to test the candidates in
depth knowledge in a special area of interest and to get true picture of the
candidate in such area or subject. Experts in the concerned area of subject ask
the question to test the candidate’s capacity in the concerned subject. Thus,
candidate is examined thoroughly before he is selected for a particular post.
Panel or Board Interview: It is an interview conducted by a panel or group
of interviewers. Panels of experts interview each candidate, judge each
candidates performance and prepare the list of candidate in order of merit.
Here group judgment is involved in the selection of candidates as it seeks to
pool the collective judgment of several interviewers.
Exit Interview: Exit interview is conducted for those who leave or quit the
organization. The main purpose of conducting this interview is to know the
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
6. PHYSICAL EXAMINATION – After the selection decision and before the job
offer is made, the candidate is required to undergo a physical fitness test. The
medical exam is also a very important step in the selection process. Medical exams
help the employers know if any of the potential candidates are physically and
mentally fit to perform their duties in their jobs. A good system of medical check-
ups ensures that the employee standards of health are higher and there are fewer
cases of absenteeism, accidents and employee turnover.
7. JOB OFFER – The next step in the selection process is job offer to those
applicants who have crossed all the previous hurdles. Job offer is made through a
letter of appointment. This is the final step in the selection process. After the
candidate has successfully passed all written tests, interviews and medical
examination, the employee is sent or emailed an appointment letter, confirming
his selection to the job. The appointment letter contains all the details of the job
like working hours, salary, leave allowance etc. Often, employees are hired on a
conditional basis where they are hired permanently after the employees are
satisfied with their performance.
HUMAN RESOURCE MANAGEMENT 2nd sem BBA ISBR
8. CONTRACTS OF EMPLOYMENT – After the job offer have been made and the
candidates accept the offer, certain documents need to be executed by the
employers and the candidates.
validated test does not predict job success accurately. It can only increase
possibility of success.
RELIABILITY: A reliable method is one which will produce consistent results
when repeated in similar situations. Like a validated test, a reliable test may fall to
predict job performance with precision.
PRESSURE: Pressure is brought on the selectors by politicians, bureaucrats,
relatives, friends, and peers to select particular candidate. Candidates selected
because of compulsions are obviously not the right ones. Appointments to public
sector undertakings generally take place under such pressure.
PLACEMENT
The selection procedure ends with the placement of a worker to the job.
Placement is a process of assigning a specific job to each of the selected candidates.
Placement means sending the newly employed person to some department for work.
It also implies assigning a specific rank and responsibility to an individual.
Placement is the actual posting of an employee to a specific job. It involves assigning
a specific rank and responsibility to an employee.
PROBLEMS IN PLACEMENT
• Employee Expectations: Employee expectation from the job are high. An
employee expects good place, environment, cafeteria etc.
• Job expectations: Expectation from the employers are more that the employee
ability and skills
• Change in technology: Technical changes at time lead to problems
• Change in Organizational Structure: Changes result in a misfit between the
employee and the job
• Change in Policies: Sometimes Changes result in a misfit between the employee
and the job
• Concerns of trainees: Trainees may experience personal problems on
placement but feel unable to discuss these with their supervisor. They may find that
the experience offered to enable them to develop some specific competencies is
minimal.
GAMIFICATION
Gamification is not a new concept. It gained popularity around 2010. Since then it has
stuck around as a successful tool to increase customer and employee engagement in a
goal-oriented way. Simply put, gamification introduces game elements into non-game
situations. People have a tendency to stick to what they know and with the use of
gamification, companies can easily mix this up. Especially within recruitment,
gamification adds healthy competition and the opportunity for progression. Moreover,
it motivates people to learn and solve problems in an unconventional way.
Definition: Gamification is the strategic attempt to recreate job-like experiences and
scenarios in the form of a gameplay environment to motivate and engage users.
Gamification is the application of game elements in a non-game context such as for
instance, the workplace.
Sales learned to use LinkedIn to reach their customers and HR-employees learned
to use LinkedIn to search for candidates. Cisco works with three levels of
certification through which progress in applying the new skills is measured and
stimulated. The fun factor is increased by introducing team challenges. Players can
earn badges for completing different challenges.
• LINKEDIN FOR INTERNAL COLLABORATION: LINKEDIN worked
with Flipkart in India to organise their first Recruiting Hackathon: a fun way of
getting teams together on a challenging project, chasing critical hard to fill open
positions in record time. They scored 226 candidates in less than 5 hours.