1. Describe the review process of human resource planning.

Discuss how it
balances the competing and conflicting elements.

Ans: Once your human resource management process plan has been in place for a set amount
of time, you can evaluate whether the plan has helped the company to achieve its goals in
factors like production, profit, employee retention, and employee satisfaction. If everything is
running smoothly, continue with the plan, but if there are roadblocks along the way, you can
always change up different aspects to better suit your company’s needs.

The American Accounting Association’s Committee on Human Resource Accounting (1973)

has defined Human Resource Accounting as
“the process of identifying and measuring data about human resources and communicating this
information to interested parties”.

HRA, thus, not only involves measurement of all the costs/ investments associated with the
recruitment, placement, training and development of employees, but also the quantification of
the economic value of the people in an organisation.

Flamholtz (1971) too has offered a similar definition for HRA. They define HRA as “the
measurement and reporting of the cost and value of people in organizational resources”.

Who should conduct the audit?

The team that is responsible for the audit should represent a cross-section of the organization’s
staff, including line staff, middle and upper management, and those responsible for HR
functions.

Need and Purpose of Human Resource Auditing

The commonly understood audits are the established and regular accounting audits carried out
in accordance with specific statutory regulations. However, in the case of human resource
audits, there is no legal obligation, but enlightened managements have voluntarily accepted its
usefulness depending upon the circumstances. The following circumstances may be cited as
examples:

 felt concern by top management,

 compulsions of the external forces necessitating a situational audit,

 business changing significantly influenced by international business decisions affecting

human resource management, and
  an urge on the part of human resource management professionals towards
advancement of the practices and systems.

It is necessary to take a look at these and other questions. Human Resource audit is highly
useful for the purpose

 Does the organisation regularly forecast the supply of and demand for employees in
various categories?

 Do job analyses exist for all positions in the organisation?

 Are all potential sources of recruitment identified and evaluated?

 Are measurable selection criteria developed and used while filling up jobs?

 Do effective training and development programmes exist?

 Is there a performance evaluation system that helps assess past and potential
performance?

 Is the remuneration programme designed to motivate employees?

 Is the plant unionised?

 Does a grievance procedure exist?

 Does the organisation have high quality of work life?

 Does the HRM practice contribute to organisational effectiveness?

 Does the management underestimate the capacity of HRM to contribute to

organizational effectiveness?

 In the review process itself, the management task is to balance the many competing
 and sometimes conflicting elements. Some examples might be:
 l conflicting demands for available research and development resources at peaks of
 activity, with an excess supply available;
 l imbalance of skills emerging as technology alters the product range; and
 l uncertain timing of developments, which affects the timing of deployments.
 These reviews cannot anticipate situations which develop at short notice, but should
 take into account the need for flexibility to cope with the manpower implications of
 events such as intended future acquisitions, new business opportunities not allowed for
 in plans or retention actions needed to avoid the loss of key individuals which might
 damage establishment plans.
 The review process may be viewed as the master programme which integrates
 resourcing activities with business planning at an operational level to ensure that
 organization structures and the prepration of manpower resources are matched with
 the manpower requirements necessary to achieve business objectives and respond to a
 changing and possibly hostile enviroment. In parallel, the process should optimize the
 utilization and growth of the human resources available. The emphasis in most
  reviews may be on the short-term (one to two year) actions, but there must be a longer
 term (three to five or five to ten year) perspective – particularly for management
 continuity, which is a special section of the same process – as the lead time for supply
 can require this notice.

2. What do you mean by job analysis? Describe various methods of collecting

information for job analysis.

Job Analysis is a process to identify and determine in detail the particular job duties and
requirements and the relative importance of these duties for a given job. Job Analysis is
a process where judgements are made about data collected on a job.

The Job; not the person An important concept of Job Analysis is that the analysis is
conducted of the Job, not the person. While Job Analysis data may be collected from
incumbents through interviews or questionnaires, the product of the analysis is a
description or specifications of the job, not a description of the person.

Observation:

Under this method, data is collected through observing an employee while at work. The
job analyst on the basis of observation carefully records what the worker does, how
he/she does, and how much time is needed for completion of a given task. This is the
most reliable method of seeking first hand information relating to a job.

This method is suitable for jobs that consist primarily of observable physical ability, short
job cycle activities. The jobs of draftsman, mechanic, spinner or weaver are the
examples of such jobs. However, the flip side of this method is that this method is not
suitable for jobs that involve unobservable mental activities reveal overlaps and grey
areas and have not complete job cycle.

That it is time consuming is it’s yet another handicap. Given these, the job analyst
needs to be quite skillful in collecting data about jobs with a high degree of discretion or
decision content. Training can make the job analyst skillful.

Interview:

In this method, the job analyst directly interviews the job holder through a structured
interview form to elicit information about the job. This method is found suitable
particularly for jobs wherein direct observation is not feasible. By way of directly talking
to the job holder, the interviewer job analyst may extract meaningful information from
the job holder about his/her job.
However the interview method is both time consuming and costly. Particularly, the
professional and managerial jobs due to their complicated nature of job, require a longer
interview’ This may also be a possibility that bias on the part of the analyst and the job
holder i.e., the respondent may cloud the accuracy and objectivity of the information
gathered through interview. Nonetheless, the effectiveness of the interview method will
depend on the ability of both interviewer and respondent in asking questions and
responding them respectively.

Questionnaire:

Questionnaire method of job data collection is desirable especially in the following two
situations:

First, where the number of people doing the same job is large and to personally
interview them is difficult and impracticable.

Second, where giving enough time to employees is desirable to enable them to divulge
and explore the special aspects of the jobs.

In this method, the employee is given structured questionnaire to fill in, which are then
returned to the supervisors. The supervisor, after making the required and necessary
corrections in the information contained in the questionnaire, submits the corrected
information to the job analyst. Questionnaire provides comprehensive information about
the job.

Information so obtained can be quantified and processed in the computer. The greatest
advantage of the questionnaire method is that it enables the analyst to cover a large
number of job holders in the shortest possible time. However, the method suffers from
certain shortcomings as well.

In the absence of direct rapport between the job analyst and the employee, both
cooperation and motivation on the part of the employee tends to be at low level. Often
employee due to lack of training and skill, do not express the job related information in a
meaningful and clear fashion. As such, job related data tends to be inaccurate.
Moreover, the method is time-consuming and costly.

Checklists:

The checklist method of job data collection differs from the questionnaire method in the
sense that it contains a few subjective questions in the form of yes or no. The job holder
is asked to tick the questions that are related to his/her job. Checklist can be prepared
on the basis of job information obtained from various sources such as supervisors,
industrial engineers, and other people who are familiar with the particular job.
Once the checklist is prepared, it is then sent, to the job holder to check all the tasks
listed in the list he/she performs. He/she is also asked to mention the amount of time
spent on each task by him/her and the type of training and experience required to do
each task. Information contained in checklist is, then, tabulated to obtain the job-related
data.

Like questionnaire method, the checklist method is suitable in the large organisations
wherein a large number of workers are assigned one particular job. Since the method is
costly and, therefore, is not suitable for small organisations.

Critical Incidents:

This method is based on the job holder’s past experiences on the job. They are asked
to recapitulate and describe the past incidents related to their jobs. The incidents so
reported by the job holders are, then, classified into various categories and analysed in
detail. Yes, the job analyst requires a high degree of skill to analyse the incidents
appropriately described by the job holders. However, this method is also time-
consuming one.

Diaries or Log Records:

In this method, the job holder is asked to maintain a diary recording in detail the job-
related activities each day. If done judiciously, this method provides accurate and
comprehensive information about the job. This overcomes memory lapses on the part of
the job holder. As recording of activities may spread over several days, the method,
thus, becomes time-consuming one.

The disadvantage associated with this method is that it remains incomplete because it
does not give desirable data on supervisor relationship, the equipment used and
working conditions prevalent at the work place.

Technical Conference Method:

In this method, a conference is organised for the supervisors who possess extensive
knowledge about job. They deliberate on various aspects of the job. The job analyst
obtains job information from the discussion held among these experts/supervisors. The
method consumes less amount of time. However, the main drawback of this method is
that it lacks accuracy and authenticity as the actual job holders are not involved in
collecting job information.

It is seen from the preceding description that no single method is complete and
superior. In fact, none of the method is to be considered as mutually exclusive. The best
data related to a job can be obtained by a combination of all methods described above.
Before we skip to the next content, a brief mention about the problems faced with job
analysis is in order.

3. What is Orientation? Explain the importance of Orientation and tell how you
would orient a new management trainee?

Employee orientation is the process of introducing employees to their new jobs and
work environments. Orientation provides an opportunity for new employees to become
acclimated to their new company, department, colleagues and work expectations.
Effective orientations provide many benefits for employers and employees, and can
ensure a smooth transition into the new workplace for all involved.

Employee orientation benefits the organization by providing an opportunity to introduce

employees to the fundamentals of the company and their jobs from an administrative
standpoint. Employees benefit from learning the important rules and details of the job
and position. During orientation employers will verify any licenses or certifications
required for the job--driver's license, teaching credential, broker's license. Employees
will complete necessary paperwork, receive and review the employee handbook, learn
about and sign up for benefits and learn about some very fundamental elements of the
new position--parking arrangements, where the cafeteria and restrooms are.

Orientation is important because it lays a foundation for the new employee’s entire
career with the department. First impressions are important since they establish the
basis for everything that follows. Without orientation, a new employee sometimes feels
uncomfortable in his/her new position and takes longer to reach his/her full potential.

Orientation is important because it:

 Provides the new employee with concise and accurate information to make
him/her more comfortable in the job;

 Encourages employee confidence and helps the new employee adapt faster to
the job;

 Contributes to a more effective, productive workforce;

 Improves employee retention; and

 Promotes communication between the supervisor and the new employee.

4. Explain the significance of Information System in Human Resource
management. Describe the various approaches to managing information at the
macro and micro level.

The Human Resources Information System provides details on administration, payroll,

recruitment, and training. This system is expected to deliver valuable results to your
human resources division and your organization as a whole. It is an essential tool that
aids management in making strategic decisions.

From 1960 to 1970, major companies were in search of a centralized personnel

management system. Software programs were then created in large computers to
facilitate storage of data mainly for payroll purposes. The Human Resource Information
System, also known as Human Resource Management System, emerged as the
preferred main system for managing human resource data, using the new client server
technology instead of the old mainframe system. By the 1980s, HRIS was equipped
with new tools and capabilities that assisted the compensation scheme and helped
manage manpower. The system became more sophisticated by 2000 when it became a
tool for performance learning management.

HRIS as a whole mainly improves information sharing and communication between the
company and the employees. HRIS made it easy for the human resources department
to smoothly operate all components. With the accurate and objective tracking of
compensation and benefits, employees' morale and motivation increases. The Human
Resource Information System reduces cost and time spent on manual data
consolidation. It allows the HR management managers to focus more on making
decisions and projects rather than paperwork. The system hopes to give the HR
management division a more strategic role in the company, as the information taken
from HRIS can be the basis for employee training schemes and work efficiency projects.

Macro level HRIS is generally focused towards manpower planning and includes

statistical information on population, technology and economy. Such information can

be obtained from several sources like publications of the Planning Commission,

Ministry of Labour, The National Sample Survey Organisation, The National Labour

Institute, The World Economic Forum, International Labour Organisation etc. to name

a few.

At the micro level, the information requirements include modules on recruitment,

personal data, skills assessment, training and development, performance appraisal,

rewards and punishment, grievance handling and so on. This information is used for

understanding the patterns of HR policies, actions, and employee behaviours as well

as for identifying gaps in the HR system and the effectiveness of the HR system. As

we shall see in the next Unit, HR Audit is an activity that cannot be undertaken unless

a proper HRIS is in place.

5. What is recruitment? Explain the methods and techniques of recruitment.

Discuss several advantages of recruiting from internal sources and external
sources.

In human resource management, “recruitment” is the process of finding and hiring the
best and most qualified candidate for a job opening, in a timely and cost-effective
manner. It can also be defined as the “process of searching for prospective employees
and stimulating and encouraging them to apply for jobs in an organization”.

It is one whole process, with a full life cycle, that begins with identification of the needs
of the company with respect to the job, and ends with the introduction of the employee
to the organization.

When we speak of the recruitment process, we immediately think of activities such as

the analysis of the requirements of a specific job, attracting candidates to apply for that
job, screening the applicants and selecting among them, hiring the chosen candidates
to become new employees of the organization, and integrating them into the structure.

Obviously, the main reason why the recruitment process is implemented is to find the
persons who are best qualified for the positions within the company, and who will help
them towards attaining organizational goals. But there are other reasons why a
recruitment process is important.

1. Direct Method:

In this method, the representatives of the organisation are sent to the potential
candidates in the educational and training institutes. They establish contacts with the
candidates seeking jobs. These representatives work in cooperation with placement
cells in the institutions Persons pursuing management; engineering, medical etc.
programmes are mostly picked up in this manner.

Sometimes, some employer firms establish direct contact with the professors and solicit
information about students with excellent academic records. Sending the recruiter to the
conventions, seminars, setting up exhibits at fairs and using mobile office to go to the
desired centers are some other methods used to establish direct contact with the job
seekers.

2. Indirect Methods:

Indirect methods include advertisements in news papers, on the radio and television, in
professional journals, technical magazines etc.

This method is useful when:

(i) Organisation does not find suitable candidates to be promoted to fill up the higher
posts

(ii) When the organisation wants to reach out to a vast territory, and

(iii) When organisation wants to fill up scientific, professional and technical posts.

The experience suggests that the higher the position to be filled up in the organisation,
or the skill sought by the more sophisticated one, the more widely dispersed
advertisement is likely to be used to reach to many suitable candidates.

Sometimes, many organisations go for what is referred to as blind advertisement in

which only Box No. is given and the identity of the organisation is not disclosed.
However, organisations with regional or national repute do not usually use blind
advertisements for obvious reasons.

While placing an advertisement to reach to the potential candidates, the following

three points need to be borne in mind:

1. First, to visualise the type of the applicant one is trying to recruit.

2. Second, to write out a list of the advantages the job will offer

3. Third, to decide where to run the advertisement, i.e., newspaper with local, state,
nation-wide and international reach or circulation.

3. Third Party Methods:

These include the use of private employment agencies, management consultants,

professional bodies/associations, employee referral/recommendations, voluntary
organisations, trade unions, data banks, labour contractors etc., to establish contact
with the job- seekers.

Now, a question arises: which particular method is to be used to recruit employees in

the organisation? The answer to it is that it will depend on the policy of the particular
firm, the position of the labour supply, the Government regulations in this regard and
agreements with labour organisations. Notwithstanding, the best recruitment method is
to look first within the organisation.

When you hire from within, you have a good idea about the person you’re hiring. You’re
already familiar with the candidate’s work ethic and approach, and the existing
employee is already familiar with the ins and outs of how your company runs. While
there will be a learning curve, the on-boarding process is likely to be faster with an
existing staffer than with an outside hire. Other benefits of hiring from within include:

 Increased morale and retention. Other employees see there is room for
advancement and reward for a job well done.

 Continuity of operations. Chances are that an internal employee can transition

into the new role with minimal downtime.

 Less paperwork. While there will be some HR forms to change, you won’t
necessarily have to issue new passwords, keys, insurance and tax paperwork to
get the staffer up and running.

As with any recruiting method, hiring from outside an organization instead of promoting
from within the company carries both advantages and disadvantages. Let's explore
some of the advantages:

 When an organization recruits externally, it opens the organization up to a larger

pool of applicants, which increases its chance of finding the right person for the
job.

 External recruitment provides an opportunity for a fresh outlook on the industry

that a company may need to stay competitive.

 Bringing in fresh talent from the outside can help motivate the current employees
to produce and achieve more in hopes of obtaining the next promotional
opportunity.

 Looking outside the organization also allows a company to target the key players
that may make its competition successful. Hiring a candidate with a proven track
record for the competition allows the company to get an insider's view as to what
the competition is doing to be successful. This gives the organization a chance to
stay a step ahead of the competition.

 Hiring an external candidate also opens up many opportunities to find

experienced and highly-qualified and skilled candidates who will help a company
meet its diversity requirements.