Unit - 2

HR
Acquisition
& Retention
 2.1 Manpower / HR Planning:
 Definition: by Coleman
“ the process of determining manpower requirements & the
means for meeting those requirements in order to carry out the
integrated plan of the organization”.

- As per Wickstrom: HRP consists of a series of activities as :

1) Forecasting future manpower requirements,
2) Making an inventory of present manpower resources,
3) Anticipating manpower problems, &
4) Planning the necessary programs of requirement.

In simple words, HRP is understood as the process of forecasting an

organization‟s future demand for & supply of, the right type of
people in the right number.
It is only after this that the HRM department can initiate the
Dr.Anuradha Phadnis 2
recruitment & selection process.
HRP is a sub-system in the total organizational planning.

 Importance of HRP.
1) Future personnel needs,
2) Coping with change,
3) Creating highly talented personnel,
4) Protection of weaker sections,
5) International strategies,
6) Foundation for personnel functions.
7) Increasing investment in human resources,
8) Resistance to change & move & other benefits.

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 NEED FOR HRP:
1) Organizations needs personnel to carry on its work,
2) Constant need of replacing personnels,
3) Frequent labour turnover (unavoidable),
4) Expansion/ growth plan of Org.
5) Change in technology/ new blood/ new brain. In org.
6) Surplus & shortage of personnels.

 BENEFITS OF HRP:
1) Helpful for upper Mgmt.
2) Cost reduction on personnels.
3) Proper search of talent.
4) Control on local labour market.
5) Better planning of assignments to develop managers can be done.4
Dr.Anuradha Phadnis
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 HRP System
Organization

Long-range Overall Inventory Net new Action Program Procedures for

Objectives Requirement of present HR for recruiting Evaluating
& plans For HR HR requirements & select needed Effectiveness
personnel of HRP

Short term Work force Plans

Plans for
for
Inventory by Needed
Goals plans Requirements developing
developing
Occupational Replacements
Programs by occupational Upgrading
Upgrading
Categories, or additions.
& budgets Categories, Transferring,
Transferring,
Job skills,
Job skills in
in recruiting
recruiting
Demographic
Demographic && selecting
selecting
characteristics
Sub- characteristics Needed
Needed people.
people.
Units

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Objectives of HRP

 HRP fulfills individual, organizational & national

goals, but according to sikula, “the ultimate mission or
purpose is to relate future human resources to future
enterprise needs so as to maximize the future return on
investment in human resources. In effect, the main
purpose is one of matching or fitting employee
abilities to enterprise requirements, with an emphasis
on future instead of present arrangements”.

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 ESTIMATING MANPOWER REQUIREMENT
Mgmt. must estimate the structure of the org. at a given
point in time. For this estimate, the number & type of employees
needed have to be determined.
 Forecasting provides the basic premises on which the
manpower planning is built. Forecasting is necessary for
various reasons, such as:
1) Business cycles (inflation/ wages/ prices/ costs/ raw material
supply)
2) An expansion,
3) Changes in Mgmt. philosophies & leadership styles,
4) Mechanical technology,
5) Changes in the quantity/ quality of products or services.
- Forecasts has to be made in returns of functional category, the
members needed, and theDr.Anuradha
levels at which they are required. 8
Phadnis
- In determining the requirements of human resources, the
expected losses which are likely to occur through labour
turnover- quits, retirement, death transfers, promoters,
demotions, dismissals, disability, resignations, lay-offs, & other
separations- should be taken into account.

• Main dimensions of HRP are:

1) The total number of personnel available,
2) The job-family,
3) Age distribution of the employees,
4) Qualification & experience desired,
5) The salary range, etc.

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Three ranges of Manpower Forecasting
1) Demand for …., 2) Supply of labor :
Internal, 3) Supply of Labor :
External.

JOB ANALYSIS:
A JOB: Collection or aggregation of
tasks, duties regarded as a regular
assignment to individual employees.
JOB ANALYSIS: Job analysis is the
process of studying & collecting
information relating to the
operations & responsibilities of a
specific job.
the immediate products of this
analysis are job description & job
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specification.
 JOB ANALYSIS

• Methods •Job description Recruiting

• Techniques •Job Training
• Relations specification Compensation
• Responsibilities •Job evaluation Development

•Assessment of Planning
Job Rotation Forecasting
Performance
Job Enrichment
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Dr.Anuradha Phadnis 12
JOB DESCRIPTION
 It implies objective listing of the job title, tasks, duties &
responsibilities involved in a job.
 It provides both organizational information (location in
structure, authority, etc.) & functional information (what the
work is).
 It provides the worker, analyst & supervisor with a clear idea
of what the worker must do to meet the demands of the job.

COMPONENTS/ CONTENTS OF JOB DESCRIPTION

1) Job identification/ Organizational position,
2) Job summary, 3) Job duties & responsibilities,
4) Relation to other jobs, 5) Supervision, 6) Machine,
7) Working Conditions, 8) Hazards.

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JOB SPECIFICATION:
Job specification takes the job description & answers the
question. What human traits & experience are needed to do the
job well? It tells what kind of person to recruit & for what
qualities that person should be tested.
- Specifications are: 1) physical characteristics,
- 2) psychological characteristics, ) personal characteristics/ traits
of temperament, 4) responsibilities, 5) other features of a
demographic nature.
JOB EVALUATION:
Job Evaluation is the output provided by job analysis. Job
Evaluation uses the information in job analysis to evaluate each job:
Def.: “an attempt to determine & compare demands which the
normal performance of a particular job makes on normal workers
without taking into account the individual abilities or performance
of the workers concerned. Dr.Anuradha Phadnis 14
 OBJECTIVES: of Job Evaluation.
1) To secure & maintain complete, accurate & impersonal
descriptions of each distinct job or occupation in the entire
plant.
2) To provide a standard procedure for determining the relative worth
of each job in a plant.
3) To provide a factual basis for the consideration of all employees
for advancement & transfer.
4) To determine the rate of pay for each job which is fair & equitable
with relation to other jobs in the plant, community or industry.
5) To ensure that like wages are paid to all qualified employees for
like work.
6) To promote a fair & accurate consideration of all employees for
advancement & transfer.
7) To provide information for „work organization employees‟
selection, placement, training & numerous other similar
problems Dr.Anuradha Phadnis 15
BASIC PROCEDURE:
1) Analyse & prepare job description.
2) Select & prepare a job evaluation plan.
3) Classify jobs.
4) Install the programme.
5) Maintain the programme.

METHODS : of J.E.
1) Ranking system, 2) grading/ job classification system, 3)
the point system &, 4) the factor comparison system.
-Method 1 & 2 are non analytical / non-quantitative where as
3 & 4 are analytical & quantitative.

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Difference between JD and JS

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Job Design
 Job design is basically is assignment of goals
and tasks to be accomplished by Employees
 It integrates work content, rewards and the
qualifications required for each job in a way that
meets the needs of employees and the
organization.

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Techniques/ Factors affecting
Job Design

• Job Enrichment
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Difference between Job Enrichment and
Job Enlargement

Points of Difference

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2.2 Recruitment & Selection Process

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RECRUITMENT & SELECTION PROCESS:
Recruitment forms the first stage in the process
which continues with selection & increases with the
placement of the candidate.
- Recruiting is the discovering of potential applicants for
actual or anticipated organizational vacancies.
DEFINITION- Recruitment ----by Yoder
“ Recruitment is a process to discover the source of
manpower to meet the requirements of the staffing
schedule & to employ effective measures for
attracting that manpower in adequate numbers to
facilitate effective selection of an efficient working
force”.
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- Factors governing recruitment may broadly be
divided as internal & external factors.
- Internal Factors are:
1) Recruiting policy of the organization,
2) HRP strategy of the company,
3) Size of the organization & the number of employees
employed,
4) Cost involved in recruiting employees & finally,
5) Growth & expansion plans of the organization.

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External Factors:
1) Supply & demand of specific skills in the labour
market,
2) Political & legal considerations such as
reservation of jobs for SC‟s, St‟s, & so on.
3) Company‟s image-perception of the job seekers
about the company.

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STEPS IN RECRUITMENT PROCESS
RECRUITING SELECTING PLACING NEW
PERSONNEL
NEEDED QUALIFIED EMPLOYEES
HRP
PERSONNEL PERSONNEL ON JOB

DEVELOPING SEARCH FOR EVALUATING

SOURCES OF POTENTIAL RECRUITING
POTENTIAL EMPLOYEES EFFECTIVENESS
EMPLOYEES

PERSONNEL UPGRADING IN
INTERNAL SAME POSITION
RESEARCH
SOURCES
TRANSFERING
JOB POSTING TO NEW JOB
PROMOTING TO
EMPLOYEE HIGHER RESPONSIBILITIES
REFERRALS
EXTERNAL ADVERTISING
SOURCES Dr.Anuradha Phadnis EVALUATING 25

SCOUTING FOR SELECTION

 Sources of Recruitment
 Internal:- Personnel already on the pay roll of an
organization (present working force)
- Personnel who were once on the pay roll of the
company, who plan to return or whom the company
want to rehire.
- Job posting, transfers, promotions.
 External:- New entrants to the labour force.
- Retired experienced persons.
- Unemployed- with skills & abilities
- Personnel working with competitors or other org., etc.

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Other Sources:
- Advertising a source of candidates
- Employment agencies a source of candidates
- Contingent workers & temporary help agencies
- Executive recruiters a source (head hunters)
- College recruiting a source of candidates (campus)
- Referrals & walk-Ins a source of candidates
- Computerized employee data bases
- Older workers a source of candidates
- Recruiting minorities & women.

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SELECTION :
 The selection procedure is concerned with securing
relevant information about an application. This
information is secured in a number of steps or stages.
 The objective of selection process is to determine
whether an applicant meets the qualifications for a
specific job and to choose the applicant who is most
likely to perform well in that job.
 Selection is a long process, commencing from the
preliminary interview of the applicants and ending with
the contract of employment.

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DEFINITION- SELECTION ---by Yoder
“ the hiring process is of one or many „go, no-go‟
gauges. Candidates are screened by the application of
these tools. Qualified applicants go on to the next
hurdle, while the unqualified are eliminated”.
 Selection process or activities typically follow a
standard pattern, beginning with an initial screening
interview & conducting with the final employment
decision.
 The traditional selection process includes, preliminary
screening interview, completion of application form,
employment tests, comprehensive interview,
background investigations, physical examinations &
final employment decision to hire.
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SELECTION : Process
Reception of Applications

Preliminary Interview

Application Blank
or unfavourable general impression
Physically unfit / personally objectionable

Psychological Tests

Interview
Unfavourable second impression
Unfavourable personnel data

Unfavourable previous history

Background Investigation
Unfavourable test score

(Reference Check) Waiting

List of
Final Selection Desirable
By interviewers applicants
unfit
Physically

Physical Examination

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Negative decision Placement

TYPES OF SELECTION
 Aptitude Tests: Intelligence test, Mechanical
aptitude, Psychometric test, Clerical aptitude
tests.
Achievement Tests: Job knowledge test, Work
sample test.
Situational Tests: Group Discussion, In basket.
Interest Tests.
Proficiency Tests.
Personality Tests: Objective tests, Projective
tests. Dr.Anuradha Phadnis 31
Dr.Anuradha Phadnis 32
INTERVIEW
 Interview is a selection technique which enables
the employer to view the total individual and
directly appraise him or his behavior.
In Interview an idea of applicants personality
(including his intelligence, breadth of interests,
and general attitude towards life) can be obtained
by a face-to-face contact.
Def: by Scott “an interview is a purposeful
exchange of ideas, the answering of questions
and communication between two or more
persons” Dr.Anuradha Phadnis 33
 TYPES OF INTERVIEW:
TYPES

 Preliminary Core Decision Making

Interview Interview Interview

Informal Unstructured Background Stress

Interview Interview Information Interview

Formal & Panel

Structured Interview

Group Job & Probing

Discussion Interview

Depth
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Interview
 HR coca cola
Recruitment & Selection process at Coke
Recruitment process
The recruitment process is well established, first of all ads are
published in news papers, company website, institutions etc. Then
receipt of application forms, from candidates with required
documents and C V. is carried.
- Internal recruitment
- External recruitment

Selection process
The selection process will vary depending on the position applied for,
as one process can‟t fit all the different roles required. However, in
most cases a combination of any of the following tools will be used:
- Interview
- Group exercises
- Presentations
- Psychometric tests Dr.Anuradha Phadnis 35
PLACEMENT & INDUCTION :
 Placement: After an employee has been hired and
oriented, he or she must be placed in his/ her right job.
- Placement is understood as the allocation of people to
jobs.
- It is the assignment (new employees) or re-assignment
(existing employees: by transfers, promotion/ demotion)
of an employee to a new or different job.
Induction/ Orientation:
- Induction means the introduction of newly appointed
employees to their jobs, to their fellow workers and to
the organization.
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CAREER PLANNING & SUCCESSION PLANNING
 CAREER PLANNING
 Organization needs to fill-up its positions by internal
promoters through matching their strengths & developing
these strengths.

 Individual needs promotions (advancement in career path)

in order to satisfy their aspirations and expectations from
their careers.

 For this a systematic career planning of individuals in the

organization should be done.

 Career Planning focuses more sharply on the need &

mechanism for filling-up various organizational positions
through promotions.
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Definition Of Career Planning
 Career planning is the process of establishing career
objectives and determining appropriate educational and
developmental programs to further develop the skills required
to achieve short- or long-term career objectives.

 Structured exercise undertaken to identify one’s objectives,

marketable skills, strengths & weaknesses, etc., as a part of
one’s career management.

Dr.Anuradha Phadnis 39
Career Planning: 4 step process

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 CAREER PLANNING PROCESS
Individuals Counseling
Individual
Needs and And
development
aspirations assessment

Placement
Synthesizing Contemplating On career
path

Personal
Organizational Training &
Planning
Needs and Development
& Career
opportunities programs
information

Dr.Anuradha Phadnis 41
 Definition: Succession Planning
 Identification and development of potential successors for
key positions in an organization, through a systematic
evaluation process and training.

 The process of identifying long-range needs and cultivating

a supply of internal talent to meet those future needs. Used
to anticipate the future needs of the organization and assist
in finding, assessing and developing the human capital
necessary to the strategy of the organization.

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SUCCESSION PLANNING Process

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 SUCCESSION PLANNING
 It refers to the process of identifying and developing the future
leadership of the company.

 It helps org. in several ways . It requires senior mgmt. to

systematically conduct a review of leadership talent in the
company.

 It provides a set of development experiences that managers

must complete to be considered for top mgmt. positions, which
avoids premature promotions of managers who are not ready
for upper mgmt. ranks.

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 Cont.
 Succession planning system also help attract & retain
managerial employees by providing them with development
opportunities that they can complete if upper-level mgmt. is a
career goal for them.

 High-potential employees are employees that the company

believes are capable of being successful in higher-level
managerial positions such as general managers, functional
directors, etc.

 High-potential employees typically complete an individualized

development program that involves education, executive
mentoring & coaching, & rotation through job assignments,
which are based on the successful career paths of the
managers that the high-potential employees are being prepared
to replace. Dr.Anuradha Phadnis 45
Development of H P E’s
involve three stages:
Stage I : HPE’s are selected
(those who have elite academic programs)

Stage II : development experiences, C.S.,

relationship skills, &
(who can compromise for Company)

Stage III : Here CEO/ top mgmt. is actively

Involved in developing HPE’s in 360 degree
Angle. It is a slow process.
(reaching here may take 10-15 yrs)

Dr.Anuradha Phadnis 46
Promotion
 According to E.B. flippo “promotion involves a
change from one job to another that is better in
the terms of status and responsibilities.”

 According to Scott and Spreigal: “A Promotion is

the transfer an employee to a job that pays more
money or that enjoys some preferred status.”

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 Purpose of Promotion
 1.Recognize and reward employee’s good/superior
performance and commitment.
 2. Promote a feeling of content with the existing conditions of
the company and a sense of belongingness.
 3. Build loyalty and to boost morale and job satisfaction.
 4. Retain skilled and talented employees and reduce
discontent and unrest.
 5. Promotions acts as a tool for reducing labour turnover.
 6. Increase interest in acquiring higher qualifications, training
and self development with a view to meet the requirements of
promotion.
 7. Reduce/Eliminate problems created by the leader of
workers’ unions by promoting them to the officer’ levels where
they are less effective in creating problems.
 8. Ultimately it improves organization
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Transfer
 A transfer is a horizontal or lateral movement of
an employee from one job, section, department,
shift plant or position to another at some other
place where salary, status and responsibility are
usually the same.

 Transfer is defined as “a lateral shift causing

movement of individuals from one position to
another usually without involving any kind of
change in duties, responsibilities, skills needed
or compensation
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 Need and Purpose of Transfer
1. Meet the organizational requirements and also personal
requirements of employees.
2. Satisfy employee’s needs.
3. Utilize employees’ skill, knowledge etc., where they are
more suitable or badly needed.
4. Correct inter-personal conflicts.
5. Avoid favoritism and nepotism.
6. Creates transparency among the employees and their work
7. Maintain healthy relationship among staff in order to
ensure harmonious environment and to avoid unnecessary
disputes. 8. Limits the ability of an employee to take
advantage and sole control over the seat or section.

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 Employee Retention
 “81% of all organizations perceive turnover as
having a negative effect on their effectiveness”.

Dr.Anuradha Phadnis 51
 What is Employee Retention ?
 Employee retention refers to the various policies
and practices which let the employees stick to an
organization for a longer period of time.

Mathematical Definition:
Retention is the rate at which current employees of
your organization are staying in their jobs. Retention
is the opposite of “turnover.” Therefore, if turnover is
low, then retention is high.

Dr.Anuradha Phadnis 52
Need & Importance of Employee Retention
• Hiring is not an easy process
• An organization invests time and money in grooming an
individual and make him ready to work and understand the
corporate culture.
• When an individual resigns from his present organization,
it is more likely that he would join the competitors
• The employees working for a longer period of time are
more familiar with the company’s policies, guidelines and
thus they adjust better
• It has been observed that individuals sticking to an
organization for a longer span are more loyal towards the
management and the organization.

Dr.Anuradha Phadnis 53
Employee Retention Strategies
• The company’s rules and regulations should be
made to benefit the employees.
• Performance appraisals are also important for an
employee to stay motivated and avoid looking for a
change.
• Employee recognition is one of the most
important factors which go a long way in retaining
employees.
• The responsibilities must be delegated according
to the individual’s specialization and interests.
Dr.Anuradha Phadnis 54
Role of HR in Employee Retention
• Whenever an employee resigns from his current
assignments, it is the responsibility of the HR to
intervene immediately to find out the reasons
which prompted the employee to resign.

• It is the duty of the HR to sit with the employee

and discuss the various issues face to face. Try to
provide a solution to his problem.

• The HR person must ensure that he is recruiting

the right employee who actually fits into the role.
Dr.Anuradha Phadnis 55
Role of HR in Employee Retention
• The human resource department must conduct
motivational activities at the workplace.

• The HR must launch various incentive schemes

for the top performers to motivate them.

• Performance reviews are a must. The HR along

with the respective team leaders must monitor
their team member’s performance to ensure
whether they are enjoying the work or not.
Dr.Anuradha Phadnis 56
 Retention
 People don‟t want to leave an organization, if they
feel that they are constantly learning & upgrading
their skills.
 By starting a very clearly defined career path and by
ensuring development of quality manpower in
collaborations with their staffing partners the
organization will be far more effective in reducing
attrition rather than just raising salaries constantly
to prevent people from leaving.

Dr.Anuradha Phadnis 57
Expected Questions:
 What is Manpower Planning/ Human Resource Planning.
 Explain Recruitment & Selection process.
 Define:
 Sources of recruitment
 Steps in selection.
 Job Analysis
 Job description & Job selection.
 Explain Career Planning and Succession Planning.
 Retention Strategies

Dr.Anuradha Phadnis 58
References:

 HRM – Aswathapa
 HRM – Veera Karoli
 HRM – Gary Dessler

Dr.Anuradha Phadnis 59
Thank You….

Dr.Anuradha Phadnis 60