Human Resource

Management

Dr. Sunil Budhiraja

Course Details
• Course Name - Human Resource Management
• Nature of the course – 100% online
• Number of Credit - 04
• Maximum Marks – 100
Recommended Books and Readings
Books
• Human Resource Management
• By Gary Desslar and Biju Varkkey, Pearson
• Human Resource Management
• By Denisi, Griffin and Sarkar, Cengage
Journals
• Indian Journal of Industrial Relations
• Harvard Business Review
Course Outcomes
After completing the course, students will be able to

• understand the evolution of HRM and various roles attached to Human

Resource Management.

• explain the qualities of an HR manager and the difference between

personnel and HR management

• comprehend various sub-functions of HRM including HR planning, job

analysis, recruitment, compensation, training and performance
management system.

• analyse the role of HR management in various quality assurance

techniques

• apply the concept of HRM in solving organizational problems realted to

human resource management
 Lecture 19-24

Personnel/Manpower/HR/Workforce Planning
Recruitment and Selection
Employee Retention
Learning Objectives

• Understand the significance and character of human resource

planning.
• List the factors affecting human resources planning.
• Elucidate the process of human resources planning.
• List the barriers to an effective human resource planning.
Recent News to Ponder
Planning and Forecasting
• HR or Personnel Planning
• The process of deciding what positions
the firm will have to fill, and how to fill
them.
• Succession Planning
• The process of deciding how to fill the
company’s most important executive jobs.
• What to Forecast?
• Overall personnel needs
• The supply of inside candidates
• The supply of outside candidates
Process of HR Planning
Step-1: Considering organizational objectives and
strategies

• The organizational strategy along with the

mission and vision statement clearly
expresses the future intent of the
organization.
• HR plans are generally guided by the overall
organizational objectives and strategies.
Step-2: Assessment of external
environment
 Step-2: Assessment of external
environment (contd.)

• Organizations undertake environmental

scanning to identify the changes in the
external environment.
• Purpose of environmental scanning is to
examine the business environment, to seize
the opportunities and tackle the threats.
Step-3: Preparation of in-house skills and
competency inventory
• A compilation of skills, competencies and
qualifications of the entire workforce is described as a
skill inventory.
Skill inventory can be prepared through
• Skills audit (assessing the current skill levels of a firm).
It involves assessing the performance of the
employees from the task perspective.
Step-3: Preparation of in-house
skills and competency inventory
(contd.)

• Core competency analysis (assessing the extra-

ordinary abilities of the firm). These abilities
may be its advanced technology, well-reputed
management, problem-solving ability,
employees’ and KSA.
Step-4: HR forecasting—need assessment

Forecasts involve estimating the future

requirements of the organization in terms of the
nature and the number of people.
Forecasting techniques commonly used for
human resource forecasting are
Illustration
No. of
Year 2020 Year 2021 Year 2022 Year 2023 Year 2024
vacancies

Senior 3 (newly
0 0 0 0
Director created)

8 (newly
Director 0 0 1 0
created)
Joint 9 (newly
1 3 2 2
Director created)
10+3 (newly
Assistant
created +3 4 2 0 1
Director
retirement

-15 (reduced)+
Officer 3 5 8 6
4 retirements

clerk -12 (reduced) 0 1 0 0

HR forecasting—need assessment (contd.)
Trend analysis
• It provides an initial rough estimate of the requirement.

• Study the variation in the HR requirement in the last 4-5 years.

• The study to be performed on each of the department separately.

Ratio analysis

• Ratio analysis is the analysis of the relationship between any two

numerical variables.
• It presumes a certain relationship between two given variables and
using that relationship, predicts future HR requirements.
• Machine-worker ratio, student-teacher ratio, customer-executive ratio,
shipment-delivery staff ration, bed-nurse ratio etc
HR forecasting— normal group technique

• It is an interactive mode of decision-making.

• Each expert in a group independently develops HR requirements and
presents it before other experts in the group.
• Each member’s proposal is relatively graded and the top-ranked
proposal is selected as the final HR forecast.
HR forecasting— managerial judgement

• The forecasting in managerial judgement is based on the managers’

subjective views on the possible human resource requirements in the
future.
• Forecasts are made about the HR requirements, usually by the senior
managers of the organization based on their experience.
Types of managerial judgement
• Bottom-up approach- In this method, the process of
HR forecasting begins with the lowest level of the
managerial hierarchy and the managers in charge of
each division or department forecast the HR
requirements. This forecasting process is then moved
up gradually to the higher levels of the management.
Types of managerial judgement (contd.)

• Top-down approach- In this method, experts working at the highest

levels of the management forecast the HR needs of the organization
on the basis of the information available and the field expertise.
Delphi Method
• Delphi method is a structured communication technique, originally
developed as a systematic, interactive forecasting method which
relies on a panel of experts. The experts answer questionnaires in two
or more rounds.
HR forecasting— Delphi technique

• The Delphi technique is basically a group-based systematic forecasting

method.
• This technique does not require any face-to-face participation by the
experts.
• This method aims at maximizing the benefits and minimizing the
dysfunctional aspects of group decision-making as it eliminates group
dynamics and individual dominance from the process.
HR forecasting—estimation of availability
This process involves the estimation of the availability
of the required number of employees.
The techniques for forecasting HR availability through
internal sources are
• Replacement charts- These are records that contain
details about the currently serving employees and the
possible replacements for them in their position.
HR forecasting—estimation of availability (contd.)

• Productivity level
• Overtime and absenteeism
• Human resource management information system (HRIS)
• Employee Turnover rate
• Succession planning
Replacement Chart
Markov Analysis
• Mathematical process to forecast the internal availability of
candidates.
• Also known as transition analysis
• Probabilities of employees in the feeder chain are calculated
Step-5: Developing HR plans and programmes

• The estimated HR needs are matched with

the estimated HR availability to identify the
skill shortage or surplus.
• Based on the outcome, appropriate HR plans
are developed.
Step-5: Developing HR plans and programmes
(contd.)

• The outcome of such comparisons would

be either the recruitment of more
employees or a reduction of the existing
workforce.
HR as a profit center
Barriers to HR planning process

• Insufficient realization of the importance of HR

plans.
• Glut in the Indian labour market.
• Union resistance.
• Cost–benefit misconceptions.
• Absence of coordination.
• Future uncertainty.
Recruitment
Time to Debate
• Future of gig workers in India.

• Read the news article and share your opinion.

• https://economictimes.indiatimes.com/news/economy/policy/covid-
19-prompts-workers-corporates-to-adopt-gig-
economy/articleshow/78732156.cms
Recruitment

It is a process involving a series of planned activities to create/develop

a pool of applicants.
Features of recruitment

• It is normally referred to as positive process.

• It represents the first contact between the organization and the
potential employees.
• It intends to locate and reach out to potential applicants.
 Factors governing recruitment policy

The internal factors are

• HR policy of the organization.
• Nature of the job.
• Reputation of the firm.
Factors governing recruitment policy

The external factors are

• Labour market conditions
• Legal provisions
• Socio–economic factors
Recruitment process
The recruitment process is concerned with the
procedure for the identification and
classification of the potential source of human
resources supply and effectively utilising those
sources.
Recruitment process

The steps in recruitment process are

• Human resources planning
• Determination of recruitment strategy (Make or Buy decision)
• Evaluation of the sources of recruitment
• Implementation of recruitment methods and strategies
• Feedback and control
Sources of recruitment
 Internal sources of recruitment

• Existing employees
• Former employees
• Employee referrals
 External sources of recruitment

• Outsourcing recruitment agencies

• Advertisements
• Campus recruiting
• Walk-ins and write-ins
• Internet recruiting
• Raiding or poaching from other organizations
Employer Branding
• Creating an image of the organization in the minds of prospective and
existing employees (Ambler and Borrow, 1996).
Time to ponder
• Think of the activities which organizations can do to build/ improve
the image of the organization.
• Also consider yourself as a job seeker, make a list of expectations that
you have from your future employer.
Recruitment practices in India

• Existing employees
• Employee referrals
• Advertising
• Private employment agencies
Top 5 recruitment companies
• ABC consultants
• Manpower Group
• Kelly Services
• Randstad (Previously Ma Foi)
• Teamlease
Selection
Employee Selection

Selection is a systematic process of identifying suitable candidates for

the available job(s) from the available applicant pool.
Google – Why the best?
• How does Google hire the best? A potential employee currently undergoes five
interviews. Hiring decisions are taken by a panel that consists of the hiring
manager, a cross-functional interviewer (not related to the function; ensures a
candidate is a fit for Google), a peer interviewer, and a diversity interviewer
(candidates need an inclusive mindset). All of them need to be convinced about a
candidate. "We don't just hire for the role that is now open. We look at the
person's ability to scale into various other roles; that ties into our internal
mobility and career mobility philosophy," says Kodukulla.
Difference between recruitment
and selection
Selection Process
Application form

Selection Test (s)

Technical and HR Interview (s)

Physical and Medical Test

Reference check
Employment application forms/blanks

Application forms normally solicit the following information from the

candidates
• Biographical information
• Educational qualifications
Employment application forms/blanks (contd.)

• Work experience
• Pay and other perquisites
• Additional information
• References
Selection tests

A test is a standardized assessment of a sample but critical behaviour

of candidates to determine their suitability for the job.
Characteristics of psychological tests
• Objectivity- It refers to the validity and reliability
of the measuring tools.
• Standardization- It means that there is uniformity
in the procedure followed in conducting the test.
• Sample of behaviour- It refers to test contents
which should predict a representative sample of
the eventual behaviour of the candidates.
Types of Selection tests
Types of ability test

• Intelligence (IQ) test- The aim of an intelligence test is to measure

the general intellectual abilities of a person.
• Aptitude test- An aptitude test measures the latent talents of a
person that may be crucial to performing the job successfully.
Personality test

• A personality test proposes to assess and predict these basic

characteristics of a person.
• Its results are useful in predicting the future performance of the
candidate.
MBTI Personality Matrix
• Extrovert v/s Introvert
• Judging v/s Perceiving
• Sensing v/s iNtuitive
• Thinker v/s Feeler
Personality test (contd.)

Thematic Apperception Test (TAT), and Myers-

Briggs type indicator (MBTI) are some of the
popular forms of personality test.
Interest test

• The aim of the interest test is to know the interest, attitude and
preference of a person towards the job offered.
• Kuder Preference Record and Strong Vocational Interest Blank are
some well-known interest tests.
Honesty or integrity test

• In an honesty or integrity test, the questions are asked in such a

way that the attitude and actual behaviour of the candidates can
be found out.
• These are rarely used in India.
Evaluation of psychological tests

Merits
• Objective in evaluation.
• Ideal for large groups.
• Predictor of intangible talents.
• Goal-specific and target-oriented.
• Record for future.
Evaluation of psychological tests

Limitations
• Lack of flexibility.
• Unsuitable for smaller groups.
Using selection Tests
• Reliability
• A reliable test is one which is consistent over a period of time.

• Validity
• You are measuring what you intend to measure
Selection interview

• Interview is a face–to–face conversation to collect information

from a candidate to determine his or her suitability for a job.
Kinds of interview
Structured v/s unstructured Interview
Interview Structure
Formats

Unstructured Structured
(nondirective) (directive)
interview interview
Interview contents

Types of Questions Asked

Behavioral Event Job-related Stress

interview interview interview
Stress Interview
• Aim of this interview is to check the stress tolerance of the candidate.
• Used for jobs which require handling stress
• Interviewer tries to make interviewee uncomfortable by asking a few
rude questions.
Behavioral Event Interview
• Interviewer judge the behavior of interviewee in a given situation
• STAR technique is used
• Situation
• Task
• Action
• Result
Common errors during interviews
• First Impression
• Contrast Effect
• Impression Management
• Candidates’ personal characteristics
• Not clarifying what the job requires
• Confirmation bias
How to Conduct a More Effective Interview
Being Systematic and Effective

1 Know the job.

2 Structure the interview.
3 Get organized.
4 Establish rapport.
5 Ask questions.
6 Take brief, unobtrusive notes.
7 Close the interview.
8 Review the interview.
Ways to conduct effective interviews
Structure the interview to
increase its validity

Making the Carefully choose what sorts of

Interview Useful traits are to be assessed

Beware of committing
interviewing errors
Criteria for selecting candidates
• Performance of the interview

• Cost / salary expected

• Legal Obligation / if any?

“Hire character. Train skill.” – Peter Schutz

Case Study
Examples of Questions on Situation and Behavior

1. Suppose a more experienced coworker was not following standard

work procedures and claimed the new procedure was better. Would you
use the new procedure? – Process Orientation
2. Suppose you were giving a sales presentation and a difficult technical
question arose that you could not answer. What would you do? –
Customer Orientation and subject knowledge
3. Based on your past work experience, what is the most significant action
you have ever taken to help out a coworker? – People Management
4. Can you provide an example of a specific instance where you
developed a sales presentation that was highly effective? – Business
development
5. What work experiences, training, or other qualifications do you have for
working in a teamwork environment? – Team Orientation
6. What steps would you follow to conduct a brainstorming session with a
group of employees on safety? – Critical Thinking
Suggested Supplementary Questions for Interviewing Applicants

1. How did you choose this line of work?

2. What did you enjoy most about your last job?
3. What did you like least about your last job?
4. What has been your greatest frustration or disappointment on your present job? Why?
5. What are some of the pluses and minuses of your last job?
6. What were the circumstances surrounding your leaving your last job?
7. Did you give notice?
8. Why should we be hiring you?
9. What do you expect from this employer?
10. What are three things you will not do in your next job?
11. What would your last supervisor say your three weaknesses are?
12. What are your major strengths?
13. How can your supervisor best help you obtain your goals?
14. How did your supervisor rate your job performance?
15. In what ways would you change your last supervisor?
16. What are your career goals during the next 1–3 years? 5–10 years?
17. How will working for this company help you reach those goals?
18. What did you do the last time you received instructions with which you disagreed?
19. What are some things about which you and your supervisor disagreed? What did you do?
20. Which do you prefer, working alone or working with groups?
21. What motivated you to do better at your last job?
22. Do you consider your progress in that job representative of your ability? Why?
23. Do you have any questions about the duties of the job for which you have applied?
24. Can you perform the essential functions of the job for which you have applied?
Managing careers and employee retention
• Importance of talent retention
• Concept of Career and Career Management
• Importance of employee mentoring
• Workplace diversity
 How to retain employees?
Create a culture that honors experience

Modify selection procedures

HR Policies for
Older Workers
Offer flexible or part-time work

Implement phased retirement programs

The Basics Of Career Management

Career Management

Career
Career Development
Terminology

Career Planning
Definitions
• Career management is the process for enabling employees to
better understand and develop their career skills and interests and to
use these skills and interests most effectively within the company
and after they leave the firm.
• Career development is the lifelong series of activities that contribute
to a person’s career exploration, establishment, success, and
fulfillment.
• Career planning is the formal process through which someone
becomes aware of his or her personal skills, interests, knowledge,
motivations, and other characteristics; acquires information about
opportunities and choices; identifies career-related goals; and
establishes action plans to attain specific goals.
Identify Your Career Stage
• Exploration Stage
• Growth Stage
• Establishment Stage
• Midcareer crisis
• Maintenance Stage
• Decline Stage