HUMAN RESOURCES MANAGEMENT

Opening Case
On October 3, 2003, Anant Dalvi and Akhtar Khan, who worked as contract workers in Tata
Electric Company until they were laid off in 1996, doused themselves with kerosene and set
themselves ablaze even as their co-workers protested before the company’s offices. While Dalvi
died on the spot, Khan died a few days later.
The Tata Electric Company said they were no longer on their payroll and were not permanent
workers. Employees union had taken up their case and filled petition in the Labour Court before
their contracts were terminated. The court directed the company not to terminate their services
without following the due process of law. Despite this their services were terminated on June 30,
1996.
The company union promised the workers that they would renegotiate. Yet on the night before
they killed themselves when Khan and Dalvi spoke to the union leader Shinde, they were told
that nothing more could be done for them. It is this that led them to take their lives. Dalvi has
been in service as a peon for17 years and Khan had been employed for 19 years. But their
services were not regularized. Such workers draw salary much less than the permanent
employees.

HRM is the study of activities regarding people working in an organization. It is a managerial

function that tries to match an organization’s needs to the skills and abilities of its employees.
Human resources management (HRM) is a management function concerned with hiring,
motivating and maintaining people in an organization. It focuses on people in organizations.
Human resource management is designing management systems to ensure that human talent is
used effectively and efficiently to accomplish organizational goals.
HRM is the personnel function which is concerned with procurement, development,
compensation, integration and maintenance of the personnel of an organization for the purpose of
contributing towards the accomplishments of the organization’s objectives. Therefore, personnel
management is the planning, organizing, directing, and controlling of the performance of those
operative functions .
According to Edwin B. Flippo, ―Human resource management is the planning, organising,
directing and controlling of the procurement, development, resources to the end that individual
and societal objectives are accomplished‖. This definition reveals that human resource (HR)
management is that aspect of management, which deals with the planning, organising, directing
and controlling the personnel functions of the enterprise.
NATURE OF HUMAN RESOURCE MANAGEMENT
The nature of the human resource management has been highlighted in its following features :
 1. Inherent Part of Management : Human resource management is inherent in the process
of management. This function is performed by all the managers throughout the
organisation rather that by the personnel department only. If a manager is to get the best
of his people, he must undertake the basic responsibility of selecting people who will
work under him.
2. Pervasive Function : Human Resource Management is a pervasive function of
management. It is performed by all managers at various levels in the organisation. It is
not a responsibility that a manager can leave completely to someone else. However, he
may secure advice and help in managing people from experts who have special
competence in personnel management and industrial relations.
3. Basic to all Functional Areas : Human Resource Management permeates all the
functional area of management such as production management, financial management,
and marketing management. That is every manager from top to bottom, working in any
department has to perform the personnel functions.
4. People Centered : Human Resource Management is people centered and is relevant in
all types of organisations. It is concerned with all categories of personnel from top to the
bottom of the organisation. The broad classification of personnel in an industrial
enterprise may be as follows :
(i) Blue-collar workers (i.e. those working on machines and engaged in loading,
unloading etc.) and white-collar workers (i.e. clerical employees),
(ii) Managerial and non-managerial personnel,
(iii) Professionals (such as Chartered Accountant, Company Secretary, Lawyer,
etc.) and non-professional personnel.
5. Personnel Activities or Functions : Human Resource Management involves several
functions concerned with the management of people at work. It includes manpower
planning, employment, placement, training, appraisal and compensation of employees.
For the performance of these activities efficiently, a separate department known as
Personnel Department is created in most of the organisations.
6. Continuous Process : Human Resource Management is not a one shot 'function. It must
be performed continuously if the organisational objectives are to be achieved smoothly.
7. Based on Human Relations : Human Resource Management is concerned with the
motivation of human resources in the organisation. The human beings can‘t be dealt with
like physical factors of production. Every person has different needs, perceptions and
expectations. The managers should give due attention to these factors. They require
human relations skills to deal with the people at work. Human relations skills are also
required in training performance appraisal, transfer and promotion of subordinates.
Scope of HRM
 The scope of HRM is indeed vast. All major activities in the working life of a worker –
from the time of his or her entry into an organization until he or she leaves the
organizations comes under the purview of HRM.

These are given below:

● Human Resource Planning
● Design of the Organization and Job
● Selection and Staffing
● Training and Development
● Organizational Development
● Compensation and Benefits
● Employee Assistance
● Union/Labour Relations
● Personnel Research and Information System
a) Human Resource Planning: The objective of HR Planning is to ensure that the
organization has the right types of persons at the right time at the right place. It prepares
human resources inventory with a view to assess present and future needs, availability
and possible shortages in human resource. Thereupon, HR Planning forecast demand and
supplies and identify sources of selection. HR Planning develops strategies both
long-term and short-term, to meet the man-power requirement.
 b) Design of Organization and Job: This is the task of laying down organization structure,
authority, relationship and responsibilities. This will also mean definition of work
contents for each position in the organization. This is done by “job description”. Another
important step is “Job specification”. Job specification identifies the attributes of persons
who will be most suitable for each job which is defined by job description.
c) Selection and Staffing: This is the process of recruitment and selection of staff. This
involves matching people and their expectations with which the job specifications and
career path available within the organization.
d) Training and Development: This involves an organized attempt to find out training
needs of the individuals to meet the knowledge and skill which is needed not only to
perform current job but also to fulfil the future needs of the organization.
e) Organizational Development: This is an important aspect whereby “Synergetic effect”
is generated in an organization i.e. healthy interpersonal and inter-group relationship
within the organization.
f) Compensation and Benefits: This is the area of wages and salaries administration
where wages and compensations are fixed scientifically to meet fairness and equity
criteria. In addition labour welfare measures are involved which include benefits and
services.
g) Employee Assistance: Each employee is unique in character, personality, expectation
and temperament. By and large each one of them faces problems everyday. Some are
personal some are official. In their case he or she remains worried. Such worries must be
removed to make him or her more productive and happy.
h) Union-Labour Relations: Healthy Industrial and Labour relations are very important
for enhancing peace and productivity in an organization. This is one of the areas of HRM.
i) Personnel Research and Information System: Knowledge on behavioral science and
industrial psychology throws better insight into the workers expectations, aspirations and
behaviour. Advancement of technology of product and production methods have created
working environment which are much different from the past. Globalization of economy
has increased competition many fold. Science of ergonomics gives better ideas of doing a
work more conveniently by an employee. Thus, continuous research in HR areas is an
unavoidable requirement. It must also take special care for improving exchange of
information through effective communication systems on a continuous basis especially
on moral and motivation.
Objectives of HRM
The primary objective of HRM is to ensure the availability of competent and willing workforce
to an organization. The specific objectives include the following:
1) Human capital : assisting the organization in obtaining the right number and types of
employees to fulfill its strategic and operational goals
 2) Developing organizational climate: helping to create a climate in which employees are
encouraged to develop and utilize their skills to the fullest and to employ the skills and
abilities of the workforce efficiently
3) Helping to maintain performance standards and increase productivity through effective
job design; providing adequate orientation, training and development; providing
performance-related feedback; and ensuring effective two-way communication.
4) Helping to establish and maintain a harmonious employer/employee relationship
5) Helping to create and maintain a safe and healthy work environment.
6) Developing programs to meet the economic, psychological, and social needs of the
employees and helping the organization to retain the productive employees
7) Ensuring that the organization is in compliance with provincial/territorial and federal
laws affecting the workplace (such as human rights, employment equity, occupational
health and safety, employment standards, and labour relations legislation). To help the
organization to reach its goals
8) To provide organization with well-trained and well-motivated employees
9) To increase the employees satisfaction and self-actualization
10) To develop and maintain the quality of work life
11) To communicate HR policies to all employees.
12) To help maintain ethical polices and behavior.
The above stated HRM objectives can be summarized under four specific objectives: societal,
organizational, and functional and personnel.
1) Societal Objectives: seek to ensure that the organization becomes socially responsible
to the needs and challenges of the society while minimizing the negative impact of such
demands upon the organization. The failure of the organizations to use their resources for
the society’s benefit in ethical ways may lead to restriction.
2) Organizational Objectives: it recognizes the role of HRM in bringing about
organizational effectiveness. It makes sure that HRM is not a standalone department, but
rather a means to assist the organization with its primary objectives. The HR department
exists to serve the rest of the organization.
3) Functional Objectives: is to maintain the department’s contribution at a level
appropriate to the organization’s needs. Human resources are to be adjusted to suit the
organization’s demands. The department’s value should not become too expensive at the
cost of the organization it serves.
4) Personnel Objectives: it is to assist employees in achieving their personal goals, at
least as far as these goals enhance the individual’s contribution to the organization.
Personal objectives of employees must be met if they are to be maintained, retained and
motivated. Otherwise employee performance and satisfaction may decline giving rise to
employee turnover.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT.
The main functions of human resource management are classified into two categories: (a)
Managerial Functions and (b) Operative Functions
A. Managerial Functions Following are the managerial functions of Human Resources
Management.
1. Planning: The planning function of human resource department pertains to the steps
taken in determining in advance personnel requirements, personnel programmes, policies
etc. After determining how many and what type of people are required, a personnel
manager has to devise ways and means to motivate them.
2. Organisation : Under organisation, the human resource manager has to organise the
operative functions by designing structure of relationship among jobs, personnel and
physical factors in such a way so as to have maximum contribution towards
organisational objectives. In this way a personnel manager performs following functions:
(a) preparation of task force; (b) allocation of work to individuals; (c) integration of the
efforts of the task force; (d) coordination of work of individual with that of the
department.
3. Directing: Directing is concerned with initiation of organised action and stimulating
the people to work. The personnel manager directs the activities of people of the
organisation to get its function performed properly. A personnel manager guides and
motivates the staff of the organisation to follow the path laid down in advance.
4. Controlling: It provides basic data for establishing standards, makes job analysis and
performance appraisal, etc. All these techniques assist in effective control of the qualities,
time and efforts of workers.
B. Operative Functions : The following are the Operative Functions of Human Resource
Management.
1. Procurement of Personnel : It is concerned with the obtaining of the proper kind and
number of personnel necessary to accomplish organisation goals. It deals specifically
with such subjects as the determination of manpower requirements, their recruitment,
selecting, placement and orientation, etc.
2. Development of Personnel : Development has to do with the increase through training,
skill that is necessary for proper job performance. In this process various techniques of
training are used to develop the employees. Framing a sound promotion policy,
determination of the basis of promotion and making performance appraisal are the
elements of personnel development function.
3. Compensation to Personnel : Compensation means determination of adequate and
equitable remuneration of personnel for their contribution to organisation objectives. To
determine the monetary compensation for various jobs is one of the most difficult and
important function of the personnel management. It also assists the organisation for
adopting the suitable wages and salaries, policy and payment of wages and salaries in
right time.
4. Maintaining Good Industrial Relation : Human Resource Management covers a wide
field. It is intended to reduce strifies, promote industrial peace, provide fair deal to
workers and establish industrial democracy. It the personnel manager is unable to make
harmonious relations between management and labour industrial unrest will take place
and millions of man-days will be lost.
5. Record Keeping : In record-keeping the personnel manager collects and maintains
information concerned with the staff of the organisation. It is essential for every
organisation because it assists the management in decision making such as in promotions.
6. Personnel Planning and Evaluation : Under this system different type of activities are
evaluated such as evaluation of performance, personnel policy of an organisation and its
practices, personnel audit, morale, survey and performance appraisal, etc.

● The conscience role – reminding the managements of its moral obligations to its
employees.
● The counselor role – counseling the employees and offering suggestions to solve the
problems of the employees like marital, health, children education etc to enable the
employees concentrate on their work.
● The mediator role – settling the disputes between employees and the management by
acting as a communication link between them.
● The spokesperson role – representing the company to the outside agencies.
● The problem solver role – solving the issues that arise from time to time.
● The change agent role – introducing changes in the existing programmes.
Qualities of HR Manager
● Initiative & resourcefulness
● Analytical ability
● Depth of perception
● Knowledge of labor laws
● Understanding of human behavior
● Communication skills
● Discriminating skills
● Professional attitude

Human Resource Planning (HRP)

Human resource planning is important for helping both organizations and employees to prepare
or the future. The basic goal of human resource planning is to predict the future and based on
these predictions, implement programmes to avoid anticipated problems.

According to Vetter, “HRP is the process by which management determines how the organization
should move from its current man power position to desired manpower position. Through
planning, management strives to have the right time, doing things which result in both the
organization and individual receiving maximum long run benefits”.
Coleman has defined Human Resource Planning as ―the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated
plan of the organisation.

OBJECTIVES OF THE HUMAN RESOURCES PLANNING

1. To ensure optimum use of human resources current employees.
2. To assess or forecast future skill requirement.
3. To provide control measures to ensure that necessary resources are available as when
required.
4. A number of specified reasons for attaching importance to manpower planning and
forecasting exercises are:
 To link manpower planning with the organizational planning
 To determine recruitment levels.
 To anticipate redundancies.
  To determine optimum training levels.
 To provide a basis for management development programs.
 To cost the manpower.
 To assist productivity bargaining.
 To assess future accommodation requirement.
 To study the cost of overheads and value of service functions.
 To decide whether certain activity needs to be subcontracted, etc..

Need for HRP in Organizations

Major reasons for the emphasis on HRP at the Macro level:
1) Employment-Unemployment Situation: Though in general the number of educated
unemployment is on the rise, there is acute shortage for a variety of skills. This
emphasizes on the need for more effective recruitment and employee retention.
2) Technological Change: The changes in production technologies, marketing methods
and management techniques have been extensive and rapid. Their effect has been
profound on the job contents and job contexts. These changes have caused problems
relating to redundancies, retention and redeployment. All these suggest the need to plan
manpower needs intensively and systematically.
3) Demographic Change: The changing profile of the work force in terms of age, sex,
literacy, technical inputs and social background has implications for HRP.
4) Skill Shortage: Unemployment does not mean that the labour market is a buyer’s
market. Organizations generally become more complex and require a wide range of
specialist skills that are rare and scare. A problem arises in an organization when
employees with such specialized skills leave.
5) Governmental Influences: Government control and changes in legislation with regard
to affirmative action for disadvantages groups, working conditions and hours of work,
restrictions on women and child employment, causal and contract labour, etc. have
stimulated the organizations to be become involved in systematic HRP.
6) Legislative Control: The policies of “hire and fire” have gone. Now the legislation
makes it difficult to reduce the size of an organization quickly and cheaply. It is easy to
increase but difficult to shed the fat in terms of the numbers employed because of recent
changes in labour law relating to lay-offs and closures. Those responsible for managing
manpower must look far ahead and thus attempt to foresee manpower problems.
 7) Impact of the Pressure Group: Pressure groups such as unions, politicians and persons
displaced from land by location of giant enterprises have been raising contradictory
pressure on enterprise management such as internal recruitment and promotion,
preference to employees’ children, displace person, sons of soil etc.
8) Systems Approach: The spread of system thinking and advent of the macro computer
as the part of the on-going revolution in information technology which emphasis planning
and newer ways of handling voluminous personnel records.
Benefits of Human Resource Planning
1. It checks the corporate plan of the organization
2. It offsets uncertainly and change
3. It provides scope for advancement and development of employees through training,
development etc.
4. It helps to anticipate the cost of salary, benefits and all the cost of human resources
facilitating the formulation of budgets in an organization.
5. To foresee the need for redundancy and plan to check it or to provide alternative
employment in consultation with trade unions, other organizations and government
through remodeling organizational, industrial and economic plans.
6. To foresee the changes in values, aptitude and attitude of human resources and to
change the techniques of interpersonal, management etc.
7. To plan for physical facilities, working conditions and the volume of fringe benefits
like canteen, schools, hospitals, conveyance, child care centers. quarters, company
stores etc.
8. It gives an idea of type of tests to be used and interview techniques in selection based
on the level of skills, qualifications, intelligence, values etc., of future human
resources.
9. It causes the development of various sources of human resources to meet the
organizational needs.
10. It helps to take steps to improve human resource contributions in the form of
increased productivity, sales turnover etc.
11. It facilities the control of all the functions, operations, contribution and cost of human
resources.
Factors Affecting HRP
HRP is not quite independent. HR manager has to plan carefully after considering numerous
factors. HRP may misfire if the influencing factors are not considered. The following are the
External and Internal factor.
External Factor:
1. Government Regulations: Regulations can influence how a company goes about hiring,
training, compensating and even disciplining its workers, and a misstep could result in
sanctions against the company or even lawsuits filed by employees, prospective
 employees, vendors and customers. Various policies of the government like labour policy,
industrial policy, policy towards reserving certain jobs for different communities and
sons-of-the-soil, etc., affect human resource planning.
2. Technological factors:New technology brings new skill requirements, so companies
always need to be aware of proficiencies and training needs when planning human
resources. New products and services also may require recruiting highly skilled
employees or training existing employees to meet the need. technological advances may
impact staffing by automating a number of processes previously completed by humans,
decreasing the number of employees needed.
3. Economic Environment: The level of external economic activity can impact hiring.
When the economy is going through a recession, many workers are laid off from their
jobs, causing companies still hiring new employees to receive a higher volume of
applications from qualified candidates. A larger talent pool may allow an organization to
be more selective when choosing a candidate. For example, people do not have much
money to spend in an economic recession and tend to be much more selective in what
they buy or the services they use. This means some industries, such as those producing
luxury items or non-essential services, sell less and may even have to lay off some staff.
This, in turn, makes the local economy even more difficult.
4. Business Environment: Business environment means the internal and external factors that
influence the business. Business environmental factors influence the volume of mix of
production and thereby the supply of human resources in the future in the country.
5. International Factors: International factors like the demand and supply of human
resources in various countries also affect human resource planning.
6. Employment: HRP is affected by the employment situation in a country. In countries
where there is greater unemployment, there may be more pressure on the government to
appoint more people. For example, public sector enterprises are highly overstaffed in
some countries, while few private enterprises are understaffed.
7. Labor market: The labor market comprises people with skills and abilities that can be
tapped when the need arises. Although in many 3rd countries with surplus labor, there is
a shortage of skilled people. We should take measures to make more skilled workers
available in the country.
When one talks about labor supply, the following deserve due consideration: the size, age,
gender, and educational composition of the population, the demand for goods and services in the
country, the nature of production technology, and the employability of the people.
Internal Factor
1. Company Policies and Strategies: The organisation’s policies and strategies are related to
expansion, diversification, etc., determines the human resource demand in terms of
quantity and quality. If the organization has a plan for organic growth then organization
need to hire additional employees. On the other hand If the organization is going for
mergers and acquisition, then organization need to plan for layoffs, as mergers can create,
duplicate or overlap positions that can be handled more efficiently with fewer employees.
2. Human Resource Policies: Human resource policies of the company are about the quality
of human resources, compensation level, quality of working conditions, etc., influence
human resource planning.
3. Company’s Production and Operational Policy: Company’s policies regarding how much
to produce and how much to purchase from outside for manufacturing the final product
influences the number and kind of people required.
4. Trade Unions: In case it is declared by the unions that they will not work for more than 8
hours in a day, it affects the human resource planning. Therefore, influence of trade
unions regarding the number of working hours per week, recruitment sources, etc., affect
human resource planning and is to be kept under consideration.
5. Organisational Growth Cycles: At the starting stage, the organisation is small as such it is
but natural that need of employees is usually smaller, however by the passage of time as
the organisation enters the growth phase more young people need to be hired. Likewise,
in the declining/recession/downturn phase human resource planning is done to retrench
the employees. The stage of growth in which an organization is determines the nature and
extends of HRP. Small organizations in the earlier stages of growth may not have well
defined personnel planning. But as the organization enters the growth stage they feel the
need to plan its human resource. At this stage organization gives emphasis upon
employee development. But as the organization reaches the mature stage it experience
less flexibility and variability resulting in low growth rate. HR planning becomes more
formalized and less flexible and less innovative and problem like retirement and possible
retrenchment dominate planning. During the declining stage of the organization HRP
takes a different focus like planning to do the layoff, retrenchment and retirement. In
declining situation planning always becomes reactive in nature towards the financial and
sales distress faced by the company.
6. Time Horizon: HR plans can be short term or long term. Short term plans spans
from six months to one year, while long term plans spread over three to twenty years.
The extent of time period depends upon the degree of uncertainty that is prevailing in an
organizations environment. Greater the uncertainty, shorter the plan time horizon and vice
versa.

7. Type and Quality of information: The information used to forecast personnel needs
originates from a multitude of sources. The forecast depends to a large extent upon the
type of information and the quality of data that is available to personnel planners. The
quality and accuracy of information depend upon the clarity with which the
 organizational decision makers have defined their strategy, structure, budgets, production
schedule and so on.

8. Job Analysis: Job analysis means detailed study of the job involving the skills needed for
a particular job. Human resource planning is based on job analysis which determines the
kind of employees to be procured.
9. Outsourcing: Several organizations outsource part of their work to outside parties in the
form of subcontract. Outsourcing is a regular feature both in the public sector as well as
in the private sector companies. Many of the organizations have surplus labour and hence
instead of hiring more people they go for outsourcing. Outsourcing is usually done for
non critical activities. Outsourcing of non- critical activities through subcontracting
determines HRP.

HRP Process
HRP effectively involves forecasting personnel needs, assessing personnel supply and
matching demand – supply factors through personnel related programmes. The HR
planning process is influenced by overall organizational objectives and environment of
business.
Environmental Scanning:
It refers to the systematic monitoring of the external forces influencing the organization. The
following forces are essential for pertinent HRP.
 Economic factors, including general and regional conditions.
 Technological changes
 Demographic changes including age, composition and literacy,
 Political and legislative issues, including laws and administrative rulings
 Social concerns, including child care, educational facilities and priorities.
By scanning the environment for changes that will affect an organization, managers can
anticipate their impact and make adjustments early.
Organizational Objectives and Policies:
HR plan is usually derived from the organizational objectives. Specific requirements in terms of
number and characteristics of employees should be derived from organizational objectives.
Once the organizational objectives are specified, communicated and understood by all
concerned, the HR department must specify its objective with regard to HR utilization in the
organization.
HR Demand Forecast:
Demand forecasting is the process of estimating the future quantity and quality of people
required to meet the future needs of the organization. Annual budget and long-term corporate
plan when translated into activity into activity form the basis for HR forecast.
Demand forecasting is influenced by both internal factors and external factors: external factors
include competition, economic climate, laws and regulatory bodies, changes in technology and
social factors whereas internal factors are budget constraints, production level, new products and
services, organizational structure and employee separations.
Demand forecasting is essential because it helps the organization to
1. Quantify the jobs, necessary for producing a given number of goods,
2. To determine the nature of staff mix required in the future,
3. To assess appropriate levels in different parts of organization so as to avoid
unnecessary costs to the organization,
4. To prevent shortages of personnel where and when, they are needed by the
organization.
5. To monitor compliances with legal requirements with regard to reservation of jobs.
Demand Forcasting Techniques like
Executive or Managerial Judgment: – Here the managers decide the number of employees in the
future. They adopt one of the three approaches mentioned below: -
o Bottom-Up approach: – Here the concerned supervisors send their proposals to the top
officials who compare these with the organizational plans, make necessary adjustments
and finalize them.
o Top-Down approach: – Here the management prepares the requirements and sends the
information downwards to the supervisory –level who finalizes the draft and approves it.
o Participative Approach: – Here the supervisors and the management sit together and
projections are made after joint consultations.

Trend Analysis: It means studying variations in your firm’s employment levels over the last few years to predict future needs. The purpose is to identify trends
that might continue into the future. Trend analysis can provide an initial estimate, but employment levels rarely depend just on the passage of time.

Other factors (like changes in sales volume and productivity) also affect staffing needs.

Statistical Techniques: – These methods use statistical methods and mathematical techniques to
forecast and predict the supply and demand of Human Resources in the future.
Ratio-Trend analysis: – In this method depending on the past data regarding number of
employees in each department, like production department, sales department, marketing
department and workload level, etc ratios for manpower are estimated. Past values are plotted
and extrapolated to get fairly accurate future projections.
Work Study method: – This technique is suitable to study the correlation between volume of
work and labor i.e. demand for human resources is estimated based on the workload. Work study
method is more appropriate for repetitive and manual jobs when it is possible to measure work
and set standards.
Planned Operations during 2003 =1,60,000 Units
Std Man-hours needed to perform each unit in 2003 = 0.25
Planned man-hours needed/year in 2003 = 40,000
Work ability per employee in man-hours in the year 2003 = 2,000
Number of employees required in 2003 is = 40,000/20,000 = 20

Delphi Technique: – Delphi’ Technique is named after the Greek Oracle at the city of Delphi. In
this method, the views of different experts related to the industry are taken into consideration and
then a consensus about the Human Resource requirement is arrived at. Delphi technique is used
primarily to assess long-term needs of human resource.
In a conventional Delphi technique, a small group designs questionnaire about the problem under
study which is sent to various experts related to the field. These experts will fill up the
questionnaire independently without having any interaction among themselves.

Delphi technique can be used for forecasting human resource needs in two forms:

Firstly, it can be used to know the trends for changing job profile and consequently, the changing personnel profile across the country or at international
level.

Secondly, this technique can be used to solicit views of experts in different functional areas of an organisation about the changing profile of personnel in
their respective departments in the light of changing environment.

Scatter Plot: It is a graphical method used to help identify the relationship b/w two variables. variables for instance. Say, measure of business activity and your
firm’s staffing levels – are related.

● A scatter plot describes a positive trend if, as one set of values increases, the other set tends to increase.
● A scatter plot describes a negative trend if, as one set of values increases, the other set tends to decrease.
● A scatter plot shows no trend if the ordered pairs show no correlation.
HR Supply Forecast:
Supply forecast determines whether the HR department will be able to procure the required
number of workers. Supply forecast measures the number of people likely to be available from
within and outside an organization, after making allowance for absenteeism, internal movements
and promotions, wastage and changes in hours, and other conditions of work.
The reasons for supply forecast are:
 ● Helps quantify number of people and positions expected to be available in future.
● Helps clarify likely staff mixes that will exist in the future.
● Assess existing staffing levels in different parts of the organization.
● Prevents shortage of people where and when they are most needed.
● Monitors expected future compliance with legal requirements of job reservation.
The supply analysis includes:
● Existing human resources,
● Internal sources of supply: It includes estimation of future losses due to
retirements, ill health, death, absenteeism, layoffs, employee turnover etc..
o Inflows and Outflows
o Conditions of work and absenteeism
o Productivity level
o Succession planning.
● External sources of supply.

Forecasting Internal Labor Supply

Staffing Tables
Graphic representations of the number of employees currently occupying certain jobs
and future (monthly or yearly) employment requirements.
Markov Analysis
A method for tracking the pattern of employee promotions up through and organization.

Skill Inventories
Databases of employee KSA’s, education, and used to match job openings with
employee backgrounds.
Succession Planning
 The process of identifying, developing, and tracking key individuals for executive
positions.
Listings of current jobholders and persons who are potential replacements if an
opening occurs.
HR Programming:
Once an organization’s personnel demand and supply are forecasted the demand and supply need
to be balanced in order that the vacancies can be filled by the right employees at the right time.
HR Plan Implementation:
HR implementation requires converting an HR plan into action. A series of action are initiated as
a part of HR plan implementation. Programmes such as recruitment, selection and placement,
training and development, retraining and redeployment, retention plan, succession plan etc when
clubbed together form the implementation part of the HR plan.
Control and Evaluation:
Control and evaluation represent the final phase of the HRP process. All HR plan include
budgets, targets and standards. The achievement of the organization will be evaluated and
monitored against the plan.
During this final phase organization will be evaluating on the number of people employed
against the established (both those who are in the post and those who are in pipe line) and on the
number recruited against the recruitment targets. Evaluation is also done with respect to
employment cost against the budget and wastage accrued so that corrective action can be taken
in future.

Requisites for Successful HRP

1. HRP must be recognized as an integral part of corporate planning
2. Support of top management is essential
3. There should be some centralization with respect to HRP responsibilities in order to
have co-ordination between different levels of management.
4. Organization records must be complete, up to date and readily available.
5. Techniques used for HR planning should be those best suited to the data available and
degree of accuracy required.
6. Data collection, analysis, techniques of planning and the plan themselves need to be
constantly revised and improved in the light of experience.
Job Analysis
Job analysis is the procedure through which you determine the duties and nature of the jobs and
the kinds of people (in terms of skills and experience) who should be hired for them.’ It provides
you with data on job requirements, which are then used for developing job descriptions (what the
job entails) and job specifications (what kind of people to hire for the job)
Information provided by Job Analysis Job analysis provides the following information :
1. Job Identification : Its title, including its code number;
2. Significant Characteristics of a Job : It location, physical setting, supervision, union
jurisdiction, hazards and discomforts;
3. What the Typical Worker Does : Specific operation and tasks that make up an
assignment, their relative timing and importance, their simplicity, routine or complexity,
the responsibility or safety of others for property, funds, confidence and trust;
4. Which Materials and Equipment a Worker Uses : Metals, plastics, grains, yarns,
milling machines, punch presses and micrometers;
5. How a Job is Performed : Nature of operation - lifting, handling, cleaning, washing,
feeding, removing, drilling, driving, setting-up and many others;
6. Required Personal Attributes : Experience, training, apprenticeship, physical strength,
co-ordination or dexterity, physical demands, mental capabilities, aptitudes, social skills;
7. Job Relationship : Experience required, opportunities for advancement, patterns of
promotions, essential co-operation, direction, or leadership from and for a job.
Methods for Collecting Job Analysis Data
Job information is collected through the following methods:
1. Participant Diary/Logs: Workers can be to keep participant diary/long or lists of things
they do during the day. For every activity he or she engages in, the employee records the
activity (along with the time) in a log. This can provide you with a very comprehensive
picture of the job, especially when it’s supplemented with subsequent interviews with the
worker and his or her supervisor. This method provides more accurate information if
done faithfully. However, it is quite time consuming. Further, each job holder may
maintain records according to his own way which presents problems in analysis at later
stage. Therefore, it has limited application.
2. Interview: There are three types of interviews you can use to collect job analysis data:
individual interviews with each employee; group interviews with groups of employees
having the same job; and supervisor interviews with one or more supervisors who are
thoroughly knowledgeable about the job being analyzed. The group interview is used
when a large number of employees are performing similar or identical work, since this
can be a quick and inexpensive way of learning about the job.
 3. Critical Incidents: In this method, job holders are asked to describe incidents
concerning the job on the basis of their past experience. The incidents so collected are
analyzed and classified according to the job areas they describe, A fairly picture of actual
job requirements can be obtained by distinguishing between effective and ineffective
behaviors of workers on the job. However, this method is time consuming. The analyst
requires a high degree of skill to analyze the contents of descriptions given by workers.
4. Technical Conference Method: This method utilizes supervisors with extensive
knowledge of the job. Here, specific characteristics of a job are obtained from the
“experts.” Although it is a good data gathering method, it often overlooks the incumbent
worker’s perception about what they do on their job.
5. Job Performance: Under this method, the job analyst actually performs the job under
study to get first-hand experience of the actual tasks, and physical and social demands of
the job. This method can be used only for jobs where skill requirements are low and can
be learnt quickly and easily. This is a time consuming method and is not appropriate for
jobs requiring extensive training.
6. Functional Job Analysis: Functional job analysis (FJA) is employee- oriented
analytical approach of job analysis. This approach attempts to describe the whole person
on the job. The main features of FJA include the following:
 The extent to which specific instruction are necessary to perform the task
 The extent to which reasoning and judgment are required to perform the task
 The mathematical ability required to perform the task and
 The verbal and language facilities required to perform the task.
7. Observation Method: Using this method, a job analyst watches employees directly on
the job. Observations are made on various tasks, activities, the pace at which tasks are
carried out, and the way different activities are performed. This method is suitable for
jobs that involve manual, standardized, and short job cycle activities. This method also
requires that the entire range of activities be observable; possible with some jobs.
8. Questionnaires: The method is usually employed by engineering consultants. Properly
drafted questionnaires are sent out to job-holders for completion and are returned to
supervisors. However, the information received is often unorganized and incoherent. The
idea in issuing questionnaire is to elicit the necessary information from job –holders so
that any error may first be discussed with the employee and, after corrections, may be
submitted to the job analyst. This technique is time consuming and generally does not
yield satisfactory results because many employees do not complete the questionnaire or
furnish incorrect information because of their own limitations.
Job Description
Job description is the immediate product of job analysis process; the data collected through job
analysis provides a basis for job description and job specification.
Job Description: is a written record of the duties, responsibilities and requirements of a particular
job. It is concerned with the job itself and not with the job holders. It is a statement describing
the job in such terms as its title, location, duties, working conditions and hazards.
Flippo has Defined Job Description as, “A job description is an organized, factual statement of
duties and responsibilities of a specific job. In brief, it should tell what is to be done. How it is
done why. It is a standard of function, in that defines the appropriate and authorized content of a
job.
A job description contains the following:
1. Job identification, which includes the job title, alternative title, department, division, plant and
code number of the job. The job title identifies and designates the job properly. The department
division, etc. indicate the name of the department where it is situated-whether it is the
maintenance department, mechanical shop etc. The location gives the name of the place.
2. Job Summary serves two important purposes. First it provides a short definition which is
useful as an additional identification information when a job title is not adequate. Second, it
serves as a summary to orient the reader toward an understanding ‗of detailed information which
follows. It gives the reader a ―quick capsule explanation‖ of the content of a job usually in one
or two sentences.
3. Job duties give us a comprehensive listing or the duties together with some indication of the
frequency of occurrence or percentage of time devoted to each major duty. It is regarded as the
heart of a job.
4. Relation to other jobs : This helps us to locate the job in the organisation by indicating the job
immediately below or above it in the job hierarchy. It also gives us an idea of the vertical
relationships of work flow and procedures.
5. Supervision : Under it is given the number of persons to be supervised along with their job
titles, and the extent of supervision involved – general, intermediate or close supervision.
6. Working conditions usually give us information about the environment in which a job holder
must work. These include cold, heat, dust, wetness, moisture, fumes, odour, oily conditions, etc.
obtaining inside the organisation.

JOB SPECIFICATION
Job Specification is a standard of personnel and designates the qualities required for an
acceptable performance. It is a written record of the requirements sought in an individual worker
for a given job. In other words, it refers to a summary of the personal characteristics required for
a job. It is a statement of the minimum acceptable human qualities necessary for the proper
performance of a job.
A Job Specification should include:
(i) Physical characteristics, which include health, strength, endurance, age, height, weight,
vision, voice, eye, hand and foot co-ordination, motor co-ordination, and colour discrimination.
(ii) Psychological and social characteristics such as emotional stability, flexibility, decision
making ability, analytical view, mental ability, pleasing manners, initiative, conversational ability
etc.
(iii) Mental Characteristics such as general intelligence, memory, judgement, ability to
concentrate,
foresight etc.
(iv) Personal Characteristics such as sex, education, family background, job experience, hobbies,
extracurricular activities etc.
JOB EVALUATION
JE deals with money and work. It determines the relative worth or money value of jobs.

WENDELL.L.FRENCH “ a process of determining the relative worth of the various jobs within the organization, so that differential wages may be paid to jobs
of different worth”.

British Institute of Management “ the process of analyzing and assessing the contents of jobs, in order to place them in an acceptable rank order which can then
be used as a basis for a remuneration system. JE is a technique designed to assist in the development of new pay structures by defining relativity between jobs on
a consistent and systematic basis.