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23 views53 pages

Module 2

Uploaded by

Yashi panda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2023

NIST Institute of Science and Technology (Auto)

HUMAN
RESOURCE
MANAGEMENT
(22 MBA 103)

Instructor
Dr. Amarnath Padhi
[email protected]
2023

Module -2: HRM Planning (HRP)


NIST Institute of Science and Technology (Auto)

 HRP-meaning, importance and process

 Demand and supply forecasting

 Factors affecting HRP

 Selection Process- screening

 Job analysis- process and methods.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 2
2023
HRP: Meaning, importance and process

 Human Resource (workforce or employment or personnel) planning is the process


of deciding what positions the firm will have to fill, and how to fill them.
NIST Institute of Science and Technology (Auto)

 Its aim is to identify and address the gaps between the employer’s workforce
today, and its projected workforce needs in order to carry out organisational
activities.

 A process by which an organisation should move from its current manpower


position to its desired manpower position ( E.W. Vetter)

 HRP is concerned with two things: Planning of manpower requirements and


planning of manpower supplies (Gordon McBeath)

 HRP is a process of determining and assuming that the organization will have an
adequate number of qualified persons, available at proper times, performing jobs
which meet the needs of the organisation and which provides satisfaction for the
individuals involved (Beach)

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 3
2023

 Simply, HRP can be understood as the process of forecasting an organization’s


future demands for and supply of the right type of people in the right number. In
other words HRP is the process of determining manpower needs and formulating
plans to meet these needs.
NIST Institute of Science and Technology (Auto)

 HRP is a sub system in the total organizational planning, is the process of analyzing
and identifying the availability and the need for human resources so that the
organization can meet its objectives.
 HRP is a FOUR phased process:
1. 1st Phase: involves the gathering and analysis of data through manpower
inventories and forecasts;

2. 2nd Phase: consists of establishing manpower objectives and policies and


gaining top management support;

3. 3rd Phase: involves designing and implementing plans and promotions to


enable the organization to achieve its manpower objectives;

4. 4th Phase: Concerns with control and evaluation of manpower plans to


facilitate progress to benefit both the organisation and individual.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 4
2023

Organizational Objectives
NIST Institute of Science and Technology (Auto)

Human Resource
Planning
Forecasting supply of
Forecasting Human
human resources
Needs

Identification of Human
Resource Gap

Shortage of Human
Surplus human
resources
resource
Action Plan for bridging
gap

Fig: Human Resource Planning


12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 5
2023

Objectives of HRP:

 To ensure optimum utilization of human resources currently available in the


organization.
NIST Institute of Science and Technology (Auto)

 To assess or forecast the future skill requirement of the organization.

 To provide control measures to ensure that necessary resources are available as


and when required.

 To link manpower planning with the organizational planning.

 To determine recruitment levels.

 To determine optimum training levels

 To provide a basis for management development programs.

 To cost the manpower.

 To recruit and retain the human resources of required quantity and quality.

 To foresee the employee turnover and make the arrangements for minimizing the
same.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 6
2023

 To foresee the impact of technology on work - existing employees and future


human resource requirements.

 To improve the standards, skill, knowledge, ability, discipline, etc.


NIST Institute of Science and Technology (Auto)

 To minimize imbalances caused due to non-availibility of human resources of the


right kind, right number in right time and right place (strategic).

 To minimize the chances of making a bad decision.

 To identify potential problems

 To understand the present in order to confront the future

 To make explicit decisions which would allow later challenge.

 To communicate plans so as to obtain support/adherence to them.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 7
Importance of HRP
2023

 Human resource planning evaluates and even modifies organization's strategic plan.

 It provides the clear picture of human resource supply from various sources and enable
the organisation to recruit the prospective employees from the most suitable source.
NIST Institute of Science and Technology (Auto)

 The rapid change in technology, marketing, production, business processes and


management practices due to globalization and information technology demand ever
changing skills on the part of human resources.

 The demographic changes like changing profile of workforce, (in terms of age, sex,
education, etc.) and changes in govt.policies (in respect of reservations, child labour,
working conditions, etc.) affect the demand for and supply of human resources.

 Similar changes in labour laws, pressure from trade unions, political parties influence the
demand and supply of human resources.

 HRP predicts these changes and make necessary arrangements in meeting human
resource requirements.

Thus, human resource plan plays an important role in having right man in right
time in the process of achieving organisational strategies and objectives.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 8
Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi
12/27/2023 12:12 AM 9
Process of HRP
2023

Consists of the following steps:

 Analyzing the corporate, unit and functional level strategies.

 Demand Forecasting: Forecasting the overall human resources requirements in


NIST Institute of Science and Technology (Auto)

accordance with the organisational plans.

 Supply Forecasting: Obtaining the data and information about the present

inventory of human resources and forecast the future changes.

 Estimate the net human resource requirements.

 Plan for recruitment, development and internal mobility if future supply is more

than or equal to net human resource requirements.

 Plan to modify or adjust the organisational plan if future supply will be inadequate

with reference to future net requirements.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 10
Adjust or modify strategies 10
2023
Analyzing corporate, Control and Review
unit and functional Mechanisms
level strategies 1

2 3 4

Demand Forecast- Supply forecast Net human resource


NIST Institute of Science and Technology (Auto)

Resource present inventory requirements for


requirements (skill, human resources + future ( skill, value,
knowledge wise, etc) additional losses knowledge, etc.)
9

Forecast the future


supply of human
resource in all sources
5 7 if supply is inadequate
Surplus of future Shortage of future
available human available human
resource within the resource within the
organisation organisation
6 8

Redeployment Retrenchment Outsourcing Employment T&D Internal mobility

Reduced Work Leave of absence without pay VRS Golden Hand Shake
hours sharing
12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 11
2023
Demand and Supply Forecasting

 In manpower literature, one finds it's difficult to differentiate between the


words demand, need, requirements, projections, and 'forecasts'. Some use
NIST Institute of Science and Technology (Auto)

these terms as synonymous while others use them in distinct senses.

 Demand: is a schedule of relationships between quantities of that particular


category of manpower demanded and a series of possible wage rates
(economists' angle)

 Need: refers to the number of people required to provide an ideal level of


service.

 Requirements: are the functional composition of employment that will be


necessary to produce goods and services within a specified timeframe to
achieve social, cultural; economic and technological targets.

 Projections/Predict: the outcome which is expected in the normal course of


events and in the absence of external stimulus (data).
12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 12
2023
Demand and Supply Forecasting

 Forecasts, refer to a prediction of the outcome when normal course of events are
influenced by external forces. Forecasts usually take into account both the
NIST Institute of Science and Technology (Auto)

projections and the estimates.

 Types of Manpower Forecasting

1. Short Term Forecasts

2. Medium-Term Forecasts

3. Long-Term Forecasts

4. Policy Conditional Forecasts

5. Optimizing Forecasts

6. Macro and Micro Forecasts

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 13
2023

Demand Forecasting:

 The process of estimating the future numbers of people required and the likely

skills and competences they will need (right quality and right number).
NIST Institute of Science and Technology (Auto)

 Human resource requirement is to be estimated keeping in view the organization's

plans over a given period of time.

 Analysis of employment trends; replacement needs of employees due to death,

resignations, retirement, termination; productivity of employees; growth and

expansion of organization; absenteeism and labour turnover are the relevant

factors for human resourced forecasting.

 At a more practical level, forecasting demand involves determining the numbers

and kinds of personnel that an organization will need at some point in the future.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 14
2023

Techniques of Demand Forecasting:


1. Quantitative methods of demand forecasting : Quantitative methods rely on statistical
and mathematical assessment. Following are main methods of quantitative demand
forecasting:
NIST Institute of Science and Technology (Auto)

 Ratio Analysis
 Benchmarking/Thumb rule:
 Scatter Plot
 Trend Analysis
 Computerized Forecast
 Work Study
2. Qualitative methods of demand forecasting
 Managerial Judgment
 Bottom up approach
 Top-down approach
 Delphi Technique
 Zero based forecasting

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 15
2023

 Ratio Analysis:
Ratio analysis is the process of determining future Human Resource demand of
an organisation by calculating an exact ratio between the specific business factor
and the number of employees needed. So, Ratio analysis is a forecasting
NIST Institute of Science and Technology (Auto)

technique that assumes a set relationship between one variable and another, and
that the relationship allows for the prediction of workforce needs.

Example:

HR is forecasting demand for the clothing department of a retail department


store. Gross sales revenues for the past year were Rs. 75,000 and the clothing
department currently employs 05 full-time employees; the ratio is 75,000:5 or
15,000:1. This means that for every Rs.15,000 in gross sales, the department
needs 01 employee. If sales are expected to rise by Rs. 30,000 in the coming
year, the department will need to hire 02 full-time employees.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 16
2023

 Benchmarking/Thumb rule:

Benchmarking is a measurement of the quality of an organization's policies,


products, programs, strategies, etc., and their comparison with standard
measurements, or similar measurements of its competitors, in order to try to
NIST Institute of Science and Technology (Auto)

improve its own performance .


Objectives:

- To determine what and where improvements are called for?

- To analyze how other organizations achieve their high performance levels.

Example: the international benchmark for HR is 1:100 in an automated


environment, which indicates one HR employee can support and service 100
employees. Therefore if the employee strength is 5,000, 50 HR employees will
be needed. These benchmarks are useful when forecasting has to be done in
large volumes for a new business.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 17
2023
 Scatter Plot:
- Scatter plot is a graphical method used to help identify the relationship between two
variables- such as sales and a firm’s staffing levels. Scatter plots show how much one
variable is affected by another. By using scatter plot organization can forecast the
NIST Institute of Science and Technology (Auto)

needs of human resource against the business activity. For example, a measure of
business activity and business staffing levels - are related, then if company forecast the
measure of business activity, company should be able to forecast their HR requirements
.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 18
2023

 Trend Analysis:
Trend analysis means studying historical organizational employment levels to predict
future employment levels. For example: If, on average, employment levels in the
organization have increase 5% per year, it might be logical to forecast a 5%
NIST Institute of Science and Technology (Auto)

increase for the next planning period. Trend analysis assumes that history will
repeat itself. The trend analysis provides both data describing how trends such as
turnover will affect the workforce and is a key element in the overall planning
process.

Trend data is not limited to turnover data. It also may include the following:
- Hiring and retirement patterns; Years of service; New-hire retention rate;
Transfers; Promotions.
For example- In a manufacturing plant in 2022-23 they were producing 10000
unit of product “X” with the help of 100 workers. Now they planned to expand the
production to 15000 unit of “X” product in 2023 -24 year. We can calculate by
trend that number of workers required would be 150. So they need to hire 50 more
workers.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 19
2023

 Computerized Forecast

A computerized forecast refers to the use of computer systems and software to

predict or estimate future trends, outcomes, or values based on historical data


NIST Institute of Science and Technology (Auto)

and mathematical models. This process involves different algorithms to analyze

large datasets and make predictions more efficiently than traditional manual

methods.( HRIS data)

For example- the requirements for sales officers would depend on the trend of

sales in different markets; the number of product introduced; the difference in the

products (whether one salesman sell both products?) and customers for the

product.

The computer program enables the manager to enter all these variables to generate

the resource requirement that is required to meet the business objectives.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 20
2023

 Work study Technique:


- Work study is a set of techniques used for analyzing work methods and establishing
standard times for performing a particular task. The primary goal of work study is to
improve work methods and processes, increase efficiency, and optimize the use of
NIST Institute of Science and Technology (Auto)

resources. This information is translated into number of man-hours required to


produce per units taking into consideration the capability of the workforce.

For example-
The estimated production of an organisation is 3,00,000 units. The standard man-hours required to
produce each unit are 2 hours. The past experiences show that the work ability of each employee in
man-hours is 1500 hours per annum. The work-load and demand of human resources can be
calculated as under:
1. Estimated total annual production = 300000 units
2. Standard man-hours needed to produce each unit = 2 hrs
3. Estimated man-hours needed to meet estimated annual production (i x ii) i.e., 300000*2=600000 hrs
4. Work ability/contribution per employee in terms of man-hour = 1500 units
5. Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units
The above example clearly shows that 400 workers are needed for the year

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 21
2023

2. Qualitative methods of demand forecasting


Qualitative forecasts use managerial judgment on a more individual basis, spotting needs
internally and then bidding for or training the requisite skills. Following are the main
qualitative techniques used in forecasting demand of human resource:
NIST Institute of Science and Technology (Auto)

 Managerial Judgment

 Delphi Technique

 Zero based forecasting

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 22
2023

 Managerial Judgment
- Managerial judgment is a type of brainstorming that involves a meeting of
managers who gather to diagnose and predict the future job market.
NIST Institute of Science and Technology (Auto)

Determine
- These can generally be either top-down or bottom-up:

- Bottom-up approach: under this approach line mangers sends their departmental
requirement of human resources to top management.

- Top-down approach: under this approach there is minimum involvement of line


managers in the forecasting process. Responsibility for forecasting is taken by the
top management. This method is more time efficient and business driven.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 23
2023

 Delphi Technique
consent
A structured communication method used to reach a consensus or forecast future
developments. It was developed in the 1950s by the RAND Corporation for systematic,
interactive forecasting.
NIST Institute of Science and Technology (Auto)

Delphi Technique typically works:


1. Selection of Experts:

– A group of experts, often individuals with relevant knowledge and experience in a


specific field, is chosen.

2. Questionnaire Design:

– A facilitator or a panel of experts designs a series of questionnaires related to the


topic under consideration. These questions can be open-ended or closed-ended.

3. Round 1: Individual Responses:

– Experts independently and anonymously respond to the initial set of questions. They
may provide explanations or justifications for their answers.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 24
2023

4. Compilation of Responses:

– The facilitator collects and compiles the responses, summarizing the range of
opinions without revealing individual contributors.
NIST Institute of Science and Technology (Auto)

5. Round 2: Group Feedback:

– Experts receive a summary of the group's responses from the previous round.
They are then invited to revise their opinions based on the collective input.

6. Repeat Iterations:

– Steps 3 to 5 are repeated through multiple rounds until a consensus is reached


or the responses stabilize within an acceptable range.

• Conclusion:

– The final results are presented, often showing the range of opinions and
the areas where experts reached consensus's process used to arrive at a
group opinion.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 25
2023

 Zero based forecasting


- Under this technique, the organization's use current level of employment as the
starting point for determining future staffing needs.

- Managers need to build a budget for their manpower requirement as if no baseline


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existed.

- Resources are not necessarily allocated in accordance with previous patterns.

- The main emphasis is on the analysis of human resource needs.

- Zero based forecasting requires line managers to justify the need to continue with
the positions or jobs that fall vacant in their department.

- The degree of cost reduction.

- It’s a strategic issue for managers.

- Too complex process.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 26
2023

Supply Forecasting:

 Human Resource supply forecasting is the process of estimating availability of


human resource followed after demand for testing of human resource. For
forecasting supply of human resource organisation need to consider internal and
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external supply.

Techniques of forecasting supply of human resource


 Markov Analysis

 Replacement charts

 Staffing Tables

 Wastage Analysis

 Succession Planning

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 27
2023

 Markov Analysis

- In hierarchical systems, every employee elevates him/herself in the


organisation through a well defined career path.
NIST Institute of Science and Technology (Auto)

- All employees start in an organisation at the bottom rung and climb


up the ladder.

- At the organizational level, Markov analysis may be applied to


describe and forecast the process of human resource flows or
movements within, into, and out of the organization.

- The basic assumption of this model is that an employee in a


particular grade or a status group has a fixed chance of promotion in
a given year (independent of vacancy.)

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 28
2023
 The transition probabilities are typically derived from historical data on the
movements of employees between jobs, as well as exit moves from the
organization. A very useful method of analyzing and forecasting internal
movements.
NIST Institute of Science and Technology (Auto)

A
Grades

C
0-5 5-15 15+

Length of services in years


12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 29
2023

2021-2023 Program Assistant Shift Team CSRs Exit


Manager Manager supervisor Leader
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Program 90% 10%


Manager
(n=12) 11 1
Assistant 11% 83% 6%
Manager
(n=36) 4 30 2
Shift 11% 66% 8% 15%
Supervisor
(n=96) 11 63 8 14
Team 10% 72% 2% 16%
Leader
(n=282) 28 207 1 46
CSRs 6% 74% 20%
(n=1440)
86 1066 288
Forecasted 15 41 91 301 1067 351
Supply

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 30
2023

For example: Figure (below) shows hypothetical flow of people in a call center.
- In 2023the number of people in different jobs is given in the first column.
- There are 12 program manager, 36 assistant manager, 96 supervisors, 288
team leaders and 1440 customer service representative (CSRs).
NIST Institute of Science and Technology (Auto)

How these people make a transition in the next year is given in the subsequent
columns.
- The figures in percentage represent the transition i.e., the percentage of
people who will make a transition into that job in the coming year.
- For example, 74 per cent of the total number of CSRs (1440) will stay in their
current job, i.e., 1066 CSRs will continue. About 6 % (of 1,440), i.e., 86 would
get promoted to team leaders and 20 % would exit the system, i.e., 288 will be
separated.
Thus, Markov analysis shows the percentage of employees who remain in each job from
one year to the next as well as the numbers that get promoted, transferred or exit from
the organization.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 31
2023

 Replacement Charts

- Replacement charts are a forecasting technique used in succession planning


to help companies visualize key job roles, current employees and existing and
future vacancies.
NIST Institute of Science and Technology (Auto)

- Positions are mapped alongside information such as potential replacements,


gender and promotion potential.

Replacement charts classify employees into four groups:

1.Employees ready for promotion


2. Employees who would be ready for future promotions if given additional training

3.Employees performing satisfactorily but needs motivation and further improvements

4. Employees who are not fit to be on employment and need to be replaced.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 32
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Example: Executive Replacement Chart
Key
---------
MANAGER A: Promotable Now
-------------------- B. Needing development
Rahul ( A/1) C. Not fitted to position
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1. Superior Performance
Asst. MANAGER (1) 2. Above average performance
-------------------- 3. Acceptable performance
Aman ( B/2) Dy. MANAGER (2) 4. Poor Performance
--------------------
Dipesh ( A/2)
Ankur (B/3)

Divisional HR Manager Unit HR MANAGER Planning MANAGER


-------------------- -------------------- --------------------
Anurag ( A/2) Rohitya ( A/1) Umesh ( B/2)
Ashok (B/4) Vivek (C/4) Tarak(B/3)

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 33
2023

 Staffing Tables

- Staffing table is the graphical arrangement of the jobs in the organization

along with the number of employees currently working on this position as


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well as it shows the details of future vacancy on each job.

- It shows the number of employees in each job.

- It tries to classify employees on the basis of age, gender, position, category,

experience, qualifications, skills, etc.

- A study of the table indicates whether current employees are properly

utilized or not.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 34
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Function Hours/Week Primary Relative Estimated Notes/


Person Importance costs Remarks
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[Ex. Marketing; Low-high Who is the person Of task to (Rs./year) for this
Office responsible for organization: function.
Management; this function C=Critical to [Note: this should
Fundraising; now? [B=Board mission; include
Outreach; Member; I=Important; salary/wage
communications V=volunteer; OS=Organization benefits (if any),
; etc.] C=Paid al Support office space,
Consultant; operating money,
S=Staff; N=No etc.]
one]
Manager

Executive

Dy. Manager

AVP

VP

Director

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 35
2023

 Wastage Analysis

- Labour wastage should be taken into account while making future forecast
and find out the reasons of people leaving the organisation.
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- Action can be taken to arrest the labour wastage and replacement of


uncontrollable losses.

- For measuring permanent total loss due to labour the following labour
turnover formula is used.

Labour Turnover Rate = Number of Employees left specified period (say one year)
X 100
Average Number of Employees during the same period

- This method of estimating is termed as the British Institute of Management


(BIM) index which expresses wastage as a percentage of staff position

- HR Managers have to calculate the rate of labour turnover, conduct exit


interviews. This helps them forecast, the rate of potential loss, causes of
loss etc.

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 36
2023

 Succession Planning

- Succession planning is the process of identifying very important positions in the


organization and creating a talent pipeline, by preparing employees to fill
vacancies in their organization. (to identify and prepare suitable employees to fill key
NIST Institute of Science and Technology (Auto)

positions when current employees leave their jobs. )

- A successor is an employee with the knowledge, skills, and abilities to fill a vacant
position until a permanent replacement can be identified.

- The matrix below will help you visualize how to identify positions in need of
succession planning.
Inability
No successor position identified for this position

Low Moderate High


Criticality
Impact of
the
High Moderate High High
position
Risk Risk Risk
on the
mission
Moderate Low Moderate High
Risk Risk Risk

Low Low Low Moderate


Risk Risk Risk

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 37
2023
Factors affecting HRP Determinants of HRP

External Factors Internal Factors


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Policies and Strategies


Government Policies

Formal and Informal groups


Economic Development

Job Analysis
Business Environment
Time Horizons
Level of Technology
Type and Quality of
Information
International Factors
Trade Unions

12/27/2023 12:12 AM Class- 2023 | HRM (22 MBA 103) | Module 2 | Dr. Amarnath Padhi 38
2023

 There are several factors that affect HRP. These factors can be classified into external
factors and internal factors
 External Factors:
- Government Policies: Policies of the government like labour policy,
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industrial relations policy, policy towards reserving certain jobs for different
communities and sons-of-the soils, etc. affect the HRP.
- Level of Economic Development: It determines the level of HRD in the country
and thereby the supply of human resources in future in the country.
- Business Environment: External business environmental factors influences
the volume and mix of production and thereby the future demand for human
resources.
- Level of Technology: Level of technology determines the kind of human
resources required.
- International Factors: : International factors like the demand for the resources
and supply of human resources in various countries.

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2023

 Internal Factors:

- Company Policies and Strategies: Company’s policies and strategies relating


to expansion, diversification, alliances, etc. determines the human resource
demand in terms of quality and quantity.
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- Human Resource Policies: Human resources policies of the company


regarding quality of human resource, compensation level, quality of work-
life, etc.

- Job Analysis: Fundamentally, human resource plan is based on job analysis,


job description and job specification determines the kind of employees
required.

- Time Horizons: Companies with stable competitive environment can plan


for the long run and short-term range.

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2023
Selection Process: Screening

Recruitment:
 it is a process of searching for and obtaining applicants for jobs so that the right
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people in right number can be selected.


 A process of searching for prospective employees and stimulating and encouraging
them to apply for jobs in an organisation (Flippo).
 It is the process of locating, identifying, and attracting capable applicants.
(Bergmann and Taylor)
 Recruitment Process: It comprises five steps
- Recruitment Planning
- Strategy Development
- Searching
- Screening
-Evaluation and Control

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2023
Determinants of Selection

Internal Sources External Sources


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Advertisements
Present Employees

Campus Recruitment
Employee Referrals

Deputation
Former Employees
Employment Exchanges

Previous Applicants
Professional Associations

Employment Agencies

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Selection:
 The success of any recruitment process depends on the three-way function of personnel
management which consists of screening, interviews and selection
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 The success or failure of any organisation therefore depends to a large extent on how
these three-way functions of personnel management are handled.

 Screening is the process of picking individuals who have relevant qualifications to fill
jobs in an organization.

 It is also opined that screening of candidates requires writing of aptitude test, screening
of academic credentials, computer based test, literacy test, aptitude test, and practical
tests on concern skills.

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Selection
2023

 Some view screening as the starting point of selection.


Some consider it as an integral part of recruitment.

Applications are screened against the qualification, knowledge, skills, abilities, interest and
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experience mentioned in the job specification.

 The selection process starts only after the applications have been screened and shortlisted.

Personnel Job Employee


Planning Analysis Requisition

To selection
Job Recruitment Searching
Vacancies Applicant Potential
Planning Activation Screening
Hires
Pool
( Numbers “Executive”
and types)

Strategy Evaluation
Applicant and Control
Development
(Where, how, Population
when)

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Sourcing and Recruiting Selecting Onboarding

Applies for job by responding Background


Take Tests and
to filter questions and check and
Applicant is interviewed
submitting resume medical checkup
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Identifies Performs
Posts positions
minimally preliminary Job offer
and sources
qualified candidate accepted
recruits
candidates assessment
HR
Department

Conducts job
Identify
analysis if
finalists
needed

Determines
Secures job Interviews Job offer
Hiring need for
requisition finalists made
Manager position

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2023
Job Analysis/Design: Process and Methods

Definitions:

 Job analysis is the process of getting information about jobs: specially, what the worker
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does; how he gets it done; why he does it; skill, education and training required;

relationship to other jobs, physical demands; environmental conditions. Job analysis is

the process used to identify these requirements ( Jones).

 Job analysis is used to identify the behaviors and characteristics (necessary to

perform) to be measured by the assessment centre.

 There are two major aspects of Job analysis- These are:

1. Job Description

2. Job Specification

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2023
JOB ANALYSIS
The procedure for determining the duties and skill requirements of a
job and the kind of person who should be hired for it.
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JOB DESCRIPTIONS JOB SPECIFICATIONS


A list of a job’s
1. Duties A list of a job’s “human
2. Responsibilities requirements”,
3. Reporting that is, the requisite
relationships education, skills,
4. Working conditions, and personality, and so on.
5. Supervisory responsibilities

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2023

Methods

1. Interview Method:

Managers may conduct individual interviews with each employee, group


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interviews with groups of employees who have the same job, and/or supervisor

interviews with one or more supervisors who know the job. This method also

helps to know the feelings of employees towards their job and responsibilities.

2. Observation Method:

In this method an analyst carefully observes the worker doing the job and records

all his/her performed tasks, responsibilities, duties, methods, ability to handle

challenges,etc.

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2023

3. Questionnaire:

A good questionnaire must cover all job related aspects and provide
effective and complete information related to the job. (Structured Questions).
Having employees fill out questionnaires to describe their job duties and
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responsibilities is another good way to obtain job analysis information

4. Critical Incident:

The analyst ask job holders about their past experience related to the job.
The incident so collected is analyzed and classified according to the job
areas they describe. This method requires high degree of skills to analyze
the content of the description given by the job holder.

5. Checklist Method:

The checklist method of job data collection is almost similar to the


questionnaire method, whereas it has an answer in the for YES or NO and the
job holder is asked to tick the appropriate.

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2023

6. Conference Method:

In this method, a conference is conducted and various experts and


supervisors are invited who possess great knowledge about a job and
discussion among them provides details information about the job.
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7. Participant Diary/Logs:

In this method, the job holders or personnel department maintains a


detailed record of the activities, facts and figures related to the job holder.
Daily listings made by workers of every activity in which they engage along
with the time each activity takes.

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2023
The process

 There are six steps in doing a job analysis of a job:

Step 1:
Decide how you will use the information
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Step 2:
Review relevant background information about the Job

Step 3:
Select representative positions
JOB ANALYSIS
Step 4:
Analyze the job

Step 5:
Verify the job analysis information
(with his /her immediate supervisor)

Step 6:
Develop a job description and job specification

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Tips to writing a good Job Description
2023

Be sure to include the pertinent information:


:: Title
:: Department
:: Reports to
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:: Duties and responsibilities


:: Terms of employment
:: Qualifications needed
 Think of the job description as a snapshot of the job.
 Communicate clearly and concisely.
 Make sure the job description is interesting to the right candidate applying for the
job.
 Avoid acronyms.
 Don’t try to fit all job aspects into the job description.
 Proofread the job description.

Example: Title
• What are the job specifications?
• Are the physical demands mentioned?
• Is the job description task based or competency based?

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2023
NIST Institute of Science and Technology (Auto)

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