Unit 2

Manpower Planning
HUMAN RESOURCE PLANNING
• HRP is essentially the process of getting the right number of qualified
people into the right job at the right time.

• Dessler (2012): Human Resource Planning is the process of deciding

what positions the firm will have to fill, and how to fill them.
Process of Human Resource Planning
• Forecasting the Demand for Human Resources
• Forecasting the Supply of Human Resources
• Formulating HR Plans
Forecasting the Demand for Human Resources

• The demand for talented people with appropriate qualifications, skills

and experience are influenced by Three factors:
• External Factors -Economic, political, legal, social and technical factors
• Organizational Factors – Strategic plans, sales, production, new ventures etc
• Workforce Factors- retirement, terminations, resignations, death etc
Demand Forecasting Techniques

• Judgemental Methods
• Bottom-up forecasting
• Top-down forecasting
• Delphi technique

• Mathematical techniques
• Trend analysis
• Computer Models
• Qualitative and Quantitative aspects
• Workforce and workload analysis, and Job analysis
Forecasting Supply of Human Resources
• Internal labour supply analysis- look inside the organization to fill
vacancies
• External labour supply analysis- look outside the organization to fill
vacancies
Formulating HR plans
• Recruitment plan- recruit right people
• Redeployment plan- transfer to new job
• Redundancy plan- Retrench or layoff redundant people
• Training plan- number of trainees/ apprentices, existing staff training
• Productivity plan- how to increase productivity (incentives,
mechanization, job redesigning, profit sharing schemes)
• Retention plan- identify reasons for employ turnover, compensation
policies.
RECRUITMENT
Definition:
Recruiting is the process by which organizations locate and attract
individuals to fill job vacancies.- Fisher(2010)
Features
• Locating and attracting talent
• Linking process
• Positive process of building talent pool
• Vital function
Process
1. Identify the required numbers and the sources of supply
2. Publicize job details
3. Encouraging prospective job seekers to apply in large numbers
4. Evaluating recruiting effort
Sources of Recruitment
• Internal
• Persons who are already working in an organization constitute the ‘internal
sources’.
• Even the retrenched, retired or dependents of deceased employees are
considered internal sources.
• Whenever ant vacancy arises, someone from within the organization is
upgraded, transferred, promoted or even demoted.
• External
• Employees working in other organization
• Job aspirants registered in employment exchanges
• Candidate referred by employees
• Candidates by search firm and contractors
• Candidates by advertisements
• Candidates by Walk-ins
Sources of Recruitment
• Internal
• Promotions
• Transfer
• Job Posting
• Referrals from internal employees
• External
• Campus recruitment – (Merits and Demerits)
• Advertisements
• Employment search firms
• Employment exchanges
• Gate hiring
• Contractors
• Unsolicited applicants
• Internet recruiting
SELECTION
• Selection is the process of picking individuals possessing relevant
qualifications, requisite knowledge and required experience.

• Fisher(2011) The selection process involves assessing the applicants

to decide who will be hired.
Recruitment vs Selection
Basis Recruitment Selection
Meaning Encourage qualified people to apply Choose the most suitable candidate
for vacant post
Purpose Create large talent pool Choose the right candidate
Nature Encourage large number of qualified job Prevents the entry of unsuitable
seekers to apply candidate for job openings.
Recruiter’s Just an invitation to prospective Results in a contract of service
Obligation jobseekers. No agreement.
Steps in Selection Process
1. Reception
2. Screening interview
3. Application blank
4. Employment / Selection test
5. Selection Interview
6. Medical Examination
7. Reference Check
8. Hiring Decision
Few of the Employment / Selection test
are
Intelligence test , Aptitude test, Personality test, Achievement test,
Simulation test, Polygraph (lie-detector) test, Integrity test
Selection Interview
Interview gives the recruiter an opportunity to
1. Size up the interviewee’s agreeableness
2. Ask questions that are not covered in tests
3. Obtain as much as pertinent information as possible
4. Assess subjective aspects of the candidate – facial expressions,
appearance, nervousness etc
5. Make judgements on interviewee’s enthusiasm and intelligence
6. Give facts to the candidate regarding the company, its policies,
programmes etc and promote goodwill towards the company.
Types of Interview
• Non-directive interview – No guidelines or predetermined questions , interview
goes as per the answers given by the candidate.
• Directive or Structured interview – Strict guidelines and predetermined questions
are asked to all candidates to judge their answers in comparison to other
candidates.
• Situational interview – A situation is given and checked how the candidate enacts
or respond to the hypothetical situation.
• Behavioral interview – Past behavioral actions or certain role already carried out
by the candidate is judged.
• Stress interview – Interviewers create stress, to check how the candidate handles
stress.
• Group discussion interview – Group discussion of the candidates is conducted
• Panel or Board interview – A panel of 6 to 8 people or experts take the interview
The Interview Process
1. Preparation – before the start of the interview like location, time,
informing candidates etc
2. Reception – making arrangement for candidates for waiting area,
verification etc
3. Information exchange – Questions like about yourself, education,
qualification, experiences, situational, behavioral etc
4. Termination – The end of interview, maintain a positive image of the
company – don’t pass any judgemental statements for hiring or
rejection.
5. Evaluation – All the panel members evaluate and select appropriate
candidates.
JOB ANALYSIS
• JOB: A collection of tasks, duties and responsibilities.
• Job Analysis is a systematic and detailed examination of jobs. It deals
with two things:
• What a job holder is supposed to do (Job requirements/ Job Description)
• What skills and competencies are needed to perform a job. (Worker
requirement / Job Specificaiton)

It is a procedure for determining the duties and skills requirements of a

job and the kind of person who should be hired for it. – Dessler 2010
Job Analysis – Who, When and Which Job?
• Who? – Supervisors, Job incumbents and External Analysts.
• When?
• Establishment of organization
• New job created
• Job undergo radical transformation like new technologies, methods,
procedures or systems.
• Which Jobs?
• Critical to success of an organization
• Difficult to learn and perform
• New hires are recruited regularly
• Job created for disabled etc
• Carried out differently due to new technologies
• Completely new job
• Jobs are eliminated and the duties are distributed to other jobs.
Benefits of Job Analysis
• Human resource planning
• Recruitment
• Selection
• Placement and orientation
• Training
• Counselling
• Employee safety
• Performance appraisal
• Job design and redesign
• Job evaluation
Process of Job Analysis
1. Organizational analysis
2. Selection of representative positions to be analyzed
3. Collection of Job analysis data
4. Preparation of Job description
5. Preparation of Job specification
Methods of Collecting Job Analysis Data
• Job Performance
• Personal Observation
• Critical Incidents
• Interview
• Panel of experts
• Diary Method
• Questionnaire method
Job Description
• Job Description is a written statement of what the job holder does,
how it is done, under what conditions it is done and why it is done.
• Job content, Environment and Conditions of Employment

Job Description covers the following

✔ Job Title
✔ Job Summary
✔ Job Activities
✔ Working conditions
✔ Social Environment
• Problems with Job Description
• Not easy to generate a precise and clear document.
• Sometimes not updated as job duties change
• Limit scope of activities
Job Specification
• Job Specification summarizes the human characteristics needed for
satisfactory job completion. It describes the key qualifications
someone need to perform the job successfully.
• Education
• Experience
• SKAs
• Job specification is classified as
• Essential attributes: Skills, knowledge and Abilities
• Desirable attributes: Qualifications
• Contra-indicators: attributes that will handicap successful job performance.
JOB EVALUATION
Dessler 2010
Job evaluation is aimed at determining a job’s relative worth. It is a
formal and systematic comparison of jobs to determine the worth of
one relative to another.
Features of Job Evaluation
• Assess job not people
• Standards are relative not absolute
• Basic information is based on Job Analysis
• Carried by groups not by individuals
• Carries degree of subjectivity
• Cannot fix pay scales, but provide basis for evaluating a rational wage
structure.
Process of Job Evaluation by Halls
1. Gaining Acceptance
2. Creating job evaluation committee
3. Finding jobs to be evaluated
4. Analysing and preparing job description
5. Selecting the method of evaluation
6. Classifying jobs
7. Installing the new programmes
8. Reviewing periodically
Benefits of Job Evaluation
1. Link pay with requirements of job
2. Systematic procedure for determining the relative worth of jobs.
3. Equitable wage structure
4. Employees and Union also participate in JE committee
5. Evaluation of new jobs
6. Points out possibility of appropriate use of labour force.
Job Evaluation Methods

• Ranking
• Job Classification
• Factor Comparison
• Point Method

Video Link
https://www.youtube.com/watch?v=oxHeZrhSIgc
Ranking Method

• Jobs are arranged from highest to lowest, in order of their value or

merit to the organization.
• Jobs are examined as whole.
• Simple to understand and practice
• Best suited in small organizations
• Ranking is subjective so it may offend many employees.
Classification Method

• This method places groups of jobs into predetermined job class or job grades.
Eg. Government - Class I, Class II etc
• Less subjective
• Easy to understand and acceptable
• Takes in to account all the factors that a job comprises.
• Effectively used for a variety of job.
• WEAKNESS:
• Different requirement job in single category.
• Difficult to write all-inclusive descriptions of grade.
• Oversimplifies sharp differences between different jobs and grades
• Use of subjective judgement when job description and grade description don’t match.
Factor Comparison Method

• Instead of ranking complete jobs, Each job is ranked according to

various factors.
• Select Job
• Determine job factors like skills, responsibilities, working condition, efforts etc
• These factors are ranked according to importance and money value
determined for each factor.
• Add all cumulative factors
Point Method
• Widely used
• Jobs expressed in terms of key factors
• Points assigned to each factor after prioritising them.
• Points are summed to determine the wage rate.
• Jobs with similar point totals are placed in similar pay grades.
• Procedure
• Select key jobs
• Divide each major factor into a number of sub-factors
• Find the maximum number of points assigned to each job
• Total points are converted into money values keeping in view hourly / daily
wage rates.
Merits and Demerits of Point Method

Merits
• Superior and widely used
• Considers key and sub factors of job
• Reliable
• Ratings scales remain same for future use.
Demerits
• Complex
• Time consuming process
• Managerial jobs are difficult to put in quantifiable numbers
Limitations of Job Evaluation
• Not exactly scientific
• A particular way or method of doing work is difficult to understand
• Factors considered are not exhaustive.
• Wide fluctuation in compensable factors in view of technology, values
etc
• Difficult to assign weightage to different factors – different level of
people thus subjective and conflicts occur