HRM UNIT 2

HUMAN RESOURCE PLANNING

JOB ANALYSIS & JOB DESIGN
RECRUITMENT AND SELECTION
EMPLOYMENT INTERVIEWS
HUMAN RESOURCE PLANNING
 Human Resource Planning (HRP) is the process of forecasting
the future human resource requirements of the organization
and determining as to how the existing human resource
capacity of the organization can be utilized to fulfill these
requirements. It, thus, focuses on the basic economic concept
of demand and supply in context to the human resource capacity
of the organization.
 It is the HRP process which helps the management of the
organization in meeting the future demand of human resource in
the organization with the supply of the appropriate people in
appropriate numbers at the appropriate time and place. Further,
it is only after proper analysis of the HR requirements can the
process of recruitment and selection be initiated by the
management. Also, HRP is essential in successfully achieving the
strategies and objectives of organization. In fact, with the
element of strategies and long term objectives of the
organization being widely associated with human resource
planning these days, HR Planning has now became Strategic HR
Planning.
MANPOWER PLANNING

FUTURE
MANPOWER
POSITION

CURRENT
MANPOWER
POSITION
HRP

 Human Resource Planning could be

expressed as a process by which the
management ensures the right number of
people and right kind of people, at the
right place , at the right time doing the
right things for which they are recruited
and placed for the achievement of goals
of the organization.
 SHORTAGE OF PEOPLE OR SURPLUS OF
PEOPLE
Objectives of HRP

 Ensure optimum use of human resources currently

employed
 Avoid imbalances in the distribution and allocation of
human resources
 Assess or forecast future skill requirements of the
organization's overall objectives
 Provide control measure to ensure availability of
necessary resources when required
 Control the aspect of human resources
 FORMULATE RECRUITMENT/ SELECTON/ TRAINING
POLICIES
 Formulate transfer and promotion policies
Nature & Scope of HRP

It present an inventory of existing man power of the

organisation. Analysis of this resource helps in
ascertaining the status of the available personnel and to
discover untapped talent presently available with the
organisation.
Helps in determining the short fall or surplus of the resource
by comparing the total resource needs with the present
supply. It also helps in projecting future HR needs.
Concerned with the initiation of various organisation
programmes depending upon the demand and supply of
human resources
Designing training programme for different categories of
human resource.
Need for HRP

 HRP helps in effective recruitment and selections.

 HRP also facilitates designing of training programmes
for the employees to develop the required skills in
them.
 HRP provides lead time for procuring personnel as the
lead time given is a time- consuming process
Benefits of HRP

 HRP results in reduced labour costs as it helps the

management to anticipate shortages and or surpluses oF
HR, and correct these imbalances before they become
unmanageable and expensive.
 HRP is the scientific way for planning employee
development that is designed to make optimum use of
workers’ skills within the organization.
 HRP enables identification of the gaps of the existing
HRs so that corrective training could be imparted.
 HRP leads of improvement in the overall “Business
Planning” process.
 HRP helps in formulating managerial succession plan as
a part of there placement planning process.
 HRP leads to a greater awareness of the importance of
sound manpower management through out the
organization
 HRP serves as a tool to evaluate the effect of
alternative manpower actions and policies.
 HRP PROCESS

 Current HR Supply: Assessment of the current human resource

availability in the organization is the foremost step in HR Planning. It
includes a comprehensive study of the human resource strength of
the organization in terms of numbers, skills, talents, competencies,
qualifications, experience, age, tenures, performance ratings,
designations, grades, compensations, benefits, etc. At this stage, the
consultants may conduct extensive interviews with the managers to
understand the critical HR issues they face and workforce capabilities
they consider basic or crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of
the business is the second step in HR Planning. All the known HR
variables like attrition, lay-offs, foreseeable vacancies, retirements,
promotions, pre-set transfers, etc. are taken into consideration while
determining future HR demand. Further, certain unknown workforce
variables like competitive factors, resignations, abrupt transfers or
dismissals are also included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with
the future demand of HR, and create a demand forecast. Here, it is
also essential to understand the business strategy and objectives in
the long run so that the workforce demand forecast is such that it
is aligned to the organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the gaps
in the HR supply and demand, the HR Consulting Firm develops
plans to meet these gaps as per the demand forecast created by
them. This may include conducting communication programs with
employees, relocation, talent acquisition, recruitment and
outsourcing, talent management, training and coaching, and
revision of policies. The plans are, then, implemented taking into
confidence the mangers so as to make the process of execution
smooth and efficient. Here, it is important to note that all the
regulatory and legal compliances are being followed by the
consultants to prevent any untoward situation coming from the
employees.
HRP process

 The process of HRP involves the following steps:

 Determination of HRP objectives of HR planning
 Current HR inventory
 Demand Forecasting
 Supply forecasting
 Estimating manpower gaps
 Action planning
 Monitoring and control
HR plans need to be based on
Organizational Objectives
 The role of HRP is to subserve the overall objectives by ensuring
availability and utilization of Human Resources.
 In developing these objectives, specific policies need to be
formulated to address the following questions:
 Are vacancies to be filled from promotions from within or
hiring from outside?
 How do training and development objectives interfere with the
HRP objectives?
 What union constraints are encountered in HRP and what
policies are needed to handle these constraints?
 How to enrich employees job? Should the routine and boring
jobs continue or be eliminated?
 How to downsize the organization to make it more competitive?
Demand forecasting

 Demand forecasting is the process of estimating the

future quantity and quality of people required. The basis
of the forecast must be the annual budget and long-term
corporate plan, translated into activity levels for each
function and department
 Demand forecasting must consider several factors both
internal and external.
 Among external factors are competition(foreign and
domestic), economic climate, laws and regulatory
bodies, changes in technology and social factors.
 Internal factors include budget constraints, production
levels, new products and services, organizational
structure and employee separation.
 Demand forecasting helps to : Quantify the jobs
necessary for producing a given number of goods
 Prevent shortage of people where and when they are
needed most
 Determine what staff-mix is desirable in the future
 Monitor compliance with legal requirements with
regard to reservation of jobs
 Assess appropriate staffing levels in different parts of
the organization so as to avoid unnecessary costs
TECHNIQUES OF DEMAND
FORECASTING
 Managerial judgement
 Ratio-trend analysis
 Work study techniques
 Delphi technique
 mathematical techniques
MANAGERIAL JUDGEMENT

 In this all managers sit together, discuss and arrive at

a figure which would be the future demand for
labour. This technique may involve a ‘bottom-up’ or
‘top-down’ approach. A combination of both could
yield positive results.
 This is the quickest forecasting technique. This
technique involves studying past ratios, say, between
the number of workers and sales in an organization
and forecasting future ratios, making some allowance
for changes in the organization or its method.
RATIO-TREND ANALYSIS

 RATIO ANALYSIS , MEANS MAKING

FORECASTS BASED ON THE RATIO
BETWEEN.
 SOME FACTORS (LIKE SALES VOLUME,
PRODUCTION LEVEL, ACTIVITY LEVEL )
 THE NUMBER OF EMPLOYEES REQUIRED
WORK STUDY METHOD

 Work study techniques can be used when it is possible to

apply work measurement to calculate the length of
operations and the amount of labour required.
 (a) Planned annual production = 2, 00,000 units
 (b) Standard man-hours required for each unit = 2 Hours
 (c) Planned man-hour needed for the year (a x b) = 4,
00,000 hrs.
 (d) Planned annual contribution of an employee = 2000
hrs.
 (e) No. of employees required —(c/d) = 4, 00,000/2000 =
200
 This method is useful for long term forecasting
Delphi technique

 This technique is the method of forecasting personnel

needs.
 • It solicits estimates of personnel needs from a group
of experts, usually managers.
 • The HRP experts act as intermediaries, summarize the
various responses and report the findings back to the
experts.
 • Summaries and surveys are repeated until the experts
opinion begin to agree.
MATHEMATICAL TECHNIQUES

 Regression Analysis
 Regression analysis identifies the movement of two or more inter-
related series. It is used to measure the changes in a variable as a
result of changes in other variables. Regression analysis determines
the relationship between Y variables such as the number of
employees and X variables such as service delivery by actually
measuring the relationship that existed in the past. Use of the
method begins with a series of observation each costing of a value
for the Y variable plus a value for each X variable.
 Econometric Models
 Econometric models for estimation of manpower requirement
differ from the statistical methods. Past statistical data are
analyzed in the hope that it will prove possible to describe
precisely the relationships between a number of variables in
mathematical and statistical terms.
Supply forecasting

 Supply forecasting measures the no of people likely to

be available from within and outside an organisation,
after making allowance for absenteeism, internal
movements and promotions, wastage and changes in
hours and other conditions of work.
EXPECTED LOSS OF MANPOWER

 RESIGNATIONS
 DEATHS
 PROMOTION
 TRANSFER
 DEMOTION
 ILL HEALTH
 INJURY
 ABSENTISM
 MARRIAGE
 PREGNANCY
 DEPUTATION
 MARKOV CHAIN ANALYSIS Internal sources of supply of
manpower. internal movement of HR due transfer
promotion within the org,on the basis of past record.
 Skill inventories – info about non-managers.
 1. Personal data
 2. Skills
 3. Special qualifications
 4. Salary and job history
 5. Company data
 6. Capacity of individual
 7. Special preference of individual
 Management inventories
 1. Work history
 2. Strengths
 3. Weakness
 4. Promotion potential
 5. Career goals
 6. Personal data
 7. Number and types of employees supervised
 8. Total budget managed
 9. Previous management duties.
ACTION PLANNING

 After personal demand and supply are forecast the

vacancies should be filled at right time with right
employees.
 Converting HR plan into action. Action programmes are..
 Recruitment
 Selection & placement
 Training and development
 Retraining & redeployment
 The retention plan
 The redundance plan
 The succession planning
Monitoring and control

 It covers no. of trainees required It necessary for

existing staff
 Identification of resource personal for conducting
development programmes
 Frequency of training and development programmes
 Budget allocation
 Retraining and redeployment: New skill should be
imported to existing employee
 Retention plan
 Compensation plan
 Performance appraisal
JOB ANALYSIS
 Job analysis is a SYSTEMATIC process of determining which
characteristics are necessary for satisfactory job performance
and analyzing the environmental conditions in which the job is
performed.
 Job Analysis is a primary tool to collect job-related data. The
process results in collecting and recording two data sets including
job description and job specification. Any job vacancy cannot be
filled until and unless HR manager has these two sets of data. It is
necessary to define them accurately in order to fit the right
person at the right place and at the right time. This helps both
employer and employee understand what exactly needs to be
delivered and how.
 Both job description and job specification are essential parts of
job analysis information. Writing them clearly and accurately helps
organization and workers cope with many challenges while
onboard.
Significance of Job Analysis:
 Job analysis is a vital tool in taking a variety of human resource
decisions. It is used to design and execute a number of human
resource management activities and programs. They are
described here:
 1. Manpower Planning: job analysis helps in forecasting
manpower requirements based on the knowledge and skills and
quality of manpower needed in organization.
 2. Recruitment: A carefully designed job analysis provides
information as to what sources of recruitment are to be used to
hire employees. For example, job analysis in a retail stores
about merchandise sorters tells that village level schools are
potential source of recruitment.
 3. Selection: Selection of the right candidate to the right job
can only be done with the help of job analysis. In the case of
retail stores, a billing assistant can be selected with the
knowledge of accounting, cash, and computer operations. This
is possible with the help of job analysis.
 4. Training and Career Development: Job analysis provides
valuable information to develop training programs. It
provides information about what skills are to be trained. It
also provides information about various techniques to be used
in career development of employees.
 5. Placement and socialization: After people are selected and
trained, they must be placed in suitable jobs. Job analysis
provides information about the suitability of jobs. A clear job
analysis guides the process to socialize the employees to
develop sound relationships with all those persons.
 6. Compensation: Job analysis provides information as to how
much compensation and other financial and non-financial
benefits to be associated with each job.
 7. Employee Safety and Welfare: Job analysis details
information on working conditions. Thus, management tries
to provide safety and welfare measures that are outlined in
job analysis.
 8. Performance Appraisal: Performance of employees is
appraised based on standard criteria provided in the job
analysis.
 9. Counselling: A good job analysis provides information to
the superiors about the jobs. They use this information to
guide and counsel employees about their career options,
performance, training requirements and skill up-gradation
 JOB
DESCRIPTION

JOB
ANALYSIS
JOB
SPECIPICATION
JOB DESCRIPTION
ABOUT THE JOB
 Job description includes basic job-related data that is useful to
advertise a specific job and attract a pool of talent. It includes
information such as job title, job location, reporting to and of
employees, job summary, nature and objectives of a job, tasks and
duties to be performed, working conditions, machines, tools and
equipments to be used by a prospective worker and hazards involved
in it.
 Purpose of Job Description
 The main purpose of job description is to collect job-related data in
order to advertise for a particular job. It helps in attracting,
targeting, recruiting and selecting the right candidate for the right
job.
 It is done to determine what needs to be delivered in a particular
job. It clarifies what employees are supposed to do if selected for
that particular job opening.
 It gives recruiting staff a clear view what kind of candidate is
required by a particular department or division to perform a specific
task or job.
 It also clarifies who will report to whom.
JOB SPECIFICATION
ABOUT THE JOB HOLDER
 JOB SPECIFICATION
 Also known as employee specifications, a job specification is a written
statement of educational qualifications, specific qualities, level of experience,
physical, emotional, technical and communication skills required to perform a
job, responsibilities involved in a job and other unusual sensory demands. It also
includes general health, mental health, intelligence, aptitude, memory,
judgment, leadership skills, emotional ability, adaptability, flexibility, values
and ethics, manners and creativity, etc.
 Purpose of Job Specification
 Described on the basis of job description, job specification helps candidates
analyze whether are eligible to apply for a particular job vacancy or not.
 It helps recruiting team of an organization understand what level of
qualifications, qualities and set of characteristics should be present in a
candidate to make him or her eligible for the job opening.
 Job Specification gives detailed information about any job including job
responsibilities, desired technical and physical skills, conversational ability and
much more.
 It helps in selecting the most appropriate candidate for a particular job.
 Job description Job specification
Meaning a concise written The statement
statement, which explains the
explaining about minimum
what are the eligibility
major requirements, for
requirements of a performing a
particular job. particular job
lists Job title, duties, qualification, skills
tasks and and abilities.
responsibilities
involved in a job.
expresses It expresses what a expresses what an
prospective applicant must
employee must do possess for getting
when he will get selected.
the placement
about The job The job holder
JOB DESIGN-USE OF JOB
ANALYSIS
 Job design is next to job analysis. Job design involves
systematic attempts to organize tasks,
 duties and responsibilities into a unit of work to achieve
certain objectives.
 Job design integrates the work content and
qualifications required for each job that meets the
needs of employee and the organization.
 Job design makes the job highly specialized and well
designed jobs are important in attracting and retaining
a motivated work force
Job Design is affected by three
categories of factors:
Organizational Factors: The organizational factors that affect job design
are characteristics of task, work flow, ergonomics and work practices.
 ● Characteristic of task: Each task consists of 3 elements, namely,
planning, executing and controlling. Job design involves the
assembly of a number of tasks into a job or a group of jobs. A job may
require an employee to perform a variety of connected task. All
these characteristics of jobs are taken into consideration for job
design.
 ● Workflow: The flow of work in an organization is strongly
influenced by the nature of the product. This product usually
suggests the sequence and balance between jobs if the work is to be
completed efficiently.
 ● Ergonomics: Ergonomics is concerned with the designing and
shaping of jobs as per the physical abilities and characteristics of
individuals so that they can perform their jobs effectively.
 ● Work Practices: Work practices are the set methods of performing
work. This can affect the job design as there is little flexibility in
designing the job especially if the work practices are approved by
employee unions.
 Environmental factors include employee abilities &
availability and Social & Cultural expectations.
 ● Employee Abilities & Availability: Abilities and
availability of people plays an important role while
designing jobs. Due attention needs to be given to the
employee who will actually perform the job.
 ● Social And Cultural Expectations: Jobs should be
designed keeping the employees in mind. Due to
increase in literacy rate and knowledge, employees are
now more aware and only perform jobs that are to their
liking and match their profile.
 Behavioral Factors: Behavioral factors are related to
human needs and they need to be satisfied properly.
Behavioral elements include the following:
 ● Feedback: Employee should be given proper feedback
about his job performance. This will enable the employee
to improve his performance and complete the job in a
proper manner.
 ● Autonomy: Employee should be given proper autonomy
required to perform the work. The absence of autonomy
may lead to poor performance on the part of employees.
 ● Use of Abilities: The job should be designed in such a
manner that an employee will be able to use his abilities
fully and perform the job effectively.
METHODS OF JOB DESIGN

 Job Simplification: In the job simplification technique,

the job is simplified or specialized. A given job is
divided into small sub-parts and each part is assigned to
one individual employee.
 Job simplification is introduced when job designers feel
that the jobs are not specialized enough.
Job Rotation:
Job rotation implies
systematic movement of
employees from one job
to the other. Job
remains unchanged but
employees performing
them shift from one job
to the other.
BENEFITS
DEMERITS
Job enlargement

 Job enlargement means increasing the scope of a job

through extending the range of its job duties and
responsibilities generally within the same level and
periphery. Job enlargement involves combining various
activities at the same level in the organization and
adding them to the existing job. It is also called the
horizontal expansion of job activities. This contradicts
the principles of specialization and the division of
labour whereby work is divided into small units, each of
which is performed repetitively by an individual worker
and the responsibilities are always clear.
JOB ENRICHMENT
 Job Enrichment, a job design technique that varies the concept of job
enlargement. Job enrichment adds new sources of job satisfaction by
increasing the level of responsibility of the employee in organization.
 While job enlargement is considered as horizontal restructuring
method, job enrichment is considered as vertical restructuring
method of moral excellence of giving the employee additional
authority, autonomy, and control over the way the job is
accomplished. Also called job enhancement or vertical job
expansion.
 is an attempt to motivate employees by giving them the opportunity to
use the range of their abilities. It is an idea that was developed by the
American psychologist Frederick Hertzberg in the 1950s. It can be
contrasted to job enlargement which simply increases the number of
tasks without changing the challenge. As such job enrichment has been
described as ‘vertical loading’ of a job, while job enlargement is
‘horizontal loading’. An enriched job should ideally contain:
 A range of tasks and challenges of varying difficulties (Physical or
Mental)
 A complete unit of work – a meaningful task
 Feedback, encouragement and communication