NORTH CIRCLE ACADEMY, INC.

Tubon, Pigcawayan, North Cotabato

MODULE IN
MNGT 1
(Human Resource Management)
 CONTENTS

1.1 Definition Of Human Resource Management

1.2 Nature Of Human Resource Management

1.3 Functions Of Human Resource Management

- Managerial And Operative Functions

1.4 Role Of Human Resource Management

2.1 Objectives

2.2 Introduction

2.3 Human Resource Planning (HRP)

2.4 Definition of Human Resource Planning

2.5 Nature of HRP

2.6 Objectives of Human Resource Planning

2.7 Need for HRP in Organizations

2.8 Importance of HRP

2.9 Factors Affecting HRP

2.10 HRP Process

2.11 Requisites for Successful HRP

2.12 Barriers to Human HRP

2.13 Job Analysis

Human Resource Management

Human beings are social beings and hardly ever live in isolation. We always plan, develop and
manage our relations both consciously and unconsciously. The relations are the outcome of our
actions and depend to a great extent upon our ability to manage our actions. From childhood each
and every individual acquire knowledge and experience on understanding others and how to behave
in each and every situations in life. Later, we carry forward this learning and understanding in carrying
and managing relations at our workplace. The whole context of Human Resource Management
revolves around this core matter of managing relations at workplace.

Every organization is essentially a combination of physical and human resources (HR). Physical
resources refer to materials, money and machines pre-arranged by the organization for production or
trade. Human resources on the other hand, refer to the knowledge, education, skills, training and
proficiency of the members of the organization. If we say Human Resources, organizations are
managed by people and through people. Without people, organizations can never exist.

WHAT IS HUMAN RESOURCE MANAGEMENT (HRM)?

HRM is the study of activities involving people working in an organization. It is a managerial function
that attempts to align an organization's needs with its personnel' talents and competencies.

I. DEFINITIONS OF HRM

 Human resources management (HRM) focuses on hiring, motivating, and retaining employees.
It focuses on the individuals in organizations.
 Human resource management is the process of establishing management systems that ensure
that human talent is employed effectively and efficiently to achieve organizational goals.
 HRM is the people function responsible for the procurement, development, pay, integration,
and maintenance of an organization's personnel in order to contribute to the achievement of
the organization's goals. Thus, people management is the planning, organizing, directing, and
supervising of the performance of those operational activities (Edward B. Philippo).
 According to the Ivancevich and Glueck, "HRM is concerned with making the best use of
people to meet corporate and personal goals. It is a method of managing employees at work
so that they give their all to the organization."
 According to Dessler (2008), HRM refers to the policies and processes that govern the
"people" or human resource components of a management role, such as recruiting, screening,
training, rewarding, and assessing.
 According to Armstrong (1997), Human Resource Management can be defined as ―a
strategic approach to acquiring, developing, managing, motivating and gaining the commitment
of the organization’s key resource – the people who work in and for it.
 According to Dale Yoder ― Human resource management is considered as a system in which
individuals strive to achieve individual and group goals.
  Human resources are “a whole consisting of inter-related, inter-dependent and interacting
physiological, psychological, sociological and ethical components.”–Michael J. Jucius
 From the national point of view, human resources are knowledge, skills and attitude obtained
in the population; while for individual enterprises, they represent the total of the abilities,
knowledge and skills of its employees.” –Leon C. Megginson
 “Human resource management is concerned with the people dimension in management. Since
every organization is made up of people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring that they continue to maintain
their commitment to the organization are essential to achieving organizational objectives. This
is true, regardless of the type of organization—government, business, education, health,
recreation, or social action.” –David A. Decenzo and Stephen P. Robbins
 “Human resource management is a series of integrated decisions that form the employment
relationship; their quality contributes to the ability of the organizations and the employees to
achieve their objectives.” –George T. Milkovich and John W. Boudreau

II. NATURE OF HRM

1. HRM is built on specific concepts and practices that assist the organization in achieving its
objectives.

2. HRM is a pervasive function - This means that HRM is not limited to a single department, but rather
is a broader function that is spread throughout the business and oversees all types of
employees/people from the lowest to the highest levels of the organization.

3. HRM is people-oriented - The main focus of HRM is on people, or human resources. Human
resource management collaborates with and benefits individuals. It serves as a bridge, bringing
people and organizations together to achieve individual and organizational goals.

4. HRM is a continual activity since it must constantly teach, develop, or replace employees to keep
up with rising market competition and changes. Hence, it is a continual action.

5. HRM is part of the management function. Human resource management is responsible for issues
such as employee hiring, training, development, compensation, motivation, communication, and
administration, among others.

6. The primary goal of human resource management is to maximize the use of employees.

FUNCTIONS OF HRM

Human Resources management has an important role to play in equipping organizations to meet the
challenges of an expanding and increasingly competitive sector.

As illustrated in Figure 1.1, they perform two sets of functions, namely managerial functions and
operative functions. The managerial functions are the basic functions performed by the HR managers
in their capacity as managers or heads of their own departments. In fact, all managers, irrespective of
their departments, perform these functions. The operative functions, on the other hand, are
specialized activities performed exclusively by the HR managers, usually for all the departments.

MANAGERIAL FUNCTIONS

Functions like planning, organizing, staffing, directing and controlling constitute the core managerial
functions of an organization. The specific activities performed under each of these functions are
explained as follows:

PLANNING

It is an effective tool to deal with the future. It involves the process of predetermining the personnel
programmes that are necessary to attain the organizational goals.

In this context, accurate forecasting is vital to the success of any plan. Planning is such a crucial
function for an organization that it is the key to all other managerial functions. The steps involved in
planning are

• Establishing goals and objectives to be achieved

• Developing rules and procedures

• Determining plans and forecasting techniques

ORGANIZING

Once the plans are formulated, the next step is to organize the men and material in order to
accomplish those plans. Organizing is a process through which the firm establishes its structure and
determines the authority, responsibility and accountability of each member in relation to the job. Thus,
organizing involves

• Giving each member a specific tasks

• Establishing departments and divisions

• Delegating authority to the members

• Establishing channels of authority and communication

• Creating a system to coordinate the works of the members

STAFFING

This function deals with the creation and maintenance of human resources through employment,
compensation, benefits, training and development, and industrial relations measures. It aims to put in
place HR policies in order to deal with wage fixation, working conditions, and promotional
opportunities for prospective employees. The steps involved in the staff function are

• Determining the type of people to be hired

• Recruiting prospective employees and selecting the best ones from them

• Compensating the employees

• Training and developing the employees

• Setting performance standards and evaluating the employees’ performance

• Counselling the employees

DIRECTING

Directing is the sum of several activities like communication, leadership and motivation. Directing, as
a function, aims at securing willing cooperation from the individuals and the groups to achieve the
predetermined goals. It includes the following activities:

• Getting work done through subordinates

• Ensuring effective two-way communication for the exchange of information with the subordinates

• Motivating subordinates to strive for better performance

• Maintaining the group morale

CONTROLLING

Controlling is the process of checking the efficiency of the individuals and the groups in fulfilling the
plans and goals through follow-up measures. It is essential for continuous improvement in the
managerial activities. The processes involved in controlling are

• Establishment of standard performance

• Measurement of actual performance

• Comparison of actual performance with the standard one to find the deviation

• Initiation of corrective actions, if there are any deviations

OPERATIVE FUNCTIONS

This function is also called the operative function or HRM function. It includes, amongst others, the
processes of hiring, training, compensating, appraising and retaining employees, and attending to
their labour relations, health and safety, and equality concerns.

PROCUREMENT

Procurement refers to a series of activities undertaken by the HR managers for filling the present and
future vacancies of the organization. The activities include job analysis and designing, HR planning,
recruitment and, finally, the selection of suitable employees. HR planning involves choosing and
placing the right person at the right job and at the right time. Recruitment involves gathering a pool of
applicants from which suitable employees may be selected. Lastly, selection involves screening,
testing, interviewing and hiring the most suitable employees for the organization.

DEVELOPMENT

Development here refers to both employees’ training and management development. HR managers
are responsible for conducting and supervising training and development programmes for employees.
The purpose of a training and development programme is to increase the employees’ competencies
in their job by improving their knowledge, skills and abilities. Training and development is widely
accepted as a method for enhancing the employee skills, increasing the individual and organizational
performance, improving the employee morale, and achieving the business growth and success.

COMPENSATION

Compensation refers to the determination of the pay scale and other benefits for the employees.
Establishing and maintaining the pay system of an organization is one of the principal jobs of the HR
managers. They must devise ways to ensure fair and equitable pay rates. In addition, HR managers
should regularly manage the performance evaluation system of the organization, and continuously
design reward systems such as performance linked incentive plans and bonus and flexible work
schedules.

MAINTENANCE

The maintenance function aims at retaining efficient and experienced employees in the organization.
This calls for creative HR practices. In this regard, HR managers are responsible for offering a wide
range of HR programmes covering occupational safety, health promotion and physical fitness,
canteen facilities, recreation activities, transportation programmes, employee suggestion schemes,
career counselling and growth for creating a positive work environment.

INTEGRATION

It consists mainly of industrial relations and aims at ensuring good relations between the
management and the employees. HR managers have to implement industrial relations programmes
that would ensure ethical and fair treatment in disciplinary action, grievance redressal, and career
management processes. They should also counsel the employees and the management to prevent
and, when necessary, resolve disputes over labour agreements or other labour relation issues.
It is to be understood here that the functions of HRM can vary widely from one organization to
another, depending upon its nature, size, and objectives.

ROLE OF HRM

The role of HRM is to plan, develop and administer policies and programs designed to make optimum
use of an organizations human resources. It is that part of management which is concerned with the
people at work and with their relationship within enterprises. Its objectives are: (a) effective utilization
of human resources, (b) desirable working relationships among all members of the organizations, and
(c) maximum individual development. Human resources function as primarily administrative and
professional. HR staff focused on administering benefits and other payroll and operational functions
and didn’t think of themselves as playing a part in the firm’s overall strategy.

HR professionals have an all-encompassing role. They are required to have a thorough knowledge of
the organization and its intricacies and complexities. The ultimate goal of every HR person should be
to develop a linkage between the employee and organization because employee’s commitment to the
organization is crucial. The first and foremost role of HR personnel is to impart continuous education
to the employees about the changes and challenges facing the country in general and their
organization in particular. The employees should know about the balance sheet of the company,
sales progress, and diversification of plans, share price movements, turnover and other details about
the company. The HR professionals should impart such knowledge to all employees through small
booklets, video films and lectures.
The primary responsibilities of Human Resource managers are:

 To develop a thorough knowledge of corporate culture, plans and policies.

 To act as an internal change agent and consultant.
 To initiate change and act as an expert and facilitator.
 To actively involved in company’s strategy formulation.
 To keep communication line open between the HRD function and individuals and groups both
within and outside the organization.
 To identify and evolve HRD strategies in consonance with overall business strategy.
 To facilitate the development of various organizational teams and their working relationship
with other teams and individuals.
 To try and relate people and work so that the organization objectives are achieved efficiently
and effectively.
 To diagnose problems and determine appropriate solution particularly in the human resource
areas.
 To provide co-ordination and support services for the delivery of HRD programmes and
services.
 To evaluate the impact of an HRD intervention or to conduct research so as to identify,
develop or test how HRD In general has improved individual and organizational performance.

Different management gurus have deliberated different roles for the HR manager based on the major
responsibilities that they full fill in the organization. Few of the commonly accepted models are
enumerated below.

PAT MC LAGAN has suggested nine roles that are played by HR practitioners

1. To bring the issues and trends concerning an organization’s external and internal people to the
attention of strategic decision makers and to recommend long term strategies to support
organizational excellence and endurance.

2. To design and prepare HR systems and actions for implementation so that they can produce
maximum impact on organizational performance and development.

3. To facilitate the development and implementation of strategies for transforming one’s own
organization by pursuing values and visions.

4. To create a positive relationship with the customer’s by providing them with the best services; to
utilize the resources to the maximum and to create commitment among the people who help the
organization to meet the customers’ needs whether directly connected or indirectly connected to the
organization.

5. To identify the learning needs hence to design and develop structured learning programmes and
materials to help accelerate learning for individuals and groups.

6. To enable the individuals and groups to work in new situations and to expend \and change their
views so that people in power move from authoritarian to participative models of leadership.
7. To help employees to assess their competencies, values and goals so that they can identify, plan
and implement development plans.

8. He also assists the individual employee to add values in the workplace and to focus on the
interventions and interpersonal skills for helping people change and sustain change.

9. He assesses the HRD practices and programmes and their impact and to communicate results so
that the organization and its people accelerate their change and development.

According to DAVE ULRICH HR play’s four key roles.

1. Strategic Partner Role-turning strategy into results by building organizations that create value;

2. Change Agent Role- making change happen, and in particular, help it happen fast

3. Employees Champion Role—managing the talent or the intellectual capital within a firm

4. Administrative Role—trying to get things to happen better, faster and cheaper.

The role HR in organizations has undergone an extensive change and many organizations have
gradually oriented themselves from the traditional personnel management to a human resources
management approach.

The basic approach of HRM is to perceive the organization as a whole. Its emphasis is not only on
production and productivity but also on the quality of life. It seeks to achieve the paramount
development of human resources and the utmost possible socio-economic development.

1. Administrative Role of HR

The administrative role of HR management has been heavily oriented to administration and
recordkeeping including essential legal paperwork and policy implementation. Major changes have
happened in the administrative role of HR during the recent years. Two major shifts driving the
transformation of the administrative role are: Greater use of technology and Outsourcing.

Technology has been widely used to improve the administrative efficiency of HR and the
responsiveness of HR to employees and managers, more HR functions are becoming available
electronically or are being done on the Internet using Web-based technology. Technology is being
used in most HR activities, from employment applications and employee benefits enrollments to e-
learning using Internet-based resources.

2. Operational and Employee Advocate Role for HR

HR managers manage most HR activities in line with the strategies and operations that have been
identified by management and serves as employee “champion” for employee issues and concerns.

HR often has been viewed as the “employee advocate” in organizations. They act as the voice for
employee concerns, and spend considerable time on HR “crisis management,” dealing with employee
problems that are both work-related and not work-related. Employee advocacy helps to ensure fair
and equitable treatment for employees regardless of personal background or circumstances.

3. Strategic Role for HR

The administrative role traditionally has been the dominant role for HR. However, as Figure 1.4
indicates that a broader transformation in HR is needed so that significantly less HR time and fewer
HR staffs are used just for clerical work.

Differences between the operational and strategic roles exist in a number of HR areas. The strategic
HR role means that HR professionals are proactive in addressing business realities and focusing on
future business needs, such as strategic planning, compensation strategies, the performance of HR,
and measuring its results. However, in some organizations, HR often does not play a key role in
formulating the strategies for the organization as a whole; instead it merely carries them out through
HR activities.

The role of HR as a strategic business partner is often described as “having a seat at the table,” and
contributing to the strategic directions and success of the organization. That means HR is involved in
devising strategy in addition to implementing strategy. Part of HR’s contribution is to have financial
expertise and to produce financial results, not just to boost employee morale or administrative
efficiencies. Therefore, a significant concern for chief financial officers (CFOs) is whether HR
executives are equipped to help them to plan and meet financial requirements.

According to MCKINSEY’s 7-S framework model HR plays the role of a catalyst for the organization.
According to this framework, effective organizational change is a complex relationship between seven
S’s. HRM is a total matching process between the three Hard S’s (Strategy, Structure and
Systems) and the four Soft S’s (Style, Staff, Skills and Super-ordinate Goals). Clearly, all the S’s
have to complement each other and have to be aligned towards a single corporate vision for the
organization to be effective. It has to be realized that most of the S’s are determined directly or
indirectly by the way Human Resources are managed, and therefore, HRM must be a part of the total
business strategy.
 MODULE 2: Human Resource Planning

After studying this unit, you will be able to:

 Understand the nature and need of HRP

 Able to gain information about different factors that affect HRP

 Realize the importance of human resource planning in current organizational scenario

 Understand the HRP process and the pre requisites for successful HRP process

HUMAN RESOURCE PLANNING

First part of Human resource strategy is HRP – Human Resource Planning. All other HR activities like
employee hiring, training and development, remuneration, appraisal and labour relations are derived
from HRP.HR planning is important in a wide variety of industries and firms. HR planning affects what
employers do when recruiting, selecting, and retaining people, and of course these actions affect
organizational results and success. The challenges caused by changing economic conditions during
recent year’s show why HR workforce planning should occur.

HR planning is important in a wide variety of industries and firms. HR planning affects what
employers do when recruiting, selecting, and retaining people, and, of course these actions affect
organizational results and success. Human Resources planning mean different means to different
organizations. To some companies, human resources planning mean management development
involve helping executives to make better decisions, communicate more effectively, and know more
about the firm. The purpose of HRP is to make the manager a better equipped for facing the present
and future.

HUMAN RESOURCE PLANNING (HRP)

Human resource planning is important for helping both organizations and employees to prepare for
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.

HRP means deciding the number & type of the human resources required for each job, unit & the
total company for a particular future date in order to carry out organisational activities.

HRP or manpower planning is essentially the process of getting the right number of qualified people
into the right job at the right time. It is a system matching the supply of people(existing employees &
those to be hired or searched for) with openings the organisation expects over a time frame.

Human Resource Planning (HRP) may be defined as strategy for acquisition, utilization,
improvement and preservation of the human resources of an organization. The objective is to provide
right personnel for the right work and optimum utilization of the existing human resources. HRP exists
as a part of the planning process of business.
DEFINITION OF HUMAN RESOURCE PLANNING

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”.

According to Gordon Mc Beath, “HRP is concerned with two things: Planning of manpower
requirements and Planning of Manpower supplies”.

According to Beach, “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 enterprise and which provides satisfaction for the individuals involved”

Edwin B.Geisler “Manpower planning is the process(including forecasting, developing, implementing

& controlling) by which a firm ensures that is has the right number of people & the right kind of
people, at the right places, at the right time, doing things for which they are economically useful.

Acc. Bruce P. Coleman “Manpower planning is the process of determining manpower requirements
in order to carry out the integrated plan of the organisation”.

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.

OBJECTIVES OF HUMAN RESOURCE PLANNING

1. To ensure optimum utilization of human resources currently available in the organization.

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

3. To provide control measures to ensure that necessary resources are available as and when
required.

4. A series of specified reasons are there that attaches importance to manpower planning and
forecasting exercises.

They are elaborated below:

 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.

The HR forecasts are responsible for estimating the number of people and the jobs needed by an
organization to achieve its objectives and realize its plans in the most efficient and effective manner.

HR needs are computed by subtracting HR supplies or number of the employees available from
expected

HR demands or number of people required to produce a desired level of outcome. The objective of
HR is to provide right personnel for the right work and optimum utilization of the existing human
resources.

THE OBJECTIVES OF HUMAN RESOURCE PLANNING MAY BE SUMMARIZED AS BELOW:

Forecasting Human Resources Requirements: HRP is essential to determine the future needs of
HR in an organization. In the absence of this plan, it is very difficult to provide the right kind of people
at the right time.

Effective Management of Change: Proper planning is required to cope with changes in the
different aspects which affect the organization. These changes need continuation of allocation/
reallocation and effective utilization of HR in organization.

Realizing the Organizational Goals: In order to meet the expansion and other organizational
activities the organizational HR planning is essential.

Promoting Employees: HRP gives the feedback in the form of employee data which can be used
in decision-making in promotional opportunities to be made available for the organization.

Effective Utilization of HR: The data base will provide the useful information in identifying surplus
and deficiency in human resources. The objective of HRP is to maintain and improve the
organizational capacity to reach its goals by developing appropriate strategies that will result in the
maximum contribution of HR.

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.

9) Lead Time: The log lead time is necessary in the selection process and training and deployment of
the employee to handle new knowledge and skills successfully.

Levels of HRP

HRP is carried out at the following levels:

a. National Level: The Central Government plans for human resources at the national level. It
forecasts the demand for and supply of human resources as a whole. For example, the Government
of India specifies the objectives of HRP in successive five-year plans.

b. Sectoral Levels: Central and State Governments, formulate HRPs for different sectors. For
example, industrial sector, agricultural sector etc.

c. Industry Level: HRP for specific industries are prepared by the particular industries.

d. Unit Level: HRP for a particular department/sector of an industry is prepared at this level. It again
includes the following levels.

 Plant level;

 Department level; and

 Divisional level.

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.

1. Environmental Scanning

Environmental scanning refers to the systematic monitoring of the external forces influencing the
organisation. Managers monitor several forces but the following are pertinent for HRP.

i. Economic factors, including general & regional conditions.

ii. Technological changes, including robotics & automation

iii. Demographic changes, including age, composition & literacy.

iv. Political & legislative child care & educational facilities & priorities.

v. Social concerns, including child care & educational facilities & priorities.

By scanning the environment for changes that will affect an organization, managers can anticipate
their impact and make adjustments early.

2. Organisational objectives & Policies

HR plans need to be based on organisational objectives. In practice, this implies that objectives of the
HR plans must be derived from organisational objectives. Specific requirements in terms of number &
characteristics of employees should be derived from the organisational 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.

3. HR demand forecast

It is the process of estimating the future quantity & quality of people required. The basis of the
forecast must be the annual budget & long-term corporate plan translated into actively levels for each
function & department.

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.

Techniques like managerial judgment, ratio- trend analysis, regression analysis, work study
techniques, Delphi techniques are some of the major methods used by the organization for demand
forecasting.

4. HR supply forecast

Personnel demand analysis provides the manager with the means of estimating the number & kind of
employees that will be required. The next logical step for the management is to determine whether it
will be able to procure the required number of personnel & the sources for such procurement.

Supply forecast is required because it is needed as it:

1. Helps to quantify the number of people and positions expected to be available in future to help the
organization realize its plans and meet its objectives

2. Helps to clarify the staff mixes that will arise in future

3. It assesses existing staffing in different parts of the organization.

4. It will enable the organization to prevent shortage of people where and when they are most
needed.

5. It also helps to monitor future compliance with legal requirements of job reservations.

5. HR Programming

Once an organization’s personnel & supply are forecast the two must be reconciled or balance in
order that vacancies can be filled by the right employees at the right time. HR programming the third
step in the planning process, therefore assumes greater importance.

6. HR Plan Implementation

Implementation requires converting an HR plan into action. A series of action programmes are
initiated as a part of HR plan implementation. Some such programmes are recruitment, selection &
placement, training & development, retaining & redeployment the retention plan the succession plan
& redundancy plan.

7. Control & Evaluation

This represents the fifth & final phase in the HRP process. The HR plan should include budgets,
targets & standards. It should also clarify responsibilities for implementation & control & establish
reporting procedures, which will enable achievements to be monitored against 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.

FACTORS AFFECTING /INFLUENCING HRP

HRP is influenced by several factors. The most important of the factors that affect HRP are:

(1) type and strategy of organization

(2) organizational growth cycles and planning

(3) environmental uncertainties

(4) time horizons

(5) type and quality of forecasting information

(6) nature of jobs being filled and

(7) off-loading the work.

1. Type and Strategy of the Organization:

Type of the organization determines the production processes involve, number and type of staff
needed and the supervisory and managerial personnel required. HR need is also defined by the
strategic plan of organization. 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. Organizational Growth Cycles and Planning:

All organizations pass through different stages of growth from the day of its inception. 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
experiences 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.

3. Environmental Uncertainties:

Political, social and economic changes affect all organizations and the fluctuations that are happening
in these environments affect organizations drastically. Personnel planners deal with such
environmental uncertainties by carefully formulating recruitment, selection, training and development
policies and programmes. The balance in the organization is achieved through careful succession
planning, promotion channels, layoffs, flexi time, job sharing, retirement, VRS and other personnel
related arrangements.

4. Time Horizons:

HR plans can be short term or long term. Short term plans span 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 organization’s environment. Greater the uncertainty,
shorter the plan time horizon and vice versa.

5. 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.

6. Nature of Jobs Being Filled:

Personnel planners need to be really careful with respect to the nature of the jobs being filled in the
organization. Employees belonging to lower level who need very limited skills can be recruited hastily
but, while hiring employees for higher posts, selection and recruitment need to be carried out with
high discretion. Organizations need to anticipate vacancies far in advance as possible, to provide
sufficient time to recruit suitable candidate.

7. 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.

External Factors

1. Government Policies

Policies of the government like labour policy, industrial relations policy, policy towards reserving
certain job for different communities & sons of the soil etc affect the HRP.

2. Level of Economic Development

Level of economic development determines the level of HRD in the country & thereby the supply of
human resources in the future in the country.

3. Business Environment
External business environmental factors influence the volume & mix of production & thereby the
future demand for human resources.

4. Level of Technology

Level of technology determine the kind of human resources required.

5. International Factors

International factors like the demand for the resources & supply of HR in various counties.

JOB ANALYSIS

Job analysis is the process of studying & collecting information relating to the operation &
responsibilities of a specific job. The immediate products of this analysis are job descriptions & job
specification.

Job analysis is the fundamental process that forms the basis of all human resource activities. The
importance of job analysis has been well established for years, dating back to at least the First World
War. The United

States Government’s Uniform Guidelines on Employee Selection Procedures (1978) and the
American Psychological Association’s Principles for the Validation and use of Personnel Selection
Procedures stipulate that job analysis is essential to the valediction of any and all major human
resources activities.

In its simplest terms, a job analysis is a systematic process for gathering, documenting and analysing
date about the work required for a job. The data collected in a job analysis, and reflected through a
job description, includes a description of the context and principal duties of the job, and information
about the skills, responsibilities, mental models and techniques for job analysis.

A job analysis provides an objective picture of the job, not the person performing the job, and as
such, provides fundamental information to support all subsequent and related HR activities, such as
recruitment, training, development, performance management and succession planning. Job analysis
serves two critical functions with respect to these processes.

Job analysis helps ensure that decisions made with respect to HR processes are good decisions i.e.,
fair and accurate (e.g., selection of the right person for the job, appropriate decisions about training,
performance management, development, etc.) and its helps ensure the defensibility of decisions
made to employee (resulting in good HR management) and to the courts (resulting in saving of costs,
time and reputation).

Job Analysis is a process of collecting information about a job. The process of job analysis results in
two sets of data. It is the process of gathering and analyzing information about the content and the
human requirements of jobs, as well as, the context in which jobs are performed. This process is
used to determine placement of jobs. Job analysis is the fundamental process that forms the basis of
all human resource activities.
ACTIVITIES:

No. 1: Create a resume and application indicating to the position of production manager.

No. 2: Create a video dialogue of being on a job interview of production manager.