Hrm Unit 2 Notes
Hrm Unit 2 Notes
MODULE NO – 02
Human resource planning helps organizations identify current and future workforce
needs as they relate to the overall strategic priorities for the company. It is the steps and
processes that organizations take to properly plan their HR requirements and programs to
ensure they are in alignment with the company’s strategic plan.
Human resource planning (HRP) is the continuous process of systematic planning to achieve
optimum use of an organization's most valuable asset quality employees. Human
resources planning ensures the best fit between employees and jobs while avoiding
manpower shortages or surpluses.
Human resource planning allows companies to plan ahead so they can maintain a steady
supply of skilled employees. The process is used to help companies evaluate their needs and
to plan ahead to meet those needs.
Human resource planning needs to be flexible enough to meet short-term staffing challenges
while adapting to changing conditions in the business environment over the longer term.
HRP starts by assessing and auditing the current capacity of human resources.
DEFINITION
Human resource needs are planned on the basis of company’s goals. Besides, human resource
planning has its own objectives like developing human resources, updating technical
expertise, career planning of individual executives and people, ensuring better commitment
of people and so on.
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Human resource plan must incorporate the human resource needs of the enterprise. The
thinking will have to be done in advance so that the persons are available at a time when they
are required. For this purpose, an enterprise will have to undertake recruiting, selecting and
training process also.
It includes the inventory of present manpower in the organization. The executive should
know the persons who will be available to him for undertaking higher responsibilities in the
near future.
Manpower needs have to be planned well in advance as suitable persons are available in
future. If sufficient persons will not be available in future then efforts should be .made to start
recruitment process well in advance. The demand and supply of personnel should be planned
in advance.
Besides estimating and employing personnel, human resource planning also ensures that
working conditions are created. Employees should like to work in the organization and they
should get proper job satisfaction.
Human resource planning (HRP) is a vital process that helps organizations align their
workforce with their strategic goals and objectives. The main objectives of human resource
planning are as follows:
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4. Optimizing Human Resources: HRP seeks to ensure that the workforce is utilized
effectively. It helps in analysing the current skills and competencies of employees,
reallocating them to areas where they are most needed, and avoiding overstaffing or
understaffing in different departments.
5. Cost Control: By aligning workforce planning with the organization's strategic goals,
HRP can help in controlling labour costs. It assists in managing labour budgets and
ensuring that human resources are allocated efficiently.
6. Adapting to Technological Changes: With the rapid advancement of technology,
organizations need to adapt their workforce to new tools and systems. HRP assists in
identifying the training and development needs of employees to keep them up-to-date
with technological changes.
7. Workforce Productivity: It helps in enhancing employee productivity by aligning
job roles, responsibilities, and skills with the organization's objectives. This leads to a
more motivated and productive workforce.
8. Monitoring and Evaluation: Continuously monitoring and evaluating the
effectiveness of human resource planning is an important objective. This allows
organizations to make adjustments as needed to ensure that the workforce remains
aligned with the changing business environment.
In summary, human resource planning is a dynamic process that helps organizations prepare
for the future, ensure that they have the right people in the right roles, and adapt to changing
circumstances while meeting their strategic objectives.
Human resource (HR) planning, also known as workforce planning or manpower planning, is
a critical function within an organization. It involves the systematic identification and
analysis of an organization's current and future human resource needs and the development of
strategies to meet those needs. Here are the importance and benefits of HR planning:
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Human Resource Planning (HRP) can be analyzed and measured through both
quantitative and qualitative dimensions to ensure effective workforce management. These
dimensions provide a comprehensive view of an organization's human resource needs and
strategies. Here's an overview of both quantitative and qualitative dimensions of HRP:
1. Skill Gaps: Qualitative assessment of skill gaps involves identifying the specific
skills and competencies that are lacking in the current workforce. This information is
vital for developing targeted training and development programs.
2. Employee Morale and Engagement: Qualitative data can gauge employee morale
and engagement through surveys and feedback, providing insights into job
satisfaction and motivation.
3. Succession Planning: Qualitative dimensions assess the availability of potential
successors for key roles within the organization. It involves identifying high-potential
employees and their readiness for leadership positions.
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4. Diversity and Inclusion: Qualitative HRP looks at the diversity of the workforce and
measures the organization's commitment to promoting diversity and inclusion. This
includes evaluating diversity in hiring, promotions, and inclusion in decision-making
processes.
5. Work-Life Balance: Assessing work-life balance and job flexibility is important for
understanding employee well-being and retention. Qualitative data can reveal how
well the organization supports work-life balance.
6. Employee Feedback: Gathering qualitative feedback from employees through
surveys, interviews, and focus groups provides insights into their concerns, needs, and
suggestions for improving HR practices.
7. Organizational Culture: Understanding the culture of the organization and how it
impacts the workforce is a qualitative dimension that can influence talent attraction
and retention.
8. Compliance and Ethics: Qualitative dimensions include evaluating the
organization's adherence to ethical standards and compliance with labor laws and
regulations, ensuring a responsible and ethical work environment.
Both quantitative and qualitative dimensions are essential for comprehensive HRP. While
quantitative data provides measurable insights into workforce metrics, qualitative data offers
a deeper understanding of employee perceptions and qualitative factors that impact the
workforce. An effective HRP process combines these dimensions to make informed decisions
and develop strategies for managing the workforce effectively.
JOB ANALYSIS:
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1. Identify the Purpose: Begin by defining the purpose of the job analysis. Determine
why you need to conduct a job analysis and what specific outcomes or information
you are seeking. Common purposes include creating job descriptions, setting
compensation structures, and improving organizational efficiency.
2. Select Jobs to Analyse: Choose which jobs within the organization you want to
analyse. You may start with critical or high-impact positions, or you may analyze a
representative sample of various job roles.
3. Collect Data:
a. Data Sources: Gather information from various sources, including job incumbents
(employees performing the job), supervisors, managers, and subject matter experts.
b. Data Collection Methods: Use a combination of methods such as interviews,
surveys, observation, and reviewing existing documents and records.
4. Create Job Descriptions and Specifications:
a. Job Description: Document the tasks, duties, and responsibilities associated with
the job. This typically includes details about the purpose of the job, the main tasks
performed, reporting relationships, and working conditions.
b. Job Specifications: Specify the qualifications, skills, knowledge, and abilities
required for successful job performance. This may include education, experience,
certifications, and physical requirements.
5. Analyze the Data:
a. Task Analysis: Break down the job into its individual tasks and activities.
b. Skill Analysis: Identify the skills, competencies, and attributes needed to perform
these tasks effectively.
c. Job Context Analysis: Understand the environmental and organizational factors
that may affect job performance.
6. Validation and Review: Verify the accuracy and completeness of the job analysis
data. This can involve discussions with experts, feedback from job incumbents, and
conducting validation studies.
7. Document Findings: Create comprehensive reports or records of the job analysis
process, including the job descriptions and specifications. Ensure that the
documentation is clear and easily accessible to relevant stakeholders.
8. Use the Information:
a. Recruitment and Selection: Use job analysis data to develop job advertisements,
select appropriate assessment methods, and make informed hiring decisions.
b. Training and Development: Design training programs and materials based on the
skills and knowledge required for the job.
c. Performance Appraisal: Establish performance standards and criteria for
evaluating employee performance.
d. Compensation and Benefits: Determine appropriate salary structures and benefits
packages.
e. Job Redesign: Use the insights gained to improve job design and enhance
efficiency.
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9. Maintain and Update: Jobs evolve over time, so it's essential to periodically review
and update job analyses to reflect any changes in job roles, responsibilities, or
organizational needs.
Job analysis is a dynamic process that helps organizations adapt to changing circumstances
and ensure that employees are well-suited to their roles. It provides a solid foundation for
various HR and organizational decisions.
JOB DESCRIPTION
Company overview: Many job descriptions include a brief overview of the hiring
company, including its founding, location and mission statement. This helps provide
candidates with basic information about the company and what they do.
Position information: At the top of a job description, there is often basic information
about the job. This can include the position title, location and posting date.
Responsibilities: Companies often provide a bulleted list of the position, sharing its
key responsibilities. This might include what tasks you can expect to perform, what
tools you might use or what results they expect you to achieve.
Qualifications: Job descriptions also include both the required and desired
qualifications for a position. These can include education, experience or certification
requirements or particular skills managers hope candidates have.
JOB SPECIFICATION
A job specification is a piece of text that includes the required qualifications for a
position. These often include some of the same information as a job description but focuses
on the qualities of a person they hope to hire for a position. Key components of a job
specification include:
Required experience: Specifications often include the type and level of experience a
manager hopes a candidate has. This might include the years they hope you have
worked in a specific position or roles they hope you might have.
Required education: Required education typically lists the minimum degree level
that you need to start a job. They might also list the specific degrees they expect for
you to have the needed knowledge to perform a job.
Required certification: Some positions require specific certifications to qualify for
the job. Companies might indicate the name of the certification and ask you to verify
that it is recent.
Required skills: Companies might list the soft and technical skills needed to perform
a job. This can include basic qualities, like communication and critical thinking or list
specific software with which you might need specific experience.
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RECRUITMENT:
Recruitment is the process of searching for the prospective employees and stimulating
them to apply for the job in the organization. when more persons apply for jobs then there
will be a scope for recruiting better persons. The job seekers two on the other hand are in
search of organizations offering them employee met. Recruitment is a linkage activity
between together those with job and those job seeking.
According to Flippo, “recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for the jobs in an organization.”
Process of Recruitment:
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A. Internal sources
There are different types of internal hiring in the organisation and they are as follows:
1. Present Employees
Promotion helps in motivating the other employees of the organisation to work hard so that
they also become eligible for promotion.
b. Transfer: Transfer refers to the shifting of an existing employee from one department to
another department in an organisation.
2. Employee Referrals: It can happen that the organisation in an effort to cut down costs on
hiring is looking for employee referral. The employees are well aware of the job roles in the
organisation for which manpower is required. These employees will refer potential candidates
by screening them based on their suitability to the position.
3. Former employees: Some organisations have the provision of hiring retired employees
willing to work part time/full time for the organisation.
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4. Previous Applicants: Although not an internal source, in the true sense, those who have
previously applied for jobs can be contacted by mail. This is a quick and an inexpensive way
to fill an unexpected vacancy.
Disadvantages :
B. External Sources
External sources of recruitment seek to employ candidates that have not been recruited
anytime before in the organisation.
Introduction of fresh talent among the workforce leads to growth and development of the
business.
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Placement Agencies:
Private agencies and professional bodies appear to be doing considerable work in
technical and professional fields. Placement agencies help provide nationwide service
by matching personnel demand and supply. These kinds of agencies evaluate the bio-
data of several candidates and provide suitable names to their clients. These types of
agencies are useful where large-scale screening is necessary and they charge fees for
such services.
Campus Recruitment: Recruitments are also done through colleges and institutions
of management and technology. These have become a significant source of
recruitment for technical, professional, and managerial jobs. Several huge
organizations keep close contact with universities, vocational schools, and
management institutes to recruit qualified candidates for different kinds of jobs.
Educational institutions are a widespread and normal practice for businesses for
recruitment.
Labour Contractors: Labour contractors are helpful as they keep close contact with
labourers and in providing the necessary amount of unskilled workers in a short
period. The labour contractors are themselves employees of the organization and
perform the work of recruiting labourers whenever necessary. But if the same
employee of the organization who is the labour contractor chooses to leave the
organization, the labourers hired by him will also leave.
Trade Unions : Generally, umemployment and underemployment persons make a
request to trade union leaders for finding suitable job for them. Union leaders are
aware of various vacancies in firms and also know the management. These leaders can
help in the recruitment of suitable persons.
Factory Gate recruitment: This method of recruitment is applied for filling in the
vacancies of unskilled workers. From the large number of unskilled men at the gate, the
requisite numbers on some criteria are recruited. The factory foreman or the
departmental manager makes the recruitment. The need for casual workers is usually
fulfilled in this manner.
There are some factors which are influencing recruiting efforts done by human resources
management. Every organization has to engage in recruiting activity. Some do it at a time
some doesn’t.
Size of the organization: Big organization with large number of employees will find
a huge pool of applicant while they need to fulfil a vacant position. Where on other
side a organization with small number of employees will need to outsource or to
advertise for the vacant position. Small organization finds it difficult to attract
applicant rather than big organization. Overall size of the organization is one of the
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SELECTION:
Process of choosing the most suitable persons out of all the applicants.
Selection is the process of picking individuals with requisite qualifications and
competence to fill the job.
According to Dale Yoder, ‘ Selection is the process in which candidates for
employment are divided into two classes- those who are to be offered employment
and those who are not’.
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The selection process can be defined as the process of selection and shortlisting of the
right candidates with the necessary qualifications and skill set to fill the vacancies in an
organisation. The selection process varies from industry to industry, company to company
and even amongst departments of the same company.
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(i) Intelligence test: It is a psychological test used to measure the level of intelligence of an
individual and his ability to make decisions.
(ii) Aptitude test : It is a psychological test used to measure the potential of an individual to
learn new skills.
(iii) Personality test : It is a test that provide cues regarding a person's emotions, reactions
and value systems.
Iv) Ability Test : Ability tests are standardised methods of assessing an individual's
performance in different work related tasks or situations. They measure potential rather than
just academic performance, and are frequently used by employers as indicators of how people
will perform in a work setting.
(v) Interest test: Interest tests have been designed to discover a person's field of interest and
to identify the kind of work that will satisfy him/her.
(V)Proficiency Tests:
These tests measure the skill which the applicant possesses at the time of testing.The claim of
the applicant about his ability to perform a particular job is tested through these tests.
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Structured Interview − In this type, the interview is designed and detailed in advance. A
structured interview is pre-planned, accurate, and consistent in hiring the candidates.
Placement :
Actual Posting of an employee to a specific job.
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The placement decision is taken by the line manager after matching the
requirements of a job with the qualifications of a candidate.
While taking the placement decision, the following consideration or principles must be kept in mind:
1. Job Requirements:
2. Suitable Qualifications:
3. Adequate Information to the Job Incumbent:
4. Commitment and Loyalty:
5. Flexibility:
Induction/Orientation
It is the process of introducing an employee to the organization and made aware of
all the rules, regulations, policies, authority – responsibility relationship and working
environment.
It is the first step in a proper communication policy which seeks to build a two-way channel
of information between the management and employees. The new employee, on his joining
the organisation, must be helped to get adjusted and acquainted with the fellow employees
and the work environment. Rather than leaving him to make his own way through the
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organisation. It is much better to properly and systematically introduce him to the company,
its philosophy, its place in the industry or economy, its major policies etc.
or
Follow up interview : After certain time period to know the problems faced by new
entrant.
1. F RO M RE ACT I VE T O P RO ACT I VE
The biggest shift that is slowly going on, is the shift from reactive to proactive
recruitment. It requires some level of workforce planning. With the current level of hr
analytics it is relatively easy to increase the quality of workforce planning. Who are the
people or the kind of people who are most likely to leave in the coming years? What are
the capabilities where there is an upward trend in demand? No longer recruit for vacancies,
but recruit to strengthen for the capabilities you will need in the future.
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3. F RO M S E L E CT I NG O N S K I L LS T O S E L E CT I NG O N VAL UE S AND
P E RS O NAL I T Y
For their core organisations are looking for talent where there is a good fit between
the values and the personality of the organisation and the values and the personality of the
candidates.
4. G AMI F I CAT I O N I N RE CRUI T ME NT
The use of gamification in recruitment has been going on for some time. Recruitment
can be fun, and people want to work for organisations where work and fun are closely
connected.
5. G AMI F I CAT I O N I N S E L E CT I O N
Gamification is now entering selection as well. Candidates are asked to play a game
(e.g. The Wasabi Waiter) and the companies behind the games claim they can make a
valuable profile of the candidate based on his or her game behaviour and results.
6. T H E E ND O F TRAI NE E S H I P S
Traineeships are slowly fading away. Planning the careers of people years ahead does
not fit in a time where the speed of change is continuously increasing. Also it does not
help the business to create a group of people who are pampered during a couple of years
and who are kept away from real work.
Information System:
HRIS:
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1. Tools for managing the recruitment process, including job posting, applicant
tracking, and candidate management.
2. Automation of some aspects of the hiring process, such as resume parsing
and initial screening.
3. Performance Management:
1. Tracking employee performance through goal setting, performance reviews,
and feedback mechanisms.
2. Data analytics to assess individual and team performance over time.
4. Training and Development:
1. Recording and tracking employee training and development activities.
2. Identifying skill gaps and planning for future training initiatives.
5. Time and Attendance Management:
1. Monitoring employee attendance and working hours.
2. Integration with time clock systems and tools for managing leave requests.
6. Payroll Processing:
1. Automation of payroll calculations, including tax deductions, benefits, and
other relevant factors.
2. Compliance with local labor laws and regulations.
7. Benefits Administration:
1. Managing employee benefits, such as health insurance, retirement plans, and
other perks.
2. Tracking and communicating benefit enrollment information.
8. Employee Self-Service Portals:
1. Providing employees with access to their personal information, pay stubs,
benefits, and other relevant data.
2. Empowering employees to update their information and request time off.
9. Analytics and Reporting:
1. Generating reports and analytics on various HR metrics, such as turnover
rates, employee satisfaction, and workforce demographics.
2. Supporting data-driven decision-making.
10. Compliance Management:
1. Ensuring that HR processes adhere to legal and regulatory requirements.
2. Managing documentation and reporting for compliance purposes.
Data Sources:
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