Human Resource Planning,

Acquisition & Development

 Human Resource Planning

Human resource planning is the process of

identifying and then matching the HR
requirements and availability in order to
determine the future HR activities of the
organization on the basis of the
overall organizational objectives.
 Importance of HRP

Assessing future Formulating

recruitment requirements compensation policies

Optimum utilization of Human

Gaining competitive
available human resource
advantage
Planning
resources

Developing training and Shaping future plans and

reskilling programmes strategies
 Factors affecting HRP

Organization’s Organizational Competitive Current Quantity & skill

strategy Culture Financial organizational level of required
Environment situation human
resources.
Human Resource Planning Process

Skills audit, core competency analysis

 HR Requirements Forecasting Techniques
• Based on past events • Group of independent
• Analysis of relationship experts forecast based on
• Simple statistical analysis between 2 variables
• Examining factors over a • 50 programs – 10 coders, organizational inputs
period of time to forecast • Summarize, reiterate until
200 programs - ? coders consensus
future needs • Group forecasting method
• Each expert individually
develops HR requirements
• Presents to others
• Senior managers forecast Normal
Trend Ratio Delphi • Relatively graded
• Based on experience & Group
Analysis Analysis Technique • Top ranked proposal
expertise Technique
selected
• Subjective
• Pooled together
• Bottom-up (decentralized) Work Zero-base HR
• Top-down (centralized) Managerial Simulation
Study forecasting allocation
judgment model
model
• Object oriented
simulation model
• Method study – method of doing job is • No position to be • Simulate requirements • Employees, functions,
critically reviewed considered eligible for & availability to matching model,
• Work measurement – measures time routine continuance identify gaps formal rule structure
needed for successful performance • Managers to study • What-if questions & • Analyze outcomes
• Can scientifically predict changes in utility for each alternatives
requirements vacancy
 HR Forecasting – Estimation of availability

Position Labour Size &

Personnel Replacement Market characteristics
Charts

Trade
HRIS
Internal External
Unions

Turnover, Economic/
productivity, OT, Legislative
absenteeism, Other factors
succession
planning
 Talent Management

• Decide what positions to fill, through job analysis, personnel planning, and
forecasting.

• Build a pool of job applicants, by recruiting internal or external candidates.

• Obtain application forms and perhaps have initial screening interviews.

• Use selection tools like tests, interviews, background checks, and physical
exams to identify viable candidates.

• Decide to whom to make an offer.

• Orient, train, and develop employees so they have the competencies to do

their jobs.

• Appraise employees to assess how they’re doing.

• Compensate employees to maintain their motivation

 Job Analysis

• Process of gathering relevant information about a job

• Specifies tasks involved in a job and factors that influence the performance of the job

• Involves ascertaining what people do and understanding why and how they do it

• Acts as a basis for decisions related to HRP, recruitment & selection, training &
development, compensation, performance evaluation, career management, Health &
safety of employees
Key terms
 Job Analysis
●● Work activities. Information about the job’s actual work activities, such as cleaning, selling, teaching, or
painting. This list may also include how, why, and when the worker performs each activity.

●● Human behaviors. Information about human behaviors the job requires, like sensing, communicating,
lifting weights, or walking long distances.

●● Machines, tools, equipment, and work aids. Information regarding tools used, materials processed,
knowledge dealt with or applied (such as finance or law), and services rendered (such as counseling or
repairing).

●● Performance standards. Information about the job’s performance standards (in terms of quantity or
quality levels for each job duty, for instance).

●● Job context. Information about such matters as physical working conditions, work schedule, incentives,
and, for instance, the number of people with whom the employee would normally interact.

●● Human requirements. Information such as knowledge or skills (education, training, work experience)
and required personal attributes (aptitudes, personality, interests).
Methods for collecting job analysis information

Interview

Electronic
Questionnaire
methods

Methods

Quantitative
Observation
techniques

Diary/log
Job Analysis
Process Steps
Techniques of data collection
 Techniques of data collection

• Questionnaire method – Job analyst distributes questionnaire, collects and analyses information

• Job performance method - Job analyst himself performs the job to understand the requirements

• Observation method – Job analyst observes the performance of the employee on the job

• Critical incident method – A critical incident is a significant event that takes place in the job
environment that forces the employee to respond in the form of a performance or behaviour

• Interview method – Job analyst asks the employee questions about various dimensions of the job

• Diary maintenance method – the employee is asked to keep record of all activities performed by
him

• Technical conference method – relies on experience of supervisors – a brainstorming session is

organized among supervisors for gathering relevant info about the job

• Task inventory analysis – list the tasks, brief description

 Questionnaire methods

• Position Analysis Questionnaire - Identifies job and human characteristics individually and then inter-related them
for the purpose of analysis

• Functional Job Analysis – worker centric analysis – analyses competency of the individual, personality of the person,
how he relates with various aspects of work

• Management Position Description Questionnaire – for managerial positions – managers asked to explain their key
roles & responsibilities

• Work Profiling System model – Structured questionnaire for collecting data about personal qualities of employees
who perform technical and managerial jobs

• MOSAIC model – Multipurpose occupational systems analysis inventory-closed ended questionnaire – gathers data
from employees on a wide range of activities like recruitment, selection, compensation, performance etc.

• Common metric questionnaire – 5 sections – background, contacts with people, decision making, physical and
mechanical activities, work setting

• Fleishman job analysis model - measures physical, mental and psychological abilities required for performing a job
 Job description

Job identification Job Summary

Job relationships

Job duties & responsibilities

 Job specification

Education & training Work experience Stress coping ability

Physical strength & Special needs

Skills & competencies
stamina
Recruitment & Selection
 Recruitment
employee recruiting
Finding and/or attracting applicants
for the employer’s open positions
Labour market components

Labor force population

All individuals who are
available for selection if
all possible recruitment
strategies are used.

Applicant population
A subset of the labor force
population that is available
for selection using a
particular recruiting
approach

Applicant pool
All persons who are actually
evaluated for selection.
Strategic Recruiting Stages
 Recruitment Policy

• Guiding principle that governs HR practices relating to recruitment

• Provides a broad framework for the HR department to choose its priorities related
to recruitment
• Examples of priorities – gender equation, socially marginalized, compassionate
appointments for dependents of deceased

Internal Factors External Factors

HR policy Labour market conditions
Nature of job Legal provisions
Reputation of the firm Socio-economic factors
Conventional wisdom
 Governmental issues in local labour markets

Governments and their regulations can make recruiting globally challenging. Consider
the following examples:

■ In Dubai the labor ministry announced that companies had 18 months to replace all
expatriate HR managers with locals. But qualified locals were in very short supply.

■ In South Africa, affirmative action appears to be at odds with rapid economic growth
because of a lack of trained and experienced protected-class members.

■ Singapore significantly raised the monthly tax paid by companies who recruit foreign
workers, thus making it expensive not to hire locals.

■ A change in U.S. tax law is causing some Americans stationed overseas by their
employers to consider coming home because the cost for them personally of staying
abroad has gone up markedly.
Steps in Recruitment Process
Division of recruiting responsibilities
Recruiting & Diversity Considerations

Non-traditional workers
■ Older workers
■ Stay-at-home moms
■ Single parents
■ Welfare-to-work workers
■ Workers with disabilities
■ Army veterans
 Recruiting yield pyramid
A company needs 50 new entry-level accountants
next year. From experience, the firm also knows
the following:
●● The ratio of offers made to actual new hires is
2 to 1.
●● The ratio of candidates interviewed to offers
made is 3 to 2.
●● The ratio of candidates invited for interviews
to candidates interviewed is about 4 to 3. recruiting yield pyramid
The historical arithmetic relationships
●● Finally, the firm knows that of six leads that between recruitment leads and
come in from all its recruiting sources, it typically invitees, invitees and interviews,
invites only one applicant for an interview—a 6- interviews and offers made, and offers
made and offers accepted.
to-1 ratio.
Internal source of candidates

job posting
Publicizing an
open job to
employees (often
by literally posting
it on bulletin
boards) and listing
its attributes, like
qualifications,
supervisor,
working schedule,
and pay rate.
External source of candidates
 Recruiting Methods

internal external

› Employee databases › College & university recruiting

› Job Posting › Labor unions
› Promotions & transfers › Employee agencies and head-
hunters
EMPLOYEE-FOCUSED RECRUITING › Professional & trade associations
› Current employee referrals › Media sources
› Re-recruiting former › Job fairs & events
employees and applicants
› Walk-in / write-in
› Internet recruiting
 Internet recruiting

The Internet has become the primary means for many employers to search
for job candidates and for applicants to look for jobs.

• Internet job portals – Monster, Yahoo!, Naukri

• Professional / career websites

• Employer websites

• Blogs and social networks

Advantages – faster, less expensive, wider reach, can target specific

audiences

Disadvantages – more unqualified recipients, “digital divide”, privacy, legal

issues
 Creative recruitment methods
■ Holding raffles for employees who refer candidates, with cars and trips being used as prizes

■ Offering free rock concert tickets to the first 20 applicants hired

■ Setting up recruiting tables at bowling alleys, minor-league baseball games, or stock car races

■ Recruiting younger technical employees at video game parlors

■ Arranging partnerships with downsizing firms to interview those being laid off

■ Connecting with outplacement fi rms to find out about individuals who have lost their jobs

■ Offering tuition assistance for those willing to work their way through college

■ Interviewing two hours a week even if the organization does not have any openings— and
maintaining good files on those interviewed

■ Taking candidates from among those who leave the armed forces
 Recruiting evaluation and metrics
Few areas that usually need to be considered include: quantity of recruits, quality of recruits,
time available for filling empty positions, cost per recruit, and satisfaction of parties involved.

Quantity of applicants - The basic measure here considers whether the quantity of recruits is
sufficient to fill job vacancies

Quality of applicants – Do the applicants perform their job well? Measures that can be used
include items such as performance appraisal scores, months until promotion, output, and
sales volume for each hire.

Evaluating the time required to fill openings -

 Recruiting evaluation and metrics
Evaluating the cost of recruiting -

Evaluating recruiting satisfaction – Managers (quality of applicant pool, recruiter’s service, timelines,
problems); applicants (how they were treated, perceptions about the company, length of the recruiting
process)

Yield ratios Comparisons of the number of applicants at one stage of the recruiting process with the
number at the next
stage.

Selection rate Percentage hired from a given group of candidates.

Acceptance rate Percent of applicants hired divided by total number of applicants offered jobs.

The success base rate can be determined by comparing the number of past applicants who have
become successful employees against the number of applicants they competed against for their jobs,
using historical data within the organization.
 Recruiting evaluation and metrics
Evaluating the cost of recruiting -

Evaluating recruiting satisfaction – Managers (quality of applicant pool, recruiter’s service, timelines,
problems); applicants (how they were treated, perceptions about the company, length of the recruiting
process)

Yield ratios Comparisons of the number of applicants at one stage of the recruiting process with the
number at the next
stage.

Selection rate Percentage hired from a given group of candidates.

Acceptance rate Percent of applicants hired divided by total number of applicants offered jobs.

The success base rate can be determined by comparing the number of past applicants who have
become successful employees against the number of applicants they competed against for their jobs,
using historical data within the organization.
Recruitment Evaluation Pyramid
 Raiding or Poaching

Raiding or poaching refers to cajoling or attracting the employees of the rival organizations
with attractive offers

On-demand recruiting services (ODRS) – specialize in poaching

Though considered unethical, this practice is widely prevalent in many Indian organizations,
particularly in IT companies
 Anti-Poaching Techniques

Co-operation Agreements: Two or more companies agree not to touch each other’s employees.

Access Restrictions: Gate-keepers are trained to screen calls and block access to organization charts.

Mock Raids: Mock recruiters and fake recruitment ads are used to identify weak links.

Benchmarked HR Practices: Better HR practices are always a magnet for employees.

Retention Bonus: Cash incentives are linked to the years in service.

Employee Contracts: The employee promises not join the competition at once and also promises not to hire
his/her former colleagues.

Tit-for-Tat Threats: Threats of legal action or reactive behaviour could stop some poachers.

Information Security Protocol: Employees are trained not to give out information about reporting relationships.
 Selection
The aim of employee selection is to achieve person-job fit. This means matching the
knowledge, skills, abilities, and other competencies (KSACs) that are required for performing
the job (based on job analysis) with the applicant’s KSACs.

Selection Process of
Placement Fitting a
choosing individuals with
person to the right
qualifications needed to fill
job.
jobs in an organization.

“Hire hard, manage easy.” “Good training will not make up for bad selection.”

The ultimate purpose of selection is placement, or fitting a person to the right job
 Recruitment Vs Selection
Recruitment Selection
The process of procurement begins with the The process of procurement ends with the
recruitment of candidates from different sources. selection of the necessary number of suitable
candidates for the job.

Since the aim of recruitment is to gather as Selection attempts to eliminate applicants

many applicants as possible for the jobs in an in different stages to end up with a smaller
organization, it is a positive task. number of requisite candidates, and is thus a
negative task.

Recruitment is comparatively easy as it does not Selection is a difficult job as it requires

require expertise on the part of the recruiters to specialized knowledge and skills on the part of
build an applicant pool the selectors to choose the best candidates by
predicting their likely performance
Recruitment is basically a searching function Selection is basically a screening function as it
as it searches for prospective candidates for the screens the candidates for their suitability for
jobs offered. the job offered
 HR Unit Vs Managers

HR Unit Managers
• Provides initial reception for • Requisition employees with specific
applicants qualifications to fill jobs
• Conducts initial screening interview • Participate in selection process as
• Administers appropriate appropriate
employment tests • Interview final candidates
• Obtains background and reference • Make final selection decision,
information and sets up a physical subject to advice of HR specialist
examination, if used • Provide follow-up information on
• Refers top candidates to managers the suitability of selected individuals
for final selection
• Evaluates success of selection
process
 Selection Process Flow
Pre-
Applicant job Application
employment
interest form
screening

Additional
Background Test /
interview
check Interview
(optional)

Conditional Job
Medical test
job offer placement

Source – Mathis, R. L., & Jackson, J. H. (2010). Human resource management. Cengage Learning
Selection Process Flow
Application form

Selection tests

Selection interviews

Reference checks

Physical exam

Job offer

Source – Durai, P. (2010). Human resource management. Pearson Education India

 Application form

Biographical
info

Educational
References qualifications
Application
form

Pay & other Work

perquisites Experience
 Selection tests
We may define Since there are differences
a test as a in the abilities, aptitudes,
standardized Ability test interest and personality
assessment of traits of individuals, it is
a sample but essential to measure these
critical differences effectively and
behaviour of Selection accurately to determine
candidates to tests their suitability for the jobs.
determine This may be done with the
their suitability help of selection tests, also
for the job. Honesty / Personality called psychological tests.
Integrity test test

test validity reliability

The accuracy with which a test, The consistency of scores obtained
interview, and so on, measures what by the same person when retested
it purports to measure or fulfills the with the identical tests or with
function it was designed to fill. alternate forms of the same test.
 Ability tests
Cognitive ability Physical ability tests Psychomotor tests Tests
tests Test that measure an that measure dexterity,
Tests that measure individual’s abilities hand– eye coordination,
an individual’s such as strength, arm– hand steadiness,
thinking, memory, endurance, and and other factors.
reasoning, verbal, muscular movement.
and mathematical
abilities

Work sample tests Tests Situational judgment

that require an applicant tests Tests that measure a
to perform a simulated person’s judgment in work
task that is a specified part settings.
of the target job.
 Personality tests
• A personality test proposes to assess and predict these basic characteristics of a person. Its results
are useful in predicting the future performance of the candidate.

• Projective tests are ideal for evaluating the intangible characteristics that make up the personality.

• Through these, the psychologists measure the response or reaction of the candidates, for example,
to confusing stimuli (input) in the form of a distorted picture or incomplete information.

• The response reveals the candidates’ inner qualities, which are then correlated with the job
requirements.

• Rorschach Blot Test (RBT), Thematic Apperception Test (TAT), Minnesota Multiphasic Personality
Inventory (MMPI), and Myer-Briggs type indicator (MBIT) are some of the popular forms of
personality tests.

• In countries like France and Israel, many companies are using graphology—the analysis of
handwriting—as a tool for personality measurement.
 Honesty tests
• Companies are utilizing different tests to assess the honesty and integrity of applicants and
employees.

• Employers use these tests as a screening mechanism to prevent the hiring of unethical
employees, to reduce the frequency of lying and theft on the job, and to communicate to
applicants and employees alike that dishonesty will not be tolerated

• In an honesty or integrity test, the questions are asked in such a way that the attitude and
actual behaviour of the candidates can be found out.

• However, the reliability and validity of the honesty tests have not been conclusively proved
and they are rarely used in India

• Polygraphs The polygraph, more generally and incorrectly referred to as the “lie detector,” is
a mechanical device that measures a person’s galvanic skin response, heart rate, and
breathing rate. The theory behind the polygraph is that if a person answers a question
incorrectly, the body’s physiological responses will “reveal” the falsification through the
polygraph’s recording mechanisms.
 Merits & Demerits of tests
• Merits
✓ Objective in evaluation

✓ Ideal for large groups

✓ Can measure potential

✓ Goal specific & target oriented (achievement tests for present, aptitude tests for
future)

✓ Record for future

• Demerits
✓ Lack of flexibility – may overlook critical individual differences

✓ Unsuitable for smaller groups

 Selection Interview
An interview can be defined as

“a selection procedure designed to predict future job performance on the basis of

applicants’ oral responses to oral inquiries.”

Or, as

“a purposeful exchange of ideas, the answering of questions and communication

between two or more persons.”

In other words, an interview is a face–to–face conversation to collect information

from a candidate to determine his suitability for a job.

Objectives
• It fills the information gap in the personnel selection process
• It enables an organization to establish a direct and personal contact with the
applicant
• It facilitates a two-way communication process
• It provides a platform for the organization for impression management
 Types of interview

Panel interview Interview

in which several
interviewers meet with
candidate at the same
time.

Stress interview Interview

Structured interview
designed to create anxiety
Interview that uses a set
and put pressure on
of standardized questions
applicants to see how they
asked of all applicants.
respond.

In-depth interview The intention

Unstructured interview
of this exhaustive interview is to
Interview that uses
ensure that no information vital
questions developed from
to decision making is missed out
the answers to previous
questions.
Types of questions asked in interviews
Types of questions asked in interviews
Types of questions asked in interviews
 Questions to avoid
■ Yes/no questions: Unless verifying specific information, the interviewer should avoid questions that can be
answered “yes” or “no.” For example, “Did you have good attendance on your last job?” will probably be
answered
simply “yes.”

■ Obvious questions: An obvious question is one for which the interviewer already has the answer and the
applicant knows it.

■ Questions that rarely produce a true answer: Avoid questions that prompt a less than honest response. An
example is “How did you get along with your co-workers?” The likely answer is “Just fine.”

■ Leading questions: A leading question is one to which the answer is obvious from the way that the question
is asked. For example, “How do you like working with other people?” suggests the answer “I like it.”

■ Illegal questions: Questions that involve information such as race, age, gender, national origin, marital
status, and number of children are illegal. They are just as inappropriate in the interview as on the application
form.

■ Questions that are not job related: All questions should be directly job related.
 Effective interview process

• Becoming Familiar with the Information Available

• Getting Ready with an Interview Plan

• Creating a Supportive Environment

• Conducting the Interview

• Ending the Interview

• Reviewing the Performance

 Disadvantages - interview process

• Lack of Objectivity

• Snap judgments

• Halo Effect

• Negative emphasis

• Inadequacy of Time

• Lack of Uniformity

• Biases/stereotyping

• Absence of Training for the Interviewers

 Reference Check

• The next step in the selection process is checking the references furnished by the
candidates.

• Many organizations have reference columns in their application forms. They instruct the
• applicants to mention a few names as referees.

• The purpose of collecting such references is to cross-check the information provided by

the candidates in the different stages of selection process.

• The persons known to the candidates are normally cited as referees. They may be the
friends, relatives, previous employers, faculty of educational institutions where
candidates studied or any other prominent persons familiar with the candidate.

• However, this is not an effective selection tool since the reports are not always objective
 Background check

Sources of background information Negligent hiring Occurs

when an employer fails
• Previous employment records to check an employee’s
background and the
• Criminal records employee injures someone
on the job.
• Education related documentation

• Professional certifications/licenses Negligent retention

Occurs when an employer
• Motor vehicle records becomes aware that an
employee may be unfit for
• Credit history work, but continues to
employ the person, and the
person injures someone.
 Medical examination

• Medical information on applicants may be used to determine their physical

and mental capabilities for performing jobs.

• Physical standards for jobs should be realistic, justifiable, and linked to job
requirements.

• Drug testing may be conducted as part of a medical exam, or it may be done

separately
 Job offer
The last step in the process of selection, in practice, is intimating the candidates about their provisional
selection.

A job offer (an appointment order specifying the terms and conditions of employment) is issued to the
candidates who have been successful at the end of selection process.

Once the employee positively responds to the offer of employment, the process of integrating that employee
into the job is set in motion.

However, an applicant’s decision to accept or reject a job offer is influenced by the presence or absence of
the following factors:

• Alternative job opportunities available, including the number and nature of alternative opportunities
• Job attraction like the nature and extent of supervision, work schedule, and the amiability of co-workers
• Positive features of the company such as pay and benefits, advancement opportunities in career, and the
company’s reputation as a good place to work
• Recruitment activities like the manner in which the candidate is recruited and in which the information is
conveyed to the candidate.
 References

1. Gary Dessler, Human Resource Management, Pearson Education, 14th Edition,2015

2. Robert L Mathis, John H Jackson, Human Resource Management, Cengage Learning

3. Human Resource Management – Text & Cases – Ashwathappa

4. Human Resource Management – Pravin Durai