Human Resource Planning (H R P)
Human Resource Planning (H R P)
“HRP includes estimation of how many qualified people are necessary to carry out the
assigned activities, how many people will be available, and what, if anything, must be done
to ensure personnel supply equals personnel demand at the appropriate point in the future.”
“HRP is a Process, by which an organization ensures that it has the right number and kind of
people at the right place, at the right time, capable of effectively and efficiently completing
those tasks that will help the organization achieve its overall objectives.”
“HRP is a process of translating organizational objectives and plans into the number of
workers needed to meet those objectives.”
ME A NI N G / P U RPO SE O F H RP
H RP S Y ST EM
Business Environment
Manpower Programming
Manpower Implementation
O r g an iz at i o n al O b j ect i ve s & P o li c ie s : -
The objectives of HR plan must be derived from organizational objectives like specific
requirements of numbers and characteristics of employees etc. HRP needs to sub-serve the
overall objectives by ensuring availability and utilization of human resources. Specific
policies need to be formulated to address the following decisions.
Ma n po w e r D em a n d F or ec a st i n g: -
It is the process of estimating the future quantity and quality of people required.
The basis should be annual budget and long term corporate plans
Internal Factors: -
Budget constraints
Production levels
New products and services
Organizational structure
Employee separation
External Factors: -
Competition environment
Economic climate
Laws and regulatory bodies
Technology changes
Social Factors
Reasons for Manpower Demand Forecasting: -
To quantify jobs
To determine the Staff-mix
To assess staffing levels and avoid unnecessary costs
Prevent shortages of people
Monitor compliances of legal requirements with regards to reservations
Ration-Trend Analysis: This technique involves studying past ratios, and forecasting
future ratios making some allowance for changes in the organization or its methods.
Work Study Techniques: It is possible when work measurement to calculate the length of
operations and the amount of manpower required. The starting point can be production
budget, followed by standard hours, output per hour; man-hours required etc could be
computed.
Delphi Techniques: This technique solicits estimates from a group of experts, and HRP
experts normally act as intermediaries, summarizes various responses and report the
findings back to experts.
Flow Models: This technique involves the flow of following components. Determine the
time required, Establish categories, Count annual movements, Estimate probable
transitions. Here demand is a function of replacing those who make a transition.
Ma n po w e r S up p ly Fo r ec a st in g : -
This process measures the number of people likely to be available from within and outside
the organization after making allowance for absenteeism, internal movements and
promotions, wastages, changes in hours and other conditions of work.
Existing Human Resources: HR Audits facilitate analysis of existing employees with skills
and abilities. The existing employees can be categorized as skills inventories (non-
managers) and managerial inventories (managers)
Internal Supply: -
External Supply: -
External sources are required for following reasons
New blood,
New experiences
Replenish lost personnel
Organizational growth
Diversification
External sources can be colleges and universities, consultants, competitors and unsolicited
applications.
H R P l an I mp l em e n ta ti o n : -
Co nt r ol & E v a lu a t i on of H RP : -
HR Plan must also clarify responsibilities for control and establish reporting procedures,
which will enable achievements to be monitored against the plan. The HR Plan should
include budgets, targets and standards. These plans may simply be reports on the numbers
employed, recruited against targets etc.
SUCCESSION PLANNING
Succession planning helps when there is a sudden need arises due to reason or
retirement of a key employee.
Individual employee comes to know in advance the level to which he can rise if he has
the ability and aptitude for it.
Individual employee or successor feels happy when he feels that organization is taking
care of his talents and aspirations.
Succession planning helps create loyalty towards the organization and improved
motivation and morale of individual employees.
Organization gains stable workforce and low employee turnover.
Ultimately organization becomes successful in accomplishing its goals effectively.
CAREER PLANNING
Career planning is a process of integrating the employees’ needs and aspirations with
organizational requirements.
JOB ANALYSIS
JO B:
“Job is a ‘group of tasks to be performed everyday.”
JOB ANALYSIS
ME A NI N G O F JO B A N AL Y S IS
Job Analysis is a process of collecting information about a job. The process of job analysis
results into two sets of data.
Job Description
Job Specification
As a result Job analysis involves the following steps in a logical order.
St ep s o f J ob A n a ly s is
1. Collecting and recording job information
2. Checking the job information for accuracy
3. Writing job description based on information collected to determine the skills,
knowledge, abilities and activities required
4. Updating and upgrading this information
PU RP O SE O F JO B A N AL Y S IS : -
PRO CE SS O F JO B A N AL Y SI S
St r at eg ic C ho ic e s : -
Co l l ect i ng I nf o rm at i on : -
Pr oc e ss i ng I nf o rm at i on : -
Once the job information is collected it needs to be processed, so that it would be useful in
various personnel functions. Specifically job related data would be useful to prepare job
description and specifications, which form the next two processes of job analysis.
METH O DS O F D AT A C O L LEC T I O N:
O b se rv a t io n : Job Analyst carefully observes the jobholder and records the information in
terms of what, how the job is done and how much time is taken. It is a simple and accurate
method, but is also time consuming and inapplicable to jobs involving mental activities and
unobservable job cycles. The analysts must be fully trained observers.
I nt er v ie w : In this analyst interviews the jobholders, his supervisors to elicit information.
It can be Structured or Unstructured Interview. Again this is also a time consuming method
in case of large organizations. Plus there is also a problem of bias.
Q u es ti o nn a i r es : A standard questionnaire is given to jobholder about his job, which can
be filled and given back to supervisors or job analysts. The questionnaire may contain job
title, jobholder’s name, managers name, reporting staff, description of job, list of main
duties and responsibilities etc. It is useful in large number of staffs and less time
consuming. However the accuracy of information leaves much to be desired.
Ch ec kl i st s : It is more similar to questionnaire but the response sheet contains fewer
subjective judgments and tends to be either yes or no variety. Preparation of checklist is a
challenging job itself.
Tec h ni c a l Co n fe r e nc e : Here a conference of supervisors is used. The analysts initiate
the discussions providing job details. However this method lacks accuracy.
Di a r y Met h od s : In this method jobholder is required to note down their activities day by
day in their diary. If done faithfully this technique is accurate and eliminates errors caused
by memory lapses etc.
Q u a nt it at i ve M et h od s o f J ob D at a Co l le ct io n : -
Po s it io n An a l y si s Q u es ti o nn a i r e ( P A Q ) : -
PAQ is a highly specialized instrument for analyzing any job in terms of employee activities.
The PAQ contains 194 job elements on which job is created depending on the degree to
which an element is present. These elements are grouped together into 6 categories.
1. U – Usability / Use of Job
2. I – Importance of Job
3. T – Time
4. P – Possibility of Occurrence of Job
5. A – Applicability of Job
6. S – Specialty Tasks of Job
The primary advantage of PAQ is that it can be used to analyze almost every job. This
analysis provides a comparison of a specific job with other job classifications, particularly for
selection and remuneration purposes. However PAQ needs to be completed by trained job
analysts only rather than incumbents.
Ma n a ge m en t Po s it io n D e sc r ip t io n Q u es t io n n ai r e ( MPD Q ) : -
Highly structured questionnaire, containing 208 elements relating to managerial
responsibilities, demand, restrictions and other position characteristics These 208 elements
are grouped under 13 categories.
Fu nc ti o n a l Jo b A n a ly s i s : -
It i s a w o r k e r o ri en ted j ob an al yti cal a ppr o ac h , wh i ch a tt e mpt s t o d e s c ri be
th e wh ol e p e r s on on th e j o b.
B AR R IE RS O F JO B A N AL Y S IS
“Job Description implies objective listing of the job title, tasks, and responsibilities involved
in a job.”
Job description is a word picture in writing of the duties, responsibilities and organizational
relationships that constitutes a given job or position. It defines continuing work assignment
and a scope of responsibility that are sufficiently different from those of the other jobs to
warrant a specific title. Job description is a broad statement of purpose, scope, duties and
responsibilities of a particular job.
Fe a tu r es of G oo d J ob D e sc r ip t io n
1. Up to date
2. Proper Job Title
3. Comprehensive Job Summary
4. Clear duties and responsibilities
5. Easily understandable
6. State job requirements
7. Specify reporting relationships
8. Showcase degrees of difficulties
9. Indicates opportunities for career development
10. Offer bird’s-eye-view of primary responsibilities
JOB SPECIFICATIONS
“Job Specification involves listing of employee qualifications, skills and abilities required to
meet the job description. These specifications are needed to do job satisfactorily.”
Further the job specifications can be divided into three broad categories
Essential Attributes
Desirable Attributes
Contra-Indicators – indicators hampering the success of job
JOB EVALUATION
Job Evaluation involves determination of relative worth of each job for the purpose of
establishing wage and salary differentials. Relative worth is determined mainly on the basis
of job description and job specification only. Job Evaluation helps to determine wages and
salary grades for all jobs. Employees need to be compensated depending on the grades of
jobs which they occupy. Remuneration also involves fringe benefits, bonus and other
benefits. Clearly remuneration must be based on the relative worth of each job. Ignoring
this basic principle results in inequitable compensation. A perception of inequity is a sure
way of de-motivating an employee.
Job evaluation is a process of analyzing and assessing the various jobs systematically to
ascertain their relative worth in an organization.
Jobs are evaluated on the basis of content, placed in order of importance. This establishes
Job Hierarchies, which is a purpose of fixation of satisfactory wage differentials among
various jobs.
Analytical Methods
Point Ranking Methods: Different factors are selected for different jobs with
accompanying differences in degrees and points.
Factor Comparison Method: The important factors are selected which can be
assumed to be common to all jobs. Each of these factors are then ranked with other jobs.
The worth of the job is then taken by adding together all the point values.
Non-Analytical Methods
Ranking Method: Jobs are ranked on the basis of its title or contents. Job is not
broken down into factors etc.
Job Grading Method: It is based on the job as a whole and the differentiation is made
on the basis of job classes and grades. In this method it is important to form a grade
description to cover discernible differences in skills, responsibilities and other
characteristics.
St ep s in Jo b D e si g n : -
1. Specification of Individual Tasks
2. Specification of Methods of Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals
F act o rs a ff ec ti n g J ob D e s ig n : -
O r g an iz at i o n al f ac to rs :
Characteristics of Tasks (Planning, Execution and Controlling of Task)
Work Flow (Process Sequences)
Ergonomics (Time & Motion Study)
Work Practices (Set of ways of performing tasks)
Env i r on me nt a l F ac to rs :
Employee Abilities and Availability
Social and Cultural Expectations
Be h a v io r a l E le me n ts :
Feedback
Autonomy
Use of Abilities
Variety
TECH N IQ UE S O F J O B D ES I G N : -
Wo rk Si m pl i f ic at i o n : Job is simplified or specialized. The job is broken down into small
parts and each part is assigned to an individual. To be more specific, work simplification is
mechanical pacing of work, repetitive work processes, working only on one part of a
product, predetermining tools and techniques, restricting interaction amongst employees,
few skills requirement. Work simplification is used when jobs are not specialized.
Be n ef i ts of Jo b e n r ic hm e nt
1. It benefits employee and organization in terms of increased motivation,
performance, satisfaction, job involvement and reduced absenteeism.
2. Additional features in job meet certain psychological needs of jobholders due to
skill variety, identity, significance of job etc.
3. It also adds to employee self-esteem and self-control.
4. Job enrichment gives status to jobholder and acts as a strong satisfier in one’s
life.
5. Job enrichment stimulates improvements in other areas of organization.
6. Empowerment is a by-product of job enrichment. It means passing on more
authority and responsibility.
De me r it s o f J o b E nr i ch m en t
1. Lazy employees may not be able to take additional responsibilities and power. It
won’t fetch the desired results for an employee who is not attentive towards his job.
2. Unions resistance, increased cost of design and implementation and limited
research on long term effect of job enrichment are some of the other demerits.
3. Job enrichment itself might not be a great motivator since it is job-intrinsic
factor. As per the two-factor motivation theory, job enrichment is not enough. It should be
preceded by hygienic factors etc.
4. Job enrichment assumes that workers want more responsibilities and those
workers who are motivated by less responsibility, job enrichment surely de-motivates them
5. Workers participation may affect the enrichment process itself.
6. Change is difficult to implement and is always resisted as job enrichment brings
in a changes the responsibility.
The concept of motivating jobs relates to Job design. Job design affects employee
productivity, motivation and satisfaction. Job design is a conscious effort to organize tasks,
duties and responsibilities into a unit of work to achieve certain objectives.
How a job design creates a motivating job can be seen with the help of certain components
of job design, namely, job rotation, job enlargement, job enrichment, work simplification
etc.
Work simplification simplifies the job by breaking down the job into small parts. Simplified
jobs are easy to perform hence employees find it easy to do. Training requirements are
reduced and it benefits the organizations in terms of cost.
Job rotation means movement of employees of job to job across the organization. It
improves the intrinsic reward potential of a job because of different skills and abilities are
needed to perform a job. Workers become more competent in several jobs rather than only
one. It also improves workers self image, provides personal growth and makes workers
more valuable to the organization. Periodic job change can improve inter-departmental
cooperation. Employees become more understanding to each other’s problems.
Consequently it provides a high level of motivation to employees because jobs itself become
motivators. Hence job rotation helps the job become more motivating.
Job enlargement involves expanding number of tasks or duties assigned to a given job.
Job enrichment involves improving task efficiency and human satisfaction. Job enrichment
provides greater scope for personal achievement and recognition, more challenging and
responsible work and more opportunity for individual advancement and growth. An enriched
job gives vertical enrichment in the form of more responsibility and autonomy and a
horizontal enrichment in the form of variety of tasks and more growth opportunities. The
employee does more planning and controlling with less supervision but more self-
evaluation. All these factors lead to increased level of motivation and hence make the jobs
more motivated.
Considering above examples, we can say that designing jobs is actually using the relevant
and right techniques of job design, like rotation, enrichment, simplifications and make the
jobs more motivating to perform.
JOB SATISFACTION
Job satisfaction is the result of various attitudes possessed by an employee towards his job,
related factors and life in general. The attitudes related to job may be wages, supervision,
steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of
work, social relations on job, prompt settlement of grievances etc.
In short job satisfaction is a general attitude, which is the result of many specific attitudes
in three areas namely, job factors, individual characteristics and group relationships outside
the job.
Personal factors: Sex, Dependents, Age, Timings, Intelligence, Education and Personality.
Job inherent factors: Type of work, Skills, Occupational status, Geography, Size of plant
Work sampling is based on the theory that the percentage of the number of observations on
a particular activity is a reliable measure of the percentage of the total actual time spent on
that activity.
Assume, for example, that you wish to determine the proportion of time a factory operator
is working or idle. Also assume that 200 random observations were made of the operator
and during 24 of these he or she was observed to be idle. Therefore, you find that the
individual is working 176/200 = 88% of the time.
When properly used, it can help pinpoint those areas, which should be analyzed in, further
detail and can serve as a measure of the progress being made in improving operations.
Work sampling is lower cost because it uses random samples instead of continuous
observations.
Many operators or machines can be studied by a single observer
Work sampling can span several days or weeks, thus minimizing the effects of day to
day load or equipment variations
Work Sampling tends to minimize operator behavior modification during observation.
Work Sampling, in general, does not require a trained time-study analyst to take the
observations. Also, stopwatches or other timing devices are not required. Many studies
make use of off-shift technicians or operators to take the observations.
Work sampling Methodology
The ratio of the number of observations of a given state of the activity to the total number
of observations taken will approximate the percentage of time that the activity is in that
given state.
Note that random observations are very critical for a work sampling study. A brief example
might be that 77 of 100 observations showed a machine to be running. We might then
conclude, within certain statistical limits, that the equipment is operational 77% of the time.
RECRUITMENT & SELECTION
REC R U ITM EN T
ME A NI N G O F RE CR U IT M EN T :
Recruitment is understood as the process of searching for and obtaining applicants for jobs,
from among them the right people can be selected. Though theoretically recruitment
process is said to end with the receipt of applications, in practice the activity extends to the
screening of applications so as to eliminate those who are not qualified for the job.
PU RP O SE A N D I MP O RT A NC E O F REC R U ITM EN T: -
1. Determine the present and future requirements in conjunction with personnel planning
and job analysis activities
2. Increase the pool of job candidates at minimum cost
3. Help increase success rate of selection process by reducing number of under-qualified or
over-qualified applications.
4. Reduce the probability that job applicants once selected would leave shortly
5. Meet legal and social obligations
6. Identify and prepare potential job applicants
7. Evaluate effectiveness of various recruitment techniques and sources for job applicants.
F ACT O R S G O VER N I N G RE CR U IT ME NT
External Factors:
Demand and Supply (Specific Skills)
Unemployment Rate (Area-wise)
Labor Market Conditions
Political and Legal Environment (Reservations, Labor laws)
Image
Internal Factors
Recruitment Policy (Internal Hiring or External Hiring?)
Human Resource Planning (Planning of resources required)
Size of the Organization (Bigger the size lesser the recruitment problems)
Cost
Growth and Expansion Plans
REC R U ITM EN T PR O CE SS
Recruitment Planning
Number of contacts
Types of contacts
Recruitment Strategy Development
Make or Buy Employees
Technological Sophistication
Where to look
How to look
Internal Recruitment (Source 1)
Present employees
Employee referrals
Transfers & Promotions
Former Employees
Previous Applicants
Evaluation of Internal Recruitment
External Recruitment (Source 2)
Professionals or Trade Associations
Advertisements
Employment Exchanges
Campus Recruitment
Walk-ins Interviews
Consultants
Contractors
Displaced Persons
Radio & Television
Acquisitions & Mergers
Competitors
Evaluation of External Recruitment
Searching
Source activation
Selling
Screening of Applications
Evaluation and Cost Control
Salary Cost
Management & Professional Time spent
Advertisement Cost
Producing Supporting literature
Recruitment Overheads and Expenses
Cost of Overtime and Outsourcing
Consultant’s fees
Evaluation of Recruitment Process
Return rate of applications sent out
Suitable Candidates for selection
Retention and Performance of selected candidates
Recruitment Cost
Time lapsed data
Image projection
I NT E R N AL R EC R U I TME NT
A dv a nt a ge s Di s a dv a nt a g es
1. Less Costly 1. Old concept of doing things
2. Candidates already oriented towards 2. It abets raiding
organization 3. Candidates current work may be
3. Organizations have better knowledge affected
about internal candidates 4. Politics play greater roles
4. Employee morale and motivation is 5. Morale problem for those not
enhanced promoted.
EXT ER N A L RE CR U I TME NT
A dv a nt a ge s Di s a dv a nt a g es
1. Benefits of new skills and talents 1. Better morale and motivation
2. Benefits of new experiences associated with internal recruiting is
3. Compliance with reservation policy denied
becomes easy 2. It is costly method
4. Scope for resentment, jealousies, and 3. Chances of creeping in false positive
heartburn are avoided. and false negative errors
4. Adjustment of new employees takes
longer time.
SEL ECT IO N : -
ME A NI N G O F SE LE CT IO N :
Selection is the process of picking up individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization. A formal definition of
Selection is as under
De f in it i on of Se l ec ti on : P r o c e s s o f dif f e r en ti atin g
“Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.”
Recruitment Selection
1. Recruitment refers to the process of 1. Selection is concerned with picking up
identifying and encouraging prospective the right candidates from a pool of
employees to apply for jobs. applicants.
2. Recruitment is said to be positive in 2. Selection on the other hand is
its approach as it seeks to attract as negative in its application in as much as
many candidates as possible. it seeks to eliminate as many unqualified
applicants as possible in order to identify
the right candidates.
PRO CE SS / ST E PS I N SE LE CT IO N
B AR R IE RS T O E FF ECT I VE S ELE CT IO N : -
1. Pe rc e pt io n : We all perceive the world differently. Our limited perceptual ability is
obviously a stumbling block to the objective and rational selection of people.
2. F ai r n es s : Barriers of fairness includes discrimination against religion, region, race or
gender etc.
3. V a l id it y : A test that has been validated can differentiate between the employees who
can perform well and those who will not. However it does not predict the job success
accurately.
4. Re l i ab i l it y : A reliable test may fail to predict job performance with precision.
5. Pr e ss u r e: Pressure brought on selectors by politicians, bureaucrats, relatives, friends
and peers to select particular candidate are also barriers to selection.