Human Resource Management

 Manpower planning may be defined as a
strategy for the acquisition, utilization,
improvement and preservation of an
enterprise’s human resources.
 Manpower planning process considers
four categories.
 Existing Staff
 New Recruits
 Potential Staff
 Leavers
 Each of this categories requires different
decisions to be made by managers
concerned.
 This includes:-
Manpower Planning Process
Step 1.Workforce Analysis
Step 2. Internal Scan
Step 3. External Scan
Step 4. Gap Analysis
Step 5. Priority Setting &Work Plan
Step 6. Monitoring, Evaluating,
Reporting
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What is Manpower Planning Process?

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Sr.No Category Decision required
1. Existing staff Productivity
Deployment
Opportunity
Training
Promotion
2. New Recruits Recruitment methods
Selection
Introduction
Training
Terms of Contracts
3. Potential staff Public Relations
Employee Benefits
4. Leavers Dismissal for poor performance
Retirements
LabourTurnover
Cont……

Manpower planning process involves following
steps
1) Identify demand for manpower
2) Access personnel supply
3) Forecast manpower requirement
4) Periodic review
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Identify demand for manpower
 The objective of the organization are the translated into plans for assessing
and security sufficient manpower resources. The factors for an organizations
demand for manpower is shown in figure…
 The factors for an organizations demand for manpower is Listed Below…
 TechnologyAvailability
 Short-term
 Contract
 External
 Consultancy
 Existing
 Staff & Skill
 Demand for Service
 Corporate
 Objectives
 Trade- union Pressure6

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Existing
Staff & Skill
Organization’s
manpower demand
Trade- union
Pressure
Technology
Availability
Short-term
Contract
External
Consultancy
Demand for
Service
Corporate
Objectives
Demand for manpower

Accessing the supply
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 In accessing the supply of manpower available to the organization, two major
areas to be reviewed are…
a. Internal manpower
b. External market
 Actually no workforce is completely static.
 There are always some people leaving and entering the organization.

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Internal manpower
 The existing workforce evaluations includes-job categories, numbers, skills,
performance flexibility, promotability, age profile etc.
 Figure shows how the internal supply can be calculated.
Current
Staffing
Level
Employee
In
Employee
Out
Transfers
Recalls
New Hires
Promotions
Layoffs
Deaths
Retirements
Demotions
Terminations
Quits
Promotions
Source of
Inflows
The
Organization
Source of
Outflows
Estimating internal staffing

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External market
 The size and nature of this external work force depends on variety of
economics and social factors as shown in figure…
Nature of
Competition
for employees
Factors affecting nature of external manpower market
Organization’s
ability to make
full use of the
labour market
Level of
economic
activity
Government
Policies
New
Technology
Education &
Training
Opportunity
Population
Changes
Trade union
attitude
Wage/salary
levels

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 It indicates information about the ratio of leavers to the average numbers
employed during the course of a year.
 It is usually Expressed as follows.
 A turnover rate of 25% is considered as satisfactory by most organization.
 A turnover of 100% is considered as major problem.
 It has some drawbacks…
1. It does not indicate in which area of the organization the rate of leavers is
high.
2. It does not indicate the length of service of the leavers.
3. It does not indicate any sudden changes in the numbers employed from
one year to the next.
Labour turnover
Number of employees leaving during the year
Average number of employed during the year
100

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 Advantages: -
 It gives chance to recruit fresh staff.
 It opens up promotion channels for longer-serving employees.
 It introduces an element of‘self-selection’ among new employees.
 Disadvantages: -
 Additional costs of replacement recruitment.
 Disruption to production of goods or services caused by leavers.
 Additional job training costs.
 Wanted investment in people.
 May lead to difficulties in attracting new staff.
Cont…

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 Forecasts for manpower planning usually begin with present staffing
schedules. Forecasting uses many methods and procedures. Forecasting may
be easier and more dependable in well-established industries.
Forecast Manpower Requirement
Organization objectives
Market dynamics
including the job market
Organization culture
Technological
environment
Time SeriesAnalysis
RegressionAnalysis
Productivity Ratios
Forecasting Methods
ConsiderationAspects
Manpower
Forecasting
Forecast Manpower Requirement

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 Periodic review of manpower planning process helps in identifying the
obstacles and problems occurred during the implementation/execution.
Suitable method to rectify the problem can be incorporated.
 Advantages of Manpower Planning: -
 The benefits from the planned approach of manpower planning, use and
deployment of the people throughout the organization include:
 Appropriately skilled and flexible workforce.
 Ability to respond to change.
 Stability in the core of the workforce.
 Reduced need to recruit externally.
 Improved morale and employee relations.
 Improvement in quality of products/services.
 Higher productivity.
Periodic Review

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What is Recruitment?
 Recruitment is the process of locating and encouraging potential applicants
to apply for existing or anticipated job openings
 Certain influences, however, restrain a firm while choosing a recruiting
source such as:
 Poor image
 Unattractive job
 Conservative internal policies
 Limited budgetary support
 Restrictive policies of government

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Recruitment process chart
Identifying the vacancy
Preparing the job description
Sourcing
Short listing
Written test Group discussion
Arrange the interview
Select the candidates
Salary negotiation
Finalizing the candidate

Organisation
need for high
quality
employees
Potential
applicants’
need for
suitable job
Internal
Applicants
Environment:
Economic and Social,
Technological and Political
Information Flow
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Matching the needs of applications and organizations

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Situational Factors Affecting Recruitment
 The process of recruitment is influenced by a variety of environmental
factors.
 Economic factors
 Social factors
 Technological factors
 Political factors
 Legal factors
• The FactoriesAct
• TheApprenticesAct
• The Employment ExchangesAct
• The Contract LabourAct
• Bonded Labour System Act
• The Child LabourAct

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Sources of Recruitment
 The sources of recruitment may broadly be divided into two categories:
 Internal sources
 External sources
 Both have their merits and demerits.

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Merits and demerits of Internal sources
Merits Demerits
Economical: The cost of recruiting internal
candidates is minimal. No expenses are incurred on
advertising.
Limited choice: It may have to sacrifice quality
and settle for less qualified candidates.
Suitable: The organization can pick the right
candidates having the requisite skills. The
candidates can choose a right vacancy where their
talents can be fully utilized.
Inbreeding: Existing employees may fail to
behave in innovative ways and inject necessary
dynamism to enterprise activities.
Reliable: The organization has knowledge about
the suitability of a candidate for a position. ‘Known
devils are better than unknown angels!’.
Inefficiency: Promotions based on length of
service rather than merit, may prove to be a
blessing for inefficient candidates.
Satisfying: A policy of preferring people from
within offers regular promotional avenues for
employees. It motivates them to work hard and
earn promotions.
Bone of contention: Recruitment from within
may lead to infighting among employees aspiring
for limited, higher-level positions in an
organization.

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Merits and demerits of External sources
Merits Demerits
Wide choice: The organization has the freedom
to select candidates from a large pool. Persons with
requisite qualifications could be picked up.
Expensive: Hiring costs could go up substantially.
Tapping multifarious sources of recruitment is not
an easy task, either.
Injection of fresh blood: People with special
skills and knowledge could be hired for innovative
ways of working.
Time consuming: It takes time to advertise,
screen, to test and to select suitable employees.
Motivational force: It helps in motivating
internal employees to work hard and compete with
external candidates while seeking career growth.
Demotivating: Existing employees who have put
in considerable service may resist the process of
filling up vacancies from outside.
Long term benefits: Talented people could join
the ranks, new ideas could find meaningful
expression.
Uncertainty: There is no guarantee that the
organization, ultimately, will be able to hire the
services of suitable candidates.

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Internal Method Of Recruitment
 Promotions and transfers: Promotion is the movement of an employee from
a lower level position to a higher level position with increase in salary
Transfer, on the other hand, is a lateral movement within the same grade,
from one job to another.
 Job posting: It is a method of publicizing job openings on bulletin boards,
electronic media and similar outlets by a company.
 Employee referrals: It is a kind of recommendation from a current employee
regarding a job applicant.

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Direct Method Of Recruitment
 Campus recruitment: It is a method of recruiting by visiting and participating
in college campuses and their placement centers. Possibly the most popular
way of hiring the best brains in the country, this method has to be used with
lot of care and caution.
 Guidelines for campus recruiting: -
 Shortlist campuses
 Choose recruiting team carefully
 Pay smartly, not highly
 Present a clear image
 Do not oversell yourself
 Get in early
 Not everyone fits the bill

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Common Mistakes Made in
Campus Recruiting
 Failure to utilize a full-time professional recruiter
 The recruiter is not professionally trained in interviewing
 The actual plant visit is mishandled
 The recruiter does not get involved in the development of the new employee
 The recruiter does not have the authority to make decisions with regard to
hiring

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Indirect method
 Newspaper advertisements: -Recruitment advertisements more likely to be
read by those seeking local employment.
 Television and radio advertisements: - Reaches a specific population with
minimum waste.A minimum standard of applicant can be guaranteed.

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 Private employment search firms: -
 Helps to the client company for recruitment process
 It Helps to the initial screening process.
 It Helps to the final selection by the organization.
 Employment exchanges: -
 Employing competent and Experienced person, who already working in another
reputed company.
 Gate hiring and contractors: -
 New Employer ready to give attractive packages, better than the current
employer.
 Internet recruiting : -
 Organization used internet as a source of recruitment process.
 Companies advertising their job vacancies through world web.
 Job seekers send their applications through world web.
 It will be Reducing the processing cost and time.
Third party method

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Skills recruiters want in India
 Ability to work in a team
 Analytical and problem solving skills
 Communication and other soft skills
 Creativity and resourcefulness
 Leadership potential
 General Managerial skills
 Entrepreneurial skills

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Alternatives for Recruitments
 Reorganize the work.
 Working overtime.
 Mechanize the work.
 Stagger the hours.
 Make the job part time.
 Sub-contract the work.
 Use the external agency.

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What is Staffing?
 Definition: - “The staffing function pertains to the recruitment , selection,
development, training and compensation of subordinate managers.”
-Theo Haimann
 Staffing means appointing competent persons according to the importance of
the post in the organization.
 It means that more capable persons are appointed on more important posts,
and comparatively less competent persons can be appointed on less
important posts.

Staffing Policies and Programs
Support Activities Core Staffing Activities
Legal compliance Recruitment: External, internal
Planning Selection: Measurement, external, internal
Job analysis Employment: Decision making, final match
Staffing System and Retention Management
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Organization
Mission
Goals and Objectives
HR and Staffing StrategyOrganization Strategy
Staffing Organizations Model

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Purposes of staffing
 Appropriate numbers and mix staff.
 Delivery of effective and efficient service.
 Increase productivity.
 Avoid role confusion, communication problems and time waste.
 Maintain stability in team work.

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Staffing Process
 Staffing process is flow of activities which results in continuous staffing of
organizational positions at all levels.
 Staffing process involves manpower planning, job analysis, job description
recruitment, selection, training and development.
 Figure shows the stages associated with the staffing process.
Manpower
planning Recruitment Selection Training
4321
Staffing Process

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Characteristics
 Related to human beings
 Separate Managerial Function
 Essential at Managerial Levels
 Related to Social Responsibility
 Effect of Internal & External Environment

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 Helpful in Discovering & Obtaining Competent Personnel
 Helpful in Better Performance
 Helpful in continuous Survival & Growth of the Enterprise
 Helpful in Optimum utilization of human resource
 Helpful in improving Job satisfaction & Morale of Employees
Importance of Staffing

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Suggestions for Staffing Practice
 Represent the organization’s interests.
 Beware of conflicts of interest.
 Remember the job applicant.
 Follow staffing policies and procedures.
 Know and follow the law.
 Consult professional codes of conduct.
 Shape effective practice with research results.
 Seek ethics advice.

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 Selection is the process of making choice of individuals possessing the
required qualifications and skills necessary to perform the job successfully
 The process of selection is different in various organizations.
 The decision regarding selection of candidates is based on certain standard
principles.
What is Selection?
Selection procedure a System Approach
 The system approach to selection starts from the position of a well defined
job and a clearly analyzed person specification.
 Therefore setting out the logical steps in the selection process is necessary.
 Selection is not just interviewing but it is a process of de-selecting.
 Organizations make large investment of money to get right kind of people.

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Steps in the Selection Process
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Resume/CVs
review
Initial Screening
Interview
Analysis the application
blank
Conducting tests and
evaluation performance
Preliminary
Interview
Core & departmental
Interviews
Reference
Checks
Job Offer
Medical
Examination
Placement
Offer to the next
suitable candidate
Rejection by
candidate
Acceptance by
the candidate

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Some items that usually appear in
application Form
 Personal Information
 Educational Qualification
 Work Experience
 Desired Salary
 Personality Items
 Reference checks

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Personal Information
 Personal Information includes: -
 Name of Candidate
 Date of Birth of the Candidate
 Gender
 Marital Status
 Details of his/her Family
 Occupations of other Family Members
 Annual income of the Family
 Address
 This would help assess his socio-economic status of the applicant and his
family background.

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Educational Qualification
 Education Qualification includes: -
 List of Schools & colleges
 InstitutionsAttended by the job applicant
 The period of study
 The subjects studied
 The various courses taken
 The percentage of marks scored
 The class or grade secured by him
 This part of the application blank provides relevant information to assess an
applicant’s academic background.

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Work Experience
 Work Experience includes: -
 The list of previous employers
 The period of employment with each
 Tasks, activities and responsibilities of the applicant
 The salaries drawn
 Reasons for leaving
 This provides all the basic information on the applicant’s previous jobs.

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Desired Salary
 Desired salary includes: -
 Information on the salary drawn
 Including benefits
 The salary structure of previous company
 Expected salary
 Looking at the basic salary in isolation might not give the complete picture
about the candidate’s total emoluments.

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Personality Items
 Personality Items includes: -
 Strengths of applicant
 Weaknesses of application
 His professional goals
 His hobbies
 His interests
 This information helps the employer understand the personality of the
applicant.

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Reference checks
 Reference checks includes: -
 Names and addresses of individuals who can be contacted for a
reference check of the applicant
 Getting information on his past record
 Information provided by applicant is cross-checked
 The relevance and validity of the application form also needs, to be checked
and evaluated from time to time.

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Evaluation of Application Forms
 Application forms are evaluated to analyze the information provided by the
applicants, and select the suitable candidates.
 The following methods are used for evaluating the application forms.
 Clinical method: - In this method of evaluation, all the information furnished
by the applicant in the application form is analyzed and inferences are made
about the applicant’s personality
 Weighted method: - The weighted method of evaluation is a statistical
technique. In this method, certain points or weights are assigned to each item
in the application form.
 The weighted application form should differentiate between the
characteristics of successful and unsuccessful employees.

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Selection Tests
 Different types of test are used as selection methods to evaluate an applicant.
 The different types of the selection tests are listed below:-
 IntelligenceTests
 AptitudeTests
 AchievementTests
 SituationalTests
 InterestTests
 PersonalityTests
 PolygraphTests
 Graphology

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Intelligence Tests
 Definition: - Intelligence is defined in different ways by different
psychologists. The intelligence is the reasoning, judgment, memory, and the
power of abstraction.
 These were the first standardized tests developed by psychologists, and are
the most widely used tests.
 An IQ (Intelligence Quotient) test usually measures several factors of
intelligence, such as logical reasoning, analytical skills and general
knowledge.

52
Aptitude Tests
 Aptitude Tests measures an individual’s ability to learn a given job, when
given adequate training.
 They do not test the knowledge or proficiency processed by the individuals,
instead they test his ability to learn, or gain the required proficiency
 For example: - ---Mechanical --- Clerical --- Linguistic
--- Musical ---Academic Ability

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Achievement Tests
 Achievement tests are also termed knowledge tests.
 These tests measure the job-related knowledge of the application.
 Organizations use these tests to identify and select experienced applications.

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Situational Tests
 Situational Tests are generally used in middle and senior level management
selection, to test the applicant’s likely responses to real life business
situations.
 In a group discussion, the group members are usually left to interact on their
own, without any leader or moderator being specified.

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Interest Tests
 Interest Tests is genuinely interested in a job, he is likely to perform better in
that job.
 Interest tests help companies to identify and understand the degree of
interest a candidate has in a job.

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 The Personality of an individuals plays a decisive role in his performance.
 Proficient and knowledgeable employees, who have excellent skills and
intelligence sometimes fail to deliver because of personality problems.
Personality Tests

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 Polygraph tests are conducted to test the validity and truthfulness of an
applicant’s answers, by monitoring the physical changes in his body as he
answers a series of questions.
 The law prohibits the use of such tests for normal employment.
Polygraph Tests

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 Graphology involves examining an individual’s handwriting to access his
personality, emotional characteristics and honesty.
 A graphologist examines the lines, loops strokes and curves in the applicant’s
handwriting to access his personality.
Graphology Tests

Human Resource Management

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