What is HRF?

• For example, you might compute the

number of employees at the end of each of
the last 5 years, or perhaps the number in
each subgroup (like sales, production,
secretarial, and administrative). The aim is
to identify trends that might continue into the
future.
 Ratio analysis
• RATIO ANALYSIS Another simple approach, ratio analysis,
means making forecasts based on the historical ratio between
(1) some causal factor (like salesvolume) and (2) the number
of employees required (such as number of salespeople).
• For example, suppose a salesperson traditionally generates
$500,000 in sales. If the sales revenue to salespeople ratio
remains the same, you would require six new salespeople
next year (each of whom produces an extra $500,000) to
produce a hoped-for extra $3 million in sales.
• Like trend analysis, ratio analysis assumes that productivity
remains about the same for instance, that you can’ t motivate
each salesperson to produce much more than $500,000 in
sales. If sales productivity were to rise or fall, the ratio of sales
to salespeople would change.
 Scatter plot
• THE SCATTER PLOT A scatter plot shows
graphically how two variables such as
sales and your firm s staffing levels are
related. If they are, then if you can forecast
the business activity (like sales), you
should also be able to estimate your
personnel needs.
• For example, suppose a 500-bed hospital
expects to expand to 1,200 beds over the
• next 5 years. The human resource director
wants to forecast how many registered
nurses they ll need. The human resource
director realizes she must determine the
relationship between size of hospital (in
terms of number of beds) and number of
nurses required. She calls eight hospitals
of various sizes and gets the following
figures:
• MARKOV ANALYSIS Employers also use
a mathematical process known as Markov
analysis (or transition analysis ) to forecast
availability of internal job candidates.
Markov analysis involves creating a matrix
that shows the probabilities that
employees in the chain of feeder positions
for a key job
 HRM
Introduction to Human Resource
Management
Topics
Meaning of HRM
Definition of HRM
Scope of HRM
Objectives of HRM
Functions of HRM
Role of HR Manager
Qualities of HR Manager
How do Personnel Management
Is different from HRM
Personnel means persons employed.
personnel management views the man as
economic man who works for money or
salary.
Human resources management treats the
people as human beings having economic,
social and psychological needs.
Personal Objectives

1.Training
Development

2.Placement

3. Compensation

4.Performance Appraisal

5.Follow-up-action
ORGANISATIONAL

1. HR Planning

2. selection

3.Inter personal Relation

4. Assessment
SOCIAL

1. Legal complaint.

2.Benefits

3.Union management
relation
Scope of HRM
Role of HR Manager

Conscience Role Counsellor Mediator

Spokes Man Problem solver Change Agent

Role of HR Manager
Conscience Role
The conscience role is that of a humanitarian who
reminds the management of its morals and
obligations to its employees.

Counsellor
Employees who are dissatisfied with the present job
approach the HR manager for counselling. In addition,
employees facing various problems like marital,
health, children education/marriage, mental, physical
and career also approach the HR managers. The HR
Manager counsels and consults the employees and
offers suggestions to solve/overcome the problems.
The Mediator: As a mediator, the HR
manager plays the role of a peace-maker. He
settles the disputes between employees and
the management. He acts as a liaison and
communication link between both of them.
The Spokesman: He is a frequent spokesman
for or representative of the company.
The Problem-solver: He acts as a problem
solver with respect to the issues that involve
human resources management and overall
long range organisational planning.
The Change Agent: He acts as a change
agent and introduces changes in various
existing programmes.
Qualities of HR Manager

Professional
Personal Attributes
Attributes
Personal Attributes

Intelligent Discriminating Skills

Executing Skills
Intelligence: This includes skills to communicate, articulate,
moderate, understand etc., command over language, mental
ability and tact in dealing with people intelligently, including the
ability to draft agreements, policies etc.
Educational Skills: HR manager should possess learning and
teaching skills as he has to learn and teach employees about
organisational growth, need for and mode of development of
individuals etc.
Discriminating Skills: He should have the ability to discriminate
between right and wrong, between just and unjust, merit and
demerit.
Executing Skills: He/she is expected to execute the
management’s decisions regarding personnel issues with speed,
accuracy and objectivity. He/she should also be able to
streamline the office, set standards of performance, co-ordinate,
control etc.
Professional Attributes

Patience Ability to listen

Interdisciplinary knowledge
Professional Attitudes: Finally, professional
attitude is more necessary particularly in the
Indian context. The HR managers’ job, as in the
case of other managers, is getting
professionalised. He should have patience and
understanding, ability to listen before offering
advice. As mentioned earlier, he should have the
knowledge of various disciplines like technology,
engineering management, sociology, psychology,
philosophy, human physiology, economics,
commerce and law. He must be able to couple his
social justice with a warm personal interest in
people which must be secured by an uncommon
degree of common sense.
Performance Appraisal
So Perform better
 UNIT -II
❖Human Resource Planning
❖Recruitment
❖Training
❖Performance Appraisal
Definition
⚫ Right number of people with right skills at right place at
right time to implement organizational strategies in order
to achieve organizational objectives.
OBJECTIVES OF HRP

⚫ HRP ensures adequate supply of manpower as and when

required .
⚫ HRP ensures proper use of existing human resources in the
organization .
⚫ Forecast future requirement of human resources with different
skills .
⚫ Assess the surplus and shortage of human resources over a
period of time .
⚫ Anticipate the impact of technology on jobs and requirement
of human resources .
⚫ Control the human resources already deployed in the
organisation .
IMPORTANCE OF HRP

⚫ Fulfils corporate need .

⚫ Reduces the labour cost :- It works as a cost saving device . It
maintain a balance between the demand and supply of human
resources.
⚫ Facilitates to increase the skill and ability .
⚫ Provide promotions and other benefits .
⚫ It prepares alterative human resources policy .
⚫ It provides welfare measures to the employees. By way of residential
accommodation, schools, hospitals, recreation, clubs .
⚫ HRP enables the assessment of human resources for future
requirements .
⚫ HRP provides swot analysis of the employee .
⚫ HRP enables organisation to meet the competitors in the market .
⚫ HRP helps for growth and development of the organisation .
HRP Process
⚫ Interfacing with strategic planning and scanning the
environment
⚫ Taking an inventory of the company’s current human
resources
⚫ Forecasting demand for human resources
⚫ Forecasting the supply of HR from within the organization
and in the external labor market
Contd….
⚫ Comparing forecasts of demand and supply
⚫ Planning the actions needed to deal with anticipated
shortage or overages
⚫ Feeding back such information into the strategic planning
process.
Barriers of HRP
⚫ Resistance of Employers and Employees.

⚫ Lack of continual selective hiring / based on merits.

⚫ Lack of extensive training of human resources.

⚫ Lack of employees security.

⚫ Lack of sufficient of decentralization in the organization.

⚫ Compensation not linked to organization performance.

FACTORS OF HRP

Internal factors:-
1) Company policy, 2) HR strategy ,3) Job analysis, 4)
quality of information system, 5) marketing
policy, 6) Trade unions .
External Factors:
⚫ 1)Government policy ,2) Level of Economic
Development ,3) Business environment , 4) Level
of technology , 5)International sources, 6)
Outsourcing .
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Recruitment (Part-2)
 Objectives of Recruitment
• To attract people with multi-dimensional skills and
expertise that suit the present and future organizational
strategies
• To develop an organizational culture that attracts
competent people to the company
• To search competent people to fit with organizational
strategies
• To search for talent globally
• To anticipate and find people for positions that do not exist
yet
 Marriott’s Recruitment Principles
• Aptitude, not skill: Emphasise more on candidates
aptitude and attitude rather than on skill as hiring a person
who has ‘ spirit to serve’ is better.
• Money the top, but: WLB (Work-life-balance), Leadership,
Opportunity for advancement, Quality of work.
• A caring work place is a bottom line issue: Safe, secure
and welcome work place.
• Promote from within: opportunity for advancement is a
powerful retention tool.
• Build the employement brand: Attract employees by
building the brand
Recruitment process
Sources of Recruitment
 Why Internal source of recruitment?
• Internal recruitment can be used as a technique of
motivation
• Loyalty, commitment, a sense of belongingness of the
present employees can be enhanced
• Employees economic needs for promotion and higher
income can be satisfied
• Cost of selection can be minimized
• Period of adaptability to the new environment can be
reduced
• Stability of employement can be ensured
 Why external source of recruitment?

• Suitable candidates with skill, knowledge and talent can

be welcomed
• Candidates can be selected without any pre-conceived
notion
• Diversity can be answered
• Latest knowledge, skill and innovation can be welcomed
into organization
 Modern sources of recruitment
• Walk-in
• Consult-in
• Head-hunting
• Body shopping
• Business alliances
• E-recruitment
Which is more important recruiting or retaining?
• Add image of case
Selection

UNIT-2
 SELECTION PROCESS
Initial screening
Fail to meet minimum
qualification Passed
Completed application
Failed to complete job
application or failed job Passed
specification
Employment test
Failed Test
Passed
Passed Conditional job
Comprehensive interview
offer
Failed to impress
interviewer and / meet
job expectations
Background Examination
Problem if required
encountered
Passed
Reject Applicant
Medical/physical examination if
Unfit to do essential required (conditional job offer
elements of job Able to perform
essential elements
of job

Permanent job offer

 SELECTION METHODS
The Three most Common Methods
used are:

1. Testing

2. Gathering Information

3. Interviewing
 SELECTION METHODS Cont . . .
1. TESTING
Tests measure knowledge, skill,
and ability, as well as other
characteristics, such as personality
traits.

TESTING TYPES

Work
Cognitive Personality Physical Integrity
Ability Test Ability Test
Drug Test Sample
Test Test Testing
 SELECTION METHODS Cont . . .

1. Cognitive Ability 2. Physical Ability

Testing Testing

It measures the learning,

It assesses muscular
understanding, and ability
strength, cardiovascular
to solve problems. e.g. TESTING endurance, and
Intelligence Tests. TYPES
coordination.

3. Personality Testing

It measures the patterns of

thought, emotion, and
behavior. e.g. Myers
Briggs
 SELECTION METHODS Cont . . .

4. Integrity Testing 6. Drug Testing

Normally requires
It is designed to assess
applicants to provide
the likelihood that TESTING
TYPES required sample that is
applicants will be
tested for illegal
dishonest or engage in
substances.
illegal activity.

5. Work Sample Testing

Measures performance on
some element of the job.
 SELECTION METHODS Cont . . .

2. INFORMATION GATHERING:
Common methods for gathering information include
application forms and résumés, biographical data, and
reference checking.
 SELECTION METHODS Cont . . .
Generally ask for information such as
Application address and phone number, education, work
Forms and experience, and special training.
Résumés At the professional-level, similar information
is generally presented in résumés.

Biographical Historical events that have shaped a

Data person’s behavior and identity.

Involves contacting an applicant’s previous

Reference employers, teachers, or friends to learn more
Checking about the applicant Issues with reference
checking
 SELECTION METHODS Cont . . .

3. INTERVIEWS:
The interview is the most frequently used
selection method.
Interviewing occurs when applicants
respond to questions posed by a manager
or some other organizational
representative (interviewer).
Typical areas in which questions are
posed include education, experience,
knowledge of job procedures, mental
ability, personality, communication
ability, social skills.
Selection

Part-2
 Testing:
• Test: A test is basically a sample of a persons behaviour.
• Using a test (or any selection tool) assumes the tool is
both reliable and valid.
• Reliability is a tests first requirement and refers to its
consistency: A reliable test is one that yields consistent
scores when a person takes two alternate forms of the
test or when he or she takes the same test on two or
more different occasions.
• Test validity: The accuracy with which a test, interview,
and so on measures what it purports to measure or fulfills
 How to test reliability?
• You can measure reliability in several ways. One is to administer a
test to a group of people one day, readminister the same test
several days later to the same group, and then correlate the first
set of scores with the second (test-retest reliability estimates.)
• The Scholastic Assessment Test (SAT) is an example. Or,
compare the test taker answers to certain questions on the test
with his or her answers to a separate set of questions on the same
test aimed at measuring the same thing. For example, a
psychologist includes 10 items on a test believing that they all
measure interest in working outdoors. You administer the test and
then statistically analyze the degree to which responses to these
10 items vary together. This is an internal comparison estimate.
(Internal comparison is one reason that you find apparently
 Validity of Testing
• CRITERION VALIDITY Criterion validity involves
demonstrating statistically a relationship between scores
on a selection procedure and job performance of a
sample of workers. For example, it means demonstrating
that those who do well on the test also do well on the job,
and that those who do poorly on the test do poorly on the
job. The test has validity to the extent that the people with
higher test scores perform better on the job.
 Contd...
• CONTENT VALIDITY Content validity is a demonstration that the
content of a selection procedure is representative of important
aspects of performance on the job. For example, employers may
demonstrate the content validity of a test by show_x0002_ing that
the test constitutes a fair sample of the job s content. The basic
procedure here is to identify job tasks that are critical to
performance, and then randomly select a sample of those tasks
to test. In selecting students for dental school, many schools give
applicants chunks of chalk, and ask them to carve something that
looks like a tooth. If the content you choose for the test is a
representative sample of what the person needs to know for the
job, then the test is probably content valid. Clumsy dental
students need not apply.
 Contd...
• Construct validity means demonstrating that (1) a
selection procedure measures a construct (an abstract
idea such as morale or honesty) and (2) that the construct
is important for successful job performance.
 Steps to validate a test:
• 1. Analyze the Job
• 2. Choose the tests
• 3. Administer the tests
• 4. Relate your test scores and criteria
• 5. Cross validate and re-validate
 Types of Tests
• Cognitive tests include tests of general reasoning ability
(intelligence) and tests of specific mental abilities like memory
and inductive reasoning
• INTELLIGENCE TESTS Intelligence (IQ) tests are tests of
general intellectual abilities. They measure not a single trait but
rather a range of abilities, including memory, vocabulary, verbal
fluency, and numerical ability.
• SPECIFIC COGNITIVE ABILITIES There are also measures of
specific mental abilities, such as deductive reasoning, verbal
comprehension, memory, and numerical ability.
• Psychologists often call such tests aptitude tests, since they
 Measuring personality and Interests
• A persons cognitive and physical abilities alone seldom
explain his or her job performance. Other factors, like
motivation and interpersonal skills, are very important. As
one consultant put it, most people are hired based on
qualifications, but most are fired for nonperformance. And
nonperformance is usually the result of personal
characteristics, such as attitude, motivation, and
especially, temperament.
 Big 5 personality Traits
•
• Extraversion: A personality dimension describing someone who
is sociable, gregarious and assertive.
• Agreeableness: A personality dimension that describes someone
who is good natured, co-operative and trusting.
• Conscientiousness: A personality dimension that describes
someone who is responsible, dependable, persistent and
organized.
• Emotional stability: A personality dimension that characterizes
someone as calm, self-confident, secure.
• Openness to experience: A personality dimension that
characterizes someone in terms of imagination, sensitivity and
curiosity.
Situation Judgement Tests
Management Assessment Centers
Simulation Tasks include
contd...
Training Methods
 Kirkpatrick’s Evaluation Criteria
⚫ Level 1 – Reaction
⚫ Did trainees like the training and feel it was
useful
⚫ Level 2 – Learning
⚫ Did trainees learn material stated in the
objectives
⚫ Level 3 – Behavioral
⚫ Are trainees using what was learned back on
the job
⚫ Level 4 – Results
⚫ Are benefits greater than costs
⚫ Case study

⚫ Training planning Larry, a high school kid looking for a summer

job, was hired as a cook at a nearby restaurant. Larry had no
experience working in kitchens, but the supervisor who hired
him, explained that it wasn’t necessary, because they would train
him. On Larry’s first day, he was paired with a Senior Line Cook
by the name of Tyler. Tyler wasn’t especially thrilled with the
idea of having to train a new guy on the busiest night of the
week, and expressed his concerns to the manager. “You’re our
most senior employee, so that makes you the most qualified
person to do the training.” A frustrated Tyler didn’t say much
after that – and aside from giving Larry a nod of
acknowledgement, his only words to him were “watch, and stay
out of my way.”
⚫ By the time the main dinner rush hit, the entire kitchen
line was bustling with activity and Tyler was doing his
best to call orders, time out bills, and cook all at the
same time. As more and more orders came in, the stress
level in the kitchen had increased dramatically. It was
at this point Tyler turned to Larry and barked, “I need
you to run to the fridge and get me more hamburger
meat!” Afraid to ask any questions, Larry quickly
turned to look for the fridge, and as instructed, “ran”
through the kitchen line to get more meat. A cook,
unaware that Larry was coming through, turned to put
up a dish, and collided with Larry. He never heard him
coming.
Questions
⚫ 1. Identify and list all the things that went
wrong on Larry’s first day.
⚫ 2. If an employee is good at their job, does
that automatically make them a good
trainer, and why?
⚫ 3. As a group, come up with 5 top character
traits you would look for in a qualified
trainer.
The justification for training
Formal training is indeed only one of the ways of ensuring that learning takes
place,but it can be justified when:
● the work requires skills that are best developed by formal instruction;
● different skills are required by a number of people, which have to be
developed
quickly to meet new demands and cannot be acquired by relying on
experience;
● the tasks to be carried out are so specialized or complex that people are
unlikely
to master them on their own initiative at a reasonable speed;
● critical information must be imparted to employees to ensure they meet their
responsibilities;
● a learning need common to a number of people has to be met, which can
readily
be dealt with in a training programme, for example induction, essential IT
skills,
communication skills.
OFF the job training:
⚫ Away from the normal work place.
⚫ They provide enjoyable way of learning
skills.
⚫ Bonding of employees increases which
enhances productivity at work place.
Methods

⚫ Role play
⚫ Vestibule Training
⚫ Simulation
⚫ Case study
⚫ Discussion
⚫ Brain Storming
⚫ Field Trip
Training Process