HRM SP PPT Unit - 2 2021-1
HRM SP PPT Unit - 2 2021-1
MANAGEMENT
UNIT – II
HR Dynamics
Human Resource Planning, Preparing Manpower Inventory, Job
Analysis: Methods, Job Description, Job Specification, Job Design.
HRP(Human Resources Planning)
Human resource planning can be defined as the process of ensuring the right
number of qualified people into the right job at the right time to deliver the
results in an efficient manner. It is the system of matching the available
resources , either internally or externally, with the demand that the organisation
expects to have over a period of time.
1.To maintain the required quantity and quality of human resources required for a
smooth & efficient functioning of the organisation.
2.To forecast the turnover/attrition rates
3.To plan to meet organisational human resource needs at the time of expansion or
diversification
4. To foresee the effects of technological changes
5.To develop the existing human resources to match the HR requirements of the
future.
6.To make contingent plans to handle sudden requirements and situations of
shortfall.
7.To improve the standards ,skill ,knowledge ,ability ,discipline etc.
8.To assess the surplus or shortage of HR and take measures accordingly.
9.To maintain favourable industrial relations
HRP COULD BE SEEN AS A PROCESS.....
There are various techniques varying from simple to sophisticated ones employed in
human resources forecasting. These include:
1.Management judgement
2.Work study method
3.Ratio-Trend analysis
4.Delphi technique
5.Flow methods
6.Mathematical model
4.FORECASTING SUPPLY OF HUMAN RESOURCES
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Nature & Scope of HRP
It present an inventory of existing man power of the organisation. Analysis of this
resource helps in ascertaining the status of the available personnel and to discover
untapped talent presently available with the organisation.
Helps in determining the short fall or surplus of the resource by comparing the
total resource needs with the present supply.
1. HRP meets the organisation need for right type of people in right number at right
times.
2.Maintaining a balance between demand for and supply of HR.
4.HRP helps the organisation create and develop training and succession planning of
employees and manager.
HRP serves as a tool to evaluate the effect of alternative man power actions and
policies.
FACTORS AFFECTING HRP
1.RETRENCHMENT
2.OUTPLACEMENT
3.LAY-OFFS
4.LEAVE OF ABSENCE WITHOUT PAY
5.LOANING
6.WORK SHARING
7.REDUCED WORK HOURS
8.EARLY/VOLUNTRY RETIREMENT
9.ATTRITION
MANPOWER INVENTORY
OR
SUPPLY FORECASTING
OR
PREPARING MANPOWER INVENTORY
The basic purpose of preparing manpower inventory is to find out the size and
quality of personnel available within the organisation to man various positions. Any
organisation has two major sources of supply of manpower , namely: Internal and
External sources.
Internal Sources-------
1.Skill Inventories
• Identify qualified employees for different jobs
•Determine which skills are present or lacking in the organisation
•Assess longer term recruitment ,selection and training in the organisation.
2.Replacement charts
These are the listings of current jobholders and persons who are potential replacements
if an opening occurs.
3.Succession planning
This is the process of identifying ,developing and tracking key individuals for executive
positions
FIGURE REPLACEMENT CHART
4.Analysis of Manning /staffing tables
These are graphic representations of all organisational jobs along with the
numbers of employees currently occupying those jobs and future employment
requirements.
5.Turnover analysis
A detailed turnover analysis of why people leave is essential for meaningful
information regarding loss of manpower in an organisation.
6.Markov analysis
This is a method used for tracking the pattern of employee movements
through various jobs in the organisation. It is mathematical technique that
helps to forecast the availability of internal job candidates in an organisation.
It assumes that the movement of personnel among various job classifications
can be predicted from past movements.
7.Wastage analysis
Manpower wastage is an element of labour turnover. Wastage is severance
from the organisation, which includes voluntary retirement,normal
retirement,resignations,deaths and dismissals.
The various methods of wastage analysis are:
a) Labour turnover index-------
Labour turnover= No. of emp leaving x 100/ avg no. of emp employed
b)Stability index-------
SI=Number with more than 1 year service now x 100/total employed one year
ago
c) Cohort analysis-------
CA= Number remaining at a given time x 100/Number engaged at the start
EXTERNAL SOURCES
• Outside sources- consultant firms or by out sourcing
FACTORS INFLUENCING INTERNAL & EXTERNAL SUPPLY FORECAST
RECRUITMENT
3.Image of organisation
4.Image of job
External factors
1.Demographic factors
Age ,literacy. economic status
2.Labour market
3.Unemployment situation
4.Labour laws
5.Labour consideration
PROCESS OF RECRUITMENT
Recruitment is the process of locating ,identifying and attracting capable applications
for jobs available in an organisation. Accordingly ,the recruitment process comprises
the following five steps.
1.Recruitment planning
2.Strategy development
3.Searching
4.Screening
Internal Sources
1.Present employees
2.Employee referrals
3.Former employees
4.Previous applicants
The success of any recruitment depends upon the procedure followed by the company
while recruiting the members. Jobs with low salary, uninteresting jobs or difficult jobs
cannot be filled up by the company very easily. Every company has to recruit its staff
members but the quantum of recruitment may vary from one company to another
company. The variation may be due to the size of the company, recruitment policy of
the company, nature of the job and the like.
The following trends are being seen in recruitment:
1. HR Poaching/Raiding:
“Buying talent” (rather than developing it) is the latest mantra being followed by the
organizations today. Poaching means employing a competent and experienced person
already working with another reputed company in the same or different industry; the
organization might be a competitor in the industry.
A company can attract talent from another firm by offering attractive pay packages
and other terms and conditions, better than the current employer of the candidate. But
it is seen as an unethical practice and not openly talked about. Indian software and
the retail sector are the sectors facing the most severe brunt of poaching today. It has
become a challenge for human resource managers to face and tackle poaching, as it
weakens the competitive strength of the firm.
2. The Recruitment Industry:
The recruitment industry has four main types of agencies. Their recruiters aim
to channel candidates into the hiring organization’s application process. As a
general rule, the agencies are paid by the companies, not the candidates.
Employee leasing is not a perfect solution for some companies, however, since
workers are not completely under the control of management, communications may
become strained. Conflicts may have to be arbitrated by representatives of the
employee leasing agency. Termination of non-productive workers may not be as
simple as handing out pink slips.
Applicability of Employee Leasing:
The concept of employee leasing can be highly profitable for the company
and the existing staff as:
i. Better product and great customer service are the two most important factors for
growth and prosperity of every company. Remote employees can help you
develop efficient, bug less products and free In-Office or (say) In-House
employees’ time to communicate with customers to understand and design their
requirements efficiently.
ii. Give more time and opportunities to In-Office employees for innovation.
iii. Client Company can have more brains to throw at a job to get it done better
and faster.
iv. Stress-free environment can also play a big role when it comes in meeting tight
deadlines. A fresh brain can work ideally smarter than a talented one. In fact if an
offshore employee is also surrounded by an equally talented Project manager,
Results are golden.
3. Head-Hunters:
Head-hunters are third-party recruiters often retained when normal recruitment
efforts have failed. Head-hunters are generally more aggressive than in-house
recruiters. They may use advanced sales techniques, such as initially posing as
clients to gather employee contacts, as well as visiting candidate offices.
They may also purchase expensive lists of names and job titles, but more often will
generate their own lists. They may prepare a candidate for the interview, help
negotiate the salary, and conduct closure to the search. They are frequently
members in good standing of industry trade groups and associations. Head-hunters
will often attend trade shows and other meetings nationally or even internationally
that may be attended by potential candidates and hiring managers.
4. In-House Recruitment:
Larger employers tend to undertake their own in-house recruitment, using their
Human Resources department. In addition to coordinating with the agencies
mentioned above, in-house recruiters may advertise job vacancies on their own
websites, coordinate employee referral schemes, and/or focus on campus
graduate recruitment. Alternatively a large employer may choose to outsource all
or some of their recruitment process (Recruitment process outsourcing).
5. Recruitment Management System:
Recruitment management system is the comprehensive tool to manage the entire
recruitment processes of an organization. It is one of the technological tools facilitated by
the information management systems to the HR of organizations. Just like performance
management, payroll and other systems,
The features, functions and major benefits of the recruitment management system
are :
1. Structure and systematically organize the entire recruitment processes.
2. Recruitment management system facilitates faster, unbiased, accurate and reliable
processing of applications from various applications.
3. Helps to reduce the time-per-hire and cost-per-hire.
4. Recruitment management system helps to incorporate and integrate the various links
like the application system on the official website of the company, the unsolicited
applications, outsourcing recruitment, the final decision-making to the main recruitment
process.
5. Recruitment management system maintains an automated active database of the
applicants facilitating the talent management and increasing the efficiency of the
recruitment processes.
6. Recruitment management system provides and a flexible, automated and interactive
interface between the online application system, the recruitment department of the
company and the job seeker.
7. Recruitment management system helps to communicate and create healthy
relationships with the candidates through the entire recruitment process.
The Recruitment Management System (RMS) is an innovative information system
tool which helps to sane the time and costs of the recruiters and improving the
recruitment processes.
JOB ANALYSIS
Job?
Concept of Job analysis
Definition of JA
Job Description and Job specification
Process of JA
Methods of Data Collection
Uses of JA
Job Design
JOB ANALYSIS
A job may be understood as a division of total work into positions. A job is a
collection or aggregation of tasks, duties, and responsibilities. Each job is
different from other jobs like peon, supervisor, accountant ,manager etc. A job
may include many positions.
Purposes/Uses
•Grading and classification
•Placement and orientation of new employees
•Promotions and transfers
•Outlining of career path
•Developing work standards
•Counselling of employees
•Delimitation (demarcation) of authority
JOB SPECIFICATION
While job description focuses on the job , job specification focuses on the person
i.e. the job holder. Job specification is a statement of the minimum levels of
qualifications, skills ,physical and other abilities ,experience ,judgement and
attribute required for performing job effectively.
In sum, JS specifies the physical ,psychological, personal ,social and
behavioural characteristics of the job holders.
Purposes/Uses
•Personnel planning
•Performance appraisal
•Hiring
•Training and development
•Job evaluation and compensation
PROCESS OF JOB ANALYSIS
STEP-1 Organising and planning for the programme
Performance appraisal
Job analysis can be sued in performance review to identify and
develop
Goals and objectives
Performance and evaluation
Evaluation criteria's
Duties of probationary/trying perio
Selection Process
Job analysis can be used in selection process in order to identify or
develop
Appropriate salary level for all positions
Job duties that should be included in advertisements of vacant
positions
Minimum requirements for screening applicants
Sections test/ appraisal evaluation forms
Orientation forms for applicants and new hires
Aspects of jobs to be analyzed
Duties and task: The basic unit of a job is the performance of specific tasks and
duties
Environment: This also have a significant on the physical requirements to be able
to perform the job
Tools and equipment: This may include protective clothing and needs to be
specified in a jib analysis.
Relationships: This involves relationship with both external and internal people.
Requirements: A Job Analysis typically only states the minimum requirements to
perform the job. Also involves KSA needed to perform the job.
METHODS OF DATA COLLECTION
•Observation
•Interview
•Questionnaire
•Checklists
•Critical Incidents
•The main purpose of job analysis is thus to collect the data and then to
analyses the data relating to a job.
•A job can be analysed only after it has been designed and someone is already
performing it. The most important thing is job description and job
specification are two products of job analysis plays a major role .
•Job analysis is an anatomy of job explaining the activities within a job .
While job description refers to the activities and duties performed in a job, job
specification specifies the skills and qualification required to perform a job.
•Job analysis is useful for human resource planning, recruitment and selection
, training and development , placement and orientation, job evaluation,
performance appraisal, personnel information, and health and safety.
•The main steps involved in job analysis are to collect data about organisation ,
select representative jobs, collect data , prepare job description, and prepare job
specification.
•The methods used for data collection for job analysis include--- observation
method, interview, questionnaire , checklists, critical incidents, diaries, and
technical conference method.
JOB DESIGN
JOB DESIGN:
By using a variety of tools and techniques we try to find the best way to keep
employees satisfied while maintaining as high as possible productivity,
monetary or otherwise
The goal is job satisfaction, it is the key to successful job design. Everything is
contingent upon job satisfaction.
Job design integrates work content, rewards and the qualifications required for
each job in a way that meets the needs of employees and the organization.
METHODS / TECHNIQUES OF JOB DESIGN
JOB SIMPLIFICATION
jobs are broken down into very small parts where a fragment called “task” is
repeatedly done over and over again by the same individual.
ADVANTAGES
•Employee therefore is paid higher rewards.
•the productivity is high.
• Achieves specialization.
•Training cost to the organization is practically negligible.
•DISADVANTAGES
• a worker is likely to get bored and remain absent frequently. •Quality and
quantity may suffer in the long run due to frustration. •Organization may have
to attract workers by offering higher wages
JOB ENLARGEMENT
Job Enlargement means where two or more simple tasks are combined and
allotted to an employee .
Eg: As in the case of vehicle driver, apart from driving he can undertake the
job of maintenance of the vehicle.
Increases job range, but not depth .
Advantage :
more variety in a job
acquiring additional proficiency.
Dissatisfaction of employees can not be avoided after a long period due to
boredom.
JOB ENRICHMENT
The concept of job enrichment was developed by Fredrik Herzberg in the 1950s.
Job enrichment involves providing an employee with more responsibility for a
job and challenges the individual's skills at work.
Enrichment involves increasing the decision-making authority and encouraging
the employee with their tasks.
• Give people the opportunity to use a variety of skills, and perform different kinds
of work (Rotate Jobs)
Managers force the workers to accept job enrichment, which is not good.
JOB ROTATION
Job rotation refers to a technique where the employee is periodically rotated from
one job to another within the work design.
It involves moving employees among different jobs over a period of time
1) Meaningfulness of work:
Skill variety: Using an appropriate variety of your skills and talents:
Task Identity: Being able to identify with the work at hand as more whole and
complete,.
Task Significance: Being able to identify the task as contributing to something
wider, to society or a group over and beyond the self.
1. Frequent interruption:
o A person who is doing a particular job and get it comfortable suddenly finds
himself shifted to another job or department this interrupts the work in both the
departments
Hackman and Oldham (1976) developed the Job Diagnostic Survey (JDS) which
provides : measures for some job related variables. The study provides certain guidelines
and analysis
of independent variables like core job Characteristics, intervening factors based on
psychological states of people and consideration of dependant variable in terms of
outcome that provides high intrinsic value to the worker.
The Hackman and Oldham Model of Job Design
Skill variety-- different job activities involving several skills and talents.
The job must be identifiable and individual made responsible and accountable with
the job with appropriate authority.
This contributes towards the principle of task identity and task significance.
2. Combine tasks:
Managers must view division of labour and specialization scientifically.
Attention must be paid to combine small jobs or part of job in a whole job so that
workers performing it, feel proud of producing item and thus achieve task identity.
Workers in automobile industry for example should be assigned a job as a group
so that they develop a sense of group identity and achieve skill variety.
3.Establish client identity:
While producing product or creating services, worker does not have direct contact
with the user of product or services. If the managers can achieve this contact, the
workers will be able to get a first hand feedback from the client regarding customer
choice.
He may also be able to modify product or services as per the requirement of the
ultimate user and achieve autonomy and develop skill variety while producing.
This principle is very important and needs vision on the part of managers.
4.Expand job vertically:
Taylor in his scientific management has suggested separation of planning and
doing a job. This has led to workers doing a particular job which has been planned
by the managers with very little or no involvement of workers.
Planning, execution and control therefore, need to be unified and gap between
doing and controlling needs to be reduced. This phenomenon is called “vertical
loading”.
In typical fractionalized organizations, responsibilities and control that formerly
was reserved for higher level of management are now added to the job itself. This
increases workers autonomy in performance of job.
Negative feedback should be avoided and given in the form of suggestion and
be corrective in nature.
2. Telecommuting
Use of computer in jobs.
Eg: Jobs having financial implications like billing, accounting, telemarketing, e-
commerce, graphics, media can be done at home for global organizations.
This method is also known as flexi place.
It isolates employee from team work and personal physical supervision.
Managers need attitude change to incorporate such system in organizational
setting.
Compressed Work Week
work hours can be compressed into five or even four days a week with long hours
of daily work with two or three days free at the week end.
This system gives worker more leisure and higher productivity. Five days a week is
a popular concept in India. This system ensures less absenteeism, more time available
for maintenance of machines & equipment.
It suffers from a disadvantage of high fatigue and boredom due to extended work
days.
Quality Circles
Quality circles is one of the recent concepts of group job design.
It consists of a group of 7 – 10 employees from a unit or across units who have
volunteered to meet together regularly and analyse, make proposals about product
quality, investigate causes and suggest corrective actions. The recommendations of
quality circles are later forwarded to coordinating or steering committee.
Meetings of quality circles are held once in a week or when need arises and are
chaired by supervisors or any of the group members. Leaders are encouraged for a
high degree participation within the group.
Group members are trained in group communication skills, product quality
promotes a sense of belonging, boosts employee morale, accords job security and
develops “we” feeling among group members and enrich organizational culture.
Flexitime
This method allows workers more freedom to select work schedule within the
general guidelines laid down by the organization.
Flexitime stipulates that all workers must be present during the core time so
that interpersonal and inter departmental activities can take place smoothly
Employees can choose timings of work which are convenient to them.
Flexitime method is beneficial to both as individual has freedom to select own
time of work and the organization can attract talented workers.
Quality of worklife Quality of work life refers to high level of satisfaction an
employee enjoys by virtue of job design. Quality of work life is measured by
factors job involvement, job satisfaction, competence, job performance
productivity
JOB SATISFACTION
Job satisfaction indicates the positive and affective responses of employees to their
job environment.
More specifically, job satisfaction indicates employees satisfaction with
1. Nature of work they do. 2. Quality of supervision they receive. 3. Co-workers. 4.
Pay and 5. Promotional opportunities.
Job satisfaction is correlated to job characteristics (skill, variety, autonomy etc) and
to job involvement.
SENSE OF COMPETENCE
Competence involves knowledge, skill and ability. When an individual attains
competence he is more involved in his job because he is intrinsically motivated. By
greater involvement the individual achieves higher degree of competence. Hence
greater the involvement greater is competence. Thus competence and involvement re-
enforces each other.
Equity Theory
Outcomes
refer to the various things the person receives on the job: recognition, pay,
benefits, satisfaction, security, job assignments, and punishments
Inputs
refer to the contributions the person makes to the organization: effort, time, talent,
performance, extra commitment, and good citizenship.
Procedural Justice
Using fair process in decision making and making sure others know that the
process was as fair as possible.
Quality of Work Life