Human Resource Planning

HRP includes the 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
that personnel supply equals personnel demand at the appropriate
point in future. – Terry L. Leap and Michael D. Crino

HRP is the process - including forecasting, developing,

controlling by which a firm ensures that it has the right number of
people at the right places at the right time doing work for which
they are economically most useful. - Geisler
 External and internal factors for Human
Resource Planning
External Internal

Govt- Labour welfare policies, Company policies and strategies linked to overall
Industrial policy, Wages/ Remuneration, Reservation success of the business/ organization. Eg is it
Eg. Factory act, labour laws, various regulations work merger/ expansion. Also could be proactive or
related... reactive to HRP. Even narrow or broad focus on HRM
depending on the growth cycle of company.
Technology- amount of technology embraced and Culture ( influences the decision making pattern of
manpower may be inversely proportional an organization) Eg, significant leaders and trade
union.

Business environment- Market demands/ demands Quality and Skills required in the Human Resources
for goods and services, competition, labour supply in
market (Skills and employability) Outsourcing
available.

Economic conditions – Recession or Boom Time horizon – HRP could be short term for 6
months as in IT company or long term as in
manufacturing firms
HRP Objectives

 Ensure adequate manpower as and when required

 Ensure proper use of existing human resources in the
organization
 Forecast future requirement of human resources with different
levels of skills
 Assess surplus or shortage, if any of human resources available
over a specified period of time
 Anticipate the impact of technology on jobs and requirements for
human resources
 Control the human resources already deployed in the
organization
 Provide lead time available to select and train the required
additional human resource over a specified time period
 HRP Process
Integrate with corporate plan
No scope for error
Focus on vacancies than existing job

HRIS Use of various tools Surplus or deficit

Impetus on internal
supply

Check for arriving at desired For operative Hiring, Exit, Transfer, employment in
outcome of this entire exercise. employees transfer, promotion subsidiary companies, adhoc
Deficiencies be pointed out projects, outplacement and
Serves as guide in future retrenchment plan
Few techniques for demand supply
forecast

Demand Supply forecast

forecast
Managerial judgment HRIS

Trend analysis or Work Replacement charts/

load analysis succession planning
Internal labour supply
Importance of HRP

 Overcomes mismatch in growing unemployment and skill

availability

 Uninterrupted supply of human resources with proper utilization

 Helps to cope with change

 Required for growth, expansion, diversification

 Identify areas of surplus personnel and have them redeployed

 Overall benefit for the organization

Job analysis

Is a formal and detailed examination of jobs and systematic

investigation of the tasks, duties and responsibility.

Work activities

Human behavior

Machines, tools, equipment and work aids

Performance standards
What constitutes a job

Job:- Sales Executive

Task Duties Responsibility
Selling of product Obtaining product
knowledge/ Gaining
customer insight/ Applying
persauasive communication
skills
Invoice System handling, Obtatining A
Stationary, Procedure L
handling L
Report Timely data collection,
A
accuracy, procedure
C
handling
R
O
Channel management Relationship with S
distributor/retailer, S
Collaborative working,
Merchanidising
Market information Data collection,
investigation, verification
Significance of Job analysis

 HRP, Recruitment & Selection

 Employee relations and safety

 Performance appraisal

 Compensation (Job evaluation)

 Training
Methods of collecting information for
job analysis
 Job performance

 Personal observation

 Critical incidents

 Interview

 Panel of experts

 Diary method

 Questionnaire
Job analysis process

1. Organizational analysis

2. Selection of representative positions to be analyzed

3. Collection of job analysis data

4. Preparation of job description

5. Preparation of job specification

Job description and Job Specification
Recruitment
Flippo “ Recruitment is the process of searching for prospective employees
and stimulating and encouraging them to apply for jobs in an organization”.

Yoder “Recruitment is a process to discover the sources of manpower to

meet the requirements of the staffing schedule and to employ effective
selection of an efficient work force”.

Prospecting theory - Advertise job and make it look attractive for

the candidate.

Mating theory – Equilibrium between efforts of company and effort of

job seeker (turning passive job seekers as active; assuming passive job
seeker is already happily employed and will only consider to switch for a
dream job or company)

Note* - Both theories prevail in an organization and mating theory preferred

for significant positions to business.
Objectives of recruitment

i. It helps company to advertise itself and attract talented

people

ii. Provide information to job seekers/candidates

iii. Inform candidates about opportunity

iv. Helps to screen or dissuade unsuitable candidates

v. Obtain maximum number of candidates for making

effective selection
Methods of recruitment (Internal)

i. Promotions & Transfer

ii. Job posting & Job bidding
iii. Employee referrals & Enlistments
iv. Dependents of deceased or disabled employee
v. Recalls
Methods of recruitment (External)

 Campus (Entry level positions, Eg Mgmt Trainee/Engineers)

 Job fairs (Entry/Low-middle level positions)
 Newspapers (Entry/Low-middle level positions)
 Television and radio ads (Low-middle level positions)
 Job portals, website, social media (Entry/Low-middle level
positions)
 Employment Exchange (Entry/Low-middle level positions)
 Private employment Search Firms (Significant middle to
Top level positions)
 Gate hiring and Contractors (Low level positions)
 Walk-ins and unsolicited applicants (Low-middle level
positions)
Process of Recruitment
Internal recruitment
External recruitment
Selection

Selection is the process of choosing the most suitable

persons out of all applicants.

It is a process of weeding out unsuitable candidates

and finally identify the most suitable candidate.

While recruitment involves prospecting whereas

selection is negative in nature as it is about
comparison and choosing suitable candidate by
rejecting unsuitable ones.
 Selection-objective

 To weed out ineligible employees from the list of prospective hires

 To sort out candidates who have the likelihood of success on the
jobs
 To staff the organization with qualified and high calibre candidates
 To reduce the burden of interviewing every single candidate and
reduce cost of recruitment
 Be an EOE (Equal Opportunity Employer)
 Reduce turnover rate
 To evaluate the success of recruitment process
 Selection- process

l on g
n a ll a Hiring
a ti o decision
i n
Elim Medical collaborati
vely by
check,
Reference Line and
Interview-
functional check by HR HR Mgrs
Selection and HR and
test Background
depending check by
Application
form, on job agency
Preliminary profile &
formalizes
interview by HR level
the
executive, also
candidature
depends on level of
the job position
 Types of interview/questions

 Non-directive (Unplanned, random questions)

 Directive (Planned, all candidates given a pre-determined set of
questions, hence there is comparison)
 Situational (Hypothetical, fabricated)
Eg. What would you do, if the ceiling above you, falls near you?
 Behavioural (Real-time at workplace)
Eg. How would you handle an irate customer?
 Stress (To check pressure handling)
Eg. Do you drink and how much?
 Panel (3-5 experts, generally middle-top level job positions,
decision is by consensus)
Induction/Orientation

Induction and Orientation can be used interchangeably, but very

specifically Induction takes place for new joinees in a company,
while Orientation takes place to orient and make existing
employees aware about new technology/ technique / new
training.
Strategic four choices :-
Formal Informal
Individual Collective
Serial Disjunctive
Investiture Divestiture

Induction serves following purposes:-

i. Removes fear
ii. Creates good impression
iii. Source of information
Induction/Orientation programme
Performance Mgmt System
(PMS)

Performance management is a much broader and a

complicated function of HR, as it encompasses activities
such as - goal setting, frequent communication,
continuous progress review, appraisal and feedback
followed by training & development for improved
performance; and for rewarding achievements.

Note - This occurs between subordinate and his

Manager/Supervisor
PMS process
Appraisal

Newstrom, “It is the process of evaluating the performance of

employees, sharing that information with them and searching for
ways to improve their performance’’.

Meaning Performance appraisal is the step where the management

finds out how effective it has been at hiring and placing
employees . A “Performance appraisal” is a process of evaluating
an employee’s performance of a job in terms of its requirements.
Appraisal interview

 Two way communication also discussion on both side

perspectives

 Discuss success and challenges

 Identify areas of improvement

 Constructive feedback to motivate the subordinate

 Agree on action points for the next PMS cycle

PMS versus Appraisal
Appraisal is a sub-set of PMS

Performance Appraisal Performance Management

1.Focus is on top down assessment 1.Stresses on mutual goal setting
through a process of joint dialogue

2.Performed annually 2.Continuous reviews are performed

3. Rating is the essence of it 3. No usage of ratings

4.Focus is on traits 4.Focus is on quantifiable objectives,

values and behaviors

5.Monolithic system 5.Flexible system

6. Are very much linked with pay 6.Is not directly linked with pay
Appraisal methods

Past oriented Future oriented

Rating scale (Behavioral) MBO
Checklist (Behavioral) 360 degree
Forced Distribution 720 degree
Critical incident Assessment centre
(Behavioral)
BARS
Essay (Behavioral)
Approaches to Appraisal
Behaviour oriented Result oriented

No linkage of behavior and Workers are skilled in needed

result, eg Sales person behavior (actions)
Outcome occurs in distant Behaviors and results are
future eg, NASA scientist obviously related. Eg.
Careful checking in
generating error free reports.
Poor result, causes beyond Results show consistent
the performer’s control performance over time; also
Eg. 2 assembly line workers many ways to achieve the
result.
Rating scale method
Checklist method
Forced distribution
Out of
compulsion,
assigns ratee to
any one category
based on
performance
Critical incident

Ineffective Effective
outcomes outcomes
Eg. Asst Plant Manager, Eg. Asst Plant Manager,
stuck with machine lying preventive repair of
idle machine
BARS – Behaviorally anchored
rating scale
360 degree feedback
appraisal
720 degree feedback appraisal
Management by objective

Sales Head VP, target to sell 2 lakhs units of Iphone

GM -North (50,000)GM-South(50,000)GM -East (50,000) GM-West (50,000)

SM (10,000) SM (10,000) SM (10,000) SM (10,000)
SM (10,000)

Mgr, (2,500) Mgr, (2,500) Mgr, (2,500)

Mgr, (2,500)

Exe, (500) Exe, (500) Exe, (500) Exe, (500) Exe, (500)