unit 2-Human resource management

8/12/2019 unit 2-Human resource management

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Human resource planning is the process by whichan organization ensures that it has the rightnumber and kinds of people, in the right places,and at the right times, who are capable ofeffectively and efficiently performing assignedtasks.

It is the process by which managementdetermines how the organization should movefrom its current(human resource)position to itsdesired (human resource) position.


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Human resource planning is alsoknown asman power planning oremployment planning orworkforce planning


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Growing shortages of HR to fill certain jobs

such as Blue collar jobs, entry level whitecollar jobs- E.g.( tool and die makers, craft

workers).

Growing number of retirement options

available to workers


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Rapid change in knowledge are making itdifficult for professionals ,engineers andmanagers to remain at their jobs

Resistance of employees to change and to

relocate

Growing prominence of elf evaluation loyalty

and dedication to the organization


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Improve the utilization of Human resource

planningMatch HR related activities and organisationobjectives

Achieve economies in hiring new workersProvide a better platform for employeedevelopment that makes optimum use ofworkers aptitude


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Expand HR activities and other organizationalunits.

Coordinate different HR managementprograms, such as affirmative action plansand hiring needs.Make more demands on local labour markets

successfully.Promote greater awareness of importanceof sound HR management throughout alllevels of the organisation


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Collection of information

Forecast demand for HRForecast supply of HR

Identify HR gapAction Plans


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1.COLLEXCTION INFORMATIONA.From The External Environment

1. Economy- general and specify industry

2. Technology3. Competition4. Labour markets5. Government regulations

B. From inside the Organisation1. Long range plans2. Business plans3. Current Human Resources4. Government Regulations


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II Forecast HRRequirements(Demand)A. Short and Long Term

B. Aggregate or IndividualPositions

IIl Forecast HR Availability(Demand)

A. Internal SupplyB. External Supply

IV MATCHMatching Demand and Supply


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NO YES

ACTION PLANSVARIANCES END

IF SURPLUS IF SHORTAGE

PROGRAMS TO

DECREASE SUPPLYOR INCREASEDEMAND

PROGRAMS TOINCREASE SUPPLY

OR REDUCEDEMAND

END END

VIIACTION

DECISIONS


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It is the process by which an organisationestimates its future HR needs.

Human forecasting

resource = HR + HRforecasting demands supplies


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An organisation future demand for people iscentral to HR planning .

A variety of forecasting methods candetermine an organizations demand forHRs.The type of forecast used depends on thetime frame and the type of organisation , itssize and dispersion, and the accuracy andcertainty of available information


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External challenges Organizational decisions Workforce factors

1. Economic challenges

2. Socio -political legalChallenges

3. Technologicalchanges

4. Competitors

1. Strategic plans2. Budgets3. Sales and production

forecasts4. New ventures5. Organisation and job

designs

1. Retirements2. Resignations3. Terminations4. Deaths5. Leaves of absence


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Forecasting techniques for HR demands

Judgmental forecasts Statistical Techniques

1. Bottom up (or unit)forecasting

2. Top down forecasting3. Delphi technique4. Nominal group technique

(NGT)

1. Regression analysis2. Productivity ratio

3. Personal ratios4. Time series analysis5. Stochastic analysis


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Simple method

Each unit, department estimates theirown future need of HRSum of these needs is the demand

Approval from management and thento HR planning group.


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Estimates id done by managersDiscussion how the trend, business plans,

economy and other factors will affect theneed for HR.Check the better and worst records and

the decision is madeEstimation is done based on the quality ofinformation given to judgmental experts


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Structured method formed by groupconsensus

Experts dont meet First step is preparing anonymousquestionnaireAsk opinion and the reason for it

Results complied along with secondanonymous questionnaireProcess continuous to have a proper

judgment.


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Improve quality of decision makingMinimize personality conflictsPrevent domination of loudest group


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Not appropriate for quick decisionsPractical difficulties in integrating theexperts opinion


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Several people (managers, experts) sit inconference table and write their suggestion

in sheets independently

All ideas are discussed and ranked by groupvotes 3 to 5 important ones.

NGT more frequently used to identifyorganizational problems and solutions tothose problems


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1. Regression analysis2. Productivity ratio

3. Personal ratios4. Time series analysis5. Stochastic analysis

Refer notes for details


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As with forecasting demand , two basictechniques help forecast internal laboursupply.1. judgmental forecasts

a) Replacement Analysisb) Succession analysis

2.statistical techniquesa) Markov andb) Goal Programming


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Uses replacement charts- visualrepresentation of who will replace whomin the event of a job opening.

This chart helps in quick identification

Incumbents are listed directly under the job title , which helps to estimate what jobs are likely to become vacant.


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Similar to replacementLong term and tends to greater flexibility


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Simple method of predicting the internalsupply of labour for futureHeart of Markov analysis is the transitionprobability matrix which shows the probabilityof employees retaining in job, moving orleaving for that period. This gives the ideahow many will stay back at the end of theyear.Identify lower retention probability but not aproblem solver


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Markov analysis extensionObjective- Optimize goals.


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Lack of top management supportLack of involvement from line managersImproper information systemUncertain organisation factorsTime consuming and expensive


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Recruitment may be defined as theprocess of discovering potential candidate

for actual and anticipated organizationalvacancies.


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Determine organization's long and shortrange needs by job titleStaying informed of job market difficultiesDevelop effective recruiting materialsDevelop a systematic recruitment programObtaining a pool of qualified job applicants


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Record the number and quality ofapplicants

Following up on applicants in order toevaluate the effectiveness of recruitingeffortAccomplishing all of these activities withina legal context


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Determine the exact nee d

Obtain approval

Combine or update job description andsatisfaction

Determine the key performance areas of the job

Consult the recruitment policy and procedure


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Choose the recruitment methods

Implement the decision

Allow sufficient time for response

Screen responses

Draw up a short list of candidates


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External Methods

Advertisements

Special events Recruiting

Other innovative methods

Internal Methods

Job posting and bidding

Skill Inventories

Inside Moon Lighting

Methods of Recruitment


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Job posting and biddingJob posting describe the jobs, locations, payrates and qualifications and encourage all

interested employees to applySkill Inventories

It is a manual or computerized systemdesigned to keep track of employees

experience , education and special abilities.Based on the skills candidates are selectedand contacted.It is time consuming and expensive


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Inside moon lightingIn case of small job or short term need ,which do not involve more work theorganisation would offer to pay bonuses of

various types to people not to on a timepayroll.


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AdvertisementsAdvertising through TV, radio, magazine,trade journals and internet etcCan capture wider audienceTwo types

a. Want Adsb. Blind Ads


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Want AdsIt describes the job and benefits &

identify the employeesThousands of job seekers may apply forone job

Bind adsIt is also known as blind box ad- thecompanies names will not be there onlybox number availability will be there

External Methods


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Special events RecruitingWhen the supply of employees available issmall some organisation use special eventsto attract potential employeesThey may advertise at professional meetings,provide literature, headquarters visit andalso job fairs , native daughter and son days


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Innovative methodTelerecruitingDirect Mail

Point of Sale recruiting messagesPostersDoor Hangers

Bill boardsHot LinesInformation SeminarsWelcome wagon, relocation consultants


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Internal Sources External sources Promotion Transfer Job rotation Rehires and recalls

Employment agencies Walk ins Employees referrals Professional associations Head hunting Educational institutions Temporary help agencies Trade associations and unions Casual or unsolicitedapplicants

RecruitmentSources


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Advantages DisadvantagesINTERNAL SOURCES

Morale of promotee Better assessment of abilities Lower cost for some jobs Motivator for good performance Causes a succession of promotions Have to hire only at entry level

Inbreeding Possible morale problems of those not

promoted Political infighting for promotions Need strong management development

program

EXTERNAL SOURCES

New blood ,new perspectives Cheaper than training a professional No group of political supporters inorganisation already May bring industry insights

May not select someone who will fit May cause morale problems for thoseinternal candidates Longer adjustments or orientation time


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Socialization , or on boarding is a process of adaptationto a new work role

adjustments must be made whenever individualschange jobs

the most profound adjustment occurs when anindividual first enters an organization, i.e., outsideto inside


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socialization stronglyinfluencesemployee performance

and organizational stability

new members suffer anxiety

Socialization does not occurin a vacuum

Individuals adjust to newsituations in similar ways

1 2

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Prearrival Individuals arrive with a set of values,attitudes, and expectations developed from previousexperience and the selection process.

Encounter Individuals discover how well theirexpectations match realities within the organization.Where differences exist, socialization occurs to imbuethe employee with the organizations standards.

Metamorphosis Individuals have adapted to theorganization, feel accepted, and know what is expectedof them.


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It is defined as the process by whichorganization chooses from theapplicants , those people whom theyfeel would best meet the jobrequirement , considering currentenvironmental conditions.


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To evaluate, hire and place job applicantsbased on their both satisfactionto contribute for production in organization

more effectively and efficientlyTo enable the organization to fulfill theirgoalsTo ensure the organizations investments inemployees pays off.To fulfill the hiring goals at specified time


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JOB ANALYSIS

HR PLANS

RECRUITS

SELECTION PROCESS

ORIENTATION TRAINING DEVELOPMENT CAREER PLANNING PERFORMANCEEVALUVATION COMPENSATION COLLECTIVE ACTION HR CONTROL

INPUTS PROCESS OUTPUT


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Step 0 Reception of ApplicantsStep 1 Initial Screening

Step 2 Application blankStep 3 Employment TestsStep 4 Employment Interviews

Step 5 Reference checksStep 6 Physical ExaminationsStep 7 Job Offer Decision

Refer class notes for process diagram


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This step forms the base for selectionprocess

It is two way streetOrganisation selects employees andapplicants select employers

Basic objective is to attract as much asapplicants as possible to get bestcandidates


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Selection process starts with preliminaryscreening

Preselection and elimination is done inthis stageTwo steps

1. Screening Inquiries2.Screening Interviews


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Based on job description and jobspecification elimination is done

Negative decision at this point includeinadequate and inappropriate experienceand education.Other reasons for elimination includesapplicants job history, many brief jobs,numerous courses and seminar instead ofappropriate education


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Before filling the application a briefinterview is taken that is called as initialscreening interview or courtesy interview .In this interview straight forward questionsare asked such as education, experience,salary etc.The HR describes about the job clearly andso those who really serious in applying maygo forward others may withdraw.


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Telephonic interviews, conference callinterviews or videoconferencing canreduce the cost during screeninginterviewsThis helps to avoid misfits and addpotential recruits


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Applicants after screening will be givenapplication form

Application form will be filled in by theapplicants providing information such aspersonal data, employment status,

education and skills, work history, awards,membership and hobbies, references,signature line.


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It is a special type of application blank inwhich each item of information is weightedand scored based on its importance as a

determinant of job sucess


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Bio-data or Resume is the commonmethod where the applicants use to

provide background informationBio-data is also known as CurriculumVitae/ Vitae


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It is mechanism or an instrument thatattempts to measure certain characteristicsof individuals

This test is used for differential placement tothe most suitable job after a person hashired.


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Employment Tests

Psychological tests

1. Intelligence tests

2. Aptitude Tests

3. Personality Tests

4. Interest Tests

5. Situational Tests

Performance Simulation Tests

1. Working Sample2. Assessment Centers



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An interview is a conversation or verbal

interaction , normally between twopeople, for a particular purpose.An interview offers the organization anopportunity to answer the candidates question regarding the job, careeropportunities and company policies


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1. Unstructured or Non directive or Free

2. Structured or patterned3. Mixed or Semi Structured4.Problem-Solving5.Stress- Producing



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Reference and background checks arethose enquiries made of prior employers,co-workers , professional associates, family,friends teachers, schools etcThese checks are done to get information

regarding work performance , skills,competencies, professional status,education, behavior and attitude


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Physical ability tests are designed tomeasure physical strength , agility ,handto eye coordination , as well as general orphysical ability.They serve as the basis for enrolling the

new employee in health related benefits ,including (accident, disability and life)insurance


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Types Purpose1. Strength and fitness testing Measure applicant strength and fitness to

accomplish the job

2. Drug tests Measure the presence of illegal orperformance affecting drugs( athletes ,

government, employees and equipmentoperators

3.Genetic Screening Identifies individual who are hypersensitive toharmful pollutants in the work place

4.Medical Screening Measures and monitors exposure to

hazardous chemicals( miners, factory,workers & researchers)

5. Lie detector test Measures honesty and truthfulness( police,retail store workers)

6. Honesty test Measures attitudes about theft and relatedsubjects(retail workers, banks and securities )


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After the selection has been collectedand reviewed a final hiring decision is

made1.Clinical judgment2. weighted Compromise method

3. Multiple cut-off method


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This method is an informal evaluation ofthe applicants and a subjectiveselection of one of the best person forthe job


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This requires assignment of weights forthe various criteria used in the selectionprocess and the calculation of anaggregate score for each candidate


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The information given by the applicantsshould be reliable and validPredictor is a selection device thatassists organisation in making selectiondecisions.Success of predictor is judged byReliability and Validity


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It is defined as the consistency of measureThe reliability of selection device is thedegree to which it produces dependable orconsistent results


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Test retest reliabilitySubjects are asked to take same test twice

at different times.The results are correlated between the twosets of scores and the reliability is checked

Interrator reliabilityConsistency of rating by differentindividuals


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T he term validity may be defined as theagreement between a test score ormeasure and the quality it is believed tomeasure

Types of Validity

1.Criteria Related (a. Predictive b.Concurrent)2. Content Validity3. Construct Validity

1.Criteria Related Validity


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a. Predictive

It is used in personnel selectionRelation between predictor and criterionData on job performance and original test is

collected and then compared with actual job performance for personnel selectionb.Concurrent/present employee method

The test is conducted between the currentemployees as opposed to job applicantsData is collected as test scores . The relationbetween the predictor and criterion will givethe validity of predictor

1.Criteria Related Validity


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Degree to which a specific test measuresthe construct that is designed to measure.

To what extend the construct correspondsto the job requirements.


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1. Selection Ratio Name of applicants selected

Selection Ratio = Name of applicants considered for selection

2. Base Rate Name of applicants with necessary qualification

Base Rate =f

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unit 2-Human resource management