Human Resouce Management TYBMS

(SEM - V)
HUMAN RESOURCE PLANNING
HUMAN RESOURSE PLANNING (HRP):- DEFINATION
1) According to Geisler:- H.R.!aning is t"e #rocess- inc!uding $orecasting%
de&e!o#ing and contro!!ing-'( )"ic" a $irm ensures t"at it "as t"e rig"t num'er o$
#eo#!e and rig"t *ind at t"e rig"t #!aces at t"e rig"t time doing )or* $or )"ic"
t"e( are economica!!( most use$u!+
,) According to Wendell French- H.R.!aning ma( 'e de$inied as t"e #rocess o$
assessing t"e organi-ation.s "uman resources needs in t"e !ig"t o$ organi-ationa!
goa!s and ma*ing #!ans to ensure t"at a com#etent% sta'!e )or* $orce is
em#!o(ed.+
PROCESS OF H.R.P
/it" (ou e0#ansion o$ 'usiness ado#tion o$ com#!e0 tec"no!og( and #ro$essiona!
management tec"ni1ues% t"e #rocess o$ "uman resource #!anning "as assumed
great signi$icance. H.R. consists o$ t"e $o!!o)ing stages.
) An!l"#in$ %r$!ni#!&i%n!l 'l!ns !nd decidin$ %()ec&i*es
+) An!l"#in$ ,!c&%rs ,%r -!n'%.er re/0ire-en&s
a) De-!nd ,%rec!s&in$- $orecasting t"e o&era!! "uman resources
re1uirements in accordance )it" t"e organi-ationa! #!ans.
') S0''l" ,%rec!s&in$- o'taining t"e data and in$ormation a'out t"e
#resent in&entor( o$ "uman resources. and $orecast t"e $uture c"anges in
#resent "uman resource in&entor(.
2) De*el%'in$ e-'l%"-en& 'l!ns
3) De*el%'in$ h0-!n res%0rce 'l!ns
) An!l"#in$ %r$!ni#!&i%n!l 'l!ns !nd decidin$ %()ec&i*es
Be$ore underta*ing t"e "uman resource #!anning o$ an organi-ation t"e
s"ort term and !ong term o'4ecti&es s"ou!d 'e ana!(-ed. T"e #rocess o$
"uman resources #!anning s"ou!d start )it" ana!(-ing t"e organi-ationa!
#!ans. Ana!(sis o$ organi-ationa! #!ans and #rogrammers "e!# in $orecasting
t"e demand $or "uman resources as it #ro&ides t"e 1uantum o$ $uture )or*
acti&it(.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1
Human Resouce Management TYBMS
(SEM - V)
T"e 'usiness #!an )ou!d 'e a '!ue #rint o$ desired o'4ecti&es. T"is
o'4ecti&e stated in economic terms% )ou!d incor#orate t"e gro)t" rate o$ t"e
com#an(% di&ersi$ication #!ans% mar*et o##ortunities and go&ernment
#o!icies. T"ere$ore% "uman resource #!anning s"ou!d meet t)o re1uirements.
A) 7t s"ou!d 'e direct!( re!ated to t"e essentia! nature o$ t"e organi-ation.
') T"e c"anges in t"e se!ected $actor are #ro#ortiona! to c"anges in t"e
"uman resources re1uired in t"e organi-ationa!.
7n t"e sma!! organi-ation% a "uman resource #!anning cou!d 'e $ormu!ated to
co&er t"e )"o!e organi-ationa!. Ho)e&er 7n a !arge organi-ation% si-e ma(
necessitate "uman resource #!anning '( se#arate de#artments.
,) An!l"#in$ ,!c&%rs ,%r -!n'%.er re/0ire-en&s
T"e e0isting 4o' design and ana!(sis ma( t"oroug"!( 'e re&ie)ed *ee#ing
&ie) t"e $uture ca#a'i!ities% *no)!edge% and s*i!!s o$ #resent em#!o(ees. T"e
4o' genera!!( s"ou!d 'e designed and ana!(-ed re$!ecting t"e $uture "uman
resource and 'ased on $uture organi-ationa! #!ans. T"e $actor $or man#o)er
re1uirements can 'e ana!(-ed '( t)o )a(s:-
a) 8emand $orecasting and
') Su##!( $orecasting.
HR DEMAND FORECASTING1
8EMA98 :;RE6AST79< (8:) is t"e #rocess o$ estimating t"e $uture 1uantit( and
1ua!it( o$ #eo#!e re1uired. T"e 'asis o$ t"e $orecast must 'e t"e annua! 'udget
and !ong term cor#orate #!an% trans!ated into acti&it( !e&e!s $or eac" $unctions and
de#artment% 7n a manu$acturing com#an( % t"e sa!es 'udget )ou!d 'e trans!ated
into a #roduction #!an gi&ing t"e num'er and t(#e o$ #roducts to 'e #roduced in
eac" #eriod. :rom t"is in$ormation% t"e num'er o$ "ours to 'e )or*ed '( eac"
s*i!!ed categor( to ma*e t"e 1uota $or eac" #eriod )ou!d 'e com#uted. ;nce t"e
"ours are a&ai!a'!e% determining t"e 1ua!it( and 1uantit( o$ #ersonne! )i!! 'e t"e
!ogica! ste#.
8emand $orecasting must consider se&era! $actors- 'ot" e0terna! as )e!! as
interna!. Among t"e e0terna! $actors are com#etition (:;RE7<9 = 8;MEST76)%
economic c!imate% !a)s and regu!ator( 'odies% c"anges in tec"no!og(% and socia!
$actors. 7nterna! $actors inc!ude 'udget constraints #roduction !e&e!s% ne) #roducts
and ser&ices organi-ationa! structure% and em#!o(ee se#aration. 8: is common
among organi-ations% t"oug" t"e( ma( not do #ersonne! su##!( $orecasting.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,
Human Resouce Management TYBMS
(SEM - V)
DF hel's1
>uanti$(ing t"e 4o's necessar( $or #roducing a gi&en num'er o$ goods% or
o$$ering a gi&en amount o$ ser&ices?
8etermining )"at sta$$-mi0 is desira'!e in t"e $uture?
Assess a##ro#riate sta$$ing !e&e!s in di$$erent #arts o$ t"e organi-ation so as
to a&oid unnecessar( costs?
re&ent storage o$ #eo#!e )"ere and )"en t"e( are needed most ?
Monitor com#!iance )it" !ega! re1uirements )it" regard to reser&ation o$
4o's.
FORECASTING TECHIN2UES &ar( $rom sim#!e to so#"isticated ones. 7t ma( 'e
stated t"at organi-ations genera!!( $o!!o) more t"an one tec"ni1ue.
Di!$r!-13
But as #er our stud( s(!!a'us )e.!! stud( t"e $o!!o)ing tec"ni1ues in detai!:
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 2
Human Resouce Management TYBMS
(SEM - V)
Manageria! 4udgment.
8e!#"i tec"ni1ue.
/or* stud( tec"ni1ue.
Ratio trend ana!(sis.
()MANAGERIAL 4UDGMENT: T"is tec"ni1ue is &er( sim#!e. 7n t"is% managers sit
toget"er% discuss and arri&e at a $igure )"ic" )ou!d 'e t"e $uture demand $or
!a'our. T"e tec"ni1ue ma( in&o!&e a BOTTOM-UP or a TOP-DOWN
a##roac".
7n t"e $irst% !ine managers su'mit t"eir de#artmenta! #ro#osa!s to to# managers
)"o arri&e at t"e com#an( $orecasts. 7n t"e TOP-DOWN a##roac"% to#
managers #re#are com#an( and de#artmenta! $orecasts. T"e $orecasts are
re&ie)ed )it" de#artmenta! "eads and agreed u#on. 9eit"er o$ t"ese a##roac" is
accurate-a com'ination o$ t"e t)o cou!d (ie!d #ositi&e resu!ts. 7n 'ot" t"e
a##roac"es managers are #ro&ided )it" 'road guide!ines. 7n consu!tation o$ HRM
de#artment% de#artmenta! "eads #re#are $orecasts $or t"eir res#ecti&e
de#artments. Simu!taneous!( to# HR managers #re#are com#an( $orecasts. T"is
tec"ni1ue is used in sma!!er organi-ations or in t"ose com#anies )"ere su$$icient
data 'ase is not a&ai!a'!e.
(+)DELPHI TECHNI2UE: 9amed a$ter t"e ancient <REE@ orac!e at t"e cit( o$
8E5H7% t"e 8e!#"i tec"ni1ue is a met"od o$ $orecasting #ersonne! needs. 7t so!icits
estimates o$ #ersonne! needs $rom a grou# o$ e0#erts% usua!!( managers. T"e HR
e0#erts act as intermediar(% summaries t"e &arious res#onses and re#ort t"e
$indings 'ac* to t"e e0#erts. T"e e0#erts are sur&e(ed again a$ter t"e( recei&e
t"is $eed'ac*. Summaries and sur&e(s are re#eated unti! t"e e0#erts. o#inions
'egin to agree. T"e agreement reac"ed is t"e $orecast o$ t"e #ersonne! needs. T"e
distinguis"ing $eature o$ t"e 8e!#"i tec"ni1ue is t"e interaction among e0#erts.
(5)WOR6 STUD7 TECHNI2UE: it can 'e used )"en it is #ossi'!e to a##!( )or*
measurement to ca!cu!ate t"e !engt" o$ o#eration and t"e amount o$ !a'our
re1uired. T"e starting #oint in a manu$acturing com#an( is t"e #roduction 'udget%
#re#ared 7 terms o$ &o!umes o$ 'udgets o$ #roducti&e "ours $or t"e com#an( as a
)"o!e% or &o!umes o$ out#ut $or indi&idua! de#artments. T"e 'udgets o$ #roducti&e
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 3
Human Resouce Management TYBMS
(SEM - V)
ours are t"en com#!ied using standard "ours $or direct !a'our. T"e standard "ours
#er unit o$ out#ut are t"en mu!ti#!ied '( t"e #!anned &o!umes o$ units to 'e
#roduced to gi&e t"e tota! num'er o$ #!anned "ours $or t"e #eriod. T"is is t"en
di&ided '( t"e num'er o$ actua! )or*ing "ours $or an indi&idua! o#erator to s"o)
t"e num'er o$ o#erator re1uired. A!!o)ance )i!! "a&e to 'e made $or a'senteeism
and id!e time. :o!!o)ing is "ig"!( sim#!i$ied e0am#!e o$ t"is #rocedure.
Example1
. Pl!nned %0&'0& ,%r ne8& "e!r +9999 0ni&s
+. S&!nd!rd h%0rs 'er 0ni& :
5. Pl!nned h%0rs ,%r &he "e!r 99999
;. Pr%d0c&i*e h%0rs 'er -!n<"e!r
(All%.in$ n%r-!l %*er&i-e= !(sen&eeis-= !nd +999
Idle &i-e)
:. N0-(er %, direc& .%r>ers re/0ired(;<:) :9
/or* A stud( tec"ni1ue $or direct )or*ers can 'e com'ined )it" ratio ana!(sis to
$orecast $or indirect )or*ers% esta'!is"ing t"e ratio 'et)een t"e t)o categories.
T"e same !ogic can 'e e0tended to an( ot"er categor( o$ em#!o(ees.
(;)RATIO TREND ANAL7SIS: t"is is t"e 1uic*est $orecasting tec"ni1ue. T"e
tec"ni1ue in&o!&es stud(ing #ast ratios% sa(% 'et)een t"e num'er o$ )or*ers and
sa!es in an organi-ation and $orecasting $uture ratios% ma*ing some a!!o)ance $or
c"anges in t"e organi-ation or its met"ods. T"e ta'!e gi&en 'e!o) s"o)s "o) an
ana!(sis o$ actua! and $orecast ratios% 'et)een t"e num'er o$ routine #ro#osa!s to
'e #rocessed '( an insurance com#an(.s under)riting de#artment and t"e
num'er o$ under)riters em#!o(ed cou!d 'e used to $orecast $uture re1uirements.
NO OF
EMPLO7EES
RATIO
7EAR PRODUCTION
INSPECTOR
INSPECTOR 1
PRODUCTION
35 :99
:9
1 9
ACTUAL 3+ ?99 1 9
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce B
Human Resouce Management TYBMS
(SEM - V)
?9
LAST 7EAR +999
?9
1
NE@T 7EAR ++99A
+99B
1
FORECAST B+ +:99A
+9B
1 +
B5 +C:9
+59B
1 +
HR SUPPL7 FORECASTING1
T"e ne0t !ogica! ste# $or t"e management is to determine )"et"er it )i!! 'e a'!e to
#rocure t"e re1uired num'er o$ #ersonne! and t"e sourced $or suc" #rocurement.
T"is in$ormation is #ro&ided '( su##!( $orecasting. Su##!( $orecasting measures
t"e num'er o$ #eo#!e !i*e!( to 'e a&ai!a'!e $rom )it"in and outside an
organi-ation% a$ter ma*ing a!!o)ance $or a'senteeism% interna! mo&ements and
#romotions% )astages and c"anges in "ours and ot"er conditions o$ )or*.
REASONS FOR SUPPL7 FORECAST ARE13
He!#s in 1uanti$( num'er o$ #eo#!e and #ositions e0#ected to 'e a&ai!a'!e in
$uture to "e!# t"e organi-ation rea!i-e its #!an and meet its o'4ecti&es.
He!#s c!ari$( !i*e!( sta$$ mi0es t"at )i!! e0ist in t"e $uture.
Assess e0isting sta$$ing !e&e!s in di$$erent #arts o$ t"e organi-ation.
re&ents storage o$ #eo#!e )"ere and )"en t"e( are most needed.
Monitors e0#ected $uture com#!iance )it" !ega! re1uirements o$ 4o'
reser&ation.
The SF c%*ers13
o E8is&in$ h0-!n res%0rces
o In&ern!l s0''l" !n!l"sis
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce C
Human Resouce Management TYBMS
(SEM - V)
o E8&ern!l s0''l" !n!l"sis
o E@ISTING HUMAN RESOURCES : ana!(sis o$ #resent em#!o(ees is great!(
$aci!itated '( HR audits. HR audits summaries eac" em#!o(ee.s s*i!! and
a'i!ities. T"e audits o$ non-managers are ca!!ed s*i!!s in&entories and t"ose
o$ t"e management are ca!!ed management in&entories. /"ate&er name is
used% an in&entor( cata!ogues eac" em#!o(ee.s s*i!!s and a'i!ities. T"is
summar( gi&es #!anners a com#re"ensi&e understanding o$ t"e ca#a'i!ities
$ound in t"e organi-ation.s )or*$orce.
o INTERNAL SUPPL7 ANAL7SIS : armed )it" HR audits% #!anners can
#roceed )it" t"e ana!(sis o$ interna! su##!(. T"e tec"ni1ues used $or t"e
#ur#ose are:
7. 7n$!o) and out $!o)
77. Turno&er rate
777. 6onditions o$ )or* and a'senteeism
7V. roducti&it( !e&e!
V. Movement among jobs
INFLOW AND OUT FLOW1 7t is t"e sim#!est met"od to $orecast interna!
su##!(.

Ta'!e 3.D #ro&ides an ana!(sis o$ gains and !osses o$ #ersonne! $or a #articu!ar 4o'%
t"at o$ a )ord #rocessor% in a "(#ot"etica! organi-ation. T"e sources o$ !osses and
gains are enumerated and #ro4ected $or a s#eci$ic time #eriod(e.g a $isca!
(ear).tota! !osses (3,) are t"en su'tracted $rom t"e current #ersonne! !e&e!(,BE)
and tota! gains are added(,,) to determine t"e e0#ected !e&e! o$ #ersonne! at t"e
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce F
Human Resouce Management TYBMS
(SEM - V)
end o$ t"e #!anning #eriod(,2E).t"is $igure must 'e &ie)ed in con4unction )it" t"e
antici#ated demand $or )ord #rocessor% in order to determine )"et"er or not
ad4ustments )i!! e1ua! t"e demand.
A ma4or concern associated )it" t"e a##roac" ta*en in ta'!e 3.D is "o) t"e
determination o$ t"e num'er o$ !osses(trans$er% resignation% disc"arges%
disc"arges% #romotion% and so $ort") and gains (#romotion and trans$er)is made.
TURNOVER RATE: Turno&er rate is t"e traditiona! and sim#!e met"od o$
$orecasting interna! su##!(. Stated a!ge'raica!!(% t"e turno&er rate is?
9um'er o$ se#aration during one (ear
------------------------------------------------------- G 1EE
A&g num'er o$ em#!o(ees during t"e (ear
EXAMPLED
i$ in a (ear% 2E out o$ an a&erage $orce o$ 1BE s*i!!ed $itters o$ a com#an( !e$t%(,EH
turno&er)% and t"is trend continued% t"en t"e com#an( )i!! "a&e to recruit 11E
$itters during t"e $o!!o)ing (ear% in order to increase and "o!d t"e !a'our $orce at
,EE in t"at (ear(BE e0tra $itters% #!us 3E to re#!ace ,EH se#arations o$ t"e a&erage
,EE $itters em#!o(ed% #!us ,EH to re#!ace se#arations o$ t"e IEH recruits.)
CONDITIONS OF WORK AND ABSENTEEISM: c"anges in conditions o$ )or*
suc" a norma! )ee*!( )or*ing "ours% o&ertime #o!icies% t"e !engt" and timing o$
"o!ida(s% retirement #o!ic(% t"e #o!ic( $or em#!o(ing #art timers and s"i$t s(stems
need to 'e assessed.
A'senteeism is understood as unaut"ori-ed a'sence $rom )or*. Stated
di$$erent!(% it amounts to a'senteeism )"en an em#!o(ee is sc"edu!ed to )or* 'ut
$ai!s to re#ort $or t"e dut(.
A!ge'raica!!(% a'senteeism is ca!cu!ated t"us:
9um'er o$ #ersons A da(s !ost
-------------------------------------------------------------------- G 1EE
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce D
Human Resouce Management TYBMS
(SEM - V)
A&g num'er o$ #ersons 0 no o$ )or*ing da(s
T"e e$$ect o$ a'senteeism on $uture su##!( o$ !a'our s"ou!d 'e a!!o)ed $or% and
trends in a'senteeism s"ou!d 'e ana!(-ed to trace causes and #rescri'e remedia!
actions.
PRODUCTIVITY LEVEL: an( c"ange in #roducti&it( )ou!d a$$ect o$ #ersons
re1uired #er unit o$ out#ut. 7ncrease in #roducti&it( )i!! reduce t"e re1uirement
and decrease in it )ou!d "a&e t"e o##osite e$$ect. 5et us assume t"e a&erage sa!es
#er #erson in a (ear amounts to rs.BEEEEE. Re&ie)s o$ c"anges in #roducti&it(
!e&e!s re&ea! t"at sa!es #erson "a&e 'een increasing at t"e rate o$ 1EH #er (ear. 7$
ne0t (ear.s #ro4ected sa!es are rs.BEEEEEEE% t"ere )ou!d 'e no need $or 1EE sa!es
#ersons (rs.BEEEEEEE J rs.BEEEEE)% 'ut ra$ter $or on!( I1 sa!es #ersons since )e
e0#ect an increase o$ rs.BBEEEE in #roducti&it( #er #erson.
MOVEMENT AMON !OBS: some 4o's are #ersonne! $or ot"er 4o's. :or e0am#!e%
secretaries ma( 'e o'tained '( t"e #romotion o$ t(#ists and 'ranc" managers are
o'tained $rom a #oo! o$ section managers. 7$ % $or e0am#!e )e antici#ate a need $or
$i&e ne) 'ranc" managers se&en (ears $rom no) more t"an $i&e #otentia! 'ranc"
managers s"ou!d "a&e entered t"e com#an( t"is (ear% assuming t"at se&en (ears
is t"e a&erage de&e!o#ment time. ;'&ious!(% some )i!! 1uit 'e$ore t"e se&en (ears
are u# and ot"ers mat not 1ua!i$( $or #romotion.
o E@TERNAL SUPPL7 ANAL7SIS : t"e organi-ation needs to !oo* out $or
#ros#ecti&e em#!o(ees $rom e0terna! sources. E0terna! sources are
im#ortant $or s#eci$ic reasons?
9e) '!ood and ne) e0#erience )i!! 'e a&ai!a'!e
;rgani-ation needs to re#!enis" !ost #ersonne!
;rgani-ationa! gro)t" and di&ersi$ication creat t"e needs to use
e0terna! sources to o'tain additiona! num'er and t(#e o$ em#!o(ees.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce I
Human Resouce Management TYBMS
(SEM - V)
Sources o$ e0terna! su##!( &ar( $rom industr( to industr(% organi-ation to
organi-ation and a!so $rom one geogra#"ica! !ocation to anot"er. Some
organi-ations ss )"i!e ot"ers ac"ie&ed e0ce!!ent resu!ts $rom consu!tants%
com#etitors or unso!icited a##!ications.
2) De*el%'in$ e-'l%"-en& 'l!ns
A$ter determining t"e num'er o$ #ersonne! $or eac" 4o' in t"e organi-ation%
t"e "uman resource de#artment "as to determine t"e nature 4o' regarding
4o' descri#tion and 4o' s#eci$ication.
a) 4%( descri'&i%n :- A 4o' descri#tion )i!! genera!!( descri'e t"e )or*
#er$ormed t"e res#onsi'i!ities in&o!&ed% t"e s*i!! or training re1uired
condition under )"ic" t"e 4o' is done% re!ations"i# )it" ot"er 4o'.
According to T"e Britis" institute o$ management-a 4o' descri#tion is not
intended to cata!ogue a!! duties in&o!&ed )it" t"e resu!t t"at an em#!o(ee
)ou!d $ee! 4usti$ied in dec!ining to #er$orm an( )or* not inc!uded in
descri#tion. 7t s"ou!d 'e regarded as an out-!ine o$ minimum
re1uirements o$ t"e 4o'% t"us #reser&ing $!e0i'i!it( o$ o#eration+
') 4%( s'eci,ic!&i%n :- T"e 4o' s#eci$ication is an out#ut o$ 4o' descri#tion%
states t"e minimum acce#ta'!e 1ua!i$ications t"at t"e ne) comer must
#ossess to #er$orm t"e 4o' satis$actori!( and success$u!!(% 4o' s#eci$ication
ser&e as an im#ortant too! in se!ection #rocess and e&a!uation. T"e( are
de&e!o#ed '( t"e "uman resource de#artment in consu!tation )it" t"e
di$$erent !ine managers. T"e &arious e!ements o$ 4o' s#eci$ication are:-
a) Minimum $orma! education necessar( to #er$orm t"e 4o'.
') Minimum e0#erience re1uired #er$orming t"e 4o'.
c) Manua!Jmenta! s*i!! re1uired #er$orming t"e 4o'.
d) ersona!it( $actor suc" as #ersona! a##earance %emotiona! sta'i!it(%
maturit(% intiati&e% dri&e and socia'i!it(.
e) :or "ig"-!e&e! 4o's% t"e a'i!it( to assume res#onsi'i!it( is an essentia!
#re-re1uisite.
;) De*el%'in$ h0-!n res%0rce 'l!ns
9et "uman resource re1uirements in num'ers and com#onents are to
'e determined in re!ation to t"e o&era!! "uman resource re1uirement.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1E
Human Resouce Management TYBMS
(SEM - V)
A$ter estimating t"e su##!( and demand o$ "uman resource% t"e
management started ad4ustment )"en t"e interna! su##!( o$
em#!o(ees is more t"an t"e demand "uman resource sur#!us e0ists
and t"e e0terna! recruitment is sto##ed. Besides t"e e0isting
em#!o(ees are encouraged to ta*e &o!untar( retirement. 7t gradua!!(
reduces t"e sur#!us. 7$ "uman resource de$icit e0ists t"en t"e #!anners
"a&e to re!( on t"e e0terna! sources. T"e( t"en #roceed $or scanning
o$ t"e em#!o(ment mar*et $or recruitment #ur#oses. 7$ $uture su##!( o$
"uman resources $orm a!! t"e e0terna! sources is estimated to 'e
inade1uate or !ess t"an t"e re1uirements% t"e man#o)er #!anner "as
to suggest t"e management to a!ter or modi$( oirganisationa! #!an. 7n
case o$ s"ortage o$ certain categories o$ em#!o(ees% t"e organi-ationa!
"as to t"e care not on!( o$ recruitment 'ut a!so retention o$ e0isting
em#!o(ees.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 11
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FACTORS AFFECTING HRP
HR is in$!uenced '( se&era! considerations. T"e more im#ortant o$ t"em are :
i) T(#e and strateg( o$ organi-ation.
ii) ;rgani-ationa! gro)t" and #!anning.
iii) En&ironmenta! uncertainties
i&) Time "ori-ons
&) T(#e and 1ua!it( o$ $ore-casting in$ormation
&i) 9ature o$ 4o's 'eing $i!!ed
&ii) ;$$-!oading t"e )or*
Di!$r!-13
Type and strategy of organization:
T"e t(#e o$ organi-ation is an im#ortant consideration 'ecause it determines t"e
#roduction #rocesses in&o!&ed% num'er and t(#e o$ sta$$ needed% and t"e su#er&isor( and
manageria! #ersonne! re1uired. Manu$acturing organi-ations are more com#!e0 in t"is
res#ect t"an t"ose t"at render ser&ices. T"e strategic #!an o$ t"e organi-ation de$ines t"e
organi-ations HR needs. :or eg% A strateg( o$ interna! gro)t" means t"at additiona!
em#!o(ees must 'e "ired. Ac1uisitions or mergers% on t"e ot"er "and% #ro'a'!( mean t"at
t"e organi-ation )i!! need to #!an $or !a(o$$s. Since mergers tend to create% du#!icate or
o&er!a##ing #ositions t"at can 'e "and!ed more e$$icient!( )it" $e)er em#!o(ees.
rimari!(% t"e organi-ation decides eit"er to 'e #roacti&e or reacti&e in
HR. 7t can eit"er decide to care$u!!( antici#ate t"e needs and s(stematica!!( #!an t"em to
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1,
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$i!! t"em $ar in ad&ance% or it can sim#!( react to needs as t"e( arise o$course care$u!!
#!anning to $i!! HR needs 'etter "e!#s ensure t"at t"e organi-ation o'tains t"e rig"t
num'er o$ HR #eo#!e )it" #ro#er s*i!!s and com#etencies )"en t"e( are needed.
Simi!ar!(% t"e organi-ation must determine t"e 'readt" o$ t"e #!an. Essentia!!(%
t"e organi-ation can c"oose a narro) $ocus '( #!anning one or t)o HR areas suc" as
recruitments oEr se!ection% or it can c"oose a 'road $ocus '( #!anning in a!! areas
inc!uding training% remuneration and so on.
T"e organi-ation must a!so decide u#on t"e $orma!it( o$ t"e #!an. 7t can decide
to "a&e an in$orma! #!an t"at !ies most!( in t"e minds o$ t"e managers and #ersonne! sta$$.
A!ternati&e!(% t"e organi-ation can "a&e a $orma!i-ed #!an )"ic" is c!ear!( s#e!t out in
)riting% 'ac*ed '( documentation and data.
:ina!!(% t"e organi-ation must ma*e a decision on $!e0i'i!it(- t"e a'i!it( o$ t"e
HR #!an to antici#ate and dea! )it" t"e contingencies. 9o organi-ation !i*es "ig" !e&e! o$
uncertaint(. ;rgani-ations see* to reduce uncertainties '( #!anning% )"ic" inc!udes
$orecasting and #redicting #ossi'!e $uture conditions and e&ents HR can contain man(
contingencies% )"ic" re$!ect di$$erent scenarios t"ere'( assuring t"at t"e #!an is $!e0i'!e
and ada#ta'!e.
Organizational growt !y!les and planning:
T"e stage o$ an organi-ation.s gro)t" can "a&e considera'!e in$!uence on HR. Sma!!
organi-ations in t"e em'r(onic stage ma( not "a&e #ersonne! #!anning.
9eed $or #!anning is $e!t )"en t"e organi-ation enters t"e gro)t" stage. HR
$orecasting 'ecomes essentia!. 7nterna! de&e!o#ment o$ #eo#!e a!so 'egins to recei&e
attention in order to *ee# u# )it" t"e gro)t".
A mature organi-ation e0#eriences !ess $!e0i'i!it( and &aria'i!it(. <ro)t" s!o)s
do)n .T"e )or*$orce 'ecomes o!d as $e) (ounger #eo#!e are "ired . !anning 'ecomes
more $orma!i-ed as !ess $!e0i'!e and inno&ati&e. 7ssues !i*e and #ossi'!e retrenc"ment
dominate #!anning .
:ina!!(% in t"e dec!ining stage %HR ta*es a di$$erent $ocus . !anning is done $or
!a(o$$% retrenc"ment and retirement. Since decision.s are o$ten made a$ter serious
$inancia! and sa!es s"oc*s are e0#erienced '( t"e organi-ation% #!anning is o$ten reacti&e
in nature.
En"iron#ental $n!ertainties:
HR managers rare!( "a&e t"e #ri&i!ege o$ o#erating in a sta'!e and #redicta'!e
en&ironment.o!itica!%socia! and economic c"anges a$$ect a!! organi-ations. ersonne! dea!
)it" en&ironmenta! uncertainties '( care$u!!( $ormu!ating recruitment% se!ection and
training and de&e!o#ment #o!icies and #rogrammes .Ba!ancing mec"anisms are 'ui!t into
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 12
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t"e HRM #rogramme t"roug" succession #!anning% #romotion c"anne!s%
!a(o$$s%$!e0itime%4o' s"aring %retirement %VRS and ot"er #ersonne! re!ated arrangements
Ti#e orizons:
Yet anot"er ma4or $actor a$$ecting #ersonne! #!anning in Time "ori-on. ;n one "and% t"ere
are s"ort-term #!ans )"ic" s#read o&er si0 mont"s to (ear. ;n t"e ot"er "and t"ere are
!ong term #!ans )"ic" s#read o&er t"ree to t)ent( (ears . T"e e0act time s#an % "o)e&er
de#ends on degree o$ uncertaint( #re&ai!ing in t"e en&ironment .!ans $or com#anies
o#erating in an unsta'!e en&ironment% com#uters $or e0am#!e % must 'e $or a s"ort #eriod.
!ans $or ot"ers )ere en&ironment is $air!( sta'!e% $or e0am#!e a uni&ersit( #!an% ma( 'e a
!ong-term . 7n genera!% t"e greater t"e uncertaint( %t"e s"orter t"e #!an.s time "ori-on and
&ice &ersa
Type and %$ality of fore&!asting infor#ation:
T"e in$ormation used to $orecast #ersonne! needs originates $rom mu!titude o$ sources. A
issue in #ersonne! #!anning is t"e t(#e o$ in$ormation )"ic" s"ou!d 'e used in ma*ing
$orecasts.
6!ose!( re!ated to t"e t(#e o$ in$ormation is t"e 1ua!it( o$ data used. T"e 1ua!it(
and accurac( !isted in ta'!e 3.Bde#end u#on t"e c!arit( )it" )"ic" t"e organi-ationa!
decision ma*ers "a&e de$ined t"eir strateg( % organi-ationa! structure % 'udget. roduction
sc"edu!e and so $ort" . 7n addition % t"e HR de#artment must maintain )e!!-de&e!o#ed 4o'
ana!(sis in$ormation and Hr in$ormation s(stems (HR7S) t"at #ro&ide accurate and time!(
data . <enera!!( s#ea*ing %organi-ations o#erating in sta'!e en&ironments are in a 'etter
#osition to o'tain com#re"ensi&e% time!( and accurate in$ormation 'ecause o$ !onger
#!anning "ori-ons % c!earer de$inition o$ strateg( and o'4ecti&es% and $e)er disru#tions.
Nat$re of 'o(s (eing Filled :
ersona! #!anners must consider t"e nature o$ 4o's 'eings $i!!ed in t"e organi-ation . Ko'
&acancies arise 'ecause o$ se#aration% #romotion and e0#ansion strategies.

7t is eas( to em#!o( s"o#-$!oor )or*ers% 'ut a !ot sourcing is necessar( $or "iring
manageria! #ersonne!. 7t is% t"ere$ore% necessar( $or t"e #ersonne! de#artment to
antici#ate &acancies % as $ar in ad&ance as #ossi'!e% to #ro&ide su$$icient !ead time to
ensure t"at suita'!e candidates are recruited.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 13
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O$tso$r!ing :
Se&era! organi-ations outsource #art o$ t"eir )or* to outside #arties eit"er in t"e $orm o$
su'-contracting or anci!!arisation. ;utsourcing is a regu!ar $eature 'ot" in t"e #u'!ic
sector as )e!! as in t"e #ri&ate sector . Most organi-ation "a&e sur#!us !a'or and t"e( do
not )ant to )orsen t"e #ro'!em '( "iring more #eo#!e. Hence% t"e need $or %,,3l%!din$
Some organi-ation are *no)n to carr( t"e conce#t o$ o$$-!oading to ridicu!ous
!engt"s. ;ne o$ t"e Banga!ore-'ased #u'!ic sector underta*ing outsources ma4or #art o$ its
)or*% and in t"e #rocess% regu!ar em#!o(ees sit id!e . *ic*'ac*s $rom o)ners o$ anci!!ar(
units are t"e cause $or anci!!arisation . HR is rare!( re1uired in suc" circumstances .
H)*AN RESO)RCE INFOR*ATION S+STE*
A HR7S is a s(stematic #rocedure $or co!!ecting% storing% maintaining% retrie&ing and
&a!idating data needed '( an organi-ation a'out its "uman resources. T"e HR7S is
usua!!( a #art o$ t"e organi-ation.s !arger management in$ormation s(stem (M7S).
T"e HR7S need not 'e com#!e0 or e&en com#uteri-ed. But com#uteri-ation "as its
o)n ad&antage o$ #ro&iding more accurate and time!( data $or decision ma*ing.
T"e areas o$ a##!ication o$ HR7S are man(. Some o$ t"em inc!ude training
management% ris* management% turno&er ana!(sis succession #!anning% $!e0i'!e-
'ene$its administration% com#!iance )it" go&ernment and !ega! re1uirements%
attendance re#orting and ana!(sis% HR% accident re#orting and #re&ention%
strateg( #!anning% $inancia! #!anning and ot"er re!ated areas.
STEPS IN IMPLEMENTING AN HRIS
T"e ste#s out!ined 'e!o) descri'e t"e s#eci$ic #rocedure in&o!&ed in success$u!!(
de&e!o#ing and im#!ementing an HR7S:-
STEP
INCEPTION OF IDEA t"e idea $or "a&ing an HR7S must originate some)"ere. T"e
originator o$ t"e idea s"ou!d #re#are a #re!iminar( re#ort s"o)ing t"e need $or an
HR7S and )"at it can do $or t"e organi-ations.
STEP +
FEASIEILT7 STUD7 $easi'i!it( stud( e&a!uates t"e #resent s(stem and detai!s t"e
'ene$its o$ an HR7S. 7t e&a!uates t"e costs and 'ene$its o$ an HR7S.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1B
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STEP 5
SELECTING A PRO4ECT TEAM once t"e $easi'i!it( stud( "as 'een acce#ted and
t"e resources a!!ocated% a #ro4ect team s"ou!d 'e se!ected. T"e #ro4ect team
s"ou!d consist o$ an HR re#resentati&e )"o is *no)!edgea'!e a'out t"e
organi-ation.s HR $unctions and acti&ities. and a'out t"e organi-ation itse!$ and
re#resentati&es $rom 'ot" management in$ormation s(stems and #a(ro!!. As t"e
#ro4ect #rogresses% additiona! c!erica! #eo#!e $rom t"e HR de#artment )i!! 'e
needed to 'e added.
STEP ;
DEFINING THE RE2UIREMENTS a statement o$ re1uirements s#eci$ies in detai!s
e0act!( )"at t"e HR7S )i!! do. A !arge #art o$ t"e statement o$ re1uirements
norma!!( dea!s )it" detai!s o$ t"e re#orts t"at )i!! 'e #roduced. 9atura!!(% t"e
statement a!so descri'es ot"er s#eci$ic re1uirements. T"is t(#ica!!( inc!udes
)ritten descri#tion o$ "o) users co!!ect and #re#are data% o'tain a##ro&a!s%
com#!ete $orms% retrie&e data% and #er$orm ot"er non-tec"nica! tas*s associated
)it" HR7S use. T"e *e( "ere is to ma*e sure t"at t"e mission o$ t"e HR7S tru!(
matc"es management.s needs o$ an HR7S.
STEP :
FENDOR ANAL7SIS t"is ste# determines )"at "ard)are and so$t)are are
a&ai!a'!e t"at )i!! 'est meet t"e organi-ation.s need $or t"e !o)est #rice. T"is is a
di$$icu!t tas*. T"e 'est a##roac" is usua!!( not to as* &endors i$ a #articu!ar
#ac*age can meet t"e organi-ation.s re1uirements 'ut "o) it )i!! meet t"ose
re1uirements. T"e resu!ts o$ t"is ana!(sis )i!! determine )"et"er to #urc"ase an
Lo$$-t"e-s"e!$. #ac*age or de&e!o# t"e s(stem interna!!(.
STEP G
PAC6AGE CONTRACT NEGOTIATION a$ter a &endor "as 'een se!ected% t"e
contract must 'e negotiated. T"e contract sti#u!ates t"e &endor.s res#onsi'i!ities
)it" regard to so$t)are% insta!!ation% ser&ice% maintenance% training and
documentation.
STEP C
TRAINING training usua!!( 'egins as soon as #ossi'!e a$ter t"e contract "as 'een
signed. :irst% t"e mem'ers o$ t"e #ro4ect team are trained to use t"e HR7S.
To)ards t"e end o$ t"e im#!ementation% t"e HR re#resentati&e )i!! train managers
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1C
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(SEM - V)
$rom ot"er de#artments in "o) to su'mit in$ormation to t"e HR7S and "o) to
re1uest in$ormation $rom it.
STEP ?
TAILORING THE S7STEM t"is ste# in&o!&es ma*ing c"anges to t"e s(stem to
'est $it t"e needs o$ t"e organi-ation. A genera! ru!e o$ t"um' is not to modi$( t"e
&endor.s #ac*age 'ecause modi$ications $re1uent!( cause #ro'!ems. An a!ternati&e
a##roac" is to de&e!o# #rograms t"at augment t"e &endor.s #rogram rat"er t"an
a!tering it.
STEP H
COLLECTING THE DATA #rior to start-u# o$ t"e s(stem% data must 'e co!!ected
and entered into t"e s(stem.
STEP 9
TESTING THE S7STEM once t"e s(stem "as 'een tai!ored to t"e organi-ation.s
needs and t"e data entered% a #eriod o$ testing $o!!o)s. T"e #ur#ose o$ t"e testing
#"ase is to &eri$( t"e out#ut o$ t"e HR7S and to ma*e sure it is doing )"at it is
su##osed to do. A!! re#orts s"ou!d 'e critica!!( ana!(-ed $or accurac(.
STEP
STARTING UP start-u# 'egins )"en a!! t"e current actions are #ut into t"e s(stem
and re#orts are #roduced. 7t is )ise to attem#t start-u# during a !u!! #eriod so t"at
ma0imum #ossi'!e time can 'e de&oted to t"e HR7S. E&en t"oug" t"e s(stem "as
'een tested% some additiona! errors o$ten sur$ace during start-u#.
STEP +
RUNNING IN PARALLEL e&en a$ter t"e ne) HR7S "as 'een tested% it is desira'!e
to run t"e ne) s(stem in #ara!!e! )it" t"e o!d s(stem $or a #eriod o$ time. T"is
a!!o)s $or t"e com#arison o$ out#ut o$ 'ot" t"e s(stem and e0amination o$ an(
inaccuracies.
STEP 5
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1F
Human Resouce Management TYBMS
(SEM - V)
MAINTENANCE it norma!!( ta*es se&era! )ee*s or e&en mont"s $or t"e HR #eo#!e
to $ee! com$orta'!e )it" t"e ne) s(stem. 8uring t"is sta'i!i-ation #eriod% an(
remaining errors and ad4ustments s"ou!d 'e "and!ed.
STEP ;
EFALUATION a$ter t"e HR7S "as 'een in #!ace $or a reasona'!e !engt" o$ time% t"e
s(stem s"ou!d 'e e&a!uated. 7s t"e HR7S rig"t $or t"e organi-ation and is it 'eing
#ro#er!( usedM
B( $o!!o)ing t"e a'o&e mentioned ste#s an HR7S )i!! not guarantee success % 'ut it
)i!! increase t"e #ro'a'i!it(.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1D
Human Resouce Management TYBMS
(SEM - V)
FRS (F%l0n&!r" Re&ire-en& Sche-e)
1. 7t is a t(#e o$ &o!untar( se#aration o$ o!d and un#roducti&e em#!o(ees $rom t"e
organi-ation.
,. 7t is a!so ca!!ed <;58E9 HA98SHA@E !an
2. T"e 'asic #ur#ose o$ VRS is to reduce "ea&( 'urden o$ un)anted man#o)er $rom
t"e s"ou!ders o$ t"e organi-ation
3. VRS is an economica! and time sa&ing met"od $or reducing sur#!us sta$$.
B. VRS is to #a( "e$t( sums and reduce sta$$ strengt" t"an retaining sur#!us !a'our
and continuing to #a( t"em id!e )ages.
C. VRS is #ercei&ed as a #ain!ess and time-sa&ing met"od o$ trimming sta$$ strengt"
easing out un#roducti&e o!der )or*ers.
F. T"is #ractice is $o!!o)ed in t"e #u'!ic sector as )e!! as in t"e #ri&ate sector
organi-ation. Here% t"e com#an( announces VRS and interested em#!o(ees are
as*ed to su'mit a##!ications and &o!untar( retirement $rom t"e organi-ation.
D. VRS is di$$erent $rom dismissa!% remo&a! and retrenc"ment o$ em#!o(ees. Nnder
VRS% "andsome com#ensation is #aid to t"ose )"o o#t to !ea&e J retire.
I. T"e incenti&es ma( 'e in &arious $orms !i*e?
ension and !um# sum gratuit(
5o(a!t( 'onus
Em#!o(ee stoc* o)ners"i# #!ans(ES;)
ri-e and Re)ards
1E.E<- T7S6; "as a##ro&ed success$u! to cut its sta$$ to BB%EEE $rom CD%EEE in B(ears
to im#ro&e e$$icienc(.
D%.nsi#in$13
7t is a term used to indicate t"e measure ta*en $or remo&ing Jreducing sur#!us
em#!o(ees.
8o)nsi-ing means reducing t"e num'er o$ em#!o(ees and ad4usting t"e man#o)er
as #er need so t"at t"e #ro'!em o$ e0cess man#o)er )i!! 'e so!&er smoot"!(.
:or reduction o$ redundant man#o)er suita'!e do)nsi-ing #!an 'e necessar(.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 1I
Human Resouce Management TYBMS
(SEM - V)
Suc" do)nsi-ing )i!! 'e necessar( )"en mar*et demand reduces or )"en ne)
tec"no!og( is introduced.
E.g.: Automation% e0tensi&e use o$ com#uter tec"no!og(.
VRS is a #o#u!ar met"od used '( managements $or do)nsi-ing man#o)er. 7n some
cases% retrenc"ment% termination or com#u!sor( retirement sc"emes )ere used $or
trimming o$ em#!o(ees.
Re&rench-en&13
1. 7t is a sort o$ #ermanent se#aration '( an em#!o(er )it" due notice as #er statutor(
#ro&isions. T"e em#!o(ee is a!so #aid com#ensation.
,. Retrenc"ment o$ em#!o(ees $or economic reasons is 1uite common in 7ndia at
#resent. T"e 7ndustria! 8is#ute Act 1I3F de$ines retrenc"ment as t"e Ltermination
'( t"e em#!o(er o$ t"e ser&ice o$ )or*men $or an( reason. it ma( 'e noted t"at
termination o$ ser&ice as a #unis"ment gi&en or an( disci#!inar( action or
retirement eit"er &o!untari!( or on reac"ing t"e age o$ su#erannuation or continued
i!!-"ea!t" or on t"e c!osure and )inding u# o$ a 'usiness% does not constitute
retrenc"ment.
2. T"e term is a##!ied to continuing o#erations )"ere t"e #art o$ t"e )or*$orce is
$ound to 'e su#er$!uous.
3. T"e #rinci#!e in t"e #rocedure o$ retrenc"ment is t"at t"e !ast #erson em#!o(ed in
eac" categor( must 'e t"e $irst #erson to 'e retrenc"ed i.e. !ast come% $irst go.+
B. As and )"en t"e &acancies arise a$ter retrenc"ment% t"e em#!o(er gi&en an
o##ortunit( to t"e retrenc"ed )or*er to o$$er t"emse!&es $or re- em#!o(ment? and
t"e( are gi&en #re$erence. Suc" &acancies are genera!!( noti$ied at !east 1Eda(s
'e$ore t"e( are $i!!ed u#.
C. Retrenc"ment is un$ortunate $or concerned )or*er as "e 'ecomes unem#!o(ed ti!!
securing a ne) 4o'. 7t creates "ards"i#s to "im as )e!! as to "is $ami!( mem'ers.
Ho)e&er% it is ine&ita'!e )"en t"e organi-ation is $acing serious #ro'!ems.
Pin> Sli'13
1. 7t is an American term t"at is 'eing re$erred to 'eing $ired or !aid o$$ $rom one.s 4o'.
7t is an o$$icia! notice sent to an em#!o(ee in$orming "im t"at (ou "a&e 'een $ired
$rom (our 4o'. S(non(ms to #in* s!i# are dismissa!. T"is means t"e #erson is
remo&ed $rom "is 4o'. 7t is as good as disc"arged% dismissa!% droo#ed or terminated
$rom t"e ser&ice.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,E
Human Resouce Management TYBMS
(SEM - V)
7n t"e NSA% com#anies used to dismiss em#!o(ees '( distri'uting notices #rinted on
#in* s!i#s o$ #a#er. American )or*ers $rom a!! )a!*s o$ !i$e $ear o$ one da( recei&ing
79@ S57S+ $rom t"eir em#!o(ers. T"ere are notices #rinted on #in* #a#er (usua!!(
distri'uted )it" #a(c"ec*s) in$orming em#!o(ees t"at t"eir ser&ices are no !onger
re1uired.
Ter-in!&i%n13
1. 7t is a #ermanent se#aration o$ an em#!o(ee $rom t"e organi-ationa! ru!es%
(dis"onest(% care!essness% drun*enness% etc).
,. 7t is a drastic ste# and s"ou!d 'e ta*en a$ter care$u! t"oug"t. Suc" actions need
su##ort o$ su$$icient reasons.
2. A##ro#riate disc"arge #rocedure must 'e $o!!o)ed. T"e action ta*en s"ou!d 'e a
'one $ide and s"ou!d not 'e a #uniti&e measure or a case o$ &ictimi-ation.
3. 8ismissa! is t"e termination o$ ser&ice o$ an em#!o(ee '( )a( o$ #unis"ment $or
some misconduct or $or unaut"ori-ed and #ro!onged a'sence $rom dut(. 7n
&o!untar( retirement% t"e em#!o(er o$$ers attracti&e #ac*age o$ com#ensation to
t"ose )"o are )i!!ing $or se#aration $rom t"e 4o'.
B. Suc" se#arations are #ain$u! to 'ot" t"e #arties t"ere$ore need to 'e administered
care$u!!( and smoot"!( so t"at 1uarre!s and dissatis$action are a&oided or
minimi-ed.
7n 7ndia% se#arations ta*e #!ace due to !a(- o$$s &o!untar( retirement sc"emes and
retrenc"ment. Se#arations are common in t"e case o$ !oss- ma*ing and sic*
industria! units. E&en inade1uate mar*et demand !eads to do)nsi-ing o$ #roduction
acti&ities and corres#onding se#arations o$ em#!o(ees.
O0&s%0rcin$13
A trend t"at is o'ser&ed ne)!( is outsourcing HR acti&ities. ;utsourcing (a!so ca!!ed
su'contracting) is t"e #rocess '( )"ic" em#!o(ees trans$er routine or #eri#"era! )or* or
anot"er organi-ation t"at s#ecia!i-es in t"at )or* and can #er$orm it more e$$icient!(. T"e
acti&ities t"at are genera!!( outsourced inc!ude em#!o(ee "iring% training and
de&e!o#ment% #a(ro!! #re#aration% 'ene$its administration statutor( records maintenance.
T"e triggers $or outsourcing inc!ude do)nsi-ing% ra#id gro)t" or dec!ine o$ 'usiness%
g!o'a!i-ation% gro)ing com#etition and restructuring.
Some e0ecuti&e assume t"at outsourcing HR acti&ities o$$ers com#etiti&e ad&antage. 7t is
assumed t"at outsourcing can reduce costs% im#ro&e $!e0i'i!it( and #ermit t"e "iring o$
s#ecia!i-ed e0#ertise. Rea!i-ing t"e #otentia! 'ene$its% F,H o$ t"e 7ndian com#anies are
outsourcing t"eir HR acti&ities.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,1
Human Resouce Management TYBMS
(SEM - V)
Ad*!n&!$es %, %0&s%0rcin$
B( trans$erring non- critica! HRM $unctions% t"e organi-ation can concentrate on
critica! HRM $unctions and #er$orm t"em e$$icient!(. HR #ro$essiona!s )i!! not !ose
sig"t o$ critica! HRM $unctions )"en routine and non- critica! $unctions are
outsourced.
er$orming non- critica! HRM $unctions interna!!( is not cost e$$ecti&e as suc"
$unctions #ro&e cost!(.
B; (HR) &endors )it" in$rastructure and re1uisite s*i!!s can #ro&e e$$icient
ser&ices at muc" !ess cost. T"is gi&es 'ene$it to com#anies in regard to
outsourcing.
;utsourcing resu!ts in "ig"er return on in&estment t"roug" signi$icant sa&ings on
o#erationa! and ca#ita! costs.
7n ena'!es organi-ations to $ocus on+core+ acti&ities. T"e( can s"i$t t"eir #o!icies
$rom tactica! contro! to strategic #!anning.
;utsourcing ena'!es organi-ations to e0#!oit more ad&ance tec"no!ogies a&ai!a'!e
)it" t"e su##!ies. T"is im#ro&es 1ua!it( o$ #roduction and creates mar*et
re#utation.
7t "e!#s to undermine t"e #o)er o$ trade unions.
;utsourcing sim#!i$ies organi-ation structures and ma*es t"em $!atter and more
agi!e.
Dis!d*!n&!$es
;utsourcing !eads to 4o' !osses in t"e organi-ation. 5arge sca!e outsourcing !eads to
unem#!o(ment to #eo#!e )it"in t"e countr( in t"e $orm o$ $ees and ser&ices
c"arges.
;utsourcing 'rings cree#ing #ri&ati-ation in t"e #u'!ic sector organi-ation.
8i$$icu!t( is deciding )"at and "o) muc" to outsource.
8e#endence on su##!ier $or &ita! com#onents is undesira'!e and ma( #ro&e
dangerous to t"e main organi-ation )"ere outsourcing is su'stantia!.
8i$$icu!ties in managing ne) re!ations"i#s )it" t"e outsourcing agencies..
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,,
Human Resouce Management TYBMS
(SEM - V)
Pro#otion
Pr%-%&i%n -e!ns !n i-'r%*e-en& in '!"= 'res&i$e= '%si&i%n !nd res'%nsi(ili&ies
%, !n e-'l%"ee .i&hin his<her %r$!nis!&i%n. A mere s"i$ting o$ an em#!o(ee to a
di$$erent 4o' )"ic" "as 'etter )or*ing "ours % 'etter !ocation and more #!easant )or*ing
conditions does not amount to #romotion. T"e ne) 4o' is a #romotion $or t"e em#!o(ee
on!( )"en it carries increased res#onsi'i!ities and en"anced #a(.
Iss0es rel!&in$ &% e-'l%"ee 'r%-%&i%n %,&en ,i$0re in &he ne$%&i!&i%ns (e&.een
e-'l%"ers !nd 0ni%n le!ders. E0& 'r%-%&i%n!l -!&&ers r!rel" le!d &% ! -!)%r
c%n,r%n&!&i%n (e&.een &he-.

P$rposes of Pro#otion
T"e #ur#oses o$ #romotion ma( 'e out!ined as $o!!o)s:
1. To moti&ate em#!o(ees to "ig"er #roducti&it(.
,. To attract and retain t"e ser&ices o$ 1ua!i$ied and com#etent #eo#!e to recogni-e
and re)ard t"e e$$icienc( o$ an em#!o(ee.
2. To increase t"e e$$ecti&eness o$ t"e em#!o(ee and Oo$ t"e organi-ation.
3. To $i!! u# "ig"er% &acancies $rom )it"in t"e organi-ation.
B. To 'ui!d !o(a!t( mora!e and a sense o$ 'e!ongingness in t"e em#!o(ee.
C. To im#ress u#on ot"ers t"at o##ortunities are a&ai!a'!e to t"em too in t"e
organi-ation% i$ t"e( #er$orm )e!!.
A 'r%-%&i%n re'resen&s &he 0l&i-!&e !cc%-'lish-en& ,%r s%-e e-'l%"ees.
Man( ac"ie&e it t"roug" "ard )or* and good #er$ormance. A $e) $o!!o) s"ort cuts to
ac"ie&e t"e desired goa!.
Besides% t"ere are t"ree main c!asses o$ #ersons to )"om a #romotion is !i*e!( to 'e% in
e$$ect% a #s(c"o!ogica! disad&antage.
Firs&= #eo#!e )"o "a&e a!read( ac"ie&ed a modest rise in status and income% and
ac"ie&ed it #ain$u!!(% ma( o$ten $ee! t"at it is 'etter to sett!e $or )"at t"e( a!read( "a&e%
t"an to strugg!e $urt"er.
Sec%nd= t"ere are some #eo#!e )"o cannot easi!( to!erate t"e a!ienation t"at #romotion
o$ten #roduces )it" $ormer #eers )"o sudden!( turn into su'ordinates.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,2
Human Resouce Management TYBMS
(SEM - V)
Third= t"ere are t"ose )"o ma( )is" $or a #romotion% i$ it cou!d 'e "ad on t"e same terms
as e&er(one e!se )"o gets it% 'ut consider it so un!i*e!( to occur or so di$$icu!t to "and!e i$
it did occur on terms t"at "eJs"e does not $anc( $or.,
Prin!iples of Pro#otion
romotion is a d%0(le3ed$ed )ea#on. 7$ "and!ed care$u!!(% it contri'utes to em#!o(ee
satis$action and moti&ation. 7$ mis"and!ed% it !eads to discontentment% $rustration%
s*e#ticism and 'ic*ering among t"e em#!o(ees% and cu!minates in a "ig" rate o$ !a'our
turno&er. 7t is t"e res#onsi'i!it( o$ t"e HR de#artment to !a( do)n a sound #romotiona!
#o!ic( and ensure its im#!ementation. T"e #o!ic( o$ #romotion s"ou!d 'e c!ear on t"e
$o!!o)ing matter:
(i) T"e management must ma*e it c!ear )"et"er to $i!! u# "ig"er #ositions '( interna!
#romotions or recruit #eo#!e $rom outside. <enera!!(% to# #ositions in an organi-ation are
$i!!ed t"roug" e0terna! recruitment. T"e !o)er #ositions% "o)e&er% are $i!!ed u# '(
#romotions $rom )it"in.
(ii) /"en it "as 'een decided to $i!! u# "ig"er #ositions )it" #romotions% a $urt"er decision
on determining t"e 'asis o$ #romotion s"ou!d 'e made '( t"e management. T"e 'asis o$
#romotion ma( 'e seniorit( or merit or 'ot".
7$ seniorit( is t"e 'asis $or #romotion% an em#!o(ee )it" t"e !ongest #eriod o$ ser&ice )i!!
get #romoted% irres#ecti&e o$ )"et"er "e or s"e is com#etent to occu#( a "ig"er #ost or
not. T"is is t"e #ractice $o!!o)ed in unioni-ed industria! esta'!is"ments% go&ernment-
o)ned underta*ings and educationa! institutions.
A 'r%-%&i%n %n &he (!sis %, seni%ri&" h!s -eri&s !nd de-eri&s.

Meri&s1
1. 7t is eas( to administer.
,. T"ere is !ess sco#e $or su'4ecti&it( or ar'itrariness in $i0ing seniorit(.
2. 5a'our unions )e!come seniorit(-'ased #romotions.
3. Seniorit( and e0#erience go "and inP "and and% t"ere$ore% it is rig"t and #ro#er to ma*e
#romotions on
t"is 'asis.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,3
Human Resouce Management TYBMS
(SEM - V)
B. Su'ordinates are more )i!!ing to )or* under an o!der 'oss )"o "as gi&en man( (ears o$
ser&ice to t"e
com#an(.
C. 5o(a!t( is re)arded.
De-eri&s1
Seniorit( is no indication o$ com#etence.
1. 7ns#ite o$ 4udicia! #ronouncement% t"ere is no sing!e criterion $or $i0ing t"e seniorit( o$
an em#!o(ee.
,. Young and com#etent #eo#!e get $rustrated and mig"t !ea&e t"e organi-ation.
7$ c%-'e&ence is &he (!sis ,%r 'r%-%&i%n% an em#!o(ee )"ose #er$ormance is
t"e 'est% as re&ea!ed '( #er$ormance a##raisa!% is #romoted. He or s"e 'eats a!! t"e
ot"ers '( "is or "er merit and is re)arded% 4ust as an at"!ete is re)arded )"en "e or s"e
touc"es t"e ta#e $irst in a 1EE metre das". Suc" a #romotion "as its o)n c"arm 'ecause it
is )on '( "ard)or* and dedication.
T"e merits o$ #romotion '( com#etence are:
1. E$$icienc( is encouraged% recogni-ed and re)arded.
,. 6om#etent #eo#!e are retained 'ecause 'etter #ros#ects are o#en to t"em.
2. roducti&it( increases.

T"e disad&antages o$ #romotion '( merit are:
1. 8iscontentment among senior em#!o(ees.
,. Sco#e $or $a&oritism.
2. 5o(a!t( and !engt" o$ ser&ice are not re)arded.
3. ;##osition $rom union !eaders.
6om#etence is t"e 'etter 'asis 'ecause it re)ards t"ose )"o deser&e it% un!i*e
seniorit( )"ic" resu!ts in t"e #romotion o$ a senior em#!o(ee )"ose on!( 1ua!i$ication%
o$ten% is t"at "e or s"e 4oined t"e organi-ation ear!ier t"an t"e ot"ers.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,B
Human Resouce Management TYBMS
(SEM - V)
7n non-unioni-ed com#anies% #romotions are made on t"e 'asis o$ merit 'ecause t"e
managements o$ suc" com#anies are $ree $rom union #ressures. E&en in unioni-ed
organi-ations% merit is t"e 'asis $or t"e #romotion o$ non-#roducti&e em#!o(ees. Seniorit(
$or #romotion s"ou!d 'e considered on!( )"en t"ere are more t"an one as#irant o$ e1ua!
merit.
(i) Anot"er #oint to 'e made c!ear a'out t"e #o!ic( o$ #romotion is )"et"er to #romote
em#!o(ees against &acancies or non-&acancies. 7n man( industria! esta'!is"ments%
em#!o(ees are #romoted on a non-&acanc( 'asis a$ter t"e( com#!ete a minimum #eriod o$
ser&ice. Suc" #romotions are time-'ound and not 'ased on &acancies or merit.
T"e ot"er #ractice is to !in* #romotions to &acancies. 7n man( esta'!is"ments% t"e
administrati&e sta$$ are #romoted against &acancies. Sometimes% t"ese &acancies are
created to a&oid $rustration among t"e as#irants $or #romotion.
(ii) A #romotion #o!ic( s"ou!d esta'!is" a )e!!-de$ined #romotion c"art% s"o)ing )"o can
go u# to )"at O!e&e! in t"e organisation. T"e #romotion c"art is "ig"!( use$u! to t"e
management 'ecause it c!ears an( sus#icion )"ic" t"e em#!o(ees ma( "a&e and ena'!es
t"e as#irants to ma*e t"emse!&es e!igi'!e $or #romotion. .
To t"e em#!o(er% $re1uent #romotions mean a "ig"er )aged sa!ar( 'i!!% and a tem#orar(
insta'i!it( in t"e organisation.
(i) A #romotion s"ou!d 'e #receded '( a 4o' ana!(sis% and #er$ormance a##raisa!.
(ii) T"e #romotion #o!ic( s"ou!d 'e discussed )it" !a'our unions% and t"eir acce#tance
s"ou!d 'e o'tained in t"e $orm o$ an agreement.
(iii) /"en #romotions are made on t"e 'asis o$ com#etence% o#enings $or #romotion
s"ou!d 'e dis#!a(ed #rominent!( at se&era! #!aces to ena'!e interested #eo#!e to a##!(
T+PES OF PRO*OTION
As a!read( noted% a #romotion in&o!&es an increase in status% res#onsi'i!ities and #a(. But%
in certain cases% on!( t"e #a( increases. 7n ot"er cases% t"e status on!( increases )it"out a
corres#onding increase in #a( or res#onsi'i!ities% romotions ma( 'e c!assi$ied into t"e
$o!!o)ing t(#es:
(i) H%ri#%n&!l Pr%-%&i%n T"is t(#e o$ #romotion in&o!&es an increase in res#onsi'i!ities
and #a(% and a c"ange in designation. But t"e em#!o(ee concerned does not transgress
t"e 4o' c!assi$icaQtion. :or e0am#!e% a !o)er di&ision c!er* is #romoted as an u##er
di&ision c!er*. T"is t(#e o$ #romotion is re$erred to as Ou#gradingO t"e #osition o$ an
em#!o(ee.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,C
Human Resouce Management TYBMS
(SEM - V)
(ii) Fer&ic!l Pr%-%&i%n T"is t(#e o$ #romotion resu!ts in greater res#onsi'i!it(% #restige
and #a(% toget"er )it" a c"ange in t"e nature o$ t"e 4o'. A #romotion is &ertica! )"en a
canteen em#!o(ee is #romoted to an uns*i!!ed 4o'. t"e concerned em#!o(ee natura!!(
transgresses t"e 4o' c!assi$ication.
(iii) Dr" Pr%-%&i%ns 8r( #romotions are sometimes gi&en in !ieu o$ increases in
remuneration. 8esignations are di$$erent 'ut no c"ange in res#onsi'i!ities. T"e #romotee
ma( 'e gi&en one or t)o annua! increments.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,F
Human Resouce Management TYBMS
(SEM - V)
Transfer
A &r!ns,er in*%l*es ! ch!n$e in &he )%( (!cc%-'!nied (" ! ch!n$e in &he 'l!ce %,
&he )%() %, !n e-'l%"ee .i&h%0& ! ch!n$e in res'%nsi(ili&ies %r re-0ner!&i%n.
A trans$er di$$ers $rom a #romotion in t"at t"e !atter in&o!&es a c"ange in )"ic" a
signi$icant increase in res#onsi'i!it(% status and income occurs% 'ut a!! t"ese e!ements are
stagnant in t"e $ormer. Anot"er di$$erence is t"at trans$ers are regu!ar and $re1uent % as
in 'an*s and ot"er go&ernment esta'!is"ments % 'ut #romotion are in $re1uent % i$ not
irregu!ar.
Reasons for transfer
T"e reasons $or trans$ers &ar( $rom organisation to organisation% and $rom indi&idua! to
indi&idua! )it"in an organisation. Broad!( s#ea*ing% t"e $o!!o)ing are t"e reasons $or
trans$ers:
1. T"ere is a s"ortage o$ em#!o(ees in one de#artment or #!ant 'ecause o$ a "ea&(
demand )"ic" necessitates an increase in t"e num'er o$ s"i$ts or e0#ansion o$ #roduction
ca#acit(. /or*ers are trans$erred $rom t"e sur#!us de#artment to anot"er de#artment or
#!ant )"ere t"ere is a s"ortage o$ sta$$.
,. Remo&a! o$ t"e incom#ati'i!ities 'et)een t"e )or*er and "is or "er 'oss and 'et)een
one )or*er and anot"er )or*er.
2. 6orrection o$ $au!t( initia! #!acement o$ an em#!o(ee.
3. A c"ange "as ta*en #!ace in t"e interests and ca#acities o$ an indi&idua!% necessitating
"is or "er trans$er to a di$$erent 4o'.
B. ;&er a #eriod o$ time% t"e #roducti&it( o$ an em#!o(ee ma( dec!ine 'ecause o$ t"e
monoton( o$ "is or "er 4o'. To 'rea* t"is monoton(% t"e em#!o(ee is trans$erred.
C. T"e c!imate ma( 'e unsatis$actor( $or an em#!o(eeOs "ea!t". He or s"e ma( re1uest a
trans$er to a di$$erent #!ace )"ere "is or "er "ea!t" )i!! not 'e a$$ected '( its c!imate.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,D
Human Resouce Management TYBMS
(SEM - V)
F. :ami!( re!ated issues cause trans$ers% es#ecia!!( among $ema!e em#!o(ees. /"en t"e(
get married% t"e $ema!e em#!o(ees )ant to 4oin t"eir "us'ands% and t"is $act necessitates
trans$ers or resignations.

Prin!iples of transfer
T"e management must $rame a #o!ic( on trans$er and a##!( it to a!! t"e trans$ers instead
o$ treating eac" case on its o)n merits. Suc" a #o!ic( must 'e 'ased on t"e $o!!o)ing
#rinci#!es:
1. T"e $re1uenc( o$ trans$ers and t"e minimum #eriod 'et)een trans$ers need to 'e
decided u#on and made *no)n to a!! t"e em#!o(ees. 8e$ence #ersonne! and go&ernment
em#!o(ees% $or e0am#!e% are su'4ected to trans$er once in t"ree (ears.
,. T"e aut"orit( )"ic" )ou!d "and!e trans$ers is to 'e decided u#on. (/"et"er HR or t"e
6entra! H;8).
2. T"e criteria $or entertaining trans$ers need to 'e !aid do)n and strict!( ad"ered to.
3. o!ic( o$ t"e organi-ation o&er )"ic" trans$ers can 'e made need to 'e de$ined.
B. T"e e$$ect o$ t"e trans$er on t"e #a( and seniorit( o$ t"e trans$erred em#!o(ee ma( 'e
c!ear!( e&a!uated.
C. Trans$ers s"ou!d 'e c!ear!( de$ined as #ermanent or tem#orar(.
F .T"e #er$ormance o$ t"e em#!o(ee needs to 'e assessed 'e$ore trans$erring "im or "er
to a di$$erent 4o'.
D. T"e interests o$ t"e organi-ation are not 'e $orgotten in $raming a #o!ic( o$ trans$ers.
Types of Transfer
Broad!( s#ea*ing% trans$ers ma( 'e c!assi$ied into t"ree t(#es:
1. T"ose designed to en"ance training and de&e!o#ment.
,. T"ose ma*ing #ossi'!e ad4ustment to &ar(ing &o!umes o$ )or* )it"in t"e $irm.
2. T"ose designed to remed( t"e #ro'!em o$ #oor #!acement.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce ,I
Human Resouce Management TYBMS
(SEM - V)
S#eci$ica!!(% trans$ers ma( 'e #roduction% re#!acement. &ersati!it(% s"i$t and remedia!.
(i) Pr%d0c&i%n Tr!ns,ers1 As mentioned ear!ier% a s"ortage or sur#!us o$ t"e !a'our $orce
is common in di$$erent de#artments in a #!ant or se&era! #!ants in an organisation. Sur#!us
em#!o(ees in a de#artment "a&e to 'e !aid o$$% un!ess t"e( are trans$erred to anot"er
de#artment. Trans$ers e$$ected to a&oid suc" imminent !a(-o$$s are ca!!ed #roduction.
trans$ers.
(ii) Re'l!ce-en& Tr!ns,ers1 Re#!acement trans$ers% too% are intended to a&oid imminent
!a(Qo$$s% #articu!ar!(% o$ senior em#!o(ees. A 4unior em#!o(ee ma( 'e re#!aced '( a senior
em#!o(ee to a&oid !a(ing o$$ t"e !atter. A re#!acement trans$er #rogramme is used )"en
a!! t"e o#erations are dec!ining% and is designed to retain !ong-ser&ice em#!o(ees as !ong
as #ossi'!e.
(iii) Fers!&ili&" Tr!ns,ers: Versati!it( trans$ers are e$$ected to ma*e em#!o(ees &ersati!e
and com#etent in more t"a!i one s*i!5 6!erica! em#!o(ees in 'an*s% $or e0am#!e% are
trans$erred $rom one section to anot"er o&er a #eriod o$ time so t"at t"e( ma( ac1uire t"e
necessar( s*i!!s to attend to t"e &arious acti&ities o$ t"e 'an*. Versati!e o#erations are
&a!ua'!e assets during rus" #eriods and #eriods )"en )or* is du!!. Versati!e trans$ers ma(
'e used asP a #re#aration $or #roduction or re#!acement trans$ers. .
(i&) Shi,& Tr!ns,ers 1 <enera!!( s#ea*ing% industria! esta'!is"ments o#erate more t"an
one s"i$t. Trans$ers 'et)een s"i$ts are common% suc" trans$ers 'eing made most!( on a
rotation 'asis. Trans$ers ina( a!so 'e e$$ected on s#ecia! re1uests $rom em#!o(ees. Some
re1uest a trans$er to t"e second s"i$t or t"e nig"t s"i$t in order to a&ai! t"e $ree time
during t"e da( to ta*e u# #art time 4o's% a!t"oug" t"is is not #ermitted '( !a).
(&) Re-edi!l Tr!ns,ers 1 Remedia! trans$ers are e$$ected at t"e re1uest o$ em#!o(ees
and are% t"ere$ore% ca!!ed #ersona! trans$ers. Remedia! trans$ers ta*e #!ace 'ecause t"e
initia! #!acement o$ an em#!o(ee ma( "a&e 'een $au!t( or t"e )or*er ma( not get a!ong
)it" "is or "er su#er&isor or )it" ot"er )or*ers in t"e de#artment. He or s"e ma( 'e
getting too o!d to continue in "is or "er regu!ar 4o'% or t"e t(#e o$ 4o' or )or*i(!.g
conditions ma( not 'e )e!!-ada#ted to "is or "er #resent "ea!t" or accident record. 7$ t"e
4o' is re#etiti&e% t"e )or*er ma( stagnate and )ou!d 'ene$it '( trans$er to a di$$erent *ind
o$ )or*.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 2E
Human Resouce Management TYBMS
(SEM - V)
Contra!ting , S$(& Contra!ting
Kust !i*e outsourcing% contracting and su'-contracting are , tec"ni1ues used $or
trans$erring certain 4o's to outside agencies on contractua! 'asis. T"e core
#ur#ose is to reduce t"e cost and to get t"e routine and sim#!e t(#e o$ )or* done
$rom ot"er agencies so t"at t"e time o$ inter&a! )i!! not 'e used $or suc" !ess
im#ortant and re#etiti&e t(#e o$ )or*.
Contra!tors #ay operate as Independent Contra!tors- General !ontra!tors or
S$(&!ontra!tors:
An Inde'enden& C%n&r!c&%r is ! n!&0r!l 'ers%n= (0siness %r c%r'%r!&i%n
&h!& 'r%*ides $%%ds %r ser*ices &% !n%&her en&i&" 0nder &er-s s'eci,ied in
! c%n&r!c& %r .i&hin ! *er(!l !$ree-en&. Unlin> !n e-'l%"ee= !n
inde'enden& c%n&r!c&%r d%es n%& .%r> re$0l!rl" ,%r !n e-'l%"er (0& .%r>s
!s !nd .hen re/0ired= (!sic!ll" li>e ! ,reel!ncer.
A Gener!l C%n&r!c&%r is ! $r%0' %r indi*id0!l &h!& c%n&r!c&s .i&h !n%&her
%r$!nis!&i%n %r indi*id0!l ,%r &he c%ns&r0c&i%n= ren%*!&i%n %r de-%li&i%n %,
! (0ildin$= r%!d %r %&her s&r0c&0res.
A S0(3C%n&r!c&%r is !n indi*id0!l %r !n !$enc" .hich si$ns ! c%n&r!c& &%
'er,%r- '!r& %r !ll %(li$!&i%ns %, !n%&herIs c%n&r!c&. The" !re hired (" !
$ener!l c%n&r!c&%r &% 'er,%r- ! s'eci,ic &!s> !s '!r& %, &he %*er!ll 'r%)ec&.
Ad"antages .
Reduces costs
8i&ision o$ )or*
S#ecia!isation o$ )or*
/or* is com#!eted $aster
Ma*es t"e )or* more con&enient
For e/a#ple-
A 'ui!der ma( gi&e t"e contract o$ co!ouring or ti!ing )or* or #!um'ing )or* to a
contractor% )"o "as to $inis" t"e )or* as #er s#eci$ication and )i!! 'e #aid as #er t"e
amount $i0ed.
:urt"ermore% su##ose t"e contractor "as ta*en t"e #!um'ing contract o$ 1E identica!
'ui!dings. He ma( "ire a su'-contractor to do t"e )or* #art!(. 7n t"is case t"e amount #aid
)i!! 'e decided 'et)een t"e contractor and su'-contractor.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 21
Human Resouce Management TYBMS
(SEM - V)
Con!l$sion
T"e conce#ts o$ contracting% su'-contracting and outsourcing are more or !ess identica!.
Human Resource ;utsourcing (HR;) is gaining ground among 7ndian cor#orate )"o are
!oo*ing at e0#anding t"eir sco#e o$ t"eir ser&ice. HR is getting outsourced to t"ird #art(
#ro&iders )"o o$$er t"e 'ene$it o$ t"eir s#ecia! s*i!!s.
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 2,
Human Resouce Management TYBMS
(SEM - V)
2UESTIONS
5.S.Ra"e4a co!!ege o$ Arts and 6ommerce 22