MAN POWER PLANNING

DEFINITION:

• Coleman:

The process of determining manpower requirements and the means for

meeting those requirements in order to carry out the integrated plan of
the organization.

• Department of Employment 1974:

Strategy for the acquisition, utilisation, improvement and preservation

of an organisation’s human resources.

IMPORTANCE:

• Future personnel needs—surplus and deficiency

• Part of Strategic Planning—planning, hiring, training , remunerating

• Creating highly talented personnel

• International strategies—HR dept. need to fill key jobs with expatriates,

motivate them and compensate them

• Foundation for Personnel function like Recruitment, selection, training etc.

• Increasing investment in Human Resources

• Resistance to change and move

• Upper management has better view of the HR dimension of business

decisions.

• Personnel cost may be less because the management can anticipate

imbalances.

• Better planning of assignments to develop managers

• Facilitates succession planning

FACTORS AFFECTING MPP:

• Type and strategy of Organization

• Organizational growth cycles and planning

• Environmental Uncertainties

• Time horizons- short term and long term

• Attrition Rate and level of business.

• Nature of jobs being filled—both for shop floor workers and managerial
positions. Sufficient Lead Time

• Off-loading the work

PROCESS OF MPP:

• Environmental Scanning- Technological changes, demographic changes,

political and legislative issues.

• Organizational Objectives and Policies

• HR demand forecast to estimate quality and quantity of people required

• HR demand forecast to estimate quality and quantity of people required.

Various forecasting techniques adopted –

• Managerial Judgment - In this managers sit together, discuss and arrive at

a figure which would be future demand for labour. It involves “bottom-up” or
“top-down” approach.

• Ratio Trend Analysis—It involves studying past ratios and forecasting

future ratios, making some allowance for changes in organization or its
methods.

• Regression Analysis-Relationship between sales volume and employee

size.

• Flow Models- Herein forecasters determine the time that should be covered.
Linked to HR Plan and Organizational Strategy.

Establish categories or “State“ to which employees can be assigned. Count

annual movement called” flows among states defined as “ Absorbing” ( Gain
 or losses to the company) or“ Non Absorbing” (change in position level or
employment status ). Losses include death, disability, absence, resignation
and retirement. Gains include hiring, rehiring, transfer etc.

HR SUPPLY FORECAST:

It determines whether the HR dept. will be able to procure the required no. of
personnel. It measures no. of people likely to be available from within and outside
the organization.

SKILLS INVENTORY:

Skill Inventory consolidates information about non managers in the Organization for
the purpose of Transfer and Promotions e.g. Personal data, skills, special
qualification, salary and job history etc.

JOB ANALYSIS
DEFINITION:

Job Analysis is the process of studying and collecting information relating to the
operations and responsibilities of a specific job. The immediate products of this
analysis are job descriptions and job specifications.

STEPS INVOLVED:

• Collecting and recording job information

• Checking the job information for accuracy.

• Writing job description based on the information

• Using the information to determine the skills, abilities and knowledge that are
required on the job.

• Updating the information from time to time.

PROCESS OF JOB ANALYSIS:

• Strategic Choices-Extent of Employee involvement in Job Analysis, Level of

Details of the Analysis, Timing and Frequency of Analysis, Sources of Job data

• Information Gathering-Types of data( work related, machine, tools,

equipments used) Methods employed ( Observation, interview
questionnaires, checklists etc). Person responsible for collecting the
data(Trained Analyst, Supervisors, Job Holder)

• Processing Information- Job related data are useful to prepare Job

description and Job Specification.

PURPOSE OF JOB ANALYSIS:

• Direct impact on Personnel Functions such as: HRP—determines as to how

many and what type of personnel will be needed in near future.

• Recruitment & Selection—Recruitment needs to be preceded by Job Analysis.

• Training and Development-The program to be designed depending on job

requirement.

• Job Evaluation— Determination of relative worth of each job is done mainly

on the basis of Job Description and Job Specification.

• Remuneration– Wage and salary grades for all employees are determined by
Job Evaluation.

• Performance Appraisal—Job Analysis facilitates P. Appraisal as it helps fix

standards for performance in relation to which actual performance of an
employee is compared and assessed.

• Personnel Information—Job Analysis is vital in building various personal

information which are technically maintained.

• Safety and Health—process helps to identify hazardous condition and

unhealthy factors.
 • Support from Top Management—In most of the cases management support
is missing. Full and honest participation is required. Non communication
creates such perception.

• No Training or Motivation—Job holders are not motivated to generate quality

data for job analysis. Further no reward for providing accurate information.

• Activities may be distorted– Lack of Training and preparedness results in

submitting distorted data.

JOB DESCRIPTION:

It implies objective listing of the job title, tasks, duties, and responsibilities involved
in a job. Contains statement containing items like working conditions, supervision
given or received, hazards involve etc.

JOB SPECIFICATION:

A statement of human qualification necessary to do the job. Contains items such as

education , experience, training, judgment, initiative, physical effort etc.
 RECRUITMENT AND SELECTION
DEFINITION OF RECRUITMENT:

The process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applicants from which new employees are
selected.

PURPOSE AND IMPORTANCE OF RECRUITMENT:

• Determine present and future requirements of the organization.

• Increase the pool of job candidates at minimum cost.

• Help increase the success rate of the selection process by reducing the
number of visibly under qualified or overqualified job applicants.

FACTORS AFFECTING RECRUITMENT:

EXTERNAL:

• Supply and Demand—High demand for particular skill in market requires

extraordinary recruiting effort.

• Unemployment Rate: Higher rate leads to better opportunity for attracting

qualified professionals.

• Political and Legal considerations: Reservations, minorities, courts judgments

etc.

• Company’s image: perception of job-seekers about the company that matters

in attracting qualified professionals.

INTERNAL:

• Recruitment Policy– External vs. Internal, Temporary vs. Part time and local
citizens.

• HRP– Examine the alternatives for appropriate sources of recruitment and

most effective method.

• Size of the organization:The greater the size the problems faced in recruiting
and vice versa.
 • Cost of recruitment: calculated per new hire, budgetary control, recruiting for
multiple job openings at a time reduces cost.

RECRUITMENT PROCESS:

1. Recruitment Planning

2. Strategy Development

3. Searching

4. Screening

5. Evaluation and Control

1. RECRUITMENT PLANNING:

• Number of Contacts: Attracting more applicants than then they will hire.

• Yield Ratio ( yRs): indicate relationship of applicant inputs to outputs at

various decision point.

• Types of contact: available through job description and job specification.

2. STARTEGY DEVELOPMENT:

• “Make or Buy”– Hire less skilled workforce and train them or hire skilled
workforce and personnel and pay heavy remuneration.

• Technological sophistication: job seekers gain better access, videotapes CDs,

Job Portals etc. Wider scope at screening stage.

• Where to look: depends on factors like location, state of labour market etc.

( local shortage of blue collar employees compels organization to conduct

regional recruiting campaigns for these employees).

• How to look: Internal and external source

SOURCES – INTERNAL:

o Present Employees: through promotions and transfers. Promotions

require:

o Job Posting: notifying vacant positions, circulating publications etc.

o Personnel Records: To discover employees who are doing jobs below

their qualification.

o Skill Banks: Listing of current employees who have specific skills.

o Employee Referrals: Through existing employees the new recruits are

appointed. Companies have the benefit of low cost and large pool of
potential organizational members. However possibility of inbreeding
cannot be ruled out.

o Former Employees: retired employees willing to come back to work on

part-time basis. Individuals come back for higher emoluments.

o Previous applicants: can be contacted through mails, walk-ins etc.

SOURCES - EXTERNAL:

o Professional and Trade Associations: for attracting highly educated

and skilled personnel.

o Advertisements: Benefit of wide reach to recruiters.

Want ads: describes job and benefits, identification of employer and

guidelines for application.

o Employment Exchange: Guided by the provisions of Employment

Exchange (compulsory notification of vacancies) Act 1959.useful for
blue-collar and technical workers.

o Campus Recruitment.

o Walk-ins, Write-ins :Direct application and submission of

resumes.Write-ins involves written enquiries.

o Consultants: Agencies retained by organizations for recruiting and

selecting managerial and executive personnel.

o Contractors: Recruiting casual workers.

 o Displaced persons: As a part of social responsibility of business, such
people act as source of recruitment for projects which led to
displacement

OTHER SOURCES OF EMPLOYEES:

• Acquisitions and Mergers: Requires handling large pool of employees, new

and old jobs staffed by drawing best qualified applicants.

• Competitors: Involves Poaching and Raiding. Involves legal and ethical issues.

• E-Recruiting: Managing processes like screening, background checks and

interviews through web based software.

3. SEARCHING:

• Verification of vacancies

• Results in flood of applications or resumes

• Application received has to be screened; unsuccessful applicants sent letters

of regret.

• Selection of media for selling requires verification of credibility.

4. SCREENING:

• Involves scrutinizing and shortlisting.Qualification judged on the basis of

knowledge, skills, abilities and interest required for job performance.

• Interviews and application blanks used to screen walk-ins. Reference checks

useful too.

5. EVALUATION AND CONTROL:

• Return rate of applications sent out.

• Number of suitable candidate for selection

 • Cost of recruitment process including salaries for recruiters, cost of
advertisement, recruitment overhead and administrative expenses.

• Professional time spent in job description, ads .

SELECTION
DEFINITION:

The process of differentiating between applicants in order to identify those with

greater likelihood of success in job.

PROCESS OF SELECTION:

1. Preliminary interview: helps reject misfits for reasons which did not appear in
the application forms.

2. Selection Tests: Ability tests, Aptitude Tests, Personality Test etc.

3. Employment interview: Structured, Unstructured, Behavioral and Stress

interview.

4. REFERENCE AND BACKGROUND CHECK:

o Names, address, telephone numbers or references for verifying

information and gaining additional background information.

o Previous employers, public figures, professors act as reference.

5. SELECTION DECISION:

o Decisions regarding selection of candidates taken.

o Line managers, HR manager play pivotal role as are responsible for

performance of new employee.

6. PHYSICAL EXAMINATION:

o Detect if the candidate carries any infectious disease.

 o Protects applicants with health defects from undertaking work that is
detrimental for their health or might otherwise endanger the
company’s property.

o It protects the employer from worker’s compensation claims.

7. JOB OFFER:

o Letter of appointment; appointee given time for reporting.

o Training program arranged.

o Contracts of Employment—varies according to level of job.

 PERFORMANCE APPRAISAL
DEFINITION:

• Dale S. Beach

Performance Appraisal is the systematic evaluation of the individual with

respect to his or her performance on the job and his or her potential for
development.

• Performance appraisal is a formal, structured system of measuring and

evaluating an employee’s job related behaviors and outcomes to discover
how and why the employee is presently performing on the job and how the
employee can perform more effectively in the future so that the employee
benefits.

OBJECTIVES OF PERFORMANCE APPRAISAL:

• To effect promotions based on competence and performance

• To confirm the services of probationary employees upon completing the

probationary period satisfactorily

• To assess the training and development needs of employees

• To provide feedback to the employee concern so that he/she shows

improvement in future

• To improve communication for dialogue between the superior and

subordinates

• To determine whether HR programs such as selection, training and transfer

have been effective or not.

RELATIONSHIP ESTABLISHED:
PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE:

• Improving Performance- by directing employee behavior towards

organizational goals and by monitoring that behavior to ensure that the goals
are met.

• Making Correct Decisions- Regarding Pay raise, promotions, transfer,

training,discharges and completion of Probationary period.

• Ensuring Legal Compliances- Non performance based promotions leads to

legal battle.Appraisal system minimizes such litigations.

• Minimizing Job Dissatisfaction and Turnover- Fair appraisal done

ensures less job Dissatisfaction and hence low turnover.

PURPOSE OF PA:
 • Developmental- Identification of individual needs, Performance feedback,
Determining transfers and job assignments, Swot Analysis

• Administrative- Salary, Promotion, Retention, Termination, Lay offs

• Organizational Maintenance-HR Planning, Determining Training needs,

Evaluation of Organizational Goal Achievement.

• Documentation- Meet Legal Requirements, Documentation of HR Decisions

PROCESS OF PA

• Objective of Appraisal-includes affecting promotions and transfers,

assessing training needs,awarding pay increases etc.
 • Establish Job Expectations-This includes informing employee what is
expected of him or her on the job

• Designing Appraisal Program- Formal vs. Informal, Whose performance is

to be assessed?, Who are the rators?, What problems are encountered?What
should be evaluated?,When to evaluate?,What methods of appraisal are to be
used?

• Formal vs. Informal Appraisal- Formal Appraisals occur at specified time

periods, once or twice a year. Informal occurs whenever supervisor feels the
need for communication. Informal appraisals are very helpful for more
performance feedback

• Whose performance should be rated?- Employees. Ratee may be

defined as individual, work group, division or organization.

• Who are Rators?- Immediate supervisors, subordinates, Peers, Rating

Committees,clients, self-appraisals

360 DEGREES FEEDBACK:

• This tool of Appraisal is understood as systematic collection of performance

data on an individual or group derived from number of stakeholders like
immediate supervisors, team members, customers, peers and self.

• Helpful in Self development and assessing skills of employees

PROBLEMS OF RATING:

• Subject to wide varieties of inaccuracies and biases referred to as “ Rating

Errors”.

• These errors occur in the rator’s observation, judgments and information

processing and can seriously affect assessment results.The common rating
errors are:

o Leniency or Severity

It may make the rators assessment subjective and biased.

Subjective assessment defects the very purpose of PA. Ratings
are lenient because:

There exists in the culture a response set to approve rather than

disapprove

The Rator doesn't want to hamper his relation with the ratee.
 o Central Tendency-

This occurs when employees are incorrectly rated near the

average or middle of the scale. Rator attitude is to play safe
here. Certain doubts and anxieties give rise to this attitude.
They are: “Do I know the man sufficiently well to be able to give
a fair assessment of Him?”

o Halo Error

A halo error takes place when one aspect of an individual’s

performance influences the evaluation of the entire performance
of the individual.

o Rater Effect

Includes favoritism, stereotyping and hostility. Sex, age,race and

friendship biases are examples of this type of error.

o Primacy and Recency Effects

The rater’s ratings are heavily influenced by the behavior

exhibited by the ratee during early stage of the review period
(primacy) or by end of the period (recency).

o Perceptual Set

Rater’s assessment influenced by previously held beliefs.

o Spillover Effect

Past performance appraisal ratings unjustifiably influences

current rating.

o Status Effect

Overrating of employees in higher level job or jobs held in high

esteem and vice versa.

SOLVING RATER’S PROBLEMS:

Training provided to rater strengthen factors that improve accuracy of ratings and
weaken those that lowers the accuracy.

TIMING OF EVALUATION:
Once in three months, six months or once in a year. However once a year is
acceptable by most firms.

METHODS OF APPRAISAL:

• Rating Scale- Criteria's for each job is defined and accordingly quantified.
Rating thus done is accurate and objective.

• Checklist- Written statement of Trait list and job of employee prepared in

two column viz., “Yes” and “No”

• Field Review Method- Appraisal by someone outside the assessee’s own

dept. usually from corporate office or the HR dept.

• Confidential Records-Maintained mostly in govt dept although industry is

also prone to it.

• Forced Choice Method- Herein Rator is forced to select statements which

are readymade.

• Behaviorally Anchored Rating Scale-Represents a range of descriptive

statements of behavior varying from the least to most effective.

• Cost Accounting Method- Evaluating performance from the monetary

returns the employee fields to his/her organization.

• Ranking Method- Superior ranking his or her subordinate in order of their

merit starting from best to worst

PSYCHOLOGICAL APPRAISALS:

Mostly conducted by Industrial Psychologist the purpose here is to assess the

employee’s mental and behavioral attitude to judge the performance standards.
Important point is to move from the current position towards the future expected
performance.

ASSESSMENT CENTERS:

It is a central location where managers may come together to have their

participation in job related exercises evaluated by trained observers. Assesses are
requested to participate in In-basket exercise, work groups,(without leaders),
computer simulations,role plays etc.
APPRAISE THE PERFORMANCE:

Performance is what an employee does or does not do. Employee performance

common to most jobs include elements like Quantity of output, Quality of
output, Timeliness of output,Presence at work, cooperativeness. These
benchmarks however vary from job to job.

PERFORMANCE INTERVIEW:

Done post appraisal, the rators discuss and review the performance with the ratees
in order to provide feedback. The feedback is given through various methods like
tell and sell,tell and listen,problem solving etc. Emphasis over here is counseling
and development.

USE OF APPRAISAL DATA:

• The data so collected has to be in record with HR dept.It is helpful in

• Remuneration Administration

• Validation of Selection programmes

• Training and Development program

• Promotion and Transfer decisions etc.

CHALLENGES IN PA:

• Assessment of Self Managed Teams or “Empowered Teams”.

• Align Organizational objectives to individual aspirations i.e. KRAs

• Forging partnership with people for managing their careers.

APPRAISING TEAMS:
 TRAINING AND DEVELOPMENT
DEFINITION:

It is any attempt to improve current or future employee performance by increasing

an employee’s ability to perform through learning, usually by changing employee’s
attitude or increasing his or her skills and knowledge.

TRAINING VS. EDUCATION:

• Application vs. theoretical

• Specific tasks vs. general concepts

• Narrow vs. broad perspective

PROCESS 1 –ORGANIZATIONAL OBJECTIVES AND STRATEGIES

• What business are we in?

• At what level of quality do we wish to provide this product or service?

• Where do we want to be in future?

PROCESS 2- NEED ASSESSMENT

• Individual performance deficiency ( lack of skills) addressed through training.

• --Faulty selection, poor job design resulting in performance deficiency

handled through transfer, job redesign, improved quality of supervision ( non-
training measures).

• Changes in organizational strategy necessitates training groups of

employees.( introducing new line of products)

• Training programs to handle low morale and motivation, stress

management, work-life balance , emotional intelligence requires high focus.

• NEED ASSESSMENT METHODS:

o Performance Appraisal, Interviews, Questionnaires etc.

 o Organizational goals and objectives, Skills inventories, BO, Quality
circles, customer survey/satisfaction data.

BENEFITS:

• Trainer well informed about broader needs of training group and sponsoring
organizations.

• Reduction of perception gap between participant and his/her boss about

needs and expectations from the training program.

PROCESS 3 – DESIGNING PROGRAM:

• Who are the trainees?–

o selected through self nomination,

o recommendation of supervisors,

o several target audience to facilitate group processes.

• Who are the Trainers?

o Immediate supervisors.

o Members of personnel staff

o Outside consultants

o Associations( FICCI, ASSOCHAM)

METHODS:

• Orientation training

• Apprenticeship training

• Lectures, films, simulation ( case study, role plays, vestibule training)

programmed instruction.
TECHNIQUES:

• Ice breakers

• Leadership games

• Mirroring

• Cross cultural training

LEARNING PRINCIPLES:

Employee motivation, Recognition of individual differences, practice opportunities,

meaning of material, schedule of learning, transfer of learning.

IMPLEMENTATION:

• Deciding the location and organizing training and other facilities..

• Scheduling the training programme..

• Conducting the programme…

• Monitoring the progress of trainees.

EVALUATION:

• Need for evaluation..

• Principles of evaluation..

• Criteria for evaluation..

• Techniques of evaluation
IMPEDIMENTS:

• Lack of commitment from management side.

• Aggregate spending on training

• Institutional degree—not a guarantee of skillful candidate..

• What else?

DIFFERENCES:

• Training is set of activities ;development is desired outcomes.

• Training is systematic process of attempting to develop KSAs for current job;

Development refers to learning of KSAs.

• Training provides opportunity for learning ;development is result of learning.

CLASSIFIACTION – LEARNING OUTCOMES:

• Cognitive learning( information which we acquire and place it into memory)

• Skill based learning ( proficiency at doing something beyond just knowing

about it.)

• Attitudinal learning ( reflection of employees beliefs and opinions that

support or inhibit behaviours)