Human Resource Planning is the process of forecasting an organizations future demand for and supply of the right kind

of people in the right number. Also known as workforce or personnel planning ,it is the process of formulating plans to fill the employers future openings, based on,
Projecting open positions, and Deciding whether to fill these with inside or outside candidates.

HRP is a sub-system in the total organizational planning.

To maintain the required quantity and quality of human resources required for a smooth and efficient functioning of the organization. To forecast the turnover/attrition rate. To plan to meet organizational human resources needs at the time of expansion or diversification. To foresee the effects of technological changes on the requirement for human resources, and to provide for the same. To develop the existing human resources to match the human resource requirements of the future. To optimize staffing in the organization. To make contingent plans to handle sudden requirements and situations of shortfall.

Future personnel needs Part of Strategic planning Creating Highly talented Personnel Facilitates expansion strategies Foundation for Personnel Functions Succession planning and Career planning Personnel Cost Cutting Unite the perspectives of Line and Staff managers Better strategies to explore local labor markets Better training and development to develop managers

1. Forecasting the Demand for Human Resources-. Demand

forecasting must consider several factors-both external and internal External factors Internal factors
Competition (foreign and domestic) Economic climate Political, Social and regulatory changes Technology changes

Organization Strategy Production levels New products or services Employee separations Budget constraints

2. Preparing Manpower Inventory(Supply Forecasting)- Every organization has two major sources of supply of manpower: internal and external.
Internal labor Supply Skills inventory- A skills inventory is an assessment of the knowledge, skills, abilities, experience and career aspirations of each of the current employees.

External labor Supply-

3. Determining Manpower Gaps4. Formulating HR plans- Recruitment plan, Redeployment plan, Redundancy plan, Training plan, Retention plans.

HR Demand Forecasting Techniques

Trend Analysis Trend analysis involves studying the firms employment levels over the past five years or so, to predict future needs. The aim is to identify employment tends which might continue into the future. Trend Analysis can provide the initial estimate of future staffing needs, but employment level depends upon other factors like changes in sales volume and productivity. Ratio Analysis Ratio analysis means making forecasts based on the ratio between (1) some causal factor( like sales volume) and (2) the number of employees required (for instance, number of salespeople). Both the above methods assume that sales revenue to salesperson ratio remains the same i.e. individual performance remains the same.

HR Demand Forecasting Techniques

The scatter plots A scatter plot shows graphically how two variables- such as business activity like sales and your firms staffing levels are related. If they are, then if we forecast the level of business activity we should be able to estimate our personnel requirements.

Example: A 500- bed hospital expects to expand to 1,200 beds over the next 5 years. The HR director wants to forecast how many nurses theyll need.

1000

Size of Number of nurses Hospital (no of beds)

900 800 700 No of Nurses 600 500 400 300 200 100 0 0 200 400 600 800 1000 Hospital size (no of beds)

200 300 400 500 600 700 800 900

240 260 470 500 620 660 820 860

HR Demand Forecasting Techniques

Computerized forecast Computerized forecasts enable the manager to include more variables into his or her personnel projections. Other variables might include direct labor hours required to produce one unit of product, and minimum, maximum and probable sales projections. For example in retailing, for instance, labor scheduling systems help retailers estimate staffing needs based on sales forecasts and estimated store traffic.

Whichever forecasting tools you use, managerial judgment should play a big role.

HR Supply Forecast Supply forecasting measures the number of people likely to be available from within and outside an organization, after making allowance for absenteeism, internal movement, promotions etc. The supply analysis covers, Existing human resources Internal sources of supply External sources of supply

Existing Human Resources and Internal Supply

The main task here is determining which current employees might be qualified for the projected openings. Manual Systems A personnel inventory and development record carries all information like education, company sponsored courses taken, career and development interests, languages, desired assignments and skills. Personnel replacement charts are another option, particularly for the firms top positions. They show the present performance and promotability for each positions potential replacement.

Division Vice President

.
Vice President Production
Required development : None recommended

Vice President Sales Job rotation into finance Exe. Development course in strategic planning In-house development centre two weeks
Required development :

Vice President Finance

Required development : None recommended

Present Performance

Promotion Potential
- Ready now - Needs further training - Questionable

- Outstanding
- Satisfactory - Needs Improvement

Computerized Information System

HRIS ( Human Resource Information Systems)

is a systematic procedure for collecting, storing, maintaining, retrieving and validating data needed by organization about its human resources. The HRIS is usually a part of the organizations larger management information system (MIS).

Internal job posting- publicizing open jobs to employees Rehiring Rehiring old employees with care can be a good option. Succession planning The ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance.

Forecasting the Supply of Outside Candidates Important Barometers of Labor Supply

Education levels of the workforce Demographics of the population Population Mobility Demand for specific skills National unemployment levels Attractiveness of the area/industry

Job Analysis : Job analysis is the systematic gathering and organization of information concerning jobs, in order to determine the duties and skill requirements of a job and the kind of person who should be hired for it. Job Analysis produces information used for writing job descriptions ( a list of what the job entails ) and job specifications(what kind of people to hire for the job).

The type of information collected via the job analysis, Work activities- information about the jobs actual work activities, such as servicing, selling, teaching, etc. Human behaviors Information about human behavior like sensing, communicating, deciding, writing, etc. Machines, tools, equipments and work aids Information regarding tools used, materials processed, knowledge dealt with or applied(such as finance or law) and services rendered ( such as counseling or repairing). Performance standards Information about the jobs performance standards ( in terms of quantity or quality levels for each job duty).these standards will be used to appraise employees.
(contd)

Job context Included here is information about such matters as physical working conditions, work schedule and the organizational and social context- for instance the number of people with whom the employee would normally interact. Human requirements Information regarding the jobs human requirements such as job-related knowledge or skills ( education, training, work experience) and required personal attributes (aptitudes, physical characteristics, personality, interests).

Management use job analysis information to support several human resource management activities like, Human Resource planning : As discussed earlier, HRP determines as to how many and what type of personnel will be needed in the near future. The number and type of personnel are determined by the jobs which need to be staffed. Job related information is therefore necessary for HRP. Recruitment and Selection : The job analysis information in the form of job descriptions and specifications, help the managers decide what kind of people to recruit and hire. (contd)

Training and Development : It helps the manager to know the existent gaps in terms of knowledge and skills in various employees and thus design and plan training and development programmes. Job Evaluation : Job evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials .Relative worth is determined mainly on the basis of job description and specification. Compensation : Job evaluation helps determine wage and salary grades for all jobs. And based on this the remuneration for various grades is fixed. (contd)

Performance appraisal : A performance appraisal compares each employees actual performance with his or her performance standards. Job analysis helps determine and establish performance standards.
Job analysis helps in discovering unassigned duties .

There are six steps in doing a job analysis. STEP 1 : Strategic Choices With regard to job analysis, an organization is required to make few choices, The levels of detail When and how often How the information collected in going to be used Sources of job data

STEP 2 : Reviewing background information

Review background information such as organization charts, process charts and job descriptions ( if they already exist).

Organization chart show the organization wide distribution of work, with titles of each position and interconnecting lines that show who reports to and communicates to whom. Process charts : A workflow chart that shows the flow of inputs to and outputs from a particular job.

STEP 3 : Select representative positions There may be too many similar jobs to analyze them all. For example, it is usually unnecessary to analyze the jobs of 200 assembly workers when a sample of 10 jobs will do.

STEP 4 : Analyze the job

Data collection : Collect data on job activities, required employee behaviors, working conditions, human abilities and traits needed to perform the job using various methods such as interviews, questionnaires, observation, participant dairy/logs, using Company intranets ,etc. Analyze the job using various job analysis methods.

STEP 5 : Verification of job analysis information Verify the job analysis information with the worker performing the job and with his or her immediate supervisor. This will help confirm whether the information is factually correct and complete. STEP 6: Develop job description and job specification These are the two tangible products of the job analysis. A job description is a written document that identifies, defines and describes a job in terms of its duties, responsibilities, working conditions and specifications. The job specification summarizes the personal qualities, traits, skills and background required for getting the job done. It may be in a separate document or in the same document as the job description.

Interview Structured Interviews Questionnaires Direct Observation Participant Logs/Diary Experts Position Analysis Questionnaire (PAQ)

It is the most popular quantitative job analysis tool. It contains 194 items divided into six major divisions: Information input Mental processes Physical activities Relationships with other people Job context Other job characteristics These type of quantitative questionnaire allows many different jobs to be compared for the purpose of job evaluation i.e. for compensation.

The job descriptions should have the following key elements: Job Identification Information : This section includes: job title, job code, Job location and Grade/Level of the job. Job Summary : The job summary is a short statement that summarizes the jobs duties, responsibilities and place in organizational structure. Job Duties and Responsibilities : This is the heart of the job description. Job duties and responsibilities explain what is done on the job, how it is done and why it is done. Standards of Performance : Working conditions: Social environment:

Job Specifications :

The job specification takes the job description and answers the question, What human traits and experience are required to do this job well? The job specification may be a section of the job description or a separate document entirely. Various aspects such as education, length of previous service, quality of relevant training , previous job performance, etc incase of trained employees and physical traits or sensory skills etc, incase of untrained employees are recorded. It may include essential attributes and desirable attributes.

Write the job description and job specification of any one employee of VVSB after doing job analysis.

Definition : Recruitment is the process of generating a pool of qualified candidates for a particular job. The firm must announce the jobs availability to the market ( inside and outside the organization) and attract qualified candidates to apply. Recruitment involves attracting and obtaining as many applications as possible from eligible job-seekers. Recruiting is important because the more applicants you have, the more selective you can be in your hiring.

To cater to the present and future requirements of the firm in conjunction with its personnel planning and job analysis activities. To provide a pool of potentially qualified job candidates at minimum possible cost. Help increase the success rate of the selection process by reducing the number of visibly under qualified or overqualified job applicants. Meet the organizations legal and social obligations regarding the composition of its workforce. Evaluate the effectiveness of various recruiting techniques. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants. Help reduce the probability of the job applicants once hired, leaving the organization after short periods of time.

 RECRUITMENT Generating a pool of qualified candidates

SELECTION

Process of making a hire or no hire decision regarding each applicant for the job.

INDUCTION or SOCIALIZATION Orientating the new employees to the organization and to the units in which they would be working.

There are several sources of recruitment, they can be broadly classified into internal and external sources. INTERNAL SOURCES
o Current employees (Promotions and Transfers) Using Job Posting posting notices of job openings on Company bulletin boards as recruiting method. o Employee referrals o Former employees o Customers

 EXTERNAL

SOURCES

Campus recruitments Professional and Trade associations Advertisements Employment exchanges Direct applications Consultants/ Agencies/Executive recruiters Contractors Internet recruiting

1.

Home Pages Many firms attract employment applications via their own websites. Making the employers website user friendly for prospective job applicants can help boost the number of online recruits. There are several ways to do this, Make it easy to get from the homepage to the career section in just one or two clicks Allow job seekers to apply online Include a tool that lets visitors register and receive notices about new jobs to their e-mail.

2. Online Job sites/portals Many Companies post positions on online job portals such as Timesjobs.com, naukri.com, monster.com etc. 3. Social networking sites Many social networking sites enable members to develop personal relationships for networking, hiring and employee referrals. 4. Virtual job fair In virtual job fairs, online visitors see a very similar setup to a regular job fair. They can listen to presentations, visit booths, leave resumes.

5. Applicant Tracking Systems (ATS) Employers often install applicant tracking systems to support their online and offline recruiting efforts. Applicant tracking systems( such as recruitsoft.com, taleo products) are software systems that help employers keep track of their applicants by performing various services such as collecting application information, prescreening applicants, scheduling interviews and letting employers easily do searches to match candidates with positions.

6. Application service providers Many employers farm out the recruitment processing work to application service providers. When applicants log on to the jobs page of the employers website, they actually go to the servers of the application service providers, which uses its own systems to compile application information, prescreen applicants and help employer set interview appointments ( eg. www.hirepro.in, Hudson RPO)

Once you have a pool of applicants, the next logical step is to select the best candidates for the job. This usually means trimming down the applicant pool by using the screening tools like : test, assessment centers, reference checks, etc Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.

Selecting the right employees is important for three main reasons: Performance : Employees with the right skills will do a better job for you and the Company. Cost : The cost factor is important because it is really costly to recruit and hire employees. Legal Obligations :In this point there are two aspects, 1. Equal employment laws require nondiscriminatory selection procedures for special groups 2. The employer becomes liable if employees with any criminal records use access to customers domain to commit crimes.

Organizations use various selection methods depending on the job and Company profile. Application form and Preliminary interview : Application forms which are standardized, help the employer to gather specific information as well as use as a method to compare the various applications. Weighted application forms( bio-data form) also help the employer to select suitable candidates. A preliminary interview is generally planned by large organizations to cut the costs of selection by allowing only eligible candidates to go through the further stages in selection.

Tests are a measure of an applicants ability, aptitude and personality. There are two important criteria for selection tools (tests), Reliability is a tests first requirement and it refers to its consistency. A reliable test is one that yields consistent scores when a person takes two alternate forms of test or when he or she takes the same test on two or more different occasions. Validity is the extent to which the technique measures the intended knowledge, skill or ability.

Tests of Cognitive Abilities :

Cognitive abilities are the brain based skills ,we need to carry out any task from the simplest to the most complex. They have more to do with the mechanisms of how we learn, remember, problem solve, and pay attention rather than with any actual knowledge. Intelligence tests These are tests of general intellectual abilities. They measure a range of abilities including memory, vocabulary, verbal fluency and numerical ability. Few examples of IQ testsStanford Binet test, the Wechsler test, Wonderlic, Kaufman Adolescent and Adult Intelligence Test,etc.

Specific Cognitive Abilities : There are also measures of specific mental abilities such as inductive and deductive reasoning, verbal comprehension, memory and numerical ability. Psychologists often call such tests aptitude tests, since they purport to measure aptitude for the job in question. A few aptitude tests are, Verbal ability , Mechanical reasoning Numerical ability , Fault diagnosis, Data checking Abstract reasoning, work sample Spatial ability

Personality and Interests Tests : Personality tests measure basic aspects of an applicants personality such as introversion, stability, motivation, attitude, temperament etc. Psychometric Tests : Psychometric tests aim to measure attributes like intelligence, aptitude and personality. They provide a potential employer with an insight into how well you work with other people, how well you handle stress, and whether you will be able to cope with the intellectual demands of the job.

Psychometric Tests Cont Tests of this sort are devised by occupational psychologists and their aim is to provide employers with a reliable method of selecting the most suitable job applicants or candidates for promotion. Psychometric tests fall into two main categories., Personality questionnaires which try to measure aspects of your personality and aptitude tests which try to measure your intellectual and reasoning abilities.

Tests of motor abilities and physical abilities : Tests to check motor abilities such as finger dexterity, manual dexterity, reaction time( if hiring pilots) are also essential criteria of selection in many specific jobs. Physical abilities test include tests to assess strength, dynamic strength, body coordination, stamina, etc. Achievement tests : Achievement tests measure what a person has learned. They measure your job knowledge in various fields like economics, marketing, human resources, etc.

Situational tests : Situational testing requires examinees to respond to situations representative of the job. Work Sampling Technique : The work sampling technique tries to predict job performance by requiring job candidates to perform one or more samples of the jobs basic task. Simulation method (Management Assessment Centers) : A simulation in which management students are asked to perform realistic tasks in hypothetical situations and are scored on their performance. A Management assessment center is a two-three day simulation in which 10-12 candidates perform realistic management tasks under the observation of experts, who appraise each candidates leadership potential.

Honesty tests - These test are designed to identify job applicants who are likely to engage in theft and other undesirable behaviour. Drugs test ( Substance abuse screening) Reference checks - verification of past employment records Background checks Background checks can include criminal background checks, verification of academic achievements, driving histories, immigration status check, social security checks, previous salaries etc. Medical Test To verify whether the applicant meets the physical requirements of the position, also to detect other health problems especially which are communicable.

 An

interview is a procedure designed to obtain information from a person through oral responses to oral inquiries.
interview is a selection procedure designed to predict future job performance on the basis of applicants oral responses to oral inquires.

A selection

Types of Interview based on style of questioning, Unstructured or nondirective interviews : In these types of interviews, the manager follows no set format. The lack of structure allows the interviewer to ask follow up questions and pursue points of interests as they develop.

Structured or Directive interviews : In this type of interview, the employer specifies the questions ahead of time and may also list and rate possible answers for appropriateness.

Types of Interviews depending on types of questions, Situational Interviews : A series of job-related questions that focus on how the candidate would behave in a given situation. Behavioral Interviews : A series of job related questions that focus on how the candidate reacted to actual situations in the past. Job-related interview : A series of job-related questions that focus on relevant past job-related behaviors. Stress interview : In this type, the interviewer seeks to make the applicant uncomfortable with occasionally rude questions. The aim is to spot sensitive applicants and those with low (or high) stress tolerance.

Interviews can also be administered in various ways: One-On-One : In this type, two people meet alone and one interviews the other by seeking oral responses to oral inquiries. Sequential interviews : In this type of interview, several persons interview the applicant, in sequence, one-on-one, before a decision is made. Panel Interviews : A panel interview, also known as a board interview, is conducted by a team of interviewers ( usually two or three) ,who together interview each candidate and then combine their ratings into a final panel score.

Phone and Video Interview : Computerized interviews : A computerized selection interview is one in which a job candidates oral and/or computerized replies are obtained in response to computerized oral, visual or written questions and/or situations.

Structure Your Interview. Base questions on actual job duties. Use job knowledge, situational or behavioral questions to evaluate the interviewees responses. Train interviewers. Use questions of similar standards with all candidates. Use descriptive rating scales( excellent, fair, poor) Use multiple interviewers or panel interviews. If possible, use a standardized interview form. Control the interview Take brief, unobtrusive notes during the interview.