Unit - 2

Human Resource Planning

Contents
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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H.R.M

Human Resources
Are an organisations greatest assets Must deliver on the task assigned To deliver they must be:
Right Numbers Right Capability Right Temperament

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H.R.M

Definitions of HRP
Geisler: HR planning is the process including forecasting, developing and controlling by which a firm ensures that it has the right number of people at the right places at the right time doing work for which they are economically most useful
Wendell French: HR planning is a process by which an organisation should move from its current manpower position to its desired manpower position

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HRP is
Plan for human resources in the light of the organisational goals Must ensure the right number, right kind and right place Deliver organisational and individual goals in the process

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H.R.M

Till Now
Definition Objectives of HRP Process of HRP Factors Influencing Estimation of Human Resources Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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H.R.M

Objectives of HRP
Fulfillment of organisational goals which can only happen through human resources Matching of capabilities / skills to requirement Forecasting HR requirements Fair Remuneration / Assessment Optimum Utilisation of Resources Control over Recruitment / Training Cost
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H.R.M

Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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Process of HRP
Analysing Organisational Plans
Analysing Factors for Manpower Requirements Developing Employment Plans Developing Human Resource Plans

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Analysing Organisational Plans

Studying the Business Plan
Blueprint of Desired Objectives Growth Rate, Diversification & Market Opportunities

Workload Analysis
Workload Norms

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Factors for Manpower Requirements

Demand Forecasting
Future Requirement (Function / Skill Level) Judgemental Forecasts
Managerial Estimate Delphi Method

Statistical Projections
Trend Analysis Work-study Techniques

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Factors for Manpower Requirements

Supply Forecasting
Requirements from Within & Outside Present HR Inventory
HR Audit (Skills of existing employees) Employee Wastage (Better Prospects/Retirement/Layoff) Internal Promotions

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Developing Employment Plans

Job Analysis
Characteristics of the Job What a typical worker does What material / equipment does he use How is the job performed Required Personal Attributes

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H.R.M

Developing Employment Plans

Job Description
Job Contents Minimum Expectations from an Employee Clear & Easy to Understand As descriptive & vast as possible Degree of Authority / Supervision

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H.R.M

Developing Employment Plans

Job Specification
Minimum Qualification for a Job Academic / Experience / Age Personality Factors Form Eligibility

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Developing Human Resource Plan

Net Human Resource Requirement Determined If S > D, Surplus, Freeze on Recruitment, Downsizing (Layoffs / Voluntary Retirement) If D > S, Deficit, Recruitment, Expansion

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H.R.M

Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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H.R.M

Factors Influencing HRP

Government Policy
Reservations / Qualifications

Social Factors
Labour intensive methods / Regionalism

Economic Factors
Change in Business Environment

Technological Change
Change in Production / Distribution Technology

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H.R.M

Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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H.R.M

Definition of Recruitment
Flippo: Process of searching for prospective employees and stimulating them to apply for the job
Finding Attracting

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Importance of Recruitment
Input to Selection
Lower the Selection Ratio, better would be the resources which would be hired With limited recruitment, Selection is a wasted activity

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H.R.M

Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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Recruitment Policy
Standing plan which asserts the objectives of recruitment and provides a framework of implementation of the program in the form of procedures Reinstates the commitment of the organisation to the process of recruitment

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Essentials of a Good Recruitment Policy

Conformity to Organisations Objectives
Flexible to Organisational Needs (Profiles) Ensure Long-Term Employment Opportunity

Preferred Sources of Recruitment

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Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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Sources of Recruitment
Internal Sources
External Sources

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Internal Sources
Personnel already on the payroll of the organisation
Promotions Transfers Application from Employees

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Merits of Internal Sources

People familiar with the company culture Tried & tested employees Maintains employee motivation and morale Reduces labour turnover Job Training gets reduced Less costly source of recruitment

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Demerits of Internal Sources

Limits the choice
May be biased by Superiors Creates frustration amongst those not selected

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External Sources
Advertisements Employment Exchange Campus Recruitment Unsolicited Applications Agency / Labour Contractors Employee Referrals

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Merits of External Sources

Fresh talent & skill
New employees may change old culture/habits May be less demanding

Larger pool of choice

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Demerits of External Sources

Deny career advancements
Reduce morale of inside employees

Limited exposure before selection

Higher cost of training Higher cost of selection

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Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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Selection
Process of finding the most suitable candidate for a given job from the pool of applicants Good selection
Desired results Job satisfaction Low turnover

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Process of Selection
Application Blank Screening Interviews Employment Tests Interviews Reference Checks Physical Examination Final Appointment

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Step 1: Application Blank

Questionnaire that helps get the basic information from the potential employee in the areas of
Personal Details Education Work Experience Extra-Curricular

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Step 2: Screening Interview

Preliminary Interview on the basis of the blank Helps clarify any missing information Useful only in case the number of applications is high

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Step 3: Employment Tests

Aptitude Test: Ability to Learn
Interest Test: Liking for Work Performance Test: Aptitude / Knowledge in the particular trade / occupation

Personality Test: Traits / Characteristics

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Step 4: Interviews
Face-to-face, oral and observational method of evaluating the applicant
Depth Interview Stress Interview Group Interview Structured vs. Unstructured Interview

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Step 5: Reference Checks

Applicant provides references (atleast 2)
Contact is made with these references to validate the information gathered about the employee

Should not be ignored as a step

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Step 6: Physical Examination

Physical Fitness
Prevent any harm to other employees Discover existing liabilities

Allot work according to what they can handle

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Step 7: Final Appointment

Issue of Appointment Letter
Acceptance of Appointment Joining Report

Induction

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Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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Promotion
Upward reassignment of an individual in an organisational hierarchy
Increased Responsibility Enhanced Status Increased Income

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Reasons for Promotion

Growth of Business
Recognition for a job well done Employee motivation and growth

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Criteria for Promotion

Performing Present Duty Well
Experienced & Qualified Willing to handover Current Responsibilities

Enthusiastic about New Role

Familiar with the Job Responsibilities Proficient with Interpersonal Skills Adequately Trained
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Promotion Policy
Statement of the organisations broad directives on promotion matters
Ratio of Internal Promotion : External Recruitment Identifying Ladders of Promotion Pre-Requisites for being Considered Any Factors which Disqualify from Promotion Seniority vs. Merit

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What is Demotion?
A demotion occurs when an employee is reassigned to a position with a responsibility / salary that is lower than the responsibility / salary of the former position

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Reasons for Demotion

The employee was unable to perform the job assigned to him to the satisfaction of the employer
The employee requests for a Demotion

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Till Now
Definition Objectives of HRP Process of HRP Factors Influencing HRP Concept of Recruitment Recruitment Policy Sources of Recruitment Selection Procedure Promotion & Demotion Policy Transfer Policy
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What is Transfer?
Reassignments to similar positions in other parts of the firm Usually involves no change in grade / salary Can be initiated by the employee / employer

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Employee Initiated
Personal Enrichment More Interesting Job Greater Convenience Better Career Advancement Opportunities

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Employer Initiated
Vacate a position Fill a position Consolidate a position Find a better fit

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