DRIVE-SPRING 2014

PROGRAM-MBADS (SEM 3/SEM 5) MBAFLEX/ MBAN2 (SEM 3) PGDHRMN (SEM 1)

SUBJECT CODE & NAMEMU0010 MANPOWER PLANNING & RESOURCING
BK ID-B1765 CREDIT & MARKS-4 Credits, 60 marks

Q1 What do you mean by forecasting? Describe the various types of forecasts

(Explain the meaning of forecasting, Explaining the types of forecasts) 3, 7
Answer.
Meaning of forecasting
Forecasts refer to a prediction of the outcome when normal course of events are influenced and altered
by external forces. Forecasts usually take into account both the projections and the estimates. For
example, forecasts at the macro level could result in a statement of what would happen if economic
growth was deliberately manipulated by government policy Forecasting is the process of making
judgments about events whose actual outcomes have not been seen.
Types of forecasts
Types of Manpower Forecasting
Having understood the objectives of manpower forecasts one needs to know that manpower forecasts
could be categorized differently, depending on the purpose for which forecasts are made. Some of the
major types of forecasts are briefly described here.
1) Short-Term Forecasts
Short-term forecasts are very useful at the micro-level or we can also say company level, e.g., a chain
hotel makes financial statement for its expenditures keeping in view both the ongoing projects and the
projects in the pipeline.
2) Medium-Term Forecasts
For most countries medium term is about two to five years - the horizon for planning. Medium term
forecasts are useful in those offices where manpower is concerned with advising ministers or preparing
contingency plans to meet the 'twists and turns of economic circumstances or international events'.
3) Long-Term Forecasts
Forecasts for a period more than five years are considered as long-term forecasts. These forecasts are
useful in educational planning, particularly relating to the highly skilled professional categories of

manpower. They are also useful in the preparation of corporate plans incorporating productivity
changes, technological changes and major organisational developments.
4) Policy Conditional Forecasts
Policy conditional manpower forecasts are those which are determined by the policy towards the factors
which influence the demand for manpower.
5) Optimising Forecasts
Optimising manpower forecasts are those which are obtained as solutions to an optimising model in
which numbers demanded of various categories of manpower are so determined that either the end
benefits are maximised, or cost of resources used in achieving a pre-determined end objective is
minimised.
6) Macro and Micro Forecasts
Macro forecasts are done usually at the national, industry sector and region state levels whereas
Micro forecasts are made at the enterprise or department level. Macro manpower forecasts are
used for planning, education and training facilities as well as to make decisions regarding choice and
location of industries for development whereas Micro manpower forecasts are needed primarily for
planning recruitment, promotion, training and counselling in accordance with the plan for the
development of enterprise or department concerned.

Q2 What do you mean by Human Resource Accounting (HRA)? Discuss the objectives and
advantages of HRA.
(Definition of Human Resource Accounting, Describing the objectives of HRA, Describing the major
benefits of HRA)2, 4, 4
Answer.
Human Resource Accounting
HRA can be defined as the process of identifying, recording, measuring human resources and
communicating related financial information associated with the human resource to the interested users.
Thus HRA not only involves measurement of all the costs / investments associated with the recruitment,
placement, training and development of employees, but also the quantification of the economic value of
the people in an organization.

Objectives of HRA

The objectives of Human Resource Accounting are:

To provide cost/value information of Human Resource and associated processes to the

management and assist decision making

Serve as a basis for decisions concerning the human resource of the organization.
Provide methods and standard for evaluating the worth of people to theorganization effectively.
Enable effective management and monitoring of resources
To report progress or retardation of human assets
Form the base for developing management principles by reporting financial outcomes of

decisions taken
According to Likert (1971), HRA serves the following purposes in an organisation:
It furnishes cost/value information for making management decisions about acquiring,

allocating, developing, and maintaining human resources in order to attain cost-effectiveness.

It allows management personnel to monitor effectively the use of human resources.
It provides a sound and effective basis of human asset control, that is, whether the asset is

appreciated, depleted or conserved.

It helps in the development of management principles by classifying the financial consequences
of various practices.

Major benefits of HRA

The major benefits of HR accounting are:

It checks the corporate plan of the organisation. The corporate plan aiming for expansion,
diversification, changes in technological growth etc. has to be worked out with the availability of
human resources for such placements or key positions. If such manpower is not likely to be

available, HR accounting suggests modification of the entire corporate plan.

It offsets uncertainty and change, as it enables the organisation to have the right person for the

right job at the right time and place.

It provides scope for advancement and development of employees by effective training and

development.
It helps individual employee to aspire for promotion and better benefits.
It aims to see that the human involvement in the organisation is not wasted and brings high

returns to the organisation.

It helps to take steps to improve employee contribution in the form of increased productivity.
It provides different methods of testing to be used, interview techniques to be adopted in the
selection process based on the level of skill, qualifications and experience of future human
resources.

Q3 Define Talent Engagement. Discuss the importance and levels of Talent Engagement

(Definition of Talent Engagement, Describing the importance of Talent Engagement, Explaining the
levels of Talent Engagement) 2, 3, 5)
Answer.
Talent Engagement
Talent engagement is the concept which explains the degree to which a talent (employee) is emotionally
bonded to his organization and passionate about his work. Talent engagement is the level of commitment
and involvement a person has towards his organization and its values. Talent engagement creates an
atmosphere for employees to go beyond job responsibilities to delight customers and promote business.
It is a powerful retention strategy.

Importance of Talent Engagement

Managers should essentially cultivate engagement in the organization because failure to do that causes a
lack of commitment and motivation amongst employees. Talent engagement is linked to talent turnover,
customer satisfaction, loyalty and profitability.
The importance of talent engagement is that it helps

Create and sustain world class processes

Contribute greatly to society at large
Lower stress and allows more healthier lives
Achieve greater work-life balance
Allows more peace on earth
Increase ability to attract new talent
Increase ability to innovate

Levels of Talent Engagement

Studies revealed that there are 3 levels of engagement:
1. Engaged Talent
Engaged talent performs consistently at high levels. Engaged talent is always ready to find out peoples
expectations from them or their role so that, they can meet and exceed them. They are more curious
about their company and their position in it. They work whole heartedly using their talent and strengths
at workplace every day for the betterment of their organization. They work towards driving innovation in
the organization and for moving it forward.
2. Not Engaged Talent
This is a kind of talent that tends to concentrate more on the tasks allotted to them rather than the goals
and outcomes expected. They have to be repeatedly told their responsibilities, so that they can complete
their work. Consequently the focus shifts from accomplishing tasks rather than achieving an outcome.

Employees who are not engaged tend to feel that their contributions are being overlooked, and their
potential is not being tapped. The reason behind them feeling like this is that they do not have productive
relationships with their managers or colleagues. And they do not produce any positive results for the
organization also.
3. Actively Disengaged Employee
These employees are consistently against almost everything. Apart from being unhappy at work they are
far busier demonstrating their unhappiness. Actively disengaged employees undermine what their
engaged colleagues accomplish. Actively disengaged workers cause great damage to the organization in
general. It is better to retrench such employees.

Q4 Discuss in details the Employee Exit Process

(Explaining the Employee Exit process in detail) 10
Answer.
Employee Exit process
Employee exit process ensures that all the documentation and processes are followed in a professional
manner by organizations and businesses.

The employee who wants to resign will discuss with his Manager, submits his resignation to his Manager.
The Manager should put his comments on the resignation letter and forward it to HR. (these comments
can be To be relieved by dd/mm/yyyy, or some other special comments) HR on receipt of the
Resignation letter, enters in the software, the date of receipt of resignation letter, terms and conditions of
resignation if any special is there. and comments of Manager, the payroll changes are made accordingly
as per the relieving date decided, the software generates the receipt of resignation letter, along with a no
dues format, with employee name, roll no, dept already pre-printed on the no dues format. These letters
and format are handed over by HR to employee, + details of PF transfer forms, withdrawal forms as
applicable. All the payroll changes, PF changes are scheduled to take action on the relieving date in
software. HR prepares the matter of Relieving letter and gives it to the Manager for suggestions /
comments. The relieving letter is kept ready. Usually before / on the relieving day or some 2 days ago, the
employee submits all no dues, and other forms to the HR and takes his relieving letter. The sample
questions below will help to facilitate these goals. They must be used as soon as the employee and the
organization are aware that the employee will be leaving. It is only appropriate not to leave these
questions until the exit interview. How will the employees knowledge be advantageous to the
organization; their opinions, experience, introductions to their contacts, colleagues etc., before the
employee leaves? Will the employees meet up happily with managers or successor or colleagues to

advice them so that the organization will benefit from their knowledge and experience before their
departure? How to help the employees to pass on knowledge and experience to their successor before
they leave the organization? How and when will the employee prefer to pass on knowledge to the
successor? How does the organization agree for this knowledge to be transferred? Are employees happy
to help the organization by naming a successor? Employers or HR managers will get the most for the
organization and be able to best help to the departing employee by being positive, constructive,
understanding and helpful, prior to and during the exit interview process. Treat people with respect and
dignity, and usually they will respond in kind.

Q5 As an HR, you are asked to focus on the Talent Development Process in your
organization .How would you define Talent Development? Explain the necessity of Talent
Development from an HR perspective. Explain the model for achieving excellence in
Talent Development
(Definition of Talent Development, Explain the necessity of Talent Development, Factors responsible for
achieving Talent Development) 2, 5, 3
Answer.
Talent Development
Talent development is an important part of HR. The process involves changing an organization, its
employees and its stakeholders. This process is accomplished using planned and unplanned learning, in
order to achieve and maintain a competitive advantage for the organization.

Necessity of Talent Development

Talent development is necessary in any organization because of the following:

This is the only way of improving employees productivity through automated and integrated
learning management, performance management, and compensation management systems to

drive business results.

Effective talent development in an organization reduces turnover at critical positions, manages
succession plans, minimizes business disruptions, and also takes care to reduce the risk of non-

compliance and litigation.

Talent development is necessary to achieve extra ordinary goals. Extraordinary goals require

extraordinary talent.
With the growing economy in the 21st century, employee retention and recruitment will be the
key issue for different organizations. So finding the proper talent and creating opportunities for
its development would be reasons enough for a talent to stay in the organization.

Identifying and developing talent are the critical steps in retaining the top talents in an
organization. The cost of replacing a valued employee is enormous. Organizations need to
promote diversity and design strategies to retain people, reward high performance and provide

opportunities for development.

High Performing organizations anticipate the leadership and talent requirement to succeed in the
future. They do understand that it's critical to strengthen their talent pool through succession
planning, professional development, job rotation and workforce planning. Hence, for that they
need to identify the right talent and groom it the right way.

Factors responsible for achieving Talent Development

In order to achieve excellence in talent development, companies should focus on the following factors:
Structure Functional profiles, competency models, and describing paths for growth are the things
companies should implement. Other than these a yearly performance management cycle with some
achievable targets should be set and incentive structures, career- and succession planning are some
things which form an integral part of the talent management system.
Selective Development Most of the successful organizations carry on a close examination of which
are the talent programs and interventions that will be necessary to realize the company strategy.
Process The total infrastructure for talent development should be such that it is a part of the day-today leadership culture. Coaching and training skills are to be developed by the managers who have an
experience to execute talent management effectively.

Q6 Write short notes on the following:

a)Recruitment
b)Succession Planning
(Recruitment, Succession Planning, Meaning and objectives of Recruitment) 5,5
Answer.
a)Recruitment
William F Glueck Recruitment is a set of activities and organization uses it to attract potential job
candidates possessing appropriate characteristics to help the organization reach its objectives. Byars &
Rue Recruitment Involves seeking & attracting a pool of people from which qualified candidates for job
vacancies can be chosen. Recruitment of applicants is a function that comes before selection. It helps to
create a list of prospective employees for the organization so that the management can choose the right

person for the right job at the right time from this list. The main goal or objective of the recruitment is to
help in the selection process. Recruitment can be defined as: A process of finding and getting capable
applicants or employees or manpower for employment. This process begins when new people or
employees are sought or found. It ends when applicants matching the job description submit their
resume and application. The result is a list of applications from which new employees are selected or
chosen. Edwin B. Flippo has defined recruitment as, The process of searching the candidates for
employment and stimulating them to apply for jobs in the organization. Recruitment is a continuous
process. The firm attempts to develop a list of qualified candidates for the future manpower resource
needs. The vacancies may or may not exist in the firm. Usually, the recruitment process begins when a
manager realizes that there is a possibility of a vacancy or an anticipated (there may be) vacancy in the
organization.

b)Succession Planning
One of the types of career planning is succession planning. Succession planning is a technique for
identifying and developing internal employees with the potential to fill important organizational
positions. Succession planning ensures the availability of experienced, skilled and competent employees
that are prepared to assume these roles as they become available. Succession planning increases the
progress of qualified employees from individual contributors to managers and leaders. Thus:

It prepares present employees to undertake key roles

It develops talent and long-term growth of employees
It improves workforce capacities and performance of employee
It improves employee commitment and thus enables retention of employees
It ensures its support to employees throughout their employment term
It meets the career development requirements of existing employees
It understands the increasing difficulty of recruiting employees externally
It focuses on leadership continuity and improved knowledge sharing
It provides more efficiency in monitoring and tracking of employee proficiency levels and skill
gaps.
Succession planning is an essential part of an organization's ability to reduce risks, ensure smooth

business continuity, create a proven leadership model, and improve employee morale.