Introduction to Human Resource Management

Human resource planning

• Defined as Strategy for acquisition,
utilization, improvement and
preservation of human resources of an
enterprise.

• Major activities of HRP

– Forecasting(Future requirements)
– Inventory analysis(present strength)
– Anticipating & analyzing gaps( Comparison of
present availability & Future requirement)
– Planning ( necessary programs to meet
future requirement)

According to Gordon MacBeath human resource planning is concerned with two things
➢Planning of Manpower requirements
➢Planning of Manpower supplies
Human resource planning
• Objectives of HRP
– Ensure optimum utilization of Human resources currently employed
– Assess or forecast future requirement
– Cope with changing business environment
– Attached with business strategy and business plan of the organization
– Anticipate redundancies
– Provide basis for overall HRD plan
– Assist in productivity bargaining

• Benefits of HRP
– Create reservoir of talent.
– Preparation for future HR needs
– Promote employees in systematic manner
– Provide basis for HRD
– Help in career and succession planning
Factors affecting Human resource Planning

• Type of organization –Manufacturing/Service

• Strategy of Organization-growth/acquisition/mergers
• Environmental Uncertainties- Changing political, social and
economic conditions
• Time period –Short term /Long term
• Availability/Lack of information
• Out sourcing of business activities
Limitations of Human resource Planning

• Uncertainty of future
• More relevance in countries where manpower availability is
scarce.
• Time consuming and costly affair
• Geographies where skilled manpower is abundant HRP
does not serve great purpose
• Difficult in organizations having large attrition rates.
HC budget

• Numbers,
• Levels
• Cost
• Roles
• Month wise projection
Employee cost to revenue/profit ratios
Important factor influencing HR budget
E/R
E/Profit
Methods of Demand Forecasting
• Expert opinion
• Bottom Up Technique
• Delphi Technique
• Nominal Group Technique
• Ratio- Analysis
• Regression Analysis
Expert Opinion
• In this method, managers estimate future human resource
requirements, their experiences and judgment to good effect.
• opinions (judgments) of supervisors department, managers,
experts, or others knowledgeable about the organization’s
future human resource requirements.
Bottom Up Technique
This method of forecasting starts at the lowest level and progresses
upwards, through various levels of organization, till an aggregate
projection for the organization as a whole is ready.

– While comparing Present and future needs

– Market demands
– Mobility of staff in the department
Delphi Technique
Objective of Delphi Technique is to predict future requirements in a
particular area by integrating judgments and opinions provided
independently by many experts.

Disadvantages
o Time consuming
o Integration problem
Nominal Group Technique
Nominal Technique is somewhat related to Delphi technique, except
for that in this case the experts sit together in face to face
situation to make forecast.

Advantages
1. Each expert is making an independent forecast.
2. All forecast are presented in one place.
3. Take less time.
Ratio- Analysis
This method involves comparing the number of employees to a
workload index.
• The level of activity in each job may vary from department to
department in the same organization

Eg.-To produce 100 unit of a product ,if 10 workers are required , the
department would require 15 workers to produce 150 units.
Regression Analysis
Projection of future demand is based on the past relationship between the work
force level and the basic factor on whom the demand is assumed to depend
• Ex: demand of doctors in government health program
regression equation:- D=5+0.1E

EXAMPLE OF CORRELATIONS/PROJECTIONS OF NURSING STAFF IN HOSPI TAL

SIZE OF HOSPITAL NUMBER OF NURSES
(no. of beds)
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
Markov Analysis
• Mathematical technique
• Forecasts the availability of internal job
candidates
• In this analysis, various job classifications can
be predicted from past movements
• Its use is restricted to very large organisations.
Markov Analysis for a Retail Company
 Methods of Supply Forecasting
Once the demand forecasting is made, the planners have to go out
and find the kind of work force needed.

The sources of manpower supply may be

• Internal Supply –Transfers/Promotions
• External Supply-Educational Institutes/Advetisement /Placement
Agencies/
Advantages of Filling jobs from within
• Increased Efficiency-takes less time/less costly
• Increased Morale- message to all employees that good
performance gets rewarded. promotes retention
• Shorter period of adjustment- Existing employee takes lesser time
to acclimate to new job
Advantages of Hiring from outside
• Broader Selection of talent – target pool of candidates is much
bigger
• The ‘New Blood Factor’ – Diminishes ‘We’ve always done like that
way syndrome’ generally known as organizational inbreeding.
• The diversity Factor- workforce diversity enables a business to
draw on the resources and expertise from the widest range of of
backgrounds- gender/age/region/ethnicity etc
HC budget

• Numbers,
• Levels
• Cost
• Roles
• Month wise projection
Employee cost to revenue/profit ratios
Important factor influencing HR budget
E/R
E/Profit
Challenges
✓ Despite the importance of strategic workforce planning,
most HR departments have not yet developed a formal
plan to participate in their companies’ business cycles.

✓ Ninety percent of HR departments have no independent

planning and forecasting function, and many HR
departments have no formal staffing strategy of any kind.

✓ Rather, they tend to operate independently of the

business cycle, developing reactive staffing solutions
instead of proactive strategies that anticipate movements
in the business cycle.
Some key definitions
• Position – Group of tasks assigned to one individual. There are as many
positions as many employees.
• Job – Group of positions that are similar as to kind and level of work.
• Occupation – Group of jobs that are similar as to kind of work and found
throughout an industry or country.
• Job Analysis – Process of studying and collecting information relating to
the operations and responsibilities of a specific job.
• Motion study – Process of analyzing a job to find the most effective,
easiest and most economical method of doing a job.
• Job description – Organized, factual statement of the duties and
responsibilities of a specific job.
• Job Specification – Statement of minimum acceptable human qualities
necessary to perform a job properly.
• Job classification – grouping of jobs on some specific basis such as kind
of work or pay
• Job evaluation – systematic and orderly process if determining the worth
of job in relation to other jobs
Job
• A job may be defined as a “collection or aggregation of tasks,
duties and responsibilities which as a whole, are regarded as a
regular assignment to individual employees”.
• In other words, when the total work to be done is divided and
grouped into packages, we call it a “Job”.
• Each job has a definite title based upon standardized trade
specifications within a job; two or more grades may be identified,
where the work assignments may be graded according to skill, the
difficulty in doing them, or the quality of workmanship. Further, a job
may include many positions, for a position is a job performed by,
related to, a particular employee.
Job design
Job design (also referred to
as work design or
task design) is a core
function of human resource
management and it is related
to the specification of
contents, methods and
relationship of jobs in order
to satisfy technological and
organizational requirements
as well as the social and
personal requirements of
the job ...(wikipedia)
Job design
• Job design is defined by Michael Armstrong, “as the process of deciding
on the content of a job in terms of its duties and responsibilities; on the
methods to be used in carrying out the job, in terms of techniques,
systems and procedures and on the relationships that should exist
between the job holder and his superiors, subordinates and colleagues”.

• Ibid, “Job Design is the process of deciding on the contents of a job in

terms of its duties and responsibilities, on the methods to be used in
carrying out the job, in term of techniques, systems and procedures and
on the relationships that should exist between the jobholder and his
superiors, subordinates and colleagues”.
Purpose of job design
➢ To meet the organizational requirements such as
higher productivity, operational efficiency, quality of
product/service etc. and
➢ To satisfy the needs of the individual employees like
interests, challenges, achievement or
accomplishment, etc.
Poorly designed jobs often result in
➢ Boredom

➢ Increased turnover

➢ Reduced motivation

➢ Low levels of job satisfaction

➢ Less than optimal productivity

➢ Increase in organizational costs

Elements of Job Design

Job Rotation

Job Simplification Job Design Job Enlargement

Job Enrichment
Job Simplification
➢ This requires that jobs be broken down into their smallest units and then
analyzed. Each resulting subunit typically consists of relatively few
operations. These subunits are then assigned to workers as their total job.
This is done so that employees can do these jobs without much specialized
training. Many small jobs can also be performed simultaneously, so that
the complete operation can be done more quickly. Time and motion studies
are often used for work simplification .

➢ It involves expansion of the scope and width of the job by means of

assigning certain closely related operations.
➢ E.g. a clerk in an office doing typing work may be also assigned tasks of
drafting simple letters, sorting mail and filling of papers. This will reduce his
boredom and make him satisfied with the job. His efficiency will also
improve.
Job Enlargement: (Horizontal)
➢ It involves the addition to or expansion of tasks in the job and
job becomes a meaningful operation.

➢ It is the strategy adopted by many organizations to combat the

ill-effects of division of labour.

➢ Its focus is on enlarging the contents of jobs by adding tasks

and responsibilities.
Job Enrichment: (Vertical)
➢ It is a direct outgrowth of Herzberg’s Two Factor Theory of Motivation.

➢ It is therefore based on the assumption that in order to motivate personnel, the job

itself must provide opportunities for achievement, recognition, responsibility,

advancement and growth.

➢ It involves the vertical expansion of jobs by increasing the amount of worker

responsibilities associated with the positions.

➢ E.g. a worker who previously only loaded boxes for delivery into a trailer may be given

the responsibility of verifying that the customer order is correct. Through job

enrichment, autonomy, responsibility and control becomes part of a worker’s job.

➢ This in turn leads to greater feelings of satisfaction, higher motivation and increased

productivity.
Job Rotation
➢ This refers to the movement of an employee from one job to the another over a designated period of
time.

➢ Jobs themselves are not actually changed, only the employees are rotated among various jobs.

➢ An employee who works on another job for some days or months and returns back to the first job.

➢ This would relieve the employee from boredom and monotony, improves the employee’s skills
regarding various jobs and prepares the employee to meet the contingencies.

➢ This is also intended to improve worker’s self-image and provides personal growth

➢ However, job rotation can have a very limited potential.

➢ It does not change the basic nature of jobs. Rather an employee is asked to perform several
monotonous jobs in place of a single job.

➢ Therefore, the employees who want a challenging and satisfying job still feel frustrated.

➢ Moreover, frequent rotation of employees may cause interruptions in the work routine of the
organization.
Approaches To Job Design
Scientific Management
Approach
Behavioral Approach Socio-technical
(F.W. Taylor) (Herzberg) System Approach

The standardization of jobs into the single best During 1950s, Herzberg’s research popularized the notion of This approach calls for the decision of work systems that
way by which they can be performed. enhancing need satisfaction through what is would foster a meshing of the technical and social
called job enrichment. aspects of jobs.
The training of workers in the single best way to There are many different approaches to job enrichment, yet all In order to create jobs, which have this supportive
perform the job. relationship, work teams, not individual jobs, must be
of them attempt to help the job incumbent satisfy studied.
personal needs while performing the job.
Job design through socio-technical approach requires the
The specialization of labour leading to expertise One widely publicized approach to job enrichment uses the combined efforts of employees, supervisors and union
in small narrow jobs. “Job Characteristics Model”. This model is based representatives in analyzing significant job operations.
on the view that three key psychological states of The major thrust of the socio-technical approach to job design
a job incumbent affect motivation and is that both the technical system and the
The systematic and specific determination of
satisfaction of the job. accompanying social system should be considered
job description for each job.
when designing jobs.
Monetary compensation should be used to
reward successful performance of the job. • Experienced meaningfulness
worth of the work
– According to this concept, jobs should be designed by taking a
“holistic” or “systems” view of the entire job situation,
including its physical and social environment.

• Experienced responsibility
• Knowledgresults – Understanding how
effectively he/she is performing the jobe
of
Job analysis & its Importance

Job analysis is the fundamental process for gathering, documenting

and analyzing data about the work required for a job.
Job Analysis
It is a systematic analysis of each job for the purpose of
collecting information as to what the job holder does,
under what circumstances it is performed and what
qualifications are required for doing the job.
Edwin Flippo: “Job analysis is the process of studying and
collecting information relating to the operations and
responsibility of a specific job”.

• Harry Wylie: “Job analysis deals with the anatomy of the job …
This is the complete study of the job embodying every known and
determinable factor, including the duties and responsibilities
involved in its performance; the conditions under which
performance is carried on; the nature of the task; the qualifications
required in the worker; and the conditions of employment, such as
pay hours, opportunities and privileges”.
Uses of Job Analysis

➢ Human resource planning

➢ Recruitment
➢ Selection of personnel
➢ Training and development
➢ Organization audit
➢ Job evaluation
➢ Job design
➢ Performance appraisal
➢ Career planning
➢ Safety and health
Steps/ stages/process /procedure in Job Analysis:

Selection of
Collection of Collection of
representative Job Developing job
background job analysis
job to be Description specification
information data
analyzed
Techniques of Job Analysis Data

Personal observation

Sending
Conducting
out
personal
questionnai
interviews
res

Maintenance of log
records
Job description & Job specification
• Edwin Flippo : “Job Description is an organized factual
statement of the duties and responsibilities of a specific job.
It should tell what is to be done, how it is done and why.”

• Job specification is based on job description. It is a written

statement of qualifications, traits, physical and mental
characteristics that an individual must possess to perform
the job duties and discharge responsibilities effectively.
• Edwin Flippo : “Job Specification is a statement of
minimum acceptable human qualities necessary to
perform a job properly”.
Details -Job Description
➢ Job title

➢ Organizational location of the job

➢ Supervision given and received

➢ Materials, tools, machinery and equipment worked with

➢ Designation of the immediate superiors and subordinates

➢ Salary levels: Pay, DA, other allowances, bonus, incentive wage, method of payment, hours of work,
shift, break etc.

➢ Complete list of duties to be performed separated according to daily, weekly, monthly and casual,
estimated time to be spent on each duty

➢ Definition of unusual terms

➢ Conditions of work: Location, time, speed of work, accuracy, health hazards, accident hazards

➢ Training and development facilities

➢ Promotional chances and channels

Sample Job descriptions

Job Title GM / DGM – Sales

Department Commercial
Core Skills:
Competencies • Excellent communication and negotiation skills
• Should have excellent interpersonal and
relationship management skills
• Handle a team and achieve sales target
• Achieve sales figures and work under pressure
Attitude:
• Enterprising, highly driven
Experience /
Qualifications • A high caliber MBA with 8 – 10 years of prior
experience in sales function. Preferably having
experience in Airlines
• He / She should have a thorough understanding of
the drivers of the business and should have
demonstrated the ability to adapt and deliver in an
aggressive and competitive environment
Job Would be responsible for:
Responsibiliti • Meeting the sales / collection targets
es • Controlling topline and bottomline activities
• Planning growth and expansion
• Marketing strategy
• Advertising
• Promotions
• Brand Management
• Retail and Institutional Sales Management
• Monitoring competitors activities
Reports to Head – Sales
Compensatio As per industry standards
n
Sales Manager
JOB DESCRIPTION

➢ Develop a business plan and sales strategy for the market that ensures
attainment of company sales goals and profitability.

➢ Prepares action plans by individuals as well as by team for effective search of

sales leads and prospects.

➢ Maintains accurate records of all pricings, sales, and activity reports submitted by Account
Executives.
➢ Provides timely feedback to senior management regarding performance.
➢ Assists in the development and implementation of marketing plans as needed

➢ Control expenses to meet budget guidelines.

Sales ManagerSALES MANAGER
JOB SPECIFICATION
➢ 5-7 years of experience in sales management.

➢ Experience with enterprise software solutions and large, complex organizations.

➢ Extensive experience in all aspects of Supplier Relationship Management.

➢ Strong understanding of customer and market dynamics and requirements.

➢ Willingness to travel and work in a global team of professionals.

➢ Proven leadership and ability to drive sales teams.

System Analyst
JOB DESCRIPTION

➢ Provide technical expertise and recommendations in assessing new IT

software projects and initiatives to support and enhance systems.
➢ Identify opportunities that can improve efficiency of business
processes.
➢ Assist in troubleshooting software application
issues.
➢ Provides assistance and advice to business users in the effective use of
applications and information technology

➢ Assist in the creation of the system design and functional specifications for all
new development projects.
➢ Serve as a liaison and facilitator between all business units to assist in addressing and
resolving IT software issues.
System Analyst
JOB SPECIFICATION

➢ Should have a minimum of 7 years of technology experience with at least 5 years hands-on
technical roles in the field and relies on experience and judgment to plan and accomplish goals

➢ Extensive knowledge of data processing, hardware platforms, and enterprise software

applications
➢ Technical experience with systems networking, databases, Web development, and
user support.

➢ Good background in Data Base design in Microsoft SQL and Access.

➢ Strong project management skills with effective results focus within an

information systems environment.
Communications Manager
JOB DESCRIPTION

➢ Take responsibility for communications activities for specific products, issues, or

regions

➢ Represent Google as a company spokesperson for a wide

variety of media and blogger inquiries

➢ Collaborate with Google engineering, product, sales and marketing teams

to create compelling communications strategies

➢ Develop written materials, including story pitches, messaging guidelines, press releases,
Q&As, presentations and speeches

➢ Train and provide advice to company officials for press conferences, media interviews
and trade presentations
Communications Manager
JOB SPECIFICATION

➢ Bachelors degree or equivalent with a strong academic record

➢ At least 6 years of professional experience in fast-paced business, media or non-

profit environment.
➢ Excellent communication skills – verbal and
written.
➢ Ability to think, plan, and execute on multiple projects simultaneously in
an organized fashion.

➢ Demonstrated ability to work calmly and maintain good judgment in fast-

paced, high-stress environments, as well as ability to escalate appropriately

➢ Ability to work with colleagues in different countries and appreciate

cultural differences.
Job Evaluation
• What is job evaluation?
– A means of determining the relative importance of jobs in an
organization in a structured, orderly & consistent manner which takes
accounts of job content & organizational context

IS IS NOT
Comparative Absolute
Judgmental Scientific
Structure Unstructured
Job Centered Person Centered

Job Evaluation
Provides rank
order or roles
Rules for Job Evaluation

Constrained by rules

➢Jobs not people

➢“Normal” performance
➢The job as it is now
➢Disregard current pay & status
➢No understanding: no evaluation
Common pitfalls in Job Evaluation
• Over or under evaluating due to perception of
differences in market
• Evaluating jobs as they existed before or planned
for future, instead of status quo

• Evaluating the incumbent instead of the job

• Prematurely slotting the job against job
earlier evaluated, instead of applying the
guide chart
Basic Premise in Job Evaluation

➢ All jobs exits to contribute in some way to the

organisation.
➢ Job Evaluation allow us to measure the contributions of
jobs in terms of internal value & further enables linking
these internal values to external data.
➢ This methodology measures three aspects of jobs:
➢ Knowledge required (input)
➢ Problem Solving involved (throughput)
➢ Accountability Results expected (output)
➢ The outcomes of this methodology is a measurement of
job size in terms of points.
Elements of Job Evaluation

TOTAL
JOB
SIZE
Vision ,Mission & Core Values
Understanding The Process
“The best way to predict the future is to invent it”.

Alan Kay, scientist, inventor

5-step Visioning Process
• Clarify Values
• Scan Current Situation
• Define the Mission
• Create a Vision
• Implement the Vision
Identifying Values
• Values are the foundation for Vision.
• Values are the essence of a company’s philosophy for achieving success.
They are the bedrock of corporate culture.
Personal Values
• Values are what we are passionate about as being important and
meaningful in our lives.
• Values energize, motivate, and inspire.
• Values are the root of all learning.
Organizational Values Questions
• What do we stand for?
• How do we treat our employees and customers?
• What are our core values?
• How do we want to be seen by the community?
• What attitudes and behaviors in employees do we want to reward?
Mission Statement
• Mission is a Core Competency
• The mission provides direction for developing strategy, defining critical
success factors, searching out key opportunities, making resource
allocation choices, and delighting customers and stakeholders.
• Your mission statement makes clear company’s uniqueness in the
marketplace.
Organizational Mission
• What business(s) are you in?
• Who are your customers?
• What are your strengths?
• How are you unique?
 Mission Statement Example
• “By defining and solving problems of the working and healing
environments, we aim to improve the quality of our customers’ lives
and become their reference point for quality and service. Through
personal competence, participation, research, and design, we strive
for excellence in each aspect of our business.”
Herman Miller
• manufacturer of high-quality chairs
Vision
• A vision is a powerful mental image of what we want to create in the
future. It reflects what we care about most, represents an expression
of what our mission will look like and is aligned with our values and
sense of purpose.
• A vision statement should include your basic strategy on how you want
to achieve your mission.
• Visioning releases spirit and inspires you.
Qualities Of A Vision
• It motivates, inspires
• It is clear, concrete
• It is achievable, not a fantasy
• It fits with the highest values
• It is easy to communicate, clear and simple
A Powerful Vision
• Presents where we want to go
• Captures the desired spirit of the organization
• Describes a preferred and meaningful future state
• Can be felt - gives people goose bumps
• Provides a motivating force
• Is challenging and compelling
 Vision Questions
• What will we be next twelve months, in two years, five years?
• How would we know we were there?
• What kind of organization do we want to be?
• What do we really want to do or create?
• How do we differentiate ourselves from our competition?
Example Of Vision
• “We are a worldwide leader in workplace learning and performance”.
American Society for Training and Development
Planning To Implement Vision
• The strategy, business plans, procedures and key actions that will put
values, mission, and vision into action.
Strategy
• Defined as the way an organization meets the challenges and
opportunities presented by its environment.
• Consists of a set of conscious choices about how it will deliver value to its
clients an distinguish itself from its competitors
Core Strategic Decisions
• Understand the challenges and opportunities present in your external
environment,
• Identify assumptions about the future.
• Clarify a reason for being that motivates an inspires.
• Identify the principles by which people will conduct themselves.
Core Strategic Decisions
• Define your future clients and how you will deliver value to them.
• Identify core organizational competencies.
• Create a long-term business focus.
• Set short-term performance goals.
• Establish master plan to manage firm’s long-term development.