NMIMS

Essentials of HRM
Internal Assignment Applicable for June 2022 Examination

1. With the world returning to normalcy post the pandemic, as an HR hiring manager you
have the task of forecasting the demand for the next year to make sure you hire the right
number and right kind of people. Explain the techniques of HR demand forecasting that
you will employ in depth. (10 Marks

Answer 1:
Human resource (HR) demand forecasting is the process of estimating the future quantity
and quality of people required. The basis of the forecast must be the annual budget and
long-term corporate plan, translated into activity levels for each function and department.
The very crucial component of HRP is forecasting the number and type of people needed to
meet organisational objectives. There are a variety of organisational factors, including
competitive strategy, technology, structure, and productivity can influence the demand for
labour.

For example, in the present scenario utilization of advanced technology is generally

accompanied by less demand for low-skilled workers and more demand for knowledge
workers.

There are two HR demand forecasting techniques:

 Quantitative
 Qualitative

Forecasting is primarily quantitative in nature when concentrating on human resources

needs and, in large organisations, is accomplished by highly-trained specialists.
Quantitative approaches to forecasting can employ sophisticated analytical models,
although forecasting may be as informal as having one person who knows the organisation
anticipates future HR requirements of the organisation. Organisational demands will
ultimately determine which technique is used. Regardless of the method used, however,
forecasting should not be neglected, even in relatively small organisations.

Quantitative
This approach to forecasting involves the use of statistical or mathematical techniques; they
are the approaches used by theoreticians and professional planners. One basic example is
trend analysis, which forecasts employment requirements on the basis of some
organisational index and is one of the most commonly used approaches for projecting HR
demand.

Following several steps typically does trend analysis:

First, select an appropriate business factor and it should be the best available predictor of
human resources needs. Frequently, sales or value added is used as a predictor in trend
analysis

Then plot a historical trend of the business factor in relation to number of employees and
the ratio of employees to the business factor will provide a labour productivity ratio (for
example, sales per employee)

Thirdly, compare the productivity ratio for at least the past five years
Then calculate human resources demand by dividing the business factor by the productivity
ratio

To end with, project human resources demand out to the target year
Other than trend analysis, there are more sophisticated statistical planning methods include
modelling or multiple predictive techniques. Several mathematical models, with the aid of
computers, are also used to forecast HR needs, e.g., optimization models, budget and
planning analysis.
The trend analysis relies on a single factor (e.g., sales) to predict employment needs. The
more advanced methods combine several factors, such as interest rates, gross national
product, disposable income, and sales, to predict employment levels. The costs of
developing these forecasting methods used to be quite high; advances in technology and
computer software have made rather sophisticated forecasting more affordable to even
small businesses.

Qualitative
In contrast to quantitative approaches, qualitative approaches to forecasting are less
statistical. It is attempting to reconcile the interests, abilities, and aspirations of individual
employees with the current and future staffing needs of an organisation. In both large and
small organisations, HR planners may rely on experts. These experts assist in preparing
forecasts to anticipate staffing requirements.

For example, In the Expert forecasts method, managers estimate future human resource
requirements, their experiences and judgments to good effect. Management forecasts are
the opinions of supervisors, department managers, experts, or others knowledgeable about
the organisation’s future employment needs.

Delphi technique is another qualitative forecasting method in which it attempts to decrease

the subjectivity of forecasts by involving a group of preselected individuals and soliciting and
summarizing the judgments. Thus a group decision-making process is invoked which in turn,
requires a great deal of process orientation to enhance coordination and cooperation for
satisfactory forecasts and this method works best in situations where dynamic technological
changes affect staffing levels.

Ideally, HRP should include the use of both quantitative and qualitative approaches as per
the requirement. In combination, the two approaches serve to complement each other.
Thus, the combination provides a more complete forecast by bringing together the
contributions of both theoreticians and practitioners.
Whatever technique the concerned person might utilize, they need to be done
systematically. The HR planners many times go further and analyze the demand on the basis
of the following:

Workforce analysis method is used to determine the rate of influx and outflow of

employee. It is through this analysis one can calculate the labour turnover rate, absenteeism
rate, etc. Qualitative methods go a long way in analyzing the internal flow created by
promotions, transfers etc.

Workload analysis is used to calculate the numbers of persons required for various jobs
with reference toplanned output and this takes into consideration various factors such as
absenteeism, and idle time, etc. Both quantitative and qualitative techniques are utilized for
accurate results.

Job analysis is helps in finding out the abilities or skills required to do the jobs efficiently i.e.
KSA (knowledge, skills and abilities). A detailed study of jobs is usually made to identify the
qualifications and experience required for the staffing purpose. Job analysis includes two
things: job description and job specification.

Job description, thus, is a factual statement of the duties and responsibilities of a specific
job and it gives an indication of what is to be done, how it is to be done and why it is to be
done. Job specification provides information on the human attributes in terms of education,
skills, aptitudes and experience necessary to perform a job effectively.

Human resource (HR) demand forecasting is the process of estimating the future quantity
and quality of people required. The basis of the forecast must be the annual budget and
long-term corporate plan, translated into activity levels for each function and department.

2. As seen in recent trends, organizations have moved away from traditional induction
methods to many more interesting ways to welcome their new recruits. Take industry
examples and share how will you design induction for new employees in an innovative
way. (10 Marks)
Answer 2:
A new entrant joins an organization as a stranger to his co-workers, job and organization.
This causes the initial anxiety for the new entrant. It culminates at times to surprise
resignation by the new employee. Hence, arrangements need to be made to make the
integration of the new employee into the organization as smooth and as free of anxiety as
possible. Induction helps do so.

Induction is welcoming a new employee to the organization. In other words, it is a well-

orchestrated event to socialize the new entrant with the people and the work environment
in a particular organization.

According to Michael Armstrong “Induction is the process of receiving and welcoming an

employee when he first joins a company and giving him basic information he needs to settle
down quickly and happily and start work”.
B.P. Billimoria defined induction as “a technique by which a new employee is rehabilitated
into the changed surroundings and introduced to the practices, policies and purposes of the
organization.” In short, induction is, therefore, the process of welcoming, indoctrination and
socialization of new employee to his/her job and organization.

Need of Induction Training:

When a new entrant joins an organisation, he/she is an utter stranger to the co-workers,
workplace and work environment. As such, he/she may feel insecure, shy and nervous. The
first few days may be all anxious and disturbing ones for the new entrant.

Particularly when a new entrant comes from rural area, he/she finds himself/herself
completely at sea in an industrial town and city. Then, induction helps reduce such anxieties
and dispels doubts and nervousness from the mind of the new entrant.

Therefore, an induction programme is designed to achieve the following objectives:

1. To reduce the initial anxiety all new entrants feel when they join a new job in a new
organisation.
2. To familiarize the new employees with the job, people, work-place, work environment
and the organisation.
3. To facilitate outsider – insider transition in an integrated manner.
4. To reduce exploitation by the unscrupulous co-workers.
5. To reduce the cultural shock faced in the new organisation.

Benefits of effective induction training to the organization

1. Saves a lot of money and time
Induction training is the first training program in which the employee participates after he
joins the organization. Induction training provides him all the information needed to start
performing his duties. If an employee is trained well in the induction program, he can
easily adapt to his new role and start delivering results quickly – that’s how it saves the
organization a lot of money and time.

2. Reduces employee turnover

People join a company with a lot of expectations, and at the same time, they have lot of
questions about the organization. All these queries must be answered in the induction
training. Ineffective induction training leaves new employee confused about the job.
Employees may feel frustrated and helpless, if they are not trained properly. On the other
hand, effective induction training goes a long way in increasing staff retention rate and
reducing employee turnover in a big way.

3. Ensures operational efficiency

A good induction training program covers all aspects of the company thoroughly. It helps
new employees become familiar with the organization’s work culture, vision, mission, and
goals. At the same time, new employees understand their own role in achieving the goals
of the company. This will help enhance the efficiency of employees quickly, as they adjust
to the work culture of the organization and get involved in their job. Overall, it greatly
helps increase the operational efficiency of the organization.

Innovative Approach of Induction:

Give them a welcome gift
Statistics show that employees are more likely to stick around if they’ve been given a good
onboarding procedure. We all know how important first impressions are and not making a
good one could see a higher turnaround and a costly unnecessary expense to your business. 

A notebook with a company pen is a nice touch. This could be branded and have the
companies ethics to the front as well as a brief history. This serves as a useful badge of
honour to be carried around for meetings during the first few months and can be a
commemorative reminder of how far they’ve come when the notebook is completed. 

Go online 
Interactive learning is the best way to engage new employees and make training interesting
for them. A Learning Management System (LMS) is the best way to go about this. The
employee is given their own login and asked to click through various pages of the platform,
learning and taking quizzes along the way. 

An LMS is so effective because new starters can learn the basics on the first day of their
induction and then go away to self-train and complete the rest of the exams in their own
time. HR and their manager can see their process and help them out with anything they
might be struggling with.
The interface should be hassle-free, easy to use and multimedia compatible. Video, audio
and lots of images should all feature, as should scenario training for things like health and
safety.  Fun ways to remember certain statistics that are important to the company, like the
number of employees or the year it was founded could also be incorporated. 

Before, everyone would get the same induction training, regardless of their level or role.
With an LMS, employees can be given extra modules that are most relevant to their field,
making sure no one’s time is wasted and allowing the employee to feel catered for and
supported. 

Integrate them through classic traditions

It’s always nerve-wracking offering a tea to the team for the first time. Why not make it a
commemorative moment and set aside a dedicated time for the new recruit to stand up
with the manager or member of the team and make a tea for everyone? This could be done
in a tongue-in-cheek way, a bit like a ceremony.

This gives the fresh starter a chance to go around and get to know everyone with a ritual
that’s so engrained in office culture that they’ll feel comfortable doing it next time on their
own.  

Conclusion:
Induction training, when done viably, is an extraordinary method to prepare new workers
on their jobs in an organization. It expands worker maintenance and by and large execution
and satisfaction at work, profiting both the association and the representative.

3. The past few years have challenged the traditional organizations to think differently. In
Intellicore Solutions, where previously no efforts were made by managers for career
Growth of their workforce, things are about to take a turn for the positive. The leaders
Now realize the importance of retaining their best talent and have therefore hired HR
Managers to help create career and succession plans.
a. You have to guide the new HR manager to be successful in his career planning initiative.
How will you explain the process to him? (5 Marks)

b. The first step to an effective succession planning is ensuring that the objectives are
Correctly established. Describe the goals of succession planning that the HR manager
Should bear in mind.

Answer 3a:
Career planning is the process by which one selects career goals and the path to these goals.
The major focus of career planning is on assisting the employees achieve a better match
between personal goals and the opportunities that are realistically available in the
organization. In human resource management, career planning aims to identify needs,
aspirations and opportunities for individuals' career and the implementation of
Developing human resources programs to support that career. Career Planning Helps Us
Grow. Having a realistic career plan in place is often an essential part of our personal growth
and development. Without goals to strive for, most people find it difficult to stray from the
easy norm or to gain skills which make them a more valuable commodity in the business
world. The primary purpose of career planning by the employees is to develop their
career goals strategically and then achieve success by utilizing the available opportunities.
The individual employees attempt to achieve career success by employing relevant
skills and knowledge.

The Steps in the Career Planning Process

Step 1: Explore Career Options

Use career assessment tools to explore fields further so that you can better utilize guidance
from our career staff. This stage helps make you aware of the many possibilities that exist.
In addition to learning position titles, you will also discover the skills, educational
requirements, and personal attributes needed to be successful in various fields. Gathering
this information helps career counsellors make suggestions for majors, jobs, and careers
that would fit in with your interests and skills. The goal here is to come up with a few
options to share with a career counsellor.

Step 2: Conduct Field Research

This stage is useful in deciding between different fields to pursue. What better way to
explore career options than to meet with someone working in the field? It entails meeting
with people in different positions or industries that you are interested in and asking them
questions about their job. This is also the first step in starting to build a professional
network. To help you with this stage, pick up a packet in the Career Center on Field
Research and Informational Interviews.

Step 3: Determine Your Job Target

After you have looked at your options by doing career exploration and field research, it is
time to make a decision and set some goals. The components of this decision are called
your Job Target. Your Job Target is the specific industry and position you choose to pursue.
It may also include geographic location. Your Job Target can change as you gain more
experience and knowledge about yourself.
Step 4: Build Your Credentials and Resume
This stage is ongoing and the more you build your credentials, the better your resume
becomes. A great resume leads to interviews and offers. The best ways to build your
credentials and knowledge are by:
 Doing internships related to your Job Target
 Taking classes and attending seminars related to your Job Target
 Reading books, journals, and magazines related to your Job Target
 Joining professional associations or clubs on campus related to your Job Target

Step 5: Prepare for Your Job Search

This stage requires researching companies and organizations you want to work for and
establishing if your friends, family, or the Career Center have any leads there. Learn to write
calling scripts and develop tactics for approaching employers other than looking at
advertisements (which seldom bring quick results). You will also need to get organized by
starting a job search binder where all your activities are logged and new information is kept.
In addition, it is crucial to educate yourself regarding interviewing and salary negotiations
before you meet employers. (Our workshops are a great way to do this.) You have to stand
out! It will take most new graduates 3–10 months to find a job, so start early. For a
graduate-level student, it may take longer.

Step 6: Launch Your Job Search

Ready? There are many activities involved in launching your job search. Writing a targeted
resume is important to show employers how your skills relate to their specific needs. Set
aside the time to make calls, write cover letters and thank you letters, conduct interviews,
and do research. Be creative with the approaches you use and remember to ask yourself,
"Will this help me to stand out from my competition?" Lastly, consistently update your
resume with any new skills, knowledge, and experience.

Answer 3 b:
Succession Planning:
Succession Planning is the process of recognizing and following high-potential employees
who will have the option to fill top management positions when they become empty.

Succession planning can accomplish a number of objectives that will not only help
candidates to excel in their new positions, but also provide a broader set of benefits to the
organization as a whole. When assessing the value of succession planning, it’s important to
keep these objectives in mind.

Improved Retention
Turnover is one of the most disruptive challenges an organization can face. Replacing an
employee is not only an expensive and time-consuming undertaking, but it also represents a
lost opportunity to groom someone for a future leadership position. In the case of valuable
high-potential employees, turnover is especially damaging to an organization’s talent
strategy.
Of course, one of the primary reasons people leave in the first place is because they don’t
see an opportunity to advance their careers by remaining with their current employer.
Having a strong succession strategy in place that assesses leadership potential and sets
employees on a clear development path does quite a lot to demonstrate that they have a
promising future with the company. When employees feel like they have opportunities for
growth and development with their current organization, they are less likely to seek those
opportunities elsewhere. This makes it easier for a company to retain and develop its best
talent rather than constantly scrambling to replace its high-potential employees.

Individual Development and Engagement

Succession planning provides an excellent foundation for employee development strategies.
By developing competency models that establish the skills and expertise needed to be
successful in various organizational roles, companies can clarify their training and
development process. This helps them to better prepare employees to step into more senior
roles when the time comes rather than leaving development to chance.
Identifying and developing high-potential leaders also help to boost their level of
engagement. When organizations fail to make development opportunities available,
employees can easily become disengaged, assuming that they aren’t valued or appreciated
for the work they do. While some of them will end up leaving, many disengaged employees
instead allow their performance to deteriorate and engage in increasingly negative
behavior. Providing guided development opportunities to high-potential employees helps
them to stay engaged and feel valued, which encourages them to continue performing at a
high level as they work to build the skills and experience necessary for them to advance
their careers.

Business Continuity
Losing a key employee can be incredibly disruptive for an organization, especially when it
comes to senior leadership. Whatever duties and tasks they were responsible for don’t
simply go away following their departure; someone in the organization must take up the
slack until the position can be filled once again. This can quickly result in people in other
departments taking on additional work in addition to their regular responsibilities,
potentially diminishing productivity and effectiveness, not to mention creating substantial
frustration.

By establishing a strong succession pipeline, organizations can fill vacancies much more
quickly, with minimal confusion or disruption to business operations. This ensures that
personnel transitions will be as orderly and predictable as possible, which makes it easier for
an organization to make long-term plans regardless of who is occupying key leadership
positions. Since candidates are being developed and prepared to step into key roles, there is
less uncertainty about whether they will be able to ensure business continuity whenever a
changeover occurs.

Reduce Risk
When organizations become dependent upon long-time employees, they sometimes fail to
build out the necessary processes and knowledge base that would allow another person to
step into key leadership positions. Should those employees leave the organization suddenly,
they can take a great deal of expertise and critical information about how to do their job
with them. If the company has done nothing to facilitate a transition, it could face significant
risks when the time comes to fill a vacancy because the incoming candidate may not be fully
prepared for what the role actually demands of them.
Establishing a succession plan that incorporates mentoring helps to ensure that critical
knowledge about what it takes to be successful in a position is not lost when someone
departs. Ideally, leadership assessments can help determine what competencies are
necessary for success and should inform development efforts. At the same time, mentoring
programs allow established leaders to share insights that can only be learned through
personal experience. Preserving this knowledge is critical to any succession pipeline because
it allows incoming candidates to step into a role with a much clearer picture of what they
need to do to be successful.

In an economy characterized by high levels of job mobility, it’s more important than ever for
organizations to design and implement succession planning strategies that help them to
identify and prepare high-potential employees to step into leadership positions in the
future. By targeting these candidates early, companies can do a better job of retaining and
developing the talent they already have within their organization and create a level of
continuity that minimizes damaging disruption and facilitates long-term business success.