Unit 2

MBA/BBA/B.com/ B.Tech /UGC Net

By
Dr. Anand Vyas
Human Resource Planning
• Human resource planning (HRP) is the continuous process of
systematic planning to achieve optimum use of an organization's most
valuable asset—quality employees. Human resources planning
ensures the best fit between employees and jobs while avoiding
manpower shortages or surpluses.
HRP objectives
• Objective # 1. Provide Information:
• Objective # 2. Effective Utilisation of Human Resource:
• Objective # 3. Economic Development:
• Objective # 4. Determine Manpower Gap:
• Objective # 5. To Forecast Human Resource Requirements:
• Objective # 6. Analyse Current Workforce:
• Objective # 7. Effective Management of Change:
• Objective # 8. Realising Organisational Goals:
Quantitative and Qualitative Dimensions of
HR Planning
A properly conducted process of HR Planning by an HR Consulting Firm helps
the organization in meeting its goals and objectives in timely manner with
the right HR strength in action.
Quantitative Considerations
• i) The Economic Considerations relating to determination of economic
situation and in the light of that future sales and production estimates are
made. These estimates affect manpower requirements.
• (ii) Expansion programmes in future also affect future manpower
requirements.
• (iii) Availability of existing manpower resources of different kinds should be
kept in mind. This is helpful in forecasting future manpower requirements.
Qualitative Considerations

• (i) Work-load analysis. It is a technical aspect of manpower planning.

It includes and studies auditing of human resources, study of work
standards and demand analysis etc.
• ii) Auditing of Employees Involves Preparation of Skill Inventory. Skill
inventory covers data regarding skill and work priorities pertaining to
work of different categories of workers. Big organizations prepare
organizational charts and other employee information cards for this
purpose.
• (iii) Study of work standards is necessary for the quality of workers
required. It is indispensable for preparing job analysis which includes
job specifications and job descriptions.
 Methods and Techniques of HR Demand
Forecasting
• HR Demand forecasting must consider several factors-both external as well as internal.
Among the external factors are competition (foreign and domestic), economic climate, laws
and regulatory bodies, changes in technology, and social factors. Internal factors include
budget constraints, production levels, new products and services, organisational structure,
and employee separations. Demand forecasting is common among organisations, though
they may not do personnel-supply forecasting.

• Econometrics Models, HR Forecasting Techniques ,Work Study Technique ,Managerial

Judgment

1. Ratio-trend Analysis
2. Regression Analysis
3. Work-study Techniques
4. Delphi Techniques The Delphi method is a process mostly used in research and
economics, that aims to collect opinions on a particular research question or specific topic,
to gain consensus. The opinions are collected from a group of experts that are not
physically assembled, normally through questionnaires.
Data Base for Manpower Forecasting
• Database has a crucial role to play in manpower forecasting as it
determines the methodologies that can be adopted. There is a
different database for macro and micro that are as follows:
• Data Base for Micro Forecasting: • Data Base for Macro Forecasting:
• Personal Data Module • Population Statistics:
• Recruitment Module • Data on Economic Parameters
• Job Experience Module • Information on Technologies
• Training and Development
Module
Recruitment and Selection Analytics:
• Recruitment analytics is the discovery and interpretation of meaningful
patterns for sourcing, selecting, and hiring. This means that data is used to
find and explain patterns in data. For example, if new hires leave within the
first three months, this may indicate a mismatch with the job description
and the actual role, selection mistakes or a bad onboarding process. This is
an example of recruitment analytics.

• Process:
• Gather performance data
• Streamline your sourcing with Source Boosters
• Various recruitment metrics

• Time to hire: The time it takes to identify and recruit a candidate to fill a vacant position.
• Time to fill: The time it takes to fill vacant positions.
• Source of hire: Identity which hiring source you use to give you the highest returns
• Cost per hire: Amount spent by the organization to acquire a candidate
• Candidate experience: How candidates feel about the company once they experience
your hiring process.
• Offer acceptance rate: Compares the number of candidates who have been presented
with an offer versus the number of candidates who accepted the offer.
• Age of job: The time period of an open job.
• First-year attrition: Candidates who leave in their first year of job fail to become
productive and usually cost a lot of money.
• Quality of Hire: An indicator of the first-year performance of a candidate.
• Selection Ratio: The selection ratio usually refers to the number of hired candidates
compared to the total number of candidates.
• Selection Channel Effectiveness: The ratio percentage of applications with the
percentage of impressions of the positions.
Evaluating Reliability and Validity of Selection
models
• Selection a best suitable candidate for a job is an essential function of HR
department. And, the effective selection is depending to a large degree on
the basic testing concepts of validity and reliability.

• Reliability: It is a test’s first major requirement and refers to its consistency.

A test is said to be reliable only when the result an outcome is consistent
on identical test obtained form same person at two different occasions.

• Validity (Legal acceptance): It measures to prove that something is true or

correct. In other words, validity tells us whether the test is measuring what
we think it’s supposed to be measuring.
• Validity can be of following types:

• Content validity: Content validity means, the content of the test item
correlates highly with the job content. In other words, the content that
choose for data entry test is a representative sample of what the person
needs to know for the job, then the test is probably content valid.
• Predictive validity: It means the performance of an employees or test score
highly correlates with the future requirement of the job.
• Concurrent validity: It means, the degree to which test score correlates with
job performance (i.e. those we do well in the test do well in job).
• Construct validity: It means the relation between the job and its score in
practical aspects. In other words, the extent to which the test measures the
psychological quality or quantifies the psychological aspect of an individual.
Finding out Selection bias
• Bias in recruitment forms prejudice and discriminatory hiring decisions
against one person or a group of people. Candidates suffer in the hiring
process and miss out on job opportunities due to bias motives.
Unconscious bias happens outside of conscious awareness, recruiters may
make hiring decisions stemmed from subconscious emotion, perception
and stereotypes.

• Leading with intuition

• Hiring someone similar to yourself
• Comparing job applications against one another
• Halo effect
• Overconfidence bias
Predicting the Performance and Turnover
• Employee turnover refers to the percentage of workers who leave an
organization and are replaced by new employees. It is very costly for
organizations, where costs include but not limited to: separation, vacancy,
recruitment, training and replacement.
• Bio-data: Predictors that represent pre-hire embeddedness in the
organization (employee referral; number of friends and family) and
habitual commitment (tenure in prior job; number of jobs in last five years)
• Pre-hire attitudes: Includes the applicant’s self-confidence and confidence
with decisions, as well as the applicant’s desire for a job and pre-hire intent
to quit
• Personality traits: Conscientiousness (being dependable and reliable) and
Emotional Stability (ex. Individuals who have low emotional stability tend
to have negative perceptions of themselves and their environment.)