Module II

HUMAN RESOURCE PLANNING

Introduction
Human Resource Planning is the process of estimating manpower required for an
organization, it is necessary to ensure adequate supply and optimum use if the most valuable
human resources.
Meaning of HRP
Human resource is the most important asset of an organisation. Human resources planning
are the important managerial function. It ensures the right type of people, in the right number,
at the right time and place, who are trained and motivated to do the right kind of work at the
right time.
The enterprise will estimate its manpower requirements and then find out the sources from
which the needs will be met. If required manpower is not available then the work will suffer.
Developing countries are suffering from the shortage of trained managers. Job opportunities
are available in these countries but properly trained personnel are not available. These
countries try to import trained skill from other countries.
In order to cope human resource requirements, an enterprise will have to plan in advance its
needs and the sources. The terms human resource planning and manpower planning are
generally used interchangeably.
Definition
According to E.W. Vetter, human resource planning is “the process by which a management
determines how an organisation should make from its current manpower position to its
desired manpower position.”
According to G. Stainer, “Manpower Planning is the strategy for the acquisition, utilization,
improvement and preservation of an organization’s human resources.”
Objectives of Human Resource Planning:
The following are the important objectives of human resource planning in an
enterprise:
1. Making assessment human resource requirements for future and making plans for
recruitment and selection.
2. Assessing skill needs in future.
3. Determining training and development needs of the enterprise.
4. To assess the surplus or shortage of human resources and avoiding unnecessary dismissals.

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5. To minimise imbalances caused due to non-availability of human resources of right kind,
right number in right time and at the right place.
6. Ensuring optimum use of existing human resources in the enterprise.
7. Keeping the enterprise ready to meet with the technological development and
modernisation.
8. Controlling wage and salary costs.
9. Ensuring higher labour productivity.
10. Ensuring career planning of every employee of the enterprise and making succession
programmes.
HR Planning – Process

1. Analysing Organizational Objectives:

The objective to be achieved in future in various fields such as production, marketing,
finance, expansion and sales gives the idea about the work to be done in the organization.
2. Inventory of Present Human Resources:
From the updated human resource information storage system, the current number of
employees, their capacity, performance and potential can be analysed. To fill the various job
requirements, the internal sources (i.e., employees from within the organization) and external
sources (i.e., candidates from various placement agencies) can be estimated.
3. Forecasting Demand and Supply of Human Resource:
The human resources required at different positions according to their job profile are to be
estimated. The available internal and external sources to fulfill those requirements are also

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measured. There should be proper matching of job description and job specification of one
particular work, and the profile of the person should be suitable to it.
4. Estimating Manpower Gaps:
Comparison of human resource demand and human resource supply will provide with the
surplus or deficit of human resource. Deficit represents the number of people to be employed,
whereas surplus represents termination. Extensive use of proper training and development
programme can be done to upgrade the skills of employees.
5. Formulating the Human Resource Action Plan:
The human resource plan depends on whether there is deficit or surplus in the organization.
Accordingly, the plan may be finalized either for new recruitment, training, interdepartmental
transfer in case of deficit of termination, or voluntary retirement schemes and redeployment
in case of surplus.
6. Monitoring, Control and Feedback:
It mainly involves implementation of the human resource action plan. Human resources are
allocated according to the requirements, and inventories are updated over a period. The plan
is monitored strictly to identify the deficiencies and remove it. Comparison between the
human resource plan and its actual implementation is done to ensure the appropriate action
and the availability of the required number of employees for various jobs.
Need for HR Planning
1. Replacement of Persons:
A good number of employees are to be replaced in the undertaking because of retirement, old
age, death etc. So there will be a need to prepare and train persons for taking up vacant jobs
in an enterprise.
2. Labour Turnover:
Labour turnover takes place in all enterprises. However, the degree of labour turnover may
vary from company to company but it cannot be eliminated altogether. There is always a need
to recruit new employees to take up the jobs of those who have left the undertaking.
If the undertaking is able to foresee turnover rate properly then efforts in advance are made to
recruit and train employees so that work does not suffer for want of employees.
3. Expansion Plans:
Whenever there is a proposal to expand or diversify the enterprise, more employees will be
needed to occupy new jobs. In such situations the human resource planning is necessary.

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4. Technological Changes:
With research and new inventions, technological changes are coming rapidly. There may be
need to give fresh training to personnel. In addition, there may also be a need to infuse fresh
blood into the enterprise. Human resource planning will be helpful in coping to the new
demands of the enterprise.
5. Assessing Future Requirements:
Human resource planning is also needed to assess whether there is any shortage or surplus
employees in the undertaking. If there is less number of employees than needed, it will badly
affect the work. On the other hand, if more persons are working than needed then it will
increase labour costs, etc. Human resource planning ensures the employment of right
employees.
JOB ANALYSIS
Job Analysis may be defined as the process of studying and collecting information relating to
a job. It involves recording the duties, responsibilities, skills, work environment etc of a given
job. The object of job analysis is to find out the relative worth of the job and find out suitable
persons to carry out the job.
According to Edwin B Flippo, “Job Analysis is the process of studying and collecting
information relating to the operations and responsibilities of a specific job.”
Objectives of Job Analysis
1. To study the relative worth of job.
Job analysis is made to analyse the contents and relative worth of a job. Each job is different
from other jobs in terms of its content and features. Some jobs involve more responsibilities
and require specific skills and qualifications.
2. To find suitable persons (man power planning).
Job analysis helps in finding the right Candidate for the right job. It helps to avoid employee
misfit and labour turnover . Employees can learn to advance the nature of operations, extent
of skill required, safety measures to be taken, tools and techniques to be used, etc.
3. Performance evaluation.
Job analysis can help the HR department in the assessment of employee performance.
Employee performance is measured and compared with the standard performance based on
job analysis. HR manager can suggest measures for improvement, training needs or even
transfer of employees from one job to another based on such evaluation.

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4. Training and Development.
The HR department can plan training and development programmes for employees based on
job analysis. Certain jobs require special training in the use of machines, materials and tools.
Job analysis can provide valued information on training needs of employees.
5. Compensation plan.
The HR department can plan compensation for employees based on job analysis. Jobs that
require more responsibilities need higher pay and incentives. Inadequate compensation may
lead to how morale and dissatisfaction among employees.
6. Arranging suitable working conditions.
Work environment is very important for efficiency carrying out the job. It affects employee
performance and productivity. Therefore, working environment must be conducive for
carrying out the jobs efficiently. Job analysis can help the management to provide suitable
working environment and physical facilities favourable to employees.
7. Industrial Relation.
Job analysis helps to find out right person for doing the job. It ensures adequate health, safety
and welfare of employees. Employees can achieve the desired performance levels based on
such job analysis. They feel satisfied about jobs, working condition and remuneration. Thus
job analysis helps to promote better industrial relations in the organisation.
8. Job designing.
Job analysis helps to design the jobs so that their performance can be easily carried out. Job
elements are studied in detail under job analysis and these elements are properly organised to
facilitate the completion of the job. It also facilitates job simplification.
Methods of Job Analysis
1. Observation Method:
Three methods of Job Analysis are based on observation. These are- Direct Observation;
Work Method Analysis, including time and motion studies and micro-motion analysis
2. Interview Method:
It involves discussions between job analysis and job occupants or experts. Job analysis data
from individual and group interviews with employees are often supplemented by information
from supervisors of employees whose jobs are to be analysed.
3. Daily Method:
It requires the job holders to record in details their activities on a daily basis.

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4. Technical Conference Method:
In this method, services of the supervisors who possess extensive knowledge about a job are
used with the help of a conference of the supervisors. The analyst initiates discussion which
provides details about the job.
5. Questionnaire Method:
These can be filled out by the employees on an individual basis or by job analysts for a group
of employees.
Components of Job Analysis
➢ Job Description
A job description is a tool that explains the tasks, duties, function and responsibilities
of a position. It details who performs a specific type of work, how that work is to be
completed, and the frequency and the purpose of the work as it relates to the
organization's mission and goals.
➢ Job Specification
A job specification is the list of recommended qualities for a person to qualify for and
succeed in a position. While the job description includes the title position,
responsibilities and summary, the specification identifies the skills, traits, education
and experience a candidate might need to qualify for that job.
➢ Job Evaluation
Job evaluation is the systematic process of determining the relative value of different
jobs in an organization. During job evaluation, the relative worth of various jobs are
assessed so that wages can be paid depending upon the worth of the job. The goal of
job evaluation is to compare jobs with each other in order to create a pay structure that
is fair, equitable, and consistent for everyone.
Job Design
Job design is the process of establishing employees' roles and responsibilities and the systems
and procedures that they should use or follow. The main purpose of job design, or redesign, is
to coordinate and optimise work processes to create value and maximise performance.
Methods of Job Design
1. Job rotation
Job rotation is a practice of moving employees between jobs in an organization. This
increases the skill variety, helps employees orientate in potential new roles, and learn through
different experiences.

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2. Job enlargement
Job enlargement involves adding additional activities within the same hierarchical level to an
existing role. The work requires similar skills but the work’s content differs. Job
enlargement increases the skill variety and task identity, enabling a worker to do more of
similar activities, which reduces monotony, teaches a variety of skills, and gives a broader
range of responsibilities, accountability, and autonomy.
3. Job enrichment
Where job enlargement is aimed at adding tasks, job enrichment is characterized by adding
motivational dimensions. This means that job enlargement could be a form of job enrichment.
Job enrichment focuses on adding motivators to existing roles, increasing the MPS.
4. Job simplification
Job simplification is the opposite of job enlargement and a bit of the odd one out. Job
simplification is the process of removing tasks from existing roles to make them more
focused. Job simplification is about stripping skill variety to create a more focused task. This
can be used in case of job creep when a job has been enlarged over time and has become
unmanageable.
Job Specification
Job Specification may be defined as “a statement of the skills, abilities, education and
previous work experience that are needed to perform a particular job”.
A job specification is the list of recommended qualities for a person to qualify for and
succeed in a position. While the job description includes the title position, responsibilities and
summary, the specification identifies the skills, traits, education and experience a candidate
might need to qualify for that job.
Components of Job Specification
➢ Educational Qualification. This parameter gives an insight on how qualified a certain
individual is.
➢ Experience. Job specification clearly highlights the experience required in a particular
domain for completing a specific job.
➢ Skills & Knowledge.
➢ Personality traits and characteristics.

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 ORGANISATIONAL CULTURE
Meaning
Organizational culture is the collection of values, expectations, and practices that guide and
inform the actions of all team members.
Organizational culture is defined as the underlying beliefs, assumptions, values and ways of
interacting that contribute to the unique social and psychological environment of an
organization.
Key Characteristics of Organizational Culture
1. Financial Stability (Level 1)
Healthy organizations have a focus on financial stability; organizational growth, revenues, a
growing client base, and profit margins are important ingredients for success.
2. Harmonious Relationships (Level 2)
Most of us can sense when there’s tension between people or within a culture. We all have a
sixth sense for this kind of discord between individuals or within organizational cultures.
Likewise, we can also tell when things are going well because there is open communication,
employee and customer satisfaction, and a sense of loyalty and friendship among team
members.
3. High Performance (Level 3)
This developmental level is all about achievement and having the right systems, quality, best
practices, and pride in performance.
4. Continuous Renewal and Learning (Level 4)
Everyone is abuzz talking about the pace of change and innovation and keeping up with
them. Organizations, must continuously adapt, learn, grow, set goals, and empower one
another in the quest forward.
5. Building Internal Community (Level 5)
This goes beyond having harmonious relationships. It’s about a shared sense of purpose and
values. It’s about having integrity in how we individually and collectively act. And, it’s about
building trust, passion, creativity, and openness among us.
6. Making a Difference: Strategic Partnerships and Alliances (Level 6)
Once we have a clear sense of purpose and values, we can align with other teams and
organizations to make a larger difference. If we attempt to partner with other organizations
before we truly know our own value, the alliance erodes. Partnerships require that both
parties have skin in the game, have something at stake, and are working together for a larger
cause or mission.
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 7. Service to Humanity and the Planet (Level 7)
Service includes social responsibility, future generations, long-term perspective, ethics,
compassion, and wisdom. We sometimes jokingly call this the “Mother Theresa level,”
because it’s all about the difference you make to humanity and the planet. It’s about the need
to think of “we” before “me.”
Creating and Maintaining Organisational Culture
Organization cultures are created by a variety of factors, including founders’ values and
preferences, industry demands, and early values, goals, and assumptions. Culture is
maintained through attraction-selection-attrition, new employee onboarding, leadership, and
organizational reward systems. Signs of a company’s culture include the organization’s
mission statement, stories, physical layout, rules and policies, and rituals.
Five Ways to Maintain Organisational Culture
1. Rigorous Hiring Practices
One of the best ways to preserve company culture is to hire carefully. Be sure that our new
hires aren't just qualified; make sure they are a good fit. Use a team approach when
interviewing. Make sure they fit in with the people they will be working with on a daily
basis.
2. Talk about our Organisational Values
During the hiring process, be sure that our company culture and values are front and center,
this helps our candidates make their decision. But don't stop talking about our company
values and culture during the interview process. Be sure that company onboarding practices
set clear expectations so that those joining the team understand your culture from the
beginning.
3. Develop and Maintain Traditions
When our company consists of just a handful of employees, small traditions tend to develop
but might get lost as the company grows. Don't let this happen. Be sure to continue our
traditions no matter how big our business gets.
4. Recognize Employee Achievements and Contributions
This should always be a part of our company culture, and it helps foster loyalty and
satisfaction among employees. Recognize birthdays, anniversaries and significant milestones
in your people's lives. It says to the employee that the organisation care.
5. Keep Lines of Communication Open
One sure way to lose that tight-knit feel and culture is to stop getting feedback from
employees. Maintaining an open-door policy helps our business stay grounded. Get out of the
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office. Work a day on our production line or ride along with the delivery driver. We will
learn valuable things, and people will see that you still care.
Work Place Innovation
'Workplace Innovation' defines evidence-based organisational practices that enable
employees at every level to use and develop their skills, knowledge, experience and creativity
to the fullest possible extent, simultaneously enhancing business performance, engagement
and well-being.
Innovation technically means to introduce a new idea, or to take an existing idea and make it
work better. Innovation in the workplace tends to refer to the process of introducing
something new. This process starts from the origination of an idea and goes on to the
transformation and implementation of that idea, taking into account the system on which the
process unfolds. It makes businesses stand out among the market place and helps them grow.
Without it, businesses have less chance of attracting a customer base.
Managing Diversity
The word of “diversity” has the meaning of differences or variety. However, in the business
world and in the business textbook, diversity often refers to the many differences present
among people today in workplace as well as marketplace that were not aware of by most
people in the past.
Diversity management is often referred as acknowledging, understanding, accepting,
valuing, and celebrating differences among people with respect to age, class,
ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and
public assistance status for better workplace performance. The term diversity
management indicates the implementation of strategies or policies to knit a network of
varied individuals together into a dynamic work force.
Managing diversity means acknowledging people's differences and recognizing these
differences as valuable; it enhances good management practices by preventing
discrimination and promoting inclusiveness. Good management alone will not necessarily
help you work effectively with a diverse workforce.

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