HUMAN RESOURCE

PLANNING

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 HR Planning

 HRP is the process of forecasting a firms future

demand & supply of the right type of people in
the right number.
 It also ensures availability & utilization of
HR.
 Planning is significant as it helps to determine future
personnel needs. Surplus or deficiency in staff
strength is the result of the absence of or
defective HR Planning.

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 Objectives of HRP

Objectives of HRP:
1) Ensure optimum utilization of human resources
currently employed
2) Assess or forecast future requirements
3) Attaching with business plans of organization
4) Anticipate redundancies (outdated)
5) Provide basis for human resource development
(HRD)
6) To asses the surplus and shortage of human
resources
7) To determine the level of recruitment and training
8) To estimate the cost of HR
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 Types of HRP

 Long Term: 5 + years

 Intermediate term: 2-5 years
 Short term: 0-2 years

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 Process of HR Planning
Process Organizational Objectives
& Policies

HR Demand forecasting HR Supply forecasting

HR Programming

HR Plan Implementation

Control &
Evaluation

Surplus: Restricted Shortage:

hiring, VRS, Layoff Recruitment,
etc Selection etc
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 Factors affecting HRP

1) Type & Strategy of Organization

2) Environmental Uncertainties
3) Time Horizon
4) Type & Quality of Information
5) Nature of job being filled
6) Outsourcing

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 Importance of HR Planning

1) HR Planning is significant as it helps to determine

future personnel needs
2) It also helps creating highly talented personnel
3) HRP provides essential information for designing &
implementing personnel functions
4) Upper management has a better view of HR
dimensions of business decisions
5) More time is provided to locate talent
6) Better opportunities exist to include women &
minority groups in future growth plan
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 Recruitment

 Recruitment: It is a process of searching for & obtaining

applicants for jobs, from among whom the right person
can be selected. It involves attracting & obtaining as
many as applications as possible from eligible job-
seekers. A recruiting program helps the firm in the
following ways:
a) Attract highly qualified & competent people
b) Ensure that the selected candidates stay longer with the
company
c) Make sure that there is match between cost & benefit
d) Help the firm create more culturally diverse workforce

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 Factors affecting Recruitment

Recruitment

External Forces Internal Forces

a) Supply & Demand a) Recruitment Policy
b) Unemployment rate b) HRP
c) Labor Market c) Size of the firm
d)Political-legal d) Cost

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 Recruitment Policy

A good recruitment policy must contain these elements.

1) Organization’s Objectives: Short-term & long-term
objectives of the organizations should be taken into
consideration as a basic parameter for recruitment
decision
2) Identification of recruitment needs: to take decisions
regarding the balance of the quantitative dimension of
the would be recruits i.e. the recruiters should prepare
profiles for each category of the work & workers
3) Preferred sources of recruitment
4) Criteria of Selection
5) Cost of Recruitment & Financial implications

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 Recruitment Policy

 A Recruitment Policy involves a commitment by the

employer to such general principles as:
a) To find & employ the best qualified persons for
each job
b) To retain the best & most promising of those hired
c) To offer promising opportunities for life-time
working careers
d) To provide programs & facilities for personal
growth on the job

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 Sources of Recruitment

 Internal Sources  External Sources

1) Present employees 1) Advertisements
2) Employee Referrals 2) Employment Exchange
3) Former employees 3) Campus Recruitments
4) Previous Applicants 4) Walk-ins
5) Placement Agencies
6) Job Portals
7) Contractors
8) Competitors

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 Recruitment Process

Recruitment Planning

Strategy development

Searching

Screening

Evaluation & Control

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 Selection

 Selection is the process of picking individuals (out of the

pool of job applicants) with requisite qualifications &
competence to fill jobs in the organization.
 While recruitment refers to the process of identifying &
encouraging prospective employees to apply for jobs,
selection is concerned with picking the right candidates
from the pool of applicants.
 Recruitment is said to be positive in its approach as it
seeks to attract as many candidates as possible.
Selection, on other hand, is negative in its application as
it seek to eliminate as many unqualified applicants as
possible in order to identify the right candidates.

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 Selection Process
Preliminary Interview

Rejected Applicants Selection Tests

Employment interview

Reference & Background check

Selection Decision

Physical Examination

Job Offer

Employment Contract

Evaluation
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 PROMOTION

 Promotion may be defined as the upward

advancement of an employee in an organization.

 Promotion is a term which covers a change & calls

for greater responsibilities which usually involves
higher pay & better terms & conditions of service &
therefore a higher status or rank.

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 PURPOSES OF PROMOTION
1. To motivate employees for higher productivity.
2. To attract and retain the services of qualified
and competent people.
3. To recognize and reward the efficiency of
employee.
4. To fill up higher vacancies from within the
organization.
5. To build loyalty and sense of belongingness in
the employee.

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 BASIS OF PROMOTION

1)PROMOTION ON THE BASIS OF SENIORITY: Under

this type of promotion, an employee with the longest
period of service will get promoted irrespective of
whether he or she is competent to occupy a higher post or
not.
2. PROMOTION ON THE BASIS OF MERIT: This type of
promotion is based on the competence & the performance
of the employees.

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 TYPES OF PROMOTION

1. Up or Out Promotion-In this ,a person must either

earn a promotion or seek employment elsewhere.
2. Dry Promotions-They are given in lieu of
increases in compensation i.e. when all
compensation is adjusted upward to keep pace
with the cost of living we have dry promotion.
3. Vertical Promotion-In this the employee is moved
to subsequent higher level and accompanied by
greater power, responsibility, position and salary.
4. Up gradation-In this, the job is promoted in the
organizational hierarchy. As a result the employee
obtains additional salary, higher responsibility and
power.
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 DEMOTION

Demotion has been defined as “The assignment of

an individual to a job of lower rank and pay usually
involving lower level of difficulty and
responsibility.
In other words ,Demotion refers to
lowering down of the status, salary and
responsibility of an employee.

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 CAUSES OF DEMOTION

1. When adverse business conditions force an

organization to reduce its manpower, the
organization may decide to lay off some and
downgrade other jobs.

2. When departments are combined and jobs

eliminated, employees are often required to accept
lower level position until normalcy is restored.

3. When there is mismatch between the promotee’s

ability and new job requirement, alternate job could
be provided through Demotion.

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 CAUSES OF DEMOTION…

4. When it is essential to take disciplinary action

against any employee, Demotion may be useful
tool.
5. When a promotee is unable to meet the
demands of new job, he may request to revert to
old job.

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 DEMOTION POLICY

1. Specification of the circumstances under which

an employee will be demoted like reduction in
operation or indisciplinary cases.
2. Specification of supervisor who is authorized
and responsible to intimate a demotion.
3. Jobs from which and to which the demotion
will be made.
4. It should provide an open policy rather than a
closed policy.

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 DEMOTION POLICY

5. Specification of provisions regarding placing the

demoted employees in their original place if normal
conditions are restored.
6. Specification of nature of demotion that is whether
it is permanent or temporary if it is a disciplinary
action.

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 TRANSFER

A Transfer is a horizontal and lateral

movement of an employee from one job, section,
department, shift, plant or position to another at
the same or another place where its status, salary
and responsibility are the same.
In short, transfer involves a change in the job
of an employee without a change in
responsibilities or remuneration.

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 Reasons for Transfer

 There is a shortage of employees in one department or

plant because of a heavy demand which necessitates an
increase in the number of shifts or expansion of
expansion of production capacity.
 Removal of the incompatibilities between the worker and
his boss & between one worker & another worker.
 Correction of faulty initial placement of an employee
 To break the monotony
 The climate may be unsatisfactory for an employee’s
health
 Family related problems

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 Types of Transfer

 Production Transfer
 Replacement Transfers
 Versatility Transfers
 Shift Transfers
 Remedial Transfers

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 TRANSFER POLICY

1. Clarify the types of Transfers and the conditions under

which these will be made.

2. Locate the authority in some officer who may initiate

and implement transfer.

3. Intimate the fact of transfer to the person concerned

well in advance.

4. Transfers should not be made very frequently.

5. Indicate whether the transfers are made only within a

sub unit or also between departments, divisions or
plants.
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 Procedure for Transfer

 Intra-departmental Transfer or transfers within the

same section of the same department done by the plant
manager or the head and these are effected without the
issue of any transfer order to the employee. It may be in
oral instruction.

 Inter-departmental Transfer or the transfer from one

department to other are decided among the department
heads/plant manager when such orders are of a permanent
nature or of long duration. Written orders, signed by the
plant manager are issued to the employee.

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 Dismissal

Where the termination of employee is initiated by the

employer, it is known as dismissal or discharge. The
dismissal needs to be supported by sufficient reasons.
The reasons which lead to dismissal of an employee are:
 Excessive absenteeism
 Serious misconduct
 False statement of qualification or experience at the time
of employment
 Theft of company’s property.
Before his services are terminated, an employee
is given an opportunity to explain his conduct and to
show cause why he should not be dismissed.

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 Absenteeism

It signifies the absence of an employee from work

when he is scheduled to be at work. It is a willful
absence from work.
The general causes of absenteeism are:
➢ Social and religious ceremony
➢ Unsatisfactory housing conditions
➢ Industrial fatigue
➢ Unhealthy working conditions
➢ Inadequate leave policy

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 Measures for controlling absenteeism

✓ Adoption of a well defined policy

✓ Provision of healthy and hygienic working conditions
✓ Motivation of workers
✓ Improved communication
✓ Prompt redressal of grievance
✓ Cordial relations between the employee and
superiors

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 Labour Turnover

 It is defined as “the rate of change in the working

staff of a concern during a definite period. In other
words it is shifting of workforce into and out of an
organization.
 The rate of labour turnover is generally expressed in
a number of different formulas which involve such
forms as accession (addition to payroll), separation,
replacements and average workforce.

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 Rate of Turnover

i) The accession rate:

addition of employees
average work force
ii) The separation rate: Nos of separated employees
average work force
iii) The replacement rate: replaced employees
average work force

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 Causes & Control of Labour Turnover

 Causes:
1) Dissatisfaction of employee
2) Insufficient wages
3) Bad health or prolonged sickness
4) Old age
5) Family circumstances
 Control Measures
1) Initiating a proper policy
2) Economic advancement and welfare
3) Security of employment
4) Improvement in the methods of recruitment
5) Improvement in working conditions

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