Human Resource

Management
PGDM, Semester 2
Instructions to the students
 Attend the classes regularly. Maintain a good book for
HRM. Request you to get an HR book when you come to
the class.
 Be attentive and consider giving me answers. Thus, we
will have interaction which makes the students engaged
and active.
 Extreme discipline has to be maintained as this subject is
the most important one in the area of Management.
 Answers have to be written and has to be shown to me at
regular intervals. Presentation, case study and group
discussion shall be conducted in each class. 1 hour is for
the teacher, 10 minutes is for the preparation and 20
minutes is for the students.
 What is Management?
 Management can be defined as a process of
getting the work or the task done that is required
for achieving the goals of an organization in an
efficient and effective manner by the employees
on rolls.

 Process implies the functions of the management.

 In the form of planning, organizing, staffing,

directing and controlling the business operations.
 Efficiency v Effectiveness
 Efficiency and effectiveness are not the same thing.
 Efficiency is defined as the ability to accomplish
something with the least amount of wasted time,
money, and effort or competency in performance.

 Effectiveness is defined as the degree to which

something is successful in producing a desired
result; success.
 What is the difference between effectiveness and
efficiency with examples?

 While efficiency refers to how well something is done,

effectiveness refers to how useful something is.

 For example, a car is a very effective form of

transportation, able to move people across long
distances, to specific places, but a car may not
transport people efficiently because of how it uses
fuel.
 Efficiency and effectiveness help to get the
maximum product in quantity and quality.

 Efficiency and effectiveness minimizes risk to

perform any task.

 Efficiency and effectiveness provide results

on time to an organization or stakeholders,
and so on.
 Which is important efficiency or effectiveness?
 The truth is that effectiveness is far more

important than efficiency.

 Effectiveness is about doing the right task,

completing activities and achieving goals.

 Efficiency is about doing things in an optimal

way, for example doing it the fastest or in the
least expensive way.
 What is productivity and its importance?
 Productivity is a measure of economic or business
performance that indicates how efficiently people,
companies, industries and whole economies convert
inputs, such as labor and capital, into outputs, such as
goods or services.
 What is the importance of contribution costing in
decision making?
 Contribution analysis helps managers see the effects
of changes in costs and selling prices on the company:
variables like; variable cost, selling cost or even fixed
cost can change and have effect on our bottom line.
 What is achievement in an organization?
 Achievements are things you did that had a

lasting impact for your company or client.

 It is a result that you personally bring about

while fulfilling a particular role.

 Typically they are things that you created,

built, designed, sold or initiated.
 Why is management important?
 Managers are important for any organization to achieve its
goals.
 They are the backbone of any organization, and their role
is to ensure that everything runs smoothly in the company.
 The success or failure of an organization depends on how
well its managers handle their responsibilities.
 They are the buffer between the top management and
employees.
 In other words, the big picture vision created by the top
management needs to percolated down the line so that the
employees get down to bring the results as guided by the
middle level managers.
 Examples of the four functions of management
include planning checkpoints into a project
schedule to help your team hit the end deadline,
assigning tasks to team members in accordance
with their skills, leading by example by assigning
yourself a task and completing it well, and
readjusting the team’s workload as needed
throughout the project.
Management
 What is HRM in simple language?
 Human resource management is the strategic
(planned or tactical) approach to nurturing
(developing) and supporting employees and
ensuring a positive workplace environment.

 Its functions vary across different businesses

and industries, but typically include recruitment,
compensation and benefits, manpower planning,
employee development, employee relations &
industrial relations.
 What are the concepts of human resource management?
 HRM is employee management with an emphasis (stressing) on
those employees as assets of the business.

 In this context, employees are sometimes referred to as human

capital.

 Human capital management (HCM) is the process of hiring the right

people, managing workforces effectively and optimizing
productivity. It has evolved from an administrative function to a
critical enabler of business value.

 As with other business assets, the goal is to make effective use of

employees and other resources reducing risk and maximizing return
on investment (ROI).
Return on Investment
 What is the meaning of return on investment?
 The return is the profit you make as a result of
your investments.

 ROI is generally defined as the ratio of net profit

over the total cost of the investment.

 ROI is most useful to your business goals when it

refers to something concrete and measurable, to
identify your investment's gains and financial
returns.
Scope of HRM
 What is the scope of human resource
management?

 The scope of HRM is very wide: Concerned

with manpower planning, recruitment,
selection, placement, transfer, promotion,
training and development, layoff and
retrenchment, remuneration, incentives,
productivity etc.
 Scope of HRM

 The scope of HRM is very wide. Research in behavioral sciences, new trends in
managing knowledge workers and advances in the field of training have expanded
the scope of HR function in recent years.

 The Indian Institute of Personnel Management has specified the scope of HRM thus:
 Personnel aspect: This is concerned with manpower planning, recruitment, selection,
placement, transfer, promotion, training and development, lay off and
retranchement, rémunération, inventives, productivitity, etc.

 Welfare aspect: It deals with working conditions and amenities such as canteens,
crèches, rest and lunch rooms, housing, transport, medical assistance, education,
health and safety, recreation facilities, etc.

 Industrial relations aspect: This covers union-management relations, joint

consultation, collective bargaining, grievance and disciplinary procedures, settlement
of disputes, etc.
 HRM is a management function concerned
with hiring, motivating, and maintaining
workforce in an organization.

 It deals with issues related to employees such

as hiring, training, development,
compensation, motivation, communication
and administration.
 A strategic HR manager is focused on forming a
long-term strategy.

 For example, when they are looking to hire for

a position, they are considering future growth
projections and goals of the company. 

 While traditional HR managers work reactively,

strategic HR managers work proactively.
 What are the five important functions of
human resources?
 Recruitment and on boarding. Finding the

right people to work in your business can be

difficult.
 Performance management and training.
 Building and maintaining company culture.
 Business communications.
 Legal and regulatory compliance.
 Objectives of HRM (What is the bigger purpose of HRM)

 To help the organization reach its goals: HR department, like other

departments in an organization, exists to achieve the goals of the
organization first and if it does not meet this purpose, HR department
(or for that matter any other unit) will wither and die.

 To employ the skills and abilities of the workforce efficiently: The

primary purpose of HRM is to make people’s strengths productive and to
benefit customers, stockholders and employees.

 To provide the organization with well-trained and well-motivated

employees: HRM requires that employees be motivated to exert their
maximum efforts, that their performance be evaluated properly for
results and that they be remunerated on the basis of their contributions
to the organization.
 To increase to the fullest the employee’s job
satisfaction and self-actualization: It tries to
prompt and stimulate every employee to realize
his potential. To this end, suitable programmes
have to be designed aimed at improving the
Quality of Work Life (QWL).
 To develop and maintain a quality of work life: It
makes employment in the organization a
desirable, personal and social, situation. Without
improvement in the quality of work life, it is
difficult to improve organizational performance.
 To communicate HR policies to all employees: It is
the responsibility of HRM to communicate in the
fullest possible sense; tapping ideas, opinions and
feelings of customers, non-customers, regulators
and other external public as well as understanding
the views of internal human resources.
 To be ethically and socially responsive to the needs
of society: HRM must ensure that organizations
manage human resource in an ethical and socially
responsible manner through ensuring compliance
with legal and ethical standards.
 How does HR contribute to profitability?
 HR must have a strategy for identifying the

best ways to entice high-performers to join

your team and vision. 

 Offering benefits and policies that show you

value a happy workforce not only attracts and
retains talent, but it also increases
productivity and drives profitability.
 How do we go from Good to Great?

 Create a vision. Without a crystal clear vision of what you

are going to accomplish, you won't know where to start.
 Turn adversity into advantage.
 Cultivate a champion mindset.
 Master your body.
 Practice positive habits.
 Build a winning team.
 Be of service to others.
 Champion Mindset
 The mindset of a champion is flexible and

strong.
 Champions harbor the ability to cope with

setbacks and obstacles, but they also have

the strong will to succeed and overcome any
failures that come their way.
 It is their strong belief in themselves or a

higher power that keeps them mentally adept

(skilled) and resilient (flexible).
 Job Satisfaction

 Job satisfaction is defined as the level of

contentment employees feel with their job.

 This goes beyond their daily duties to cover

satisfaction with team members/managers,
satisfaction with organizational policies, and
the impact of their job on employees'
personal lives.
 What is job satisfaction and examples?

 It is the positive response employees experience while

doing their job.

 If employees are satisfied with their jobs, they feel

motivated and happy.

 Employees feel satisfied when they gain what they have

been hoping for from the job.

 This could include career growth, a better salary, a good

working environment, etc.
 The 3 Characteristics of the Champion
Mindset

Their abhorrence (disgust) to being ordinary.

Their courage to confront conventional
wisdom. Their conviction that adversity –
even failure – is integral to success.
 Why is strategic human resource management important in
today's business environment?
 Strategic Human Resource Management is essential
for retaining the best talent and developing human resources.
It focuses on making employees feel valued and engaged so
that they are motivated to stay with the company.
 What is the strategic role in human resources in the company?
 Strategic human resource management (strategic
HRM) provides a framework linking people management and
development practices to long-term business goals and
outcomes. It focuses on longer-term resourcing issues within
the context of an organization's goals and the evolving nature
of work.
 What are today's most common strategic HRM
issues and challenges facing organizations?
 8 of the Biggest Challenges for HR in 2023
 Engaging the Workforce.
 Attracting Talent to the Enterprise.
 Managing Relationships.
 Training and Development Strategies.
 Talent Retention.
 Diversity in the Workplace.
 Embrace Inevitable Change.
 Employee Health and Well-Being.
 A system is a set of interrelated but separate
elements or parts working together for a
common goal.

 For example, HRM is a system that may have

parts such as procurement, training,
performance appraisal and reward, etc. One
part affects and is affected by the other.
 How many types of approaches are there in
management? (Elaborate)

 There are four types of management

approaches will be mention clearly in this
report include classical approach, human
relation approach, system approach and
contingency approach.
 Very Short Notes on the System Approach to HRM
 A system is a set of interrelated but separate elements or parts working towards a
common goal.
 The enterprise procures and transforms inputs such as physical, financial and human
resources into outputs such as products, services and satisfactions offered to people at
large.
 To carry out its operations, each enterprise has certain departments known as
subsystems such as production sub-system, finance sub-system, marketing sub-
system, HR sub-system etc. Each sub-system consists of a number of other sub­systems.
 Note: It should be noted here that, the various internal sub-systems of the organization
operate within the framework of external environment consisting of political, social,
economic and technological forces operating within and outside a nation.
 Management is primarily dealing with human beings and human problems are present
everywhere. According to Lawrence Apply, “management is the development of people,
not the direction of things”.
 As the central sub-system, HRM interacts closely and continuously with all other sub-
systems of an organization.
 The quality of people in all sub-systems depends largely upon the policies, programmes
and practices of the HRM sub-system.
 HRM has become very significant in the modern era of
automation and computerization, because machine is
useless without competent people who can run it. The
significance is due to the following factors:
 1. Increase in the size and complexity of organizations.
 2. Rise of professional and knowledgeable workers.
 3. Rapid technological developments.
 4. Increasing proportion of women in the workforce.
 5. Growing expectations of society from employers.
 6. Revolution in information technology.
 7. Rapidly changing jobs and skills requiring long-term
manpower planning.
 People have always been central to organizations
but their strategic importance is increasing in
today's knowledge-based industries.
 When properly motivated, even ordinary people
can deliver extraordinary results.
 HRM is responsible for the people dimension of
the organization.
 It is a pervasive(invasive) force, action-oriented,
individually-oriented, development oriented,
future-focused, and integrative in nature and is a
comprehensive function.
 HRM mainly covers three broad areas: personnel aspect,
welfare aspect, and industrial relations aspect.

 HRM aims at achieving organizational goals meet the

expectations of employees; develop the knowledge, skills and
abilities of employees, improve the quality of working life and
manage human resources in an ethical and socially
responsible manner.

 From an organizational standpoint, good HR practices help in

attracting and retaining talent, train people for challenging
roles, develop their skills and competencies, increase
productivity and profits and enhance (improve) standard of
living.
 HR can be a source of competitive advantage,
when the talents of people working in the
company are valuable, rare, difficult to imitate
and well organized to deliver efficient and
effective results.

 Strategic HRM is the linking of HRM with key

goals and objectives with a view to improve
business performance and develop
organizational cultures that foster innovation
and flexibility.
 Strategic HR differs radically from traditional HR in a
number of ways.

 The field of HRM evolved both in India and elsewhere, over

a number of years to its present level of sophistication and
use of proactive methods.

 The effective use of people is the critical factor in the

successful accomplishment of corporate goals.

 To this end HR managers need to understand the needs,

aspirations of employees proactively, face the challenges
head on and resolve issues amicably in the years ahead.
 Infosys HR Head Krish Shankar On The Future Of Hiring
(Video)
 Questions
 Tell me something about yourself. Reasons for hiring you
 What attracted you to our company?
 Tell me about your specific strengths and weaknesses
 Where do you see yourself in five years?
 Tell me about a time where you encountered a business
challenge?
 Tell me one of the greatest mistakes which you have
committed in your life which has given you a hard hitting
lesson
 Global HR
 Is how international employers manage
geographic, linguistic and cultural differences
amongst their workforce to achieve maximum
productivity and engagement.

 Its primary responsibilities include: Recruiting

suitably skilled employees. Supporting
regulatory compliance.
 Global HRM ensures that a company's policies and
processes fully support its worldwide vision -
providing the knowledge, tools, and oversight
needed to create a successful working environment
across a diverse set of employees and teams.
 International HRM is involved with the management
of employees in the three nation categories i.e.
home country, host country and third country.
 Domestic HRM is involved with the management of
employees in only one or single country.
 Scope of Global HRM

 It covers but is not limited to HR planning,

hiring (recruitment and selection), training
and development, payroll management,
rewards and recognitions, Industrial relations,
grievance handling, legal procedures etc.
 When staffing overseas positions, the multinational
corporation (MNC) has three major options:
 (1) an ethnocentric staffing approach, employing host
country nationals;
 (2) a polycentric staffing approach, employing home
country nationals; and
 (3) a geocentric staffing approach, employing third
country nationals.
 Host country nationals comprise the local workforce
that can be hired by the international firm.
 Home country nationals are those from the
corporation’s home country.
 Third country nationals are citizens from nations other than the host country
nationals in developed countries.

 The major underlying objective of human resource planning is to lay the

foundation from which the organization will always have the right people in
the right places to do the work required by the organization.

 Human resource forecasting is the process by which an organization

estimates its future human resource needs.

 Once an organization has estimated its future demand and supply of human
resource, the next step in the staffing process is to match the two forecast to
identify areas of future overstaffing and areas of future manpower shortages.

 In order to be certain the recruitment process follows prescribed guidelines;

organizations may establish recruitment; policies.
 Recruitment can be categorized into two types: (1) external
recruitment; and (2) internal recruitment.

 One technique of the recruitment process is known as the realistic

job preview (RJP), by which every candidate is given all the pertinent
and realistic information about both the job and organization. Ideal
selection identifies the best fit between the person and the job. There
are seven basic factors in the selection process:
 (1) application forms;
 (2) interviewing;
 (3) assessment centers;
 (4) employment testing;
 (5) reference checks;
 (6) physical examinations; and
 (7) selection validation.
 There are three basic sources the MNCs can tap
for overseas positions:
 (1) home or parent country nationals (PCNs); (2)
host country nationals (HCNs); and
 (3) third country nationals (TCNs).
 The four approaches to multinational staffing
decisions—ethnocentric, polycentric, geocentric,
and regio centric—tend to reflect the managerial
philosophy towards international operations held
by top management at headquarters.
 Personality and psychological tests have been used in the selection
process but the effectiveness of such tests as predictors of cultural
adjustment is questioned.

 Willis (1984) states that if tests are used they should be selected with care
and regard for reliability and validity.

 Once an effective workforce has been attracted to the employing

organization, the next phase of human resource management is that of
developing an effective workforce.

 This is an on-going, continuous developmental process that reflects the

constant changes in the competitive marketplace.

 The task of developing an effective workforce entails orientation, training

and development, and performance appraisal.
 Recruitment is the process of finding,
screening, hiring and eventually on boarding
qualified job candidates.

 Recruitment refers to the process of

identifying, attracting, interviewing, selecting,
hiring and on boarding employees.

 In other words, it involves everything from the

identification of a staffing need to filling it.
 What are the 7 steps of recruitment?

 Step 1: Identify the hiring needs. What are your

existing hiring needs?
 Step 2: Prepare job descriptions.
 Step 3: Devise your recruitment strategy.
 Step 4: Screen and shortlist candidates.
 Step 5: Interview Process.
 Step 6: Make the offer.
 Step 7: Employee On boarding.
 Identify the hiring needs. What are your existing
hiring needs?

The first and foremost process of recruitment

plan is identifying the vacancy.

 This process begins with receiving the

requisition for recruitments from different
department of the organization to the HR
Department, which contains − Number of posts
to be filled.
 Prepare Job Descriptions

 A job description is a useful, plain-language

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.
 A job description summarizes the essential
responsibilities, activities, qualifications and
skills for a role.

 Also known as a JD, this document describes

the type of work performed.

 A job description should include important

company details — company mission, culture
and any benefits it provides to employees.
 Job Description v Job Specification

  Job description usually lists out the job title,

location, job summary, working environment,
duties to be performed on the job, etc.

 A job specification lists out the qualifications,

experience, training, skills, emotional
attributes, mental capabilities of an individual
to perform the job.
 The job description will usually appear on the
posting before the job specification.

 It includes general information pertaining to

the job, which is useful when advertising the
role opening.

 Some information it may list includes: The job

title, location, duties, and summary.
 Devise your recruitment strategy

 A recruiting strategy is a plan of action to

help you successfully identify, attract and hire
the best candidates for your open roles. 

 These are basic starting points that can help

you recruit the job seekers you are looking
for.
 Recruitment Strategies

 Let Them Feel Like They Are Your Customers.

 Your Job Description Must Stand Out.

 Invest in HR Technology. 

 Leverage Your Current Employees. 

 Harness The Power of Social Media and Professional

Networking.
 Screen and shortlist candidates

 Is the process of reviewing job applications

and selecting the candidates that are best
suited for the position based on
predetermined criteria, thus creating a
shorter list of qualified candidates to move
forward with.
 In the recruitment process, short listing
comes after sourcing (finding and attracting)
and before interviewing and further
assessing.

 Screening and short listing often happens

simultaneously: as you screen resumes from
candidates, you shortlist the best ones to
move forward.
 Interview Process
 The process involved in interviewing a person
includes the following steps: recruit new
candidates; establish criteria for which
candidates will be rated; develop interview
questions based on the analysis; set a time line
for interviewing and decision making; connect
schedules with others involved in the interview.
 7 Steps for a Successful Interview
 Prepare Thoroughly. Preparation goes beyond just
understanding and researching the company's
website and perusing the annual report.
 Make a Good First Impression.
 Run Offense, Not Defense.
 Use a Nonverbal Strategy.
 Be Positive.
 Connect All the Dots.
 Ask for the Job.
 Connect the dots

 Those who “connect the dots” make a logical or implied

connection between facts or disparate pieces of information in
order to arrive at a solution or conclusion.

 Connecting the dots is not an easy skill to learn, but there a few
easy things you can do to promote the ability within yourself.

 Non verbal strategies

 Non-verbal communication strategies are ways you communicate

without speaking, for example through facial expressions, hand
gestures, eye contact, and body language.
 Make the offer
 Making a job offer is the final stage of

recruitment and selection.

 Once a candidate is selected, he/she will be

issued an offer letter, which describes the
designation, job location, role,
responsibilities, remuneration, benefits, and a
few terms related to the company policies.
 Employee On boarding

 Refers to the processes in which new hires

are integrated into the organization.

 It includes activities that allow new employees

to complete an initial new-hire orientation
process, as well as learn about the
organization and its structure, culture, vision,
mission and values.
 Briefly, internal recruitment is when you
source candidates to fill a role from within
your existing workforce. 

 External recruitment is when you go outside

of your company to attract people you've
never met before.
 Internal Sources of Recruitment
 Promotions.
 Transfers.
 Recruiting Former Employees.
 Internal Advertisements (Job Posting).
 Employee Referrals.
 Previous Applicants.
 Pros and Cons of Internal Sources of
Recruitment.
 Employment Exchanges.
 When companies recruit candidates who are
not a part of the organization, it is called
external recruitment.

 External recruitment is an intensive process

wherein companies have to post the job
descriptions on different job boards, create
and engage with the talent pool, improve
employer branding, and so on.
 A job board is a website used by employers
to advertise their job vacancies to job
seekers.

 Job seekers can use job boards to search for

new job opportunities in their area and
profession.

 Some well-known job board sites are Indeed,

Glassdoor, and Careerjet to name a few.
 Job boards: It is probably the most common
and effective external recruitment method, as
recruiters can reach a much wider talent pool.

 In fact, job boards make it smoother for

candidates to find open positions and apply
for them. This further speeds up the
recruitment process.
 Selection of an employee is a process of
choosing the applicants, who have the
qualifications to fill the vacant job in an
organization.

 Selection is a process of identifying and

hiring the applicants for filling the vacancies
in an organization.
 Selection is the process of recognizing and
choosing the best candidate out of several
potential candidates for a job.

 The candidates who are not suitable for the

job are eliminated.

 For selection, the candidates have to give

several employment tests and interviews.
 In Human resource management, the selection refers
to choosing the right candidates from the pool of
eligible candidates to fill the vacant job positions in
the organization.

 Selection is the process of recognizing and choosing

the best candidate out of several potential candidates
for a job.

 The candidates who are not suitable for the job are
eliminated. For selection, the candidates have to give
several employment tests and interviews
 Personnel selection procedure helps get
qualified workers.

 Recruitment helps to hire only desirable

candidates and is the key to creating a
competitive team that really adds value to the
company.
 Types of Selection Process
 Application forms and CVs.
 Online screening and shortlisting.
 Interviews.
 Psychometric testing.
 Ability and aptitude tests.
 Personality profiling.
 Presentations.
 Group exercises.
 A psychometric test is used to assess a
candidate's cognitive ability and their
personality.

 From a candidate's response psychometric

testing can predict valuable insights such as
job performance, competence, and
motivations. There are two general types of
psychometric tests: ability tests and
personality tests.
 Psychological tests are classified into several types,
including intelligence tests, aptitude tests, vocational tests,
aptitude tests, and personality tests.

 Advantages of Selection

 It helps avoid any biasing while recruiting the right candidate.

 It helps eliminate the candidates who are lacking in

knowledge, ability, and proficiency.

 It provides a guideline to evaluate the candidates further

through strict verification and reference-checking.
 Reference check refers to a recruiting process method
used by hiring managers/recruiters to get more
information about a candidate by contacting his/her
previous employers, schools etc.

 A reference check is when a hiring manager, employer, or

recruiter contacts a job candidate's former workplace to
get more information on the candidate's performance and
skills.

 The purpose of a reference check is to ensure the

candidate has the qualifications needed for the role the
employer is trying to fill.
 Placement and induction

 Placement is a process of assigning a specific

job to each of the selected candidates.

 Once an employee is selected and placed on

an appropriate job, the process of
familiarizing him with the job and the
organization is known as induction.
 Induction of Employees: Once the employee is
selected and placed in the appropriate job,
the next step is to make him familiar with the
job and the organization.

 Induction is a planned process through which

the new recruit is introduced to the job and
the organization.
 Pre-Induction: information provided prior to
the new employee starting work.

 Induction: The first day and subsequent

transition into the workplace.

 Post-Induction: follow-up and adjustment

after the new role has started.
 Work Placement allows you to put the theory of what you
have learnt in college into real life work practice, whilst
also helping you gain extra knowledge and lifelong skills
that you can carry forward to your future career.

 Induction training helps employees to get to know their

colleagues and the company better.
 
 This can help to improve morale and job satisfaction. In
addition, induction training can help employees to
identify any training or development needs they may
have.
 Manpower Planning
 Is essentially a process of getting the number

of qualified employees and seek to place the

right employees in the right job at the right
time, so that an organisation can meet its
objectives.

 Manpower Planning or Human Resource

Planning is a forward looking function.
 HRP consists of putting right number of people,
right kind of people at the right place, right
time, doing the right things for which they are
suited for the achievement of goals of the
organization.

 HRP has got an important place in the arena of

industrialization. Human Resource Planning has
to be a systems approach and is carried out in a
set procedure. The procedure is as follows:
 There are four general steps in the HRP
process:

 identifying the current supply of employees,

 determining the future of the workforce,
 balancing between labor supply and demand,

 developing plans that support the company's

goals.
 What is the purpose of manpower planning?

 The objective of manpower planning is to

forecast staffing level needs and work with
company managers to make sure each
department is properly staffed.

 The human resources group plans for seasonal

rises in employment needs to ensure that
production levels and customer service quality
are not affected.
 Need of Manpower Planning
 Manpower Planning is a two-phased process because manpower planning not
only analyses the current human resources but also makes manpower forecasts
and thereby draw employment programmes. Manpower Planning is
advantageous to firm in following manner:
 Shortages and surpluses can be identified so that quick action can be taken
wherever required.
 All the recruitment and selection programmes are based on manpower planning.
 It also helps to reduce the labour cost as excess staff can be identified and
thereby overstaffing can be avoided.
 It also helps to identify the available talents in a concern and accordingly
training programmes can be chalked out to develop those talents.
 It helps in growth and diversification of business. Through manpower planning,
human resources can be readily available and they can be utilized in best
manner.
 It helps the organization to realize the importance of manpower management
which ultimately helps in the stability of a concern.
 Example of Manpower Planning
 These companies have multiple projects
going on at a single time and upcoming
projects in the pipeline.

 If they hire more people without planning

they would end up with many resources on
the bench which would eat into profits and if
they keep waiting until the last.
 Manpower is the total number of people who
can work to get something done.

 The term manpower can mean "labor force,"

"workforce," "workers," or simply "people,"
and despite the man, it applies to both men
and women.
 The objective of manpower planning is to
forecast staffing level needs and work with
company managers to make sure each
department is properly staffed.

 The human resources group plans for

seasonal rises in employment needs to
ensure that production levels and customer
service quality are not affected.
 Manpower planning enables organizations to
have accurate estimate of number of
employees to accomplish set goals, reduce
waste in employment, lessen uncertainties
about current personnel level/needs and
eliminates the mistakes involved in staffing
and enhances effective utilization of its
human resources.
 What are the types of manpower forecasting?
 The different types of Manpower Forecasts are:
 i) Short-term forecasts
 ii) Medium-term forecasts
 iii) Long-term forecasts
 iv) Policy conditional forecasts
 v) Onlookers forecasts
 vi) Optimising forecasts
 vii) Macro and micro forecasts.
 Manpower forecasting essentially means making an
educated guess about how much manpower will be
required over a period of time keeping in view the
organization's business plans.

 HR forecasting is the process of predicting demand and

supply—whether it's the number of employees or types
of skills that are needed and available to get the job
done.

 Basic forecasting techniques include: Yearly sales or

production projections.
 Human Resource Demand Forecasting is the
process of estimating the future human
resource requirement in right quality and
right number.

 Potential human resource requirement is to

be estimated keeping in view the
organisation's plans over a given period of
time.
 Human Resource supply forecasting is the
process of estimating availability of human
resource which is followed by demand
forecasting .

 For forecasting supply of human resource we

need to consider internal supply and external
supply of human resources.
 The existing number of personnel and their
skills (from human resource inventory) are
compared with the forecasted manpower
needs (demand forecasting) to determine the
quantitative and qualitative gaps in the
workforce.
 The total number of employees needed as
calculated by demand forecast is compared
with the total supply of manpower expected
to be available in the plan period.

 Such a comparison may show that there is

shortage of manpower or there is excess
manpower available with the organisation.
 A gap analysis in workforce planning is a
process that looks at an organization's
workforce and its skills and compares it to
the skills required to reach its key goals.

 It is used to identify potential deficiencies in

an organization's current workforce and
abilities.
 If used properly, it will lead to maximum
utilization of human resources.

 If used faulty, manpower planning will lead to

disruption in the flow of work, lower
production, less job satisfaction, etc.
 What are 3 factors affecting manpower
planning?

 ORGANIZATIONAL STRUCTURE. The basis of

organization (e.g. Department, function etc.)
 GROWTH AND PLANNING.
 DEMOGRAPHIC CHANGES.
 ENVIRONMENTAL UNCERTAINTIES.
 EXPANSION.
 Advantages of Manpower Planning

 It helps in growth and diversification of

business. Through manpower planning,
human resources can be readily available and
they can be utilized in best manner.

 It helps the organization to realize the

importance of manpower management which
ultimately helps in the stability of a concern.
 What are the limitations and problems of
human resource planning describe with an
example?
 The human resource planning is an expensive

process.

 All the activities carried out from the time the

manpower need arises till the final placement
of employees, consumes lot of time and is
very expensive.
 Job Analysis

 Job analysis is the process of gathering and

analyzing information about the content and
the human requirements of jobs, as well as,
the context in which jobs are performed.

 This process is used to determine placement

of jobs.
 Job analysis is a family of procedures to identify the content of a job in
terms of the activities it involves in addition to the attributes or
requirements necessary to perform those activities.

 Job analysis refers to a systematic process of collecting all information

about a specific job, including skill requirements, roles, responsibilities
and processes in order to create a valid job description. Job analysis
also gives an overview of the physical, emotional & related human
qualities required to execute the job successfully.

 Job analysis is an important step in ensuring that the right candidate is

selected. Job analysis helps the employer in recruitment and selection,
performance management, choosing compensation and benefits, etc. It
helps the employees to have a clear picture of what is actually required
of them.
  Job Analysis (Why job analysis is important?)
 Manpower Planning
 Job analysis is a qualitative aspect of manpower needs, as it determines job
requirements in terms of skills, qualities and other human characteristics. This
facilitates the division of labor into different occupations.

 Recruitment, Selection and Placement

 In order to hire a good person for the job, it is very important to know the
requirements of the job and the qualities of the person who will be doing the job.
Information on these two elements comes from the job description or job
description and helps management to tailor the job requirements as closely as
possible to the attitudes, skills, interests of employees, etc.

 Training and Development:

 Job analysis determines standard levels for job performance. Helps manage
learning development programs.
 Job analysis provides the basis for job evaluation. The purpose of a job
appraisal is to determine the relative value of the job which in turn helps
determine job compensation.

 Performance Appraisal
 Job analysis data provides a clear standard of performance for each job.
Employee performance can be objectively evaluated against the job
performance standard.

 Job Designing
 Industrial engineers may use the job analysis information in designing the
job by making the comprehensive study of the job elements.

 Safety and Health

 Management can take corrective actions to ensure the safety of workers
and reduce the risk of various hazards to eliminate harmful conditions.
 Promotions
 The job analysis is mainly based on the effective
policies. Effective policies may be formulated in
regard to promotions and transfers.

 Employment Guidance
 Job description, which is basically carried out on
the basis of Job analysis, helps the aspirates in
ascertaining the job, for which they have the
necessary ability and skills.
https://explore.darwinbox.com/hr-
glossary/job-analysis
 Labour Relations
 Job analysis serves as the basis for resolving

disputes that may arise due to quality of

performance expected of workers.