Human Resource Management

Semester II 203 – Human Resource

Management
3 Credits Compulsory Generic Core
Course
Unit2. HR Acquisition & Retention:

Human Resource Planning: Definition, Objective, Need and Importance,

HRP Process, Barriers to HRP. Job Analysis Process – Contents of Job
Description & Job Specification, Job description Vs job specification, Job
design, Factors affecting Job design, Job enrichment Vs job enlargement.
Recruitment Introduction & Sources of Recruitment, Difference between
recruitment and selection-Recruitment, Selection Process, Induction and
Orientation. Career Planning-Process of career planning and development
Succession Planning Process, Transfer and Promotion. Retention of
Employees: Importance of retention, strategies of retention. (8+2)
Unit2. HR Acquisition & Retention
Human Resource Planning is the process by which an organization ensures
that it has the right number and kind of people, at the right places, at the
right time, capable of effectively and efficiently completing those tasks that
will help the organization achieve its overall objectives.

HR/ Manpower Planning is the process of acquiring and utilizing human

resources in the organization. It ensures that the organization has the right
number of employees in the right place at the right time.

Success in business is dependent on:

Reacting quickly to opportunities
Rapid access to accurate information
 Objectives of HRP

 Prevent Overstaffing & Understaffing. When organization has too many

employees, it experiences a loss of efficiency in operations due to
excessive payroll costs.

 Few employees results in lost sales revenue as the organization is unable

to satisfy existing demand of customers.

 HRP helps to ensure that operations are not only efficient but also
timely in response to customer demand.

 HRP helps right employees with the right skills in right place at right
time. Organization needs to anticipate the kinds of employees they need
in terms of skills, work habit & personal characteristics so that best
employees are hired, fully trained & ready to give best performance.

 HRP next objective is to provide direction for all human resource

activities & system. HRP sets the direction for all other HR functions,
such as staffing, training & development, performance measurement &
compensation.
 Why Human Resource Planning is important ?

 Linking business strategy with operational strategy:

HRP is an important process to maintain the link between business strategy

and it operation. It follows different procedures including the need to
assess the impact of technological changes on new jobs and new skills

 Minimizing the risk of loosing:

By forecasting the needs of technical and other human resources it can

minimize the future risk of loosing. Delay in recognizing human resources
might be costly and expensive in the future.

 HRP needs for HRD:

HRP is important for planning the investment in the development and

utilization of human resources. Any investment in the HR activities is
considered an investment for the future growth and development of the
organization.
 HRP is not in isolation :

HRP recognizes that there must be an explicit link between planning

function of human resources and other organizational functions, such as
strategic planning and market forecasting.

 HRP promotes awareness :

HRP promotes the awareness that human resource activities are equally
important at every level of the organization. Both line and staff managers
have to be involved in HR planning activities.
 The HR Planning Process
The four phases or stages of HR planning:

 Situation analysis or environmental scanning

The first stage of HR planning is the point at which HRM and strategic
planning first interact.

 The strategic plan must adapt to environmental circumstances

 HRM is one of the primary mechanisms an organization can use during
the adaptation process

Without a plan to support recruitment and selection, it is impossible to stay

competitive

 The problems associated with changing environments are greater

today than ever before
 Success now depends on being a “global scanner” (a social E-commerce
platform targeting the middle-class )
  Forecasting demand
This phase of the process involves estimating:

 How many employees will be needed

 What kinds of employees will be needed
 The demand for employees is closely tied to the strategic direction
that the organization has chosen
 Key to effective planning is accurately and freely sharing
information

 Analyzing the Current Supply of Employees

This phase of HR planning should answer the question:

 “How many and what kinds of employees do I currently have, in

terms of the skills and training necessary for the future?”

This involves more than simply counting current employees

 The smaller and more centralized the organization, the easier it is

to conduct a skills inventory.
The Skills Inventory

Both a skills inventory and a management inventory:

 Identify the skills, abilities, experiences, and training employees
currently have
 Are useful for career planning, management development, and
related activities

 Action Decisions in HR Planning

After the supply of and demand for workers has been analyzed, the two
forecasts must be compared Whenever there is a gap between the two
estimates, a course of action must be chosen
 PROCESS OF JOB ANALYSIS

STRATEGIC
CHOICES
Use Of JD & JS

GATHER -PERSONNEL PLANNING

INFORMATION -PERFORMANCE APPRAISAL
-HIRING
-TRAINING & DEVELOPMENT
PROCESS -JOB EVALUATION &
INFORMATION COMPENSATION
-HEALTH & SAFETY
-EMPLOYEE DISCIPLINE
JOB DESCRIPTION -WORK SCHEDULING
-CAREER PLANNING

JOB-SPECIFICATION
 Job description

A job description is a written record of the duties ,responsibilities &

requirements of a particular job. It essentially makes it clear “what is to be
done", and “ how is to be done", and “why”.

 Give a clear, concise & readily understandable picture of the whole job.

 Describe in sufficient detail each of the main duties & responsibilities.

 Ensure that a new employee understands the job if he reads the job
description.
 Contents of JD organized as follows:

 Job identification

 Job summary

 Job duties & responsibilities

 Supervision given & received

 Relation to other jobs

 Machines, tools & materials

 Working conditions /Hazards

 Definition of unusual terms

 Comments that add to & clarify the above.

 Job Specification(or Person specification)

Once there is clear picture of job ,it becomes necessary to determine

what kind of person should be recruited to fill it.JS relates to:

• Physical Characteristics

• Psychological characteristics

• Personal Characteristics

• Responsibilities

• Other features :age,sex,education,experience & language ability

 Job design
A Job is a collection of tasks duties, responsibility knowledge necessary to
be Performed to achieve organizational objectives.

Job design is the process of creating a job that enables the job leads to
higher productivity and quality of work, while also leading to higher job
satisfaction, lower absence, and organization to achieve its goals while
motivating and rewarding the employee. This means that a well-designed
lower employee turnover intentions

Job Enlargement

The Job Enlargement refers to the horizontal expansion of jobs wherein

more and more activities, and tasks are added to the existing job scope at
the same level in the organization
 Job enrichment
Job enrichment is the opportunity given to the employees to explore their
abilities when some tough task is assigned to them. The job enrichment is
the vertical restructuring of moral excellence in which more authority,
autonomy, control is given to the employees to perform a given set of a job
 Meaning of Recruitment

 According to Edwin B. Flippo, “Recruitment is the process of

searching the candidates for employment and stimulating them to
apply for jobs in the organisation”

 It is a linking activity that brings together those offering jobs

and those seeking jobs
 FACTORS AFFECTING RECRUITMENT

INTERNAL FACTORS
EXTERNAL FACTORS

ORGANISATION
IMAGE
LABOUR MARKET

PERSONAL POLICY
LEGAL PROVISION

JOB ATTRACTIVENESS UNEMPLOYMENT

SITUATION

DEMOGRAPHIC
UNION INTERFERENCE FACTORS

SIZE OF ORGANISATION
 CHARACTERISTICS OF RECRUITMENT

 It is a positive function.

 It is a pervasive function.

 It is a linking activity.

 It is a continuous process and not a short task.

 SOURCES OF RECRUITMENT

PROMOTIONS

INTERNA
L
SOURCES
FACTORY
TRANSFERS GATE
EXTERNA HIRING
L
SOURCES
FILE OF
UNSOLICITED
APPLICATION
S
Meaning of Selection

 Selection involves a series of steps by which the candidates are

screened for choosing the most suitable persons for vacant posts.

 The process of selection leads to employment of persons who possess

the ability and qualifications to perform the jobs which have fallen
vacant in an organization.
SELECTION PROCEDURE

 There is no standard selection process that can be followed by all

the companies in all the areas. Companies may follow different
selection techniques or methods depending upon the size of the
company, nature of the business, kind and number of persons to be
employed, government regulations to be followed etc. Thus each
company may follow any one or the possible combinations of
methods of selection in the order convenient or suitable to it.
Steps in scientific selection process

Job analysis

recruitment

Application form

Written
examination

Preliminary
interview

Business games
 Selection tests

Final interview

Medical examination

Reference check

Line manager decision

Job offer

Employment
DIFFERENCE BETWEEN RECRUITMENT AND SELECTION
Recruitment
 Process of searching
candidates for vacant jobs
and making them apply for
the same.
 It is a positive process
 Aims to attract more and
more employees
 Firm notifies through
various sources and
distributes application form
to candidates.
Selection
 Process of selection of right
types of candidate and offering
them jobs.
 It is a negative process.
 Aim to reject unsuitable
candidates and pick up the most
suitable for the vacant job
 Firm ask the candidate to pass
through number of stages.
Succession Planning

"Succession planning" is a process for identifying and developing internal

people with the potential to fill key leadership positions in the company.
Succession planning increases the availability of experienced and capable
employees that are prepared to assume these roles as they become
available.

“Succession planning is a means of identifying critical management

positions starting at manager and supervisor levels and extending up to the
highest position in the organization.”
William J. Rothwell

Succession planning is a process whereby an organization ensures that

employees are recruited and developed to fill each key role within the
company. Succession planning ensures you can fill key roles from within your
organization.
 Succession planning is a conscious decision by an organization to foster
and promote the continual development of employees, and ensure that
key positions maintain some measure of stability, thus enabling an
organization to achieve business objectives.

 Succession planning is defined as "any effort designed to ensure the

continued effective performance of an organization, division,
department, or work group by making provisions for the development
and replacement of key people for key positions and work activities over
time" (Rothwell, 1994, p. 5).
Objectives of succession planning

 Identify those with the potential to assume greater responsibility in

the organization.

 Provide critical development experiences to those that can move into

key roles.

 Engage the leadership in supporting the development of high-potential

leaders.

 Build a data base that can be used to make better staffing decisions
for key jobs.

 Improve employee commitment and retention.

 Meet the career development expectations of existing employees .

 Counter the increasing difficulty and costs of recruiting employees

externally .
Important Considerations for Succession Planning

 What is the business case for succession planning in the organization?

 Is planning based on short- and long-term goals and objectives?

 Have the key stakeholders and decision-makers been consulted?

 How involved are the leaders?

 Is succession planning linked with workforce planning?

 Can succession planning be linked with other HR strategies?

 Is there accountability at the departmental level?

 Are HR professionals and departmental planners involved with the

planning process?
 What resources are required to plan effectively and efficiently?
 How will succession plans be evaluated?
 How will evaluation results affect decision-making?
 Do employees understand they are responsible for managing their own
career path (s)?
 Is the department capable of supporting necessary learning and
development?
 Is the work environment supportive of succession planning?
Succession Planning Process
Some key points to remember when developing learning and development
plans are:

Plans should focus on decreasing or removing the gap between expected

competencies and the current knowledge, skills and abilities of candidates.
Manage expectations – modern succession planning is based on learning and
development to fulfill employee potential, rather than merely filling a
vacancy.
There are a wide range of learning and development opportunities to
consider,
which can include:
o Job assignments that develop and/or improve a candidate’s
competencies;
o Job rotations
o Formal training.
 Key issues that need to be considered for an effective succession
plan :

 The succession planning program must have the support and backing of
the company's senior level management.

 Succession planning must be part of an integrated HR process that

includes training, development and performance appraisal.

 Identify what skills the organization will need in 5, 10 or 15 years.

 Critical positions must be identified and included in the Company's

succession planning program.

 Identify high-performers that are almost ready to step into those

critical positions.

 Analyze the workforce and identify who will be eligible for retirement
within the next five years.
 Managers need to identify the responsibilities, skills and
competencies that will be needed by their replacements

 A systematic approach for identifying, nominating and selecting

potential successors must be established.

 Background information on potential successors, such as education,

experience, skills, appraisals and potential should be reviewed.

 The training and development requirements of potential successors

needs to be determined.
Why Employee Retention Matters. Employee retention promotes the health
and success of your organization. The time, stress, and cost of hiring and
training new employees are significant, and turnover can have a negative
impact on your business outcomes.

High employee turnover increases the expenses and also has a negative
impact on the organization's morale. Implementation of an employee
retention program is an effective way of making sure that the pivotal
workers remain employed while balancing and maintaining job
performance and productivity.
 Employee Retention Strategies

 Use comprehensive hiring practices.

 Strive (make great effort to achieve) to create supportive work

environments.

 Provide proper training and development.

 Always communicate.

 Offer benefits and perks.

 Create career development plans.

 Provide effective manager training.

 Create internal recognition programs.

Promotions & Transfers

Promotion, Transfers & Separation are activities through which an ion

enterprise can be made to cope up with changing situations for adjustment
& meet special situations fluctuations in product. These functions can be
accomplished informally or formally.

Promotions
“promotion” is a term for greater responsibilities, usually higher pay &
better terms & conditions of service, a higher status of rank.

A promotion is transfer of an employee to a job which pays more money or

one that carries some preferred status". An upward advancement of an
employee is an organization to another job which commands better
pay/wages, better status/prestige, higher opportunities /challenges,
responsibility, authority, work environment, hours of work & facilities and
higher rank.
Promotion gives satisfaction to employees need for esteem, belonging &
security. It helps in retaining competent, talented, useful employees.

A promotion is vertical move in rank & responsibility.

TRANSFERS

Yoder defined transfer as “Lateral shift causing movement of individuals

from one position to another usually without involving any marked change in
duties, responsibilities, skills needed or compensation.”
It is horizontal or lateral movement of an employee from one job, section
department, shift, plant or position to another at the same or another
place where his salary, status & responsibility are same. Transfers are to
suit work situations.
Purpose of Transfers:

 To satisfy needs of an organization

 TO meet an employees own request where he feels uncomfortable

 To utilise properly the services of an employee when he is not performing

satisfactorily or management feels he may more useful elsewhere or
better utilised.

 To increase versatility of employee by shifting him from one job to

another that he may have opportunities for gaining experience.
Retention of employee

Retaining talent in an organization is important because it creates a secure

environment and helps reduce turnover rates. When companies experience
turnover, they have to reassign job responsibilities to other employees and
spend time looking for new candidates.

Importance Of Retention

Retention of a positive and motivated employee is very important for the

organization's success. High employee turnover increases the expenses and
also has a negative impact on the organization’s morale. Implementation of
an employee retention program is an effective way of making sure that the
pivotal workers remain employed while balancing and maintaining job
performance and productivity.

 Recruitment Enhancement − Effective retention strategies often begin

during the employee recruitment process.

 Employee Turnover Management − Employers implement retention

strategies to manage employee turnover and attract quality employees.
 Performance and Productivity Maintenance − Employee retention
practices help support an organization’s productivity.

 Cost Effective − An organization can significantly get benefit from

employee retention programs because of a direct effect on an employer’s
strategies.

 Increases Morale − Employees who enjoy what they do and the

atmosphere in which they work are more likely to remain employed with
their organization over a longer period of time.
INDUCTION:

Introducing the new employee to the job, job location, surroundings,

organization, organizational surroundings & various employees is final step of
employment process. Problem of adjustment & adaptability to new
surroundings & environment.

Induction plays important role in adjusting new employees to new

environment company rules & regulations.

“Induction is process of receiving & welcoming an employee when he first join

company & giving him basic information he/she needs to settle down quickly
& happily & start work.”
 Barriers In HRP
1. Lack of Support:

People think that the human resource planning is unnecessary and time consuming.
Workforce can be arranged anytime at the time of requirement, with attractive
benefits and incentives so why human resource planning. They think it is an easy
task to manipulate the workforce in the organization.

2. Wrong Perception about Human Resource Practitioner:

In this competitive business world it is very difficult and challenging to compete

with the rivals without formulating proper strategic plan. Many have the perception
that the people who formulate the human resource plan are not expert in business,
as a result of which they may commit error while formulating the human resource
plan.

3. Incompatibility of Information:

A strategic plan is set for achieving the long term goals or objectives of the
organization. At the time of formulation of strategy the used information is
basically long term oriented. But the human resource planning is formulated using
the short term information. So the information of human resource does not often
match with the information of strategy formulation.
4. Approach Confliction:

While formulating human resource planning the organization must consider

that how many people and how efficient people are needed for the smooth
functionality of the organization. Many human resource practitioners give
emphasis on number of employee and many other give emphasis on the
quality of the employee.

5. Absence of Operating Managers’ Co-Ordination:

Human Resource planning is one of the major functions of Human Resource

department of every organization. Successful planning depends on the co-
operation of all other existing departments. Mainly the operation managers’
coordination and support play very vital role in the success of human
resource planning. But very often things do not go in right direction.
 Career planning
Career planning is process of integrating employees needs & aspirations with
organizational requirements. While SP focuses on identification of vacancies
& locating the probable successor.

 In order to build commitment between the individual & the organization.

 In order to develop long range perspective

 In order to reduce personnel turnover expenses

 In order to ensure the effectiveness of the organization

 In order to allow the individual to achieve personal & work related goals.