HRM UNIT 2 - CC
HRM UNIT 2 - CC
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
2. Part of Strategic Planning: HRP has become an integral part of strategic planning of
strategic planning. HRP provides inputs in strategy formulation process in terms of deciding
whether the organization has got the right kind of human resources to carry out the given
strategy. HRP is also necessary during the implementation stage in the form of deciding to
make resource allocation decisions related to organization structure, process and human
resources. In some organizations HRP play as significant role as strategic planning and HR
issues are perceived as inherent in business management.
3. Creating Highly Talented Personnel: Even though India has a great pool of educated
unemployed, it is the discretion of HR manager that will enable the company to recruit the
right person with right skills to the organization. Even the existing staff hope the job so
frequently that organization face frequent shortage of manpower. Manpower planning in the
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
form of skill development is required to help the organization in dealing with this problem
of skilled manpower shortage
5. Foundation for Personnel Functions: HRP provides essential information for designing and
implementing personnel functions, such as recruitment, selection, training and development,
personnel movement like transfers, promotions and layoffs.
7. Resistance to Change: Employees are always reluctant whenever they hear about change and
even about job rotation. Organizations cannot shift one employee from one department to
another without any specific planning. Even for carrying out job rotation (shifting one
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Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
employee from one department to another) there is a need to plan well ahead and match the
skills required and existing skills of the employees.
8. Uniting the Viewpoint of Line and Staff Managers: HRP helps to unite the viewpoints of
line and staff managers. Though HRP is initiated and executed by the corporate staff, it
requires the input and cooperation of all managers within an organization. Each department
manager knows about the issues faced by his department more than anyone else. So
communication between HR staff and line managers is essential for the success of HR
Planning and development.
9. Succession Planning: Human Resource Planning prepares people for future challenges. The
„stars‟ are picked up, trained, assessed and assisted continuously so that when the time
comes such trained employees can quickly take the responsibilities and position of their
boss or seniors as and when situation arrives.
10. Other Benefits: (a) HRP helps in judging the effectiveness of manpower policies and
programmes of management. (b) It develops awareness on effective utilization of human
resources for the overall development of organization. (c) It facilitates selection and training
of employees with adequate knowledge, experience and aptitudes so as to carry on and
achieve the organizational objectives (d) HRP encourages the company to review and
modify its human resource policies
3. Environmental Uncertainties:
Political, social and economic changes affect all organizations and the
fluctuations that are happening in these environments affect organizations drastically.
Personnel planners deal with such environmental uncertainties by carefully formulating
recruitment, selection, training and planning, promotion channels, layoffs, flexi time, job
sharing, retirement, VRS and other personnel related arrangements.
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
4. Time Horizons:
HR plans can be short term or long term. Short term plans spans from six months
to one year, while long term plans spread over three to twenty years. The extent of time
period depends upon the degree of uncertainty that is prevailing in an organizations
environment. Greater the uncertainty, shorter the plan time horizon and vice versa.
5. Type and Quality of information:
The information used to forecast personnel needs originates from a multitude of
sources. The forecast depends to a large extent upon the type of information and the
quality of data that is available to personnel planners. The quality and accuracy of
information depend upon the clarity with which the organizational decision makers have
defined their strategy, structure, budgets, production schedule and so on
6. Nature of Jobs Being Filled:
Personnel planners need to be really careful with respect to the nature of the jobs
being filled in the organization. Employees belonging to lower level who need very
limited skills can be recruited hastily but, while hiring employees for higher posts,
selection and recruitment need to be carried out with high discretion. Organization need
to anticipate vacancies far in advance as possible, to provide sufficient time to recruit
suitable candidate.
7. Outsourcing:
Several organizations outsource part of their work to outside parties in the form of
subcontract. Outsourcing is a regular feature both in the public sector as well as in the
private sector companies. Many of the organizations have surplus labour and hence
instead of hiring more people they go for outsourcing. Outsourcing is usually done for
non critical activities. Outsourcing of non- critical activities through subcontracting
determines HRP.
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
Barriers to HRP
Human Resource Planners face significant barriers while formulating an HRP. The major
barriers are elaborated below:
1) HR practitioners are perceived as experts in handling personnel matters, but are not experts
in managing business. The personnel plan conceived and formulated by the HR
practitioners when enmeshed with organizational plan, might make the overall strategic
plan of the organization ineffective.
2) HR information often is incompatible with other information used in strategy formulation.
Strategic planning efforts have long been oriented towards financial forecasting, often to
the exclusion of other types of information.
3) Financial forecasting takes precedence over HRP.
4) Conflict may exist between short term and long term HR needs. For example, there can be a
conflict between the pressure to get the work done on time and long term needs, such as
preparing people for assuming greater responsibilities. Many managers are of the belief
that HR needs can be met immediately because skills are available on the market as long
as wages and salaries are competitive. Therefore, long times plans are not required, short
planning are only needed.
5) There is conflict between quantitative and qualitative approaches to HRP. Some people view
HRP as a number game designed to track the flow of people across the department. Others
take a qualitative approach and focus on individual employee concerns such as promotion
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
and career development. Best result can be achieved if there is a balance between the
quantitative and qualitative approaches.
6) Non-involvement of operating managers renders HRP ineffective. HRP is not strictly an HR
department function. Successful planning needs a co-ordinated effort on the part of
operating managers and HR personnel.
Recruitment:
Meaning and Definition
Recruitment forms a step in the process which continues with selection and ceases with
the placement of the candidate. It is the next step in the procurement function, the first being the
manpower planning. Recruiting makes it possible to acquire the number and types of people
necessary to ensure the continued operation of the organisation. Recruiting is the discovering of
potential applicants for actual or anticipated organisational vacancies.
Nature of Recruitment
Recruitment involves the following features:
Purpose of Recruitment
It backs the selection process with a pool of candidates‟ Curriculum Vitae (CV).
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Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
Importance of Recruitment
The purpose of the recruitment process is rather elaborate. From acquiring new talent to
continuity of business activities, the importance of an effective recruitment process never
ceases.
The recruitment process assists a company in evaluating its present and future
staffing requirements. It conducts a methodical examination of company operations to
determine the right number of recruits necessary.
The process of recruitment ensures that the daily activities of your organisation
are carried out seamlessly. It provides businesses with all necessary human resources
regularly for various job positions. The recruitment process selects individuals from a
variety of backgrounds to meet the organisation‟s needs.
4. Expands Talented
5. Cost-Effective
It focuses on minimizing total costs and time spent on finding suitable employees.
Recruitment is a well-organized and methodical approach in which a large number of
people are given a detailed description of a job opening. A good job description attracts a
large number of people at a lower cost.
Process of Recruitment
Process of Recruitment
A recruitment process is an organised approach towards searching new talent and introducing
them to the organisation.
In the absence of a systematic recruitment process, the cost of employee acquisition will rise. To
carefully understand the steps involved in the recruitment process, read below:
The recruiter first recognises the job opening regarding the department in which the
vacancy is, number of vacancies and urgency of hiring.
The recruiter needs to provide proper assistance and guidance to the candidates
willing to apply for the job.
Managing Applications:
The recruiter has to arrange the applications in an orderly manner to simplify the
task of scrutinising them.
Scrutinising Applications:
Shortlisting Candidates:
By scrutinising the applications, candidates with the matching profile are picked
out for the process of selection.
Sources of Recruitment
Sources of Recruitment can be viewed as various means of connecting the job seekers to
the organisation which have suitable job openings. In simple words, it serves as a medium for
communicating or advertising the vacant positions in the organisation to get a response from the
prospective candidates. The recruiters have to be very careful while selecting any particular
source of recruitment.
The selection of a specific source of recruitment depends upon the number of personnel to be
recruited, the cost involved in each source, accessibility of the applicants, education level of
employees to be hired, company‟s policy, etc.
The various sources of recruitment can be broadly divided into two types, which are explained in
detail below:
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
1. Previous Applicants:
To fill up the immediate openings, calling up or emailing the candidates who have
previously applied to the organisation is the cheapest and quickest source of recruitment.
2. Present Employees
The recruiter can exercise promotion (to a higher position) or transfer (inter-
department or inter-branch transfer) of the current employees instead of recruiting the
new employees.
3. Employee Referrals:
The internal sources of recruitment are beneficial to the small-sized organisation dealing in the
limited product line, which does not require much expertise. The organisation shouldn‟t be
frequently exposed to technological changes.
Read below, to have a better understanding of the related benefits and drawbacks:
Although there are some drawbacks to internal recruitment too. These are discussed below:
External sources of recruitment signify the hiring of those employees who have never been
associated with the organisation before.
The organisation needs to include new and fresh talent to become successful and to survive in the
competition. Large organisations mostly depend on external sources of recruitment.
Following are the various external sources through which the organisation acquire new
resources:
1. Advertisements:
The organisation advertises the job openings in the newspaper, media, company‟s
bulletin, social networking sites (Facebook, LinkedIn, Twitter), job portals, etc.
2. Campus Recruitment:
The organisation collaborates with the educational institutes and colleges to hire
their students for the available job vacancies, by conducting the recruitment process in
the respective college campus.
3. E-Recruitment:
The organisation uses the web-based software as a source of recruitment
involving electronic screening of candidates, online skill test, online profile checks and
interviews on video-conferencing.
4. Employment Exchange:
The organisation gets itself registered with the employment exchange, i.e. a
government-affiliated agency who have a database of many prospective candidates.
These candidates register with such employment exchanges in search of better job
opportunities.
5. Outsourcing Consultancies:
Some private consultancies are professionally working to recruit employees on
behalf of the organisation. The organisation hires such consultants on a commission basis
to acquire the desired human resource.
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
6. Walk-ins and Write-ins:
The organisations without any effort, get random applications when the job
seekers submit their CV. Either by visiting the organisation, posting the letter with CV or
mailing the CV on the company‟s mail id.
7. Contractors:
The organisation hires a contractor who provides casual workers temporarily,
especially for a particular project, and such workers have no existence in the company‟s
records.
8. Acquisition and Mergers
: At the time of the company‟s merger or acquisition of another company; it has to
lay off some of its employees as well as recruit new talents. The company structure
changes drastically.
9. Professional Associations:
External recruitment is the best means of recruitment for the medium or large organisations,
diversified into many lines of business and carrying out the bulk-hiring of employees.
Various merits and demerits of selecting external sources of recruitment have been discussed
further.
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
Merits of External Sources of Recruitment
To understand the need for external recruitment, let us go through its benefits:
External recruitment gives a fair chance to the applicants to compete and secure their
position in the organisation.
It is not a confidential process and ensures transparency.
Recruiting externally promotes and encourages the intake of new and fresh talent in the
organisation.
It is widely applicable to vacancies in all type of departments for different business
processes.
The employees recruited will come up with new and innovative ideas as well as will
know new technology and skills. All this initiates organisational success.
External sources though provide the organisation with a pool of applications, it has certain
drawbacks too. To know more, read below:
The existing employees may feel less valued and defeated and may even quit their jobs.
External recruitment is a lengthy process right from identifying the human resources
requirement, to scrutinising of applications.
It involves enormous cost incurred on the advertisements, employment exchange,
consultancies, etc.
The employees who are already working in the organisation feel dissatisfied and
demotivated if a senior post is filled up by an outsider.
The existing employees fear the loss of the job or their replacement on not fulfilling the
performance standards.
Alternatives to Recruitment
Recruitment has some disadvantages; for instance, it is a lengthy process and less cost-effective.
Therefore, many companies opt for other options instead of hiring, to get the work done, though
some of these alternatives are a temporary solution.
Outsourcing: When the organization develops a vacant position, it outsources the hiring
process to a third party which is specialised in recruitment services.
Employee Overtime: During the peak time, when the production increases gradually, the
organisation demands overtime from the employees in return for additional wages.
Temporary Employees: The organisation at times, hire temporary employees through
employment agencies to cope up with the workload in peak times. Such employees can
be any technicians, professionals or executives and are experienced personnel available at
lower wages.
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Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
Employee Leasing: The leasing companies lease out the services of their personnel to
the organisation. They are responsible for maintaining the employees‟ payroll, and in
return, they get fees from the organisation.
E-Recruitment
Methods of E-Recruitment
Sourcing is the process of searching for qualified job candidates for a current or pending position
in the company. In order to recruit candidates efficiently, it becomes important to know where
the pool of interested candidates lies. Which is why, using social media for sourcing and
attracting potential candidates is one of the most common methods used for online recruitment.
Social media is an effective tool for building employer brands and hiring potential candidates.
Platforms like Facebook, LinkedIn, Instagram have been commonly visited sites for finding,
tracking and recruiting candidates online.
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Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
Using Applicant Tracking System
An Applicant Tracking System is a software that uses an algorithm to sort out resumes of the
potential candidates and simplify the process of recruitment for the hiring HR managers. When a
lot of candidates apply for a job opening, this software helps to segregate under qualified
resumes and qualified resumes during the hiring process. So, this enables the recruiters to see the
resumes that are filtered and as per their criteria asked in the job profile. Thus, an Applicant
Tracking System is a useful method for E- recruitment.
Thanks to the internet, it is not mandatory to have job interviews in a physical space anymore.
By using free interview video tools like Skype, Google meet, Zoom etc., HR managers can
recruit the qualified candidates by interviewing them online. Nowadays, most of the companies
use an automated online interviewing system where the candidates are asked questions and are
given a certain time limit for thinking and speaking the answers. This is also the reason why this
method of E- recruitment has become very common in the corporate world.
Job boards are the websites used by the recruiters for advertising job offerings specifically. On
the contrary, Job seekers can use job boards to search for new job opportunities in their area and
profession. Some job boards use applicant tracking systems to help streamline the application
process while in others, individual job postings redirect interested candidates to company
websites to complete the application process. For example, sites like Glassdoor and Indeed allow
candidates to post their resumes for the recruiters to find them.
Now that we know what are the possible methods used by HR recruiters to hire potential
candidates, let‟s talk about the advantages these methods serve to them.
Advantages of E-Recruitment
Saves Time
If we look back at the time when HR managers used to publish job vacancies and depend on
word of mouth for finding job seekers, we‟d see how time consuming it used to be to hire a
single potential candidate and that too, in a small locality! With methods of E-recruitment
where resumes of under qualified candidates can be separated and a larger pool of job
seekers can be found, the recruitment process has just got simplified in case of time usage.
Costs in recruiting are usually high in terms of advertising, travel expenses, third-party
recruiter fees etc. Which is why, the hiring process usually takes up too much time and its
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Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
cost increases subsequently. However, with the use of online recruitment methods, labor
costs like these can be minimised by implementing a software which allows both, the job
seekers and recruiters to post free job openings on multiple social platforms just by one click.
With the use of digital tools and the web, HR recruiters can also increase the scope of
candidates. When they post about a job vacancy, it allows them to dive into the larger pool of
potential candidates which also broadens their selection decisions. As a result, they are able
to select the appropriate candidates both locally and internationally.
Recruitment systems have filtration tools to help recruiters to find the ideal candidates with
competencies that match the job position. Therefore, the filtration tools provided by E-
Recruitment systems speed up the process of sorting the candidates according to experience,
education, competencies, and many more criteria.
As we know, where there are advantages, there is always a scope of improvement due to
some disadvantages that follow along with this process. Wondering what are the
disadvantages of E recruitment? Read further!
Disadvantages of E-recruitment
Rise in Competition
One of the downsides of recruiting online is that there is also a pool of recruiters waiting to
hire the perfect candidate for their specified job role. As a result, the job post can quickly
become buried under a mountain of other job offers, forcing the HR manager to either pay
more for extra exposure or risk not being seen. When it comes to social media, it is also the
decision of the platform‟s algorithms, to reach the audience the manager wants.
Technical Issues
During online interviews on the free video platforms like Skype or Zoom video calls, it is
possible to encounter technical faults. It can be quite embarrassing for a recruiter to be
suddenly switched out of a conversation or call due to an electrical outage, while having an
unstable internet connection can be awkward. This also means if the company isn‟t good at
technology, they might encounter such glitches more often.
With the ease in the process of applying for a job online, it also means that underqualified
and fraud candidates might apply for the job role. With hundreds of applicants, many of them
will not be suitable for or serious about the role, thus diluting the quality of your talent pool.
Prepared By
Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
Selection Meaning
The selection process refers to selecting the right candidate with the required qualifications and
capabilities to fill the vacancy in the organization. The selection process is quite a lengthy one
and also complex. It involves a series of steps before the final selection. The procedure of
selecting the employees may vary from industry to industry according to their own needs. Every
organization designs their selection process while keeping in mind the urgency of hiring the
people and the requisites for the vacancy of the job.
Importance of Selection
Selection is an important facet for the organization, it‟s importance can further be summed up as
below-
1. It identifies the right candidates for the company.
2. Recruiting talented employees can help increase the overall performance of the
organization.
3. Helps in avoiding false negatives and false positives of the candidates.
E-Selection
E selection begins where e-recruitment ends. Gueutal and Stone (2005) define e- selection as a
process of web-based testing, face-to-face interviews, and job offers.
Most organizations use e-selection to achieve specific purposes, such as cost reduction,
maximum utilization of human resources, and sustainability.
Orientation is the planned introduction of new employees to their jobs, coworkers, and the
organization. After orientation, employees can work comfortably.
Employee orientation
It gives ideas, philosophy, and information about the organization to the newly
appointed employees to adjust themselves to the organization. Orientation helps with new
employee assimilation and is a part of the organization’s continuous socialization process.
Employee orientation is the process of introducing newly hired employees to their new workplace. It
provides the basic organizational information employees need to feel prepared for their new team,
department, and role within the company. Effective employee orientation makes employees aware of
company policies and expectations, handles essential paperwork, and answers any questions or
concerns they may have before they transition into their new positions.
Gary Dessler states, “Employee orientation is a procedure for providing new employees with basic
background information about the firm”.
Purpose of Orientation
To reduce startup costs: Proper orientation can help the employee get up to speed much
more quickly, thereby reducing the costs associated with learning the job.
To reduce anxiety: Any employee, when put into a new, strange situation, will
experience anxiety that can impede his or her ability to learn to do the job.
Proper orientation helps to reduce the anxiety that results from entering into an unknown
situation and helps provide guidelines for behavior and conduct, so the employee doesn‟t
have to experience the stress of guessing.
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Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
To reduce employee turnover: Employee turnover increases as employees feel they are
not valued or are put in positions where they can‟t possibly do their jobs.
Orientation shows that the organization values the employee, and helps provide the tools
necessary for succeeding in the job.
To save time for the supervisor: Simply put, the better the initial orientation, the less
likely supervisors and co-workers will have to spend time teaching the employee.
The main reasons orientation programs fail: The program was not planned; the employee
was unaware of the job requirements; the employee does not feel welcome.
Employee orientation is important: orientation provides a lot of benefits, and you can
use feedback to make your orientations even better.
1. General-idea Orientation
As the name suggests, this type of orientation covers basic information regarding the
organization. This may include details relating to policies and practices, rules and regulations
with regard to timing, and attendance. Also, information concerning safety rules, emergency
exits, fire extinguishers and first-aid is given to employees. Further, compensation-related
details like salary, incentive schemes, facilities etc. are also provided to them.
3. Traditional Orientation
If an organization uses general and frequently used materials to give orientation to the
new joiners it is traditional orientation. In these cases, orientation is regarded as a ritual or
one-off practice by the firm. It tends to engage the employees on the first day and help them
get rid of their initial nervousness.
4. Modern Orientation
Strategic Orientation
Behavioural competencies
Competencies for strategic leaders
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Dr.K.Sundaresh
Asst.Prof , School of Law, SRMIST
Indigenous relations behavioural competencies
Strategic Orientation
Strategic orientation is the ability to link the long-range vision of Indigenous self-determination
to daily work, ranging from a simple understanding to a sophisticated awareness of the full
impact of thinking and actions. It is the ability to think and operate broadly, with the goal of
sustainability, to further the goals of Indigenous peoples in a way that meets the collective public
interest. This also means taking responsibility to collaboratively design and implement steps to
redress past harms and set frameworks in place to prevent their recurrence.