HRM Module-2:

2 a. Human Resource Planning (HRP)

1. Meaning of HRP
 HRP is the process of identifying the number and type of employees a company needs in the
future.
 It ensures the right people are in the right job at the right time.
Example: If a company is planning to expand, HRP helps them know how many and what kind of
employees they’ll need.

2. Objectives of HRP
1. Right Talent: To get the right number and type of people.
2. Future Planning: To plan for future manpower needs.
3. Minimize Surplus/Shortage: Avoid having too many or too few employees.
4. Training & Development: Prepare employees for future roles.
5. Efficient Use of HR: Use human resources in the best way.
6. Support Strategic Goals: Align HR plans with company goals.

3. HRP Process
1. Analyzing Organizational Plans: Understand company’s goals and expansion plans.
2. Demand Forecasting: Estimate how many and what kind of employees will be needed.
3. Supply Forecasting: Check how many employees are available (internally & externally).
4. Matching Demand & Supply: Balance between need and availability of workers.
5. Action Plan: Take steps to hire, train, transfer, or reduce staff.
6. Monitoring & Control: Regularly check if the HR plan is working or needs changes.
Demand Forecasting Techniques
(Used to estimate future HR needs)
1. Expert Opinion
o HR managers or senior staff give estimates based on experience.
2. Trend Analysis
o Use past employment data to predict future needs.
o Example: If a company hired 100 people last year and business grew 10%, it may
need 110 this year.
3. Workload Analysis
o Calculate HR needs based on expected workload.
o Example: If 1 employee handles 10 customers, and there are 1,000 customers, 100
employees are needed.
4. Delphi Technique
o A panel of experts gives forecasts anonymously in several rounds until a common
result is reached.
5. Ratio Analysis
o Use ratios like sales-to-employee or machine-to-worker to predict future demand.

Supply Forecasting Techniques

(Used to estimate availability of human resources)
1. Internal Supply Analysis
o Study current employees, skills, promotions, retirements, transfers, etc.
2. Replacement Charts
o Identify who can replace key positions in case someone leaves.
3. Skill Inventory
o List of current employees’ skills, qualifications, and experiences.
 4. Markov Analysis
o Use mathematical models to predict future workforce movements (like promotions,
exits, transfers).
5. External Supply Forecasting
o Study labor market trends, unemployment rates, availability of fresh talent, etc.
Strategies for balancing demand and supply shortages and surplus
1. Strategies for HR Shortage
(When demand is more than supply – fewer employees than needed)
1. Recruitment
o Hire new employees from outside the organization.
2. Overtime
o Ask current employees to work extra hours.
3. Part-time/Temporary Workers
o Use contract or freelance workers for short-term needs.
4. Training and Development
o Train current employees to take up higher roles or new tasks.
5. Promotion and Transfers
o Promote or transfer employees from within the organization.
6. Retired Employees
o Rehire experienced retired staff on a temporary basis.

2. Strategies for HR Surplus

(When supply is more than demand – more employees than needed)
1. Freeze Hiring
o Stop recruiting new employees.
2. Retirement Schemes
o Offer early retirement or voluntary retirement schemes (VRS).
3. Layoffs or Termination
o Remove excess employees if necessary.
4. Job Sharing
o Two employees share one full-time job to reduce costs.
5. Transfer or Redeployment
o Shift extra employees to other departments or branches.
6. Reduced Working Hours
o Cut down employee hours or shifts to manage excess staff.
Manpower Inventory – Meaning
Manpower Inventory means keeping a detailed record of all employees in an organization, including
their:
*Skills *Qualifications *Experience *Age *Position *Performance *Potential for future roles

Purpose of Manpower Inventory:

1. To know who is available and what they can do.
2. To identify skill gaps or future leaders.
3. To help in promotions, transfers, or succession planning.
4. To plan for training and development.

Example:
If a manager retires next year, manpower inventory helps find who is qualified to replace them.
Succession Planning
Succession Planning is the process of identifying and preparing employees to take over key
positions in the future.
Purpose of Succession Planning:
1. To ensure smooth replacement when important employees leave or retire.
2. To develop future leaders from within the organization.
3. To avoid disruption in work or management.
4. To retain talent by giving career growth opportunities.

Steps in Succession Planning:

1. Identify Key Positions
o Choose important roles that need successors (e.g., managers, team leads).
2. Evaluate Current Employees
o Check who has the skills or potential to grow into those roles.
3. Provide Training & Development
o Train them through mentoring, job rotation, or leadership programs.
4. Review and Update Plan
o Regularly check and improve the succession plan.

Example:
If the HR Head plans to retire in 2 years, the company prepares a capable employee in advance to
take that role.
Difference Between Manpower Inventory and Succession Planning:
Manpower Inventory Succession Planning
A record of all employees’ details like skills, A plan to prepare employees to fill key
experience, qualifications, etc. future positions.
Focuses on the future leadership or critical
Focuses on the present availability of talent.
role needs.
Helps in replacing key employees when
Helps in overall HR planning.
they leave or retire.
In short:
Manpower Inventory shows what talent you have now, while Succession Planning ensures you’re
ready for future leadership needs.

2 b.
Concept of job analysis and uses
Job analysis is the process of gathering, analyzing, and documenting information about a job's
duties, responsibilities, necessary skills, and working conditions. It helps in understanding the
requirements of a job and how it fits within an organization.
Uses of Job Analysis:
1. Recruitment and Selection: It helps identify the qualifications and skills needed for a job,
ensuring that the right candidates are hired.
2. Training and Development: Job analysis shows what skills or knowledge employees need to
develop, helping to design training programs.
3. Performance Appraisal: It provides a basis for evaluating employee performance by
comparing actual performance with job requirements.
4. Compensation and Benefits: Helps in setting fair wages and benefits by determining the
value of the job.
5. Legal Compliance: Ensures that job descriptions are fair and in compliance with labor laws.
In simple terms, job analysis makes sure everyone knows what is expected in a job and helps in
managing employees effectively.
Job description and job specification difference and use with examples
Aspect Job Description Job Specification
Describes the duties, responsibilities, Lists the qualifications, skills, and
Definition
and tasks of a job. experience required for a job.
Focuses on what the job involves (tasks Focuses on the qualities needed from the
Focus
and duties). person doing the job (skills, qualifications).
Job title, job duties, responsibilities, Educational qualifications, experience,
Content
working conditions, etc. skills, and physical/mental abilities.
Purpose To explain the job itself. To describe the ideal candidate for the job.
“A marketing manager will oversee “A marketing manager should have a
Example marketing campaigns, lead the team, degree in marketing, 5 years of experience,
and report to senior management.” and excellent communication skills.”
Helps in recruitment, training, and Helps in recruitment, selection, and setting
Use
performance evaluation. job standards.
Relation to Describes what employees are supposed Describes what employees are expected to
Employees to do. have or be capable of.
Mnemonic for Memorization:
 Job Description = "What the Job is"
 Job Specification = "What the Person Should Be"
Methods of collecting job data
1. Observation: Watching the employee while they work to understand what tasks they do.
2. Interview: Asking employees or supervisors questions about the job.
3. Questionnaire: Giving a form with questions for employees to fill out about their job.
4. Diary/Log: Employees write down their daily tasks and activities.
5. Records and Reports: Studying past job records, manuals, or performance reports.
6. Technical Conference: Discussing the job with experts or supervisors to get details.
Job Design (Meaning):
Job design is the process of planning and organizing the tasks, duties, and responsibilities of a job to
make it more efficient and satisfying for the employee.

1. Job Enrichment (Vertical Expansion):

 Meaning: Adding more meaningful tasks and responsibilities to make the job more
rewarding.
 Goal: To increase job satisfaction and motivation.
 Example: A cashier is also given the task of handling customer complaints and managing
inventory.

2. Job Enlargement (Horizontal Expansion):

 Meaning: Increasing the number of tasks an employee performs, but at the same level of
difficulty.
 Goal: To reduce boredom from doing the same work.
 Example: A factory worker who was only assembling parts is now also packing the finished
product.

Mnemonic to Remember:
 Enrichment = More Responsibility (Upward growth)
 Enlargement = More Tasks (Same level)
Job rotation- concept and uses
Concept:
Job rotation means moving employees from one job to another within the organization at regular
intervals. The goal is to let them learn different tasks and gain more experience.
Example:
An employee working in the sales department may be shifted to customer service or marketing for a
few months.

Uses of Job Rotation:

1. Skill Development – Helps employees learn new skills and gain more knowledge.
2. Reduces Boredom – Keeps work interesting by changing routine tasks.
3. Increases Flexibility – Makes employees capable of doing different jobs.
4. Helps in Training – Prepares employees for promotions and higher roles.
5. Improves Employee Engagement – Employees feel more involved and valued.

2 c.
Recruitment Concept
Recruitment is the process of identifying, attracting, and selecting suitable candidates for job
positions within an organization. It is a key function of human resource management and aims to fill
job vacancies with qualified individuals. The recruitment process involves multiple steps, such as
defining the job requirements, sourcing candidates, screening applications, and conducting
interviews, ultimately leading to the hiring of the most suitable candidate.
Sources of Recruitment
1. Internal Sources
o Promotions: Moving current employees to higher positions based on their
performance and skills.
o Transfers: Moving employees to different departments or locations to fill vacancies.
o Employee Referrals: Employees recommending candidates from their network.
o Internal Job Postings: Advertising job openings within the organization to allow
current employees to apply.
2. External Sources
o Online Job Portals: Websites like LinkedIn, Indeed, and Naukri where organizations
post job openings to attract external candidates.
o Employment Agencies: Agencies that help employers find suitable candidates for
their job openings.
o Campus Recruitment: Hiring fresh graduates from universities or colleges through
placement drives.
o Social Media: Platforms like LinkedIn, Twitter, or Facebook used for job postings and
reaching potential candidates.
o Walk-ins: Candidates visiting the company directly to apply for available positions.
o Job Fairs: Events where companies meet job seekers and conduct interviews for
open positions.
o Advertisements: Job openings advertised in newspapers, magazines, or other media
outlets.
Advantages of Internal Sources
1. Cost-Effective: Saves money on advertising, recruitment agencies, and training new hires.
2. Faster Hiring: Internal candidates are already familiar with the organization, leading to
quicker placements.
3. Morale Boost: Promotes employee motivation by offering career growth opportunities.
4. Better Knowledge of Company Culture: Employees are already aligned with the
organization’s values and culture.
5. Reduced Risk: Known employees reduce the risk of poor performance or cultural misfit.
Disadvantages of Internal Sources
1. Limited Pool of Candidates: Only existing employees can be considered, limiting diversity
and fresh ideas.
2. Potential for Internal Conflict: Promotions or transfers may cause jealousy or dissatisfaction
among employees.
3. Stagnation: Relying solely on internal recruitment may hinder the influx of new perspectives
and innovation.
4. Overlooking External Talent: May miss out on highly skilled candidates from outside the
organization.
5. Limited Flexibility: The best candidate may not always be available internally, causing delays
or suboptimal hires.
Advantages of External Sources
1. Broader Pool of Candidates: Provides access to a wider and more diverse range of talent.
2. New Ideas and Perspectives: Brings fresh skills and innovative approaches to the
organization.
3. Greater Flexibility: Offers a variety of experience levels, skill sets, and backgrounds to
choose from.
4. Increased Competition: Encourages high-quality candidates to apply, raising the overall
standard of candidates.
5. Avoids Internal Conflict: No issues of jealousy or dissatisfaction, as external candidates have
no prior relationships within the organization.
Disadvantages of External Sources
1. Higher Cost: Recruitment expenses can be higher due to job ads, agency fees, and external
sourcing costs.
2. Longer Hiring Process: Takes more time to recruit, screen, and onboard new candidates.
3. Cultural Misfit Risk: External candidates may not fit well with the company culture, causing
adjustment challenges.
4. Low Employee Morale: Internal candidates may feel overlooked or demotivated when
external candidates are hired.
5. Higher Risk: Less is known about external candidates, leading to uncertainty about their
actual performance and suitability.
Recruitment vs selection
Aspect Recruitment Selection
The process of attracting candidates to The process of choosing the most suitable
Definition
apply for jobs. candidate from the applicants.
To create a pool of qualified
Goal To choose the best candidate for the job.
candidates.
Focuses on attracting a large number Focuses on choosing the right candidate for
Focus
of candidates. the position.
Involves advertising, job postings, and Involves interviews, tests, and background
Process
sourcing candidates. checks.
Results in a list of potential
Outcome Results in the final hiring decision.
candidates.
Short-term process aimed at
Timeframe Longer process involving detailed assessment.
generating interest.
Involves HR, recruitment agencies, or
Involvement Involves HR, managers, and interview panels.
job portals.
Steps of selection
1. Job Analysis: Understanding the job requirements and the skills needed for the position.
 2. Sourcing Candidates: Gathering a list of candidates through recruitment channels
(advertisements, agencies, etc.).
3. Screening Applications: Reviewing resumes and applications to filter out unqualified
candidates.
4. Shortlisting Candidates: Selecting the most suitable candidates based on qualifications and
experience.
5. Interviews: Conducting interviews to assess the candidates' skills, experience, and suitability
for the role.
6. Testing: Administering skill tests, psychometric tests, or practical assessments to evaluate
candidates further.
7. Background Checks: Verifying references, work history, educational qualifications, and other
relevant details.
8. Final Interview: A last round of interviews with key decision-makers to make the final
assessment.
9. Offer and Negotiation: Extending the job offer to the selected candidate and negotiating
terms if necessary.
10. Hiring Decision: Making the final decision and offering the position to the chosen candidate.
Types of interviews
1. Structured Interview: A standardized interview with set questions, ensuring consistency in
responses from all candidates.
2. Unstructured Interview: An informal interview where the interviewer asks open-ended
questions, allowing flexibility and a more conversational approach.
3. Panel Interview: An interview conducted by a group of interviewers who assess the
candidate from different perspectives.
4. Group Interview: Multiple candidates are interviewed together, often involving group tasks
or discussions to evaluate teamwork and communication.
5. Behavioral Interview: Focuses on how candidates handled specific situations in the past,
based on the belief that past behavior predicts future performance.
6. Situational Interview: The candidate is asked how they would handle hypothetical situations
related to the job.
7. Phone/Video Interview: Interviews conducted remotely, either by phone or video
conferencing, often used for initial screenings or long-distance candidates.
8. Technical Interview: Focuses on assessing the candidate's technical skills, knowledge, and
problem-solving ability relevant to the job.
Induction
 Definition: Induction is the process of introducing new employees to the organization, its
culture, policies, and work environment.
 Purpose: To help new hires feel comfortable and understand their role within the company.
 Activities: Includes orientation, training, introduction to colleagues, and explaining company
policies.
 Timing: Occurs immediately after hiring and before the employee starts their actual work.
 Focus: Focuses on helping the employee adjust to the company and its culture.
Placement
 Definition: Placement is the process of assigning the selected candidate to a specific job
position within the organization.
 Purpose: To ensure that the employee is placed in a position that matches their skills,
qualifications, and career goals.
 Activities: Involves deciding which department or role the new hire will work in.
 Timing: Occurs after selection, before induction and after job offer acceptance.
 Focus: Focuses on placing the right person in the right role for optimum performance.
This should help in distinguishing the two terms clearly.