Module II

Human Resource Planning, Recruitment, and Selection: - Human resource planning: the
concept and process; Job analysis: The concept, uses, process of doing job analysis, Job
description, Job specification; Recruitment: Internal and outside sources/methods; Selection:
Types of tests, basic types of interviews, how to design and conduct an effective interview.

Human Resource Planning

Definition of HRP

According to Geisler E.B, “HR planning is the process including forecasting, developing and
controlling by which a firm ensures that it has the right number of people and the right kind of
people at the right places at the right time doing work for which they are economically most
useful”

Nature of Human resource planning

It is the process of analyzing and identifying the availability and the need for human resources so
that the organization can meet its objectives. The focus of HR planning is to ensure that the
organization has the right number of human resources, with the right capabilities, at the right times,
and in the right places. In HR planning, an organization must consider the availability and allocation

of people to jobs over long periods of time, not just for the next month or the next year.

HRP is a sub system in the total organizational planning. Actions may include shifting employees to
other jobs in the organization, laying off employees or otherwise cutting back the number of employees,
developing present employees, and/or increasing the number of employees in certain areas.
Factors to consider include the current employees ‘knowledge, skills, and abilities and the expected
vacancies resulting from retirements, promotions, transfers, and discharges. To do this, HR
planning requires efforts by HR professionals working with executives and managers.

Objectives of Human Resource Planning

1. To ensure optimum utilization of human resources currently available in the organization.

2. To assess or forecast the future skill requirement of the Organization.

3. To provide control measures to ensure that necessary resources are available as and when
required.

4. A series of specified reasons are there that attaches importance to manpower

planning and forecasting exercises. They are elaborated below:

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 ➢ To link manpower planning with the organizational planning

➢ To determine recruitmentlevels.

➢ To anticipate redundancies.

➢ To determine optimum training levels.

➢ To provide a basis for management development programs.

➢ To cost the manpower.

➢ To assist productivity bargaining.

➢ To assess future accommodation requirement.

➢ To study the cost of overheads and value of service functions.

➢ To decide whether certain activity needs to be subcontracted, etc.

HRP is the subsystem in the total organizational planning. Organizational planning includes
managerial activities that set the company‘s objective for the future and determines the appropriate
means for achieving those objectives. The importance of HR is elaborated on the basis of the key
roles that it is playing in the organization.

Future Personnel Needs: Human resource planning is significant because it helps to determine the
future personnel needs of the organization. If an organization is facing the problem of either surplus
or deficiency in staff strength, then it is the result of the absence of effective HR planning. All public
sector enterprises find themselves overstaffed now as they never had any planning for personnel
requirement and went of recruitment spree till late 1980‘s. The problem of excess staff has become
such a prominent problem that many private sector units are resorting to VRS. The excess of labor
problem would have been there if the organization had good HRP system. Effective HRP system will
also enable the organization to have good succession planning.

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.
Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
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 form of skill
development is required to help the organization in dealing with this problem of skilled manpower
shortage

International Strategies: An international expansion strategy of an organization is facilitated to a

great extent by HR planning. The HR department‘s ability to fill key jobs with foreign nationals and
reassignment of employees from within or across national borders is a major challenge that is being
faced by international business. With the growing trend towards global operation, the need for HRP
will as well will be the need to integrate HRP more closely with the organization’s strategic plans.
Without effective HRP and subsequent attention to employee recruitment, selection, placement,
development, and career planning, the growing competition for foreign executives may lead to
expensive and strategically descriptive turnover among key decision makers.

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.

Increasing Investments in Human Resources: Organizations are making increasing investments in

human resource development compelling the increased need for HRP. Organizations are realizing that
human assets can increase in value more than the physical assets. An employee who gradually
develops his/ her skills and abilities become a valuable asset for the organization. Organizations can
make investments in its personnel either through direct training or job assignment and the rupee
value of such a trained, flexible, motivated productive workforce is difficult to determine. Top
officials have started acknowledging that quality of work force is responsible for both short term
and long-term performance of the organization.

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 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.

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
Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
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.

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.

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
and practices and to examine the way of utilizing the human resources for better utilization.

Human Resource Planning-Process

The HRP Process

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
Environmental Scanning
It refers to the systematic monitoring of the external forces influencing the organization. The
following forces are essential for pertinent HRP.

➢ Economic factors, including general and regional conditions.

➢ Technological changes
➢ Demographic changes including age, composition and literacy,
➢ Political and legislative issues, including laws and administrative rulings
➢ Social concerns, including child care, educational facilities and priorities.

By scanning the environment for changes that will affect an organization, managers can anticipate
their impact and make adjustments early.

Organizational Objectives and Policies

➢ HR plan is usually derived from the organizational objectives. Specific requirements in

terms of number and characteristics of employees should be derived from
organizational objectives.

HR Demand Forecast

➢ Demand forecasting is the process of estimating the future quantity and quality of
people required to meet the future needs of the organization.

➢ For example: in the case of a manufacturing company, the sales budget will form the
basis for production plan giving the number and type of products to be produced in each
period. This will form the basis upon which the organization will decide the number of
hours to be worked by each skilled category of workers. Once the number hours
required is available organization can determine the quality and quantity of employees
required for the task.

➢ Techniques like managerial judgment, ratio- trend analysis, regression analysis, work
study techniques, Time Series Analysis, Delphi techniques, NGT are some of the major
methods used by the organization for demand forecasting.

Managerial Judgment
➢ Top-down
➢ Bottom-up

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 ➢ Participative
Ratio-trend Analysis
➢ Based on past ratios forecasting future ratios
Regression Analysis
➢ Proportionate change in two or more variables
Ex: Sales volume and Employee size
Work-Study Techniques
Consists of work load analysis (length of operation) and workforce analysis (amount of
labor required)
Workforce analysis is done on the basis of Absenteeism and Turnover
Absenteeism=manpower lost / manpower scheduled
Time series analysis
1. Trend
2. Cyclical effects
3. Seasonality
4. Random fluctuations
Smoothing Techniques
1. Moving Average
2. Exponential smoothing
HR Supply Forecast

➢ Supply forecast measures the number of people likely to be available from within and
outside an organization, after making allowance for absenteeism, internal movements
and promotions, wastage and changes in hours, and other conditions of work.

➢ Supply analysis covers the existing human resources, internal sources of supply and
external sources of supply.

Methods of Supply forecast:

1. Wastage Analysis
➢ Labor turnover index
Measures the rate at which employees leave an organization.
➢ Stability Index
Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 Measures how long employees stay with the company, indicating retention
strength.
2. Simulation- Uses computer models to simulate different workforce scenarios
under varying conditions.
HR Programming

➢ Once an organization‘s personnel demand and supply are forecasted the demand and
supply need to be balanced in such a way that the vacancies can be filled by the right
employees at the right time.

HR Plan Implementation

➢ HR implementation requires converting an HR plan into action. A series of action are

initiated as a part of HR plan implementation.

Control and Evaluation

➢ During this final phase organization will be evaluating on the number of people
employed against the established (both those who are in the post and those who are in
pipe line) and on the number recruited against the recruitment targets.

➢ Evaluation is also done with respect to employment cost against the budget and wastage
happened so that corrective action can be taken in future.

Job analysis

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
Job Analysis Methods
Though there are several methods of collecting job analysis information yet choosing the one
or a combination of more than one method depends upon the needs and requirements of
organization and the objectives of the job analysis process. Typically, all the methods focus on
collecting the basic job-related information but when used in combination may bring out the
hidden or overlooked information and prove to be great tools for creating a perfect job-
candidate fit.

Selecting an appropriate job analysis method depends on the structure of the organization,
hierarchical levels, nature of job and responsibilities and duties involved in it. So, before
executing any method, all advantages and disadvantages should be analysed because the data
collected through this process serves a great deal and helps organizations cope with current
market trends, organizational changes, high attrition rate and many other day-to-day problems.

Let’s discuss few of job analysis methods that are commonly used by the organizations to
investigate the demands of a specific job.

Most Common Methods of Job Analysis

▪ Observation Method: A job analyst observes an employee and records all his
performed and non-performed task, fulfilled and un-fulfilled responsibilities and duties,
methods, ways and skills used by him or her to perform various duties and his or her
mental or emotional ability to handle challenges and risks. However, it seems one of
the easiest methods to analyse a specific job but truth is that it is the most difficult one.
Why? Let’s Discover.

It is due to the fact that every person has his own way of observing things. Different
people think different and interpret the findings in different ways. Therefore, the
Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 process may involve personal biasness or likes and dislikes and may not produce
genuine results. This error can be avoided by proper training of job analyst or whoever
will be conducting the job analysis process.

This particular method includes three techniques: direct observation, Work Methods
Analysis and Critical Incident Technique. The first method includes direct observation
and recording of behaviour of an employee in different situations. The second involves
the study of time and motion and is specially used for assembly-line or factory workers.
The third one is about identifying the work behaviours that result in performance.

▪ Interview Method: In this method, an employee is interviewed so that he or she comes

up with their own working styles, problems faced by them, use of particular skills and
techniques while performing their job and insecurities and fears about their careers.

This method helps interviewer know what exactly an employee thinks about his or her
own job and responsibilities involved in it. It involves analysis of job by employee
himself. In order to generate honest and true feedback or collect genuine data, questions
asked during the interview should be carefully decided. And to avoid errors, it is always
good to interview more than one individual to get a pool of responses. Then it can be
generalized and used for the whole group.

▪ Questionnaire Method: Another commonly used job analysis method is getting the
questionnaires filled from employees, their superiors and managers. However, this
method also suffers from personal biasness. A great care should be takes while framing
questions for different grades of employees. In order to get the true job-related info,
management should effectively communicate it to the staff that data collected will be
used for their own good. It is very important to ensure them that it won’t be used against
them in anyway. If it is not done properly, it will be a sheer wastage of time, money and
human resources.

There are several other specialized methods including task inventory, job element method,
competency profiling, technical conference, threshold traits analysis system, critical incident
method and a combination of these methods. While choosing a method, HR managers need to
consider time, cost and human efforts included in conducting the process.

Job element method

➢ It is the work-oriented job analysis approach. It was originally developed by Earnest

Primoff. The JEM of job analysis focuses on the human attributes necessary for
superior performance on the job. It is used to match what applicants can do against what
the work calls for.

Task Inventory

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 ➢ A task inventory is a job analysis approach. Human resource managers create an initial
itemized list of all of the tasks, or specific activities, that make up the performance of a
specific job at a particular organization.

Technical Conference

➢ The technical conference method of job analysis involves qualified people

collaborating to provide information about a specific job. Select subject matter experts
for the technical conference method of job analysis

Competency Profiling

➢ It is typically a method for identifying specified skills, knowledge, attitudes and

behaviour necessary to fulfilling a task, activity or career. In most commercial
organisations its ultimate purpose is to provide value to the external customer.

TTA - Threshold Traits Analysis

➢ with regard to personnel selection, a technique of locating and naming the traits needed
for acceptable performance within a chose position. Subject-matter experts rank the
imperativeness, uniqueness, pertinence, level, and logicality of 33 traits for a specific
position.

Critical Incident Technique

It is about identifying the work behaviours that result in performance.

➢ Quality of work

➢ Quantity of work

Note:

Job analysis has applications in almost all human resource activities of an organization.

It Indeed acts as the basis for decisions involving human resource planning, recruitment and
selection, training and development, compensation fixation, job evaluation, performance
evaluation, career management, and health and safety of employees.

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
Recruitment

According to Edwin B. Flippo, “Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the organization”

Recruitment to Human Resource Acquisition Process

Need for Recruitment

➢ Vacancies created due to expansion, diversification, and growth of business.

➢ Vacancies created due to transfer, promotion, retirement, termination, permanent

disability or death.

➢ An increase in the competitive advantage of certain concerns, enabling them to get more
of the available business than formerly.

➢ An increase in business arising from an upswing during the recovery period of a

business cycle.

➢ The normal population growth, which requires increased goods and services to meet
the needs of the people.

➢ A rising standard of living, which requires more of the same goods and services as well
as the creation of new wants to be satisfied.

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 Sources of Recruitment – Where candidates come from

➢ These are the places or origins from where potential employees are found.

S ill Level Recruiting Source Percentage of Use

nskilled and Semiskilled Informal contacts 8

Walk-ins
Public Employment Agencies

Want Ads

Skilled Informal Contacts 88

Walk-ins
Public Employment Agencies

Want Ads

Professional Employees Internal Search 9

Informal Contacts 9
Walk-ins 1
Public Employment Agencies
Want Ads 8
Private Employment Agencies

Managerial Level Internal Search 100

Informal Contacts 1

Walk-ins 31
Private Employment Agencies 0

Want Ads 1

Public Employment Agencies 1

Internal sources

i. Promotions

ii. Transfers

iii. Employee referrals

External sources (outside the organization):

i. Colleges and universities

ii. Job portals

iii. Employment agencies

iv. Walk-in applicants

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
Methods of Recruitment – How candidates are attracted

➢ These are the techniques or ways used to inform and attract potential candidates from
those sources.

i. Job advertisements (in newspapers, websites)

ii. Campus recruitment drives

iii. Social media recruitment

iv. Online job postings

v. Recruitment agencies

vi. Job fairs

Selection

➢ It is the process of choosing the most suitable persons out of all the applicants. The
purpose of selection is to pick up the right person for every job.

➢ According to Dale Yoder, Selection is the process in which candidates for employment
are divided into two classes-those who are to be offered employment and those who are
not.

Process of Selection

Primary screening & interview

Application Blank

Selection tests

Interviews

Background Investigations

Physical examination

Approval by appropriate authority

Selection Tests

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Sirajul Huda Institute of Management Studies
 ➢ Many organisations hold different kinds of selection tests to know more about the
candidates or to reject the candidates who cannot be called for interview etc.

➢ Selection tests normally supplement the information provided in the application forms.

Types of tests

i. Aptitude Tests: The capacity or talent, ability to learn a given job if given adequate
training. These are more useful for clerical and trade positions.

ii. Personality Tests: At times, personality affects job performance. These determine
personality traits of the candidate such as cooperativeness, emotional balance etc. These
seek to assess an individual‘s motivation, adjustment to the stresses of everyday life,
capacity for interpersonal relations and self-image.

iii. Interest Tests: These determine the applicant ‘s interests. The applicant is asked
whether he likes, dislikes, or is indifferent to many examples of school subjects,
occupations, amusements, peculiarities of people, and particular activities.

iv. Performance Tests: In this test the applicant is asked to demonstrate his ability to do
the job. For example, prospective typists are asked to type several pages with speed and
accuracy.

v. Intelligence Tests: This aim at testing the mental capacity of a person with respect to
reasoning, word fluency, numbers, memory, comprehension, picture arrangement, etc.
It measures the ability to grasp, understand and to make judgement.

vi. Knowledge Tests: These are devised to measure the depth of the knowledge and
proficiency in certain skills already achieved by the applicants such as engineering,
accounting etc.

vii. Achievement Tests: Whereas aptitude is a capacity to learn in the future, achievement
is concerned with what one has accomplished. When applicants claim to know
something, an achievement test is given to measure how well they know it.

viii. Projective Tests: In these tests the applicant projects his personality into free responses
about pictures shown to him which are ambiguous.

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 Projective test is a personality test which is conducted in psychology and is done in order
to understand the stimuli of the person. The responses received from this test are properly
analyzed by the experts

Projective Tests

Basic types of Interviews

1. Degree of Structure

. Purpose of Interview

3. Content of Interview

Degree of Structure

i. nstructured or non-directive

ii. Structured or directive

Purpose of Interview

i. Selection interview

➢ to predict future job performance, on the basis of applicant‘s responses to the oral
questions asked to him.

ii. Stress interview

➢ is a special type of selection interview in which the applicant is made uncomfortable by
series of awkward and rude questions. The aim of stress interview is to identify
applicant‘s low or high stress tolerance.

Content of Interview
Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 i. In job-related interview, interviewer attempts to assess the applicant‘s past
behaviours for job related information.

ii. In a behaviour interview a situation in described and candidates are asked how they
behaved in the past in such a situation.

iii. Situational interviews candidates are asked to describe how they would react to
situation today or tomorrow.

Designing and Conducting Effective Interviews

Importance of Effective Interviews
Effective interviews help organizations select the best candidates by accurately assessing skills,
experience, competencies, and cultural fit. According to Armstrong, interviews are a critical
component in the recruitment and selection process.

Designing the Interview

• Define Job Requirements: Clearly outline job roles, responsibilities, and necessary
competencies.
• Prepare Interview Questions:
o Structured Questions: Prepared in advance to ensure consistency.
o Behavioural Questions: Assess past behaviour as a predictor of future
performance.
o Situational Questions: Evaluate candidate responses to hypothetical job-
related situations.
• Develop Rating Scales: Create a standardized scoring system to objectively evaluate
responses.
Types of Interviews
• Structured Interviews: Predetermined questions asked consistently across
candidates.
• Unstructured Interviews: Informal, conversational style allowing flexibility.
• Panel Interviews: Multiple interviewers assess a candidate simultaneously.
• Stress Interviews: Designed to evaluate how candidates handle pressure and stress.
Conducting the Interview
• Create a Comfortable Environment: Establish rapport, explain the interview
process, and put the candidate at ease.

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies
 • Effective Communication: Listen actively, maintain eye contact, and encourage
open dialogue.
• Note-Ta ing: Take clear, concise notes for accurate post-interview evaluations.
• Managing Biases: Be aware of personal biases and avoid irrelevant or discriminatory
questions.
Evaluating Candidates
• Rating Responses: se established criteria and rating scales to objectively evaluate
candidate answers.
• Comparative Analysis: Compare candidates' interview performances systematically
to make informed decisions.
• Bac ground Verification: Validate information provided by candidates through
reference checks and background investigations.
Legal and Ethical Considerations
• Equal Opportunity Compliance: Adhere to laws preventing discrimination based on
race, gender, age, religion, disability, etc.
• Privacy and Confidentiality: Maintain confidentiality of candidate information
throughout the interview process.
Follow-Up Procedures
• Feedbac : Provide timely feedback to unsuccessful candidates to maintain positive
employer branding.
• Documentation: Keep accurate records of interviews and evaluations for future
reference and compliance purposes.
Effective interview practices significantly enhance recruitment success, ensuring the selection
of competent individuals aligned with organizational goals and culture.

Compiled by Prof.Shiyas K J
Sirajul Huda Institute of Management Studies