UNIT 2 21st August
UNIT 2 21st August
ACQUISITION OF
HUMAN
RESOURCES
By : Prof. Shreyashi Kundu
Syllabus for unit 2
• HumanResource Planning: Quantitative and Qualitative
Dimensions, Steps in the HRP Process
• JobAnalysis and Design: Job Analysis – Concept, job Description
and Job Specification, Steps in the job Analysis process, Purposes
of Job Analysis, Methods of Collecting Information for Job Analysis,
Job Design – Concept, Job Rotation, Job Enlargement and Job
Enrichment
• Recruitment: Concept and sources (Internal and External)
• Selection : Concept and Process, Tests – Types, Interviews – Types.
• Placement : Concept – Meaning and definition , Importance of
Placement
Concept of HRP
• Human Resource Planning (HRP) has been a function of management since the origin of
modern industrial organizations.
• Division of labour, specialization, organizational levels, work simplification, and application of
standards for selecting employees and measuring their performance were the principles
applied early in industrial management. (just classical approach in management thought)
• During the first part of the 20th century, the focus in manpower planning was on the hourly
production of a worker.
• During World War-II and the post war years, the focus intensified on employee productivity.
• (Productivity is a measurement of how much output an employee produces during
a certain period, whereas hours worked is a measurement of how long they
worked)
• Concern was also shown regarding the availability of competent managerial personnel, as
there was a talent shortage combined with significant demand for goods and services. Non-
technology areas and interest in behavioural aspects of work added complexities to the
manpower planning task.
Concept of HRP
• Inthe 60s, manpower planning was viewed as a system linking
the organization with its environment. In this case , companies
forecasted their needs for manpower into the future, forecasted
their internal labour supply for meeting these needs, and
identified the gaps between what would be needed and
what was available.
• Manpower planners planned for recruitment, selection, and
placement of new employees, provided for training and
development, and anticipated necessary promotion and transfers.
Concept of HRP
• During the late 70s, the term ‘human resource’ in place of
‘manpower’ gained acceptance as a way of emphasizing the
positive view of personnel as a basic corporate resource.
• Also during these years, HRP became widely established as a
staff activity in major business and governmental organizations.
• During the 80s, employees’ desire for participation in decisions
that affected their work and careers became stronger. Similarly,
management’s desire for better control over costs and profitability
also becomes stronger. As a result, companies adopted work and
career management practices of the type reflected in innovations
under affirmative action programmes.
Concept of HRP
• In the 90s, concepts in vogue were
> job sharing (Job sharing or work sharing is an employment arrangement where two
people, or sometimes more, are retained on a part-time or reduced-time basis to
perform a job normally fulfilled by one person working full-time)
reduced working hours,
flexibility of time,
significant reshaping of work and work customs,
job enrichment (process that is characterized by adding dimensions to existing jobs
to make them more motivating),
empowerment,
total quality management ((i) Quality can and must be managed. (ii) Everyone has a
customer and is a supplier. (iii) Processes, not people are the problem. (iv) Every
employee is responsible for quality.)
Definition of HRP
• It
is a process in which an organization attempts to estimate
the demand for labour and evaluate the size, nature and
sources of supply to meet that demand.
• It
is preferred to use human resource planning rather than
manpower planning, not just for reasons of gender equality, but
because of the past association of manpower planning with a
rather centralised, mechanistic, number-crunching type of process.
• On the contrary, HRP allows for more recognition of qualitative
issue especially concerning skills and is appropriate in a variety of
organizational settings.
Steps in HR Planning
Current HR supply: it includes assessing comprehensively the strength of the organisation in
terms of the numbers, skills , competencies of the human resources. At this stage, the
consultants may conduct extensive interviews with the managers to understand the
critical HR issues they face and workforce capabilities they consider basic or crucial for
business processes.
Future HR demands: Analysis of the future workforce requirements of the business is the
second step in HR planning. All the non-HR variables like attrition, layoffs, foreseeable
vacancies, retirements, promotions, pre set transfers, are taken into consideration
while determining the future HR demand.
Demand forecast next step is to match current supply with future demand of HR, and create a
demand forecast. It is essential to understand the business strategy and objectives in the long
run so that workforce demand forecast is such that is aligned to the organisational goals.
HR sourcing strategy and implementation: After reviewing the gaps in the HR supply and
demand the HR consulting firm develops plans to meet these gaps as per the demand forecast
created by them. This may include conducting communication programmes with the
employees, relocation, talent acquisition, recruitment and outsourcing, talent
management, training and Coaching, and revision of policies.
Human Resource
Demand
Forecasting
Techniques
Type 1: Managerial judgement:
• Managerial
judgement technique is very common for
demand forecasting. It involves two types of approaches-
• a)
bottom up approach - that is line managers send their
departmental requirements of Human Resources to top
management and
• b)top down approach: sometimes members of top
management sit together and determine the needs on
the advice of the personnel department, it is
subsequently verified with respective departments. This
approach is known as top down approach.
Type 2: Regression analysis in HRP:
• Regression analysis is a form of predictive modelling
which investigates the relationship between a
dependent (target) variable and an independent
variable (predictor).
• Eg:if the relationship between rash driving
(predictor) and number of road accidents were to be
studied (dependent variable) through regression.
• There are three types of regression analysis:
linear regression analysis
• 1)linear regression
analysis : a linear
relationship between
the dependent variable
(Y) and one or more
independent variable
(X) using a best fit
straight line
logistic regression analysis
• 2)logistic regression
analysis: logistic
regression is used to
find the probability of
event- success or
failure. Here the
dependent variable is
binary that is -0/1, true
or false and yes or no.
polynomial regression analysis
• 3) polynomial regression
analysis : if there is no linear
relationship between the
dependent and independent
variable then in that case a
curvilinear (polynomial)
regression is taken into
consideration. Here the power
of the independent variable is
usually taken greater than one
. Polynomial equations look
like
• u = a + b2
Type 3: Work study technique:
• Workstudy technique: also know as the work load analysis under this
method the workload and the continuity of operations are determined.
Here working capacity of each employee is calculated in terms of man
hours.
• In this type of HRP the following steps are followed:
• 1) Select the job or process to be studied
• 2) record everything that happens during observation
• 3)develop the most economic method, taking into account all the
circumstances
• 4) measurement of the standard time based on the above observation
• 5) define and install the new method at agreed standard price
Type 4: The Delphi method
• The Delphi method is a structured and iterative technique used in
Human Resource Planning (HRP) to gather expert opinions and
reach a consensus on future HR needs and challenges. It involves a
series of questionnaires or surveys administered to a panel of
experts who provide their judgments anonymously.
The Delphi method
• Here's how the Delphi method is typically used in HRP:
1.Selection of Experts: A panel of experts is selected based on their
knowledge, experience, and expertise in the specific domain of HRP.
These experts can include HR professionals, managers, academics, or
consultants.
2.Questionnaire Development: The HRP team develops a questionnaire
or survey that seeks input and opinions from the panel of experts. The
questionnaire typically includes open-ended or closed-ended
questions related to future HR needs, challenges, and trends.
3.InitialRound: The first questionnaire is distributed to the experts, who
provide their individual responses anonymously. The responses are
collected and analyzed by the HRP team.
The Delphi method
4. Feedback and Summary: The HRP team prepares a summary
report of the experts' responses without revealing individual
identities. This summary is shared with the experts in the
subsequent round of the Delphi process.
5. Iterative Rounds: Multiple rounds of questionnaires and
feedback are conducted to gather opinions and reach a consensus.
In each subsequent round, the experts receive a summary of the
previous round's responses along with additional questions or
prompts for further input. Experts are encouraged to revise
their responses based on the collective feedback received.
The Delphi method
6. Consensus Building: Through the iterative rounds, the Delphi method
aims to achieve convergence of opinions and identify areas of agreement
among the experts. The HRP team analyzes the responses, identifies common
themes, and refines the questions to stimulate convergence and consensus.
7. Termination Criteria: The Delphi process continues until a predefined
termination criterion is met. This could be a specific level of
consensus among the experts or a predetermined number of rounds. The
termination criterion helps ensure that the process does not continue
indefinitely.
8.Reporting and Recommendations: Once the Delphi process is completed,
the HRP team compiles the final results and prepares a comprehensive report.
This report includes the expert opinions, areas of consensus, and
potential implications for HR planning. The findings can inform decision-
making and guide the development of HR strategies and policies.
Prisoner’s Dilemma
• MrBlue and Miss Red have each been arrested for
some minor crime. The police think that they have
committed a serious crime but they don't have
enough evidence to convict them.
• Sothey take them to two separate rooms so that the
can't talk to each other and play a little game
• To
try to force a confession the police give them
each a choice
• "Admit that you and your
partner did the crime and
we will let you go free"
• "Wewill pardon you for the
minor crime but your
partner will have to spend 3
years in prison "
• If you stay silent and your partner
lets us know then you are going
to prison for 3 years
• They both know that the
police don't have evidence
and if they both don't admit
anything then they will go
to prison for 1 year for the
minor crime
• If they both betray each other
that is admit their crime then
they will both go to prison for 2
years
Prisoner's dilemma
• Stayingsilent would be
cooperating and betraying
(admitting) would be
defecting
• Best option would be to stay silent But from red’s perspective
• 1) If she think that blue will stay silent then probably she should admit so
that she can go free
• 2) going free is better than spending a year in prison
• 3) if she thinks he is going to admit then she should definitely admit since
two years in jail is better than 3
• Theyshould both cooperate but from an individual’s
standpoint they notice thy could always gain by defecting.
• They have no control what the other person is going to do
• So both defect to better their condition.
Markov analysis
• Markov analysis is a method used to forecast the value of a variable whose
predicted value is influenced only by its current state, and not by any prior
activity. In essence, it predicts a random variable based solely upon the current
circumstances surrounding the variable.
• Markov analysis is often used for predicting behaviors and decisions within large
groups of people. It was named after Russian mathematician Andrei Andreyevich
Markov, who pioneered the study of stochastic processes, which are processes
that involve the operation of chance. Markov first applied this method to predict
the movements of gas particles trapped in a container.
Time Time Two
one
Hours Job A Job B Job C Job D Job E Exit
↓
Job A (plant 50 .60 .15 .20 .05
manager)
Job B 75 .10 .80 .05 .05
(foreperson)
Job C 100 .05 .05 .60 .10 .10 .10
(team leader)
725
Time Time Two
one
Hours Job A Job B Job C Job D Job E Exit
↓
Job A 50 .60 .15 .20 .05
(30) (7.5) (10) (2.5)
JOB ANALYSIS
Job
Job
specif
descri
icatio
ption
n
• Theprimary objective of an • How to tie these objectives to job
organisation is to design to ensure company’s
increased profitability?
• A) increase profits • Thereby the job designs can be
• B)reduce absenteeism and impacted in two ways
turnover, • Influence on individual design –
• C)increase the employee • A) Job rotation
performance and lastly • B) Job enlargement
• D) greater job satisfaction • C) Job enrichment
• Influence on group design
• A) Work teams
• B) Work groups
Job design Definition
• Jobdesign involves conscious efforts to organise tasks, duties and
responsibilities into a unit of work to achieve certain objectives. Job
design follows job analysis.
• The logical sequence to job analysis is job design.
• Thus, job design involves three steps:
• 1.The specification of individual tasks,
• 2.The specification of the method(s) of performing each task, and
• 3.Thecombination of tasks into specific jobs to be assigned to
individuals.
Influence on individual Job
design
1) Job Rotation Job rotation refers to moving employees from job to job to add
variety and reduce boredom by allowing them to perform a variety of tasks.
• Whenan activity is no longer challenging, the employee would be moved to
another job at the same level that has similar skill requirements. It reduces
boredom and disinterest through diversifying the employee’s activities.
• Jobrotation also has its drawbacks. Training costs are increased, work is disrupted
as rotated employees take time to adjust to a new set-up, and it can demotivate
intelligent and ambitious trainees.
2) Job Enlargement refers to the expansion of the number of different tasks
performed by an employee in a single job.
For example, an auto mechanic undergoes job enlargement when he switches from
only changing oil to changing oil, greasing and changing transmission fluid. Job
enlargement attempts to add somewhat similar tasks to the existing job so that it
has more variety and be more interesting.
• 3)
Job enrichment involves adding more motivators to a job to
make it more rewarding. Job becomes enriched when it gives job-
holder more decision-making, planning and controlling powers.
• Eg:
Sodexo coupons, recognition of employee of the month (bank
branches), recommending someone’s name on LinkedIn.
• Job
Redesign is the approach to revisiting and restructuring jobs to
meet the specific needs of a particular segment of the workforce.
• It
includes the process of segmenting the workforce and identifying the
ideal profile of worker for each job allows the employer to tailor the job
specifically to attract and retain the specific employees.
• E.g.
:Government allowing lateral entry by industry heads in
government positions
• Job redesign can take many forms. The following are some of the
more common approaches:
• job enlargement – getting a job holder to do more (typically of a
similar level of work)
• job enhancement – getting a job holder to do more value added
work (typically by transferring work and responsibilities from the
next higher level)
• job sharing – splitting the job such that the work is completed by
2 or more people
Recruitment policy
• The recruitment policy of an organisation spells out the objectives
of recruitment and provides a framework for implementation
of program in the form of procedures.
• It
may involve a commitment to broad principles filling vacancies
with the best qualified individuals.
• The recruitment policy may embrace several issues, such as the
extent of promotion from within, attitudes, policies in terms of
recruiting old, handicapped and minor individuals minority group
members part-time employees and relatives of present employees,
etc.
• Explicitly, an organisational system is a function of the size of an enterprise. In
smaller enterprises there may be merely informal recruiting procedures and the line
official may be responsible for handling the function along with his usual
responsibilities.
• In large organisations, there are usually staff unit attached with personnel or
industrial relations department called employment or recruitment office. The
specialisation of recruitment enables staff personnel to gain higher skills in
recruitment techniques and their evaluation.
• However, Recruitment remains the line responsibility as far as personnel requisition
forms are originated by line personal, who also have the final word in the
acceptance or rejection of particular applicant.
• Note: Line management refers to the management of employees who are directly
involved in the production or delivery of products, goods and/or services. As the
interface between an organisation and its front-line workforce, line management
represents the lowest level of management within an organisational hierarchy
• Reservation is a system of Affirmative Actions in India that provides
historically disadvantaged groups representation in education, employment,
government schemes, scholarships and politics.
• Affirmative action, also known as positive action or positive
discrimination involves sets of policies and practices within a government
or organization seeking to include particular groups that were historically
discriminated against based on their ethnicity in areas in which such groups
are underrepresented, mistreated or suffer from lack of public support —
such as education and employment
• Upon entering the Costa Coffee outlet in Green Park, South Delhi,
everything seems as normal as it is at any other coffee house, hence it
takes a while to notice that the outlet is operated by hearing and speech
impaired employees.
• Not only Costa, but other cafes, restaurants and retail outlets like Lifestyle,
Kentucky Fried Chicken (KFC), Hyper City, Max, Dominos and Reliance retail,
among others, are increasingly employing these people as cashiers,
attendants, executives, store administrators and merchandisers, who
welcome people with their infectious smiles.
• Cafe Coffee Day too, has tied up with various Non-Governmental
Organisations (NGOs) to work out avenues to employ more number of
differently-abled people. Hundreds of speech and hearing impaired people
are employed at their cafes and are popularly called the ‘silent brew
masters’.
Sources of recruitment
• In
general, the sources of employment can be classified into two
types—internal and external.
• Filling
a job opening from within the organization has the following
advantages (internal recruitment) :
Stimulating preparation for possible transfer or promotion
Increasing the general level of morale, and
Having more information about candidates through past performance
appraisals.
Inevitably, the companies must go to external sources for lower-entry
jobs, for expansion and for positions whose specifications cannot be
met by the existing manpower.
Further classification of sources of
recruitment
• Advertisement : It is a very important and popular source of generating manpower.
Companies advertise in widely circulated newspapers. Information about the company, the
job and job specifications (age, education, past experience, likely emoluments, etc.) are
included in the advertisement to attract suitable candidates to apply for the job.
• The advertisement is the most fragile contact between prospective candidates and the
potential employer.
• Also, as each advertisement competes with many others for attention, we can expect a
few seconds scan from the reader.
• Marketing people have a simple but effective guide—AIDA—for creating good
advertisements.
• A : Attract the reader’s Attention
• I : Generate Interest in the vacancy
• D : Create Desire for the job
• A : Stimulate the reader to take Action
Employment exchanges
• Employment exchanges established in various cities as per public
policy, offer yet another important source of recruitment. They
maintain separate databases for non-graduates, graduates and
postgraduates. In our country, it is obligatory for the government
departments and PSUs to notify the vacancies to the local
Employment Exchange who directs the candidates meeting the
basic qualification requirements. Eg : The Institute of Banking
Personnel Selection is a government owned bank personnel
recruitment agency under the jurisdiction of Ministry of Finance,
GOI.
• IBPS PO 20-21 candidates: 6.78 lakhs (1: 101:3)
• IBPS Clerk 20-21 candidates: 7.41 lakhs (1: 101:3)
Placement Agencies
• Some agencies and associations are established to supply
candidates in terms of the requirements. The companies intimate
their requirements to them who forward a panel of suitable
candidates for recruitment. This is a good source for recruitment
especially for professional and managerial positions.
• Example: Naukri.com, Shine Recruiter, Monster.com
Educational Institutions
• Some companies make special efforts to establish and maintain
constructive relationships with institutions so as to obtain suitably
qualified manpower.
• Such companies conduct campus interviews in different
educational institutions for lower/middle level managerial
positions.
• Inorder to provide incentives, some companies select the students
from the final year.
Recommendation of present
employees
• Some companies ask the present employees to recommend new
recruits. This method provides preliminary screening as the
present employee knows both the company and his acquaintances
and presumably would attempt to please both.
Labour unions
• As
a part of welfare measure, many organizations provide
employment to the next-of-kin of employees died while in service.
Leasing
• Toadjust to short-term fluctuations in personnel needs, the
possibility of leasing personnel should be considered. In leasing,
the company not only gets well-trained personnel but also avoids
any obligations in pension, insurance and other fringe benefits.
Processes involved in recruitment
Processes involved in selection
• Selection usually includes several stages and various activities,
which include:
• Preliminary Interview
• Blank Application
• Selection test : Conducting an examination (aptitude test,
intelligence test, performance test, personality test, etc.)
• Selection Interviews
• Checking references
• Medical tests
• Definition:Recruitment is the process of searching for
prospective employees and stimulating them to apply for the job in
the organization
• Definition:Selection targets the identification of the most
appropriate prospective employee from a group of applicants.
Difference between recruitment and selection:
Scope Recruitment selection
• After
a candidate has cleared all the hurdles in the
selection procedure, he is formally appointed by issuing
him an appointment letter or by making a service
agreement with him.
Placement
• Placementis the determination of the job to which an
accepted candidate is to be assigned and his
assignment to that job.
• In
the simple words placement is concerned with the
sending of newly selected personnel to some
department for work. It is also concerned with the
assignment of authority and responsibility to the new
comer in the organisation.
Relation between Selection,
Recruitment and Job Analysis
Importance of Placement
• 1. Improves the morale of the employees
• 2. Reduces employee turnover
• 3. Decreases accident rates
• 4. Enhances labour productivity
• 5. Clarifies expectations.
Top 4 Principles of Placement
• (i)
Job requirement – Man should be placed on the job according to
the requirement of the job rather than qualification and
requirement of the man.
• (ii)
Qualification – The job offered should match with the
qualification possessed by an employee.
• (iii)
Information – All the information relating to the job should be
given to the employees along with the prevailing working
conditions. They should also be made known that they have to pay
penalty for wrong doing.
• (iv)
Loyalty and Co-operation – Every effort should be made to
develop a sense of loyalty and co-operation in employees to make
them understand their responsibilities
5 Major Problems Faced by Personnel
Manager in Placement of New Employees
• 1. Employees Expectations
• 2. Job Expectations
• 3. Technological Change
• 4. Changes in Organizational Structure
• 5. Social and Psychological Factors
Induction in HRM- Need for
Induction
• Ascompanies work hard to recruit the right candidate for their
organization, it is equally important for them to carry out a well-
planned and organized induction session for the new recruits.
• The induction programme is an ideal occasion for the managers to
influence the candidates positively.
• Aninduction process is also conducted for the benefit of the
experienced employees, who have been either transferred or
promoted.
• Theprime aim of an induction session is to guarantee a successful
integration of the employees and the management.
•A well-planned induction programme increases staff retention.
Definition
• Induction
is the process for welcoming newly recruited employees and
supporting them to adjust to their new roles and working
environments.
Objectives of induction
• To help the new employee to develop a close and cordial
relation with the existing employees.
• To give the new employee necessary information such as –
location of the different building, company rules, leave
rules, rest periods etc.
• To help the new employee overcome his natural shyness
and nervousness in meeting the new people in the
organization.
• To develop a sense of belongingness and loyalty among
new employees.
• To help the employees know the different facilities and
opportunities available in the organization.
Advantages of Induction
• The induction programme is an ideal occasion for the
managers to influence the candidates positively, in
order to extract the best possible outcome from them.
• Research has also shown that a well-planned induction
programme increases staff retention.
• The induction process entails orientation which
helps to develop their aptitudes and talents.
• It clearly required to state what is expected of new
employees- the standards and style of the work
they are to perform.
Difference between induction &
orientation
Scope Induction orientation