HUMAN RESOURCE MANAGEMENT

Session details • Session 1 - Introduction to Human Resource

Management

• Session 2 - HR Planning, Recruitment, Selection, Placement and Induction

• Session 3 - Personnel Development Programme

• Session 4 - Job Compensation

• Session 5 - Promotions, Demotions, Transfers, Separation, Absenteeism and Turnover

• Session 6 - Quality of Work Life

• Session 7 - Counselling for Effective HR Development

• Session 8 - Human Relations

22 March 2012

Pranothi Nelson

Session 2 HR Planning, Recruitment, Selection,

Placement and Induction

Human

Resources

Planning

Meaning and definition of Human Resource Planning • In simple terms : Deciding the number and type of the human

resources required for each job, unit and the total company for a particular future date in order to carry – out organizational activities

• A process by which an organization should move from its current manpower position to its desired manpower position. (E. W. Vetter)

Meaning and definition of Human Resource Planning • An integrated approach to performing the planning aspects of

the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members. (Leon C. Meggison)

• Foreseeing the human resources requirements of an organisation and the future supply of human resources and making necessary adjustments between these two and organizational plans and foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of HRM.

Objectives of HRP • To recruit and retain human resources of required quantity

and quality

• To foresee the employee turnover and make arrangements for minimizing turnover and filling up of consequent vacancies

• To meet the needs of expansion, diversification etc

• To foresee the impact of technology on work, existing employees and future human resource requirements

• To improve the standards, skill, knowledge, ability, discipline etc.

• To assess the surplus or shortage of human resources and take measures accordingly

Objectives of HRP • To maintain congenial industrial relations by maintaining

optimum level and structure of human resources

• To minimize imbalances caused due to non-availability of human resources of the right kind, right number in right time and right place

• To make the best use of its human resources

• To estimate the cost of human resources

Factors affecting HRP

External Factors

• Government policies

• Level of economic development including future supply of HRs

• Business environment

• Information technology

• Level of technology

• Natural factors

• International factors

Internal Factors

• Strategies of the company

• HR policy of the company

• Job analysis

• Time horizons

• Company’s production operation policy

• Trade unions

Steps in HRP

• Scrutiny of the present personnel strength

• Anticipation of manpower needs

• Investigation of turnover of personnel

• Planning job requirements and job description

– The anticipation of the needs of manpower generally involves taking an inventory of the existing personnel who are “in stock” today. And what can be expected to be “in stock” tomorrow.

Process of HRP • Analyzing the corporate and unit level strategies

• Demand forecasting

• Supply forecasting

• Estimating the net human resources requirements

• In case of future surplus, plan for redeployment, retrenchment and lay – off

• In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other companies

• Plan for recruitment, development and internal mobility if future supply is more than or equal to net human resources requirements

• Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements

Process of HRP • Analyzing the corporate and unit level strategies

– HRP should start with analyzing corporate level and unit level strategies

– Strategies include expansion, diversification, mergers, acquisitions, reduction in operations, low cost and differentiation

– Strategic implementation requires production, technological, marketing and HR implementation

– HR implementation essentially requires possessing the required number and kind of employees. This in turn requires HR plan

Process of HRP • Demand Forecasting

Forecasting the quality of human resources in addition to quantity

• Managerial Judgment : based on past experience

• Statistical techniques : Ratio trend analysis and econometric models Present level of production 2000 units Present no. of foremen 4 Ratio 500 Estimated production 5000 Foremen required 5000/500 = 10 • Manhrs req. to produce each unit is calculated Planned operations during 2005 1,60,000 units Std. manhrs to perform each unit 0.25 Planned manhrs needed per yr in 2005 40,000 Work ability per emp in manhrs in 2005 2,000 No. of employees req in 2005 20

Work study techniques : Total prodn, activities is units are estimated.

Process of HRP • Supply Forecasting

• First step is to obtain the data and information about the present HR inventory

• Existing inventory

- Head count : Reg total, dept wise, desig-wise

- Job family inventory : Number of each job family, like clerks, cashiers, typists, prodn engineer

- Age inventory : Age-wise category

• Existing inventory at a future date = Present inventory as on today + potential additions – potential losses

Process of HRP • Estimating the net human resources requirements

– Difference between overall human requirements and future supply of human resources

• In case of future surplus, plan for redeployment, retrenchment and lay – off

– Redeployment programmes

• Outplacement

• Employment in sister organizations

• Employment in other companies

Process of HRP • In case of future surplus, plan for redeployment, retrenchment

and lay – off

– Redundancy / Retrenchment programmes

• Reduced work hours

• Work sharing

• Layoffs

• Leave of absence without pay

• Voluntary retirement

• Attrition

• Compulsory retirement

• Creation of ad-hoc projects

Process of HRP • Forecast the future supply of human resources from all sources

• If deficit is estimated in any department and in the entire organization, management has to forecast the future supply of HR from various sources like

– internal sources

– comparable organizations

– educational and training institutes

– employment exchanges etc.

• Plan for recruitment, development and internal mobility if future supply is more than or equal to net human resources requirements

• Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements

Recent trends in HRP

• Outsourcing : reduce the cost of HR, avoid difficulties in HRM, reduce the negative implications of overstaffing

• Contingency clause in HRP : For fast delivery, Time bound projects, clause to ensure that no delay occurs due to human factor Ex : SSIL Employee turnover 80%. Hence 90% of total HR are recruited to meet the contingency

What is job analysis?

• A systematic approach to collect information about a job such as tasks, responsibilities and the skills required to perform those tasks

• An important part of Human Resources (HR) planning

How can it be used in your organization?

• Job analysis assists HR in determining:

– Necessity of the job

– Equipment needed

– Skills required

– Supervision

– Working conditions

– Management/employee interaction

How can it be used in your organization?

• Recruiting

– Keyword searches on resumes that match job requirements

• Selection

• Appraisal

• Salaries and Incentives

• Training and Development

How can it be used in your organization?

• Job analysis can also:

– Help the company remain profitable and competitive

– Help the company keep up with technology

– Prevent employees from being overworked

– Help the company stay in compliance with

government regulations

• Work activities

• Working conditions

– Supervisors

– Location

– Schedule

• Machines and equipment – Job performance

• Operations

• Standards

• Time

• Experience, training, and skills

• Supervision and promotion patterns

• Products/services completed

What is analyzed?

Who is involved in the job analysis?

• Management

• Supervisors

• Job analysts

• Job incumbent

• Unions

• Consultants

Methods of Job Analysis

• Observation

• Interview – Individual

– Group

• Questionnaires – PAQ

• Diary

• Technical Conference

• Critical Incident Technique

Methods of Job Analysis • Observation Method

– Analyst observes incumbent

• Directly

• Videotape

– Useful when job is fairly routine

– Workers may not perform to expectations

• Interview Method

– Individual

• Several workers are interviewed individually

• The answers are consolidated into a single job analysis

– Group

• Employees are interviewed simultaneously

• Group conflict may cause this method to be ineffective

Methods of Job Analysis • Questionnaires

– Employees answer questions about the job’s tasks and responsibilities

– A scale that rates the importance of each task is used

– Position Analysis Questionnaire (PAQ)

• A structured, behavioral questionnaire

• 194 items in 6 categories

– Information input

– Mental processes

– Work output

– Relationships

– Job context

– Other characteristics

Methods of Job Analysis • Diary Method

– Employees record information into diaries of their daily tasks

• Record the time it takes to complete tasks

– Must be over a period of several weeks or months

• Technical Conference Method

– Uses experts to gather information about job characteristics

Methods of Job Analysis

• Critical Incident Technique (CIT)

– Takes past incidents of good and bad behavior

– Organizes incidents into categories that match the job they are related to

– Involves 4 steps

– Brainstorm and create lists of dimensions of job behaviors

– List examples of effective and ineffective behavior for each dimension

– Form a group consensus on whether each incident is appropriately categorized

– Rate each incident according to its value to the company

How It Works

• Conducting the job analysis

– Know the purpose

– Gather Information about jobs to be analyzed

• Books

• Charts

• Trade union literature

• Government agency literature

– Use employee input

How It Works

• Conducting the job analysis (ctnd.)

– Choose an efficient method of collecting information

– Gather information from employee/supervisor about the job

– Draft a job description

– Obtain supervisor approval

Job Description and Specification

• A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position.

• It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range.

• Job descriptions are usually narrative, but some may instead comprise a simple list of competencies

Job Description and Specification

• A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis considers the areas of knowledge and skills needed for the job.

• A job usually includes several roles.

Importance of Job Descriptions

• clarifies employer expectations for employee

• provides basis of measuring job performance

• provides clear description of role for job candidates

• provides a structure and discipline for company to understand and structure all jobs and ensure necessary activities, duties and responsibilities are covered by one job or another

• provides continuity of role parameters irrespective of manager interpretation

• enables pay and grading systems to be structured fairly and logically

• essential reference tool in issues of employee/employer dispute

Importance of Job Descriptions

• essential reference tool for discipline issues

• provides important reference points for training and development areas

• provides neutral and objective (as opposed to subjective or arbitrary) reference points for appraisals, performance reviews and counselling

• enables formulation of skill set and behaviour set requirements per role

• enables organisation to structure and manage roles in a uniform way, thus increasing efficiency and effectiveness of recruitment, training and development, organisational structure, work flow and activities, customer service, etc

Job Specification • It is a statement which tells us minimum acceptable human

qualities which helps to perform a job. Job specification translates the job description into human qualifications so that a job can be performed in a better manner. Job specification helps in hiring an appropriate person for an appropriate position. The contents are : – Job title and designation

– Educational qualifications for that title

– Physical and other related attributes

– Physique and mental health

– Special attributes and abilities

– Maturity and dependability

– Relationship of that job with other jobs in a concern.

Advantages of Job Specification

• It is helpful in preliminary screening in the selection procedure.

• It helps in giving due justification to each job.

• It also helps in designing training and development programmes.

• It helps the supervisors for counseling and monitoring performance of employees.

• It helps in job evaluation.

• It helps the management to take decisions regarding promotion, transfers and giving extra benefits to the employees

Recruitment

• The process by which a job vacancy is identified and potential employees are notified.

• The nature of the recruitment process is regulated and subject to employment law.

• Main forms of recruitment through advertising in newspapers, magazines, trade papers and internal vacancy lists.

Recruitment

• Job description – outline of the role of the job holder

• Person specification – outline of the skills and qualities required of the post holder

• Applicants may demonstrate their suitability through application form, letter or curriculum vitae (CV)

Recruitment Methods

1. Internal

2. Using existing contacts

3. External contacts

4. Advertising/media

Internal Recruiting—Advantages

• Improves morale of promoted employee

• Improves morale of other staff members

• Managers can better assess the abilities of internal recruits

• Successions help reinforce a company’s internal career ladder

• Lower costs than external recruiting

• Reduces training costs

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• Promotes inbreeding

• Lower morale for those skipped over for promotions

• Skipped over staff may feel favoritism exists

• Filling a gap in one department may create a more critical gap in another

Internal Recruiting—Disadvantages

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• Develop a career ladder

• Inventory employees’ skills

• Cross train employees

• Post job openings

Implementing Internal Recruiting

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• Brings new talent, new ideas into a company

• Enables recruiter to find out about competing companies

• Reinforces positive aspects of a company

• Avoids “politics” of internal recruiting

• Serves as a form of advertising

External Recruiting—Advantages

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• Difficult to find a good fit with company’s culture

• May create morale problems if no opportunities for current staff

• Orientation takes longer

• Lowers productivity in the short run

• Conflicts with internal and external recruits

External Recruiting—Disadvantages

Selection

• The process of assessing candidates and appointing a post holder

• Applicants short listed – most suitable candidates selected

• Selection process – varies according to organisation

Selection

• Interview – most common method

• Psychometric testing – assessing the personality of the applicants – will they fit in?

• Aptitude testing – assessing the skills of applicants

• In-tray exercise – activity based around what the applicant will be doing, e.g. writing a letter to a disgruntled customer

• Presentation – looking for different skills as well as the ideas of the candidate

Choosing selection methods

• Selection criteria

• Appropriateness

• Available (HR) expertise

• Administrative ease

• Time

• Accuracy

• Cost

The Selection Interview

The selection interview has long been recognised as having low predictive validity, in that typical unstructured interviews result in relatively poor predications of job performance.

4 Skills:

1. Framing the question

2. Controlling the flow

3. Listening

4. Making judgements

Functions of the Interview

1. Mutual Preview

2. Assessment

3. Negotiation

Guidelines for Effective Selection Interviewing

Types of selection interview:

• Biographical

• Behavioural

• Situational

Sample Interview Questions

• Biographical

What did you do during you last summer break from

college?

• Situational

Suppose you were giving a sales presentation and a

difficult technical question arose that you could not

answer. What would you do?

• Behavioural

What is the most significant action you have taken to

help out a co-worker?

Before:

• Study all available information

• Agree coverage plan

• Appoint chairperson

• Allow adequate time

• Climate & physical setting

• Prepare for note-taking

During:

• Establish rapport

• Outline purpose & structure

• Follow the coverage plan – interview in turn

• Listen (80%)

• Maintain eye contact & give positive feedback – use silence

• Treat all candidates equally

• Advise candidate of next stage

After:

• Assess candidate against criteria immediately

• Concentrate on solid facts of past behaviour

• Incorporate information from other selection methods

• Advise candidate of outcome A.S.A.P.

Pitfalls

1. Fail to elicit/hear relevant information

2. Fail to use/interpret the information.

Common Errors

- Inadequate preparation

- Halo/horn effect

- Early decisions

- Accuracy of recall

- Selective perception/stereotyping

- Similar to “me”

- Contrast effects

Preventative Measures

• Structured Format

• Use job description & person specification

• Training & experience

• Record during & after against criteria

• Awareness of non-verbal behaviour

Realistic Job Preview:

…designed to enable the candidates to make an informed choice. Involves providing them with extensive information about the organisation and the job.

How to succeed at interviews

• What would be your ideal candidate.

• Prepare, prepare, practise…

• Find out about the job/organisation

• Copy & highlight – applicant, advert. & C.V.

• 5 positive statements about you

• Be up-to-date about developments in your field.

• Decide an acceptable reward package – but let them bring it up.

Common Questions

What have you been doing since…?

What are your strengths/weaknesses as an

employee?

What has been your best achievement?

What are the qualities needed in a good (job

title)?

What do you see yourself doing in 5/10 years?

Avoid-

• Criticising previous employers

• Personal and domestic matters unless asked

• Raising reward package

• Name dropping

• Interrupting

• Pretending you’ve a better offer

Assessment Centres

* Planning * Organising

* Oral/written communication

* Leadership * Decision-making

* Creativity * Initiative

* Problem solving

* Flexibility

Placement

• Placement is a process of assigning a specific job to each of the selected candidates.

• It involves assigning a specific rank and responsibility to an individual.

• It implies matching the requirements of a job with the qualifications of the candidate.

Significance of placement

• It improves employee morale.

• It helps in reducing employee turnover.

• It helps in reducing absenteeism.

• It helps in reducing accident rates.

• It avoids misfit between the candidate and the job.

• It helps the candidate to work as per the predetermined objectives of the organization.

Induction

• Once the employee is selected and placed on an appropriate job, the process of familiarizing him with the job and the organization is known as induction.

• Induction is the process of receiving and welcoming an employee when he first joins the company and giving him basic information he needs to settle down quickly and happily and stars work.

objectives of induction • To give new comer necessary information such as location of a

café, rest period etc.

• To build new employee confidence in the organization.

• It reduces confusion and develops healthy relations in the organization.

• To ensure that the new comer do not form false impression and negative attitude towards the organization.

• To develop among the new comer a sense of belonging and loyalty to the organization.

Advantages of formal induction

• Induction helps to build up a two-way channel of communication between management and workers.

• Proper induction facilitates informal relation and team work among employee.

• Effective induction helps to integrate the new employee into the organization and to develop a sense of belonging.

• Induction helps to develop good relation.

• A formal induction programme proves that the company is taking interest in getting him off to goodstart.

• Induction is helpful in supplying information concerning the organization, the job and employee welfare facilities.