manpower planning and resourcing

8/8/2019 Manpower Planning and Resourcing

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Master of Business Administration-MBA Semester 3

MU0010 Manpower Planning and Resourcing

Assignment Set- 1

Q.1 What are the five steps in Manpower Planning?

Ans:- The employment process begins with manpower planning i.e. the forecasting anddetermination of the exact personnel requirements and a company and the specification of the

strategies and tactics for the acquisition, utilization, improvement and preservation of its human

resources. The aim of manpower planning is to avoid shortfalls and surpluses of labour.

Shortages lead to over utilization while surpluses lead to redundancy and underutilization ofmanpower. With manpower planning, a firm does not react to each new set of circumstances on

the basis of the short-term personnel needs which they present. Rather, the systematic steps that

are taken provide overall co-ordination, direction, and logic for its personnel decisions.

Man power planning is defined by Vetter as:the process by which management determines how

the organization should move from its current manpower position to its desired manpowerposition.

Through planning, the management strives to have the right number and right kind of people , atright places, at the right time, doing things which result in both the organization and the

individual receiving maximum long run benefit.

According to Gordon MacBeath, manpower planning involves two stages. The first stage is

concerned with the detailed planning of manpower requirement for all types and levels ofemployees throughout the period of plan., and the second stage is concerned with the planning

of manpower supplies to provide the organization with the right type of people from all sourcesto meet the planned requirements.

The main steps involved in manpower planning are as follows:

1. Ascertain objectives and operating plans: The first step in manpower planning is to

ascertain the objectives and operating plans of the company. This is because it is the companys

plans and anticipated levels of production and activity that will determine the specific quantity

and quality of manpower that will be required.

2. State the manpower implications of projected operations: The second step is to

specify the manpower implication of the companys projected operations and plans. This

exercise which is an assessment of manpower demand might show the need for more labour in

certain areas while showing the need for reduction of labour in others.


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3. Make an inventory of the firms manpower: The third step is to take an inventory of

the manpower resources within the firm. This involves the physical counting of employees (a

form of census) to know the number of workers that are available in each occupational category.

If the numbers of workers available are not enough to cope with the planned future operations,then more staff will be needed. If there is going to be an excess of employees, then plans have to

be made to reduce the present staff strength.

4. Match resources with requirements: The fourth and final step is to match resources

with requirements. If there is going to be a shortage of particular categories of personnel in

future then arrangements have to be made to recruit more of such workers from the external

labour market. Some workers in the company may of course be trained and upgraded to fill

some of the expected vacancies.

5. Design training programmes: These will be based upon extent of diversification, expansion

plans, development programmes,etc. Training programmes depend upon the extent of improvement in

technology and advancement to take place. It is also done to improve upon the skills, capabilities,

knowledge of the workers.

Activities involved in Manpower Planning:

Identifying and designing current and planned organization structure of the organization.

Estimating current and future workload for different functions and organizational units in

the organization, and, based on that, estimating the current and future total requirement ofpeople to fill the various positions of different types and at different levels.

Developing profile or specifications for people to fill the various positions identified.

Taking an inventory of existing employees in the company, and their capabilities.

Comparing the manpower requirements and availability to determine the additional people required in the organization at different times. While working out this

requirement, suitable provision is made for likely attribution of some of the existing

employees. Similarly while examining capability requirements of employeesconsideration is given to on the development of skill and capability of people with work

experience. This activity results in identification of the total additional manpower

requirements to be fulfilled by various means.

Determining, the means of acquiring the additional required manpower through variousmeans such as external recruitment, internal transfers and promotions, and training.

Preparing recruitment plan.

Preparing training plan.
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Manpower planning plays a vital role in Human Resource activity of an organization. Human

Resource is an asset to every organization. Manpower planning mainly involves determining the

needs and supply of human resource and the available sources.

The organization should make Manpower Planning in such away that it should satisfy bothorganization and employer at a higher level. It result in creating working environment and

maintain better employee and employerrelationship.

Q.2 Explain Supply forecasting.

Ans:- Forecasting a companys future demand in human resources is a necessary procedure in

light of organizational objectives and strategies. Forecasting is based on information from the

past and the present to identify expected future conditions. Such information may come fromexternal environmental scanning and/or the assessment of internal strengths and weaknesses.

There are different methods for forecasting human resources demand that range from a

managers best guess to a complex computer simulation. While simple assumptions may be

sufficient in small-sized companies, complex models that combine subjective judgment and

quantitative data are usually necessary for larger organizations. The future demand for

employees is calculated on an organization-wide basis; the needs of individual units in the

organization are taken into consideration. The HR expert or an experienced manager who

handles the forecasting process needs to consider specific openings that are likely to occur and to

use such data as the basis for planning. Openings are created when employees leave a position

because of promotions, transfers, and terminations. Forecasting leads to projections for the

future. Depending on the forecasting method used, the projections may be more or less subject to

error. Once human resources needs have been identified, the availability must be checked. The

forecast of the availability of human resources is considering both internal and external supplies.

Internally, succession plans developed to identify potential personnel changes, due to promotion,

retirement, resignation, etc for each department in an organization are examined. By the end of

this analysis, the organization is able to know if there are employees to cover future demand

from within its resources. Externally, there are many factors, such as the labor-force populationestimates, trends in theindustry, technological developments and shirts. The organization must

take such factors into consideration to be able to know if ideal candidates can be located.
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HR SUPPLY FORECASTING -- CONSIDER THE FOLLOWING

1.EXPERT

Informal internal surveys.

managers prepare their own estimates based on workload.

Formal external surveys.

planners survey managers, using questionnaires or focused discussion.

Delphi techniques

solicit estimates from a group of managers, until the

estimates converge.

2.TREND PROJECTIONS

Extrapolations

extending past rates of change into the future.

Indexation

matching employment growth with , say, sales.

Statistical analysis

OTHERS

Planning and budgeting systems

based on strategic and corporate plannings/ budgeting.

New venture analysis


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making comparisons with similar operations.

Computer models

using multiple variables.

Q.3 What is the cost approach of HR ACCOUNTING?

Ans:- HRA is the art of valuing, recording and presenting systematically the work of human

resources in the books of accounts of an organisation. Thus, it is primarily an information

system, which informs the management about the changes that are taking place in the human

resource of an organisation.

DEFINITIONS

Human Resource Accounting is the process of identifying and measuring data about humanresources and communicating this information to interested parties.

- American Accounting Society Committee

on HRA

Human Resource Accounting is an attempt to identify and report investments made in human

resources of an organisation that are presently not accounted for in conventional accounting

practice. Basically it is an information system that tells the management what changes over timeare occurring to the human resource in the business.

- Woodruff

A term used to describe a variety of proposals that seek to report and emphasize the importanceof human resources knowledgeable, trained and loyal employees in a company earning process

and total assets.

- Davidson and Roman L Weel

Human resource accounting is the measurement of the cost and value of the people for the

organisation.

- Eric Flamholtz of university of California, Los Angeles

Objectives of HR Accounting


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The objective of HRA is not merely the recognition of the value of all resources used by the

organisation, but it also includes the management of human resource which will ultimately

enhance the quantity and quality of goods and services. The main objectives of HR Accountingsystem are as follows:

1. To furnish cost value information for making proper and effective management decisions

about acquiring, allocating, developing and maintaining human resources in order to

achieve cost effective organisational objectives.2. To monitor effectively the use of human resources by the management.

3. To have an analysis of the human assets i.e. whether such assets are conserved, depleted

or appreciated.4. To aid in the development of management principles. and proper decision making for the

future by classifying financial consequences of various practices.

5. In all, it facilitates valuation of human resources recording the valuation in the books ofaccount and disclosure of the information in the financial statement.

6. It helps the organisation in decision making in the following areas:

Direct Recruitment vs. promotion, transfer vs. retention, retrenchment vs. retention, impact onbudgetary controls of human relations and organisational behaviour, decision on reallocation of

plants closing down existing units and developing overseas subsidiaries etc.

Advantages of HR Accounting

Human Resource Planning anticipates not only the required kind and number of employees but

also determines the action plan. The major benefits of HR accounting are:

a) It checks the corporate plan of the organisation. The corporate plan aiming forexpansion, diversification, changes in technological growth etc. has to be

worked out with the availability of human resources for such placements or key

positions. If such manpower is not likely to be available, HR accounting

suggests modification of the entire corporate plan.

b) It offsets uncertainty and change, as it enables the organisation to have the

right person for the right job at the right time and place.

c) It provides scope for advancement and development of employees byeffective training and development.

d) It helps individual employee to aspire for promotion and better benefits.

e) It aims to see that the human involvement in the organisation is not wasted

and brings high returns to the organisation.


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f) it helps to take steps to improve employee contribution in the form of

increased productivity.

g) It provides different methods of testing to be used, interview techniques to

be adopted in the selection process based on the level of skill, qualificationsand experience of future human resources.

h) It can foresee the change in value, aptitude and attitude of human resources

and accordingly change the techniques of interpersonal management

Methods of valuation of human resource management

1. Historical Cost Approach This approach was developed by William C. Pyle (andassisted by R. Lee Brummet & Eric G. Flamholtz) and R.G. Barry corporation, a leisure

footwear manufacturer based on Columbus, Ohio (USA) in 1967. In this approach, actualcost incurred on recruiting, hiring, training and development the human resources of theorganisation are capitalised and amortised over the expected useful life of the human

resources. Thus a proper recording of the expenditure made on hiring, selecting, training

and developing the employees is maintained and a proportion of it is written off to the

income of the next few years during which human resources will provide service. If thehuman assets are liquidated prematurely the whole of the amount not written off is

charged to the income of the year in which such liquidation takes place. If the useful life

is recongnised to be longer than originally expected, revisions are effected in theamortisation schedule. The historical cost of human resources is very similar to the book

value of the other physical assets. When an employee is recruited by a firm, he is

employed with the obvious expectation that the returns from him will far exceed the costinvolved in selecting, developing and training in the same manner as the value of fixed

assets is increased by making additions to them. Such additional costs incurred in training

and developing is also capitalised and are amortised over the remaining life. Theunexpired value is investment in human assets.

This method is simple to understand and easy to work out. It meets the traditional

accounting concept of matching cost with revenue. It can provide a basis of evaluating acompanys return on its investment in human resources.

But it suffers from the following limitations:

It takes into account a part of the employees acquisition costs and thus ignores theaggregate value of their potential services.

It is difficult to estimate the number of years over which the capitalised

expenditure is to be amortised.

It is difficult to determine the rate of amortisation. Should it be increasing,

constant or decreasing one?


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The economic value of human resources increases over time as the people gain

experience. But in this approach, the capital cost decreases through amortisation.

2. Replacement Cost Approach This approach was first suggested by Rensis Likert,

and was developed by Eric G. Flamholtz on the basis of concept of replacement cost.

Human resources of an organisation are to be valued on the assumption that a new similarorganisation has to be created from scratch and what would be the cost to the firm if the

existing resources were required to be replaced with other persons of equivalent talents

and experience. It takes into consideration all cost involved in recruiting, hiring, trainingand developing the replacement to the present level of proficiency and familiarity with the

organisation.

This approach is more realistic as it incorporates the current value of companys human

resources in its financial statements prepared at the end of the year. It is more

representative and logical. But it suffers from the following limitations:

a) This method is at variance with the conventional accounting practice of valuingassets.

b) There may be no similar replacement for a similar certain existing asset. It is really

difficult to find identical replacement of the existing human resource in actual

practice.

c) The determination of a replacement value is affected by the subjective

considerations to a marked extent and therefore, the value is likely to differ from

man to man.

3. Opportunity Cost This method was first advocated by Hc Kiman and Jones for acompany with several divisional heads bidding for the services of various people they need

among themselves and then include the bid price in the investment cost. Opportunity cost

is the value of an asset when there is an alternative use of it. There is no opportunity cost

for those employees that are not scarce and also those at the top will not be available forauction. As such, only scarce people should comprise the value of human resources.

This method can work for some of the people at shop floor and middle order management.Moreover, the authors of this approach believe that a bidding process such as this is a

promising approach towards more optional allocation or personnel and a quantitative basefor planning, evaluating and developing human assets of the firm. But this approachsuffers from the following limitations:

a) It has specifically excluded from its preview the employees scarce or not being

bid by the other departments. This is likely to result in lowering the morale and

productivity of the employees who are not covered by the competitive process.


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b) The total valuation of human resources on the competitive bid price may be

misleading or inaccurate. It may be due to the reason that a person may be an

expert for one department and not so for the other department. He may be valuable person for the department in which he is working and thus command a high value

but may have a lower price in the bid by the other department.

c) Under this method, valuation on the basis of opportunity cost is restricted to

alternative use within the organisation. In real life such alternative use may not beidentifiable on account of the constraints in an organisational environment.

Q.5 Write a note on internal sourcing

Ans:- Internal Sourcing teams definitely have a very important function in todays market. They

are relationship builders, trust earners and communicators of the company. They not onlyunderstand the subtle nuances of the hiring departments, but the competition as well. They know

where their prospects hide and sniff them out with a dangling carrot; the wonderful opportunity

he or she cant afford not to hear. They acquire talent more for the win than for the money.

The term internal recruitment is defined as the practice of choosing amongst current

companyworkers to fill a position that falls vacant over time. The vacancy could sometimes be

advertised throughout a company; this could be on the company's monthly or quarterlyjob-sheet.Most institutions of higher learning use this practice. The practice is evoked occasionally when a

company's employee has been rendered redundant in their current post, and oftentimes it's a way

used to promote a certain company employee sideways other than up the firm. Internal

recruitment is often resorted to as a way of saving money that could be spent throughadvertisements and also to cut on training costs that an outside employee would need to become

familiar with the system.

Internal vacant positions are advertised in various ways, it could be done through an internal job

sheet, the company's notice board or through the company's intranet - this is the type of website

whose viewing is limited to the organizations members. Others companies have companymagazines that they use for advertisement purposes while others may use staff meetings - this

could be used when an organization wants to advertise the vacant position to a specific group of

employees.

Advantages of internal recruitment are more than just cutting on advertisement costs because

it offers wonderful opportunities for the current staff to further their careers. Internal recruitmentcould also be a great way of keeping workers who may have been considering a flight from the

company, this is advantageous because the cost of training are at most best insignificant and to

the worst much less than it would cost if the organization advertised outside. It's definitely faster
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and less costly than outside recruitment and it has the added merits because current employees

are a familiar entity. Some organizations conduct external recruitment only to discover later that

they have a member of staff who doesn't fit into the general environ and the mission and visionstatement of the organization.

The disadvantage of internal recruitment is that the size of prospective applicants isconsiderably reduced. There is no doubt that outside recruitment provides the organization with a

broader skill pool and wider experience than could be the case with internal recruitment. A staff

member who responds to the internal advertised position and gets the job might discover thattheir workmates resent that promotion and that could prove very challenging for them in their

newfound positions. If a company does its recruitment internally, It most probably faces the

possibility of having another empty position to fill, and of how to do that. Organizations that

heavily rely on inside recruitment might eventually find that they have to advertise outside theorganization, the cost notwithstanding. Current staff may fill to be the best candidates for the

position regardless of whether they have the necessary expertise and expertise required for the

job.

Q.6 Write a note on performance management

Ans:- The field of performance management can comprise two separate types of management. In

one aspect of performance management, an analyst may view the performance of a company as a

whole, and also evaluate the effectiveness of the managers and heads of companies in reachinggoals. In another sense, performance management may be a system of evaluating employees to

help them reach reasonable goals and thus ensure that the company performs better. This

discussion will focus on the latter definition.

Performance management of individual employees differs. It generally includes the following:planning work, setting goals, offering feedback and reviews, offering opportunities to learn more

in ones field, and rewarding employees who perform well.

Employee performance management works best when work is planned and goals are consistent.

This may mean having a clear way to communicate regarding work expected at the moment andupcoming work. Planning also includes defining expectations of the employee so that he or she is

not broadsided by evaluation criteria not included in planning.

Planning and setting goals in performance management also creates a system of predictable

rewards for good performance, and consequences for poor performance. This way the employee

can reasonably assume the consequences of work performance, whether good or bad.

Performance management also involves giving feedback to employees on a more consistent basis

than the average annual review. Instead, an employees ability to exceed or failure to meet goals

may be monitored on a monthly basis. This provides the employee with either the opportunity toreceive compliments and rewards fairly regularly, or to make behavior changes sooner if

performance is not up to par.
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Often employees feel that end of the year reviews contain criticisms of work in the past year that

were never openly discussed with the employee. The employee benefits from a more consistent

model of performance management evaluation, since this gives a person time to address issuesand change problem issues.

In a performance management model, employees must also be given ways to grow and develop

in their field. This means giving opportunities to work on harder projects, pairing less-skilled

employees with expert employees, and offering team models where employees can direct andmake decisions. Greater responsibility and opportunities to advance in ones field are essential to

maintaining happy and productive employees.

Rewards are also a huge part of performance management. The greatest part of this is rewards ofmonetary nature, either in bonuses or raises, when employees perform well. As well, employees

who actually are now qualified to work in a high level of their field should be placed in positions

of greater responsibility, and receive a greater share of pay. Performance analysis should focus as

much or more on positive performance than it does on negative performance. Rewards forpositive performance must be real and tangible, or else the company runs the risk of becoming a

negative action company only.

Employee performance management may be taught to companies who have difficulty

maintaining performance of employees or who have a long history of unhappy employees andturnaround. Companies may hire experts in performance management to learn how to model its

concepts.

As review about key terms in performance management, key terms are below:

1. Review organizational goals to associate preferred organizational results in terms of unitsof performance, that is, quantity, quality, cost or timelinessOrganizational goals are often established during strategic planning. Performance managementtranslates these goals to results, which typically are described in terms of quantity, quality,timeliness or cost. Results are the primary products or services desired from the focus of theperformance process. Examples are a percentage increase in sales, extent of impact on a certaincommunity, etc. Goals should be "SMART" (an acronym), that is, specific, measurable,acceptable, realistic to achieve and time-bound with a deadline. For example, an overall goal maybe to increase the organization's profit by 30% by the end of the next fiscal year. An associatedstrategy (or sub-goal), among others, may be to increase profit of the Catalog Department by50% over the next fiscal year.

2. Specify desired results for the domain -- as guidance, focus on results needed by otherdomains (e.g., to internal or external customers)For example, the operator's results are high-quality, printed images for the internal customer, the

Catalog Department. This aspect of performance management is sometimes called "goal setting",particularly when the focus of the performance process is on employees. Goals should be"SMART" and challenging.

3. Ensure the domain's desired results directly contribute to the organization's results Aligning results with organizational results is another unique aspect of performancemanagement process. Do the employee's results directly contribute to the results of theorganization? What organizational goals? How? For example, do the prints directly contribute tothe desired profit increase of 50% of the Catalog Department? How? Is there anything else the
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operator could be doing that would be more productive for this goal? Should a job analysis bedone to verify efficiency

4. Weight, or prioritize, the domain's desired resultsA weight, or prioritization, is often in the form of percentage-time-spent, or a numeric ranking with"1" as the highest. For example, the employee's results might be weighted as follows:

a) 80% of his time over an 8-hour period, Monday through Friday over the next fiscal year, to bespent running the machineb)10% of this time in trainingc)10% of this time in a Quality Circle.

5. Identify first-level measures to evaluate if and how well the domain's desired results wereachievedMeasures provide information to evaluate accomplishment of results. Measures are usuallyspecified in terms of quantity, quality, timeliness or cost. For example, measures for the operatormight be the number of prints over some time interval, a certain grade on a test during his trainingand attendance recorded on attendance sheets to his Quality Circle. Identifying which measuresto take is often the toughest part of the performance management process. You have to look atthe appropriate level or domain in the organization, its desired results, and consider what are themost valid, reliable and practical measurements to use. With complex and rapidly changing

domains, it often helps to identify outcome and driver measures, andpatterns of effects. Moreabout these terms in Performance Measurement, which is also referenced back in BasicOverview of Performance Management.)

6. Identify more specific measures for each first-level measure if necessaryFor example, regarding the operator's measure for operating his machine, he may have toproduce at least 500 high-quality prints an hour for eight hours, Monday through Friday during thefiscal year. High-quality means no smears or tears. The Director of the Catalog Departmentevaluates whether the operator made this goal or not.

7. Identify standards for evaluating how well the domain's desired results were achievedStandards specify how well a result should be achieved. For example, the operator "meetsexpectations" if the Director of the Catalog Department agrees that the operator produced 500high-quality prints an hour for eight hours, Monday through Friday during the fiscal year. If heproduces 600, he "exceeds expectations", 700 is "superior performance", 400 is "does not meetexpectation", etc.

8. Document a performance plan -- including desired results, measures and standardsThe performance plan describes the domain's preferred results, how results tie back to theorganization's results, weighting of results, how results will be measured and what standards areused to evaluate results. Developing the plan is often the responsibility of the head of the domain(in this example, the employee's supervisor). However, the plan should be developed as much aspossible with participants in the domain. (Note that a performance plan is not the same as a"performance development plan", which is mentioned later below.)

NOTE: Now is the best time to take stock of overall performance plans. Does the domain have

the necessary resources to achieve preferred results, e.g., necessary funding, training, input from

other subsystems, etc? Are the standards realistic? Can the domain realistically achieve the

results within the preferred time frame? Does everyone involved in the measures reallyunderstand how to recognize the measures? Do they know their role in the performance

management process?
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Master of Business Administration-MBA Semester 3

MU0010 Manpower Planning and Resourcing

Assignment Set- 2

Q.1 Explain different types of tests used for selection.

Ans:- Tests play an important part in the selection process of new employees. Tests are of

different types but their main goal is to measure an applicant's skills, check their personalitiesand find out if they match the positions available in a certain company or organization. The use

of software in providing skill testing has become popular these days. This is said to be more cost-

effective compared to hiring the wrong employee for the job.

Organisations typically use several different methods to assess job applicants: you will usually

be asked to complete an application form, send in a copy of your resume and attend at least oneinterview. One method that is becoming increasingly used is employee selection tests. These

tests aim to provide a potential employer with an insight into whether you will be able to cope

with the intellectual demands of the job and how well you work with other people.

Employee selection tests can be split into personality tests and aptitude/ability tests.

Employee Selection Tests - Aptitude and Ability

Aptitude and ability tests consist of multiple choice questions and are administered under exam

conditions. These types of test can be broadly classified onto the groups shown and you may be

asked to sit a test which consists only of numerical questions or these may form part of a test

which consists of questions of different types.
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This will depend very much on the job you are applying for. For example, jobs that require you

to handle figures on a day to day basis may have a higher proportion ofnumerical reasoning

questions, whereas tests used for information technology jobs tend to have a higher proportion

ofabstract reasoning questions.

Verbal Ability Tests Includes spelling, grammar, ability to understand analogies and follow

detailed written instructions.

Numeric Ability Tests - Includes basic arithmetic, number sequences and simple mathematics.

In more complex numerical critical reasoning questions, blocks of information are provided that

require interpretation.

Abstract Reasoning Tests - Measures your ability to identify the underlying logic of a pattern

and then determine the solution. They are deliberately designed so that the visual problem-

solving strategy will work better than any other approach.

Spatial Ability Tests - Measures your ability to manipulate shapes in two dimensions or to

visualize three-dimensional objects presented as two-dimensional pictures.

Mechanical Aptitude Tests - Designed to assess your knowledge of physical and mechanical

principles.

Data Checking Tests - Measure how quickly and accurately errors can be detected in data and is

used to select candidates for clerical and data input jobs.

Work Sample Tests Involves a sample of the work that you will be expected do. These types

of test can be very broad ranging. They may involve exercises using a word processor or

spreadsheet if the job is administrative or they may include giving a presentation or in-tray

exercises if the job is management or supervisory level.
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Employee Selection Tests Personality

Personality has a significant role to play in deciding whether you have the enthusiasm and

motivation that the employer is looking for and whether you going to fit in to the organization.

The principle behind personality questionnaires is that it is possible to measure your

personality by asking you about your behavior and feelings. You will be presented with

statements describing various ways of feeling or acting and asked to respond to them as either

true or false or on a scale. For example:

1. I enjoy noisy parties ?

A) True B) False

2. I always trust my intuition?

A) strongly

disagree

B) disagree C) neutrals D) agree E) strongly agree

These tests can help prospective employers to find the best match of individual to occupation and

working environment. As a recruitment and selection tool, they can be applied in a

straightforward way at the early stages of selection to screen-out candidates who are likely to be

unsuitable for the job or, using a more sophisticated approach, to provide guidance on careerprogression to existing employees

Q.2 Describe the designing of an induction program

Ans:- An induction program is the process used within many businesses to welcome new

employees into the firm or organization and prepare them for their new role. An induction is

planned to provide the new employee with the information he/she requires to settle comfortablyand efficiently into the firm. Some of the organizations do not lay emphasis on this function.

An induction often starts by a meeting with the HR manager. In the meeting information is

shared about the work environment, the new job description, benefits, organization culture, thesafety of the individual, company history and anything else relevant to working in the neworganization. Induction includes an introduction to each department in the organization.

Induction primarily allows the employee to get familiarized with the basics of the organization,

its policies and procedures, its processes, it goals, vision, mission, values, compensation payout

methods, reimbursement payout methods and the nature of business the organization is involved
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in. These basics focuses more on the information or knowledge that is immediately required for

the employee to feel comfortable. It is also the beginning of the employees experiencing the

organizations work culture.

When the employee needs to know much more about the functioning of the organization, anorientation session may be conducted in addition to an induction program in which the new

employee spends time doing the jobs in each department to understand the product or service

through the organization. Or the employee may spend time meeting different people in theorganization to understand a little bit more about the working of the organization. The

orientation program for different groups of employees could be tailored differently to achieve

their orientation program goals in specific. The best new employee orientation programs:

Have targeted goals and objectives to meet them

Makes the first day a celebration and memorable

Involves family as well as colleagues

Makes new hires productive on the very first day

Are not boring, rushed or inefficient

Uses feedback for continuous improvement.

Induction Program Outline
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effectively in regards to assigning tasks to team members, scheduling training classes and

ordering necessary supplies for training functions.

Other Duties: HRD managers regularly serve as consultants to the company's executive

management team for a variety of needs including identifying training solutions for under-performing departments of the company, and developing effective change management strategies

when the organization is going through a merger or company re-organization. In large

corporations, the HRD manager is called upon to develop succession planning training anddevelopment strategies for executive personnel.

Q.4 Discuss talent engagement model.

Ans:- Engaged talents feel inspired, energized and motivated to give their best and hence talentengagement is central to retaining key talent and securing sustained high levels of individual,

team and organizational performance. But the way organizations lead, organize and managetalents frequently results in disengaged, frustrated and demotivated employees whose potential isunderutilized and whose performance is sub optimal. Too often the organization adopts a rigid,

mechanistic approach to people and organizations, particularly in times of uncertainty and

change. Therefore a Talent Engagement Model is suggested as shown in fig. 4 for the

organizations, who really want to engage their talents and want to leverage their skills toaccomplish both the organizational and individual goals.The first and the most critical aspect are

the, "engagement drivers". These are the levers that organizations can use to build a more

engaging work environment.

Organizations must hire employees who fit the job requirements, develop leaders with the right

skills, and provide support through strong systems and strategies of engagement and convertthem into actually engaged talents. Employees expect to be valued and involved, good quality

line management, two way communications, career development, clear company values and

image and atlast they want efficient and effective use of their skills and talents which help themto convert into an engaged talent Together, working on drivers lead to the formation of an

engaging work environment. Once created, the engaging work environment has a positive impact

on employee behaviors and attitudes. In particular, an engaging environment builds the feeling of

psychological ownership in the minds of talents by meeting their personal and practical needs,thus encouraging them to put redundant efforts for maximum performance and stay with the

organization. In addition, an engaging work environment taps into talents' motivation to try

harder and put forth the extra effort that differentiates organizations from their competitors.

Finally, when organizations have engaged talents, the long-term benefits appear in the bottomline. Organizations have more satisfied and loyal customers, increased profits, better-quality

products or services, and greater growth potential. Organizations drive engagement by proactively leveraging three sources of influence for change: employees, leaders, and

organizational systems and strategies. These three sources work in unison to build an engaging

work environment. Although engagement has multiple drivers, the ultimate ownership of

engagement rests within the individual employee. Organizations hoping to drive engagement
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must tap into employees' passion, commitment, and feeling of ownership with the organization.

This is accomplished by implementing the critical engagement drivers as mentioned in the

previous section.The engagement drivers initiate more and more engaged talents and tries todevelop an emotional connection between the talent and the organization, the first phase of

"Cognitive Think". The second important component of the model is generation of thepossessive feeling among talents regarding their organization known as "PsychologicalOwnership", which leads to the positive attitude of "Organizational Commitment" and the

positive behavior of "Job Satisfaction" among employees which is the second phase of

"Affective

Feel".

The outcome of the engaged talent can be seen in the "Behavioral Act", the last phase of talents

intention to stay and redundant efforts which leads to Talent Retention and IncreasedPerformance respectively

The most appropriate work environment of engagement would lead to a heightened sense of

employee motivation, which, in turn, would lead to enhanced or discretionary effort. Enhanced

effort is not just putting in the extra time; it also refers to getting things done in the right manner.Talent engagement represents the extent to which the workforce identifies with the company, is

committed to it and provides discretionary effort so that it can be successful. Engagement is a

key leading indicatorfor high performance workplaces, improved employee productivity andminimized turnover.

Q.5 Explain career planning process.

Ans:- Career planning is a lifelong process, which includes choosing an occupation, getting ajob, growing in our job, possibly changing careers, and eventually retiring. The Career Planning

Site offers coverage of all these areas. This article will focus on career choice and the process

one goes through in selecting an occupation. This may happen once in our lifetimes, but it ismore likely to happen several times as we first define and then redefine ourselves and our goals.

Career Planning: A Four Step Process

The career planning process is comprised of four steps. One might seek the services of a career

development professional to help facilitate his or her journey through this process. Whether ornot you choose to work with a professional, or work through the process on your own is less

important than the amount of thought and energy you put into choosing a career.

Self

Gather information about yourself (self assessment)
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Interests

Values

Roles

Skills/Aptitudes

Preferred Environments

Developmental Needs

Your realities

Options

Explore the occupations in which you are interested

Research the industriesin which you would like to work

Research the Labor Market

Get more specific information after you narrow down your options by:

Job Shadowing

Part time work, internships, orvolunteer opportunities

Written materials

Informational interviews

Match

During this phase of the process, you will:

Identify possible occupations

Evaluate these occupations
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Explore alternatives

Choose both a short term and a long term option

Action

You will develop the steps you need to take in order to reach your goal, for example:

Investigating sources of additionaltraining and education, if needed

Developing a job search strategy

Writing your resume Gathering company information

Composing cover letters

Preparing for job interviews

First of all, you do not totally know yourself. At some point, some people would know you more

than you do. Therefore, if you are confused about the decision that you are making, ask close

friends. They might give you some career planning advice or insight about where you truly

excel.

Try to also ask your former mentors. They have assessed your strengths and weaknesses at one

time, so they might give you lots of help now.

Ask your parents too. In the end, your career directions would be a consolidated effort that are

accomplished by you as well as of the people who helped mentor you - including your parents.

Indeed, having to decide career choices are difficult, sometimes mind-boggling.

You have to take a stand. You may encounter several career planning advice tips or get some

career planning tools, but in the end the decision boils down to you.

Whatever it is that other people would say can only help you make a decision, but must

definitely not dictate your decision.

Q.6 Write a detailed note on Retirement

Ans:- Retirement is the point where a person stops employment completely (or decides to leave thelabor force if he or she is unemployed). A person may also semi-retire by reducing work hours.

Many people choose to retire when they are eligible for private or public pension benefits,although some are forced to retire when physical conditions don't allow the person to work any

more (by illness or accident) or as a result of legislation concerning their position. In most
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Notes: Parentheses indicate eligibility age for women when different. Sources: Cols. 12: OECD

Pensions at a Glance (2005), Cols. 36: Tabulations from HRS, ELSA and SHARE. Square

brackets indicate early retirement for some public employees.

In the United States, while the normal retirement age for Social Security, or Old Age Survivors

Insurance (OASI), historically has been age 65 to receive unreduced benefits, it is gradually

increasing to age 67. For those turning 65 in 2008, full benefits will be payable beginning at age66.

Public servants are often not covered by Social Security but have their own pension programs.

Police officers in the United States are typically allowed to retire at half pay after only 20 years

of service or three-quarter pay after 30 years, allowing people to retire in their early forties orfifties. Military members of the US Armed Forcesmay elect to retire after 20 years of active

duty. Their retirement pay (not a pension since they can be involuntarily called back to activeduty at any time) is calculated on total number of years on active duty, their final pay grade andthe retirement system in place when they entered service. Allowances such as housing and

subsistence are not used to calculate a member's retired pay. Members awarded the Medal of

Honorqualify for a separate stipend, regardless of the years of service. Military members in the

reserve and US National Guard have their retirement based on a point system.

Factors affecting retirement decisions

Many factors affect people's retirement decisions. Social Security clearly plays an important

role. In countries around the world, people are much more likely to retire at the early and normal

retirement ages of the public pension system (e.g., ages 62 and 65 in the U.S.). This patterncannot be explained by different financial incentives to retire at these ages since typically

retirement benefits at these ages are approximately actuarially fair; that is, the present value of

lifetime pension benefits (pension wealth) conditional on retiring at age a is approximately thesame as pension wealth conditional on retiring one year later at age a+1. Nevertheless a large

literature has found that individuals respond significantly to financial incentives relating to

retirement (e.g., to discontinuities stemming from the Social Security earnings test or the tax

system).

Greater wealth tends to lead to earlier retirement, since wealthier individuals can essentially

"purchase" additional leisure. Generally the effect of wealth on retirement is difficult to estimate

empirically since observing greater wealth at older ages may be the result of increased savingover the working life in anticipation of earlier retirement. However, a number of economistshave found creative ways to estimate wealth effects on retirement and typically find that they are

small. For example, one paper exploits the receipt of an inheritance to measure the effect of

wealth shocks on retirement using data from the HRS. The authors find that receiving aninheritance increases the probability of retiring earlier than expected by 4.4 percentage points, or

12 percent relative to the baseline retirement rate, over an eight-year period.
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A great deal of attention has surrounded how the financial crisis is affecting retirement

decisions, with the conventional wisdom saying that fewer people will retire since their savings

have been depleted; however recent research suggests that the opposite may happen. Using datafrom the HRS, researchers examined trends in defined benefit (DB) vs. defined contribution

(DC) pension plans and found that those nearing retirement had only limited exposure to therecent stock market decline and thus are not likely to substantially delay their retirement. At thesame time, using data from the Current Population Survey (CPS), another study estimates that

mass layoffs are likely to lead to an increase in retirement almost 50% larger than the decrease

brought about by the stock market crash, so that on net retirements are likely to increase inresponse to the crisis.More information tells of how many who retire will continue to work, but

not in the career they have had for the majority of their life. Job openings will increase in the

next 5 years due to retirements of the baby boomer generation. The Over 50 population is

actually the fastest growing labor groups in the US. This might have something to do with theeconomy, or the fact that this generation is outliving any previous generation and needs a job to

entertain them!

A great deal of research has examined the effects of health status and health shocks onretirement. It is widely found that individuals in poor health generally retire earlier than those in

better health. This does not necessarily imply that poor health status leads people to retire earlier,

since in surveys retirees may be more likely to exaggerate their poor health status to justify their

earlier decision to retire. This justification bias, however, is likely to be small. In general,declining health over time, as well as the onset of new health conditions, have been found to be

positively related to earlier retirement. Most people are married when they reach retirement age;

thus, spouse's employment status may affect one's decision to retire. On average, husbands arethree years older than their wives in the U.S., and spouses often coordinate their retirement

decisions. Thus, men are more likely to retire if their wives are also retired than if they are still in

the labor force, and vice versa

Saving for retirement

Retired workers then support themselves either through pensionsor savings. In most cases the

money is provided by the government, but sometimes granted only by private subscriptions to

mutual funds. In this latter case, subscriptions might be compulsory or voluntary. In some

countries an additional "bonus" is granted una tantum (once only) in proportion to the years ofwork and the average wages; this is usually provided by the employer.

The financial weight of provision of pensions on a government's budget is often heavy and is the

reason for political debates about the retirement age. The state might be interested in a laterretirement age for economic reasons.

The cost of health care in retirement is large, because people tend to be ill more frequently in

later life. Most countries provide universal health insurance coverage for seniors, although in the

United States many people retire before they become eligible for Medicare at age 65. In 2006,Medicare Part Dwent into effect, expanding benefits to include prescription drug coverage.
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Retirement calculation

For most people, employer pensions, government pensions and the tax situation in their countryare important factors, typically taken account of in calculations by actuaries. Ignoring those

significant nation-specific factors but not necessarily assuming zero real interest rates, a 'not to

be relied upon' calculation of required personal savings rate zprop can be made using a littlemathematics. It helps to have a dimly-remembered acquaintance with geometric series, maybe in

the form

1 + r+ r2 + r3 + ... + rn1 = (1 rn)/(1 r)

You work for w years, saving a proportion zprop of pay at the end of each year. So the after-savings purchasing power is (1-zprop) of pay while you are working. You need a pension for p

years. Let's say that at retirement you are earning S per year and require to replace a ratio Rrepl

ofyour pre-retirement living standard. So you need a pension of (1 zprop ) Rrepl S, indexed to priceinflation.

Let's assume that the investments, after price inflation fprice, earn a real rate ireal in real terms

where

(1+ ireal ) = ((1+inominal))/((1+fprice ) ) (Ret-01)

Let's assume that the investments, after wage inflation fpay, earn a real rate i rel to pay where

(1+ irel to pay

) = ((1+inominal

))/((1+fpay

) ) (Ret-02)

Size of lump sum required

To pay for your pension, assumed for simplicity to be received at the end of each year, and

taking discounted values in the manner of a net present value calculation, you need a lump sum

available at retirement of:

(1 zprop ) Rrepl S {(1+ ireal ) 1+(1+ ireal ) 2 + .+ (1+ ireal ) -p}

= (1-zprop ) Rrepl S {(1 (1+ireal)-p )/ireal}

Above we have used the standard mathematical formula for the sum of a geometric series. (Or if

ireal =0 then the series in braces sums to p since it then has p equal terms). As an example, assume

that S=60,000 per year and that it is desired to replace Rrepl=0.80, or 80%, of pre-retirementliving standard for p=30 years. Assume for current purposes that a proportion z prop=0.25 (25%)

of pay was being saved. Using ireal=0.02, or 2% per year real return on investments, the necessary

lump sum is given by the formula as (1-0.25)*0.80*60,000*annuity-series-
http://www.soa.org/http://en.wikipedia.org/wiki/Geometric_serieshttp://en.wikipedia.org/wiki/Geometric_serieshttp://en.wikipedia.org/wiki/Real_termshttp://en.wikipedia.org/wiki/Net_present_valuehttp://en.wikipedia.org/wiki/Geometric_serieshttp://www.soa.org/http://en.wikipedia.org/wiki/Geometric_serieshttp://en.wikipedia.org/wiki/Real_termshttp://en.wikipedia.org/wiki/Net_present_valuehttp://en.wikipedia.org/wiki/Geometric_series


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sum(30)=36,000*22.396=806,272 in the nation's currency in 20082010 terms. To allow for

inflation in a straighforward way, it is best to talk of the 806,272 as being '13.43 years of

retirement age salary'. It may be appropriate to regard this as being the necessary lump sum tofund 36,000 of annual supplements to any employer or government pensions that are available. It

is common to not include any house value in the calculation of this necessary lump sum, so for ahomeowner the lump sum pays primarily for non-housing living costs.

Size of lump sum saved

Will you have saved enough at retirement? Use our necessary but unrealistic assumption of a

constant after-pay-rises rate of interest. At retirement you have accumulated

zprop S {(1+ i rel to pay )w-1+(1+ i rel to pay )w-2 + .+ (1+ i rel to pay )+ 1 }

= zprop S ((1+i rel to pay)w- 1)/i rel to pay

Equate and derive necessary saving proportion

To make the accumulation match with the lump sum needed to pay your pension:

zprop S (((1+i rel to pay )) w - 1)/i rel to pay = (1-zprop ) Rrepl S (1 ((1+i real)) -p )/i real

Bring zprop to the left hand side to give our answer, under this rough and unguaranteed method,

for the proportion of pay that we should be saving:

zprop

= Rrepl

(1 ((1+ireal

))-p

)/ireal

/ [(((1+irel to pay

))w

- 1)/irel to pay

+ Rrepl

(1 ((1+ireal

))-p

)/ireal

](Ret-03)

You are encouraged to download the use-at-your-own-financial-risk spreadsheet. The results in

the spreadsheet can be seen to make sense. For example, working for 5 years and drawing a

pension for 5 years requires you to save almost half your pay, with interest helping only a little.

Note that the special case i rel to pay =0 = i real means that we instead sum the geometric series by

noting that we have p or w identical terms and hence z prop = p/(w+p). This corresponds to our

graph above with the straight line real-terms accumulation.

Life after retirement

Retirement might coincide with important life changes; a retired worker might move to a new

location, for example a retirement community, thereby having less frequent contact with their

previous social context and adopting a new lifestyle. Often retirees volunteer for charities and

other community organizations. Tourism is a common marker of retirement and for somebecomes a way of life, such as for so calledgrey nomads.
http://fisher.utstat.toronto.edu/sharp/WebEdv01.htmhttp://en.wikipedia.org/wiki/Retirement_communityhttp://en.wikipedia.org/wiki/Volunteerhttp://en.wikipedia.org/wiki/Volunteerhttp://en.wikipedia.org/wiki/Tourismhttp://en.wikipedia.org/wiki/Tourism#Grey_nomadshttp://en.wikipedia.org/wiki/Tourism#Grey_nomadshttp://en.wikipedia.org/wiki/Tourism#Grey_nomadshttp://fisher.utstat.toronto.edu/sharp/WebEdv01.htmhttp://en.wikipedia.org/wiki/Retirement_communityhttp://en.wikipedia.org/wiki/Volunteerhttp://en.wikipedia.org/wiki/Tourismhttp://en.wikipedia.org/wiki/Tourism#Grey_nomads


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Often retirees are called upon to care forgrandchildren and occasionally aged parents. For many

it gives them more time to devote to a hobbyorsport such asgolforsailing. On the other hand,

many retirees feel restless and suffer from depression as a result of their new situation. Eitherbecause of the sudden increase in free time, or because of a decline in their personal health, the

newly retired are one of the most vulnerable societal groups when it comes to depression.

Many people in the later years of their lives, due to failing health, require assistance, the highest

degree of assistance in some countries being provided in a nursing home. Those who needcare, but are not in need of constant assistance, may choose to live in a retirement home.
http://en.wikipedia.org/wiki/Grandchildrenhttp://en.wikipedia.org/wiki/Hobbyhttp://en.wikipedia.org/wiki/Hobbyhttp://en.wikipedia.org/wiki/Sporthttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Sailinghttp://en.wikipedia.org/wiki/Nursing_homehttp://en.wikipedia.org/wiki/Nursing_homehttp://en.wikipedia.org/wiki/Retirement_homehttp://en.wikipedia.org/wiki/Grandchildrenhttp://en.wikipedia.org/wiki/Hobbyhttp://en.wikipedia.org/wiki/Sporthttp://en.wikipedia.org/wiki/Golfhttp://en.wikipedia.org/wiki/Sailinghttp://en.wikipedia.org/wiki/Nursing_homehttp://en.wikipedia.org/wiki/Retirement_home

manpower planning and resourcing

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