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Human Resource 2
Human Resource 2
10. Last but no means the least, with increase in skill, knowledge,
potentialities, productivity and job satisfaction, organisation becomes
the main beneficiary. Organisation is benefitted in terms of increase in
prosperity/production, growth, development, profit and, thus, an edge
over its competitors in the market.
Environmental Scanning:
It refers to the systematic monitoring of the external forces influencing the
organization. The following forces are essential for pertinent HRP.
Economic factors, including general and regional conditions. Technological
changes
Demographic changes including age, composition and literacy,
Political and legislative issues, including laws and administrative rulings
Social concerns, including child care, educational facilities and priorities.
By scanning the environment for changes that will affect an organization,
managers can anticipate their impact and make adjustments early.
Organizational Objectives and Policies: HR plan is usually derived from the
organizational objectives. Specific requirements in terms of number and
characteristics of employees should be derived from organizational objectives
Once the organizational objectives are specified, communicated and understood
by all concerned, the HR department must specify its objective with regard to HR
utilization in the organization.
HR Demand Forecast:
Demand forecasting is the process of estimating the future quantity and quality of
people required to meet the future needs of the organization. Annual budget and
long-term corporate plan when translated into activity into activity form the basis
for HR forecast.
For eg: in the case of a manufacturing company, the sales budget will form the
basis for production plan giving the number and type of products to be produced
in each period. This will form the basis uponwhich the organization will decide
the number of hours to be worked by each skilled category of workers. Once the
number hours required is available organization can determine the quality and
quantity of personnel required for the task.
Demand forecasting is influenced by both internal factors and external factors:
external factors include-competition, economic climate, laws and regulatory
bodies, changes in technology and social factors whereas internal factors are
budget constraints, production level, new products and services, organizational
structure and employee separations.
Demand forecasting is essential because it helps the organization to 1. Quantify
the jobs, necessary for producing a given number of goods, 2. To determine the
nature of staff mix required in the future, 3. To assess appropriate levels in
different parts of organization so as to avoid unnecessary costs to theorganization,
4. To prevent shortages of personnel where and when, they are needed by the
organization. 5. To monitor compliances with legal requirements with regard to
reservation of jobs.
Techniques like managerial judgment, ratio- trend analysis, regression analysis,
work study techniques, Delphi techniques are some of the major methods used by
the organization for demand forecasting.
HR Supply Forecast:
Supply forecast determines whether the HR department will be able to procure the
required number of workers. Supply forecast measures the number of people
likely to be available from within and outside an organization, after making
allowance for absenteeism, internal movements and promotions, wastage and
changes in hours, and other conditions of work.
Supply forecast is required because it is needed as it 1. Helps to quantify the
number of people and positions expected to be available in future to help the
organization realize its plans and meet its objectives 2. Helps to clarify the staff
mixes that will arise in future 3. It assesses existing staffing in different parts of
the organization. 4. It will enable the organization to prevent shortage of people
where and when they are most needed. 5. It also helps to monitor future
compliance with legal requirements of job reservations.
Supply analysis covers the existing human resources, internal sources of supply
and external sources of supply.
HR Programming:
Once an organization‘spersonnel demand and supply are forecasted the demand
and supply need to be balanced in order that the vacancies can be filled by the
right employees at the right time.
HR Plan Implementation:
HR implementation requires converting an HR plan into action. A series of action
are initiated as a part of HR plan implementation. Programmes such as recruitment,
selection and placement, training and development, retraining and redeployment,
retention plan, succession plan etc when clubbed together form the implementation
part of the HR plan.
Control and Evaluation:
Control and evaluation represent the final phase of the HRP process. All HR plan
include budgets, targets and standards. The achievement of the organization will
be evaluated and monitored against the plan. During this final phase organization
will be evaluating on the number of people employed against the established (both
those who are in the post and those who are in pipe line) and on the number
recruited against the recruitment targets. Evaluation is also done with respect to
employment cost against the budget and wastage accrued so that corrective action
can be taken in future.
6. Data collection, analysis, techniques of planning and the plan themselves need to
be constantly revised and improved in the light of experience.
Limiting Factors / Barriers of Human Resource Planning
Manpower planning involves forecasting the demand and supply of human resources. Thus, the effectiveness
of planning depends upon the accuracy of forecasts. If the forecasts are not cent per cent accurate, planning
will not be hundred per cent accurate.
Identify Crisis:
Many human resource specialists and the managers do not understand the whole manpower planning process.
Because of this, there is generally an identity crisis. Till the specialists develop a strong sense of purpose,
planning cannot be effective.
Support of Top Management:
Employees and trade unions resist manpower planning. They feel that the planning increases their overall
workload and regulates them through productivity bargaining. They also feel that it would lead to widespread
unemployment, especially of unskilled labor.
Uncertainties:
It is risky, to depend upon general estimates of manpower, in the face of rapid changes in the environment.
Absenteeism, turnover, seasonal employment, technological changes and market fluctuations are the
uncertainties, which serve as a constraints to manpower planning. Although discounts are made for these
factors, while preparing the plan, but these factors cannot be estimated correctly.,
Unbalanced Approach:
Many human resource experts give more importance on the quantitative aspect of manpower, to ensure that
there is adequate flow of people in and out of the organization. They overlook the qualitative aspects like
career development and planning, skill levels, morale, etc. are overlooked by them. Such unbalanced approach
affects the effectiveness of manpower planning.
Thus, manpower planning suffers from two types of problems. One is inherent because of problems of
forecasting and second comes from human weaknesses.
1. Recruitment is the first part of the employment phase, which is looking and collecting more
than one applicant, the second part of the employment phase is selection which start to look for
applicants and evaluate them.
2. The goal of Recruitment is to create the differentiation and creativity applicants to give the
organization more options. The main goal for selection is to choose the best one to fill the position.
3. Since recruitment searching for more employees to apply for a position, it is consider as a
positive process, and the negative process will be in selection since is reducing the applicants to one
for each position.
4. The source of human resources is most important part to recruitment, but in selection the
most important part is choosing the person via interviews or through tests.
5. There no contract between applicant and organization in recruitment process, but there is an
signing a contract between an applicant and organization.
Recruitment Process
The five steps involved in recruitment process are as follows: (i)
Recruitment Planning (ii) Strategy Development (iii) Searching (iv)
Screening (v) Evaluation and Control.
1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here,
planning involves to draft a comprehensive job specification for the
vacant position, outlining its major and minor responsibilities; the
skills, experience and qualifications needed; grade and level of pay;
starting date; whether temporary or permanent; and mention of
special conditions, if any, attached to the job to be filled ”
2. Strategy Development:
Once it is known how many with what qualifications of candidates are
required, the next step involved in this regard is to devise a suitable
strategy for recruiting the candidates in the organisation.
3. Searching:
This step involves attracting job seekers to the organisation. There are
broadly two sources used to attract candidates.
These are:
1. Internal Sources, and
2. External Sources
4. Screening:
Though some view screening as the starting point of selection, we have
considered it as an integral part of recruitment. The reason being the
selection process starts only after the applications have been screened
and shortlisted. Let it be exemplified with an example.
2. Retirements:
The retired employees may be given the extension in their service in
case of non-availability of suitable candidates for the post.
3. Former employees:
Former employees who had performed well during their tenure may
be called back, and higher wages and incentives can be paid to them.
4. Transfer:
Employees may be transferred from one department to another
wherever the post becomes vacant.
5. Internal advertisement:
The existing employees may be interested in taking up the vacant jobs.
As they are working in the company since long time, they know about
the specification and description of the vacant job. For their benefit,
the advertisement within the company is circulated so that the
employees will be intimated.
2. Campus interviews:
It is the best possible method for companies to select students from
various educational institutions. It is easy and economical. The
company officials personally visit various institutes and select students
eligible for a particular post through interviews. Students get a good
opportunity to prove themselves and get selected for a good job.
3. Placement agencies:
A databank of candidates is sent to organizations for their selection
purpose and agencies get commission in return.
4. Employment exchange:
People register themselves with government employment exchanges
with their personal details. According to the needs and request of the
organization, the candidates are sent for interviews.
5. Walk in interviews:
These interviews are declared by companies on the specific day and
time and conducted for selection.
6. E-recruitment:
Various sites such as jobs.com, naukri.com, and monster.com are the
available electronic sites on which candidates upload their resume and
seek the jobs.
7. Competitors:
By offering better terms and conditions of service, the human resource
managers try to get the employees working in the competitor’s
organization.
1. Preliminary interview: the selection process generally starts with this step where
the totally unsuitable applicant is eliminated. Thus the organization is saved from the
expenses of processing the applicant through the remaining steps of selection. The
candidates who pass this step are only asked to fill the application form.
4. Employment test: after getting the interview letter and before going to the interview
there is one more step and that is the employment tests. These tests are done to check
the ability of the candidate. These tests vary from organization to organization and
change as per the need of the particular job. these tests are intelligence tests, aptitude
tests, trade tests, interest test, personality tests etc. these tests must be designed
properly otherwise they will not good indicator of one knowledge.
5. Employment interview: the candidates who qualify the above tests are called for the
employment interview. This interview is done to get more information about the
candidate, to give him the actual picture of what is required from him, to check the
communication skill of the candidate etc. for senior position post; a panel is prepared
who take the interview. At the end of interview of each candidate the members of panel
discuss about the candidate and give him the grades.
There may be direct interview or indirect interview. The interview should be conducted
in a room free from the noise and disturbance only than the candidates will be able to
speak freely and frankly.
8. Final selection: after all these steps the candidate is selected finally. He is appointed
by issuing appointment letter. Initially he is appointed on probation basis after finding his
work satisfactory he is appointed as permanent employee of the organization or
otherwise he may be terminated.
Salary Negotiations
Salary negotiation is done ahead of issuing an offer letter. This is the heart
of recruitment and selection process, wherein the actual worth of a right
candidate will be evaluated. The remuneration offered should be balanced,
acceptable and agreed by both the parties – the employer and the
employee.
A Win-Win Situation
The negotiations should be a win-win situation, where both the candidate
and the employer should benefit.
If the candidate expects and demands for a higher salary than the offered
salary, then the employer can raise the package (if the budget permits) in
the following cases −
The candidate has exceptional skills which are rare in the market.
Sometimes there is high demand for a skill and the market does not have
sufficient supply of qualified candidates to fill the gap. In such cases, the HR
team offers lucrative packages in order to attract talented professionals.
Hiring managers, most of the time, have a budget for each position and
they are under pressure to hire the right candidates without overshooting
their assigned budget.
Tips for Good Salary Negotiation
Hiring managers should keep the following points in mind while negotiating
salary with a potential candidate −
Research about the job posting well in advance and have a clear understanding
of the demand and supply of skilled professionals in the job market.
Make the candidates understand the break-up of the total package that is
offered.
Do not let the candidate know the maximum salary that can be offered.
Do not reject a candidate if his expectations are beyond the budget, rather try
to make them understand the fringe benefits that is being offered in the
package.
Training and Development
Definition: Training and Development
Training and Development is a subsystem of an organization which emphasize on the
improvement of the performance of individuals and groups. Training is an educational
process which involves the sharpening of skills, concepts, changing of attitude and gaining
more knowledge to enhance the performance of the employees. Good & efficient training of
employees helps in their skills & knowledge development, which eventually helps a
company improve.
Training is about knowing where you are in the present and after some time where will you
reach with your abilities. By training, people can learn new information, new methodology
and refresh their existing knowledge and skills. Due to this there is much improvement and
adds up the effectiveness at work. The motive behind giving the training is to create an
impact that lasts beyond the end time of the training itself and employee gets updated with
the new phenomenon. Training can be offered as skill development for individuals and
groups.
Organizational Development is a process that “strives to build the capacity to achieve and
sustain a new desired state that benefits the organization or community and the world
around them.” (From the Organizational Development Network website).
TRAINING DEVELOPMENT
OBJECTIVE: To meet the present need of an OBJECTIVE: To meet the future need of an
employee employee
Training Process
Definition: The Training Process comprises of a series of steps that needs to be followed
systematically to have an efficient training programme. The Training is a systematic activity
performed to modify the skills, attitudes and the behavior of an employee to perform a particular
job.
The needs assessment can be studied from two perspectives: Individual and
group. The individual training is designed to enhance the individual’s efficiency
when not performing adequately. And whereas the group training is intended to
inculcate the new changes in the employees due to a change in the
organization’s strategy.
Once it is decided, the time for the training is set along with the trainer who will
be conducting the training session. Also, the trainees are monitored continuously
throughout the training programme to see if it’s effective and is able to retain the
employee’s interest.
5. Evaluation of the Training Programme: After the training is done, the
employees are asked to give their feedback on the training session and whether
they felt useful or not. Through feedback, an organization can determine the
weak spots if any, and can rectify it in the next session.The evaluation of the
training programme is a must because companies invest huge amounts in these
sessions and must know it’s effectiveness in terms of money.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor
who functions as a coach in training and provides feedback to the
trainee. Sometimes the trainee may not get an opportunity to express
his ideas.
3. Job instructions:
Also known as step-by-step training in which the trainer explains the
way of doing the jobs to the trainee and in case of mistakes, corrects
the trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational problem
by discussing the problem. This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical
aspects are provided to the trainees. Usually, students from the
engineering and commerce colleges receive this type of training for a
small stipend.
2. Off-the-job Methods:
On the job training methods have their own limitations, and in order
to have the overall development of employee’s off-the-job training can
also be imparted. The methods of training which are adopted for the
development of employees away from the field of the job are known as
off-the-job methods.
2. Incident method:
Incidents are prepared on the basis of actual situations which
happened in different organizations and each employee in the training
group is asked to make decisions as if it is a real-life situation. Later
on, the entire group discusses the incident and takes decisions related
to the incident on the basis of individual and group decisions.
3. Role play:
In this case also a problem situation is simulated asking the employee
to assume the role of a particular person in the situation. The
participant interacts with other participants assuming different roles.
The whole play will be recorded and trainee gets an opportunity to
examine their own performance.
4. In-basket method:
The employees are given information about an imaginary company, its
activities and products, HR employed and all data related to the firm.
The trainee (employee under training) has to make notes, delegate
tasks and prepare schedules within a specified time. This can develop
situational judgments and quick decision making skills of employees.
5. Business games:
According to this method the trainees are divided into groups and
each group has to discuss about various activities and functions of an
imaginary organization. They will discuss and decide about various
subjects like production, promotion, pricing etc. This gives result in
co-operative decision making process.
6. Grid training:
It is a continuous and phased programme lasting for six years. It
includes phases of planning development, implementation and
evaluation. The grid takes into consideration parameters like concern
for people and concern for people.
7. Lectures:
This will be a suitable method when the numbers of trainees are quite
large. Lectures can be very much helpful in explaining the concepts
and principles very clearly, and face to face interaction is very much
possible.
8. Simulation:
Under this method an imaginary situation is created and trainees are
asked to act on it. For e.g., assuming the role of a marketing manager
solving the marketing problems or creating a new strategy etc.
9. Management education:
At present universities and management institutes gives great
emphasis on management education. For e.g., Mumbai University has
started bachelors and postgraduate degree in Management. Many
management Institutes provide not only degrees but also hands on
experience having collaboration with business concerns.
10. Conferences:
A meeting of several people to discuss any subject is called conference.
Each participant contributes by analyzing and discussing various
issues related to the topic. Everyone can express their own view point.