Human Resource Management

1) HR supply forecasting is the process of estimating the number of resources and kind of
employees required to carry out a job.
HR Supply forecasting helps an organization in:
 identifying the number of personnel and position expected to be available in
future.
 examining current staffing level in different parts of the organization
 balancing the requirements of human resources, where and when needed

HR demand forecasting techniques are broadly categorized into two

parts:-

Techniques
of HR
Demand
Forecasting

Qualitative Quantitative
Methods Methods

1)Qualitative Method- Qualitative methods are less statistical in nature as

compared to quantitative methods. This method takes into considerations
skills, potential levels, and interests of all employees to meet the future
HR needs of an organization.
 Qualitative methods can be further divided into:-

Qualitative
Methods

Expert Management Delphi

Forecasts Forecasts Technique

 Expert forecasts: HR professionals occasionally seek advice from professional HR

experts about their organizations’ future hiring needs. These experts forecast an
organization’s human resource requirements, skills required to meet organizational goals
and objectives, experience required, etc. Here, it should be noted that these HR experts
can be internal or external to an organization.
 Management forecasts: This is an internal HR demand forecasting method. Managers
from various departments, along with other qualified people, are responsible for
identifying human resource requirements in organizations. They decide the number of
employees to be hired, skills required, etc.
 Delphi technique: This is one of the most effective methods of forecasting human
resource demand. A group of pre-selected experts is responsible for forecasting demand.
These experts make recommendations on human resource needs. The responses given by
these experts are summarized and a report is prepared. This procedure is repeated until all
experts have reached an agreement on the estimated human resource requirements. The
Delphi method seeks to eliminate subjectivity in predicting and is well suited to
organizations where frequent technical developments have a significant impact on
workforce requirements.
2) Quantitative Method – Quantitative methods provide complete and precise HR
demand forecasts in comparison to qualitative forecast. This is because quantitative
methods are based on various statistical and mathematical tools. These are some of the
most commonly used quantitative methods:
 Trend analysis method- It assumes that past employee movement trends in an
organization are steady and predict future employee movement trends. This analysis is
based on information related to employee trends, such as trends of hiring, retirements,
productivity, turnover, etc. HR personnel determine the future trends by analyzing the
past trends.
i) First, a suitable business component is chosen, based on which HR requirements
are evaluated. An example of a business factor can be sales or value addition.
Based on the sales target, an organization determines its HR requirements.
 ii) A historical trend of the business factor is plotted with respect to the number of
employees. From this, a labor productivity ratio can be established, i.e., sales per
employee, which can be estimated by determining the ratio of total number of
employees to total sales.
iii) The present labor productivity ratio is compared to the previous five-year ratios,
and any discrepancies or changes are noted.
iv) HR demand is estimated by dividing total sales (business factor) by the labor
productivity ratio in this phase.
v) Finally, HR demand for the target year is forecasted.

 Ratio Trend analysis method: This is a method used to forecast HR demand based on
the ratio of production level and the availability of workers. It forecasts future ratios by
taking into account recent ratios.
Example.
Last year the estimated production of an organization the last year was 180000 units
carried out by 600 employees. If the estimated pro- duction the next year is 210000 units,
calculate the estimated number of employees needed in the organization

Solution: Ratio of production to number of employees = 600:180000, i.e., 1:300

This depicts that on an average, 1 employee is needed to produce 300 units per year.
Let us assume the estimated number of employees needed in the organization to be ‘d’
Therefore, based on the ratio-trend of 1:300, ‘d’ can be calculated as:
1:300 = d:210000 i.e., d = 700
Hence, the estimated number of employees needed in the organization is 700.

Work study method: This method, also called work-load analysis, is used to assess total
production, and predict activities for a certain period in the future. This method, also
called work-load analysis, is used to estimate total production and predict activities for a
certain period in the future. This method is applied when the workload is easily
measurable. This method involves assessing human resource capabilities and turning
workload into the number of man hours needed to produce each unit. It helps to forecast
HR demand through estimated total production and each employee’s contribution in
producing per unit item.

Factor Affecting HR Demand Forecasting: It is affected by two major factors.

Factors Affecting
HR Demand Forecasting

External Business Internal Business

Environment Environment
 External business environment:- These are social, political, economic forces. For
example, rapid technological changes lead to increase in demand of skilled employees.
As organizations demand is ever changing so HR forecast should be flexible.

 Internal business environment: It comprises the internal strengths and weaknesses of

organizations. For example, Fortis Healthcare has recently performed high-level expert
HRP to forecast its future staffing needs by analyzing changes in operations, technology
and financial level.

Induction
Induction program establishes the groundwork for a good employee-employer
relationship. This makes the new employees to be prepared for their contribution towards
company's growth and development.

The requirement for induction can be understood from:-

Organization’s perspective:- Need for induction from organizations perspective are

following:-
 Reduces start-up cost: Introduction helps new employees become acquainted
with the organization’s vision goal and expectations.
 Reduces employee turnover: Employees tend to leave if they are not
comfortable in the organization or find it difficult to have a balance. A well-
designed induction program intends to inform employees that they are valued by
the organization. It also makes employees aware of career growth opportunities
possible for them in the organization. This induces a sense of be- longingness in
employees; thereby reducing employee turnover.
 Saves time for supervision: The induction program educates employees about
numerous vital parts of the organization saves supervisors and managers a lot of
time in training them. Furthermore, employees can better coordinate their tasks.
Employee’s perspective: Need for induction from employee’s perspective are following:-

 Reduces anxiety: An induction program not just introduces employees to the

organization’s functioning but also addresses their concerns regarding the
organization. It is done by creating a pleasant and positive impression of the
organization on employees on the first day of their job.
 Increases job satisfaction: An induction program educates employees about the
organization's policies regarding work hours, leaves, benefits, and the code of
conduct. This creates a positive and realistic impression of an organization in the
minds of employees, increasing job satisfaction.
Process of Induction
 Induction is a systematic process that aims to educate employees on every aspect of
the organization that they need to know in order to perform their jobs effectively.
Depending on the needs of the organization, the induction process varies. However,
certain steps are universal in the induction process of all organizations.
Following are steps of induction:-

Step 1
Collecting Step 2
employee
information Identifying the Step 3
bjectives of the Step 4
induction program Defining the
audience Deciding the Step 5
content and mode
Providing feedback
of delivery

1) Collecting employee information: This is the first step in the induction process, when
employees' information such as their name, contact information, location, and the
department or division in question is recorded. Generally, the employee's entire
information is obtained from a variety of sources, including application blanks, resumes,
job portals, etc.
2) Identifying the objectives of the induction program: It's important that an induction
program has defined objectives so that it can serve its purpose better. HR personnel might
seek comments from department heads and other concerned senior workers to design the
induction program's objectives and understand their needs and expectations from new
employees. This assists HR personnel in determining what content should be included in
the induction programme.
3) Defining the audience: HR personnel must be aware of the target audience for whom the
induction programme is conducted. For example, new employees can be recent grads or
seasoned executives. For instance, it's important to discover the differences and
similarities among the groups of new employees so that the induction program can be
planned accordingly.
4) Deciding the content and mode of delivery: The content and the mode of delivery is
determined based on the objectives of the induction program and the target audience. The
program may be formal or informal, stable or variable, group or individual focused, or
sequential or non-sequential. Depending on the requirements and resources, the HR
personnel can select from a variety of delivery modes, such as face-to-face interaction
with each employee, classroom sessions, e-learning sessions for multiple audience at
various centers, off-site sessions, etc.
5) Providing feedback: In this step, the HR personnel seek feedback from the audience in
order to determine the effectiveness of the induction program. The feedback helps the HR
personnel in keeping an updated content for the induction program for every session.
Furthermore, it enables employees to identify and discover the areas for improvement. It
is often recommended that feedback be obtained twice: first at the conclusion of the
programme and again after 90 days of employment, when individuals have been on the
job for some time.

Induction at Mahindra and Mahindra

Induction program are no longer the same as they used to be since corporations are
embracing innovative methods of inducting their new hires. Corporates are coming with
new induction ideas and methodologies. As part of their induction programme, Mahindra
and Mahindra took more than 25 of its new recruits to see the 'Bharat Darshan.' The
trainees went to the MVML Pune Factory in Chakan, Mahindra retail in Bangalore,
Mahindra Satyam in Hyderabad, M&M Development Centre in Nasik, Mahindra
Holidays in Chennai, and Club Mahindra Resort in Pondicherry to learn more about the
company. The trainees also had the opportunity to speak with Anand Mahindra,
Mahindra and Mahindra's Vice-Chairman and Managing Director. The trainees who had
undergone the induction program felt it as an eye-opener for them about the organization.
They were able to recognize and understand the similarities and differences among the
group and counterparts and the work culture at different locations of the company. The
employees felt that they couldn’t have understood these facts sitting and working in the
office of their joining location. After visiting different locations, employees were able to
know the communication network of the organization, how the centralization and
decentralization of decision making is done and how the organization is able to provide
multiple growth options to its employees.

Merits and Demerits of Induction

Employees would have to learn about the operation of an organization on their own if the
induction program is not effective.
Merits of induction program:-
 An effective induction program helps employees to get comfortable with the
organization, further reducing the turnover rate.
 An induction program provides employees with an opportunity to know and
connect with fellow employees.
 It also helps wins loyalty and commitment of employees towards the organization.
Demerits of Induction program:-
 If an employee leaves the organization, the time, money, and efforts spent on
the induction process is wasted
 Sometimes an induction programme provides employees with too much
information that’s not require.
 Employees may not have a clear knowledge of how an organization operates if
an induction programme is not designed properly which might demotivate the
employee.
3) Sometimes people go through a phase where they feel overwhelmed by their job or
career. Usually in such situation people fail to plan the modifications they need to make
for their job growth and development.
However, there are various factors that influence career planning like:-
Skills and abilities: An individual's skills and abilities play a significant part in his or her
career planning. The chosen education and training programme must correspond to an
individual's actual talents and abilities. A mismatch between the two could lead to poor
job decisions.
Values and interests: One's areas of interest have a significant impact on career
planning. Different people have different areas of interest in which they seek job. Some
people prioritize salary, while others prioritize job profile or work-life balance. Any
misalignment of interests and job alternatives has a significant impact on the career
planning process.
Salary expectations: People have certain expectations regarding their income. For some
people, compensation is a determining element when it comes to choosing a career path,
while for others, it is just one of many considerations. Thus, income expectations must be
addressed in career planning.
Career planning is a continuous activity that does not end once an individual begins
working. Individuals assess their professions in terms of scope and future requirements
after they begin working. Individuals may feel the need to change careers at times.

Process of Career Planning: Career planning is a lifelong process in which people seek
out new chances for professional advancement. The length of career planning is unknown
and varies from person to person. It may only happen once in a lifetime for some people,
while others may continually redefine their aims and ambitions as they acquire
experience. The career planning process is broken into several parts. Some of them are:-
1) Performing self-assessment: Collecting information about one's interests,
personality type, attributes, preferred environment, aptitudes, developmental
needs, and so on. The goal of gathering this data is to determine which
employment possibilities are best for each individual. Individuals can lack clarity
regarding their aspirations, goals, and objectives. They seek assistance from
persons in their immediate environment, such as parents, teachers and career
planning professionals.
2) Identifying career choices and preferences: Using the information gathered, a
number of professional alternatives are explored for individuals, with relevant
data collected for each option. This information pertains to the education and
training required for a particular profession, as well as the future scope, salary
offered, tasks and responsibilities involved etc. Individuals can identify various
career options and make decisions based on their needs.
 3) Aligning needs and opportunities: Individual needs are aligned with
professional prospects studied in the previous phase, allowing individuals to
choose the best career options. This is accomplished by weighing both short- and
long-term options and exploring professional options.
4) Formulating an action plan: Individuals must put their professional plans into
action and move forward with their career goals and objectives. Career planning
is a circular process, which means that people may need to start from the
beginning of their careers or may need to redefine their career goals and
objectives at some point.
5) Evaluating the process: In the final step it ensures that individuals are moving on
the correct track. This enables individuals to assess whether their chosen vocation
is guiding them toward growth and development and, if not, to take corrective
action.

Ans 3b) Q.3(b)Pg no. 211,212 (9.4.1),213 (9.4.2)

Q3 b) The first step to an effective succession planning is ensuring that the objectives are correctly
established. Describe the goals of succession planning that the HR manager should bear in mind.

The process of finding a successor for key roles in an organization is known as succession
planning. Its goal is to discover and develop existing employees who have the potential to fill
important positions within the company.
Objective of succession planning
Succession planning assists a company in identifying successors for key positions. Succession
planning should not just focus on replacements, but also on providing opportunities to the
existing employees to advance in their careers. Some of the goals of succession planning are as
follows:
 To identify critical roles inside the organization and assess the talents and abilities of
people who would be qualified to fill them.
 To create immediate back-up plans for filling short-term vacancies.
 To respond quickly to organizational changes that may occur in the future.
 Employees will be developed through extensive training and performance management
program.
 To help individuals advance and develop their careers inside the organization.
Process of succession planning
Succession planning is a method of identifying potential employees who can fill a certain job
role in the future.
 Identifying Key Developing
Positions Identifying the Succession
Talent Pool Strategies

Evaluating Implementing
the Plan Succession
Strategies

1. Identifying key positions: In this step, key positions in an organization that will be filled
in the future are identified. For this, the structure of an organization is considered in order
to compare current and future vacancies. General managers, presidents, directors, and
CEOs are examples of key positions that are strategic and operationally important to an
organization.
2. 2. Identifying the talent pool: Once the organization's critical positions have been defined,
a need analysis is conducted to identify a pool of possible personnel. This step examines
current employees' knowledge, skills, and competencies in light of the job for which a
replacement is needed. This is accomplished through the execution of two primary
activities: workforce skill analysis and job analysis. Determine the skills and abilities that
will be required in the future for critical positions through workforce skill analysis. Job
analysis, on the other hand, helps in the identification of qualified workers who can be
trained and prepared for crucial roles.
3. Developing succession plans: This process includes formulating and deciding on various
strategies for developing and preparing successors. Some examples of these tactics are
planned job assignments, coaching and mentoring, and numerous initiatives relating to
quality of work life. Majority of these initiatives are developed and implemented by the
organization's HR department, with active participation from top management. These
strategies are designed in such a way that they may accommodate both organizational and
employee development.
4. Implementing succession plans into action: This step involves implementing the
succession plans into action so that personnel can be taught to build the skills needed for
critical positions in the future. After then, a timeline is set for when a successor will be
ready to take on the new challenge.
5. Evaluate the plan: This is the most critical and final step in the succession planning
process. In this succession planning strategies are evaluated to see if they produce the
desired results. This can be accomplished through soliciting input from employees and
upper management, as well as monitoring successor performance.
Succession planning helps in the development of a pool of skilled and experienced
employees inside a company.