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Module 2 - HCM
Module 2 - HCM
Mohammed Natiq R
Asst. Prof. DBIMSCA
2
MODULE 2: Human Capital Planning and Employee Hiring
Job Design
Job analysis methods can vary, including interviews with incumbents and
supervisors, direct observation of job tasks, analysis of job-related documents,
and questionnaires or surveys. The information gathered through job analysis
serves as a foundation for various HR functions and organizational processes,
ensuring that jobs are well-defined, aligned with organizational objectives, and
effectively managed.
Job design refers to the process of structuring and organizing the tasks,
responsibilities, and interactions within a job or a group of jobs. It involves
determining how the work should be performed, what tasks should be included,
and how they should be organized to achieve specific goals and objectives.
Effective job design takes into account various factors such as the nature of the
work, the skills and abilities of the employees, the organization's goals and
strategies, and the overall work environment. It aims to create jobs that are
meaningful, engaging, and efficient, leading to higher job satisfaction,
productivity, and employee well-being.
Here are some key considerations and approaches in job design:
Job Simplification: This approach involves breaking down complex tasks
into simpler and more specialized tasks. It focuses on increasing efficiency
and productivity by assigning repetitive and routine tasks to employees,
allowing them to become highly skilled in performing those specific tasks.
Job Enlargement: Job enlargement aims to reduce monotony and increase
motivation by adding more variety to a job. It involves expanding the scope
of the job by adding additional tasks and responsibilities at a similar skill
level. This provides employees with a wider range of activities to perform
and can enhance job satisfaction.
Job Enrichment: Job enrichment involves enhancing a job by adding
more meaningful and challenging tasks that require higher skill levels. It
aims to provide employees with a sense of autonomy, responsibility, and
Mohammed Natiq R
Asst. Prof. DBIMSCA
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MODULE 2: Human Capital Planning and Employee Hiring
Job evaluation
Job evaluation is the process of systematically assessing the relative value or
worth of different jobs within an organization. It is typically conducted to
establish a fair and equitable pay structure based on the responsibilities, skills,
and requirements of each job.
The main objectives of job evaluation are:
Internal equity: Job evaluation helps determine the relative worth of
different jobs within an organization. It ensures that similar jobs are
Mohammed Natiq R
Asst. Prof. DBIMSCA
4
MODULE 2: Human Capital Planning and Employee Hiring
Demand forecasting
Demand forecasting is the process of estimating future customer demand for a
product or service. It involves analyzing historical data, market trends, and other
relevant factors to make predictions about future sales or demand levels. Effective
demand forecasting helps organizations make informed decisions regarding
production, inventory management, resource allocation, and overall business
planning.
Here are the key steps involved in demand forecasting:
Data collection: The first step is to gather relevant data on past sales,
customer behavior, market trends, and any other factors that may influence
demand. This data can be obtained from internal sources such as sales
records, customer surveys, and CRM systems, as well as external sources
like market research reports and industry publications.
Data analysis: Once the data is collected, it needs to be analysed to identify
patterns, trends, and relationships. Statistical techniques such as time series
analysis, regression analysis, and predictive modelling can be used to
uncover insights and correlations within the data.
Selection of forecasting method: Based on the nature of the data and the
characteristics of the demand pattern, an appropriate forecasting method is
selected. Common methods include moving averages, exponential
smoothing, trend analysis, seasonality analysis, and causal forecasting. The
chosen method should align with the available data and the specific needs
of the organization.
Mohammed Natiq R
Asst. Prof. DBIMSCA
6
MODULE 2: Human Capital Planning and Employee Hiring
HR supply forecasting
HR supply forecasting is the process of estimating the availability of qualified
and competent human resources to meet an organization's future workforce
needs. It involves analyzing internal and external factors to determine the
potential supply of talent and identify any gaps or surpluses in the workforce. HR
supply forecasting is essential for effective human resource planning and ensures
that the organization has the right people with the right skills at the right time.
Here are the key steps involved in HR supply forecasting:
Internal analysis: The first step is to assess the current workforce within
the organization. This includes analyzing employee demographics, skills,
competencies, performance levels, career development plans, and
succession planning initiatives. By understanding the internal talent pool,
HR professionals can identify potential sources of supply for future
positions.
External analysis: HR professionals need to examine the external labor
market to determine the availability of talent. This involves considering
factors such as population demographics, labor force trends, education and
training programs, industry-specific talent pools, and prevailing market
conditions. External analysis helps in assessing the talent pool from which
the organization can potentially hire or attract candidates.
Mohammed Natiq R
Asst. Prof. DBIMSCA
7
MODULE 2: Human Capital Planning and Employee Hiring
The need for Human Resource Planning (HRP) arises from the recognition that
an organization's success is heavily dependent on its ability to acquire, develop,
and retain the right talent. HRP serves as a strategic tool for aligning the
organization's human resource capabilities with its overall business goals and
objectives. Here are some key factors that highlight the need for HRP:
Changing business environment: The business landscape is constantly
evolving due to factors such as technological advancements, economic
conditions, globalization, and shifting market trends. HRP helps
organizations anticipate and respond to these changes by ensuring they
have the necessary human resources to adapt and remain competitive.
Talent shortages and skill gaps: Many industries face challenges in finding
and retaining skilled workers. HRP enables organizations to identify
Mohammed Natiq R
Asst. Prof. DBIMSCA
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MODULE 2: Human Capital Planning and Employee Hiring
current and future skill gaps, allowing them to implement strategies for
talent acquisition, training, and development to bridge those gaps and
ensure a competent workforce.
Workforce diversity and inclusion: Organizations recognize the value of a
diverse and inclusive workforce. HRP helps in identifying and promoting
diversity initiatives, ensuring that the organization has the right mix of
talent to meet the needs of a diverse customer base and leverage different
perspectives and ideas.
Technological advancements: Technological advancements often disrupt
industries and change the nature of work. HRP enables organizations to
assess the impact of technology on their workforce and plan for reskilling,
upskilling, or redeployment of employees to leverage new technologies
effectively.
Succession planning and leadership development: HRP is crucial for
identifying and developing future leaders within the organization. It
ensures a smooth transition of key roles and responsibilities by identifying
high-potential employees, providing them with appropriate development
opportunities, and creating succession plans to mitigate leadership gaps.
Cost optimization: HRP helps organizations optimize their human resource
costs by aligning workforce size and composition with business needs. It
enables efficient workforce utilization, prevents overstaffing or
understaffing, and minimizes recruitment and training costs.
Factors that influence HRP include:
o Organizational strategy: HRP should be aligned with the
organization's strategic goals and objectives. The workforce
planning process should support the overall business strategy and
address the talent requirements to achieve those objectives.
o External environment: Factors such as market conditions, industry
trends, labor market dynamics, and regulatory changes impact HRP.
Organizations need to consider these external factors to assess the
availability of talent and adjust their strategies accordingly.
o Internal factors: Internal factors include organizational structure,
growth projections, budget constraints, technological capabilities,
and the current workforce's skills and competencies. These factors
influence the organization's capacity to meet future talent
requirements.
Mohammed Natiq R
Asst. Prof. DBIMSCA
9
MODULE 2: Human Capital Planning and Employee Hiring
Career Planning
Career planning refers to the process of setting and managing one's career goals,
aspirations, and development. It involves assessing personal interests, skills,
values, and goals to make informed decisions about career choices and creating a
roadmap for professional growth and advancement. Career planning is an
ongoing process that helps individuals navigate their career path, make effective
career-related decisions, and achieve long-term success and satisfaction.
Here are some key steps and considerations in career planning:
Self-assessment: Start by assessing your interests, values, strengths, and
weaknesses. Reflect on your passions, what motivates you, and what you
enjoy doing. Consider your skills, talents, and areas where you excel. Self-
assessment helps in understanding your unique abilities and what aligns
with your personal and professional goals.
Explore career options: Research and explore various career paths and
occupations that align with your interests, skills, and values. Consider the
job market, industry trends, and growth opportunities in different fields.
Talk to professionals in those fields, attend career fairs, and use online
resources to gather information and gain insights into different career
options.
Set career goals: Based on your self-assessment and exploration, set clear
and achievable short-term and long-term career goals. These goals can be
related to job titles, positions, salary, skills development, or personal
Mohammed Natiq R
Asst. Prof. DBIMSCA
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MODULE 2: Human Capital Planning and Employee Hiring
Promotion
Promotion refers to the advancement of an employee to a higher position or role
within an organization. It is a recognition of an individual's performance, skills,
and potential, and it comes with increased responsibilities, authority, and often
higher compensation. Promotions can be based on various factors, including
merit, seniority, competency, and organizational needs. Here are some key
aspects related to promotions:
Mohammed Natiq R
Asst. Prof. DBIMSCA
11
MODULE 2: Human Capital Planning and Employee Hiring
Mohammed Natiq R
Asst. Prof. DBIMSCA
12
MODULE 2: Human Capital Planning and Employee Hiring
Transfer
A transfer refers to the movement of an employee from one position, department,
location, or branch of an organization to another. Transfers can occur within the
same job level or across different levels, and they can be temporary or permanent.
Transfers are typically initiated by the organization to meet operational needs,
facilitate employee development, or address staffing requirements. Here are some
key aspects related to transfers:
Organizational needs: Transfers are often driven by organizational needs,
such as filling vacancies, balancing workload, or optimizing resources.
When an organization identifies a need to reassign employees to different
positions or locations, transfers may be implemented to ensure the smooth
functioning of the business.
Employee development: Transfers can be used as a developmental tool to
broaden an employee's skills and knowledge. By moving employees to
different roles or departments, organizations provide opportunities for
learning new job functions, gaining exposure to different areas of the
business, and acquiring a diverse set of experiences.
Career advancement: Transfers can support career advancement by
providing employees with opportunities to take on more challenging roles,
work in different functional areas, or move to higher-level positions. For
example, a lateral transfer to a different department may be a stepping stone
to a promotion in the future.
Mohammed Natiq R
Asst. Prof. DBIMSCA
13
MODULE 2: Human Capital Planning and Employee Hiring
Mohammed Natiq R
Asst. Prof. DBIMSCA
16
MODULE 2: Human Capital Planning and Employee Hiring
Mohammed Natiq R
Asst. Prof. DBIMSCA
17
MODULE 2: Human Capital Planning and Employee Hiring
When it comes to sourcing candidates for job vacancies, organizations can utilize
both internal and external sources of recruitment. Let's explore each of these
sources:
Internal Sources of Recruitment: Internal sources involve considering
existing employees within the organization for job vacancies. Some
common internal sources of recruitment include:
o Internal job postings: Organizations can post job openings
internally, allowing current employees to apply for positions of
interest. This can be done through company intranets, email
notifications, or bulletin boards.
o Employee referrals: Existing employees can refer qualified
candidates for open positions. Employee referral programs
incentivize employees to recommend potential candidates from their
professional networks.
o Internal transfers and promotions: When suitable candidates are
identified within the organization, they can be considered for
transfers or promotions to fill vacant positions. This helps in
employee development and encourages career growth opportunities.
o Talent management programs: Organizations that have talent
management programs in place often identify high-potential
employees and groom them for future positions. This can involve
mentoring, coaching, and providing specialized training to prepare
them for leadership roles.
Internal sourcing offers several advantages, including reduced recruitment costs,
increased employee morale and loyalty, faster onboarding, and leveraging
existing knowledge and experience within the organization.
External Sources of Recruitment: External sources involve attracting
candidates from outside the organization. Here are some common external
sources of recruitment:
Mohammed Natiq R
Asst. Prof. DBIMSCA
18
MODULE 2: Human Capital Planning and Employee Hiring
o Online job portals and career websites: Organizations can post job
openings on popular job portals, career websites, and professional
networking platforms to reach a wide pool of potential candidates.
These platforms allow candidates to submit their resumes and apply
directly for relevant positions.
o Social media recruitment: Social media platforms like LinkedIn,
Facebook, and Twitter provide opportunities to connect with
potential candidates. Organizations can share job postings, engage
with professionals, and actively search for qualified candidates
through these channels.
o Recruitment agencies and head-hunters: Organizations can partner
with recruitment agencies and head hunters who specialize in
finding suitable candidates for specific roles. These agencies
leverage their networks and expertise to source qualified candidates.
o Job fairs and career events: Participating in job fairs, career expos,
and industry-specific events provides organizations with an
opportunity to meet potential candidates face-to-face, share
information about job openings, and actively engage with job
seekers.
o Campus recruitment: Organizations often visit educational
institutions such as universities and colleges to recruit fresh
graduates. Campus recruitment programs allow companies to
identify and attract young talent with relevant skills and knowledge.
External sourcing widens the candidate pool, brings in fresh perspectives and
ideas, and introduces new talent to the organization. However, it may involve
higher recruitment costs and a longer onboarding process compared to internal
sourcing.
Employee selection is the process of assessing and choosing the most qualified
candidates for a job vacancy within an organization. It involves a series of steps
and methods to evaluate applicants and make informed decisions regarding their
suitability for the position. Here is an overview of the typical process of employee
selection:
Application screening: The selection process often begins with screening
the applications received from candidates. This initial step involves
Mohammed Natiq R
Asst. Prof. DBIMSCA
19
MODULE 2: Human Capital Planning and Employee Hiring
Mohammed Natiq R
Asst. Prof. DBIMSCA
20
MODULE 2: Human Capital Planning and Employee Hiring
Mohammed Natiq R
Asst. Prof. DBIMSCA