STAFFING

MODULE 6
 HUMAN RESOURCE MANAGEMENT(HRM)

 The quality of an organization is to a large degree determined by the quality of the people it
employs. Success for most organizations depends on finding the employees with the skills to
successfully perform the tasks required to attain the company’s strategic goals. Staffing and HRM
decisions and actions are critical to ensuring that the organization hires and keeps the right
people.
 Human resource management (HRM), or the process of finding, developing, and keeping the
right people to form a qualified workforce, is one of the most difficult and important of all
management tasks.
 Human Resource Management (HRM) is the set of organizational activities directed at attracting,
developing, and maintaining an effective workforce. HRM takes place within a complex and
ever-changing environmental context.
HUMAN RESOURCE MANAGEMENT
PROCESS/ACTIVITIES

Human Resource Planning

Identification and selection
Recruitment of competent Employees – Attracting
Competent Employees

Selection

Orientation Creating competent employees with up-to-date

skills, knowledge, and Abilities – Developing
Qualified Employees
Training & Development

Performance Management –
Performance Appraisal
Competent and high performing employees
who are capable of sustaining high
Compensation & Benefits performance over the long term are retained
– Retaining Quality Workforce

Safety & Health

 LEGAL IMPORTANCE OF HRM

A number of laws regulate various aspects of employee–employer relations, especially in the areas of equal
employment opportunity, compensation and benefits, labor relations, and occupational safety and health. Several
major ones are summarized:

• The Employees’ Compensation Act, 1923  Discrimination on the

• The Trade Unions Act, 1926
basis of:
• The Payment of Wages Act, 1936
• The Industrial Employment (Standing Orders) Act, 1946.  Age
• The Industrial Disputes Act, 1947  Disability
• The Minimum Wages Act, 1948
• The Employees’ State Insurance Act, 1948  Equal Pay &
• The Factories Act, 1948
Compensation
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Maternity Benefit Act, 1961  Pregnancy
• The Payment of Bonus Act, 1965  Race/Colour
• The Contract Labour (Regulation and Abolition) Act, 1970.
• The Payment of Gratuity Act, 1972  Religious
• The Bonded Labour System (Abolition) Act, 1976  Sex – Based
• The Equal Remuneration Act, 1976
• The Child and Adolescent Labour (Prohibition and Regulation) Act, 1986  Sexual harassment at
• The Unorganized Workers’ Social Security Act, 2008
workplace
 HUMAN RESOURCE PLANNING (HRP)

 HRP is the process of forecasting a firm’s future demand for and supply of the right
type of people in the right number.
HRP = Right people + Right Place + Right Time
 ‘Forecasting’ includes:
 the estimation of how many qualified people are necessary to carry out the assigned
activities,
 how many people will be available, and
 what must be done to ensure that personnel supply equals personnel demand at an
appropriate point in the future.
 As a part of Strategic Management, HRP is also known as Strategic Manpower
Planning or Employment Planning.
 HRP = FORECASTING a firm’s future demand for and supply of qualified
employees in the right number for the right job

Forecasting is based on both internal and external factors.

Internal factors include the following:

 Budget constraints
 Expected or trend of employee separations - Employment separation refers to the end
of an employee's working relationship with a company
 Production levels
 Sales increases or decreases
 Global expansion plans
External factors might include the following:
 Changes in technology
 Changes in laws
 Unemployment rates
 Shifts in population
 Shifts in urban, suburban, and rural areas
 Competition

Once the forecasting data are gathered and analyzed, the HR professional can see where gaps exist
and then begin to recruit individuals with the right skills, education, and backgrounds.
 IMPORTANCE OF HRP

 Future Personnel Needs: -

HRP is significant as it helps determine future personnel needs. Surplus or deficiency in
staff strength is the result of the absence of or defective planning.
 Creating Highly Talented Personnel: -
Jobs are becoming highly intellectual and more challenging. There is an increasing need
for dynamic and ambitious employees to fill the positions. Efficient HRP is needed for
attracting and retaining well qualified, highly skilled and talented employees.
Technological changes would, also, further upgrade or degrade jobs and create
manpower shortages based on skills and expertise. In these situations only accurate
human resource planning can help to meet the requirements.
 To increase investments in HR:
Another compelling importance of HRP is the investment an organization makes in its
HR, because human assets, as opposed to physical assets, can increase in value. An
employee who gradually develops his/her skills and abilities becomes a more valuable
resource. Because an organization makes investments in its personnel either through
direct training or extensive job assignments, it is important that the employees are used
effectively throughout their career.
 To tackle with the employees’ resistance to change and move:
The growing resistance among employees to change and move. There is also a growing
emphasis on self evaluation, loyalty and dedication, making it more difficult to assume
that organization can move its employees anywhere, at anytime. Here HRP becomes very
important and needs the resources to be planned carefully.
 Other Benefits
 Upper management has a better view of the HR dimensions of business
decisions.
 Personnel cost may be less because the management can anticipate imbalances
before they become unmanageable and expensive.
 More time is allocated to search for skillful talent.
 Better division of work.
HUMAN RESOURCE PLANNING
PROCESS:
STEP 1: Make HR objectives
When creating HR objectives, it's important to develop goals for the overall company and individual
departments. Department goals should reflect individual responsibilities and requirements while
contributing to the larger objectives of the business.
STEP 2: Analyze the current workforce
Analyzing the company's workforce involves reviewing the skills, experience and performance of
the current employees to determine the effectiveness of the business. During this step, it can also be
beneficial to communicate with department leaders and managers to see how they feel their team
members are performing and if they need more resources to fulfill their department's
responsibilities. It's also helpful to give employees self-assessments and questionnaires to see how
they feel about their job performance and what they might like to see from the new HR plan.
STEP 3: Determine HR supply and demand
Determining your company's HR supply and demand involves analyzing your collected data and
information on current employees, assessing the company's present needs and anticipating what
needs may arise in the future. When reviewing data, determine if your company has an employee
shortage or surplus by examining salary expenses and the quality and quantity of employees' work.
You can decide which processes can change to reflect this information.
STEP 4: Create an action plan
When creating an action plan, it's important to decide whether the company can hire more
employees, transfer or renegotiate contracts or focus on developing current employees' skills. If the
company requires more employees, it's important to determine what skills they should possess and
which departments need them most. If the company has an employee surplus, consider which
employees might approach retirement or if other company facilities could use their skills.
STEP 5: Continue to train and develop
Even after a company executes its HR plan, it should continue to train and develop its employees.
Training programs can improve occupational skills and better position employees for future
advancement. Promoting employees who already understand the business and its systems can save
the company time, money and other valuable resources.
STEP 6: Evaluate the plan
After testing the HR plan for some time, evaluate its effectiveness with feedback from employees
and managers. By examining the plan's goals and objectives, the company can determine if the plan
has helped increase productivity, boost profits and solve workforce gaps. If the company doesn't
achieve every goal, it can adjust the HR plan and find areas for improvement.
 Review of Organizational Objective

Personnel
Compare Personnel Supply
Requirements
Forecast
Forecast

No Difference
(Requirement = Difference
Supply)

Requirement < Supply Requirement > Supply

• Lay Off Hire

• Terminate
• VRS
 Motivating the Manpower: To motivate the manpower/personnel by providing
monetary and non-monetary incentives.
 Monitoring Personnel Requirement: It is because there is a constant need for
additional personnel, as some of the existing personnel do leave the organization due
to resignation, retirements etc.
 JOB ANALYSIS

Definition of JOB:
 JOB may be defined as a collection or an aggregation of tasks, duties &
responsibilities which as a whole is allocated as a regular assignment to individual
employees.
 Jobs are important to organizations because they are the vehicle through which the
organizations objectives are accomplished.
 Each Job carries certain requirements in terms of the exact type of work to perform,
minimal skills, abilities, qualifications, experience, mental ability and behavioral
skills that are essential for an individual to be employed for the job.

“Job Analysis is the process of studying and collecting information relating to the
operations and responsibilities of a specific job.” - Edwin Flippo
 JOB ANALYSIS, consists of 2 areas:
 JOB DESCRIPTION: It is an overall written summary or an outline of the main
duties and responsibilities of the role for which a prospective job applicant is
applying. It further includes:
 Job Title
 Duties & Responsibilities
 Working Conditions
 Working Hours
 Salary/Incentives
 Technical Infrastructure – Working Environment
 Purpose of Job Description
 The main purpose of job description is to collect job-related data in order to advertise
for a particular job. It helps in attracting, targeting, recruiting and selecting the right
candidate for the right job.
 It is done to determine what needs to be delivered in a particular job. It clarifies what
employees are supposed to do if selected for that particular job opening.
  JOB SPECIFICATION: Also known as employee specifications, a job
specification is a written statement of employee requirements like:
 educational qualifications,
 specific qualities/skill sets required,
 level of experience,
 physical, emotional, technical and communication skills required to
perform a job,

 Purpose of Job Specification:

 Described on the basis of job description, job specification helps candidates analyse
whether they are eligible to apply for a particular job vacancy or not and at the same time
it helps recruiting team of an organization understand what level of qualifications,
qualities and set of characteristics should be present in a candidate to make him or her
eligible for the job opening.
 RECRUITMENT
Once managers know their current staffing levels—understaffed or overstaffed—they
can begin to take related actions, as the case may be:

If vacancies exist, they can use the
information gathered through job
analysis to guide them in
RECRUITMENT—that is, the
process of locating, identifying, and
attracting capable applicants.
On the other hand, if employment
planning indicates a surplus,
managers may want to reduce the
labor supply within the organization
and initiate DOWNSIZING OR
RESTRUCTURING activities.
 RECRUITMENT

 It is the process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications are
finally submitted.
 In simpler words, recruitment is understood as the process of searching for and
obtaining applicants for the job, from whom the right people can be selected.
 Theoretically, recruitment process is said to end with the receipt of applications,
practically, the practice extends to the screening of applications, so as to eliminate those
who are not qualified for the job.
 IMPORTANCE:

 Determines the present & future personnel requirement in the organization, in

line with its personnel – planning (HRP) and job analysis activities.
 Increases the Pool of candidates at a minimum cost.
 Helps in selecting the most capable applicants, by reducing the
possibility of selecting the under valued or overqualified job applicants.
 Reduces employee turnaround, by reducing the probability that a job
applicant, once recruited and selected, will leave the organization only
after a short period of time.
 Tries to meet the legal and social obligation of the organization
regarding the composition of its workforce
 Applications are even kept available for future reference.
 Sources of Recruitment

Internal Sources of External Sources of

Recruitment Recruitment

 JOB advertisements
 Present Employees
 Campus Recruitments
 Former Employees  Walk-In & Write-In
 E-Recruitments
 Employee Referrals
 Consultants
 Previous Applicants  Contractors
 Employee Exchange Programs
 Poaching/raiding Employees
from Competitors
 Internal - Recruitment
 The term ‘Internal Recruitment’ refers to the process of identifying and attracting
candidates for a new job position, within the same organization.
 Instead of opening the position to the public and attracting candidates that are currently
unemployed or working on other companies, the human resources department (HRD)
may choose to advertise the vacancy internally and allow only members or staffs to
apply for it.
 ADVANTAGES:
 Well established Cultural Alignment – If the candidate is already a part of the
organization, they are well aligned with the organization’s culture.
 Source of Motivation & Career Growth - internal recruitment can be the best
way to climb the career ladder and get hired to a higher position and,
consequently, get a raise.
  Cheaper & Faster: Internal Recruitment is cheaper than recruiting externally
since it eliminates a few steps of the process. Also, the handoff between teams and
the employee’s ramping up period will probably be shorter than hiring an external
employee, causing faster results for the new position.
 Low risk: It’s easier to hire suitable candidates from within your company at a low
risk, as it’s very likely they already went through all the testing and vetting that
external candidates must go through.
 DISADVANTAGES:
 Creates Conflict Amongst Colleagues: In any situation, it can be difficult to
embrace a new boss. But what happens when the new boss is someone who used to
be a peer? Hiring internally can cause hard feelings among co-workers who can’t
adjust to the new shift in roles and responsibilities.
  Your employees, while talented, may not have everything you’re looking
for in a new hire. That means you may need to look outside of your company
to find someone with very specific or technical skill sets. Not only that, but
someone from a different industry may be better suited to bring a fresh
perspective to a role as well.
 Other Disadvantages:
 Does not allow for new ideas and innovation.
 Creates morale problems for those not promoted under internal
recruitment/not considered for internal recruitment.
 Politics play a major role.
 While internal recruitment is an effective way to fill new roles, it almost
always leaves a vacancy.
 External - Recruitment
 External recruitment is the evaluation of open pool of job candidates, other than
existing staff, to check whether there are any enough talented or able to fill
requirements and perform existing employment opportunities.
 Hiring from outside allows companies to draw in fresh ideas, challenge accepted
norms and test assumptions about how to best achieve the organization’s wider
objectives.
 One of the hardest challenges facing any company as it grows is to maintain its
position in the global market competition as an external conditions and thereby to
keep up with changing demands. One of the ways to do so is to draw in new talent to
the company and not rely too heavily on already established working practices inside
the company culture.
 ADVANTAGES:
 Access to skills, lacking in internal candidates: Increased chances of finding a
suitable candidate for the job - better availability of skilled and qualified
employees.
 Generation of creative ideas: Company in need of candidates who can provide
creative ideas for the growth of the company, needs to go with an external
recruitment process for the overall development of the company, as they also
offer unique and new ways that are followed in the competitor or other companies
they worked
 Allows an opportunity to bring in talent with knowledge of the competitive
landscape: When employees are recruited through external recruitment, there
whirls a competitive spirit in the organization amongst the employees. They
present themselves to be competitive with full enthusiasm to work and match with
the new employees.
  Lesser Internal Politics: There is a very less possibility that the candidate might
face internal politics of existing candidates. And these lesser internal politics
avoids a number of internal issues, like external recruitment avoids scope of
resentment and jealousy among internal employees in situation of internal
promotion of one over another.
 DISADVANTAGE:
 Time-consuming: The main disadvantage of external recruitment is that it is
time-consuming as companies post an advertisement for their company
recruitment drive which, eventually, leads to a very extensive procedure of
selection as well.
 External hiring can be costly: the company needs to come up with a pay scale for
that candidate which should value his/her skill and ability. This can turn things a
bit costly for the company as the company needs to provide them with the best
possible deal to refuse, and later needs to provide intense training for the
candidates.
 OTHER DISADVANTAGES:
 An external hire may perform well at interview and fail to deliver once in the
door.
 Internal disputes with existing employees.
 EFFECTIVE RECRUITMENT STRATEGY
As human resources play a significant role in determining the performance of an organisation, it's
important to create and implement an effective standardized recruitment strategy. Businesses require
hiring managers to consider a broad range of factors to develop a hiring strategy. The process may
involve:
 ANALYSING THE JOB MARKET,
 ASSESSING AVAILABLE RESOURCES and
 SETTING ACHIEVABLE GOALS.
Here are several steps a human resource manager may take to create an efficient recruitment strategy:
1. ASSESS THE EXISTING APPROACH TO RECRUITING –
The first step to creating an efficient recruiting strategy is to evaluate your current hiring procedures.
This includes determining and documenting methods that your HR department uses to find, contact,
interview and hire employees - determine the strengths and potential limitations of your current
strategy. As modern technology offers a wide variety of digital tools that can improve the hiring
process, you may want to identify if your department fully uses advanced tools and software. For
instance, applicant tracking software may improve the recruitment process.
2. RESEARCH YOUR COMPETITORS’ RECRUITMENT STRATEGIES
As recruitment strategies frequently reflect the requirements of a specific business, they may differ
significantly depending on the industry. Therefore, you can learn from the experience of competing
businesses and develop a strategy that is relevant within a specific job market. Moreover, this
information may inspire and help you reduce the cost of strategy development.
3. DETERMINE YOUR ORGANISATION’S VALUES, PRINCIPLES AND GOALS: (MBO)
As mentioned, finding specialists who share similar values may help you maintain collaboration in
your team. Consider reviewing your company's mission and searching for candidates who believe in
it to achieve that goal. In addition, this may boost morale and improve the productivity of your
employees.
4. EVALUATE CURRENT EMPLOYMENT NUMBERS
Review each of your company's internal departments and the current employment numbers or types
of positions in each. By doing this, you can identify vacant positions and determine which
department(s) to focus a recruitment strategy on. It might also help to speak with each department
manager to learn more about their hiring needs.
5. INTRODUCE A RECRUITMENT BUDGET
Recruiting strategies may require organisations to spend considerable money to achieve their recruiting
goals. Outlining an appropriate budget is often an important part of such strategies.
6. USE THE WHO, WHAT, WHEN, WHERE, WHY AND HOW METHOD TO DEVELOP A
STRATEGY
 Who: Specialists that your company needs.
 What: The qualifications, skills and experience you are looking for in candidates.
 When: A specific time period during which you implement a recruitment strategy and fill open
positions. This also helps you limit the financial resources that your strategy may require.
 Where: Different platforms that you may use to post job openings.
 Why: The reason for hiring new specialists.
 How: Methods and techniques that you may use throughout the hiring process, including
communication techniques, candidate selection methods and strategies for conducting interviews.
 SELECTION

 Selection is the process of picking the right candidate, through a proper process or
mechanism, out of the pool of job applicants with requisite qualification and
competence to fill the job vacancy.
 Recruitment & Selection are the two crucial steps in the HR process and are often
used interchangeably. There is, however, a fine distinction between the two steps.
 While Recruitment refers to the process of identifying and encouraging the
prospective employees to apply for the job, Selection is concerned with
picking the right candidate/candidates from the pool of applicants.
 Recruitment is said to be positive in approach as it seeks to attract as many
candidates as possible, Selection on the other hand, is negative in its
application in as much as it seeks to eliminate as many unqualified applicants
as possible in order to identify the right candidate/candidates.
 SELECTION AS A SOURCE OF COMPETITIVE
ADVANTAGE

The role of Selection in an organization’s effectiveness is crucial for at least two

reasons:
 WORK PERFORMANCE DEPENDS ON THE INDIVIDUALS: The best way
to improve the performance of the organization is to hire people who have the
competence and the willingness to work. A poor or an inappropriate choice of
selection can be demoralizing to the individual concerned – who finds himself or
herself in the wrong job and also demotivating to the rest of the workforce.
Effective selection, therefore assumes greater relevance.
 COST INCURRED IN WRONG RECUITMENT & HIRING personnel speaks
volumes about the role of Selection. The cost of wrong selection is much greater.
The costs for a wrong selection can be of three types:
 The first type is incurred when the unqualified employee is hired/employed.
This can be evidently proved in terms of :
 Loss of production and thereby loss of profit
 Damaged company’s reputation
 Negligence causing economical accidents/losses
 Constant absenteeism, etc.
 The second type of costs are concerned with the training, transfer or while
terminating the services of the employee.
 The final error constitutes the cost of replacing an employee with a
new/fresh one, which will include further the costs of hiring and training of
the new/fresh employee.
 SELECTION PROCESS

1 Preliminary 6 Physical 7 Job Offer

Interview Examination

2 5 8 Employment
Selection Test Selection Decision
Contract

Employment
3 4 Reference Check 9 Evaluation
Interview