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Human Resource Planning
Human Resource Planning is a process of
determining the number and types of
people/staff required by an organization in
future. It is concerned with right number of
people with right kind of skills.
Human Resource Planning is a process of
determining the number and types of
people/staff required by an organization in
future. It is concerned with right number of
people with right kind of skills.
Objectives of HRP
• Determining the personnel needs of the organization;
• Planning the desired profile of personnel – like qualification skills,
knowledge, experience etc;
• Identifying the areas of critical HR shortages;
• Identifying the surplus of personnel;
• Identifying training & development needs;
• Finalizing managerial succession plans.
• Determining the personnel needs of the organization;
• Planning the desired profile of personnel – like qualification skills,
knowledge, experience etc;
• Identifying the areas of critical HR shortages;
• Identifying the surplus of personnel;
• Identifying training & development needs;
• Finalizing managerial succession plans.
Components of Hiring Process
Recruitment
Selection
Socialization
Recruitment
Selection
Socialization
Job analysisJob analysis
Job descriptionJob description
RecruitmentRecruitment
SelectionSelection
Human resource
Planning
Human resource
Planning
Relationship among Job Analysis, Human Resource Planning, Recruitment & Selection.
Job Analysis
It is the systematic process of collecting
information used to make decisions about
jobs.
Job analysis identifies the tasks, the duties, and
the responsibilities of a particular job.
It is the systematic process of collecting
information used to make decisions about
jobs.
Job analysis identifies the tasks, the duties, and
the responsibilities of a particular job.
Elements of Job Analysis
• Job Description: Describes and defines a job in
terms of its duties, responsibilities, working conditions
etc;
• Job Specification: describes the requirements
of individual in terms of his knowledge, education,
experience etc. in doing a given job;
• Job Evaluation: Assesses the
relative/comparative worth of a job in terms of its
contribution/importance to overall organizations
goals.
Job Analysis
• Job Analysis is intended to
reveal what is actually
done as opposed to what
should be done.
• The purpose of JA is to
show to the management
how at the moment a
particular job is being
carried out.
Is the process by means of
which a description is
developed of the present
method & procedures of doing
a job, physical conditions in
which the job is done, relation
of the job to other jobs and
other conditions of
employment.
Job Analysis
• Job title
• Work performed
• Equipment used (if any)
• Tools & Materials used
• Education (general, technical)
required
• Experience
• Physical effort
• Responsibility
• Discomforts
• Hazards
• Supervision (close or general)
received
• Supervision (close or general) given
• Any other (no. of men or women to
be employed)
Points on which information
may be gathered
Job Analysis • Questionnaire
– Through mail surveys
– Info gathered from job
incumbent
– Suitable for clerical jobs
– Time consuming
Obtaining data for JA
Job Analysis
• Checklist
– A worker presented with a
list of probable tasks
performed by him
– Worker asked to tick the
tasks performed by him
– Does not provide an
integrated picture of the
tasks performed by him
– Easy to administer
Obtaining data for JA
Job Analysis
• Interview
– Group of job incumbents
selected for extensive
interview
– Carried out individually or in
group
– Replies from incumbents
combined into a single job
description
– Integrated picture of job
obtained
– Many new things about the
job revealed
– Costly & time consuming
Obtaining data for JA
Job Analysis
• Observation
– Followed right on the job
– Analysts observes the
incumbent as he performs the
job
– Probes the incumbent to
gather data about the job
– Slow & costly
– Interferes in normal work
operations
– Produces a good & complete
job description
– Desirable where manual
operations are prominent
Obtaining data for JA
Job Analysis
• Participation
– Job performed by the
analyst himself
– Good for simple jobs
– For complex jobs advanced
training required by the
analyst
– Time consuming
Obtaining data for JA
Job Analysis
Technical conference
– Info gathered from
supervisor and not the
actual job incumbent
– Supervisor may have poor
knowledge about the job
Obtaining data for JA
Job Analysis
• Self- recording
– Record daily activities using
a log book or dairy
– Useful for high managerial
jobs
Obtaining data for JA
Job Analysis
• Critical incident
– Supervisor to give on the job
note worthy instances of job
holders behavior
– (Uses for students)
Obtaining data for JA
Job Description
A job description is an organized, factual
statement of duties & responsibilities of
a specific job. It should tell what is to be
done, how it is done and why it is done.
It is a standard of function, in that it
defines the appropriate & authorized
content of a job.
Job Description
• job title, code number,
department/division.
• Job contents in terms of
activities or tasks performed.
• Job responsibilities towards
effective performance of the
job.
• Working conditions
specifying specific hazards.
• Social environment
prevailing at the workplace.
• Extent of supervision given &
received
Information contained in JD
Job specification
“Job specification is a statement of the
minimum acceptable human qualities
necessary to perform a job properly …. It is a
standard of personnel & designates the
qualities required for acceptable
performance” (Filppo)
Job specification
• Personal characteristics such as
age, sex, education, job
experience & extra & co-
curricular activities;
• Physical characteristics such as
height, weight, vision, hearing,
health, voice, poise & hand etc.
• Mental characteristics such as
general intelligence, memory,
judgment, foresight, ability to
concentrate, etc.
• Social & psychological
characteristics such as
emotional stability, flexibility,
manners, initiative, drive,
conversational ability, creativity,
etc.
Basic contents in JS
Recruitment & Selection
• Placing the requisition
•
• Recruitment
•
•
•
• Selection
•
• Placement &
•
• Induction
•
Steps involved
Placing the requisition
• Specifies the jobs or operations or positions
for which persons are required ;
• The no. to be recruited;
• The time by which the persons should be
available etc.
Recruitment
The process of searching
prospective workers &
stimulating them to apply for
jobs in the organization
Recruitment • Communication medium
• Job seeker to perceive a
match bet. his personal &
prescribed job requirement
• The job seeker must be
motivated to apply
Mating theory
Recruitment
• Image of the organization
• Attractiveness of the job
• Organizational Policies
• Government Influence
• Recruiting Costs
Factors affecting recruitment efforts
Recruitment
• Has proven record of effective
recruitment and selection in the
past;
• Maintains an inventory of
employee skills;
• Has unbiased employee
performance appraisal system in
vogue;
• Stresses on continuous
employee development;
• Has cordial labor management
relations; and
• Respects the collective
bargaining agreements;
•
Internal Sources: When good
Recruitment
• The management can easily avoid making a wrong decision by
promoting an employee who has proven his capacity and
talent in the past;
• The existing employee can fit into the organizations’ culture
more appropriately, therefore, needs less socialization effort
on the part of the organization;
• The promotion of the existing employee can act as strong
impetus and source of motivation for others in the
organization and encourage them to emulate the promoted
employee in performance and commitment to the
organizational goals;
• The retention of talented employees can be made possible
through internal recruiting as other employees will see their
future safe and secured in the organization;
• It is also cheap, quick, dependable and accurate source of
recruitment;
• It can encourage cordial and collegial atmosphere in the
organization or labor management relations;
• It can lead to maximum possible utilization of the employee
talent, through placing him at different positions, thus the
investment on human resources can be well justified; and
• The existing employee will feel more comfortable with the
organization, thus will not hold inaccurate expectations from
the organization.
Internal sources: Advantages
Recruitment
• Inbreeding can constrain the innovative and
creative moves by the organization;
• A sense of complacency may occur in the
employees if the promotions are simply based
on time-bound criterion, thus will significantly
effect the individual and organizational
performance;
• Infighting for promotions can have a negative
effect on the morale and performance of those
who are not selected;
• At times may strengthen the locus standii of the
unions, who can use it for their selfish ends;
• It will dampen the entry of the fresh blood into
the organization, thus may reduce the
competitiveness of the organization;
• Above all, internal recruiting cannot meet the
demands of the fast growing organizations
especially in the service sector.
Internal sources: Disadvantages
Recruitment
– Both promotions and transfers should be posted;
– Openings should be posted for a specified time
period before external recruitment begins;
– Eligibility rules for the job posting system need to
be developed and communicated. For example,
one eligibility rule might be that no employee can
apply for a posted position unless the employee
has been in his or her present position say for six
months;
– Specific standards for selection should be included
in the notice;
– Job bidders should be required to list their
qualifications and reasons for requesting a
transfer or promotion; and
– Unsuccessful bidders should be notified by the
human resource department and advised as to
why they were not accepted.
Internal sources: Methods
Job Posting and Bidding
Here the notices
regarding the available jobs in
the organization are displayed
in central locations and
employees are given specified
period of time to respond to
the notice;
Employees are also informed
through company bulletins,
newsletters, memos circulars
etc.
Recruitment
The referred employees
• Are less expensive to recruit and
save 60% to 70% of recruitment
costs;
• Stay longer with the company;
• Adapt to the company culture
quickly;
• Are quickly searched out or
searchable;
• Instills sense of pride and
belongingness in the
recommending employee.
Internal sources: Methods
Employee Referrals/Recommendations
Present employee referrals of
job candidates have assumed
a great ascendancy in the
recent past.
Also considered as external
source of recruitment
Today 80% of the IT or ITEs
companies resort to this
method of recruitment (ET.
Nov. 21, 2008)
Recruitment
• Economic greed may at times over power the
rational or considered judgment of the
employee, therefore, he may recommend a less
desirable and unsuitable job candidate to the
organization.
• Also the existing employee cannot be expected
to recommend an outstanding candidate to the
organization, because the very existence of such
a talented new comer may threaten him his own
position especially if they fall in same job
category and if the promotions are linked to
employee performance.
• Employee referrals may also discourage the
workforce diversity, as existing employees may
be more interested in obliging their own
relations and friends. While, this may be true for
lower level and managerial positions, in higher
level positions however, the referral will be
ordinarily a professional acquaintance rather
than a friend or a relative of the referee.
Internal sources: Methods
Disadvantages of employee
referrals
Employees hired through referral programmes
Company Percentage of Referred Employees Reasons
VMoksha Technologies 35 percent
Checks the quality of candidates as only quality candidates are
referred to by an employee. Also reinstates the faith which an
employee has in the organization.
Tavant Technologies 60 percent
Saves a lot on direct recruiting through placement agencies. Chances
of a candidate taking up the offer are very high.
FCG Nearly 50 percent Brings in quality candidates in an organization.
Netkraft 35 percent Gets the right kind of people and helps in checking attrition.
i2Technolgies 58 percent
An employee's productivity increases if he works in a friendly
atmosphere.The company believes that when a new employee joins
through the referral system, he or she has a friend who also acts as a
mentor during their first few days in the company.
Source: IT vendors: abhinav@expresscomputeronline.com
Reruitment
• The pool of talent available outside
is obviously large than the one
available inside the organization;
• The readymade technical and or
skilled employees could be cheaper
and easier for organizations to
recruit than to train and develop
them internally especially when the
organization has a pressing demand
for talent/them;
• Fresh recruits can bring new insights
and perspectives to the
organization, thus, will boast
competitiveness and vigor among
all.
External sources: Adavantages
Recruitment
• Fresh recruits may take time to
adjust in the new environs and also
in reading and understanding the
culture of the organization;
• It can act as a de-motivator for the
existing workforce thus will effect
their morale and performance;
• It may also lead to hostile labor
management relations;
• New recruits could be eyesores for
the existing employees particularly
in small organizations, thus would
create an unhealthy atmosphere in
the organization.
External sources: Disadvantages
Recruitment
• Advertisement
• Employment
Agencies
• Internet or Cyber
• Colleges, Institutes.
• Unsolicited
Applications
• Job fairs
• TV Shows
External sources: These may include
Recruitment
• In India, public employment agencies
are governed by Compulsory
Notification Act 1959 and the online
registration is available for the desired
unemployed youth;
• 950 employment exchanges in India
with an estimated 47,32,000 candidates
registered with them.
• Mandatory for both private and public
companies as per SC order to inform the
District Employment Exchanges about
their vacancies, though they can
conduct recruitment process
themselves.
• As per SC order an establishment can be
penalized between Rs. 250 to Rs. 10000.
• In India, public employment agencies
are governed by Compulsory
Notification Act 1959 and the online
registration is available for the desired
unemployed youth;
• 950 employment exchanges in India
with an estimated 47,32,000 candidates
registered with them.
• Mandatory for both private and public
companies as per SC order to inform the
District Employment Exchanges about
their vacancies, though they can
conduct recruitment process
themselves.
• As per SC order an establishment can be
penalized between Rs. 250 to Rs. 10000.
External Sources
Employment Exchanges
There are two types of
employment agencies working
for recruiting employees for
organizations: public and
private agencies.
1996 1997 1998 1999 2000
1 2 3 4 5 6
1. Number of exchanges 914 934 945 955 958
2. Registration (` 000 ) 5872 6322 5852 5966 4732
3. Placement (` 000 ) 233 275 233 221 132
4. Application on Live register
(` 000 )
3743
0
3914
0
40090 4037
1
4146
0
5.Av.No.of employers using E.E.
(`000)
0 0 0 0 0
Source: Central Statistical Organization (Statistical Pocket Book, 1999, 2000)
Recruitment
• The executive search which recruits
top officials for the firm are
commonly called as head hunters.
• Naukri.com is a very popular private
agency in India. It has offices in
major cities of India and abroad in
USA.
• Prizedjobs.com an online interactive
division of M/S Placements.com Ltd.,
Bangalore has more than 140000
professional registered with it within
and outside India.
• The executive search which recruits
top officials for the firm are
commonly called as head hunters.
• Naukri.com is a very popular private
agency in India. It has offices in
major cities of India and abroad in
USA.
• Prizedjobs.com an online interactive
division of M/S Placements.com Ltd.,
Bangalore has more than 140000
professional registered with it within
and outside India.
External sources:
Private employment
exchange
The private
employment agencies
search out for two
categories of
employees.
RecruitmentRecruitment
• They allow organization to get specific
projects done;
• Expose themselves to talented and
potential employees who may become
their “recruiters” at school/college;
• Provide trial-run employment to
determine if they want to hire particular
people full time;
• Allows both employer and the
employee a chance to understand each
other before entering into a permanent
bond of employment relationship; and
• Can supplement the globalization
efforts of the organization.
External sources: Methods
Internships
This approach to recruiting is
concerned with hiring
students as interns usually
during the summers.
Benefits of Internship
External sources: Methods
Internships
This approach to recruiting is
concerned with hiring
students as interns usually
during the summers.
Benefits of Internship
RecruitmentRecruitment
Benefits to recruiting firm
• Flexibility of employment,
• Ease of recruitment and
replacement,
• long-term cost advantages,
• Opportunity for focusing on core
areas.
Demerits
• Suffer from employee disloyalty,
• Breach of trade secrets,
• Lack of employee commitment
and the like.
External Source
Temporary Worker
A “temp” is a temporary worker
with an organization who is on a
third party (staffing company)
payroll.
The staffing company pays salary
and other benefits to the
temporary worker.
The employing organization in
turn pays the staffing company
an agreed-upon amount of the
services rendered by the
temporary worker.
The employment of the temp is
purely based on the company
needs and requirements.
External Source
Temporary Worker
A “temp” is a temporary worker
with an organization who is on a
third party (staffing company)
payroll.
The staffing company pays salary
and other benefits to the
temporary worker.
The employing organization in
turn pays the staffing company
an agreed-upon amount of the
services rendered by the
temporary worker.
The employment of the temp is
purely based on the company
needs and requirements.
12 mn temporary jobs in India
Temporary jobs are fast becoming employers' favourite in cities like Delhi and Mumbai while the gap between salary
levels of "Temps" and permanent employees has also narrowed down, a new survey has revealed. The compensation
offered to temporary job seekers or Temps has gone up substantially for freshers; with an average growth of 15 per cent
across all experience levels.
The Temps salary levels are closer to permanent salary levels this year as against last year, the TeamLease Annual Temp
Salary Primer 2006 said. Information Technology and IT-enabled services companies are hiring more of temporary
workers with both these segments emerging as top verticals for temp job prospects, it said.
Temporary jobs can create 12 million jobs in India in the next five years, if requisite amendments are made in the
Contract Labour Act, TeamLease said.
IT city Bangalore and Delhi are the favourite destinations for temp job seekers, offering higher compensation for all the
job functions across all verticals. Human Resources and administration are also emerging as the preferred functions.
The percentage of temp jobs in verticals like banking, financial services and insurance, manufacturing and consumer
durables has also jumped by over 20 per cent since last year.
National capital Delhi is gradually emerging as the hot location for temp job seekers in sales sector, Mumbai for accounts
and Bangalore for HR and administration.
Like in permanent jobs, level of education influences the compensation as it increases by more than 20 per cent for every
increase in the education level except for sales, the survey said.
Source: Hindustan Times, (PTI) New Delhi, February 13, 2006
Recruitment
Campus Recruitment
– here the college/university graduates are
interviewed by the company representatives
and the suitable candidates are selected for
the jobs. This is the dominant mode of
recruitment nowadays (ET, Nov. 21, 2008)
Unsolicited applications
– here the prospective employees through
letters, e-mails, and telephones or in person
contact the employer for the job vacancy.
Cyber recruiting or internet recruiting
– is the latest way of recruiting the job
applicants nowadays where prospective
candidates use the company websites for
jobs.
External Source
Campus Recruitment
TV Shows
Cyber Recruiting
Unsolicited Applications
Selection
• The process of choosing individuals’ who
have relevant qualifications to fill jobs in
organization
• Selecting qualified employees is like putting
money in the bank
Two HR Truisms
• “Good training will not fix for bad selection”
• “If you don’t hire the right one, your
competitor will”
• “Good training will not fix for bad selection”
• “If you don’t hire the right one, your
competitor will”
Selection Process
Application Forms
Preliminary Interview
Employment Tests
Reference Checks
Medical Examination
Figure: Framework of Recruitment & Selection
Selected Candidates/Final Decision
Recruitment Organizational Goals Job Analysis
Sources
Applicants Workload Analysis Job Description
Manpower Requisition Job Specification
Applicants Workload Analysis Job Description
Manpower Requisition Job Specification
Selection techniques
• Structured Application Form
• Unstructured Application
Form
• Weighted Application Form
• Structured Application Form
• Unstructured Application
Form
• Weighted Application Form
Application Scrutiny
Identifies those candidates who fit the
job specification and can be called
later for the interview
Selection Techniques
(Cont.)
•Types of interview:-
•1-Structured or systematic Interview.
•*An interview conducted as per the pre-
determined plan.
• 
•2-Unstructured interview
•*An interview conducted without any pre-
determined plan and questions.
• 
•3-Stress interview:
•Where an applicant is put under pressure for
knowing how emotional he is.
• 
•4-Panel or Board interview
•An interview method where two or more people
interview a single applicant.
•5-Group interview:
•An interview method where several applicants
are interviewed to gathers.
Interview
Face-to-face, observational
and personal method of
evaluating the applicant
Interview
Face-to-face, observational
and personal method of
evaluating the applicant
Selection Techniques
(Cont.)
• Reviewing background
information
• Preparing a question plan
• Creating a helpful setting
• Conducting the interview
• Concluding the interview
Procedure for an Interview
Selection Techniques
(Cont.)
1-Aptitude Tests
Measure/ test the person's capacity to learn or perform
(future inn consideration(
2-Psychomotor Tests
This test measure the person's strength, dexterity and
coordination.
•3-Ability/Proficiency Tests
This test measures how well an applicant can do a given job
(present in consideration(.
4-Interest Tests
Measures various interests of the applicants
5-Polygraph Tests
Here the physiological changes in the bodies of the person
are recorded on the machine to see whether the
person is lying or not.
6-Graphology Tests
Here the personality, emotional problems and honesty is
measured through analyzing applicants hand writing.
Employment testing
Selection Techniques
(Cont.)
• References are usually
obtained from the
candidate’s friends or from
his previous employer
• Contagious diseases can be
avoided from spreading if the
candidate is tested in
advance for them;
• The company may also avoid
incurring medical bills on
employees found medically
unfit.
Reference Checking
Requesting references is a
wide spread practice with
substantial doubt to its
validity
Physical/Medical
examination
Physical examination reveals
whether the candidate
possesses the required
stamina, strength and
tolerance of hard working
conditions.
Battery of Selection
Techniques
Battery of Selection
Techniques • Profile Matching
• Multiple Cut-off
• Multiple Regression
• Multiple Hurdles
• Profile Matching
• Multiple Cut-off
• Multiple Regression
• Multiple Hurdles
No single selection
technique can be believed
to measure all the abilities
required on any job.
Therefore, a battery of
selection techniques are
used to overcome this
problem.
Battery of Selection
Techniques
• Selection is made in any of the
following ways:
– Individuals whose scores are
above the standard score may be
selected;
– Individuals whose scores show
min. deviations from the ideal
score may be selected after the
deviations are calculated,
squared & totalled. The lesser
the total the better it is;
– Individuals whose scores show
max. covaraition with the
standard scores may be selected.
The r may be calculated between
the scores of each individual &
the ideal score. The higher the r ,
the better the match.
Profile Matching
The ideal profile of a
successful worker is obtained
by making him to pass
through the various selection
techniques/criterions
The standard so obtained is
then used to measure the
individual profile of all the
new applicants
Battery of Selection
Techniques
• An applicant is bound to score
above this point on each
technique;
• Cut-off points are usually
determined by trail & error
method;
• Individuals who score above all
cut-off points are ranked on the
basis of their total scores;
• Final selection or rejection
decision taken at the end.
• An applicant is bound to score
above this point on each
technique;
• Cut-off points are usually
determined by trail & error
method;
• Individuals who score above all
cut-off points are ranked on the
basis of their total scores;
• Final selection or rejection
decision taken at the end.
Multiple Cut-offs
A minimum acceptable
point is established
separately for each
technique.
This method assumes that
for job success, a certain
minimum score is needed
by an applicant in respect
of each technique.
Multiple Cut-offs
A minimum acceptable
point is established
separately for each
technique.
This method assumes that
for job success, a certain
minimum score is needed
by an applicant in respect
of each technique.
Battery of Selection
Techniques
x2 makes twice the
contribution as the
selection technique x1 in
predicting job success (y)
Suppose
Applicant 1 scores
x1= 5 & x2= 10
Applicant 2 scores
x1= 15 & x2= 5
Multiple Regression
The relative contribution
of each selection
technique in predicting job
performance is found out
through using the multiple
regression model.
y= 2x1 + 4x2
(where y stands for
predicted job success and
x1 & x2 stand for the
different selection
techniques)
Multiple hurdle
An applicant must clear all
the hurdles to reach the
final stage where he is
considered for selection
Preliminary interview
Application scrutiny
Tests
Interview by personnel dpt.
References
Physical examination
Interview by line manager
Multiple hurdle
An applicant must clear all
the hurdles to reach the
final stage where he is
considered for selection
Preliminary interview
Application scrutiny
Tests
Interview by personnel dpt.
References
Physical examination
Interview by line manager
Battery of Selection
Techniques
• An applicant must score
the minimum given score
at each stage;
• Every stage acts as device
for weeding out applicants;
• Progressively decreasing
the cost of selection
• Final selection or rejection
decision taken at each
stage.
Determining the
Functional Value of
Selection Technique
Determining the
Functional Value of
Selection Technique
• Reliability
• Validity
• Selection ratio
• Ability to increase the
percentage of satisfactory
performance
• Reliability
• Validity
• Selection ratio
• Ability to increase the
percentage of satisfactory
performance
Factors determining
the functional utility
of a selection
technique
Determining the
Functional Value of
Selection Technique
• The reliability of a test is
determined in any of the
following ways:
– By giving the test to the same
group at separate times &
correlating the resultant series
of test scores;
– By giving two or more
different (but equivalent)
forms of the same test &
correlating the resultant test
scores;
– By split-half or odd-even
method.
Reliability
This means that test
should give consistent
results in repeated
trials as the unreliable
test has little merit
and therefore may act
as an elastic ruler
Reliability
This means that test
should give consistent
results in repeated
trials as the unreliable
test has little merit
and therefore may act
as an elastic ruler
Determining the
Functional Value of
Selection Technique
• Face Validity
– Test should look right to the
test taker. For example, test
designed to measure
supervisory skills would lack
face validity if it contains items
which assess arithmetic
knowledge.
• Content validity
– Test should be fully
representative of the relevant
domain. For example, if a
typist is only tested for typing
the numbers, it would lack the
content validity.
Validity
Means that the test should
measure what it purports
to measure.
4 types of validity
measures:
Face validity
Content validity
Construct validity
Criterion-related
validity
Validity
Means that the test should
measure what it purports
to measure.
4 types of validity
measures:
Face validity
Content validity
Construct validity
Criterion-related
validity
Determining the
Functional Value of
Selection Technique
Determining the
Functional Value of
Selection Technique
• Construct Validity
– By construct validity is meant the
appropriateness of the
operational definition of the
construct (abstract variables like
intelligence, aptitude etc., that
cannot be directly observed).
• Criterion-Related Validity
– Is the ability of a test to
successfully predict an
applicant’s performance on a
specific job as measured by a
particular index of job success. A
test that has been shown to
predict successfully an index of
job proficiency is said to be a
valid test.
Validity
Means that the test should
measure what it purports
to measure.
Validity
Means that the test should
measure what it purports
to measure.
Selection RatioSelection Ratio
• Selection device used will
have no functional utility,
in case the selection ratio is
greater than 1;
• A manager can afford to
raise the standards and
select only those who hold
high promise, in case the
selection ratio is less than 1
It is the ratio of the
number of applicants to be
selected to the total
number of applicants
available.
Expressed as:
SR = n⁄N
Where nis the number of
jobs to be filled up &
N is the number of
applicants for those jobs
It is the ratio of the
number of applicants to be
selected to the total
number of applicants
available.
Expressed as:
SR = n⁄N
Where nis the number of
jobs to be filled up &
N is the number of
applicants for those jobs

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Ch 02 human resource planning

  • 1. Human Resource Planning Human Resource Planning is a process of determining the number and types of people/staff required by an organization in future. It is concerned with right number of people with right kind of skills. Human Resource Planning is a process of determining the number and types of people/staff required by an organization in future. It is concerned with right number of people with right kind of skills.
  • 2. Objectives of HRP • Determining the personnel needs of the organization; • Planning the desired profile of personnel – like qualification skills, knowledge, experience etc; • Identifying the areas of critical HR shortages; • Identifying the surplus of personnel; • Identifying training & development needs; • Finalizing managerial succession plans. • Determining the personnel needs of the organization; • Planning the desired profile of personnel – like qualification skills, knowledge, experience etc; • Identifying the areas of critical HR shortages; • Identifying the surplus of personnel; • Identifying training & development needs; • Finalizing managerial succession plans.
  • 3. Components of Hiring Process Recruitment Selection Socialization Recruitment Selection Socialization
  • 4. Job analysisJob analysis Job descriptionJob description RecruitmentRecruitment SelectionSelection Human resource Planning Human resource Planning Relationship among Job Analysis, Human Resource Planning, Recruitment & Selection.
  • 5. Job Analysis It is the systematic process of collecting information used to make decisions about jobs. Job analysis identifies the tasks, the duties, and the responsibilities of a particular job. It is the systematic process of collecting information used to make decisions about jobs. Job analysis identifies the tasks, the duties, and the responsibilities of a particular job.
  • 6. Elements of Job Analysis • Job Description: Describes and defines a job in terms of its duties, responsibilities, working conditions etc; • Job Specification: describes the requirements of individual in terms of his knowledge, education, experience etc. in doing a given job; • Job Evaluation: Assesses the relative/comparative worth of a job in terms of its contribution/importance to overall organizations goals.
  • 7. Job Analysis • Job Analysis is intended to reveal what is actually done as opposed to what should be done. • The purpose of JA is to show to the management how at the moment a particular job is being carried out. Is the process by means of which a description is developed of the present method & procedures of doing a job, physical conditions in which the job is done, relation of the job to other jobs and other conditions of employment.
  • 8. Job Analysis • Job title • Work performed • Equipment used (if any) • Tools & Materials used • Education (general, technical) required • Experience • Physical effort • Responsibility • Discomforts • Hazards • Supervision (close or general) received • Supervision (close or general) given • Any other (no. of men or women to be employed) Points on which information may be gathered
  • 9. Job Analysis • Questionnaire – Through mail surveys – Info gathered from job incumbent – Suitable for clerical jobs – Time consuming Obtaining data for JA
  • 10. Job Analysis • Checklist – A worker presented with a list of probable tasks performed by him – Worker asked to tick the tasks performed by him – Does not provide an integrated picture of the tasks performed by him – Easy to administer Obtaining data for JA
  • 11. Job Analysis • Interview – Group of job incumbents selected for extensive interview – Carried out individually or in group – Replies from incumbents combined into a single job description – Integrated picture of job obtained – Many new things about the job revealed – Costly & time consuming Obtaining data for JA
  • 12. Job Analysis • Observation – Followed right on the job – Analysts observes the incumbent as he performs the job – Probes the incumbent to gather data about the job – Slow & costly – Interferes in normal work operations – Produces a good & complete job description – Desirable where manual operations are prominent Obtaining data for JA
  • 13. Job Analysis • Participation – Job performed by the analyst himself – Good for simple jobs – For complex jobs advanced training required by the analyst – Time consuming Obtaining data for JA
  • 14. Job Analysis Technical conference – Info gathered from supervisor and not the actual job incumbent – Supervisor may have poor knowledge about the job Obtaining data for JA
  • 15. Job Analysis • Self- recording – Record daily activities using a log book or dairy – Useful for high managerial jobs Obtaining data for JA
  • 16. Job Analysis • Critical incident – Supervisor to give on the job note worthy instances of job holders behavior – (Uses for students) Obtaining data for JA
  • 17. Job Description A job description is an organized, factual statement of duties & responsibilities of a specific job. It should tell what is to be done, how it is done and why it is done. It is a standard of function, in that it defines the appropriate & authorized content of a job.
  • 18. Job Description • job title, code number, department/division. • Job contents in terms of activities or tasks performed. • Job responsibilities towards effective performance of the job. • Working conditions specifying specific hazards. • Social environment prevailing at the workplace. • Extent of supervision given & received Information contained in JD
  • 19. Job specification “Job specification is a statement of the minimum acceptable human qualities necessary to perform a job properly …. It is a standard of personnel & designates the qualities required for acceptable performance” (Filppo)
  • 20. Job specification • Personal characteristics such as age, sex, education, job experience & extra & co- curricular activities; • Physical characteristics such as height, weight, vision, hearing, health, voice, poise & hand etc. • Mental characteristics such as general intelligence, memory, judgment, foresight, ability to concentrate, etc. • Social & psychological characteristics such as emotional stability, flexibility, manners, initiative, drive, conversational ability, creativity, etc. Basic contents in JS
  • 21. Recruitment & Selection • Placing the requisition • • Recruitment • • • • Selection • • Placement & • • Induction • Steps involved
  • 22. Placing the requisition • Specifies the jobs or operations or positions for which persons are required ; • The no. to be recruited; • The time by which the persons should be available etc.
  • 23. Recruitment The process of searching prospective workers & stimulating them to apply for jobs in the organization
  • 24. Recruitment • Communication medium • Job seeker to perceive a match bet. his personal & prescribed job requirement • The job seeker must be motivated to apply Mating theory
  • 25. Recruitment • Image of the organization • Attractiveness of the job • Organizational Policies • Government Influence • Recruiting Costs Factors affecting recruitment efforts
  • 26. Recruitment • Has proven record of effective recruitment and selection in the past; • Maintains an inventory of employee skills; • Has unbiased employee performance appraisal system in vogue; • Stresses on continuous employee development; • Has cordial labor management relations; and • Respects the collective bargaining agreements; • Internal Sources: When good
  • 27. Recruitment • The management can easily avoid making a wrong decision by promoting an employee who has proven his capacity and talent in the past; • The existing employee can fit into the organizations’ culture more appropriately, therefore, needs less socialization effort on the part of the organization; • The promotion of the existing employee can act as strong impetus and source of motivation for others in the organization and encourage them to emulate the promoted employee in performance and commitment to the organizational goals; • The retention of talented employees can be made possible through internal recruiting as other employees will see their future safe and secured in the organization; • It is also cheap, quick, dependable and accurate source of recruitment; • It can encourage cordial and collegial atmosphere in the organization or labor management relations; • It can lead to maximum possible utilization of the employee talent, through placing him at different positions, thus the investment on human resources can be well justified; and • The existing employee will feel more comfortable with the organization, thus will not hold inaccurate expectations from the organization. Internal sources: Advantages
  • 28. Recruitment • Inbreeding can constrain the innovative and creative moves by the organization; • A sense of complacency may occur in the employees if the promotions are simply based on time-bound criterion, thus will significantly effect the individual and organizational performance; • Infighting for promotions can have a negative effect on the morale and performance of those who are not selected; • At times may strengthen the locus standii of the unions, who can use it for their selfish ends; • It will dampen the entry of the fresh blood into the organization, thus may reduce the competitiveness of the organization; • Above all, internal recruiting cannot meet the demands of the fast growing organizations especially in the service sector. Internal sources: Disadvantages
  • 29. Recruitment – Both promotions and transfers should be posted; – Openings should be posted for a specified time period before external recruitment begins; – Eligibility rules for the job posting system need to be developed and communicated. For example, one eligibility rule might be that no employee can apply for a posted position unless the employee has been in his or her present position say for six months; – Specific standards for selection should be included in the notice; – Job bidders should be required to list their qualifications and reasons for requesting a transfer or promotion; and – Unsuccessful bidders should be notified by the human resource department and advised as to why they were not accepted. Internal sources: Methods Job Posting and Bidding Here the notices regarding the available jobs in the organization are displayed in central locations and employees are given specified period of time to respond to the notice; Employees are also informed through company bulletins, newsletters, memos circulars etc.
  • 30. Recruitment The referred employees • Are less expensive to recruit and save 60% to 70% of recruitment costs; • Stay longer with the company; • Adapt to the company culture quickly; • Are quickly searched out or searchable; • Instills sense of pride and belongingness in the recommending employee. Internal sources: Methods Employee Referrals/Recommendations Present employee referrals of job candidates have assumed a great ascendancy in the recent past. Also considered as external source of recruitment Today 80% of the IT or ITEs companies resort to this method of recruitment (ET. Nov. 21, 2008)
  • 31. Recruitment • Economic greed may at times over power the rational or considered judgment of the employee, therefore, he may recommend a less desirable and unsuitable job candidate to the organization. • Also the existing employee cannot be expected to recommend an outstanding candidate to the organization, because the very existence of such a talented new comer may threaten him his own position especially if they fall in same job category and if the promotions are linked to employee performance. • Employee referrals may also discourage the workforce diversity, as existing employees may be more interested in obliging their own relations and friends. While, this may be true for lower level and managerial positions, in higher level positions however, the referral will be ordinarily a professional acquaintance rather than a friend or a relative of the referee. Internal sources: Methods Disadvantages of employee referrals
  • 32. Employees hired through referral programmes Company Percentage of Referred Employees Reasons VMoksha Technologies 35 percent Checks the quality of candidates as only quality candidates are referred to by an employee. Also reinstates the faith which an employee has in the organization. Tavant Technologies 60 percent Saves a lot on direct recruiting through placement agencies. Chances of a candidate taking up the offer are very high. FCG Nearly 50 percent Brings in quality candidates in an organization. Netkraft 35 percent Gets the right kind of people and helps in checking attrition. i2Technolgies 58 percent An employee's productivity increases if he works in a friendly atmosphere.The company believes that when a new employee joins through the referral system, he or she has a friend who also acts as a mentor during their first few days in the company. Source: IT vendors: abhinav@expresscomputeronline.com
  • 33. Reruitment • The pool of talent available outside is obviously large than the one available inside the organization; • The readymade technical and or skilled employees could be cheaper and easier for organizations to recruit than to train and develop them internally especially when the organization has a pressing demand for talent/them; • Fresh recruits can bring new insights and perspectives to the organization, thus, will boast competitiveness and vigor among all. External sources: Adavantages
  • 34. Recruitment • Fresh recruits may take time to adjust in the new environs and also in reading and understanding the culture of the organization; • It can act as a de-motivator for the existing workforce thus will effect their morale and performance; • It may also lead to hostile labor management relations; • New recruits could be eyesores for the existing employees particularly in small organizations, thus would create an unhealthy atmosphere in the organization. External sources: Disadvantages
  • 35. Recruitment • Advertisement • Employment Agencies • Internet or Cyber • Colleges, Institutes. • Unsolicited Applications • Job fairs • TV Shows External sources: These may include
  • 36. Recruitment • In India, public employment agencies are governed by Compulsory Notification Act 1959 and the online registration is available for the desired unemployed youth; • 950 employment exchanges in India with an estimated 47,32,000 candidates registered with them. • Mandatory for both private and public companies as per SC order to inform the District Employment Exchanges about their vacancies, though they can conduct recruitment process themselves. • As per SC order an establishment can be penalized between Rs. 250 to Rs. 10000. • In India, public employment agencies are governed by Compulsory Notification Act 1959 and the online registration is available for the desired unemployed youth; • 950 employment exchanges in India with an estimated 47,32,000 candidates registered with them. • Mandatory for both private and public companies as per SC order to inform the District Employment Exchanges about their vacancies, though they can conduct recruitment process themselves. • As per SC order an establishment can be penalized between Rs. 250 to Rs. 10000. External Sources Employment Exchanges There are two types of employment agencies working for recruiting employees for organizations: public and private agencies.
  • 37. 1996 1997 1998 1999 2000 1 2 3 4 5 6 1. Number of exchanges 914 934 945 955 958 2. Registration (` 000 ) 5872 6322 5852 5966 4732 3. Placement (` 000 ) 233 275 233 221 132 4. Application on Live register (` 000 ) 3743 0 3914 0 40090 4037 1 4146 0 5.Av.No.of employers using E.E. (`000) 0 0 0 0 0 Source: Central Statistical Organization (Statistical Pocket Book, 1999, 2000)
  • 38. Recruitment • The executive search which recruits top officials for the firm are commonly called as head hunters. • Naukri.com is a very popular private agency in India. It has offices in major cities of India and abroad in USA. • Prizedjobs.com an online interactive division of M/S Placements.com Ltd., Bangalore has more than 140000 professional registered with it within and outside India. • The executive search which recruits top officials for the firm are commonly called as head hunters. • Naukri.com is a very popular private agency in India. It has offices in major cities of India and abroad in USA. • Prizedjobs.com an online interactive division of M/S Placements.com Ltd., Bangalore has more than 140000 professional registered with it within and outside India. External sources: Private employment exchange The private employment agencies search out for two categories of employees.
  • 39. RecruitmentRecruitment • They allow organization to get specific projects done; • Expose themselves to talented and potential employees who may become their “recruiters” at school/college; • Provide trial-run employment to determine if they want to hire particular people full time; • Allows both employer and the employee a chance to understand each other before entering into a permanent bond of employment relationship; and • Can supplement the globalization efforts of the organization. External sources: Methods Internships This approach to recruiting is concerned with hiring students as interns usually during the summers. Benefits of Internship External sources: Methods Internships This approach to recruiting is concerned with hiring students as interns usually during the summers. Benefits of Internship
  • 40. RecruitmentRecruitment Benefits to recruiting firm • Flexibility of employment, • Ease of recruitment and replacement, • long-term cost advantages, • Opportunity for focusing on core areas. Demerits • Suffer from employee disloyalty, • Breach of trade secrets, • Lack of employee commitment and the like. External Source Temporary Worker A “temp” is a temporary worker with an organization who is on a third party (staffing company) payroll. The staffing company pays salary and other benefits to the temporary worker. The employing organization in turn pays the staffing company an agreed-upon amount of the services rendered by the temporary worker. The employment of the temp is purely based on the company needs and requirements. External Source Temporary Worker A “temp” is a temporary worker with an organization who is on a third party (staffing company) payroll. The staffing company pays salary and other benefits to the temporary worker. The employing organization in turn pays the staffing company an agreed-upon amount of the services rendered by the temporary worker. The employment of the temp is purely based on the company needs and requirements.
  • 41. 12 mn temporary jobs in India Temporary jobs are fast becoming employers' favourite in cities like Delhi and Mumbai while the gap between salary levels of "Temps" and permanent employees has also narrowed down, a new survey has revealed. The compensation offered to temporary job seekers or Temps has gone up substantially for freshers; with an average growth of 15 per cent across all experience levels. The Temps salary levels are closer to permanent salary levels this year as against last year, the TeamLease Annual Temp Salary Primer 2006 said. Information Technology and IT-enabled services companies are hiring more of temporary workers with both these segments emerging as top verticals for temp job prospects, it said. Temporary jobs can create 12 million jobs in India in the next five years, if requisite amendments are made in the Contract Labour Act, TeamLease said. IT city Bangalore and Delhi are the favourite destinations for temp job seekers, offering higher compensation for all the job functions across all verticals. Human Resources and administration are also emerging as the preferred functions. The percentage of temp jobs in verticals like banking, financial services and insurance, manufacturing and consumer durables has also jumped by over 20 per cent since last year. National capital Delhi is gradually emerging as the hot location for temp job seekers in sales sector, Mumbai for accounts and Bangalore for HR and administration. Like in permanent jobs, level of education influences the compensation as it increases by more than 20 per cent for every increase in the education level except for sales, the survey said. Source: Hindustan Times, (PTI) New Delhi, February 13, 2006
  • 42. Recruitment Campus Recruitment – here the college/university graduates are interviewed by the company representatives and the suitable candidates are selected for the jobs. This is the dominant mode of recruitment nowadays (ET, Nov. 21, 2008) Unsolicited applications – here the prospective employees through letters, e-mails, and telephones or in person contact the employer for the job vacancy. Cyber recruiting or internet recruiting – is the latest way of recruiting the job applicants nowadays where prospective candidates use the company websites for jobs. External Source Campus Recruitment TV Shows Cyber Recruiting Unsolicited Applications
  • 43. Selection • The process of choosing individuals’ who have relevant qualifications to fill jobs in organization • Selecting qualified employees is like putting money in the bank
  • 44. Two HR Truisms • “Good training will not fix for bad selection” • “If you don’t hire the right one, your competitor will” • “Good training will not fix for bad selection” • “If you don’t hire the right one, your competitor will”
  • 45. Selection Process Application Forms Preliminary Interview Employment Tests Reference Checks Medical Examination Figure: Framework of Recruitment & Selection Selected Candidates/Final Decision Recruitment Organizational Goals Job Analysis Sources Applicants Workload Analysis Job Description Manpower Requisition Job Specification Applicants Workload Analysis Job Description Manpower Requisition Job Specification
  • 46. Selection techniques • Structured Application Form • Unstructured Application Form • Weighted Application Form • Structured Application Form • Unstructured Application Form • Weighted Application Form Application Scrutiny Identifies those candidates who fit the job specification and can be called later for the interview
  • 47. Selection Techniques (Cont.) •Types of interview:- •1-Structured or systematic Interview. •*An interview conducted as per the pre- determined plan. •  •2-Unstructured interview •*An interview conducted without any pre- determined plan and questions. •  •3-Stress interview: •Where an applicant is put under pressure for knowing how emotional he is. •  •4-Panel or Board interview •An interview method where two or more people interview a single applicant. •5-Group interview: •An interview method where several applicants are interviewed to gathers. Interview Face-to-face, observational and personal method of evaluating the applicant Interview Face-to-face, observational and personal method of evaluating the applicant
  • 48. Selection Techniques (Cont.) • Reviewing background information • Preparing a question plan • Creating a helpful setting • Conducting the interview • Concluding the interview Procedure for an Interview
  • 49. Selection Techniques (Cont.) 1-Aptitude Tests Measure/ test the person's capacity to learn or perform (future inn consideration( 2-Psychomotor Tests This test measure the person's strength, dexterity and coordination. •3-Ability/Proficiency Tests This test measures how well an applicant can do a given job (present in consideration(. 4-Interest Tests Measures various interests of the applicants 5-Polygraph Tests Here the physiological changes in the bodies of the person are recorded on the machine to see whether the person is lying or not. 6-Graphology Tests Here the personality, emotional problems and honesty is measured through analyzing applicants hand writing. Employment testing
  • 50. Selection Techniques (Cont.) • References are usually obtained from the candidate’s friends or from his previous employer • Contagious diseases can be avoided from spreading if the candidate is tested in advance for them; • The company may also avoid incurring medical bills on employees found medically unfit. Reference Checking Requesting references is a wide spread practice with substantial doubt to its validity Physical/Medical examination Physical examination reveals whether the candidate possesses the required stamina, strength and tolerance of hard working conditions.
  • 51. Battery of Selection Techniques Battery of Selection Techniques • Profile Matching • Multiple Cut-off • Multiple Regression • Multiple Hurdles • Profile Matching • Multiple Cut-off • Multiple Regression • Multiple Hurdles No single selection technique can be believed to measure all the abilities required on any job. Therefore, a battery of selection techniques are used to overcome this problem.
  • 52. Battery of Selection Techniques • Selection is made in any of the following ways: – Individuals whose scores are above the standard score may be selected; – Individuals whose scores show min. deviations from the ideal score may be selected after the deviations are calculated, squared & totalled. The lesser the total the better it is; – Individuals whose scores show max. covaraition with the standard scores may be selected. The r may be calculated between the scores of each individual & the ideal score. The higher the r , the better the match. Profile Matching The ideal profile of a successful worker is obtained by making him to pass through the various selection techniques/criterions The standard so obtained is then used to measure the individual profile of all the new applicants
  • 53. Battery of Selection Techniques • An applicant is bound to score above this point on each technique; • Cut-off points are usually determined by trail & error method; • Individuals who score above all cut-off points are ranked on the basis of their total scores; • Final selection or rejection decision taken at the end. • An applicant is bound to score above this point on each technique; • Cut-off points are usually determined by trail & error method; • Individuals who score above all cut-off points are ranked on the basis of their total scores; • Final selection or rejection decision taken at the end. Multiple Cut-offs A minimum acceptable point is established separately for each technique. This method assumes that for job success, a certain minimum score is needed by an applicant in respect of each technique. Multiple Cut-offs A minimum acceptable point is established separately for each technique. This method assumes that for job success, a certain minimum score is needed by an applicant in respect of each technique.
  • 54. Battery of Selection Techniques x2 makes twice the contribution as the selection technique x1 in predicting job success (y) Suppose Applicant 1 scores x1= 5 & x2= 10 Applicant 2 scores x1= 15 & x2= 5 Multiple Regression The relative contribution of each selection technique in predicting job performance is found out through using the multiple regression model. y= 2x1 + 4x2 (where y stands for predicted job success and x1 & x2 stand for the different selection techniques)
  • 55. Multiple hurdle An applicant must clear all the hurdles to reach the final stage where he is considered for selection Preliminary interview Application scrutiny Tests Interview by personnel dpt. References Physical examination Interview by line manager Multiple hurdle An applicant must clear all the hurdles to reach the final stage where he is considered for selection Preliminary interview Application scrutiny Tests Interview by personnel dpt. References Physical examination Interview by line manager Battery of Selection Techniques • An applicant must score the minimum given score at each stage; • Every stage acts as device for weeding out applicants; • Progressively decreasing the cost of selection • Final selection or rejection decision taken at each stage.
  • 56. Determining the Functional Value of Selection Technique Determining the Functional Value of Selection Technique • Reliability • Validity • Selection ratio • Ability to increase the percentage of satisfactory performance • Reliability • Validity • Selection ratio • Ability to increase the percentage of satisfactory performance Factors determining the functional utility of a selection technique
  • 57. Determining the Functional Value of Selection Technique • The reliability of a test is determined in any of the following ways: – By giving the test to the same group at separate times & correlating the resultant series of test scores; – By giving two or more different (but equivalent) forms of the same test & correlating the resultant test scores; – By split-half or odd-even method. Reliability This means that test should give consistent results in repeated trials as the unreliable test has little merit and therefore may act as an elastic ruler Reliability This means that test should give consistent results in repeated trials as the unreliable test has little merit and therefore may act as an elastic ruler
  • 58. Determining the Functional Value of Selection Technique • Face Validity – Test should look right to the test taker. For example, test designed to measure supervisory skills would lack face validity if it contains items which assess arithmetic knowledge. • Content validity – Test should be fully representative of the relevant domain. For example, if a typist is only tested for typing the numbers, it would lack the content validity. Validity Means that the test should measure what it purports to measure. 4 types of validity measures: Face validity Content validity Construct validity Criterion-related validity Validity Means that the test should measure what it purports to measure. 4 types of validity measures: Face validity Content validity Construct validity Criterion-related validity
  • 59. Determining the Functional Value of Selection Technique Determining the Functional Value of Selection Technique • Construct Validity – By construct validity is meant the appropriateness of the operational definition of the construct (abstract variables like intelligence, aptitude etc., that cannot be directly observed). • Criterion-Related Validity – Is the ability of a test to successfully predict an applicant’s performance on a specific job as measured by a particular index of job success. A test that has been shown to predict successfully an index of job proficiency is said to be a valid test. Validity Means that the test should measure what it purports to measure. Validity Means that the test should measure what it purports to measure.
  • 60. Selection RatioSelection Ratio • Selection device used will have no functional utility, in case the selection ratio is greater than 1; • A manager can afford to raise the standards and select only those who hold high promise, in case the selection ratio is less than 1 It is the ratio of the number of applicants to be selected to the total number of applicants available. Expressed as: SR = n⁄N Where nis the number of jobs to be filled up & N is the number of applicants for those jobs It is the ratio of the number of applicants to be selected to the total number of applicants available. Expressed as: SR = n⁄N Where nis the number of jobs to be filled up & N is the number of applicants for those jobs